Ever since the Federal Reserve first dropped interest rates to barely above 0%, savers have lamented the lack of savings accounts offering a decent return.And now that the Fed has announced the target rate will remain between 0.0 and 0.25% for at least the next three years, saving money might feel pointless to many.
Luckily, however, Go Banking Rates has surveyed the best savings account rates from thousands of banks and credit unions in the United States to find a total of 57 accounts with a rate of .75% or higher.
Best Savings Interest Rates — Findings
Credit unions have established themselves as the source for low fees and higher rates in recent years, and this study confirms this is definitely the case. Surprisingly, though, of the 57 institutions in the top savings rates list, only 32 — or a little over half — are credit unions. The majority of the remaining 25 savings accounts are offered by community banks, as well as a handful of national and online banks.
Making the top of the list for having the best interest rates on savings is Houston Police Credit Union with an impressive rate of 1.51% APY. Illinois National Bank tied for first place, also offering 1.51% APY, followed by eight institutions providing a savings account interest rate of 1.00% APY and up.
While the top savings account interest rates are spread out throughout the country — even Alaska and Hawaii offering up a couple of top rates — most of the institutions on the list are clustered near the East Coast. Luckily, there are several online banks offering competitive savings rates as well, which means depositors can take advantage of higher-than-average returns regardless of where they live.
Best Savings Account Interest Rates and Locations
How Are Top Savings Interest Rates Determined?
Go Banking Rates is currently the only source of truly local rate information — interest rates are manually collected from thousands of financial institutions throughout the United States, including community banks and credit unions, as well as online and national banks. Go Banking Rates currently features over 4,000 banks and credit unions in its Rates Table, offering the most comprehensive database of savings and CD rates available today.
The savings account rates used in this study are accurate as of September 28, 2012. Please note that interest rates are subject to change at any time in the future — anyone who chooses to open a savings account from any of the above mentioned institutions should verify rates with the individual bank or credit union before applying.
See Also: 9 ways I got my finances back on track >
Business Insider Emails & Alerts
Site highlights each day to your inbox.