Over the past 10 years, we’ve experienced historically low interest rates which presented an opportunity for refinancing mortgages. Over the past year, the interest rate environment has changed and mortgage rates have increased substantially. As a positive, it is now possible to find a decent interest rate on savings accounts and CDs. 

Consistently, the highest rates we’ve seen are through online banks (Ally Bank, Capital One, etc.). According to the FDIC, the national average interest rate on savings accounts is currently 0.40% APY (as of May 15, 2023). However, these online savings accounts are paying around 4% interest. While you can’t visit a local branch, these accounts can be linked to local checking accounts with electronic money transfers to access cash. For simplicity, I recommend looking into the companies where you already have a relationship (for example, a credit card or car loan). That way, there should be one less login to manage and app to download.

Below are a few options for online, high yield savings accounts:

• Marcus (Goldman Sachs)
• Citi Bank
• American Express
• Discover Bank
• Ally Bank
• Capital One

If you prefer a local bank, check around for savings accounts (or even checking accounts) that have high interest rates. If you bank locally, it never hurts to ask if there is an account available with a higher interest rate. For excess savings that is not needed immediately, short-term CDs are also an option to explore.

As always, we are here for you. Please email or call if you want to set up a Zoom videoconference meeting or talk by phone.

Mary McCraw, CFP®

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