The Federal Reserve continues to steadily raise its target range for the federal funds rate, and that has motivated banks to offer rates on savings accounts that were unthinkable not so long ago.
To be sure, the average savings account rate is a paltry 0.24%. But if you know where to look, you can get a rate of 4% or more.
Following are some banks that are leading the way in offering better savings account rates to customers.
While these rising bank rates are encouraging, they pale next to the return you can get from trusting your money to Uncle Sam’s care. For more, check out “This Savings Bond Now Pays Nearly 7% — Should You Buy?”
Note that bank rates can change fast following Fed rate hikes. Also, our list of rising bank rates is not exhaustive. There might be other banks that also have bumped up the return they are offering on savings accounts.
So, stop by Money Talks News’ Solutions Center to search for a great savings account.
CFG Bank
Account name: High Yield Money Market Account
Current annual percentage yield (APY): 4.05%
CFG Bank is a Baltimore-based bank founded in 1927. The minimum deposit to open the High Yield Money Market Account is $1,000.
Like all of the banks on this list, CFG Bank is FDIC-insured, meaning the Federal Deposit Insurance Corp. insures your money — usually up to $250,000 — in the event that a bank goes under.
Bask Bank
Account name: Bask Interest Savings Account
Current APY: 4.03%
Bask Bank introduced America’s first online-only savings bank in the U.S. through Texas Capital Bank in 1999.
The bank says there is no minimum balance requirement with the Bask Interest Savings Account.
Merchants Bank of Indiana
Account name: Money Market Account
Current APY: 4.08%
Merchants Bank of Indiana has its headquarters in the city of Carmel, Indiana. To open this Money Market Account, you need to deposit a minimum of $50.
Valley Direct
Account name: Valley Direct High-Yield Savings Account
Current APY: 4.0%
Valley Bank has been serving customers for more than 95 years. The bank has branch locations across New Jersey, New York, Florida and Alabama. Its main branch is in Passaic, New Jersey.
To open this account, you need to deposit a minimum of $1.
Salem Five Direct
Account name: eOne Savings
Current APY: 4.1%
Salem Five Direct was founded in 1855 in Salem, Massachusetts. It claims the honor of being the first bank on the internet, way back in 1995.
To open this account, you need to deposit a minimum of $10.