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With the U.S. Federal Reserve planning interest rate hikes to take the prime rate to 2.25% or even 2.5% by the end of this year, it might be worth reviewing your savings account. and see if your money could earn more, experts say.
Martin Lewis, a money-saving expert in Britain, told The Independent: “If you haven’t switched savings accounts in the past two years, you’re probably only making 0.1% or less. Check now.
The same advice holds true for Americans in light of recent interest rate hikes by the Fed. This doesn’t mean your money will necessarily earn the prime rate of 0.25%, but you could earn that or more.
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GoBankingRates recently shared the best high-yield savings accounts, and many of the highest rates can be found at online banks.
Top picks include:
Savings on bread: 0.00% APY, no monthly fees, $100 minimum deposit to open
Quontique Bank: %APY, no monthly fees, $100 minimum deposit to open
Sallie Mae Bank SmartyPig Account: 0.70% APY on balances up to $10,000, no monthly fees, no minimum balance
Monifi Save: 0.70% APY, no monthly fees, no minimum balance
TAB Bank: 0.65% APY, no monthly fees, no minimum opening balance
When shopping for a savings account, be sure to check monthly fees, which can lower your interest earnings, minimum balance requirements, and savings limits to get the highest interest rates.
All of these factors, combined with the interest rate, can influence your decision when choosing the best savings account for your short-term and long-term financial goals.
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