The Federal Reserve continues to steadily raise its target federal funds rate, and that has motivated banks to offer rates on savings accounts that were unthinkable not so long ago.
To be sure, the average savings account rate remains a paltry 0.21%. But if you know where to look, you can get a rate of 3.5% or more.
Following are some banks that are leading the way in offering better savings account rates to customers.
Note that bank rates can change fast following Fed rate hikes. Also, our list of rising bank rates is not exhaustive. There might be other banks that also have bumped up the return they are offering on savings accounts.
So, stop by Money Talks News’ Solutions Center to search for a great savings account.
Account name: High Yield Money Market Account
CFG Bank is a Baltimore-based bank founded in 1927. The minimum deposit to open the High Yield Money Market Account is $1,000.
Like all of the banks on this list, CFG Bank is FDIC-insured, meaning the Federal Deposit Insurance Corp. insures your money — usually up to $250,000 — in the event that a bank goes under.
Account name: Bask Interest Savings Account
Current APY: 3.60%
Bask Bank introduced America’s first online-only savings bank in the U.S. through Texas Capital Bank in 1999.
It says there is no minimum balance requirement with the Bask Interest Savings Account.
Merchants Bank of Indiana
Account name: Money Market Account
Current APY: 3.82%
Merchants Bank of Indiana has its headquarters in the city of Carmel, Indiana. To open this Money Market Account, you need to deposit a minimum of $50.
Banks offering 3.5%
Several banks are paying 3.5% on their savings vehicles. They include:
While these rising bank rates are encouraging, they pale next to the return you can get from trusting your money to Uncle Sam’s care. For more, check out “This Savings Bond Now Pays Nearly 7% — Should You Buy?“