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The Federal Reserve has been steadily raising its target federal funds rate, and this has prompted banks to offer rates on savings accounts that were unthinkable not long ago.
To be sure, the average savings account rate is 0.21%. But if you know where to look, you can get a rate of 3.5% or more.
Following are some of the banks that are pioneers in offering better savings account rates to the customers.
Note that bank rates can change rapidly following a Fed rate hike. Furthermore, our list of rising bank rates is not exhaustive. There may be other banks that have increased the returns on savings accounts as well.
So, stop by Money Talks News’ solution center to discover a great savings account.
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Account Name: High Yield Money Market Account
Current Annual Percentage Yield (APY): 3.55%
CFG Bank is a Baltimore-based bank founded in 1927. The minimum deposit amount to open a High Yield Money Market account is $1,000.
Like all the banks on this list, CFG Bank is FDIC-insured, which means that Federal Deposit Insurance Corp. insures your money—usually up to $250,000—in the event a bank goes down.
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Account Name: Basque Interest Savings Account
Current APY: 3.60%
Bass Bank launched America’s first online-only savings bank in the US in 1999 through Texas Capital Bank.
It states that there is no minimum balance requirement with Basque Interest Savings Account.
Merchant Bank of Indiana
Account Name: Money Market Account
Current APY: 3.82%
Merchant Bank of Indiana is headquartered in the city of Carmel, Indiana. To open this money market account, you need to deposit at least $50.
Banks Offering 3.5%
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Many banks are paying 3.5% on their savings vehicles. they include:
While these rising bank rates are encouraging, they are next to the returns you would get from relying on your money to care for Uncle Sam. For more, see “This Savings Bond Now Pays About 7%—Should You Buy?”