America’s Best Rates 2022

Learn how to get the best interest rates for your money by finding the best CD rates, best money market rates and best savings account rates.
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By Richard Barrington

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As if last year wasn’t tough enough on Americans’ finances, 2021 has posed a new threat to consumer savings accounts and other bank deposits: inflation.

While a shaky COVID-19 economy meant that both savings account rates and inflation fell in 2020, the two have gone in opposite directions so far this year. Savings account rates have continued to fall, while the inflation rate has risen.

The chart below tells the story:

As of the fall of 2021, inflation had soared to a 30-year high, while savings account rates had fallen to their lowest level in the history of the America’s Best Rates survey, which dates back to mid-2012.

The trend is similar for other types of deposit accounts, like money market accounts and one- and five-year CDs. This means that the hard-earned savings of American consumers could end up losing ground to inflation.

The best way to fight back is by not accepting typical savings, money market, or CD rates. A new study from MoneyRates.com found a huge difference between average bank rates and those offered by the top banks.

Learn more about the most recent trends in bank rates and learn where you can find the top rates that can help you soften the blow of inflation.

America’s Best Savings Account Rates

As of mid-third quarter 2021, these were the top savings account rates in the America’s Best Rates Survey. Instead of the usual top ten, twelve accounts are shown because there was a five-way tie for eighth place:

Bank

Savings account rate

1st place

Axos Bank

0.61%

2nd place

SFGI Direct

0.51%

3rd place (tie)

Ally Bank

0.50%

3rd place (tie)

iGOBanking

0.50%

3rd place (tie)

Marcus by Goldman Sachs

0.50%

3rd place (tie)

Synchrony Bank

0.50%

3rd place (tie)

TIAA Bank

0.50%

8th place (tie)

American Express National Bank

0.40%

8th place (tie)

Barclays

0.40%

8th place (tie)

Capital One

0.40%

8th place (tie)

CIT Bank

0.40%

8th place (tie)

Discover Bank

0.40%

Average savings account rate: 0.104%

Savings account rates have been falling steadily since peaking in the first quarter of 2019. The average savings account rate is now just 0.104%.

However, not all savings account rates fall at the same speed or to the same degree. As the above table shows, consumers have several opportunities to do significantly better. Some of the top savings account rates are 0.50% or better.

Especially with savings account rates falling to near zero and inflation on the rise, it really pays to shop around.

Average online savings account rate: 0.319%

When you shop for savings account rates, you’ll improve your chances of doing better if you shop online.

The average online savings account rate of 0.319% is more than nine times the average rate of 0.034% for traditional, branch-based accounts.

Significantly, every one of the top savings account rates in the above table is from an online account.

America’s Best Money Market Rates

As of the middle of the third quarter, the following were the ten best money market rates identified by the America’s Best Rates survey:

Bank

Money market account rate

1st place (tie)

Ally Bank

0.50%

1st place (tie)

First Internet Bank

0.50%

3rd place (tie)

CIT Bank

0.45%

3rd place (tie)

Sallie Mae Bank

0.45%

5th place (tie)

Northeast Bank

0.40%

5th place (tie)

TIAA Bank

0.40%

7th place

Synchrony Bank

0.35%

8th place (tie)

American Plus Bank

0.30%

8th place (tie)

Discover Bank

0.30%

10th place

Virtual Bank

0.25%

Average money market rate: 0.087%

Two years ago, money market rates were a little higher than savings account rates. Since then, they’ve fallen even more quickly and are now lower. This makes them even more vulnerable to inflation.

As with savings account rates, there is a big difference between the best money market rates and the average. The table above shows where you can find some of the best money market rates.

Average online money market rate: 0.235%

Online money market rates offer a significant advantage over rates from traditional, branch-based accounts. The average online money market rate of 0.235% is exactly five times the average traditional money market account rate of 0.047%.

The Best 1-Year CD Rates

As of the middle of the third quarter, the following were the top 10 one-year CD rates in the America’s Best Rates survey:

Bank

1-year CD rate

1st place

First Internet Bank

0.60%

2nd place (tie)

Ally Bank

0.55%

2nd place (tie)

iGOBanking

0.55%

2nd place (tie)

Marcus by Goldman Sachs

0.55%

2nd place (tie)

Sallie Mae Bank

0.55%

2nd place (tie)

Synchrony Bank

0.55%

2nd place (tie)

TIAA Bank

0.55%

8th place (tie)

American Plus Bank

0.50%

8th place (tie)

Discover Bank

0.50%

10th place

Beal Bank

0.46%

Average one-year CD rate: 0.183%

CDs typically offer a dual advantage over savings and money market accounts:

  • They can allow you to lock in a rate for a specified period, which can protect you against falling rates.
  • In exchange for a longer commitment of your money, CD rates are usually higher than savings or money market rates.

It’s no surprise that the average one-year CD rate is higher than the average savings and money market rate. While the top one-year CD rates are similar to the top savings account rates, CDs let you lock in a rate for a full year while savings account rates are subject to change at any time.

The ability to lock in a rate is a reason why shopping around is especially valuable when it comes to choosing a CD. There is a significant difference between the top CD rates and the average, and that advantage can be locked in for the full term of the CD.

Average online one-year CD rate: 0.337%

Online accounts generally offer a rate advantage over traditional, branch-based CDs. Plus, there’s another reason to consider an online CD.

CDs involve committing money for a specified period, so there isn’t normally any interaction with the account during the term of the CD. This means there’s no reason to visit a bank branch during the CD’s term, so why not get a better rate by banking online?

With an average online 1-year CD rate of 0.337% compared to an average rate of 0.134% for one-year CDs in traditional accounts, online CDs offer an opportunity to earn more.

The Best 5-Year CD Rates

The following were the 10 best 5-year CD rates as of the middle of the third quarter:

Bank

5-year CD rate

1st place

First Internet Bank

0.95%

2nd place

Columbia Bank

0.90%

3rd place (tie)

Synchrony Bank

0.85%

3rd place (tie)

TIAA Bank

0.85%

5th place (tie)

Ally Bank

0.80%

5th place (tie)

Capital One

0.80%

5th place (tie)

Marcus by Goldman Sachs

0.80%

5th place (tie)

Popular Bank

0.80%

9th place (tie)

Ridgewood Savings Bank

0.70%

9th place (tie)

Tompkins Trust Company

0.70%

Average five-year CD rate: 0.341%

In exchange for the longer commitment required, five-year CDs offer a rate advantage over savings accounts, money market accounts, and shorter-term CDs.

However, this rate advantage has gotten smaller over the past couple years as rates generally have fallen. In a falling rate environment, banks try to avoid locking themselves into a rate that might be higher than the market if rates continue to fall.

Even so, you can still get a rate advantage with a longer-term CD. This is especially true if you shop for one of the best five-year CD rates. As shown in the table above, the best rates are more than twice the average rate.

Average online five-year CD rate: 0.504%

The average five-year CD rate for an online account of 0.504% is significantly better than the average five-year CD rate for a branch-based account, which is 0.290%.

Again, given the lack of interaction customers typically have with their accounts during the term of the CD, it can be particularly worthwhile to get a higher rate by banking online.

America’s Best Rates: Identifying Consistently High Rates

The latest America’s Best Rates survey of savings, money market, and CD account rankings was based on publicly-posted rates as of mid-third quarter 2021. Rates available to customers with a $10,000 balance and no broader relationship with the bank are used for this survey.

To provide a representative view of banking trends, this analysis is based on the MoneyRates Index, a consistent sample of accounts reflecting a cross-section of the retail deposit industry. The MoneyRates Index is comprised of 50 of the largest retail deposit institutions in the United States, plus 25 smaller banks and 25 medium-sized banks.

About Author
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Richard Barrington
Richard Barrington has been a Senior Financial Analyst for MoneyRates. He has appeared on Fox Business News and NPR, and has been quoted by the Wall Street Journal, the New York Times, USA Today, CNBC and many other publications. Richard has over 30 years of experience in financial services. He has earned the Chartered Financial Analyst (CFA) designation from the Association of Investment Management and Research (now the “CFA Institute”).