Online banks offer best interest rates
Have any idea what the average savings account pays right now? It's a measly 0.1 percent. But according to Bankrate.com, you can do a lot better than that.
"And if you shop around, you can find yields in the neighborhood of 1 percent, 1.05 percent. So you can raise your interest earnings 10-fold just by being willing to shop around," said Greg McBride, Bankrate's senior financial analyst.
McBride says online banks offer the best rates.
"Barclay's Bank recently introduced an online savings account paying 1 percent APY," he said.
McBride says online banks have lower overhead and pass the savings along in the form of higher interest.
"We get that additional return without any additional risk. The money is still federally insured. It's available nationwide, so it doesn't matter where you live. And you can get to it whenever you need it. So you're not giving up access to your money," said McBride.
More Info:
Bankrate.com: National Highest Yield MMA and Savings Accounts
"And if you shop around, you can find yields in the neighborhood of 1 percent, 1.05 percent. So you can raise your interest earnings 10-fold just by being willing to shop around," said Greg McBride, Bankrate's senior financial analyst.
McBride says online banks offer the best rates.
"Barclay's Bank recently introduced an online savings account paying 1 percent APY," he said.
McBride says online banks have lower overhead and pass the savings along in the form of higher interest.
"We get that additional return without any additional risk. The money is still federally insured. It's available nationwide, so it doesn't matter where you live. And you can get to it whenever you need it. So you're not giving up access to your money," said McBride.
More Info:
Bankrate.com: National Highest Yield MMA and Savings Accounts
