Yesterday, I had a LIVE Chip’s Money Tips session (lunch) with a buddy. He had the same question that a couple readers, nay, FANS of Chip’s Money Tips emailed this past week. After answering him, and emailing them, I thought, “If only there were a way to get this information out to the world in one fell swoop. Hey Numb Nuts, don’t you have a website that does that?” And so, a post is born.
If you have some cash sitting around in a savings account at your bank down the street, you probably are not getting much interest. Brick-and-mortar banks give you virtually zero interest. NOTHING.
Screenshots below taken today from Bank of America, Chase, and Wells Fargo show .01% all the way to .06%. That is NOT 1%-6%. They are paying you 1/100 of 1% to 6/100 of 1%. Virtually nothing.
Your cash needs to be in a High Yield Savings Account online. Yes, ONLINE. Yes, it is safe. Yes, it is FDIC insured. I’m currently getting 4.2% in LendingClub.com’s high-yield LevelUp Savings account. 4.2% is 419 TIMES HIGHER than .01%.
If you are wont to do a deep dive on rates, and other options for the best places to stash your extra cash, check out DepositAccounts.com. Before I renew a CD or wanna go rate shopping for a savings account that pays the highest interest, that’s where I go. I also try the Google machine – for funsies.
A few things to keep in mind:
- Your best rates will be at an online bank – not your brick-and-mortar bank down the street. That’s okay! Don’t close your existing accounts. Once you find a high-rate online savings account, you will fund it from your existing checking or savings account at the brick-and-mortar bank via the online.
- According to Federal law Regulation D, you are only allowed six withdrawals or transfers per month from a savings account. Plan accordingly. It is a savings account, not a checking account.
- If you are super cynical (like I can be), you can confirm that your chosen online bank is FDIC insured here.
I’m a rate-chaser from way back. I have or have had online savings accounts at over 20 different banks. High Yield online savings accounts are safe, people!
Today’s (10/15/25) savings rates at a few big brick-and-mortar banks:
