Should I switch banks for better interest rates?

Seeking Advice
1

I’ve been with Citibank for a few years and recently opened a CD savings account with a 4.75% APY. However, I noticed that the interest is being transferred to my checking account, which means I’m not benefiting from compound interest. It seems I’d be better off with a high-yield savings account that offers compound interest and allows for monthly contributions. The issue is, the high-yield account I found offers just 0.09% APY, which is extremely low. Other options, like Discover and Capital One, offer over 4% APY. Given this, it might be worth switching, especially since I’m not paying fees and the service has been good so far. I’ve considered Discover due to my existing accounts with them, but they don’t have physical branches, which might be a concern. What do you think about banks and credit unions, and is switching a reasonable option?

2

Hey Alisha, You don’t need to switch banks. Just invest your money where you get the best return. I keep my day-to-day accounts with a local bank, but my investments are with two different banks for better returns.

3

Hello, Citi offers an Accelerate Savings account at 4.3%, which is higher than Capital One or Discover. Just open that account to keep things simple. Previously, Citi offered a $300 bonus for opening an Accelerate account, so check for any promotions before opening it for free. If you don’t have $25K+ to qualify for bonuses with Discover or Capital One, it’s not worth switching for a slightly lower interest rate.

4

Hi, If interest rates are your top priority, switching could be worthwhile. However, if other factors matter more to you in your banking accounts, the decision might vary based on your specific needs and preferences. There’s no one-size-fits-all answer here.

5

Hello there, I will recommend that you should consider setting up a TreasuryDirect account with the government for the best interest rates. Banks aren’t the best option for earning interest on your accounts.

6

Hello, The yield on high-yield savings accounts might differ by location, though it’s unclear why. Currently, I have a Citi Accelerate Savings account that offers a 4.30% APY. Previously, Citi’s savings accounts were designed to lead customers to lower-yield options, but it’s uncertain if that approach still applies.