Saturday, 31 October 2020

The Best Bank Interest Rates in 2019

The Best Bank Interest Rates in 2019
27 Feb
11:49
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Tracking the best bank interest rates over the last few years has been an exciting game, as a continuous stream of Fed rate hikes spurred many banks to raise their rates again and again.

As we look ahead through 2019, the odds of having another year of consistent Fed rate hikes are slim at best. After the Federal Open Market Committee’s (FOMC) January meeting, the FOMC didn’t increase the rate and stressed that it would remain patient when it comes to making any changes. The federal fund rate currently ranges from 2.25% to 2.5%.

As it stands right now, the economy is seeing stable growth and inflation is remaining at an ideal low of 2%. This doesn’t put pressure on the Fed to keep raising rates. Ken Tumin, founder of DepositAccounts.com, another LendingTree-owned site, notes that the best chance we have of seeing a rate increase is if the economy continues to grow and increases inflation. Even then, a rate hike likely won’t happen until the second half of the year.

This means we’re pretty close to a peak in deposit account interest rates, if we’re not already there. For rate shoppers, that means you might want to take advantage of the high rates available now. It’s especially important if you want to boost your long-term savings with a CD. You can lock in a high rate now, potentially before banks adjust to the stagnant federal funds rate and lower their own deposit rates.

To avoid the scramble of finding the best bank interest rates out there before they’re gone, we’ve done the work for you. Below, you’ll find some of the best interest rates for savings, CDs, money market and checking accounts.

The best bank savings rates in 2019

Institution APY Minimum deposit amount
CIT Bank 2.45% $100
Vio Bank 2.41% $100
CIBC Bank USA 2.39% $1,000
USALLIANCE Financial 2.36% $500
Popular Direct 2.36% $5,000

Methodology

To find the best bank interest rates on savings accounts, we started with our roundup of the Best Online Savings Accounts and chose the banks with the highest rates.

CIT Bank — 2.45% APY, $100 minimum deposit

CIT Bank’s Savings Builder account offers the highest savings rate in this round-up. You’ll need to meet one of two requirements to snag this high rate, though. You must either maintain a balance of at least $25,000 in the account or you can make monthly deposits of at least $100. Failure to meet either of those qualifications will result in a lower (but still notable) rate. In any case, you’ll need at least $100 to open the account. Luckily, the account doesn’t charge a monthly maintenance fee.

CIT Bank has been around since 1908 and is headquartered in Pasadena, Calif. You can access your accounts online and on the bank’s mobile app.

Vio Bank — 2.41% APY, $100 minimum deposit

Vio Bank, a new online banking division of MidFirst Bank, offers a great rate on its High Yield Online Savings Account. You’ll need at least $100 to open the account, but all balances earn interest. Plus, there is no monthly fee to own the account, so your savings can grow undisturbed by the bank.

Since you’re limited to six transfers and withdrawals per statement cycle on a savings account, any excess transactions you make will incur a $10 fee from Vio Bank.

CIBC Bank USA— 2.39% APY, $1,000 minimum deposit

CIBC Bank USA maintains that its Agility Savings Account makes it easy to save without a monthly fee. No fee paired with the account’s competitive interest rate will certainly boost your savings. You’ll need at least $1,000 to open the account, but all balances (greater than $0) will earn interest. CIBC Bank USA will charge $10 per transaction when you go over the limit of six transfers or withdrawals per statement cycle.

CIBC Bank USA is backed by Toronto-based CIBC (Canadian Imperial Bank of Commerce). Its U.S. headquarters are in Chicago and has personal banking branches in Illinois, Michigan, Missouri and Wisconsin. You can also access your accounts online and with the CIBC US Mobile Banking app.

USALLIANCE Financial — 2.36% APY, $500 minimum deposit

USALLIANCE Financial Credit Union’s High Dividend Savings account earns at a competitive rate and doesn’t charge a monthly maintenance fee. There is, however, a $5 fee to make withdrawals, so you’ll want to make sure you’re not dipping into your savings too much, if at all. You’ll also need at least $500 in the account to earn interest.

You need to be a member of the credit union to open an account with USALLIANCE Financial. Membership is open to employees of certain companies (like IBM, its first qualifying company), residents of certain neighborhoods in Connecticut, Massachusetts, districts and counties in New Jersey and New York, members of organizations like the New York Historical Society or ASCAP and several colleges, universities, houses of worship and local and state employees of qualifying New York counties.

Popular Direct — 2.36% APY, $5,000 minimum deposit

The Popular Direct Plus Savings Account has one of the highest bank interest rates for a savings account. The account may be out of reach for some customers, however, since it requires at least $5,000 to open. All balances will earn interest, however.

The account does charge a $4 monthly fee that you can waive by maintaining at least $500 in the account at the end of every day. If you go over the six-transaction legal limit for each statement cycle, you’ll face a $5 fee for each transfer or withdrawal you make over the limit.

Popular Direct is backed by Popular Bank, the U.S. banking subsidiary of Popular, Inc. You can access your accounts online and on mobile, both on your browser and with the bank’s mobile app.

The best bank CD rates in 2019

Institution 1-year CD APY Minimum deposit amount
Synchrony Bank 2.80% $2,000
Ally Bank 2.75% $0
Goldman Sachs Bank USA 2.75% $500
Advancial Federal Credit Union 2.74% $1,000
Capital One 2.70% $0

Methodology

To find the best bank interest rates for CDs, we looked through the Best CD Rates to find the highest one year rates.

Synchrony Bank — 2.80% APY, $2,000 minimum deposit

Synchrony Bank offers nine different CD terms. Its most competitive interest rates start with the six-month term and extend to the 60-month account. Its one-year account especially earns at a great APY when compared to the other best CD rates here. You’ll need at least $2,000 to open any Synchrony CD.

It’s important to leave your money untouched in a CD until its maturity date. While you can withdraw interest earned from a Synchrony CD without penalty, that will lessen the total amount of savings you see at maturity. You will have to be careful about not dipping into the account’s principal amount, or the deposit you originally made. This will trigger a penalty. For example, on accounts of 12 months or less, you’ll pay 90 days of simple interest at the current rate.

Synchrony Bank is an online banking division of Synchrony Financial. Your deposits with Synchrony Bank are FDIC-insured.

Ally Bank — 2.75% APY, $0 minimum deposit

Ally Bank continues to rank well not only for its competitive bank interest rates, but also for its low minimum requirements. You can open an Ally High Yield CD with any deposit and earn at a great rate, especially on its 12-month account. Ally offers fewer standard CDs, with only seven terms available. However, it also offers No Penalty and Raise Your Rate CDs for more variety.

Making a withdrawal from an Ally 12-month CD before maturity will result in a penalty of 60 days worth of interest, a lower charge than you’ll find at most banks.

Ally is an online bank with its origins as GM’s financing division back in 1919. You can check on your accounts both on desktop and on mobile, whether through your browser or the bank’s mobile app.

Goldman Sachs Bank USA — 2.75% APY, $500 minimum deposit

The online banking arm of the investment bank, Goldman Sachs Bank USA, or Marcus by Goldman Sachs®, offers some great interest rates on its CDs, namely on its High Yield CDs of 12 months and longer. The 12-year account even earns at a higher rate than some of the bank’s longer terms. Marcus’ short-term accounts, six and nine months long, earn at less competitive rates.

Marcus’ nine High Yield CDs each require at least $500 to open. Since Marcus is entirely online, you can fund the account with an electronic transfer from an external account, a wire transfer or by mailing a check (no cash). If you fund the account within 10 days of opening and the rate has gone up since then, Marcus guarantees you’ll earn at the highest advertised rate they can offer on that term.

If you were to withdraw any amount of the principal from a 12-month Marcus High Yield CD, the bank will assess a penalty of 270 days simple interest on the principal amount according to the rate in effect for the CD.

Advancial Federal Credit Union — 2.74% APY, $1,000 minimum deposit

Advancial offers eight Savings Certificates, ranging from three months to five years. Each certificate earns at a competitive interest rate — even its short-term three-month and six-month accounts earn higher than 2%. You’ll need at least $1,000 to open an Advancial Savings Certificate. However, you can earn at higher rates when you make a larger deposit of either a minimum of $25,000 or a minimum of $50,000.

Advancial is a credit union, which means you need to become a member to open its accounts. If you qualify for its free membership, you’ll need to open a savings account with at least $5 to start. Your eligibility depends on your employment or membership with an Advancial partner organization, if you have a family or household member who is already an Advancial member or is eligible to become one, or whether you live, work, worship or attend school in a qualifying Louisiana parish.

Capital One 360 — 2.70% APY, $0 minimum deposit

If you don’t have hundreds of dollars to fund your CD but still want to take advantage of today’s best CD rates, consider Capital One. You can open a Capital One 360 CD with any deposit amount. There are nine CDs total and the best rates start with the 12-month CD.

If you make an early withdrawal from a 12-month Capital One 360 CD, you’ll trigger a penalty equal to three months of interest. Capital One 360 accounts are managed online, and are still FDIC-insured. You can assign up to 10 Payable on Death individual beneficiaries on a Capital One 360 CD, unless it is a Trust account.

The best money market account rates in 2019

Institution APY Minimum deposit amount
UFB Direct 2.45% $5,000
Earn.bank 2.45% $100
Virtual Bank 2.36% $100
Bay State Savings Bank 2.35% $5,000
Northpointe Bank 2.30% $1,000

Methodology

To find the best bank interest rates on money market accounts, we found the highest rates being offered by the Best Money Market Accounts.

UFB Direct — 2.45% APY, $5,000 minimum deposit

The bank with the best money market account interest rate as of this writing is UFB Direct. The UFB Direct Premium Money Market account will better serve customers with higher balances as it earns the competitive interest rate on balances of $25,000 and over. Any balances less than that will earn at a significantly lower rate.

You’ll need to open the account with at least $5,000 in new funds, which means money not previously held with UFB Direct or any Axos Bank accounts. You’ll want to maintain that balance, too, in order to avoid the $10 monthly fee.

The Premium Money Market account includes free checks and postage-paid envelopes. You can also request a free Visa® Debit Card. Money market accounts are limited to six outgoing transfers per statement cycle just like a savings account, and checks count towards that limit. Any excess transactions will trigger a $10 fee each.

UFB Direct is a division of Axos Bank, which provides FDIC insurance for your UFB Direct deposits. You can access your accounts online and through UFB Direct’s mobile app. You can deposit checks to your account with the app’s Mobile Deposit feature or MyDeposit with your computer and scanner.

earn.bank — 2.45% APY, $100 minimum deposit

earn.bank’s Money Market Account earns at a great rate on all balances. You’ll need at least $100 to open the account and at least $10,000 to waive the $10 monthly fee that goes into effect three months after account opening. The account does not include a debit/ATM card, nor check-writing abilities. You can access your account through online transfers whether on desktop or using the bank’s mobile app. In fact, it helps your savings immensely to manage your Money Market Account entirely online with electronic statements since paper statements cost $25 each.

earn.bank is a division of Silvergate Bank which has been a state-chartered bank in California for 20 years. Silvergate Bank provides the FDIC insurance for your earn.bank deposits.

Virtual Bank — 2.36% APY, $100 minimum deposit

The eMoney Market account from Virtual Bank offers a competitive rate on all balances. The account requires a minimum deposit of $100 in new money not already held with Virtual Bank. Keeping at least $100 in the account will also allow you to waive the $5 monthly fee.

Virtual Bank charges a $15 fee for each transfer or withdrawal that exceeds the six-transaction limit per statement cycle, which is a pretty high fee when compared to its competitors. The account doesn’t include check-writing capabilities, nor can you use an ATM card to withdraw money market funds.

Virtual Bank is a division of IBERIABANK, which was founded in 1887. You can access your Virtual Bank accounts online and on the bank’s mobile app.

Bay State Savings Bank — 2.35% APY, $5,000 minimum deposit

The Smile Worcester County Consumer Money Market account requires an opening deposit of at least $5,000. Keeping this balance in your account will waive the $7 monthly fee. All balances will earn interest at the account’s high rate, though.

This money market account includes check-writing abilities and the ability to make ATM transactions with an ATM or debit card that you can request. You can use your ATM/debit card worldwide through the VISA, NYCE, MoneyPass and Cirrus networks.

Bay State Savings Bank has been based in Massachusetts since 1895, where it houses seven branches. You can access your money market account at a branch, online or through the bank’s mobile app.

Northpointe Bank — 2.30% APY, $1,000 minimum deposit

While you’ll need $1,000 to open the Northpointe Ultimate Money Market account, its high interest rate is reserved for balances between $25,000 and 1 million. Any balances outside of that range will still earn interest, just at much lower rates. Northpointe Bank guarantees its competitive rate for at least 24 months after account opening.

The Ultimate Money Market account can include checks and a debit card. You just need to request one after opening your account. The bank will charge a small fee on checks.

Northpointe Bank was founded in 1999. You can access your accounts online, on the bank’s mobile app, over the phone or at the nearest branch, if you live in one of the 24 states with locations.

The best checking account rates in 2019

Institution APY Minimum deposit amount
Simple 2.02% $2,000
MemoryBank 1.60% $50
Axos Bank Up to 1.25% $0
TIAA Bank 1.21% $5,000
Nbkc bank 1.01% $0

Methodology

To find the best bank interest rates for checking accounts, we chose the best checking accounts with some of the best interest rates.

Simple — 2.02% APY, $2,000 minimum deposit

In 2009, Simple emerged as a response to the fee-heavy, frustrating structure of traditional banking. Its accounts help you bank and budget all in one go, and now the Simple Checking account can help you boost your savings, too, with the highest checking account rate. To earn the competitive rate, you’ll need to open a Savings Goal (along with the Simple Checking) and keep it funded with at least $2,000. If you end up with less than $2,000, your interest rate will plummet to something more comparable to typical brick-and-mortar rates.

The account doesn’t have charge a monthly fee, nor any overdraft fees.

Since Simple is an online bank, you can’t access your accounts at a branch. You do have access to over 40,000 Allpoint ATMs with your Simple Visa Card, issued by Compass Bank, in addition to online and mobile access. While Simple won’t charge you for using an out-of-network ATM, it cannot reimburse you for any ATM surcharges.

MemoryBank — 1.60% APY, $50 minimum deposit

For the next best rate on a checking account, and a lower minimum deposit requirement, check out MemoryBank’s EarnMore Checking account. It requires at least $50 to open, but all balances below $250,000 will earn at the account’s competitive rate.

To access your money, you can use your MemoryBank MasterCard debit card for free at over 92,000 ATMs within the Allpoint, MoneyPass, SUM and Presto networks. Using an ATM outside of these networks may result in an ATM surcharge, but MemoryBank won’t charge a fee. You can also access your accounts electronically online and the bank’s mobile app.

MemoryBank is the all-digital division of Kentucky-based Republic Bank & Trust Company, an FDIC-insured bank.

Axos Bank — Up to 1.25% APY, $0 minimum deposit

The Axos Bank Rewards Checking account requires you to meet certain qualifications to build up to its maximum rate. Setting up your checking account to receive monthly direct deposits totaling $1,000 or more will earn 0.4166% APY. Using your Axos Visa Debit Card for a total of 10 transactions per month (minimum $3 per transaction) will earn another 0.4166% APY (totaling 0.8332% APY).

Then to earn the maximum APY, you must also use your Axos Visa Debit Card five more times, totaling 15 transactions per month (again, a minimum of $3 per transaction). Essentially, as long as you use this account regularly enough, you should be able to snag the competitive rate.

The account does include other helpful perks like unlimited reimbursements for domestic ATM fees, no overdraft or non-sufficient fund fees and no monthly service fee. The ATM fee reimbursements come in handy since you’re allowed to use any ATM nationwide with the Rewards Checking account.

Axos Bank is FDIC-insured and Axos Financial is its holding company. The bank is headquartered in San Diego and has offices elsewhere in California, Las Vegas, Salt Lake City and Kansas City, Kan.

TIAA Bank – 1.21% APY, $5,000 minimum deposit

TIAA Bank offers one of the best bank interest rates on its Yield Pledge Checking account. However, this rate lasts only for an introductory period of one year. After a year, your balance will earn at an interest rate determined by your balance. Higher balances will earn higher rates.

The Yield Pledge Checking account doesn’t charge a monthly fee. You’ll need at least $5,000 to open a new account. Maintaining this balance month to month allows you to receive unlimited reimbursements for fees charged by out-of-network ATMs. Still, even if your balance is less than $5,000, you can receive up to $15 in ATM fee reimbursement. You can avoid ATM surcharges altogether by using Allpoint and Moneypass ATMs.

TIAA Bank is a division of TIAA, FSB which has been around since 1918. In addition to ATM, online and mobile access, you can find TIAA Bank financial centers in Florida.

nbkc — 1.01% APY, $0 minimum deposit

nbkc, or National Bank of Kansas City, brands its Personal Account as an account made to fit the customer and free of what they call “gotchas,” or fees, limits and minimums. The account earns a solid interest rate on all balances. You’ll need at least $5 to open the account.

The Personal Account comes with a free box of checks, a nbkc Debit MasterCard and no overdraft fees. You can use your debit card at over 32,000 MoneyPass ATMs in the U.S. for free. If you ever run into an ATM fee, nbkc will refund you up to $12 each month.

Nbkc has two branches each in Kansas and Missouri. If you can’t visit a branch, you can easily access your accounts online and on the bank’s mobile app.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lauren Perez
Lauren Perez |

Lauren Perez is a writer at MagnifyMoney. You can email Lauren here

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