Where to Find the Best Savings Rate

Written by S. Arteta and Fact Checked by The Law Dictionary Staff  

Savings rate varies on the bank and type of bank account. Generally, an account which has a higher interest rate has the capacity to grow at a faster pace. Under the federal laws, all accounts are subjected to a six withdrawal per month limit and the deposits are covered by FDIC insurance of up to $250,000 per depositor, per insured bank, for each ownership class.

Most banking websites and other financial related sites offer a detailed comparison of the interest rates that banks, including online banks, offers. At present, the following are the interest rates offered by banks to their depositors:

American Express Bank         0.85% APY

Ally Bank                                      0.84% APY

G.E. Capital Bank                       0.90% APY

Westfield Bank                            1.01% APY

Incredible Bank                          0.91% APY

Barclays Bank                              0.90% APY

Sally Mae Bank                            0.90% APY

EverBank                                       0.86% APY

FNBO Direct                                  0.85% APY

Savings rate vary due to the fact that the type of bank, type of interest bearing account and deposit balance play a huge role in the system. Usually, online banks offer higher interest rates to their depositors since they do not incur huge expenses in maintaining offices and branches in several locations.

The account balance also plays a role in the savings rate since the more your deposit is, the more you will be qualified for a higher interest rate.

There are two common types of interest bearing account which are the savings account and the money market account. Both accounts earn interests. However, money market accounts require higher deposits in order to avoid monthly fees. Because of the higher deposit requirement, a money market account earns more interest than the usual savings account. Money market accounts also offer better access to the deposit by the issuance of paper checks and debit cards. These features are usually not offered with the common savings account.

The savings rates are displayed using the APY or Annual Percentage Yield  which indicates the annual percentage interest taking into consideration the effects of compounding interest.

For depositors to avail of the best interest rate in the market, they should scout for other products that their banks and other banks offer that would better meet their needs. Depositors should also compare the savings rates offered by other banks and calculate which among them shall yield better interest rates to their current deposit. It is likewise advisable to open several accounts in several banks in order to keep your money insured and to avail of the maximum FDIC insurance for the deposits.

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