Some people love rate-chasing (even though it’s not worth it), but these days, even looking is depressing. With interest rates at record lows and more people looking to save their money, banks have little to gain by providing high interest rates. While small banks can gain customers by offering higher rates, large banks with giant customer bases have little incentive to offer high rates.
Here’s a rundown of some popular banks along with their savings account interest rates (Annual Percentage Yield):
- SmartyPig: 1.35%
- Ally Bank: 1.00%
- ING Direct: 1.00%
- HSBC: 0.80%
- BB&T: 0.25%
- Chase: 0.10%
- Citi: 0.10%
- TD Bank: 0.10%
- PNC: 0.10%
- SunTrust: 0.05%
- Bank of America: 0.05%
- Wells Fargo: 0.05%
As you can see, the smaller banks are at the top offering the best rates, while the national banks who have been around for a long time have the lowest APYs.
To put 0.05% interest in perspective, for every $100 you have in an account, at the end of the year you’ll earn a total of 5 cents. 5 freaking cents! So for $1,000, you make 50 cents over the course of a year!
To me, these interest rates are a little upsetting. How can we save money for future goals if we’re losing money (compared to inflation)?
Readers, do low interest rates make you angry? I wasn’t around when they were high (4 or 5%). Is it depressing seeing how far they’ve fallen?