This story makes a really good point, thanks for sharing it.
The average APY in US banks is still 0.5% despite much higher interest rates and inflation. My credit union offers 3% for their premium (high balance) savings.
this post was submitted on 07 Jul 2023
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I'm getting like 4% at Ally in just a standard savings account. No minimums. They also have some no penalty CD with no length of deposit requirement. Think that CD earns 4.5% or something.
I have a Capital One 360 savings account that's also around 4%.
There are banks that are giving decent returns on savings accounts, with no minimums. It's just that these typically aren't gonna be brick and mortars.
That all said, I do have to wonder how many people have the savings, the extra funds, to really take advantage of the higher rates. I'm lucky and fortunate that I'll make a few hundred dollars this year in interest. But that requires like $10k just "lying around" (this is my emergency fund). But 57% of American adults say they can't even afford a $1000 emergency expense. So even if their bank did offer these higher rates, they may not have the money in the first place. It takes money to make money, right?
Shop, use treasury direct, or a broker. Banks usually give crap rates.