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Rob Berger

Since many banks are constantly updating their interest rates offered on savings, money market and checking accounts, this chart should come in handy. On the 1st of every month, this page is updated to show the most accurate rate information available.

Banking Deal: Earn 1.20% APY on an FDIC-insured savings account at Barclays.

This list is organized in two sections. The first section includes FDIC-insured savings or money market accounts and the second includes FDIC-insured checking accounts. Each list is sorted alphabetically and unless there is a notation listed, the APY rate applies to all amounts.

New for September 2017: Banks continued to slowly, and I do mean slowly, raise their rates. Ally Bank raised its rate on online savings accounts to 1.20% APY. It bumped its money market account up to 0.90% APY. Why anybody would choose the money market account over the savings account is beyond me. And Discover rates its online savings account rate to 1.15% APY.

Current rates

Use the table below to search for current interest rates available on money market accounts, savings accounts, and certificates of deposit. For historical rates, scroll down.

Historical interest rates

Banks that have lowered or raised their rates in the last month are shown in red and green, respectively.

Bank Account Name Tier Notes 9/1/2017 1/1/2017 1/1/2016 1/1/2015
Synchrony Bank Online Savings All No minimum balance 1.20% 1.05% 1.05% 1.05%
Ally Online Savings All No minimum balance 1.20% 1.00% 1.00% 0.99%
Ally Money Market All No minimum balance 0.90% 0.85% 0.85% 0.85%
American Express Bank High Yield Savings All 1.15% 0.90% 0.90% 0.80%
Barclays Online Savings All 1.20% 1.00% 1.00% 0.90%
Capital One 360 Online Savings All Formerly ING Direct 0.75% 0.75% 0.75% 0.75%
Discover Bank Online Savings All 1.15% 0.95% 0.95% 0.90%
GS Bank Online Savings All No minimum deposit 1.20% 1.05% N/A N/A
Everbank Money Market $5k to $10k Includes 1st year intro rate 1.31% 1.11% 1.11% 1.11%

Savings Account Rates

As you review the current and historical rates for savings accounts and money market accounts, keep the following in mind:

  • Fees: The best offers come with no monthly maintenance fees. Even a small fee can wipe out much of the yield, particularly in the current low rate environment. Before opening an account, make sure you understand what if any fees you’ll pay. The best savings accounts don’t charge fees.
  • Minimum Deposit: Many bank accounts require either a minimum deposit or a minimum balance going forward, or both. Be sure you know these requirements as you shop for the highest yield.
  • Tiered Rates: Some, but not all, banks offer tiered rates based on the amount of your balance. While one might assume that the rates go up as the balance goes up, that’s not always the case. Some banks actually lower the rate for balances over a certain limit.
  • Online Banks vs Traditional Banks: As a general rule, online banks offer the highest rates. Many brick and mortar banks offer yields as low as 0.01%. It’s as if they don’t want your money. In contrast, online banks offer yields of 1.00% APY or more.

Checking Account Rates

With checking accounts, the interest rates tend to be lower. That’s generally fine because most people don’t keep a lot of money in a checking account. Any extra money one has should be moved over to a high-yield savings product. That being said, many banks do offer interest checking accounts. Here it’s critical to consider fees, which are more common than on savings and money market accounts.

Finally, if you know of other bank accounts or deals we should include in our list, please leave a comment below.

The low interest rates offered by even the highest-yield savings and money market accounts are disappointing for savers. Even as the Fed starts to raise rates, savings account yields haven’t budged. So, do we just give up the idea of earning anything on our savings?

cd-ladder

Well, not necessarily. One alternative is to create what’s called a CD Ladder.

If you don’t want to tie your short-term cash in a riskier investment, you can consider certificates of deposit (CDs). Typically, CDs carry penalties if you withdraw your cash before they mature. In other words, you will want to invest in a CD designated with a length of time that represents when you would like to get your money back (plus interest). If you need to liquidate the CD early, a bank may take away some or all of the interest that has accrued since the time of the deposit.

In addition, the longer the CD is held, the higher the interest rate you’ll earn. A 5-year CD, for example, will pay a much higher yield than a 12-month CD. The downside, of course, is that you are much more likely to liquidate a 5-year CD in an emergency, losing money to the penalty most banks charge for early withdrawals.

By using a CD ladder, however, you can get the higher rates that accompany longer terms, while also reducing the risk that you’ll need to liquidate a CD before it matures.

So, how does it work?

The strategy is simple. You will initially buy a number of CDs, all with staggered maturity dates. Every few months, one of the CDs will mature and you can then roll that cash into a new CD (or use the cash for your short-term expense needs). Eventually, you will only need to buy CDs with the longest maturities, but the constant maturation of certificates will continue. This provides you with a rolling source of interest and/or principal, which you can use or reinvest depending on your finances at the time.

The process consists of two phases. For this example, we’ll use the latest rates from online banks, which often do not have a minimum balance requirement.

Setting up the CD Ladder

These are the CD products and interest rates we will be dealing with. These are example rates, so check with your bank to determine the interest you’ll earn.

Duration APY
3 Month 0.30%
6 Month 0.60%
9 Month 0.64%
12 Month 1.05%
2 Year 1.30%
3 Year 1.50%
4 Year 1.40%
5 Year 1.65%

We can use this combination of maturities to create a ladder that provides us with a roll-over, or a chance to withdraw part of the cash, every three months. During Phase 1, this will require a combination. By Phase 2, though, all CDs will be of the 5-year maturity, which usually offers the highest interest rates. Remember that five years is as long as you want to go with the CD ladder. If you have funds that you can afford to part with for more than five years, you should look at investing them in a slightly riskier (and more lucrative) investment.

Alright, let’s get started. Assume that we have $10,000 that we’d like to begin rolling into certificates of deposit. Since the longest we want to go is five years, we can split this evenly over time at $2,000 per year. Our shortest maturity is three months, so we can tackle this in terms of $500 a quarter.

In the first phase, start on day zero by buying CDs with the following maturities:

  • $500 in the 3 month CD
  • $500 in the 6 month CD
  • $500 in the 9 month CD
  • $2,000 in the 12 month CD
  • $2,000 in the 2 year CD
  • $2,000 in the 3 year CD
  • $2,000 in the 4 year CD
  • $500 in the 5 year CD

At the end of the each of the first three quarters, withdraw each quarter’s $500 plus interest and use the funds to buy new 5 year CDs. For the sake of the example, we’ll withdraw the interest and place it in another bank account to use as income. To make more of your money, you should “reinvest” your interest each quarter.

Watch out for automatic renewal. At Ally Bank, for example, CDs are automatically renewed for the same duration when they mature. During this stage, you will need to be proactive to withdraw the funds at maturity and use them to buy the next appropriate CD.

After one year of doing the above, this is what we have:

  • $2,000 maturing today (original 12 month CD)
  • $2,000 maturing in one year (original 2 year CD)
  • $2,000 maturing in two years
  • $2,000 maturing in three years
  • $500 maturing in four years
  • $500 maturing in four years, three months
  • $500 maturing in four years, six months
  • $500 maturing in four years, nine months

With the $2,000 maturing today, buy:

  • $500 in the 3 month CD
  • $500 in the 6 month CD
  • $500 in the 9 month CD
  • $500 in the 5 year CD

Do the same with the $2,000 that matures each year until you have a total of 20 CDs, each maturing every quarter for the next five years. Once this process is complete, you can allow the automatic renewals to take effect, except for when you need to withdraw your money.

Drawbacks of the CD ladder

As long as rates for long-term CDs remain higher than short-term CDs — as they do most of the time — you may notice something. This method, in fact, results in earning less than simply investing your entire $10,000 in a 5 year CD. So, why would you go this route?

It’s because the CD ladder provides you some protection against losing interest if you need to withdraw your funds early. At Ally Bank, the penalty is not significant. This bank will charge you the amount of three months’ interest if you withdraw a CD with a maturity of 12 months or less. They’ll also charge 6 months’ interest if you withdraw a CD with a maturity of longer than 12 months.

Another possibility to consider is that you might earn more interest in a high-yield savings account than you would in a short-term CD. When this is the case, use a specially designated savings account rather than the short-term CDs.

We could have made this process easier by setting up a ladder that results in a turnover of $2,000 once a year rather than $500 every quarter. However, this method allows you to better decrease the possibility of losing interest. This is because you will always be able to access a portion of your investment within three months.

In combination with a savings account, which is liquid at all times, you can earn consistently higher interest rates with less risk than using five-year CDs that mature only once a year.

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