Navigating the complex world of banking rates can often seem daunting, especially when presented with many options. Whether you’re just starting your financial journey or a seasoned pro looking to maximize your returns, understanding how to compare banking rates is essential. This guide is here to simplify the process, ensuring you make informed decisions that suit your personal finance goals.
First, compare banks across the United States, including high-yield savings accounts, CD rates, money market accounts, and annuity rates. Second learn the difference between a bank, a credit union, and an insurance company. Finally, pick out the best interest-earning bank account to grow your money!
This guide is ideal for:
- Conservative investors are seeking the best Certificate of Deposit (CD) today.
- Retirees want the highest CD rates for a fixed income.
- Savers are seeking the best high-yield savings account or money market account.
- Investors want to compare certificates of deposit and fixed annuities to find the highest fixed interest rate.
Investors will be able to sort by:
- Annual Percentage Yield (APY) to find the best rate.
- Financial Institutions, Credit Unions, and Online Banks
- Term of the CD accounts (Short-term and long-term)
- Use our annuity calculator to solve your rate of return.
- Why Compare Banking Rates?
- The Best CD Rates At Banks and Credit Unions
- The Best High Yield Savings Account Rates At Banks and Credit Unions
- The Best Money Market Rates At Banks and Credit Unions
- The Best Interest Rates For Retirees
- Popular Bank CD Rates Searches
- Best Bank CD Rates By State
- How Do Banking Rates Work?
- Who Offers the Best Rates?
- What Products Should You Consider?
- Pros And Cons of Comparing Banking Rates
- What Are The Most Popular Credit Unions Today?
- What Are The Most Popular Online Banks Today?
- What Are The Best Local Banks?
- What Are The Best National Banks?
- Who offers the best online savings account?
- Who Offers The Best Money Market Rates?
- Who offers the best CD rates?
- How often do bank interest rates change?
- Which Credit Unions Offer The Best Interest Rates?
- Who Are The Biggest Banks In America?
- What Are The Best Savings Accounts For Kids?
- Next Steps
- Frequently Asked Questions About Banking
- Earn The Highest Interest Rates On Savings Today
- Request A Quote
Why Compare Banking Rates?
It’s not just about stashing your money; it’s about growing it. The difference of even a fraction of a percentage can significantly impact your earnings over time.
Example: Let’s assume you have a $10,000 deposit. A difference of just 1% in interest rates means an extra $100 earned in a year. Over a decade, that’s an extra $1,000!
Earn The Highest Interest Rates On Savings Today
Fixed annuities are almost identical to Certificates of Deposit (CDs) accounts and provide higher interest rates and penalty-free withdrawals for income.
| Term | Insurance Company | APY |
|---|---|---|
| N/A | Money Market Account – Optimum Bank | 5.26% |
| N/A | Money Market Account – FVC Bank | 5.26% |
| N/A | Savings Account – CloudBank 24/7 | 5.26% |
| 12 Months | Bread Savings CD | 5.60% |
| 48 Months | Clear Spring Fixed Annuity | 5.15% |
| 5 Years | Athene Fixed Annuity | 5.30% |
| 10 Years | Equitrust Fixed Annuity | 6.00% |
Disclaimer: This is a review. The Annuity Expert is not associated with a bank or credit union. However, fixed annuities are sold at most financial institutions. We aim to help you find the highest interest rates for your retirement savings. We may receive a small referral fee if you purchase something using a link in this guide.
The Best CD Rates At Banks and Credit Unions
The table below compares the best CD rates banks and credit unions currently offer. As you can see, federally insured credit unions generally offer higher rates than banks. However, there are a few exceptions, so it’s still important to compare annual percentage yields (APY) before deciding where to invest your money.
The Best High Yield Savings Account Rates At Banks and Credit Unions
The table below shows the best high-yield savings account rates currently offered by banks and credit unions.
The Best Money Market Rates At Banks and Credit Unions
The following table compares banks’ and credit unions’ best money market account rates.
The Best Interest Rates For Retirees
As any retiree knows, finding the best interest rates is essential for making your money last. With so many options available, it can be difficult to know where to turn. Thankfully, the following table compares the best interest rates for retirees at banks and credit unions.
Popular Bank CD Rates Searches
- Wells Fargo CD Rates
- Ally Bank CD Rates
- Capital One CD Rates
- Synchrony Bank CD Rates
- Discover CD Rates
- Marcus CD Rates
- Citibank CD Rates
- Bank of America CD Rates
- TD Bank CD Rates
- Regions Bank CD Rates
- Fifth Third CD Rates
- BB&T CD Rates
- Keybank CD Rates
- USAA CD Rates
- State Farm Bank CD Rates
- BMO Harris CD Rates
- Chase Bank CD Rates
- Edward Jones CD Rates
- Barclays CD Rates
Best Bank CD Rates By State
How Do Banking Rates Work?
Banks and credit unions offer varying rates for different financial products. These rates are influenced by factors like the federal funds rate set by the Federal Reserve Bank and historical data of the institution’s local market area.
- Federal Reserve Influence: The Federal Reserve sets the federal funds rate, which impacts interest rates at the consumer level. When the federal funds rate increases, you’ll typically see higher interest rates on savings and deposits.
- FDIC and its Role: The Federal Deposit Insurance Corporation (FDIC) ensures the stability of banks. FDIC national rate caps and interest rate restrictions ensure that banks remain competitive without taking undue risks. If a bank wants to offer rates above the national average, it must seek approval from the appropriate FDIC regional director.
Who Offers the Best Rates?
While many banks and financial institutions offer competitive rates, online banks, and traditional brick-and-mortar banks often differ.
Example: Ally Bank, an online bank, might offer a high-yield savings account rate that significantly exceeds the national savings rate average compared to a local brick-and-mortar bank.
- Online Banks: Online banks like Ally Bank often provide competitive interest rates as they don’t bear the overhead costs of physical locations. These high-yield accounts can be a boon for those seeking better returns.
- Brick and Mortar Banks: Traditional banks may offer lower rates on average but can provide personalized service and relationship rates linked to checking accounts or higher balances.
- Credit Unions: Member-owned institutions sometimes offer better rates than banks. However, you might need to meet specific criteria to become a member of a credit union accepting deposits.
What Products Should You Consider?
Not all deposit products are created equal. Your choice should align with your financial goals and liquidity needs.
Example: Money market accounts might offer better rates than traditional savings accounts but might have higher minimum balance requirements.
- Savings Accounts: These are the most common deposit products. The national average savings rate can be a good benchmark for comparison.
- Money Market Accounts: These accounts often offer higher interest rates than traditional savings but require more money as a minimum deposit.
- Checking Accounts: While not typically known for high returns, some checking accounts offer competitive rates, especially for higher balances.
Pros And Cons of Comparing Banking Rates
Pros:
- Maximized Returns: Ensure you get the best return for your deposits.
- Informed Decisions: Knowledge of prevailing market rates allows for better financial planning.
- Flexibility: By comparing, you can choose accounts that align with your liquidity and financial goals.
Cons:
- Time-Consuming: It requires time to research and compare various products.
- Potential Fees: Higher rates might come with hidden fees or conditions.
- Overwhelm: With so many products and rates, the choice can be overwhelming.
What Are The Most Popular Credit Unions Today?
Today’s most popular credit unions are Navy Federal Credit Union, USAA, and PenFed Credit Union. These credit unions offer a variety of products and services, including checking and savings accounts, loans, and credit cards. They also have branches in most states across the country.
What Are The Most Popular Online Banks Today?
Today’s popular online banks are Ally Bank, Discover Bank, and Capital One 360. These banks offer a variety of products and services, including checking and savings accounts, loans, and credit cards. They also have branches in most states across the country.
What Are The Best Local Banks?
The best local banks will vary depending on your needs and the products and services you are looking for. However, some of the best local banks include BB&T, PNC, and TD Bank. These banks offer a variety of products and services, including checking and savings accounts, loans, and credit cards. They also have branches in most states across the country.
What Are The Best National Banks?
The best national banks will vary depending on your needs and the products and services you are looking for. However, some of the best national banks include Chase, Bank of America, and Wells Fargo. These banks offer a variety of products and services, including checking and savings accounts, loans, and credit cards. They also have branches in most states across the country.
Who offers the best online savings account?
CIT Bank offers the best online savings account with an annual percentage yield (APY) of 0.85%. This rate is subject to change at any time. Ally Bank and Discover Bank are also popular online banks that offer high interest rates on their savings accounts.
Who Offers The Best Money Market Rates?
The best money market rates will vary depending on the bank and the current market conditions. However, some of the most popular banks that offer high interest rates on their money market accounts include Ally Bank, Discover Bank, and Capital One 360.
Who offers the best CD rates?
The best CD rates will vary depending on the bank and the current market conditions. However, some of the most popular banks that offer high interest rates on their online CDs include Ally Bank, Discover Bank, and Capital One 360.
How often do bank interest rates change?
Bank interest rates can change at any time. However, they typically do not change very often. If you are concerned about interest rate changes, you may consider opening a fixed-rate account.
Which Credit Unions Offer The Best Interest Rates?
The best credit union interest rates will vary depending on the credit union and the current market conditions. However, some of the most popular credit unions that offer high interest rates on their products include Navy Federal Credit Union, USAA, and PenFed Credit Union.
Who Are The Biggest Banks In America?
The three biggest banks in America are JPMorgan Chase, Bank of America, and Wells Fargo. These banks offer a variety of products and services, including checking and savings accounts, loans, and credit cards. They also have branches in most states across the country.
What Are The Best Savings Accounts For Kids?
One of the best savings accounts for kids is the Capital One Kids Savings Account. This account offers a variety of features, including no minimum balance, no monthly fees, and a high interest rate. Another popular option for kids is the Discover Cashback Debit Account. This account also offers a variety of features, including no minimum balance and no monthly fees. Finally, the Ally Bank Interest Checking Account is an excellent option for kids interested in earning interest on their deposits.
The best college savings plan is with Gerber Life Insurance. Their plans offer a variety of features, including no monthly fees, high interest rates, and flexible terms. Gerberlife.com is an excellent resource for more information on these two college savings plans.
Next Steps
Comparing banking rates isn’t just a financial exercise—it’s a step towards optimizing your wealth and future. While it may require some effort and understanding, the potential rewards of higher interest earnings are undeniable. Whether you’re considering online banks, brick-and-mortar institutions, or credit unions, the key is to stay informed, understand your needs, and prioritize your financial goals.
With this guide, you’re better equipped to navigate the banking landscape confidently. Your money deserves to work as hard as you do. By understanding and comparing banking rates, you ensure it does just that.
Request A Quote
Get help from a licensed financial professional. This service is free of charge.
Frequently Asked Questions About Banking
Where can I put my money to earn the most interest?
Fixed annuities will give you a higher interest rate than certificates of deposit, money market accounts, and high-yield savings accounts.
How Do I Transfer Money From One Bank To Another?
Transferring money from one bank to another is called a wire transfer. To do a wire transfer, you must provide the receiving bank’s routing and account numbers. You can typically wire transfer online or by visiting your local branch.
What Is A Routing Number?
A routing number is a nine-digit number used to identify a financial institution. The routing number can be found at the bottom of a check.
What Is An Account Number?
An account number is a unique identifier for your bank account. The account number can be found at the bottom of the check.
How Do I Open A Bank Account?
Opening a bank account will vary depending on your chosen bank. However, most banks will require you to provide personal information, such as your name, address, and proof of ID. You may also be required to make an initial deposit into your account.
How Do I Close A Bank Account?
The process of closing a bank account will vary depending on the bank that you choose. However, most banks will require that you provide written notice of your intent to close the account. You may also be required to withdraw all funds from your account and close any outstanding debts.
What Is A Bank Statement?
A bank statement shows all the activity in your account for a given period. For example, the statement will show deposits, withdrawals, and any fees or interest charged to your account.
How Do I Get A Bank Statement?
You can typically get a bank statement by logging into your online banking account or visiting your local branch.
What Is Online Banking?
Online banking is a system that allows you to access your bank account and conduct transactions online. For example, online banking can view your account balance, transfer money between accounts, and pay bills.
How Do I Use Online Banking?
The online banking process will vary depending on the bank you choose. However, most banks require you to create an online account and log in with a username and password. Once logged in, you can view your account balance and conduct transactions.
Is Online Banking Safe?
Online banking is generally safe. However, you should take precautions to protect your account information, such as using a strong password and not sharing your login information with others. Additionally, you should only log into your account from a secure computer and network.
What Are The Benefits Of Online Banking?
The benefits of online banking include the ability to view your account balance, transfer money between accounts, and pay bills. Additionally, online banking is typically more convenient than visiting a branch.
What Do I Need To Open A Bank Account?
The requirements for opening a bank account will vary depending on your chosen bank. However, most banks will require you to provide personal information, such as your name, address, and proof of ID. You may also be required to make an initial deposit into your account.
Which Bank Account Is The Most Liquid?
The most liquid bank account is typically a checking account. This is because you can easily access the funds in your account, and there are no penalties for withdrawing money from your account.
How Do I Join A Credit Union?
Joining a credit union will vary depending on your chosen credit union. However, most credit unions will require you to provide personal information, such as your name, address, and proof of ID. You may also be required to make an initial deposit into your account.
What Are Early Withdrawal Penalties?
A CD early withdrawal penalty is a fee you may charge if you withdraw money from your account before a specific date. The penalty will vary depending on the bank and the type of account. Consider no-penalty CDs if you want to avoid an early withdrawal penalty.
What Is A Minimum Balance?
A minimum balance is the lowest amount of money you can have in your account without being charged a fee. The minimum balance will vary depending on the bank and the type of account.
What Is A Monthly Service Fee?
A monthly service fee is a fee that you may be charged for maintaining your account. The monthly service fee will vary depending on the bank and the type of account.
What Is An Overdraft Fee?
You may be charged an overdraft if you spend more money than you have in your account. The overdraft fee will vary depending on the bank and the type of account.
What Is A Wire Transfer Fee?
A wire transfer fee is a fee that you may be charged for transferring money between banks. The wire transfer fee will vary depending on the bank and the type of account.
Disclaimer: I may receive a small referral fee if you purchase something using a link in this guide.