We focus on those financial institutions that have low fees, great rates, and are typically available anywhere in the U.S. You can find local banks and credit unions that offer comparable rates, but their availability is limited geographically.
Best Interest Rates for January 2020
January 2020 Interest Rates Update: There were a few rate changes over the past month:
- Betterment Everyday™ Cash Reserve account is at 1.83% APY.
- Wealthfront Brokerage Cash Account Rate is at 1.82% APY.
- BrioDirect is offering a High-Yield Savings account at 2.10% APY with $25 minimum deposit.
- Vio Bank’s High Yield Online Savings account is at 2.02% APY with $100 minimum opening deposit.
- Fitness Bank is offering a 2.20% APY savings account rate for balances over $100 when step requirements are met.
- Prime Alliance Bank is offering a 60-month CD at 2.50% APY and a 48-month CD at 2.40% APY, both with $500 minimum deposit.
- First National Bank of America is offering a 12-month CD at 2.10% APY and a 60-month CD at 2.30% APY, both with $1k minimum deposit.
- TAB Bank is offering a 12-Month CD earning 2.05% APY with $1k minimum deposit.
- SallieMae Bank is offering a 12-Month CD at 2.10% APY with $2.5k minimum deposit.
- Heritage Bank is offering a 6-Month CD at 2.31% APY with $100k minimum or 2.21% APY with $10k minimum deposit.
The average 30-year fixed mortgage rate comes in at 3.72%.
With that said, here are some of the best interest rates we’ve found for January 2020:
Best Bank Account Rates
Savings Accounts: The top savings account rate goes to TotalDirectBank Money Market Account at 2.10% APY with $5000 minimum deposit (see table below). Several banks come in a close second, including HSBC Direct Savings Account at 2.05% APY ($1 minimum), Vio Bank Savings Account at 2.02% APY ($100 minimum), and UFB Direct Savings at 2.00% APY. These represent some of the highest rates on a nationally available savings account.
Here’s a comparison table we update daily with current competitive rates:
Best CD Rates: The rates on certificates of deposit vary based on the term. The longer the term, the higher the rate. Keep in mind that penalties may apply if you close the CD before the end of the term. For a 1-year CD, the best rate we could find is from SallieMae Bank at 2.10% APY ($2.5k minimum deposit).
Checking Accounts: Most checking accounts do not pay interest. For online banks, however, you’ll find plenty of options where you can earn some interest on your funds. There are two things to keep in mind. First, many banks offer higher interest rates only if you keep a lot of money in your checking account. Second, the rates are lower than a savings account or CD.
Some top paying checking accounts that we like include FNBO Direct, which currently pays 0.65% APY. For those with at least $15,000 in checking, you can earn 0.50% APY from Ally Bank. I list Ally second because most people don’t keep that much cash in checking, but it’s an option for those who do. These rates are unchanged from previous months.
Bonus: I also keep a running list of popular checking account promotions you can check out.
Mortgage Rates
Mortgages: Listing the “best” mortgage rate is really impossible. Rates change throughout the day, vary by state, and are highly dependent on a number of factors including your credit score, debt-to-income ratio, and down payment. That being said, the average rate for a 30-year fixed rate mortgage is up this month to 3.72% according to Freddie Mac (from 3.68% last month). The average rate on a 15-year fixed mortgage is slightly up to 3.16% (from 3.15% a month ago).
You can find competitive mortgage and refinance rates at LendingTree or on the table below:
Related: Compare mortgage rates online
Best Credit Card Interest Rates
Credit Cards: The longest 0% introductory period stands at 15 months on both purchases and balance transfers. You can find a current list of the best 0% credit card offers here.
If you find better rates on any of the above financial products, please let us know in the comments below.
Note that the above rates were as of January 2, 2020. Rates are subject to change, so please confirm the rates directly with the financial institution.
Good info. Thank you.
One other thing that I would find very helpful, if it exists, would be a list of credit cards that offer 0% interest and 0% balance transfer fee for any period of time…even just 6 to 9 months would be helpful.
SmartyPig has had their interest rates at 1% for quite some time now, no minimum required…
Thanks for collecting all this information! Interest rates are one of the important things to factor in when determining where to keep your money. I would put it out there that interest rates are not the only factor to consider, but having as much information as possible about these rates is great!
Hi,
I just open a sfgi direct account at http://www.sfgidirect.com/ while reading your newsletter. Easy to set up and give 1% APY. Thank you so much for your valuable advices!
Isabelle, thanks for letting us know about this option.
Hi Rob, For people in Michigan, Lake Michigan Credit Union pays 3% on a checking account up to $15,000 You must set up a direct deposit and due 10 transitions a month with your debit card. So for me it is worth using your debit card for 10 small transitions to get the 3% and I use it more for a savings account.
Kevin, thanks for the tip.
This is a great list to have, thanks!
One thing I noticed when I (recently) took out a HELOC, was that a local credit union offered the lowest overall plan because there were no closing/origination fees. They even waived the appraisal fee. The rate was .25% higher than an online rate I found, but by doing the math (mine is a short term), using the local guys turned out to be the best deal.
Hello everyone. I’m looking into transferring several credit card accounts into an overall better credit card and/or cards. 0% transfer rates and obviously low APR’s would be ideal. If anything comes to mind, please share. I’ll continue to research and Rob… I’m so happy that I stumbled on to Dough Roller!!!
The Discover It card offers 0% introductory APR for 18 months on balance transfers, which like you said it’s the longest period among all credit card offers right now. There is a 3% balance transfer fee which is about standard in the industry.
Times have changed on the percentages earned in savings accounts. Its not the best choice these days to grow money. But, its better than checking accounts! You definitely need to know what’s happening in order to make the best choice for your goals.
I am not a saver in this form anymore because of the scarily low interest rates, I like my money active for me.
Great news on the mortgage rates for anyone wanting to make their money work for them in that manner. I’d rather over pay on my mortgage than place extra money in savings at the moment.
After researching customer service reviews for the top online banks for savings accounts, I am hesitant about opening an account with an unfamiliar bank (to me).
I am thinking about opening up an account with American Express even though their rates are a bit lower. I have been an AMEX credit card holder since 1989 and have always received great customer service.
Do you think there is much difference among the online banks regarding customer service?
AMERICAN EXPRESS IS THE BEST!!!!! If you have ANY problem with anyone they will do the research and in the meantime remove the charge until it is straightened out! ALL other credit cards make you go thru a ringer when you have any problems with charges and getting a credit!
AMEX is worth every penny!
This article, like many, is incomplete.
The top savings account rate with no fees/minimums is MySavingsDirect (from Emigrant Direct Bank) with a whooping 1.04% APR (1.05% APY if you dare).
Thanks for letting us know.
Quick question which may be a silly one: I recently opened a Capital One 360 savings account. Will the interest rate on that account or really any of the savings accounts listed about change as rates increase? Or do you have to open a new savings account to have the new rates?
Thanks so much!!
Don’t fall for any of this. Many banks list a high APY (which is NOT the Annual Percentage Rate (APR)) at the beginning of each month to make it into article like this. Soon after they drop dramatically.
Besides, APY does not do you any good, the APR is what counts. There are several banks out there who give you 1% true APR, and that for over 1 year, a professional would never mess around with what we call fake advertising APY’s.
Actually, I’ve been tracking rates for years now, and the banks listed don’t play games with their interest rates. The rates you see have been in place for some time. And the APY is what counts. It factors in compounding.
APY stands for annual percentage yield-it’s what banks pay you. APR is annual percentage rate, what you pay banks for credit. APY is what you want if you’re looking at earning interest on deposits.
It would be extremely useful if you could provide banks that have minimum premature penalties on 5 year cd’s. Ally used to have a penalty of 2 months on a 5 year cd, before they raised it. I took advantage at that time. Consider that it paid 2.4 percent. If you kept it a year, the interest rate would be 10/12 of 2.4 percent. That is 2 percent. A very good deal for a one year cd..
MySavingsDirect offered by Emigrant bank has a APY of 1.25%, no minimum balance and no monthly fees.
I just opened a savings account at GE Capital Bank, and they’re offering a 1.05% APY.
I like Discover Bank’s savings account that offers 0.95% APY and cash back (up to $120 per year) checking account that provides unlimited free checks with no minimum balance requirement.
Actually Lake Michigan credit union does not require you to be a MI resident. If you check around there are plenty of CU and Small banks that offer high interest rate checking accounts that often exceed the 1% savings rates you have quoted.
Rick, right you are. Just make sure you understand the limitations. They limit the amount you can save, require direct deposit, require a certain number of debit transactions each month. This doesn’t make them bad deals. It’s just important to know the requirements before opening an account.
What banks or credit unions offer good interest rates on their HELOC? I am in Texas.
Do you know the name of a lender that will give me a decent rate on a small investment property to refinance? The rates I have been getting are very high and closing costs range from $3800 to $5800!! Any information is greatly appreciated.!
Great list, thanks for all the info.
Just out this last week, too late for your survey. A 11 month no-penalty CD from Ally for 1.25 percent. Since this is equivalent to a straight savings account, go for the no-penalty CD.
United Bank is advertising a 1.25 APR money market account.
Capital one is offering $200 to open a new money market account 1% interest, may be targeted, and purepoint.com offers 1.25% interest savings.
Pure Point Financial 1.25% savings $10k min, Dime bank 1.1% money market $1k min
Always love what you do Rob! Thanks! Your posts and podcasts on building a blog and growing it remain my favorite. Thanks!
Check out Everbank Yield Pledge Money Market Account. 1.11% rate locked in for at least 1 year.
There is also CIT Bank which has a 1.05% APY and pays a bonus with $15k+.
Purepoint Financial has an interest rate of 1.25 percent. I switched to them months ago
Here are my favorites:
Savings: Purepoint Financial at 1.25%
CD: Ally 11-month NO PENALTY CD at 1.50% (No penalty to withdraw after first 6 days)
Interest checking: Alliant Credit Union at 0.65%
I wish you would add the early withdrawal penalty to the 5 year CD.
In the past, I have found holding a 5 year CD for at least 1 year was superior than a straight
savings account, if the early withdrawal penalty was not too severe.
The best interest rates I’ve found for CDs is at Connect One Bank. You cannot beat this deal__A 10-month CD (open with $500) @ 2.17% APY/2.15% APR If you want to earn really good interest with only $100 to start, check out the 15 month CD rate (2.00% APY/1.98% APR) at HavenSavings Bank.
It’s kind of overwhelming when ideas such as this are shared online. It’s quite a big help for giving us update when it comes to banking interest rates. So valuable, my mind is now secured where to put my money best. Thanks
Notice not much is said about Marcus Bank by Goldman Sachs. Currently they pay 1.70% on Money Market Savings Accounts and just raised CD rate on 12 month CDs to 2.30%. Minimum to earn any interest is $100(some institutions require as much as $10,000. be deposited). NO FEES, FDIC Insured and 6 withdrawals allowed per statement period. Easy to set up and very “Friendly” to access/use. All being said and considered Marcus Bank by Goldman Sacks is our chosen and preferred source for High yielding Savings, flexibility. getting information daily and ease of use.
Marcus Bank by Goldman Sachs is up to 2.05% on their savings account and now offer a no penalty 13 mo CD at 2.15%. I have had an account with GS for several years, and they are awesome to deal with. Great ACH practices, and they even wire funds for me with no charge. Ally Bank appears to have raised their 11 mo no penalty CD today to 2.20%. Charles Schwab has some of the best CD rates around (from 30 days on up) but currently they do not have a no penalty CD.
I invested $ 824 only in local bank of Pakistan , they are giving me $ 4 per month in current saving account after 10% tax deduction
CIT Bank has 12 month CD for 2.5% ($1,000 minimum)
Synchrony Bank, 14 mth cd, 2.45%
Merrik Bank has 2.55% on 1 year CD. $25K minimum.
These rates are still below inflation. So wouldn’t you still be losing money in reality?
Slows the blood loss.
So what? What’s your alternative?
While you’re typing and not investing in a high yield savings account you’re losing money and I’m not. So there’s that.
I just leave cash in Vanguard money market settlement account, currently pays 1.93% and my money is conveniently accessible if I need to use some to rebalance or jump on an opportunity.
Not insured by FDIC
So? No money market has ever failed. Especially at a huge company like Vanguard
Hi Rob — Thanks for keeping this up. It will become even more valuable to separate the wheat from the chaff as rates rise. Lake Michigan Credit Union is still offering its 3% Max Checking account nationally with minimal requirements. Rate capped at $15,000 balance, but still decent. The old Kasasa Cash accounts still continue to pay fairly well too. 2.50% up to $10,000 balance at All America Bank and its affiliates, including the venerable Redneck Bank. Cheers!
I live in southern CA, are there any America Banks in this area?
Could you provide information on rates for refinance of auto loans?
Memory Bank 1.6% online checking no upper limit. Memory Bank money market 2.3%
I am totally confused by what you describe as the best rate in each category, versus the table you display with that category. For example, you state The top savings account rate goes to CIT Bank at 2.25% then in the table you show VIO Bank at 2.35 % APY.
Hi there, the tables are updated daily. The CIT rate was the top at the time the article was published. We apologize for the confusion. There is a note included at the bottom of the article mentioning rates are subject to change.
Heritage Bank NA out of Minnesota (local for them but has online checking available nationwide) is currently offering 3.33% on its checking account on balances up to $25k. You have to use your debit card 10x per month to get that rate and do direct deposit…but you can’t beat that rate!
You can beat that rate. I was using Heritage Bank until Greater Nevada Credit Union started paying 4% on up to $50,000. It only requires 9 debit card uses a month instead of the common 10 or 12 or 15. I don’t know why it doesn’t get mentioned in the bank account promotions.
Jeff, thank you for posting this, I opened an account at HB today due to this info. I checked out GNCU also but I don’t qualify due to location.
My credit union (Texas Trust Credit Union) pay 3% for their Power Checking account with minimum balance of $5000.
Excellent Stuff, thanks!
Redneck Bank, Mega Money Market,.. pays 2.5% up to $50,000. Why no one covers them is way beyond me! I have been with them for YEARS and they are the BEST BANK to deal with! One or two rings of the phone, and you are talking to one of 5 or 6 GREAT gracious gals from the bank!
Thank you for keeping this updated. Because of you i can keep getting better rates
FYI, Wealthfront savings account lowered their rate from 2.57% to 2.32%, just as I opened an account with them last week. 🙁
It’s all a crap shoot right now. The interest rates are bouncing around with every organization. Still… Wealthfront is better than many others. Not all, but many.
I I have previously asked you to consider listing the best early withdrawal penalties on 5 year certificates.
Holding a 5 year certificate for one year can sometimes show a better rate than a one year.
Please consider it again. sometimes.
Would you recommend one switches the savings account monthly to get the best rate? Is there a trend from past rates to zero in on a couple of institutions that have a consistent high rates so the one can stick to a few places only?