Best interest rate accounts: savings and beyond
High-interest savings, money-market accounts and CDs are the usual places people look for a better rate. Each has a role, and each can be compared with options outside the bank.
Accounts at a bank or credit union
- High-interest savings – rate can change at any time; withdraw any day.
- Money-market deposit accounts – similar, sometimes with check writing.
- CDs – a fixed rate for a fixed term, with a penalty for early withdrawal.
- Deposits are insured by the FDIC (or NCUA for credit unions) up to the limit.
Outside the bank
Treasury bills, money-market funds and short-term bonds are bought through a broker or TreasuryDirect. Their interest is taxed differently: Treasury interest is exempt from state tax, and some money-market funds hold only municipal or government securities.
Compare on one scale
IncomeGrid has 40,000+ investment options screened. IncomeGrid ranks every item by yield after tax for where you live: federal, state and each investment type (Treasuries, municipal bonds, corporate bonds, funds, REITs and filed offerings are each taxed differently).
Sources
- FDIC – Understanding deposit insurance
- FDIC – National rates and rate caps
- TreasuryDirect – Treasury bills
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