When it comes to banking with the largest U.S. banks, you enjoy the convenience of physical branches nationwide. However, if you’re looking to maximize interest on your savings, sticking solely to your big bank means missing out on significant earnings.
The top high-yield savings accounts and best-paying nationwide CDs, offered by smaller banks, online banks, and credit unions, provide the potential to earn much more than what big banks offer. While you may opt to keep your checking account with your current bank, exploring alternatives for your savings can lead to greater returns.
Comparing Savings Account Rates of the Top 5 Banks
Shifting some of your funds from a big bank to high-yield savings accounts can result in significantly higher interest rates. Compared to the meager rates offered by the top five U.S. banks, smaller institutions like Citi offer rates as high as 3.85% APY, while others are paying as low as 0.04% APY.
In contrast, there are numerous opportunities to earn rates in the high 4% range or even reach 5.20% APY with top-ranking savings accounts. Exploring options beyond big banks can lead to much higher savings.
For instance, moving $5,000 to a higher-yield savings account could result in earnings of $260 at a 5.20% APY, compared to as low as $0.50 at a 0.01% APY with a big bank.
Comparing CD Rates of the Top 5 Banks
Certificates of Deposit (CDs) from larger banks may offer reasonable rates for shorter terms, but exploring options from other institutions can lead to significantly higher returns. Smaller players often offer rates above 5.00% APY on various CDs, compared to rates as low as 0.10% APY with big banks.
For example, a 2-year CD with a $10,000 deposit could earn $1,088 at a nationwide leading rate of 5.30% APY, while earning as little as $10 at U.S. Bank’s rate of 0.05% APY.
Moving Your Savings to Another Bank Is Safe and Easy
Concerned about the safety and convenience of transferring funds to another bank? Rest assured, all FDIC banks, including online ones, offer equal protection on deposits. Moving funds between banks is simple with online banking interfaces, and automated transfers can make saving easier.
Plus, holding CDs at another bank is hassle-free, as there are minimal transactions until maturity. Setting up a CD at a different bank involves just a couple of transfers, making the process straightforward and manageable.
Still Only Feel Comfortable with a Bigger Bank?
If you prefer to stick with a larger institution, some of the top 25 largest banks offer competitive rates on savings accounts and CDs, rivaling the returns of smaller players. Exploring options beyond the top five banks can lead to better rates without sacrificing the safety of your funds.
Online-only accounts from large institutions like Marcus by Goldman Sachs, Capital One, and Ally Bank offer competitive rates, ensuring your money grows with minimal effort.
Rate Collection Methodology Disclosure
We track daily rate data from over 200 banks and credit unions, ranking the top-paying certificates in various terms. To be listed, institutions must be federally insured, and minimum deposits should not exceed $25,000. Despite the online nature of many banks, all institutions offer FDIC or NCUA insurance for your peace of mind.
With thorough analysis and comparison, you can make informed decisions about where to grow your savings and maximize your earnings. Explore beyond the big banks to discover better rates with minimal hassle.
