Having adequate savings for unexpected expenses can be one of the financial goals you have set for yourself. Putting your money in a savings account is one of the most effective ways to put it away for later use, protect it from loss, yet keep it in a place that is still easily accessible to you while also allowing you to earn interest on it. But with so many banks from which to select, how can you determine which one provides the highest rates of return on savings accounts? Let’s have a look at some of the FDIC-insured banks in Florida that provide interest rates for savings accounts in the next section so that we can assist you in making a decision.
How do interest rates work?
When you put money into a savings account, the bank will give you interest based on the total amount in the account. The bank is borrowing your money to lend to other customers; thus, the cost of that borrowing is reflected in the interest rate. The annual percentage yield (APY) is the amount of interest the bank pays on your account balance each year. If you put $1,000 in a savings account earning 1% interest, you’ll get $10 back after a year.
Let’s check out the savings account interest rates offered by some of Florida’s leading banks.
|List of Banks||APY||Min. to Earn APY|
|TD BankLocation: HERE||0.05%||$0|
|Centennial BankLocation: HERE||0.40%||$1|
|American Express National Bank||3.75%||$0|
|Citi Accelerate Savings||3.85%||$1|
|First Foundation BankLocation: HERE||4.50%||$1,000|
|* The rates listed here may have changed. Please confirm rates directly with the bank before opening a savings account.|
These are a few examples of the interest rates offered on savings accounts by some of Florida’s leading banks. Because interest rates fluctuate so frequently, it’s smart to check in with your bank on a regular basis to be sure you’re still getting the best deal.
Choosing a savings account involves more than just looking at the interest rate. When opening an account or accruing interest, some banks have minimum balance requirements, and others levy fees for specific types of transactions or services. Consider these criteria along with interest rates while shopping around for a savings account.
Still looking for a much higher interest rate than a savings account?
Invest in some Treasury Bills. Government-backed T-Bills (T-Bills) are currently offering the highest returns they have in over 15 years. Markowski Investments is currently offering a commission and fee-free period during which you can purchase T-Bills.