5 Secrets How To Get Good Savings Accounts Rates
Savings accounts rates are tied to the Federal Reserve Board and set interest rates. When the Federal Reserve Board keeps interest rates low savings accounts suffer. To find better savings rates you may need to look to CD rates, avoid rising bank fees by using your own banks ATM machines, and consider activating prepaid cards. Explore CDs, bump-up CDs, savings bonds, reward bearing checking accounts, online savings accounts and home equity accounts to find the best savings account rates.
1. Long-term CDs used to be high interest rate accounts. However the rate is at 1.64% and if you look on the internet you can find online banking houses that pay 2.36%. There is a good chance that interest rates will raise which will cause CD rates to advance. Do be aware that there are penalties for early withdrawal and these fees may take away any interest you have earned. Bump-up CDs can provide some of the best savings account interest rates. These CDs allow you to increase your rates before the CD matures if interest rates rise. Increase your rate twice during the term of you certificate of deposit. Watch for this type of CD through Wells Fargo, Bank of America and Ally Bank.
2. Savings or I Bonds purchased before October 31 can earn a combined interest rate of 4.6% for six months. After the six month period the interest rate does revert to a lower rate, but you can gain a bit in the interim.
3. You can negotiate for higher savings accounts rates by opening an online savings account. Average rates for these savings accounts are generally five times higher than rates at brick and mortar banks. On a $10,000 balance an online bank will offer .87%. A traditional in bank fixed rate savings account earns 0.15%. Online banks are insured by the FDIC and your savings account rates are safe. You can also link your online checking account to your online savings account and use both for routine ATM withdrawals. Checking account rewards is a type of account that is not exactly savings and does pay 2.56% on set balances. There are also other rigorous requirements and financial institutions require you to use your debit card at least ten times a month and maintain a $5000 balance. This interest rate is higher than typical savings account rates, so it does make a bit of sense.
4. If you meet a certain criteria, you can place your money in high yield savings accounts. To have this type of account you need to make a large initial deposit of $25,000 or more, add to the balance and maintain a high balance over time, limit transactions out of the account and have other holdings at the bank. The savings account rates on higher accounts vary according to the deposit, the bank, and your relationship with the bank.
5. You may also negotiate for higher rates if you open a business savings account and tie it to a business checking account. May banks require only $500 deposited initially but do charge monthly maintenance fees which may offset any interest made. As you develop a business relationship with the bank, add more to your savings and keep your savings as a back up to your checking this will help savings interest rates to rise.