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.
Local Savings Rates
Savings accounts offer depositors flexibility along with the stability of FDIC insurance (when deposit amounts are within FDIC limits). Savings accounts
are a good place for money that is needed in the next 6-18 months and that the depositor wants to keep safe. Individuals often use savings accounts for a
home downpayment, a vacation, a wedding, a car, an emergency fund, or other near-term expenditures.
While online savings account have grown in popularity over the past ten years, some consumers prefer opening an account in a branch and having a personal
relationship with the people who safeguard their money. Physical branches also provide an easy way to get cash instantly, to deposit checks and access to
notaries and coffee and donuts.
You will find a map with all banks that are close to you here.
· Higher interest rate than a checking account, usually.
· Personal service and interaction. Unlike an online account you are building a relationship with your banker by opening it in a branch.
· Online access. Often, depending on the size of the bank, good online banking functionality.
· Liquidity. Depositors can withdraw their money at any time.
· A variable interest rate. Rates can change at any time. In a falling rate environment, this is a negative. In a rising rate environment, this is a
· A lower rate than an online bank. Branches are expensive and non-online banks often can't afford to pay as much interest as an online bank.
BestCashCow strongly recommends that when depositing money, you stay within FDIC insured limits. If you are considering depositing over $250,000 at a
single bank across products (share certificates, time deposits, etc.) or across types of ownership (individual, joint, etc.) you should visit the FDIC's website to determine your coverage limits based on your circumstances.
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.