This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Best Interest Rates Offered by Little Guy

NEW YORK ( TheStreet) -- The best rates for certificates of deposits (CDs) and checking and saving accounts are offered by small banks often based in the middle of nowhere -- or literally nowhere, as in, the Internet.

JPMorgan (JPM - Get Report), Citigroup (C - Get Report), Bank of America (BAC - Get Report), Wells Fargo (WFC - Get Report), Regions Financial (RF - Get Report) and Fifth Third (FITB - Get Report) don't come close, even though taxpayers gave tens of billions to the biggest banks during the financial crisis.

"The large banks are swimming in deposits," says Bankrate.com senior financial analyst Greg McBride. "Consumers are still risk-averse, so a lot of money has flowed into banks with no effort on their part. But smaller banks that have a need for deposits -- what is the most effective way for them to build deposits? Build more branches? That's expensive. Make acquisitions? That may not work. Compete toe-to-toe with the banking heavyweights in marketing? No. They pay attractive yields and market themselves over the Internet."

CDs are yielding, on average, 0.71%. The picture doesn't get much brighter for checking (0.13%) or savings (0.2%) accounts.

So where can you get the most bang for your buck? Consider smaller banks, says McBride.

In fact, banks offering the highest yielding accounts -- we're talking 4% -- include American National Bank in Nebraska and Iowa and Capital Bank in North Carolina. These reward checking accounts, however, require that you meet stringent requirements, like using your debit card 10 times a month, receiving statements online and having one direct deposit.

For better rates, be willing to do online banking. "Online has broken down a lot of the geographical barriers," says Richard Barrington of Money-Rates.com. "Before, you were usually limited to what had branches near your town. Now you can access more products online. There could also be higher incentives for online banking."

SmartyPig.com, for example, will offer starting May 19 2.15% APY to online savings accounts holding less than $50,000. And the incentives aren't necessarily calculated in basis points. PerkStreet.com is wooing customers with 2% cash back for six months, eventually lowering that to 1% for a $25 account.

Still, if you're on the hunt for interest and seek a bit of name recognition, here are some of the best rates out there right now. Just remember: They are subject to change on a daily basis so call your local banks and look out for sites like Bankrate.com and Money-Rates.com.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BAC $15.42 0.06%
C $51.19 -0.37%
COF $78.51 -0.42%
FITB $19.09 1.46%
JPM $59.54 -0.12%

Markets

DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs