The Best Interest Rates on Savings Accounts
There are a number of ways to earn interest on your savings account. One option is to use an online bank. However, if you do not have a bank account, you may be able to find a savings account online with a higher interest rate. Another option is to use a credit union or non-bank provider.
Online banks
Online banks offer the highest rates on savings accounts, and many charge no monthly fees or maintenance fees. They also typically have low minimum balance requirements. These features, along with the fact that they don’t have physical branches, help make online banks a great choice for those who prefer to keep a low balance. But before you open an account with an online bank, take the time to research the various features and rates.
Savings account rates are tied to the federal funds rate, which is set by the Federal Reserve. However, there is no guarantee that the rate will remain low. The Fed plans to increase the rate throughout 2022. So, it’s important to look for an account with a higher yield than the national average.
Credit unions
There are a number of reasons to choose a credit union over a bank when you’re considering opening a savings account. The rates and fees are often much lower at a credit union. And you’ll be able to take advantage of a number of services that banks do not offer. Many credit unions also offer services such as mobile banking.
One benefit to joining a credit union is their low minimum deposit. Most people can open an account at any bank, but a credit union has different standards. For example, a credit union may be more willing to work with people with lower credit scores. It may also be more flexible to work with borrowers who live in a specific area. Another benefit of joining a credit union is that you don’t have to pay a monthly fee to become a member.
Nonbank providers
If you’re looking for the highest interest rates on savings accounts, it’s possible to find them outside of your local bank. A good way to check is to check the Financial Services Register. This website lists the names and activities of nonbank providers. You can also search for them by company name. If you have trouble finding their name, look for it at the bottom of the firm’s website or in its terms and conditions.
Wells Fargo
Wells Fargo offers two types of savings accounts: standard and premium. The standard account earns a base interest rate of 0.01%, while the Platinum Savings account offers a higher variable relationship rate supplement. The Platinum Savings account can also earn a bonus interest rate of 0.02%. However, these rates fall short of the national average, which stands at 0.06%. Customers who open an account with Wells Fargo should make sure to understand all of their benefits before deciding to open an account with the bank.
Wells Fargo’s savings account comes with several benefits, including a free overdraft protection feature. This feature automatically covers any overages in your checking account, which is a great feature if you have to make frequent transfers. Another great feature of this account is that it can double as a backup account to your Wells Fargo checking account. If you are planning to make regular transfers between your checking account and your savings account, this account is the best choice. The savings rate is lower than other online savings accounts, but you get convenient services like automatic monthly transfers and free overdraft protection.
