Finding the Best Savings Account After the Coronavirus Interest Rate Cuts
Savers searching for top yields should check out our list of the top online banks.
Interest rates on savings accounts have been falling since the Federal Reserve started lowering the federal funds rate last summer. They continue to march downward in the wake of the Fed's March rate cuts (the federal funds rate is now down to zero), which were made in response to the coronavirus crisis. Savers searching for top yields should look to online banks, which offer significantly higher rates than brick-and-mortar institutions. At www.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.
Among savings accounts, consider the SFGI Direct Savings Account (www.sfgidirect.com), 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 (www.liveoakbank.com), yielding 1.75%, and PurePoint Financial (www.purepoint.com), yielding 1.50% on a $10,000 minimum balance, have also had outstanding yields over the past few years.
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 (www.myconsumers.org; 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), having direct deposits of at least $500 and surpassing spending minimums on one of the credit union's credit cards.
Sign up for Kiplinger’s Free E-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.
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
Lisa has been the editor of Kiplinger Personal Finance since June 2023. Previously, she spent more than a decade reporting and writing for the magazine on a variety of topics, including credit, banking and retirement. She has shared her expertise as a guest on the Today Show, CNN, Fox, NPR, Cheddar and many other media outlets around the nation. Lisa graduated from Ball State University and received the school’s “Graduate of the Last Decade” award in 2014. A military spouse, she has moved around the U.S. and currently lives in the Philadelphia area with her husband and two sons.
-
Stock Market Today: Nasdaq Soars Ahead of Tesla Earnings
The EV stock rose nearly 2% ahead of its highly anticipated Q1 earnings report, due after tonight's close.
By Karee Venema Published
-
GM Stock Accelerates After Earnings Beat
General Motors beat expectations for the first quarter and raised its outlook for the year. Here's what you need to know.
By Joey Solitro Published
-
403(b) Contribution Limits for 2024
retirement plans Teachers and nonprofit workers can contribute more to a 403(b) retirement plan in 2024 than they could in 2023.
By Jackie Stewart Published
-
Roth IRA Contribution Limits for 2024
Roth IRAs Roth IRA contribution limits have gone up for 2024. Here's what you need to know.
By Jackie Stewart Published
-
More Signs of Belt-Tightening and a Slowing Economy: The Kiplinger Letter
The Kiplinger Letter Although fewer banks are tightening lending standards, more businesses and households are feeling the squeeze.
By Rodrigo Sermeño Published
-
Four Tips for Renting Out Your Home on Airbnb
real estate Here's what you should know before listing your home on Airbnb.
By Miriam Cross Published
-
Five Ways to a Cheap Last-Minute Vacation
Travel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
By Vaishali Varu Last updated
-
How Much Life Insurance Do You Need?
insurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life-insurance needs.
By Kimberly Lankford Published
-
When Is Amazon Prime Day?
Amazon Prime In 2023 Amazon had two Prime Day events — one in July and another, called Big Deal Days, in October. We expect 2024 to follow the same schedule.
By Bob Niedt Last updated
-
How to Shop for Life Insurance in 3 Easy Steps
insurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
By Kaitlin Pitsker Published