3 Steps to Take if Your Bank Isn’t Paying You Enough Interest

Most products on this page are from partners who may compensate us. This may influence which products we write about and where and how they appear on the page. However, opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain. This page may include information about American Express products currently unavailable on Slickdeals. American Express is not a partner of Slickdeals.

Interest rates have been in the news a lot lately thanks to the cost of borrowing getting more expensive. Yet there’s another reason interest rates have been dominating the headlines. When the Federal Reserve increases the federal funds rate to fight inflation, many banks end up paying higher interest rates to their customers. 

Some banks are offering higher annual percentage rates (APYs) than others, so many consumers are evaluating whether they’re banking with the best financial institution for their needs. If your bank isn’t paying you enough interest, check out these three tactics might help your savings reach its full potential.

Recommended High-Yield Savings Accounts

Bank Account	APY	Features	Learn More
UFB Direct Secure Savings Account Open Account	5.25% More Info UFB Direct breaks balances into five tiers, but, currently, there is only one interest rate.	No minimum deposit No monthly fee	Open Account
SoFi Checking and Savings Open Account	0.50% - 4.60% More Info Customers earn 4.60% APY on savings balances when they set up recurring monthly direct deposit of their paycheck or benefits provider via ACH deposit. Alternatively, deposit at least $5,000 each month to earn 4.60% APY on your savings balance. Checking balances earn 0.50% APY	No minimum deposit No monthly fee	Open Account
CIT Bank Platinum Savings Account Open Account	5.05% More Info Earn 5.05% APY on balances over $5,000. Balances of less than $5,000 earn 0.25% APY. Annual Percentage Yield is accurate as of July 27, 2023. Interest rates for the Platinum Savings account are variable and subject to change at any time without notice.	$100 minimum deposit No monthly fee	Open Account
CIT Bank Savings Connect Account Open Account	4.65% More Info Annual Percentage Yield is accurate as of July 27, 2023. Interest rates for the Savings Connect account are variable and subject to change at any time without notice.	$100 minimum deposit No monthly fee	Open Account

1. Compare Rates and Switch Banks

iStock

If you’re trying to earn higher interest rates on the money you have in savings, it’s a good idea to research the rates other financial institutions are offering their customers.

According to the Federal Reserve, the average APYs in October 2023 were:

• Savings accounts: 0.46%
• Money market accounts: 0.65%.
• Certificates of deposit: 0.22%-1.79% (depending on term length)

However, many of the best online banks and other financial institutions offer interest rates that far exceed the national average.

The right account for you depends on the APY, but also on your financial needs:

• Best CDs: Great if you know you can lock up your funds for a set period of time in exchange for a fixed interest rate
• Best high-yield savings accounts: A good fit if you want flexibility to withdraw money from time to time and don't mind if the APY fluctuates
• Best money market accounts: A nice option if you want a mix of high APY and some benefits of a checking account.

The interest rates a bank or credit union offers aren’t the only details to pay attention to when you’re considering a new account. also review fees, customer service and other features.

Recommended Bank Accounts

Here are a few well-rounded accounts that are worth a look. Be sure to shop around and consider the factors that are most important to you before you decide.

CIT Bank Platinum Savings Account

Open Account

Member FDIC.

• Our Rating 4.5/5 How our ratings work Read the review
• APY5.05% More Info

  Earn 5.05% APY on balances over $5,000. Balances of less than $5,000 earn 0.25% APY. Annual Percentage Yield is accurate as of July 27, 2023. Interest rates for the Platinum Savings account are variable and subject to change at any time without notice.

• Minimum
  Deposit Required$100
• Intro Bonus N/A

The CIT Bank Platinum Savings account offers one of the top APYs on the market right now, and CIT's flexible transfer options make it easy to access your money. So long as you're able to consistently maintain an account balance of $5,000 (the minimum amount required to earn this account's top APY) you'll likely find a lot of value in this account.

• Overview
• Pros & Cons

Overview

With the CIT Bank Platinum Savings Account, customers earn 5.05% APY on balances over $5,000. However, for accounts with less than $5,000, the APY falls to 0.25%. This account features a minimum opening deposit requirement of $100 and does not charge monthly maintenance fees. Accountholders also get free transfers to and from connected bank accounts, which even extends to non-CIT accounts.

Pros

• Strong APY for balances over $5,000
• No monthly service fee
• Unlimited withdrawals (uncommon perk of savings accounts)
• Free electronic bank transfers to checking accounts (even if it isn't a CIT checking account)

Cons

• APY on lower balances is unimpressive
• No fee-free ATM network
• Minimum opening deposit required
• No physical branches

SoFi Checking and Savings

Open Account

at SoFi

• Our Rating 5/5 How our ratings work Read the review
• APY0.50% - 4.60% More Info

  Customers earn 4.60% APY on savings balances when they set up recurring monthly direct deposit of their paycheck or benefits provider via ACH deposit. Alternatively, deposit at least $5,000 each month to earn 4.60% APY on your savings balance. Checking balances earn 0.50% APY

• Minimum
  Deposit RequiredN/A
• Intro Bonus $50-$250Expires December 31, 2023 More Info

  New customers can earn a $250 bonus for opening a new SoFi Checking and Savings account and receiving a total of $5,000+ in qualifying direct deposits within the specified evaluation period; receive $1,000 - $4,999 in qualifying direct deposits to earn a $50 bonus.

SoFi Checking and Savings boasts an impressive 4.60% APY on savings balances for customers who set up direct deposit, or who deposit at least $5,000 each month. This account also offers 0.50% APY on checking balances. There are no monthly maintenance fees, and new customers can even earn a generous signup bonus worth up to $250. If you don’t care about physical bank locations, this is a great option.

• Overview
• Pros & Cons

Overview

SoFi Checking and Savings features remarkably strong interest rates for customers who receive recurring monthly direct deposit, or who deposit $5,000+ every 30 days. This account also doesn’t have any maintenance fees, overdraft fees or non-sufficient funds fees. To top it off, new customers can earn a signup bonus worth up to $250.

Pros

• Accounts with monthly direct deposit earn interest
• No minimum opening balance or minimum monthly balance
• No maintenance fees, non-sufficient fund fees or overdraft fees
• Access to Allpoint’s worldwide ATM network
• Get paid up to two days early

Cons

• No physical branch locations

CIT Bank Term Certificates of Deposit

Open CD

Member FDIC

• Our Rating 3.5/5 How our ratings work Read the review
• Minimum
  Deposit Required$1,000
• 1 Year APY0.30% More Info

  Annual Percentage Yield is accurate as of March 31, 2023. Interest rates for CIT Bank's term CDs are variable and subject to change at any time without notice

• 3 Year APY0.40% More Info

  Annual Percentage Yield is accurate as of March 31, 2023. Interest rates for CIT Bank's term CDs are variable and subject to change at any time without notice

• 6-Month APY5.00% More Info

  Annual Percentage Yield is accurate as of March 31, 2023. Interest rates for CIT Bank's term CDs are variable and subject to change at any time without notice

Many banks that offer CDs require customers to commit to lengthy terms of several years or more in order to earn the highest interest rates available. However, with CIT Bank's term CDs, the opposite is true. To get the best rates at CIT, you'll need to open one of its shorter-term CDs, such as its 6-month CD that pays 5.00% APY. If you want an easy way to save more money without having to wait years, CIT Bank's term CDs are a solid option.

• Overview
• Pros & Cons

Overview

If you’re looking for a dependable way to earn interest on your money in the short term, CIT Bank’s certificates of deposits may be an excellent choice for you. However, those looking to open a long-term CD may be better off looking elsewhere.

Pros

• Strong rates for 13- and 18-month terms
• FDIC insured

Cons

• Rates for longer terms unimpressive

2. Open Accounts at Multiple Banks

Changing financial institutions can be an involved process, especially if you have direct deposits scheduled or automatic payments scheduled to creditors. Thankfully, switching banks isn’t your only option when it comes to finding low-risk ways to earn more money on your savings. 

You could consider opening accounts at more than one bank to increase your earning potential. This solution might be a good fit if you want to earn more interest on your savings but aren’t ready to completely change your banking setup. 

Keeping cash in more than one bank has other potential advantages such: 

• Avoid the temptation to spend your emergency fund when you keep your savings at a different bank. 
• When you choose safe banks that are members of the Federal Deposit Insurance Corporation, FDIC insurance covers up to $250,000 of your deposits (for each account ownership category) at each bank you use. 

3. Consider Alternative Saving Strategies

iStock

A third strategy is to switch up your saving strategies. Don’t assume that just because you’ve saved your money a certain way in the past that your previous approach is necessarily the best option. For example, many people are used to keeping their cash in a traditional checking or savings account.

If you fall into this category, you could consider branching out to open one of these account types:

• High-yield savings accounts: Typically found with online banks, these accounts have the potential to earn a lot more interest.
• Money market accounts: Some offer high APYs, along with some of the benefits of checking accounts.
• Certificates of deposits: If you can afford to lock away some of your cash for a few months or longer, CDs offer fixed interest rates and low-risk APYs.
• CD laddering: And if you’re worried about missing out on potentially higher interest rates in the future, you could give the CD laddering savings strategy a try. 
• Investment accounts: If you’re saving for long-term goals like retirement, thoughtful investing is often a good approach to growing your nest egg. But you may want to consult with a trusted financial advisor for guidance on how to set up a diversified portfolio to best suit your needs. 

Ready to save more?

Explore the Best High-Yield Savings Accounts

Visit the Marketplace

Bottom Line

Whether you’re keeping cash in the bank for emergencies or you’re saving for short-term financial goals, it’s wise to make sure your money is earning the most interest possible. It can take a bit of legwork to switch banks. However, if you have a decent-sized savings balance (or you plan to grow one), changing banks or opening an additional account that offers a generous APY could be well worth the effort in the long run.