Only a few years ago, Internet savings accounts that paid 3.5% were a mouse click away. Now, you’re lucky if you can earn more than 1% on your savings -- unless you tie up your funds for five years. Online banks’ low overhead (they have no branches, after all) used to work to your advantage, but it no longer seems to matter. So you need to do your homework now more than ever to find the best parking place for your funds.
Start by checking out rates for both savings and money market deposit accounts (they are almost equal now) at www.bankrate.com or www.mybanktracker.com. Then go to www.checkingfinder.com to see what community banks and credit unions are offering (see The Credit Union Advantage). You may earn as much as 4% in a high-yield checking account if you agree to bank online and use your debit card ten to 12 times a month. (For help comparing your options, see How to Find a Local Bank.)
Some high-yielding accounts are available only to local customers. For example, Westfield Bank’s Dream Big Savings pays 1% and requires just $100 to open an account, but only Ohio residents are eligible. Amalgamated Bank, with branches in California, Nevada, New Jersey, New York and Washington, D.C., is offering a 1% yield on its Hardworking Money Market account to branch customers. OneWest Bank, in Southern California, restricts its tiered Personal Savings and Premium Money Market accounts, which pay up to 1% and 1.1%, respectively, to local residents. Branch customers in the Mid Atlantic region who deposit $10,000 in Capital One’s Simple Savings account earn the same 1.15% that the bank offers online.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
-
I'm a Government Employee and Need to Get By Until the Shutdown Ends. What Can I Do?The second-longest shutdown in history is leaving many federal workers with bills due and no paycheck to cover them. Here's what you can do to get by.
-
Grant Cardone Tells Us the Biggest Retirement Mistake You Can MakeThe entrepreneur, real estate investor and motivational speaker tells us why people should never stop working.
-
Amazon Resale: Where Amazon Prime Returns Become Your Online BargainsFeature Amazon Resale products may have some imperfections, but that often leads to wildly discounted prices.
-
Roth IRA Contribution Limits for 2025Roth IRAs Roth IRAs allow you to fund your retirement with after-tax dollars while you're working, and then withdraw those contributions and earnings tax-free when you retire. Here's a look at 2025 limits and income-based phaseouts.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How Much Life Insurance Do You Need?insurance When assessing how much life insurance you need, take a systematic approach instead of relying on rules of thumb.
-
When Does Amazon Prime Day End in October? Everything We Know, Plus the Best Deals on Samsonite, Samsung and MoreAmazon Prime The Amazon Prime Big Deal Days sale ends soon. Here are the key details you need to know, plus some of our favorite deals members can shop before it's over.
-
How to Shop for Life Insurance in 3 Easy Stepsinsurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
-
Five Ways to Shop for a Low Mortgage RateBecoming a Homeowner Mortgage rates are high this year, but you can still find an affordable loan with these tips.
