Just about every bank offers savings accounts that earn interest, but many of them do not give you much. In order to get the most earning power for your money, you will need to do some looking around to see which banks offer better rates on savings accounts.
According to the NY Times, inflation is currently about 1.7 percent per year. This means that most banks are offering less in interest for savings accounts than this value. With these rates, your money is actually losing a little more of its buying power each year. Even CD’s now have an all-time low average of about 0.70 percent.
Search Online Web Sites That Compare Savings Accounts Interest Rates
In order to help you find the best place to put your hard-earned money that you want to keep on earning interest, there are many websites online that will help you find which banks currently have the best interest rates. Unfortunately, those numbers seem to be changing, so you will have to keep an eye on the interest rates that any bank gives you.
Online Bank Sites May Give You the Best Interest Rates
When it comes to giving you better interest rates on savings accounts, an online bank is apt to be able to do better than a traditional bank. This is because an online bank does not have much overhead to cover, so they can afford to pay out more in interest to their customers.
Use Online Websites to Find Best Interest Rates on Savings Accounts
One website that offers you a monthly interest rate monitor is Nerd Wallet.com. This website enables you to compare interest rates between online and physical banks and credit unions, and it lets you compare them by zip code and the amount of your initial investment. It also helps you compare interest rates on other types of accounts, too, including credit cards and checking accounts.
Websites like SavingsAccounts.com lets you look at banks by name and it shows you the interest rate currently being offered. You will also be able to see any specific information you need to know about the account, such as whether or not a minimum amount must be deposited to open the account, and whether or not any fees apply.
A similar website that lets you see higher interest rates on your checking account is CheckingFinder.com, which enables you to search for banks with the highest interest rates on savings accounts by zip code, and then provides all the details. Consumer Reports says that you should be aware of any terms that may apply on this type of account because you will most likely need to make 12 to 15 debit card transactions each month in order to qualify.
Keep an Eye on Interest Rates for Best Results
Finding a bank that offers better interest rates on savings accounts is going to be an ongoing task – at least until the economy improves. Even the big banks are not currently offering interest rates above one percent, but an online bank may do so – if you look around. Even then, interest rates are fluctuating, so you may need to change your bank from time to time to get the best rates.