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5 Banks Now Offering Higher Returns on Savings Accounts

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After a long period in the doldrums, interest rates on savings accounts finally are rising again.

The Federal Reserve has raised its target federal funds rate a couple of times this year, and those moves are starting to have the traditional effect of causing banks to offer customers with savings accounts a better return on their money.

The Fed has indicated it will raise the federal funds rate several additional times in the coming months. So, rates on savings accounts may rise even higher soon.

But as of now, here are the new and improved rates at several banks that already have increased savings account returns this year.

Note that our list of rising bank rates is not exhaustive. There might be other banks that also have bumped up the return they are offering on savings accounts. You can by Money Talks News’ Solutions Center to search for a great savings account.

1. Ally Bank

Ally
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In mid-May, Ally wrote to customers to tell them it was hiking the annual percentage yield (APY) on its Online Savings Account from 0.5% to 0.6%.

Money.com reports:

“This is notable because it’s the first time Ally has changed the interest rate since December 2020 — and the first time it has increased the APY since January 2019.”

2. American Express National Bank

American Express
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The APY on American Express National Bank’s High Yield Savings Account is now 0.6%. In early January, the rate was just 0.4%, so the increase on this account is already substantial.

By comparison, the national average rate on savings accounts is a mere 0.07% as of May 16, according to the Federal Deposit Insurance Corp (FDIC).

3. Bask Bank

Smart man holding a piggy bank
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This bank offers the best return of any of those on this list, and it now gives you a 1.25% APY on its Interest Savings Account. That’s a leap from the 0.7% it was offering back in January.

Like all of the banks on this list, Bask Bank is an online bank. All of these banks also are FDIC-insured, meaning the FDIC insures your money — usually up to $250,000 — in the event that a bank goes under.

4. Marcus by Goldman Sachs

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The increase in the rate on the Marcus by Goldman Sachs Online Savings Account — from 0.5% to 0.6% — mirrors that of Ally Bank.

While these rising bank rates are encouraging, they pale next to the return you can get from trusting your money to Uncle Sam’s care. For more, check out “This Government Bond Now Pays 9.62% — Should You Buy?

5. Salem Five Direct

Retiree holding cash
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At Salem Five Direct, you can now earn 1.01% on the eOne Savings account. That is 61 basis points higher than the old rate, and a two-year high for the return on the account, according to DepositAccounts.com.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

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