5 best interest rates on checking across the country

|
5 best interest rates on checking across the country
Image Credit: Dreamstime.com
Team Clark is adamant that we will never write content influenced by or paid for by an advertiser. To support our work, we do make money from some links to companies and deals on our site. Learn more about our guarantee here.
Advertisement

Looking to maximize your rate of interest as a saver? There are a few banks out there that can help you do it!

Read more: Social Security hands out small cost of living adjustment for 2017

Grab these great interests on high yield checking accounts

Throughout the beginning of this decade, rates for savers were looking anemic across the nation. At one point, the national average on a certificate of deposit (CD) was just a little north of a measly 1%!

Rates have only minimally improved since then. But there are a number of smaller banks and credit unions that offer rates above the norm on high yield checking accounts.

Many of the best ones are at community banks and credit unions in your hometown. Look on billboards or signs when you’re driving around. So long as the bank is FDIC insured (or NCUA insured for credit unions), your money is protected up to $250,000.

If you want to cast the net a little wider, DepositAccounts.com has one of the best national clearinghouses for rates. Here are the top five high yield checking rates from around the country (effective 10/18/16) as determined by DepositAccounts.com:

Northpointe Bank
Product: Ultimate Checking
Rate: 5.00% APY
Restrictions: Rates applies only on balances up to $5,000. Other restrictions may apply.
Consumers Credit Union
Product: Free Rewards Checking account
Rate: 4.59% APY
Restrictions: Rate applies only on balances up to $20,000. Other restrictions may apply.
La Capitol Federal Credit Union
Product: All Access Advantage Checking
Rate: 4.25% APY
Restrictions: Rate applies only on balances up to $5,000. Other restrictions may apply.
Blue Federal Credit Union
Product: Extreme Checking
Rate: 4.00% APY
Restrictions: Rate applies only on balances up to $15,000. Other restrictions may apply.
Hope Federal Credit Union
Product: HOPE Rewards Checking
Rate: 3.01% APY
Restrictions: Rate applies only on balances up to $10,000. Other restrictions may apply.

Clearly the best way to maximize your money is to have several of these accounts going at once!

A word about CD rates

CD rates are sure to go up from here but no one knows exactly when. It could be in the very near future or it could further down the road.

That’s why it’s best to ladder your CDs. The easiest way to do that is to split your money into three piles — a money-market or savings account; a one-year CD; and a five-year CD.

A more sophisticated laddering approach would involve a six-tier setup. Splitting your money into six even piles, you’d have the following set-up: A money-market or savings account; a one-year CD; two-year CD; three-year CD; four-year CD; and a five-year CD.

Taking the latter example, when your one-year CD comes due, you have that money available to take advantage of a better rate — if there is one. Ditto for your two-year CD when it comes due, your three-year CD and so on.

That way you don’t lock all your money into a lengthy CD if rates go up in the near future, and you’re still earning the rates you lock in at today in the unlikely event that they go slightly lower down the road.

Read more: This savings strategy led to an early retirement at age 33

Security warning: Mobile banking hack

Advertisement
Theo Thimou About the author:
Theo has co-written several books with Clark Howard, including the New York Times #1 bestseller Living Large in Lean Times. As a single widowed parent of two young children, he strives to bring unique savings tips to men and women like him who must face life without their spouses. He can be reached at [email protected]
View More Articles
  • Show Comments Hide Comments