Internet Banks vs Brick & Mortar : New Study Finds Online Banks Offer Savings Yields Four Times Higher than Traditional Banks & Credit Unions
The results of the study showed that the current average savings account APY with an internet bank is more than 4x that of credit unions and traditional banks. Savings account APYs for
The study also compared the dollar impact of
Savings Accounts Institution Count = 6,278 |
|||||||||
|
|
|
% |
% |
Gain on |
1 year |
5 years |
10 years | |
B&M |
0.159% |
0.161% |
0.173% |
7.4% |
9.2% |
B&M |
|
|
|
Credit |
0.184% |
0.181% |
0.188% |
3.9% |
2.4% |
CU |
|
|
|
|
0.625% |
0.681% |
0.804% |
18.1% |
28.6% |
IB |
|
|
|
*At these fixed APYs |
"Not only will savers earn a much higher interest rate at internet banks, our study also shows they'll see the benefit of the rising rate environment much sooner, " said Ken Tumin, co-founder of DepositAccounts.com, now part of
Additionally, DepositAccounts.com offers a Where to (Safely) Grow Your Cash tool to help consumers maximize the interest earned on their savings accounts. The tool illustrates the difference between being a smart and proactive investor, while remaining totally safe and federally insured, versus being a non-attentive investor who simply takes the average savings account offer and doesn't shop around on DepositAccounts.com.
Consumers enter their cash savings amount, state and investment horizon, and the tool automatically scans through the database of eligible accounts, generates a set of options and compares each of them to the baseline of simply investing that money into a national average savings account. The options include different deposit-product types and strategies, ranging from easy (set it and forget it) to somewhat labor intensive (which earns more interest).
When looking at an example of a
About DepositAccounts.com
DepositAccounts.com is the largest and most comprehensive online publication in the United States dedicated to providing bank deposit account information for consumers. It covers all 11,500+ federally insured banks and credit unions and utilizes its patented technology to daily track and update more than 270,000 consumer deposit rates. The site features more than 12,000 editorial articles detailing creative depository strategies and highlighting current bank rates and offers. It is also home to one of the largest communities of depositors on the Web, hosting more than 120,000 comments, customer reviews, and forum threads.
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