As far as I know Bank of America is still paying me 0.01%, so I only keep the minimum in there.
My paychecks from my second job go directly to Navy Federal, but as far as I know they are still paying me 0.25%.
People always tell me "Better than nothing!" about negligible things, but I had $6,500 in there, and I would have earned $16.25 in interest in a year.
Yes, that is better than nothing, but I have been able to do better for a long time, I just didn't care.
I have found weird banks that give you 5% or more, but only on $1,000, and required a bunch of work.
I have found banks that offered a couple times as much interest, but it seemed like the bank with the best interest rate varied from month to month, and I didn't feel like juggling another account in order to be able to buy myself another movie ticket or two each year.
Well, interest rates are crazy, so banks are offering better rates now, right?
Well, some, and of course not better than the inflation rate, but you can lose less money here while you save up enough to do something real with it?
Bankrate shows 5 banks offering 2.25% interest or more.
Only Citizens requires a minimum balance.
None of them have monthly fees.
UFB Direct offers 2.85%, but Bankrate only rates them 3.6 stars, complaining that their rates aren't competitive, and they only offer savings and money market accounts.
Clearly that isn't updated because UFB Direct has the highest rate.
Bask Bank offers 2.75% and is rated 5 stars, CIT Bank offers 2.4% and has 4.6 stars, Citizens Bank offers 2.35% and despite requiring $5,000, is rated 4.8 stars.
Finally, Synchrony offers 2.25% with 5 stars.
There are 5 more that offer 2% or more.
Marcus, by Goldman Sachs says "Earn additional 1%. Terms apply."
I didn't see that until after I opened an account elsewhere.
I am in some kind of limbo with UFB. When I clicked the button to open an account nothing seemed to happen. I tried twice more and then tried in another browser, but it said that I already had an account.
I couldn't log into that account.
My $6,500 in UFB would accrue $185.25 in a year, unless the interest rate changes.
That is entirely possible.