Compare bank interest rates online

How do interest rates impact me?

There are two types of interest rates:

• APY. Annual percentage yield is the amount you earn per year on your savings. A high APY will help your savings grow year over year.
• APR. Annual percentage rate is the amount you pay on debt. A low APR will help you save money on your mortgages or loans.

Interest rates from banks vs. credit unions

Banks are for-profit businesses, while credit unions operate as nonprofits. A credit union is owned by its members, all of whom have something in common. For example, there are credit unions specifically for teachers or only for retired military members.

While this can sometimes mean more competitive interest rates, both on savings products and loans, that isn’t always the case. Large credit unions can operate like big banks, using high loan rates to help pay for growing overhead costs. Smaller credit unions can use money earned from interest to give back to the community rather than sharing it with members — making them altruistic, but not financially competitive.
Find out how much you can earn with our savings calculator

Brick-and-mortar banks vs. online banks

Online banks tend to have the most competitive interest rates, but you don’t get the same personalized service you would in a branch. All reputable online banks will have a number you can call for help, but they’re usually not as convenient as just walking into a branch.

The Big Four

Chase, Bank of America, Wells Fargo and Citi are collectively known as the “Big Four” because they’re the largest and most recognizable banks in the country. If you live in a metropolitan area, there’s probably a branch of at least one of these banks within a mile, making them the most accessible option.

When it comes to interest rates, though, they’re the least competitive. Savings accounts and CDs at Big Four banks generally have APYs at or below the national average. Loan rates are similarly unfavorable. Here are some examples of the rates for popular products:

Online banks

Online banks, like Synchrony, CIT Bank, BBVA and Ally Bank, generally have the best rates — often by a long shot. You can’t walk into a branch for help, but the tradeoff is you can earn significantly more — sometimes double or even triple — on savings accounts and certificates of deposit. And loan rates are more competitive, too.

At the time of writing, a 30-year fixed rate loan from Ally comes with a 4.199% APR, compared with 4.733% APR from Chase. For a $250,000 home, that works out to an $80/month difference on your monthly payments and $28,498 over the life of the loan. Here are some examples of the rates for popular products:

Hybrid banks

Some major banks, like Capital One, HSBC Direct, Marcus by Goldman Sachs, and Barclays, operate online. They give you the security of banking with a big name and the freedom of banking online. They offer rates competitive with other online banks. Here are some examples of the rates for popular products:

Bottom line

An online bank will give you the most bang for your buck, but you’ll have to give up access to coffee in the bank lobby and a friendly teller who knows you by name. If you want to build your savings but are a little nervous about going with on online bank, consider using a major bank with online savings and checking options.

Frequently asked questions

• How can I tell if an online bank is safe?

  Do your research and find out if the bank is insured by the Federal Deposit Insurance Corporation, or FDIC. Any deposit under $250,000 at an FDIC-insured bank is backed by the US government, meaning your savings are safe.

• What savings product is right for me?

  If you need access to your money for emergencies, a savings account is your best option. However, if you can set your money aside for a fixed term, consider a certificate of deposit to get the best interest rate.

• What should I look for in an online bank?

  If you’re thinking about opening an online savings account or checking account, look for FDIC-insured banks with at least one way to contact an actual human if you need help. Check reviews online to see what other customers are saying, call the helpline to see if someone picks up and look into how easy it will be to access your money when you need it. For example, can you withdraw your money from an ATM? If not, how long does it take to transfer your money to an account where you can?

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