We all know that savings account rates have been on a path to nowhere over the last three years since the start of the global financial crisis. Back in 2007, savings rates were as high as 6% but now the average is closer to .50% APY. But with a little bit of research, you can still find savings accounts at 1% APY and above - some even higher than 1.50% APY.
We all know that savings account rates have been on a path to nowhere over the last three years since the start of the global financial crisis. Back in 2007, savings rates were as high as 6% but now the average is closer to .50% APY. But with a little bit of research, you can still find savings accounts at 1% APY and above - some even higher than 1.50% APY. While that doesn't sound like much, it's still a full percentage higher than the national average. So, looking at our rate database, here are a few ideas:
National Online Banks
CNB Bank Direct - CNB pays 1.15% APY on an online savings account, the highest rate in the country according to the BestCashCow rate tables. It requires $1 to open and and start earning interest. The online bank is a division of The Citizens National Bank of Bluffton.
American Express Savings - Personal Savings from American Express is offering a 1.00% APY online savings account. The bank has consistently received positive reviews from users and generally keeps its rate in the top 10. It's easy to open an account and there are no minimum balance requirements.
Aurora Bank - Aurora bank pays 1.06% APY but it requires a minimum balance of $100,000.
Local Banks and Credit Unions
You can also find some above 1% savings account rates by taking a trip to your local bank. Here are some of the offers we found:
While I realize most of you do not live near these banks or aren't eligible to join the Aflac credit union, almost every state and zip code in the country has a bank that is paying significantly above the national average. Click the "Savings" tab above to view savings account rates in your local area.
There no reason to stick with a low rate when FDIC insured banks are offering to pay more. Help yourself and your pocketbook by looking to get more for your savings.
Many banks and credit unions that support military personnel and their families are announcing that they will continue to honor direct deposits and other cash advances if there is a government default.
Many banks and credit unions that support military personnel and their families are announcing that they will continue to honor direct deposits and other cash advances in the case of a government default.
Pentagon Federal Credit Union has announced that military or civilian employees and retirees of the federal government, as well as Social Security recipients will receive their regularly scheduled payments in August even if the government defaults. Members will have to repay these advances within 90 days of when the advance was made.
Navy Federal Credit Union is offering a similar program to all of its members. Navy will also have counselors available to work out loan payments should its members have trouble.
Although not a credit union, USAA is providing the following support:
A one-time payroll advance for payroll scheduled to be deposited on August 15 for active duty military personnel, including activated Guard and Reserves.
Waive property and casualty insurance policy late fees or bank nonsufficient fund fees and suspend nonpayment cancellations for members who are on active duty, including those actively serving the Guard and Reserve, for 30 days where legally permitted.
For non-active members, USAA will offer special payment arrangements on loans, waiver of credit card late fees, refunds for non-sufficient funds and overdrafts, lines of credit increases.
If you are a government employee who thinks your pay check might be in jeapordy, check with your agency credit union to see if they will advance funds or be flexible with your payments.
Chase Bank Quick Deposit iPhone App lets you make deposits from your phone. It's a pretty neat application that could shift the banking world.
You might have seen the commercial where a guy sitting in a chair uses his iPhone and a Chase Quick Deposit app to take a picture of a check and deposit it via his phone. No trip to the branch required. I saw the commercial the other night and was instantly intrigued. When I worked in the online banking divisions at both Fleet Bank and Bank of America, we always considered check deposits to be one of the barriers to true electronic banking. Most people don't like to snail mail their checks to be deposited. Now, Chase seems to be put a nifty app together that solves that problem.
I decided to give the app a try to see if it really worked. I installed the app on my phone (it's available on the iPhone and Android operating systems), went through the validation process and then followed the instructions to take a picture of the front and back of a check. I pressed submit. Amazingly, it worked fine. A day later the funds were deposited into my account. In sixty seconds I had made a deposit that would have taken me thirty minutes or more to do in the past. Nice.
There are currently some deposit limits with the app. Consumers can only deposit $1,000 per day or $3,000 per weak using the app. Hopefully this limit will increase over time.
This is pretty significant. No doubt other banks will soon have similar apps available. Once they do, there is really no limit to true online banking. With this app, an online banking account, and a debit card, a consumer can open an account from any bank in the country and be able to easily deposit, withdraw, and manage their money. Branches would seem to become far less important for everyday banking, eliminating a major hurdle to online bank adoption.
Interestingly, Chase seems to be pursuing a dual strategy, bulking up its online banking while also indicating it plans to open more than 1,000 new branches over the next three years. I suspect branches will become more focused on investment and lending products while core deposit banking continues to shift online.
We all know that savings account rates have been on a path to nowhere over the last three years since the start of the global financial crisis. Back in 2007, savings rates were as high as 6% but now the average is closer to .50% APY. But with a little bit of research, you can still find savings accounts at 1% APY and above - some even higher than 1.50% APY. While that doesn't sound like much, it's still a full percentage higher than the national average. So, looking at our rate database, here are a few ideas: