Savings Account Rates
The average savings account interest rate today is 0.06 percent, according to the FDIC. If you do your research you should be able to find a better rate. Online savings accounts typically offer higher rates because these banks don’t have to pay overhead like brick-and-mortar banks — and they pass savings on to customers. For more information on Savings Accounts, click here.
Whatever savings account you choose, make sure you get the best rate and that it is designed to help you realize your savings goals.
Because credit unions are nonprofit, member-owned cooperatives or non-profit corporations, they typically reinvest funds into member programs, plus they don’t have to pay state and local taxes, which means more money goes to members, too.
Savings accounts come in several different forms, including regular savings, money market, CDs and automatic savings plans. A regular savings account is much like a checking account, only you don’t have check-writing privileges.
You can find savings accounts at almost any financial institution and you can usually apply online, over the phone or in person. Most banks and credit unions also enable customers to link their savings accounts with their checking to make easy transfers or set up automatic transfers.
Money market account are safe, FDIC-insure accounts that typically require a higher minimum opening deposit than regular savings accounts but give you a higher interest rate — along with some check-writing ability. Keep in mind, however, that money market accounts have monthly withdrawal limits. Today’s average money market interest rate is 0.09 percent, according to the FDIC.
Certificates of deposit are savings accounts that pay a higher rate than regular accounts, you must commit to leaving your money in for until it matures — maturity dates typically range anywhere from a month to five years or more — or you’ll likely pay a penalty. To give you an idea of what average CD rates are, a one-month rate is 0.07 percent and a five-year is 0.88 percent, according to the FDIC.