Best bank interest rates of April 2020

Grow your money faster with some of the highest APYs available today.

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Your bank account’s interest rate can make or break how quickly you accomplish your goals. If it’s too low, your money won’t grow unless you continuously make deposits. But a strong interest rate lends a helping hand by earning you money in your sleep. That’s why we created a list of the best bank interest rates for savings, CDs, money market and checking accounts.

Consumers Credit Union Rewards Checking

APY: Up to 5.09%

Interest compounding: Monthly
Monthly fee: $0

Minimum opening deposit: $0

Minimum to earn interest: $0

Consumers Credit Union offers one of the highest rates we’ve seen of any bank account. But to earn the highest APY you’ll need to meet requirements, such as the total amount of purchases you make a month.

T-Mobile Money

APY: 4%

Interest compounding: Monthly
Monthly fee: $0

Minimum opening deposit: $0

Minimum to earn interest: $200 in monthly deposits

T-Mobile steps into the banking world with this checking account that earns a whopping 4% APY on balances up to $3,000. But you must be an existing T-Mobile wireless customer to qualify.

T-Mobile logo

DCU Primary Savings Account

APY: Up to 6.17%
Interest compounding: Daily
Monthly fee: $0
Minimum opening deposit: $5
Minimum to earn interest: $0

Get a jump start on your savings with the DCU Primary Savings Account. It offers an unheard of 6.17% APY on the first $1,000 in your account. But the rate drops significantly after that.

La Capitol Federal Credit Union logo

La Capitol Federal Credit Union Choice Checking

APY: 4.25%
Interest compounding: Monthly
Monthly fee: $8
Minimum opening deposit: $50
Minimum to earn interest: $0

La Capitol Federal Credit Union is a Louisiana-based institution. Its Choice Checking account earns up to 4.25% interest. But you need least $1,000 in your account to qualify.

Affinity Plus logo

Affinity Plus Superior Market Account

APY: 2.02%
Interest compounding: Monthly
Monthly fee: $0
Minimum opening deposit: $0
Minimum to earn interest: $0

This money market account from Affinity Plus Credit Union is chock full of features. You earn a competitive 2.02% APY on balance up to $25,000. Plus, rewards points for every $1,000 you keep in your account.

Financial Partners Credit Union CD

Financial Partners Credit Union CD

APY: 2%
Interest compounding: Daily
Monthly fee: $0
Minimum opening deposit: $1,000
Minimum to earn interest: $1,000

Financial Partners is a California-based credit union offering an attractive five-year CD with a high APY. But it requires a minimum $1,000 deposit.

Pen Air Federal Credit Union

Pen Air Federal Credit Union Five-Year CD

APY: 2.4%
Interest compounding: Monthly
Monthly fee: $0
Minimum opening deposit: $500
Minimum to earn interest: $500

Pen Air Federal Credit Union is based in Pensacola, Florida. Its five-year CD has a high APY and allows for penalty-free interest withdrawals at any time. But it’s primarily open to active duty, retired military and civil service employees.

Hiway Federal Credit Union

Hiway Federal Credit Union 60-month CD

APY: 2.4%
Interest compounding: Monthly
Monthly fee: $0
Minimum opening deposit: $500
Minimum to earn interest: $500

Pen Air Federal Credit Union is based in Pensacola, Florida. Its five-year CD has a high APY and allows for penalty-free interest withdrawals at any time. But it’s primarily open to active duty, retired military and civil service employees.

Spectrum Credit Union 24-month Special Step Up CD

Spectrum Credit Union 24-month Special Step Up CD

APY: 2.2%
Interest compounding: Monthly
Monthly fee: $0
Minimum opening deposit: $500
Minimum to earn interest: $500

Spectrum Credit Union offers an attractive two-year CD with a low $500 opening deposit. It’s primarily open to California residents, but anyone can join when they become members of one of its non-profit partner associations.

Fitness Bank

Fitness Bank Fitness Savings Account

APY: Up to 2.10%
Interest compounding: Monthly
Monthly fee: $10
Minimum opening deposit: $100
Minimum to earn interest: $0

With the Fitness Savings Account, your interest rate is based on how many steps you take each month — not how much money is in your account. Simply connect the FitnessBank Step Tracker app to your FitBit, Garmin, Apple Health or Google Play app and get paid to walk. The higher your daily average step count, the higher your interest rate will be.

How we chose the best accounts

Sometimes you just want to know the highest rates available today — regardless of the account type, minimum balance requirements or monthly fees. That’s why we looked at the top checking, savings, money market and CD accounts from over 75 institutions and chose those with today’s highest rates.

What’s changed in 2020?

The Federal Reserve cut interest rates in March 2020, which sent savings rates plummeting across the board. The following accounts were originally on our list of best bank interest rates, but got knocked off due to changing rates:

  • MemoryBank Online Money Market rate changed from 2% to 0.50%
  • Sun East Max-Yield Money Market changed from 2.05% to 1.25%
  • BrioDirect High Yield Savings changed from 2.05% to 1.65%
  • Synchrony Bank five-year CD went from 2.15% to 1.65%%
  • Vio Bank High Yield Online Savings account changed from 1.95% to 1.75%
  • Discover five-year CD changed from 2.2% to 1.8%
  • Marcus by Goldman Sachs five-year CD changed from 2.3% to 1.9%

Compare today’s rates

Name Product Interest rate (APY) Fee Minimum deposit to open More info
PNC Virtual Wallet
2.00%
$7 per month
(can be waived)
$25
Read review
View details
A high interest savings, a short-term savings and a checking account, paired with digital money management tools – all working together to help you better manage your financial life.
Citi Accelerate Savings
1.85%
$4.50 per month
(can be waived)
$0
Read review
View details
This savings account offers no minimum deposit and a competitive APY in select areas.
American Express® Personal Savings High Yield Savings
1.60%
$0
$0
Go to site
View details
Enjoy no monthly fees and a competitive APY with this online-only savings account. Accounts offered by American Express National Bank, Member FDIC.
UFB Direct High Yield Savings
1.70%
$0
$100
Go to site
View details
Earn a competitive rate with a balance higher than $10,000.
HSBC Direct Savings
1.70%
$0
$1
Read review
View details
Get one of the highest interest rates available without high balance requirements or fees.
Barclays Online Savings
1.60%
$0
$0
Go to site
View details
Earn 20x the national savings account average with no fees or minimums.
Discover Online Savings Account
1.60%
$0
$0
Go to site
View details
Take advantage of a high-interest online savings account with no fees, no minimums and more.
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Compare up to 4 providers

Name Product 1-year APY 18-month APY 2-year APY 3-year APY 5-year APY
CIT Bank Term CDs
1.86%
1.85%
1.4%
1.3%
1.7%
Discover CDs
1.75%
1.75%
1.75%
1.8%
1.8%
Radius Bank CDs
1.55%
1.6%
1.7%
1.85%
2.2%
BBVA CD
0.7%
0.25%
0.4%
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Compare up to 4 providers

How do interest rates work?

Interest rates have a major impact on how your money will grow, and they’re constantly changing. In the early 2010s, average interest rates in the US dropped and then held steady at a low rate for several more years. We’re just now beginning to see interest rates climbing back up, which means that money in the bank will be able to accrue interest more quickly.

When interest is calculated, when it is deposited and if the account allows for compound interest will all be determining factors when comparing interest rates. Compound interest means that you accrue interest both on the money you put into the account and on the interest you’ve already earned.

How are interest rates calculated on my account?

Interest is calculated by this formula: Daily closing balance/365 x Interest rate/100″

If you are comparing high-interest savings accounts and wondering about the significance of having the interest calculated daily and paid monthly, it basically means you will earn more interest.

Check our compound interest calculator

How to get the best interest rates

Don’t stop at the advertised interest rate when making savings account comparisons. There are various points to consider that will help you determine which savings account is best for you:

  • The base rate. The standard interest rate is where your comparison should start. Check to see if it is variable or fixed and how it compares against other savings accounts.
  • Introductory rates. Some banks will offer an introductory rate on a savings account. Check to see for how long that rate is in effect, and if you need to meet any requirements in order to maintain it. Compare both this rate with the account’s standard rate if you can find a higher standard rate on another account, you could be better off in the long term.
  • Compound interest. Ideally you want a high-interest savings account where interest is calculated daily and paid into the account monthly. This allows you to grow your savings faster by being paid for interest that you have already earned.
  • Terms. Check to see if the interest rate is only applied if you are able to meet certain conditions, such as maintain a minimum balance or make a limited number of withdrawals.
  • Flexibility. Interest rates are predicted to keep going up for a while longer, which means that if you are locking in a CD account, look for an interest rate that isn’t going to be exceeded by those of online savings accounts in the next few months. Or choose a CD that lets you upgrade your interest rate or withdraw for an early exit to a better investment option.
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Things to consider when choosing an account

Pros

Interest rates are not the only important feature for a savings account. When making your comparisons check for:

  • Linked account. Some savings accounts need to be linked to a checking account in order to facilitate the transfer of funds. Check to make sure that by opening a savings account at a different bank, you can still use your current checking account to link them.
  • Introductory rates. An introductory rate on interest can give you a big boost toward meeting your savings goals.
  • Security. Ensure that the financial institution is insured by the FDIC so that you’re safe is something happens to the bank.

Cons

  • Fees and penalties. Certain monthly fees could apply to savings account products as well as penalties for making too many withdrawals. Read the fine print carefully to make sure that extra fees aren’t eating your savings.
  • Balance requirements. You might be expected to open the account with a certain amount of funds, or have to maintain a minimum balance in order to avoid fees.

Tax implications

Any interest earned on a savings account is taxable as income. This includes earnings on children’s savings accounts and CDs. However, you can claim deductions on expenses tied to earning the income. This can include account-keeping fees from the bank, management fees or financial consultations.

What are the risks?

You could easily not meet your savings potential by not weighing the type of savings account and the interest rate carefully. In order to avoid this, make sure that you are:

  • Choosing the right account. If you are savings towards a goal that is a few years off, you’ll get the highest return with a certificate of deposit.
  • Not mistaking an introductory rate for the standard. Check the advertised rate carefully, as this may just be the introductory interest rate. The standard rate is what will be applied after the introductory period ends.

What is a negative interest rate?

Bottom line

Finding the perfect savings account can feel overwhelming, but a high interest rate coupled with low fees will help your savings grow. Take your time to compare rates, balance requirements, linked accounts and your level of trust in the bank itself — and then open your account and start saving.

Common questions about interest rates

Image: Shutterstock

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