The Highest Savings Account and CD Rates This Week: June 13, 2022

more


online banks

are raising interest rates on savings accounts and CDs. For example, in the last week, Ally increased the rate of its Ally High Yield Savings Account to 0.90% APY, and Quontic Bank is now paying 1.26% to 2.86% APY on CDs.

Our best savings accounts guide and best CDs guide can be great starting points in your research. But if you prioritize finding the highest rates above all else, then this list is for you.

What are the interest rates for savings accounts today?

The FDIC keeps tabs on national rates for interest-earning bank accounts. The average interest rate earned by a savings account right now is 0.07% APY.

For CDs, the average interest rate may depend on the term you choose. The average interest rate for 1-month is 0.03% APY, and the average interest rate for a 60-month CD is 0.39% APY.

We’ve been checking over a dozen financial institutions to keep up with the new rate offerings. Our list includes accounts with much higher interest rates than the national average since online institutions tend to offer high-yield bank accounts.

The most competitive


high yield savings accounts

pay around 1% APY right now, while CDs may offer up to 3% APY.

Keep in mind interest-bearing accounts may change. Savings accounts have a variable interest rate, which means that the rate may fluctuate at any time. CDs usually have a fixed interest rate. This means you’ll usually be locking in a rate for a specific period of time.

Best savings account interest rates

Annual Percentage Yield (APY)

0.90% APY

Minimum Deposit Amount

none

Annual Percentage Yield (APY)

0.90% APY

Minimum Deposit Amount

none

pros

  • High APY
  • No minimum opening deposit
  • No monthly service fees
  • Savings buckets help you save for different goals
  • Surprise savings transfers help you save extra money from your checking account

Cons

  • No physical branch locations
  • No way to deposit cash

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More Information

  • Create separate savings buckets in a savings account
  • Link to your Ally checking account and enroll in surprise savings transfers to have extra money transferred to savings three times a week
  • Interest compounded daily, paid monthly
  • FDIC insured

High-yield savings accounts are great tools if you’d like to earn some interest on your savings. the


Federal Reserve

also has increased the federal funds rate twice so far since March, so savings interest rates are also expected to steadily increase throughout 2022.

Ally, Barclays, Citi, LendingClub, Salem 5 Direct, Bread Savings, and BrioDirect are offering some of the highest interest rates on savings accounts right now.

Ally has been featured in many of our best savings account guides. It recently increased its savings rate 0.90% APY.

You might like to bank with Ally if you’d like to open a bank account with budgeting tools. The Ally High Yield Savings Account allows you to save for individual goals through savings buckets. You may label savings buckets as an “Emergency Fund,” “Travel Fund,” or enter your own goal.

Meanwhile, the Barclays Online Savings Account might be a good option if you’d like to open a high-yield savings account with $0. Bear in mind that you’ll have limited access to your account, though. The only way to deposit or withdraw money is by using an external bank account.

Citi® Accelerate Savings might be worth exploring if you live in a state where the account is available. The account is not available in the following states: California, Connecticut, some parts of Florida, some parts of Illinois, Maryland, Nevada, New Jersey, New York, Virginia, or Washington, DC.

Another thing you’ll want to keep in mind with Citi® Accelerate Savings is that Citi groups its bank account into packages. You’ll need to open a savings account and a checking account, and depending on which accounts you choose, you might have to deal with monthly service fees.

The LendingClub High-Yield Savings Account and Salem Five Direct eOne Savings are two of our new top picks in our best online high-yield savings account guide.

You may like the LendingClub High-Yield Savings Account if have at least $100 for an initial deposit. Meanwhile, Salem Five Direct eOne Savings lets you deposit up to $1 million in the savings account since it’s FDIC and DIF insured. The rate drops if you have more than $1 million in your account, though.

The Bread Savings High-Yield Savings Account is great high-yield savings account if you have at least $100 to get started. If you haven’t heard of Bread Savings, you might be familiar with Comenity Direct. Comenity Direct has recently been rebranded because its parent company, Bread Financial, has expanded to include lending options.

Lastly, the BrioDirect High-Yield Savings Account rounds out the bunch. It could be ideal if you’d like a savings account with zero monthly service fees and a competitive interest rate — just make sure you have at least $25 in your account to earn interest.

Best CD interest rates

Some of the institutions on our list are also top picks on of our best CD guides, so if you’re looking for a specific CD term, consider reviewing these posts too:

That said, if you’re comfortable with a high initial deposit or don’t mind limited terms options, the following four CD options also might be suitable contenders — even though they aren’t in our best-of guides.

Annual Percentage Yield (APY)

1.10% to 2.75% APY

Minimum Deposit Amount

$2,500

Annual Percentage Yield (APY)

1.10% to 2.75% APY

Minimum Deposit Amount

$2,500

More Information

  • Terms ranging from 6 months to 5 years
  • Early withdrawal penalties: 90 days simple interest for terms under 24 months, 180 days simple interest for terms of 24 months or more
  • Interest compounded daily, paid monthly
  • FDIC insured

Live Oak has CD terms from 6 months to 5 years. It stands out for its competitive interest rates and low early withdrawal penalties, but you’ll need at least $2,500 for an initial deposit. Most banks usually require a minimum of $1,000.

Annual Percentage Yield (APY)

0.50% to 3% APY

Minimum Deposit Amount

$10,000

Annual Percentage Yield (APY)

0.50% to 3% APY

Minimum Deposit Amount

$10,000

pros

  • Competitive rates for certain term lengths
  • Compounds interest daily

Cons

  • $10,000 minimum deposit
  • Standard-to-high early withdrawal penalties

More Information

  • Terms ranging from 3 months to 5 years
  • Early withdrawal penalties: 89 days simple interest for terms under 91 days; 120 days simple interest for terms of 91 days to less than 12 months; 270 days simple interest for terms of 12 months to less than 36 months; 365 days simple interest for terms of 36 months to less than 60 months; 730 days simple interest for terms of 60 months or more
  • Interest compounded daily, paid monthly
  • FDIC insured

While the Popular Direct Certificate of Deposit didn’t make it into any of our best-guides, it still could be great if you already intend to open a CD with more than $10,000. You’ll want to pay attention to the CD early withdrawal penalties though because some terms have high penalties.

Annual Percentage Yield (APY)

1.22% to 2.82% APY

Minimum Deposit Amount

$500

Annual Percentage Yield (APY)

1.22% to 2.82% APY

Minimum Deposit Amount

$500

More Information

  • 2 branches near Baltimore, Maryland
  • Free access to over 1,600 M&T Banks ATMs on the East Coast
  • Terms range from 1 year to 5 years
  • Early withdrawal penalties: 90 days of interest for terms of 1 year; 180 days of interest for terms longer than 1 year
  • Interest compounded daily and paid monthly
  • Member FDIC

You may like CFG Bank CDs if you’re searching for the following CD terms— a 12-month, a 13-month CD, an 18-month, a 36-month CD, or a 60-month CD. You also can open a CD with a low minimum opening deposit.

Annual Percentage Yield (APY)

1.26% to 2.86% APY

Minimum Deposit Amount

$500

Annual Percentage Yield (APY)

1.26% to 2.86% APY

Minimum Deposit Amount

$500

pros

  • Competitive APY
  • $500 opening deposit

Cons

  • Limited term options
  • High early withdrawal penalties

More Information

  • Term lengths: 6 months, 1 year, 2 years, 3 years, 5 years
  • Early withdrawal penalties: All interest earned for terms under 1 year, 1 year of interest for 1-year terms, 2 years of interest for terms of 2 years or longer
  • Interest compounded daily, paid monthly
  • FDIC insured

Quontic Bank pays competitive interest rates on CDs and only requires a $500 minimum opening deposit. However, you’ll want to be mindful of the CD early withdrawal penalties. Quontic charges high penalties if you need to withdraw money before your term reaches maturity.

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