Find your best bank account
Low or no-fee checking accounts
High-yield savings accounts
Competitive certificates of deposits (CDs)
Bank with the best–earn more in interest and pay less in fees
Your bank accounts are essential to your finances, so it’s important to find the bank or credit union that makes the most sense for you. Accounts that earn interest, like savings accounts and certificates of deposit (CDs) are designed for short-term savings. Checking accounts keep your money easily accessible so you can manage everyday banking transactions.
High-yield savings account and CD rates
High-yield savings accounts and CD accounts offer higher interest rates than regular savings accounts, meaning you can earn more on the money you deposit. High-yield savings accounts tend to work similarly to regular savings accounts (with few restrictions apart from transaction limits or other rules). CDs typically require you to leave your money in the account for a certain period (anywhere from a few months to several years) in exchange for a higher interest rate.
Online banks have generally been much more aggressive with their deposit rate increases than brick-and-mortar banks in recent years. The interest rate advantage of online savings accounts over brick-and-mortar savings accounts is the highest it has been in more than a decade.
How to open a high-yield savings account without switching banks
The easiest way to benefit from today’s higher rates is to open a high-yield savings account at an online bank. You don’t have to completely switch banks to do this! You just need a small deposit to open a high-yield savings account at an online bank, which you can easily link to your existing checking account.
If you already have a high-yield savings account at your current bank, don’t assume that the rate is still competitive. Make sure you compare the rate of your existing account with rates of other online banks.
Compare CD rates
CDs can offer higher interest rates than savings accounts, but you’ll need to leave money in the account for a certain amount of time until they mature. Short-term CDs may look more attractive, but long-term CDs may be a smarter choice, even if they don’t have higher rates, when interest rates start to fall. Once you open a CD, the rate is locked until maturity, and that can be beneficial when rates are falling.
If you have CDs that are nearing maturity or if you’re preparing to open new CDs, shop around for the best CD rates. Banks hope that you just let your CDs automatically renew. In many cases, the new rate from a CD renewal will be much lower than what you could get elsewhere.
Compare checking account perks
Checking accounts help you manage everyday banking transactions such as paying bills, withdrawing cash from ATMs or making purchases using a debit card.
Interest rates are generally much lower on checking accounts than on savings accounts. If interest rates are a priority, look for high yield checking accounts. These typically require monthly debit card usage thresholds to qualify for the high interest rate.
Checking account fees can be costly, but many banks offer free checking accounts with no monthly maintenance fees and free overdraft transfers. To avoid ATM fees, look for banks or credit unions with large ATM networks.
How banking institutions protect your deposits
Many financial institutions have deposit insurance through the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA). This ensures that the money you deposit in your bank accounts (up to $250,000 per institution) is protected, even if the bank fails. Online banks with FDIC insurance are just as safe as FDIC-insured brick-and-mortar banks.
Sometimes banking institutions offer perks, sign-on bonuses and waived account fees to stay competitive. Interest rates may change over time, but keeping your money in FDIC-insured deposit accounts helps keep it safe — and you can earn interest on the balance, too.
