More Bad News for Savers

Family Finances

More Bad News for Savers

Savers searching for top yields should look to online banks, which offer significantly higher rates than brick-and-mortar institutions.

Illustration by the Project Twins

Interest rates on savings accounts have been falling since the Federal Reserve started lowering the federal funds rate last summer, and they continue to slide in the wake of the Fed’s March rate cuts. Savers searching for top yields should look to online banks, which offer significantly higher rates than brick-and-mortar institutions. At DepositAccounts.com, you can see the best interest rates available in your area based on the type of account you’d like to open and the amount you intend to deposit.

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Among savings accounts, consider the SFGI Direct Savings Account, which recently yielded 1.86%. It’s noteworthy for having a long history of strong rates, says Ken Tumin, of DepositAccounts.com. The savings accounts from Live Oak Bank, yielding 1.75%, and PurePoint Financial, yielding 1.70% on a $10,000 minimum balance, have also had outstanding yields over the past few years. For strategies to invest in certificates of deposit, see Strategies for CD Savers.

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Some high-yield checking accounts offer better rates than savings accounts—but you have to jump through hoops. The Consumers Credit Union (Illinois) Rewards Checking account (pay a $5 fee to the Consumers Cooperative Association to join) yields up to 5.09% on balances of up to $10,000 if you meet certain requirements, such as using your debit card 12 times monthly (purchases must total at least $100) and surpassing spending minimums on one of its credit cards.