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The Federal Reserve is trying to keep inflation down by raising interest rates. In other words, it’s a great opportunity to get money out of your savings account.
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See also: GOBankingRates’ Best Savings Accounts of 2023
But not all savings accounts are created equal. Some offer higher interest rates than others. GOBankingRates highlights some of the best APYs on savings accounts out of the box.
Want to get higher interest rates? In short, you may be able to ask your bank for a price increase. Here’s what to do.
Do Your Research and Consider Online Only Banks
“Before you go to your local bank or call customer service, do your research online and see what rates are offered in the market,” says CFP, Money Coach and Founder of Wealth Roadmap Dr. Ohan Kaikchan, a researcher, said:
It’s also worth investigating online-only banks that can afford to offer higher interest rates, as they don’t have to cover the high overhead, administration, and infrastructure costs of brick-and-mortar banks.
“Many large banks still offer yields of around 0.2% per annum, but there are also smaller or online banks now offering savings rates of over 4% per annum,” Kayikchyan said. . “So my first tip is to do your research and compare rates before you finally decide where to keep your cash. It’s the money you have.”
maintain greater balance
Note the fine print. Some banks, such as Frost Bank Savings, pay higher APY for more cash. Keeping more cash in a savings account (for example, from a checking account) can be useful if you want to earn higher interest rates.
“Many banks will pay higher yields on all balances,” Kaikchan said. “Ask your bank to explain your balance requirements. Do not confuse tiered rates with promotional or so-called lure rates. After (sometimes just a few months), interest rates return to low levels.These bonus rates are simply an incentive for new customers to open accounts.Like any other financial transaction, interest rates You need to read the fine print explaining the terms.”
Consider a money market account
We recommend that you consider moving your money from a traditional savings account to a money market account.
Landmark Wealth Management, LLC Managing Partner Joseph M. Favorito said: “The financial markets are not technically FDIC-insured savings accounts, but defaults are extremely rare. It is always possible to put savings into a money market that only invests in.
“Today, it yields over 4%, better than most savings accounts. Invested in the Treasury, you can hold $250,000 or more in cash and not worry about FDIC restrictions.” .”
to shop
Loyalty may be important to you, and changing banks may be a hassle.
“Banks, online lenders and credit unions all offer different savings rates,” said Tommy Gallagher, former investment banker and founder of Top Mobile Banks. “By comparing the rates of different institutions, you can find the best one for your needs. To ensure you get the best deal, he gets quotes from at least two or he three banks. please.”
Call your bank and ask for the best interest rate
don’t be shy. Pick up the phone and call your bank. After all, you are the customer.
“Banks now want to keep people’s money. And because of inflation, people are hunting for the best deals,” said financial advisor and financial planning expert at Offit Advisors. One Rachel Burke said. “So if you want to get the best savings rate, call and ask for the highest yielding savings rate.
“Be sure to ask how often interest is paid, because that makes a big difference. Also make sure you know the terms, such as keeping accounts to a minimum. If you’re comfortable with keeping your money tied up, ask for CD rates too, I’ve seen these go up as smaller banks and credit unions try to keep your money. I came.”
(successfully) threaten to take your money somewhere
It may seem like a low move, but money speaks. If you tell your bank that you are moving to another bank that offers a higher APY, your bank may be forced to match what your competitors offer.
“In many cases, current banks that pay lower savings rates than their competitors will agree to pay more if they decide to move the funds,” Kayikchyan said. “Tell them what you’ve researched and name a competing bank that currently offers a better savings rate.”
Manners are important here. We want to maintain a courteous and positive relationship with banks.
“Always ask what your current bank can do to maintain the relationship with them,” Kayikchyan said, adding that you should make a habit of checking with your bank frequently for better APY and other deals. “You can schedule events on your calendar and ask them often.”
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