Tuesday, June 13, 2017
Big banks give much less than they get.
The FDIC reported in July 2017 that the national average savings account interest rate was just 0.06 percent. In fact, many pay as low as 0.01 percent.
Consumers shouldn't expect these rates to increase significantly anytime soon. Even as the Federal Reserve raises interest rates, the benefit to consumers can be slow to catch up. However, there are better choices available. Because of their low operating costs, online-only banks usually have higher annual percentage yields. And many local credit unions offer enticing opportunities for customers who are willing to make the switch from large national banks.
Why do so many people settle for such low yields? First of all, many consumers don’t even know their bank’s interest rate. It’s convenient to park your money in one place, especially if you’ve used the same bank for many years. Other consumers are reluctant to try online-only banks, as they prefer to be able to visit a teller in person. However, with a bit of education and some shopping around, consumers can often double or even triple the interest rates they receive on their savings accounts.Start Saving More
When consumers consider the importance of what they’re saving for -- whether it’s a house, a vacation or a college education -- many find that they haven’t put enough effort into maximizing their yields. A little bit of research can result in thousands more dollars saved. As consumers become more educated, many are beginning to demand more from their banks.
Using a proprietary interest rate table with the most up-to-date information available, Bankrate helps consumers maximize their money. By accessing real-time comparisons of available interest rates, Bankrate helps customers make the smartest financial choices.
From over 4,800 banks and credit unions.See 10x Savings Rates