Savings account interest?

[lrrifleman]

Greetings! Perhaps I'm stuck in the 1970s when banks paid reasonable interest, but ...

This morning, I checked the savings account that I recently opened with Wells Fargo, and I was in a state of shock! My 30 day deposit of $1000 garnered the grand sum of $0.01 in interest!

Can anyone recommend a bank that actually pays better interest?

As always, thanks in advance for your help!

 

[s&wchad]

I suggest putting your savings into a Fidelity Government Money Market account. Rates are close to an insured no-call CD, but you have access to it any time without penalty. Rate were over 5% last year, but are now at 4.03%. I believe interest accrues weekly.

You would have earned between $40 and $50 if you had that $1000 in their account for the past year. You would have earned about $4 over the past 30 days. That's not a lot, but it's better than a penny!

 

[glenwolde]

I use Ally Bank. Currently 3.8%. But mostly roll short term treasuries at my brokerage.

 

[DWalt]

It is possible to get term CDs with interest rates over 4%. But your money is locked up for whatever the term is. There are many investments which have yields well over 5% that are riskier, but they are not insured. Regular “savings” and checking accounts at banks and S&Ls pay essentially nothing in the US. There are Federal treasury funds available through brokerages with 4%+ yields which are fairly safe, but still uninsured. Personally, I invest in nothing that does not have less than a 6% yield.

 

[Narragansett]

I am sure you have a Santander ( Sovereign ) bank in NJ. I am still getting 4.41% on Money market accounts, but a sizeable deposit.

Banks will give you nothing, if you do not demand it.

If you deal with Citi, JPM, Chase, Wells fargo, BOA etc. inherently you will get nothing. They must not borrow from the Fed. Reserve, and have their own funds to meet their obligations. Otherwise, it would be cheaper to pay you 4% than borrow for 5 %.

 

[Truckman]

PNC was paying me 4.0% last month, this month 3.65%...Next month who knows......Ben

 

[smoothshooter]

Put your money in CD’s and other financial instruments.
Savings accounts are barely worth having any more.
Have at least one CD other account you can get money out of on short notice without a penalty.
If you can afford it, get in the habit of keeping a few thousand dollars in cash in your house (hidden/locked up) or some other safe place. A safe deposit box maybe?
Pay for stuff in cash when practical to minimize having to deal with third parties in the banks.

 

[Empe]

I've had an on line account with Capital One for years and have always had good service with them .
Savings account pays 3.80% at present. Their CD's are at 4.00 % ...12 months.

 

[Bald1]

Bank on Buffalo is still paying me 5.30% on my checking account. I keep expecting it to go down but it hasn’t. I closed out a 6.25% CD in July at a different bank.They offered me a six month rollover at 4.70%. I said no thanks.

 

[lkabug]

I too remember those days of high interest rates for Savings accounts and CD's.
I also remember the 14% mortgage rates of the same era.

 

[TJm15.38]

I suggest putting your savings into a Fidelity Government Money Market account. Rates are close to an insured no-call CD, but you have access to it any time without penalty. Rate were over 5% last year, but are now at 4.03%. I believe interest accrues weekly.

You would have earned between $40 and $50 if you had that $1000 in their account for the past year. You would have earned about $4 over the past 30 days. That's not a lot, but it's better than a penny!

Agree. My Fidelity experience has been highly favorable. They have my IRA, and individual non-IRA money market account that I have used on my first Required Minimum Distribution (RMD) and I also have a rewards credit card with Fidelity. I made more money in interest than I expected last year, but as the OP said, the rates have dropped since then.

 

[phulklip]

I'm in Pa. but I most of my banking with Community Wide FCU in South Bend, In.
High rate savings paying 3.93 apr (you can only take out monies the first five days of the month)
6 month CD 4.55 apr
12 month CD 4.36 apr
Anyone can join for a $5.00 fee
comwide.com

 

[smoothshooter]

One other thing I would recommend is ABSOLUTELY HAVE NOTHING TO DO WITH BANK OF AMERICA on anything.
For all kinds of reasons.

 

[smoothshooter]

I too remember those days of high interest rates for Savings accounts and CD's.
I also remember the 14% mortgage rates of the same era.

That’s the kicker.
The when savings account and CD rates go up, loan interest rates go up even higher.
Me and the wife got lucky. In 2018 we got a 30 year house loan at 2.38% (Fixed). That’s only a dream for borrowers now.
We could pay it off tomorrow if we wanted to, but we take the money we are saving on home loan interest and plow it into Roth IRA, CD’s and existing Schwab accounts mutual funds.
We are not wealthy, but we are doing okay. I retired 15 July 2024.
One of the best things I ever did.

 

[Denverd0n]

Another vote for Ally Bank. I've been using them for 7-8 years and have never had any problem. There are probably other places where I could squeeze out another 1/10th of a percent or so, but I'm very happy having my cash with them.

 

[Rule3]

Greetings! Perhaps I'm stuck in the 1970s when banks paid reasonable interest, but ...

This morning, I checked the savings account that I recently opened with Wells Fargo, and I was in a state of shock! My 30 day deposit of $1000 garnered the grand sum of $0.01 in interest!

Can anyone recommend a bank that actually pays better interest?

As always, thanks in advance for your help!

 

[smoothshooter]

Bank on Buffalo is still paying me 5.30% on my checking account. I keep expecting it to go down but it hasn’t. I closed out a 6.25% CD in July at a different bank.They offered me a six month rollover at 4.70%. I said no thanks.

But NY taxes, being relatively high, will eat up more of your earned interest income than other states.

 

[Dave_n]

One other thing I would recommend is ABSOLUTELY HAVE NOTHING TO DO WITH BANK OF AMERICA on anything.
For all kinds of reasons.

Fully agree. My wife's late aunt had what she thought was a revocable trust fund set up legally in FL. After she died (at 93), it took 10 months to even get close to sorting it out. It turned out that the "Trust Fund" was simply a regular savings account delivering all of 0.2% sometimes!! My wife met with the bank in Eastern FL and was simply told that she could not cash it in as they did not have enough funds at the branch to do anything!! As I said above, 10 months arguing with American until we were able to even begin to sort out the problems. Moral, as mentioned above "remove all monies from BoA as fast as you can!!" Dave_n

 

[Narragansett]

PNC was paying me 4.0% last month, this month 3.65%...Next month who knows......Ben

My bank tried that rate drop thing with me. I told them if the FED drops a quarter of a point, I do not expect to move any more than that, or I will move my money and you can borrow from the FED at 5%. They are not Gods. they really do want your money at a discounted rate below prime. They just won't admit how badly they want it

 

[johngalt]

Not saying this condition applies to any of the banks mentioned so far, but some are offering higher than industry rates because they are failing and are desperate for the deposits.