Savers, It’s Time to Choose an Online Bank
You should reconsider the bank you use, at least for some of your savings. Chances are, if you're a customer at one of the major retail banks, you’re leaving real money on the table.
High-yield online savings accounts are finally starting to feel like they are in fact, high-yielding — or at least higher-yielding than they’ve been in recent years.
After keeping their rates depressingly low during the pandemic and for the first half of this year, firms like Synchrony and Goldman Sachs Group Inc.’s consumer bank Marcus have started to offer more. For example, Marcus recently bumped its payout for a savings account to 1.9%, or 2.9% (for three months) for customers who refer a friend.
Across the board, the average online savings account yield had the biggest monthly gain in at least five years between August and September, according to Ken Tumin, founder of DepositAccounts.com. As the Fed prepares to hike rates again this week, Tumin says he expects many high-yield savings accounts, many of which are currently paying more than 2%, to climb above 3%.
But don’t think that means the biggest traditional banks will follow suit. Since interest rates for savings accounts aren’t really regulated, there’s a wide variety and it ultimately comes down to how badly a bank wants your money. Right now the average for all banks, many of which are brick and mortar, is 0.13%.