As the U.S. Federal Reserve projects interest rate hikes to bring the prime rate up to 2.25% or even 2.50% by the end of this year, it could pay to revisit your savings account and see if your money could be earning more, experts say.
By Dawn Allcot
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Martin Lewis, a money saving expert in Britain, told The Independent, “If you’ve not switched savings account in the last couple of years, you’re likely earning just 0.10% or less. Do check now.”
The same advice holds true for Americans in light of recent interest rate hikes by the Fed. That doesn’t mean your money will necessarily earn the prime rate of 0.25%, but you could be earning that or more.
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GoBankingRates recently shared the best high-yield savings accounts, and most of the highest rates can be found with online banks.
Top picks included:
Bread Savings: APY, no monthly fees, $100 minimum deposit to open
Quontic Bank: APY, no monthly fees, $100 minimum deposit to open
Sallie Mae Bank SmartyPig Account: APY on balances up to $10,000, no monthly fees, no minimum balance
Monifi Save: APY, no monthly fees, no minimum balance
TAB Bank: APY, no monthly fees, no minimum opening balance
When you’re shopping around for a savings account, make sure to check for monthly fees, which can eat into your interest earnings, minimum balance requirements, and savings caps to earn the highest interest rates.
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All these factors, combined with the interest rate, can influence your decision as you choose the best savings account for your short-term and long-term financial goals.
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