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