Historically speaking, financial security has been driven by saving and investing over a long period of time. So, many people want as much interest as possible for their savings. However, most websites, tend to highlight only a few banks or only cover banks which have paid to have their offers promoted.
So, to give you an accurate overview of savings rates, we gathered information about savings products offered by 29 of the major banks in the United States and compared them in a handy table for you. We looked at three products: 12 month certificates of deposit, personal savings accounts and money market savings.
The main idea here is to compare the rate that you are currently getting on your savings with what is available on the market. You can use this information to either negotiate with your current bank or switch banks if your current institution won’t work with you.
The best savings rates for September 2019 are offered by:
- Ally Bank
- Marcus by Goldman Sachs
- Capital One Financial
- TIAA Bank
- Barclays Bank
Consider These Factors When Shopping For the Best Rate
Finally, if you are thinking about changing accounts, here are some considerations:
- Minimum Deposit: The table here doesn’t account for minimums, but many savings accounts require a minimum deposit or a minimum balance before you’re eligible for the highest rate.
- Fees: The best savings accounts don’t charge fees. But, fees matter. With the relatively low level of interest banks are offering, even small charges can wipe out the value of that interest. So, before you open an account, be sure you get a copy of the fee schedule. Your bank should be able to provide this on demand.
- Tiered Rates: In general, if you have more money in the bank you will get a better rate. However, this isn’t always the case, sometimes banks go lower over a certain amount deposited. This is often the case for custodial or other specialized accounts.
- Credit Unions vs. Banks: In general, credit unions offer better terms than traditional brick and mortar banks. The main reason for this is credit unions are typically not for profit and don’t need to return revenue to shareholders. So, they theoretically are able to offer higher interest rates.
Data: Abstracted from bank websites August 15th – August 29th, 2019.
For more great banking articles, read:
How Much Interest Can I earn on $100,000?
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