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The Federal Reserve raised interest rates by 0.25% on July 26, 2023. The hike is an effort to help bring inflation down. While higher interest rates are not great for borrowers, they are excellent for savers. If you’re in search of the best interest rates for your money, look no further.
Our list of highest interest rates for savings, CDs, and checking accounts focuses on financial institutions that have low fees, and high rates and are typically available anywhere in the U.S. While we update this page monthly, rates change often so you’ll want to confirm rates with the bank or credit union.
Best Interest Rates for September 2023
The rates listed in the table below represent some of the highest rates on a nationally available savings account. We’ve included a variety of options from small to large banks. Online banks offer the highest rates on savings accounts so you’ll find they make up the majority of our list. Not only are these savings rates high, but we also included these accounts because they have little to no minimum opening deposit requirements.
|Bank Account||Minimum Deposit to Open||Annual Percentage Yield (APY)|
|UFB Direct High Yield Savings||$0||5.25%|
|CloudBank 24/7 High Yield Savings Account via Raisin||$1||5.26%|
|CIT Bank Platinum Savings||$100||5.05%|
|M1 Finance High-Yield Savings||$0||5.00%|
|Wealthfront Cash Account||$0||4.80%|
|Betterment Cash Reserve||$10||4.75%|
|Marcus Online Savings Account||$0||4.30%|
|Discover Bank Online Savings Account||$0||4.30%|
|Capital One Bank 360 Performance Savings||$0||4.30%|
|Ally Bank Online Savings Account||$0||4.25%|
Our list of best CD rates includes a variety of terms from banks and credit unions. The credit unions we include offer easy membership for everyone to join. Keep in mind that penalties may apply if you close the CD before the end of the term unless it’s a no-penalty CD.
|CD Term||Bank||Minimum Deposit||Annual Percentage Yield (APY)|
|6 months||Signature Federal Credit Union||$500||5.50%|
|9 months No-Penalty||Blue Federal Credit Union via Raisin||$1||5.10%|
|1 year||Western Alliance Bank via Raisin||$1||5.51%|
|18 months||Capital One 360||$1||5.15%|
|2 years||United States Senate Federal Credit Union||$1,000||5.18%|
|3 years||Valley Direct||$500||5.60%|
|4 years||First Internet Bank||$1,000||4.54%|
|5 years||First Internet Bank||$1,000||4.59%|
Most checking accounts don’t pay interest. For online banks, however, you’ll find plenty of options where you can earn some interest on your funds. There are a couple of things to keep in mind:
- Some banks offer higher interest rates only if you keep a lot of money in your checking account or reach specific spending requirements.
- The rates for checking accounts are lower than many savings accounts or CDs.
Some top-paying accounts include:
Wealthfront Cash Account
Wealthfront is not a bank but they do partner with banks to offer FDIC-insured accounts. You can earn 4.80% APY with a Wealthfront Cash Account. There’s no minimum balance to earn that rate and no monthly account fees.
Consumers Credit Union Rewards Checking
If you use a debit card often, you might consider opening a checking account with Consumers Credit Union. When you make at least 12 qualifying debit card purchases every month, enroll in e-statements, and receive a minimum direct deposit of $500 a month, you can earn a rate of 3.00% APY. If you reach the monthly spending requirements, you can earn an even higher APY, up to 5.00%. Membership is easy to get by paying a one-time $5 fee to the Consumers Cooperative Association.
Ally Bank Spending Account
For those with at least $15,000, you can earn 0.25% APY from Ally Bank. Balances less than $15k can earn 0.10% APY. Ally Bank is a popular online bank and we also like that there are no monthly maintenance fees for this account.
Bonus: I also keep a running list of popular checking account promotions you can check out.
When you’re looking for a credit card with the best interest rate, you want to look for one that offers 0% APR. The longest 0% introductory period stands at 21 months for purchases and balance transfers. You can find a current list of the best 0% credit card offers here.
How To Get the Best Interest Rates
The easiest way to get the best interest rates is to have good or great credit. If you’re getting a credit card, for example, it’s one of the primary determining factors in your interest rate. If your credit is less than great, you can work on improving your rating.
Another factor is your current debt level. If you have a lot of debt, you may not get preferred interest rates on things like credit cards since you’re considered a higher risk. Higher debt levels also negatively impact your credit, so it’s best to pay your debt off as quickly as possible to get the best rates.
Finally, how much money you have to “put down” can make a difference. In the case of a mortgage, having a sizable down payment (of at least 20%) can help to ensure you get the best rates possible. And with some CDs or high-yield savings accounts, having more money to put into those can typically get you a better interest rate.
How Do Interest Rates Work?
Interest rates are determined, at least in part, by the federal funds rate set by the Federal Reserve. The federal funds rate is the rate banks charge each other for lending money overnight. Most recently, as mentioned before, the Fed raised its interest rate in July to a range of 5.25% – 5.50%.
As this rate goes up or down, so do the rates you’re charged for borrowing money and the rates you get for loaning or depositing money. When the economy is strong, the Fed will tend to raise the federal funds rate. Because of that, banks can usually offer a higher interest rate on products like CDs and savings accounts.
Things To Consider When Choosing an Interest-Bearing Account
The main thing to consider when choosing an interest-bearing account is that your rate may fluctuate depending on the product. When you choose a CD, for example, your rate is locked for that period of time.
That’s why it makes a lot of sense to lock in a good CD rate when you can find one. Alternatively, it might make sense to find somewhere else to put your money when CD rates are low since your money will be locked into that rate.
When choosing a high-yield savings account, it’s good to be mindful of rates fluctuating. For instance, prior to COVID-19, rates were generally pretty high. Then suddenly, they started dropping like flies, and what was once a good APY on a savings account suddenly became almost nothing.
That’s to be expected. Rates will fluctuate with savings accounts, so be prepared for that if and when it happens.
Are There Any Risks?
There aren’t many risks with interest rates, except that you might miss out on better ones. For example, if you lock in a new rate on a mortgage, you might miss out if rates drop even further. Or, if you lock in your money with a CD, you might miss out on rates going upward.
The risks are minimal unless, of course, there were a major upward swing in interest rates on something like a mortgage. If you have an adjustable-rate mortgage (ARM), you’ll be subject to whatever the new rates are, which will impact your payment.
Overall, the best thing to do is keep a pulse on the economy and how the federal funds rate is trending. I also find it useful to listen to the meeting minutes and any significant quotes that come out of the Fed meetings. This way, you can get a sense of how they’re feeling about the economy.
Frequently Asked Questions (FAQ)
Where can I earn the most interest on my money?
Where you can earn the most interest on your money tends to fluctuate based on current economic rates. In most cases, the best non-investment option will be a high-yield savings account.
You can also put money into a CD and build a CD ladder, which is when you stack several CDs on top of one another with varying maturity dates. This gives you a more constant flow of high interest.
Where should I put my savings in 2023?
Your best bet in 2023 is to put your savings in a high-yield savings account. It gives you some interest, but also the flexibility to move money in and out (and into other savings vehicles) as needed.
Finding the best interest rates is a combination of timing, good credit, and having money available. You can’t control the first one, but the latter two you can. Regardless of where you stand today, it’s always smart to work on improving your credit and paying down your debt. Then when the time is right, you’ll be in the best position possible to get the best interest rates available.