If you have your savings dollars in a big bank or a bank with low savings rates, then you are losing money. We've found FDIC insured banks that will pay you more. Take a few minutes to explore the options below and see how you can boost your savings by more than 6X the national average rate. There is competition for your money. Take advantage of it!
Savings Account National Average Rate: 0.12% ?
BestCashCow strives to maintain the most accurate rates. If you find a rate that is not accurate,
please let us know by commenting below so that we can update it. Thank you for your help.
Many, but not all, credit unions listed above are insured by the
National Credit Union Administration (NCUA). By clicking on a credit
union in the table above, you will be taken to an informational page
indicating whether it is NCUA insured. The NCUA insures each named
individual's deposits to $250,000 for all accounts at the credit
union. To avoid exceeding NCUA insurance limits, please review this
brochure from the NCUA.
Credit Union Savings Accounts
Credit union savings accounts or money market accounts that are offered by credit unions. Many Americans enjoy performing their banking transactions with credit unions as
they are technically member-owned and may have branches close by. You will find a map with all credit unions that are close to you
It is important to note that most credit unions do have limited fields of membership – you must be a resident of a certain area or have a family member who was employed by a certain company. To understand the
difference between a bank or credit union, click here.
Credit union savings and money market accounts ordinarily bear all of the same advantages and disadvantages as savings accounts, except insurance is provided by the National
Credit Union Administration instead of the FDIC. Most, but not all, credit unions listed on BestCashCow are NCUA insured. You should confirm that the credit union that you
are working with is NCUA insured by visiting that institution’s BestCashCow page (NCUA coverage is detailed on the overview tab). The NCUA provides coverage in amounts and
terms that are very similar to, although not identical to that provided by the FDIC. BestCashCow strongly recommends that you deposit money only in NCUA insured credit unions
and that you stay within insured limits. If you are considering depositing over $250,000 at a single NCUA-insured credit union across products (share certificates, time
deposits, etc.) or across types of ownership (individual, joint, etc.) you should use the NCUA’s
Share Insurance Toolkit in order to be sure that you are not exceeding coverage limits .
One other difference is that small credit unions often lack robust online banking features. If you are interested in online banking, be sure to ask your credit unions about the
online and mobile services they offer.
To understand all of the income generating options available to a saver, please view the
Income Generating Investments Comparison Chart.
Why do savings rates vary so much?
Even though rates are at levels that are historically very low, there is competition for your money. Like any active marketplace,
there are buyers and sellers of goods and services at different prices.
Online banks offer higher savings and CD rates because they have lower expenses from not having to maintain brick-and-mortar locations,
but you should also check rates at local banks and credit unions using the tabs above.
What is the difference between a savings account and a money market account?
The differences between a savings account and a money market account are largely arcane. Some money market accounts offer more ways
access deposits by issuing checks and debit cards, but prudent consumers will compare the two interchangeably, focusing primarily on
rates and service among FDIC-insured banks (or NCUA-insured, for credit unions). Consumers who maximize their use of online savings and
money market accounts access these accounts through ACH transfers that are easily set up on the online bank’s website so the additional
ways to access deposits that money market accounts offer are rarely valuable.
What does annual percentage yield (APY) mean?
Savings rates are displayed in terms of APY to indicate the effective annual-interest return, including the compounding of interest, of
the course of a single year. $100,000 deposited in a savings or CD account with a 1.20% APY will earn $1,200 in the course of the year,
but monthly interest in the first few months may be less than $100 a month (this also depends on the number of days in the month). Hence,
the APY rate is ordinarily a couple of basis points above the real interest rates. Unlike with a CD, your actual APY in a savings may
vary if the rate changes.
How do I choose the right savings account and should I consider CDs?
Begin your search with the table here on BestCashCow.com that you have found. In addition to checking online savings rates, you should
also check local bank rates and local credit union rates. If you are unlikely to require access to your cash for some time, you may also
consider certificates of deposit (CDs). While CDs have penalties for early withdrawal that may even eat into your principal, the rates
on 2, 3, 4 and 5 year CDs are ordinarily significantly higher than savings rates. Several other sections and articles on BestCashCow
can also help you to identify your proper cash allocation between savings and CDs. Access these below. You should also familiarize
yourself with our Savings Booster Calculator in order to understand the importance of compounding interest at higher rates
on your savings over time.