When it comes to managing your savings, your interest rates can make a huge difference. Economic conditions seem like they are constantly changing recently. So, it’s become more important than ever to find a bank that really works for you. Not all banks are created equal though. These five banks don’t offer interest rates that will really help you build your savings.
1. Bank of America: Lagging Behind in Interest Rate Offerings
Although Bank of America is one of the largest financial institutions in the United States, its interest rates are extremely low. For a standard savings account, you’ll only get about 0.01% interest. In fact, you’d be hard-pressed to find anything above a 0.04% interest rate with a B of A savings account. While they provide extensive services and a vast ATM network, these low rates aren’t doing savers any favors.
2. Wells Fargo: Big Name, Small Interest
Wells Fargo is another big name in banking, but its interest rates are far from being competitive. The standard rate for their savings accounts is the same as Bank of America at 0.01%. This is far below the national average of 0.46%. Despite a solid reputation for customer service and accessibility, Wells Fargo just isn’t offering much in the way of interest.
3. Chase Bank: Popular But Not Profitable
I personally bank with Chase and, while I love it, their interest rates aren’t great either. Some rates are as low as 0.01% on their savings accounts. The “Premier” account only provides you with 0.01-0.02%. If your priority is growing your savings, you should consider switching banks or learning more about a high-yield savings account.
4. Citibank: Missing the Mark on Interest Rates
Citibank has a few different tiers for its savings accounts. Depending on what tier you fall in, it will impact your interest rates. Its basic savings account will only garner 0.03% interest. You’ll need to carry a balance of $1 million or more to get 0.25% interest. However, Citibank does have a high-yield savings account that will provide 4.3% interest. While that sounds great, they’re relatively hard to open.
5. PNC Bank: Low Rates Across the Board
Like Citibank, PNC offers around 0.03% interest for its basic savings account, but you’ll be able to earn more with their high-yield savings. The high-yield account can earn you 4.65% interest, which is pretty good. But for its regular run-of-the-mill savings account, you can definitely do better elsewhere. It’s worth considering a switch if you’re hoping to make your savings work harder for you.
Where You Can Go To Find The Best Interest Rates
While the banks mentioned here are trusted institutions, there are online banks and credit unions that will make your savings work harder for you. Ally Bank, for instance, has a high-yield savings account that will get you 4.2% APY. Marcus by Goldman Sachs also offers a higher rate at 4.25% and Discover Bank will provide around 4.1%. These online institutions have lower overhead costs, making it possible for them to pass the savings on to customers through higher interest rates. By switching to one of these alternatives, you can ensure your savings grow faster and smarter.
Don’t Let Low Interest Rates Hold You Back
As convenient as some of these banking options are, their interest rates are far from being competitive. It is essential for you to prioritize growth when it comes to your finances. That means finding a bank that will offer you the best rate possible on your savings. Don’t just settle for 0.01%. Your money should be working hard for you.