Best Bank Rates

At first glance, even the best bank rates seem pitiful if you are considering savings accounts. People who remember how high interest rates were for savings accounts and CDs in the 1980s will be shocked to discover than instead of 9% or 12% interest, they now can be lucky to find something above 1.5% interest. These bank rates apply to Savings, CDs or Money Market accounts. It doesn’t matter if you have over $100,000 to save; the rates remain at the same lows. All consumers can wish for is that the economy picks up so rates can rise, but that has its alter ego problems with rising rates for borrowers at the same time.

To offset the shock of low interest rates, banks may offer a small cash bonus on interest earned, or free checking with savings accounts. They must do something to encourage savings to rise against the consumer’s will to buy products instead of stashing away their money in savings accounts. Automatic transfers to savings, free gifts, free money and other promotional tactics are used to encourage customers to open new savings accounts. If banks do not generate savings accounts, they have no money to work with to earn money by lending.

Bailed out banks are charging borrowers more while paying savers less because they are more concerned with repaying their debt than satisfying customers. Better savings rates are found on long term CDs, such as 7 year CDs that pay a little above 3% interest. In 2009, Ally bank, which formerly was GMAC, offered a 12 month CD with 2.80 APY and required no minimum deposit as part of their long time policy of putting customers first.

Some banking institutions, like ING Direct, are offering their checking and savings customers bonus cash to open new savings accounts and cash bonuses on checking card purchases. Others have different incentives for attracting investors, like higher percentage bonus rates for a limited period of time. Bankrate.com is still a quality website to go to for locating the best bank rates and offers for savings, checking, CDs, money market accounts, mortgages, credit cards, debit cards and other financial tools. While other comparison websites have some trouble keeping up with current rates, Bankrate.com is on top of the picture with current information.

On their website, Bankrate.com lists financial products in tables that are easy to use for comparison of rates. For example, 1 yr CD information includes the name of the institution, the APY percentage rate, the interest rate and compounding policy, minimum deposits, and there are customer comments to read.

Online banks are another source for low interest loan rates and high interest savings rates. While browsing online, check out comparison mortgage rate websites as well as banking websites for advantageous rates. Where loans are concerned, having an excellent credit record will pay off with lower rates for loan products. One more creative way to get the best bank rates is to negotiate with your own bank. Ask; you may receive.