We all know how important it is to have money, if for no other reason than to have an emergency fund. But HOW should we save? Where should we put the money? These days, many online banks make it worthwhile to open up a savings or money market account. Even if you go with a basic savings account, you’ll still get a decent APY% and the peace of mind that your money is in a secure place. It’s a good idea to compare savings interest rates before deciding on a bank.
The annual percentage yield is something that anybody who wants to create and maintain a savings account should keep an eye on. Any financial institution that offers any savings/CD/money market account product must disclose the APY. With the APY, people can make educated comparisons and informed decisions. APY refers to the interest rate you will accumulate over a year of savings when regarding compound interest. With some accounts, it may compound daily and with some monthly. It all depends on the bank.
Read the APY terms carefully. However, other information such as fees, minimum account balance requirements, the different tiers available, whether the FDIC backs the bank, security protocols, etc. Don’t just compare savings interest rates alone – keep all of these details in mind as well.
Compare Savings Interest Rates and Customer Support
What about customer support? How easy is it to get help whenever you need it, or receive answers to your questions and concerns? Does the online bank offer some tech support 24/7?
Once again, online banks do offer far better terms and higher APY%s than traditional banks. When one wants to compare savings interest rates, it’s a good idea to stick with those that offer at least a 0.75 APY.
Here are some of the best options right now:
Live Oak Bank – 0.85%
VIO Bank – 0.83%
PenFed Credit Union 0.80% (Premium Online Account)
Ally Bank – 0.80%
Citizens Access – 0.80%
CIT Bank – 0.80%
These are just the APYs of the online savings accounts themselves. The percentages for a money market account will usually be higher.
Once again, there are other essential factors to consider when comparing your options, such as customer service level and the amount you’ll be required to deposit and maintain. You should be allowed to make a few transactions per month if you need to without paying a fee.
When you compare savings interest rates online, pay extra attention to CIT Bank. It is one of the most highly-rated of the banks.