The Federal Reserve may have paused rate hikes this week, but it's still not an ideal time to borrow money. After all, the Fed has raised rates 11 times over the last 18 months, so rates on everything from mortgages to credit cards are now exponentially higher than they were just a couple of years ago. That makes it a lot more expensive to take out a loan for just about anything.
But it's not all bad news on the interest rate front. While borrowers may be stretched thin by higher interest charges, savers have the opportunity to rake in big returns on their money. That's because, as the Fed increased rates, many banks and financial institutions followed suit, hiking the rates onhigh-yield savings accounts and certificates of deposit (CDs). So, if you've got some money stashed away in a regular savings account, it may be time for a change.
In fact, it's easy to find CDs and high-yield savings accounts offering returns that are nineto 10 times higher than what you can earn with regular savings accounts, which currently have an average rate of just 0.46%. But in some cases, you could earn even more than that — you just need to know where to look to find the savings accounts with the highest rates.
Highest interest rate savings accounts to open now
If you're looking for savings accounts offering the highest interest rates currently, here are some of your top options:
High-yield savings accounts
Popular Direct – 5.40% APY: $100 minimum deposit requirement to open the account; no monthly maintenance fees; $25 fee if the account is closed within 6 months
BrioDirect – 5.35% APY: $5,000 minimum deposit requirement to open the account; $25 minimum account balance to earn the advertised APY; no monthly maintenance fees
BluPeak Credit Union – 5.33% APY: $25 minimum deposit requirement to open the account; no minimum balance requirement to earn dividends; $5 per month maintenance fee if the account balance is below $200
Ivy Bank – 5.30% APY: $2,500 minimum deposit requirement to open the account; $2,500 minimum balance requirement to earn rate and APY; no monthly maintenance fees
Vio Bank – 5.28% APY: $100 minimum opening deposit requirement; no minimum balance requirement; $5 monthly fee for paper statements
TAB Bank – 5.27% APY: $0 minimum opening deposit requirement; $0.01 minimum balance requirement to earn advertised APY; no monthly maintenance fees
TotalDirectBank – 5.26% APY: $25,000 minimum opening deposit via ACH is required; $2,500 minimum balance requirement to earn APY; no monthly maintenance fees
Milli – 5.25% APY: $0 minimum opening deposit requirement; $0 minimum balance requirement, no monthly maintenance fees
Newtek Bank – 5.25% APY: $0 minimum opening deposit requirement; $0 minimum balance requirement, no monthly maintenance fees
UFB Direct – 5.25% APY: $0 minimum opening deposit requirement; $0 minimum balance requirement, no monthly maintenance fees
Find out how today's top savings rates could benefit you here.
Certificate of deposit accounts
Popular Direct: 5.67% APY on 1-year CDs; 5.00% APY on 3-year CDs; 4.65% APY on 5-year CDs; $10,000 minimum deposit requirement
LendingClub: 5.65% APY on 1-year CDs; 4.30% APY on 3-year CDs; 4.00% APY on 5-year CDs; $2,500 minimum deposit requirement
Bread Savings: 5.60% APY on 1-year CDs; 4.95% APY on 3-year CDs; 4.75% APY on 5-year CDs; $1,500 minimum deposit requirement
BMO Alto: 5.50% APY on 1-year CDs; 4.50% APY on 3-year CDs; 4.50% APY on 5-year CDs; no minimum deposit requirement
Barclays: 5.50% APY on 1-year CDs; 4.50% APY on 3-year CDs; 4.50% APY on 5-year CDs; no minimum deposit requirement
Quontic Bank: 5.30% APY on 1-year CDs; 4.40% APY on 3-year CDs; 4.30% APY on 5-year CDs; $500 minimum opening deposit requirement
TAB Bank: 5.27% APY on 1-year CDs; 4.25% APY on 3-year CDs; 4.00% APY on 5-year CDs; $1,000 minimum deposit requirement
Alliant Credit Union: 5.25% APY on 1-year CDs; 4.45% APY on 3-year CDs; 4.35% APY on 5-year CDs; $1,000 minimum deposit requirement
Pentagon Federal Credit Union: 5.25% APY on 1-year CDs; 4.30% APY on 3-year CDs; 4.00% APY on 5-year CDs; $1,000 minimum deposit requirement
Marcus by Goldman Sachs: 5.20% APY on 1-year CDs; 4.40% APY on 3-year CDs; 4.10% APY on 5-year CDs; $500 minimum deposit requirement
The bottom line
If you're leaving your savings in a regular account, you're leaving money on the table. This is a great time for savers to maximize their interest returns by moving their money to one of the top high-yield savings or CD accounts. And, there are lots to choose from, so there's bound to be a good fit for nearly every type of saver. Just be sure to do your homework and weigh all the options before opening any type of account to make sure it aligns with your financial plan and savings goal.
Angelica Leicht
Angelica Leicht is senior editor for CBS' Moneywatch: Managing Your Money, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.
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As of May 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.
What is the safest place to put money to earn interest? The safest place to put money is in an interest-earning bank account at an FDIC-insured bank or an NCUA-insured credit union. There's no risk of losing your money. You'll find the best interest rates at online banks.
AU Small Finance Bank, Equitas Small Finance Bank and Suryoday Small Finance Bank are offering interest up to 7 percent on savings accounts. The average monthly balance requirement is Rs 2,000 to Rs 5,000, Rs 2,500 to Rs 10,000 and Rs 2,000 respectively.
You can earn 5% or more with several savings accounts, including the Milli Savings Account, Betterment Cash Reserve, Newtek Bank High Yield Savings Account, and more. You can also earn above 5% with several accounts through Raisin, an online savings marketplace that sets you up with high rates from partner banks.
Digital Federal Credit Union has an account that pays over 6% APY, but you must meet membership requirements to get started. You also won't earn this high interest rate on your entire Digital FCU savings balance. Plenty of savings accounts are available around the U.S. and still offer great rates — over 5% APY.
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