If you are looking for a home for your cash, and want to earn much over 0%, good luck.
But some insider tips from The Wall Street Journal might help point you in the right direction:
“An analysis of more than 8,300 banks and credit unions conducted for The Wall Street Journal shows that smaller banks often offer better rates than giant banks, while bigger credit unions often beat smaller ones. Online banks, meanwhile, are most competitive in savings and money-market accounts.”
So, if you are looking for the best CD rates, try your credit union or a smaller, local bank. For money market accounts, search among the online banks for the best deals.
Whether you opt for a brick-and-mortar or online bank protected by FDIC, or a credit union insured by the National Credit Union Administration (NCUA), you’re in good hands. So if you are web-savvy, make sure to check out the online bank deals to see if they beat your corner bank. And don’t shy away from NCUA-covered credit union offerings; many of our clients have turned up phenomenal deposit and loan deals from their local credit union.
Financial Tip: Do shop around for the best deal, but don’t hold your breath for better interest rates on your bank deposits or CDs. Interest rates are expected to stay low for some time, given the economic weakness. Not only is the Fed keeping rates at rock-bottom levels, but banks don’t have much use for your deposits until loan demand perks up.