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Online Savings & Money Market Account Rates 2020

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Best Savings Account Rates - Don't Settle for Average

Rate information contained on this page may have changed. Please find latest savings rates.

Average savings account rates continue to fall, with average online savings accounts yielding 0.85% APY and average local savings account rates at 0.23% APY. But there's no reason to settle for average savings rates.

Average savings account rates continue to fall, with average online savings accounts yielding 0.85% APY and average local savings account rates at 0.23% APY. But there's no reason to settle for average savings rates. We looked through our database of over 6,000 banks and 6,000 credit unions to find the best rates across the country.

Best Savings Account Rates

Credit Unions in Georgia took the top three spots on the best of the best rate tables this week.

  1. AFLAC Federal Credit Union of Columbus, GA takes the top spot for its 2.410% APY for deposits up to $100,000. The credit union serves employees and employee families of Aflac Incorporated. The credit union has $167 million in assets. Its Texas Ratio is 15.88%, higher than the national credit union average of 10.30%. The credit union is NCUA insured.
  2. Floyd County Postal Employee Credit Union of Roma, GA is offering a 2.30% APY savings account with a $1 minimum deposit. The credit union serves postal employees of Floyd County and their families. The credit union is very small with $4.9 million in assets. Its Texas Ratio is 10.83% in line with the national average. The credit union is NCUA insured.
  3. Genuine Parts Credit Union of Norcross, GA is offering a 2.02% APY savings account with a minimum deposit of $50. This is another small credit union with only $8 million in assets. The bank has a low Texas Ratio of 1.08%.

There are thousands of credit unions across the country offering excellent rates with low fees across the country. Find savings account rates from credit unions in your local area by clicking on the "Savings" tab above.

But if you don't want to join a credit union, there are many local banks offering rates well above the national average.

  1. Reynolds State Bank in Reynolds, IL is offering a passbook savings account that pays 1.51% APY with a $100 minimum balance. The bank has $90 million in assets and was established in 1888. The bank's financials look excellent, with an extremely low Texas Ratio of 2.51%. The bank is FDIC insured.
  2. People's Bank of Seneca in Seneca, MO is offering a 1.50% APY savings account rate. The bank has $90 million in assets and a low Texas Ratio of 7.75%. The bank was founded in 1996 and is FDIC insured.
  3. The Victory Bank of Limerick, PA has a Fortress Savings Account that pays 1.35% APY with a $2,500 minimum balance. The bank has $100 million in assets and a low Texas Ratio of 4.19%. One factor beyind the low Texas Ratio may be the fact that the bank was founded in 2008 and most of its loans were give after the financial crisis.

Lastly, if you prefer to bank online, there are some very attractive online savings rates that are well above the national averages.

  • CNB Bank Direct is offering the top online savings account rate at 1.05% APY. CNB Bank Direct is a division of The Citizens National Bank of Bluffton. The Citizens National Bank of Bluffton is an FDIC insured institution founded in 1920. It has approximately $0.56 billion in assets and a Texas Ratio of 19.9%.
  • Personal Savings from American Express, the banking division of American Express is offering a 1.00% APY savings account. Personal Savings by American Express is a division of American Express Bank, FSB.. American Express Bank, FSB. is an FDIC insured institution founded in 2000. It has approximately $38.98 billion in assets and a Texas Ratio of 5.93%

Find the best savings account rates from local banks in your area or view all online savings account rates by clicking on the "Savings" tab above.

All of the banks and most of the credit unions on BestCashCow have deposited insured by either the FDIC or the NCUA. That means you can get a higher rate with no additional risk to your money. That's easy money. At a time when bank rates are at record lows, you might as well earn the most that you can.


First Priority Bank Offering 1.5% APY Savings Account Guaranteed Through September

Rate information contained on this page may have changed. Please find latest savings rates.

First Priority Bank if offering a 1.50% APY savings account rate that is guaranteed through September 30, 2011.

First Priority Bank if offering a 1.50% APY electronic savings account rate that is guaranteed through September 30, 2011. That's one of the best savings account rates according to the BestCashCow rate tables. The downside? Only residents of NY, NJ, and PA are eligible to recieve the rate according to the CSR I spoke with. In addition, First Priority is dedicated to concierge service.  That usually means they service higher net worth individuals like a private bank. It's unusual to have such a competitive rate that is also guaranteed for a period of time. After September 30, First Priority can adjust the rate downward.

To get this rate, the account must be opened online and you must also opt-in to receive e-statements. According to the CSR, the account can be funded via an ACH. The minimum balance for this rate is $7,500. You'll earn .50% APY for balances from $50 - $7,499.

The bank holds $280 million in assets and operates five branches in Eastern PA, new the New Jersey border. It's Texas Ratio of 24.7% (see what Texas Ratio means) is slightly higher than the national average and it has a Return on Equity of -3.81 % versus the national average of 7.75%. The bank is FDIC insured.

 


Income Generating Investments - Comparison Chart

The chart below provides a quick comparison of several different asset classes that produce income for investors. It includes assets deemed to be almost totally safe, such as FDIC-insured savings and CD accounts and U.S. Treasury Securities, to assets that introduce more risk, such as dividend stocks.

Updated: {{=date}}

INVESTMENT Advantages Disadvantages Best Current Interest Rate* Risk to Principal Tax Attributes

Savings or money market accounts

Many accounts require only $1; very liquid.

Transaction costs; no guarantee of rate stability if short term rates decline.

Rates as high as 2.20% in nationally available online accounts.

For FDIC insured banks, the standard deposit insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.

Fully taxable in the year of accrual.

Certificates of Deposit

Provides a guarantee of income should short term rates fall. Rates for longer term CDs are higher than savings accounts.

Not liquid for term of CD (without significant penalty).

APY rates may be slightly higher than online savings accounts for terms of 1-year and longer.

Top-yielding online 1-year CDs pay 2.15% APY. Some online 2-year CDs pay a little more.  Local rates at banks and credit unions near you may be higher.

For FDIC insured banks, the standard deposit insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.

Fully taxable in year of accrual.

Federal Credit Union Accounts

May be operated similar to online savings accounts or CDs

Often difficult to find a FCU for which you qualify with the products you want.

Depends on particular FCU but savings rates are ordinarily higher than big banks, but lower than online savings rates.

CD rates, also called "time deposit" rates, are often better are comparable to rates at online banks and local banks.

For NCUA insured credit unions the standard deposit insurance amount is $250,000 per depositor, per insured bank, for each account ownership category.

Fully taxable.

Fully Taxable Money Market Funds

Usually very liquid.

Rates have recovered over the course of 2018 and 2019, but in general are less sturdy than savings rates in rising rate environments and fall more quickly when short-term rates fall.   

Retail funds generally around 1.40%, although Vanguard and Fidelity current have funds yielding over 1.70%. Main value is to ultra high net worth individuals, corporations, and not-for-profits that have asset bases too large to disperse to savings and money market accounts.  Most individuals obtain higher rates in FDIC-insured banks and NCUA-insured credit unions. 

Not insured. Although very rare, principal invested may fall below par ("break the buck").

Fully taxable in the year of accrual.

Tax-Free Municipal Money Market Funds

Usually very liquid; most beneficial to those in the higher federal and state tax brackets.

Even if tax advantages are fully utilized by high earning individuals, the effective return is below fully taxable alternatives.

Approximately 1.20% in yield for funds geared to a 10-year duration. For investors in the highest federal tax bracket (35%) who are residents of high tax states may be equivalent to a fully taxable yield just under 2.00%.

Although very rare, principal invested may fall below par ("break the buck"). The US Treasury has backstopped this through guarantees on occasion (most notably when it guaranteed that the principal deposited in qualifying 2a-7 funds as of September 19, 2008 would be insured for one year).

Fully tax free provided that you are a resident of the appropriate state for the entire year.

US Treasury Securities

Very liquid

May decline in value if interest rates rise

Differs according to duration. Compare Treasury rates.

Currently 1.70% for 10-year Treasury.

 

Not subject to state and local taxes.

Series I Bonds

Relatively high yields; strong protection against inflation even where short term interest rates do not rise

Absolutely not liquid for 1 year; penalty of 3 month interest forfeiture if redeemed in fewer than five years. Maximum purchase is $10,000 per calendar year per individual in electronic format (may also purchase up to $5,000 per year using a Federal tax refund.

2.02% for new bonds through April 30, 2020, reset bi-annually based on CPI-U thereafter.  Not recommended until fixed rate component becomes significantly higher than its current rate of 0.20%.

No risk to principal; backed by US Full Faith and Credit.

Not subject to state and local taxes. Since interest accrues, federal tax is deferred until redemption.

Treasury Inflation Protected Securities

Like all US Treasuries (except I Bonds), very liquid; strong protection against inflation due to link to CPI-U

May lose value if interest rates rise and inflation (as reflected in the CPI-U) does not rise as quickly

Approximately 0.25% on the 10-year TIPS.

 

No risk to principal if held to maturity; backed by US Full Faith and Credit; may trade at values significantly below par before maturity

Not subject to state and local taxes. Interest is fully taxable in the year in which it is paid. Phantom interest is taxable in the year in which the bond's principal appreciates in accordance with changes in CPI-U.

Agency Bonds

Usually very liquid. Benefits are greater for those holding state and local tax exempt agency bonds in highest tax brackets of highest taxing states. Callable agencies may offer a substantial yield premium over other short term securities.

Longer term agency bonds may lose value very quickly if interest rates rise and bonds are not called.

Long-term callable state and local tax-free bonds with 2.00% coupons are trading, but may trade below par value if rates rise before bond is called.

Risk to principal may exist; may trade at values significantly below par before maturity.

Certain agency bonds are not taxable at the state and local level; interest is federally taxable in the year that it is paid.

Municipal Bonds, including Pre-Refunded Municipal Bonds

Yields often exceed after tax yields for taxable bonds and cash equivalents for investors in highest feeral and state tax brackets.

Even the shortest term bonds may lose value if interest rates rise.  Unless tax advantages are fully utilized by high earning investors, these bonds will underperform fully taxable savings accounts and CDs.

Current average 10-year yields on AAA-rated bonds are trading around 1.20%, which is can deliver an after-tax equivalent just over 2.00% for high net worth investors in the highest federal and state tax brackets.

Default risk (risk to principal) exists (mitigated for pre-refunded municipal bonds); may trade at values significantly below par before maturity.

Usually not federally taxable, and usually state tax free to residents of the issuing state.

Dividend Stocks

High quality Dow Dividend Stocks can offer yields between 1-5%.

Stocks price can drop and investors can lose principal.

1-5% yield.

Investor can lose all of their principal.

Tax rate on qualified dividends is 0% to 15%. To be a qualified dividend, investor must "must have held the stock for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date."

This chart may be shared and forwarded to others. It can be posted on other sites as long as the following link is included in the article or post as attribution: Comparison of Savings Accounts CDs, Treasuries, Munis, and Other Safe Investments – BestCashCow.