Are you disappointed in the current interest rates offered by national banks for conventional savings accounts? The solution may be no further away than your local community bank. Like credit unions, many community banks are concerned with the needs of local customers and they invest in community development. Many community banks also have less restrictive lending practices and are willing to consider other factors such as character and family history before making decisions on loans.
While big banks such as Bank of America are currently offering interest rates as low as a 0.10% APY on regular savings accounts, many community banks are offering interest rates at 2.00 and above. In Pennsylvania, Dollar Bank is offering a 2.00% APY on balances below $20,000 for their FreeMONEY Savings Account if you have a Dollar Bank FreeMONEY Checking or e-Checking account.
Other community bank offers require a little more footwork. For example, the North Middlesex Savings Bank is currently offering a 2.25% APY for their Simply Save account. To earn the maximum interest rate, the account must have at least one $50 deposit posted during the interest cycle, but the deposit must be made in person at a banking branch. If you are a resident of that community, the savings interest rate may be worth a monthly trip to the bank.
The bottom line: never discount local banks while researching interest rates just because the bank doesn’t have a national presence. Some community banks do not allow people to submit applications unless they live in a community area, however, so always check with bank before completing your application.
For the best information on savings and money market account interest rates, click on the "Savings" tab above.
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