If Your Bank Hasn't Done This Recently, It's Time to Put Your Money Elsewhere

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield. APYs are subject to change at any time without notice.

KEY POINTS

  • Some people stay with the same bank for years.
  • If your bank lacks in one key area, a switch may be in order.
  • It may be time to find a bank that is raising its savings account APYs.

Don't settle for a bum deal.

Whether you're putting money into a checking account, savings account, or both, it's important to choose the right home for your cash. That means finding a bank with great customer service, minimal fees, and an online platform that's easy to use (even if you bank at a brick-and-mortar establishment, chances are, you'll do your share of transactions online).

But those aren't the only things to look for in a bank. If you have money in a savings account, your goal should be to snag the highest interest rate possible on your cash. And that's why it's important to keep tabs on what interest your bank is paying -- and move your money elsewhere if your bank stops being competitive.

Don't give up that interest

For many years, the interest rates banks were paying on savings were so minimal that it almost didn't matter where you kept your money. But these days, savings account rates are up across the board in the wake of rate hikes on the part of the Federal Reserve. And so you finally have a solid opportunity to generate a nice return on your money.

That's why you'll need to make sure the interest rate your savings account is paying is competitive. And if it isn't, it may be time to move your money over to another bank.

Our Picks for the Best High-Yield Savings Accounts of 2024

APY
up to 4.60%
Rate info Circle with letter I in it. You can earn the maximum APY by having Direct Deposit (no minimum amount required) or by making $5,000 or more in Qualifying Deposits every 30 days. See SoFi Checking and Savings rate sheet at: https://www.sofi.com/legal/banking-rate-sheet.
Min. to earn
$0
APY
4.75%
Rate info Circle with letter I in it. Our Disclosure: Annual Percentage Yields (APY) is subject to change at any time without notice. Offer applies to personal accounts only. Fees may reduce earnings. For High Yield Savings accounts, the rate may change after the account is opened. Visit synchronybank.com for current rates, terms and account requirements. Member FDIC
Min. to earn
$0
APY
4.25%
Rate info Circle with letter I in it. 4.25% annual percentage yield as of June 13, 2024
Min. to earn
$1

Over the past number of months, many banks have increased their savings account interest rates, as well as their CD rates. If your bank hasn't, or if it hasn't increased its rates at a comparable pace, then there's no sense in selling yourself short by keeping your cash parked where it is.

Keep in mind that if you have savings at a physical bank, moving over to an online bank could result in a nice boost on the interest rate front. Online banks don't have to pay rent for different locations like brick-and-mortar banks. And since they tend to have a lot fewer overhead costs, that savings commonly gets passed along to consumers in the form of more generous interest rates.

Other reasons to switch banks

You may be less than thrilled with the interest rate your bank is giving you on your savings. If that's the case, then switching banks makes sense.

But that's not the only reason to consider making a change. Maybe you're tired of waiting 20 minutes or more to speak to a customer service representative every time you call your bank with a question. Or maybe you don't like the fact that your bank nickel and dimes you with fees in your checking account.

Your bank should not be a source of stress. If anything, it should make your life easier. And so if there's any aspect of your banking experience you aren't happy with, you really shouldn't hesitate to explore alternative options.

There are so many banks to choose from these days -- both physical and online. So if yours has been letting you down, it may be time to cut ties and find a better home for your hard-earned cash.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 11x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.

Two of our top online savings account picks:

Rates as of Jun 14, 2024 Ratings Methodology
Advertisement
SoFi Checking and Savings Barclays Online Savings
Member FDIC. Member FDIC.
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor

APY: up to 4.60%

APY: 4.35%

Min. to earn APY: $0

Min. to earn APY: $0

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