Do you want to maximize the return on your savings account interest rates? Do you want to find out the most rewarding bank when it comes to savings? You will find information to help you maximize your savings here.
How to Maximize Your Savings Account Interest Rates
To make the best out of your savings, you need to first choose the type of savings you want to operate. Three savings account which you can choose from including traditional savings account, money market account, and certificate deposit account. The certificate deposit account has the highest interest rate but does not grant free access to fund till a stipulated period of savings is elapsed. After you have determined the type of savings account, you will then find out the interest rate offered by each bank to help you determine which offers the best rate. Start by researching interest rates for banks in your area:
Bankrate publishes occasional surveys of about 4,800 banks and credit union in the 50 states in the US. It carries out this survey to provide one of the most comprehensive comparisons of interest rates. As at October 2018, the average interest rate for Certificate Deposit (CD) account ranges between 1.85% APY to 3.00% APY per year for different banks. The average interest rate for the money market account ranges between 1.85% APY to 2.25% for banks that offer the highest interest rate. The traditional savings account interest rate has remained low at 0.08% APY, although federal reserve has announced in June 2018 of its plans to keep raising the interest rate due to the strong economy.
Overall, about 24 banks offer high savings account interest rates. Among them include EBSB Direct Savings with the highest rate of 2.50% APY, Customers Bank at 2.25% APY, Northfield Bank at 2.25% APY, and MySavingsDirect at 2.25% APY. Generally, online banking offers high savings than traditional brick and mortar banks. This could be because Online banks do not pay for rent. “Synchrony Bank and Bank of Internet USA offer online savings accounts with some of the highest interest rates — significantly higher rates than the average interest rate and the rates of some of the biggest banks in America.” The savings rate for Online banks ranges between 0.95% APY to 3.00% APY for the Online banks that offer the highest interest rate. Compare rates for money market accounts:
To make more out of your savings, you need to define what you want. To compare different types of savings and their interest rate click here.
List of Banks with the Highest Savings Account Interest Rates
Choosing the bank with the best interest rate is one of the steps to take in order to maximize your savings. This is important because, different banks have different interest attached to a particle savings package. Below is the list of both some traditional brick-and-mortar banks and Online banks that offer the highest interest rate in the US.
Brick-and-Mortar Banks:
- EBSB Direct Savings 2.50% APY
- Customers Bank at 2.25% APY
- Northfield Bank at 2.25% APY
- MySavingsDirect at 2.25% APY
- Utah First Federal Credit Union at 2.25% APY
- PurePoint Financial at 2.15% APY
- Citizens Access at 2.12% APY
- Vio Bank at 2.11% APY
- CIBC Bank USA at 2.10% APY
- Salem Five Direct at 2.05% APY
- Bank 5 Connect at 2.05% APY
- Bank7 at 2.05% APY
- Goldman Sachs Bank USA at 1.90% APY
- American Express National Bank at 1.90% APY
Online Banks:
- Nationwide Bank at 3.00%
- Synchrony Bank at 1.90% APY
- First Internet Bank of Indiana at 1.06%
- Sallie Mae Bank at 1.4%
- Incredible Bank at 0.95%
Do you want to find out more on banks with the highest interest rate, check here.
