Now that the Federal Reserve System has started to raise interest rates for the first time in many years, it might be wise to start re-examining the rates your accounts are earning.
While the Fed plans to increase rates gradually, rising interest rates will benefit money in interest-bearing bank accounts, money-market accounts and certificates of deposit, or CDs.
For its Best Banks 2016 analysis, GoBankingRates examined more than 120 financial institutions and identified the best bank, and nine runners-up, across five categories.
The website judged banks based on several factors, such as:
- Annual percentage yield (APY)
- Monthly maintenance fees
- Minimum balance requirements
- BauerFinancial Star Ratings for overall financial strength
For example, Wells Fargo was deemed the best national bank for its “full range of products and the most branches of any bank in the Best National Banks category,” GoBankingRates.com reports.
Ally Bank was deemed the best online bank, for the second consecutive year, “because of its winning combination of no maintenance fee checking, high savings and CD yields, and abundant customer service.”
The No. 1 bank in GoBankingRates’ other three categories are:
- Best checking account: Bank5 Connect’s High-Interest Checking Account
- Best savings account: MySavingsDirect’s MySavings Account
- Best CD accounts: CIT Bank
What do you consider the best bank based on your experiences? We’d love to know, so share your thoughts in our Forums. It’s a place where you can swap questions and answers on money-related matters, life hacks and ingenious ways to save.