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Best Rates for Savings & Deposits In The U.S. – 4Th Quarter, 2017

A trend toward higher savings and money market rates is positive for consumers, but a closer look shows that it is offered by a minority of banks.
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Financial Expert
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Managing Editor
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Rates for savings and money market accounts rose overall for the third consecutive quarter. That means more money is flowing into the accounts of bank deposit customers. But before you celebrate, recognize that the spoils from this trend are not being distributed equally. Some consumers are benefiting much more than others.

To make sure you are benefiting from rising bank rates, understand which banks are paying the best savings account rates and where rates are rising most quickly.

For example, the average savings account rate rose by 0.05 percent over the past three quarters. This is not earth-shattering news, but it is a step in the right direction. However, upon closer inspection, only a handful of banks are moving more aggressively to offer customers better savings account rates while other banks are standing still or worse.

Online vs. brick-and-mortar banks: Where are higher rates?

By the fourth quarter of 2017, the average savings account rate had risen 0.05 percent — but the average online savings account rate had risen 0.17 percent, or more than three times as fast. Meanwhile, the average savings account rate at a traditional branch-based bank went in the opposite direction, losing a little under 0.01 percent over the same period of time.

An even more dramatic difference can be seen by comparing the best-in-class savings accounts to the rest of the pack. Since average rates began rising after the first quarter of 2017, the top ten banks in the MoneyRates America’s Best Rates survey have increased their savings account rates by an average of 0.35 percent, or seven times the overall average increase. Meanwhile, fully two-thirds of all savings accounts did not raise their rates at all during the same period.

The following lists show the savings and money market accounts that have been leading the way toward higher rates.

The best savings account rates – 4th quarter, 2017

Savings account rates increased by 1.6 basis points during the fourth quarter of 2017, to an overall average of 0.274 percent. The following were the ten best savings account rates during the quarter:

  Bank Savings account rate
1st place Salem Five Direct (ABR platinum medal winner) 1.45 percent
2nd place CIT Bank (ABR gold medal winner) 1.34 percent
3rd place SFGI Direct (ABR silver medal winner) 1.32 percent
4th place (tie) Nationwide Direct (ABR bronze medal winner) 1.30 percent
4th place (tie) Synchrony Bank (ABR bronze medal winner) 1.30 percent
6th place Barclays Bank 1.29 percent
7th place GS Bank 1.28 percent
8th place American Express National Bank 1.26 percent
9th place Ally Bank 1.23 percent
10th place Radius Bank 1.22 percent

Every one of these accounts raised its rate during the fourth quarter, so they are not just the leaders but they are doing what it takes to stay ahead of the pack.

As has been the case in recent years, online savings accounts generally offer a clear advantage over accounts offered by traditional bank branches. The average online savings account rate is now 0.808 percent, more than 12 times the average traditional savings account rate of 0.066 percent. Every one of the top ten savings account rates was for an online account.

Barclays
Barclays : Tiered Savings Account
Annual Percentage Yield
4.35%
As of 1.7.2025
Monthly Fee
$0.00
Min Deposit to Earn APY
$0.00
Member FDIC
See More
Additional Features
  • $200 Bonus with qualifying activities. Terms apply.
  • Earn 7X the national average
  • No monthly maintenance fees
  • Secure and easy online account access
See More
VIEW DETAILS
Member FDIC
Additional Features
  • $200 Bonus with qualifying activities. Terms apply.
  • Earn 7X the national average
  • No monthly maintenance fees
  • Secure and easy online account access
SoFi<sup>®</sup>
SoFi® : Checking and Savings Account
Annual Percentage Yield
Up to 4.00%
As of 1.7.2025
Monthly Fees
$0.00
Min Deposit to Earn APY
$0.00
Member FDIC
See More
Additional Features
  • Earn up to 4.00% APY.
  • Earn up to $300, depending on your direct deposit amount.
  • No account fees. No overdraft fees. No minimum balance fees. No monthly fees.
  • Your money is FDIC insured.
See More
VIEW DETAILS
Member FDIC
Product Disclosure
Product Disclosure
New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 12/3/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at ;http://www.sofi.com/legal/banking-fees/.

SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additionalFDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at SoFi.com/banking/fdic/termsSee list of participating banks at SoFi.com/banking/fdic/receivingbanks

We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however,third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.

Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduledpayment date, but may vary.

Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day EvaluationPeriod as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selectingeither (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.
Additional Features
  • Earn up to 4.00% APY.
  • Earn up to $300, depending on your direct deposit amount.
  • No account fees. No overdraft fees. No minimum balance fees. No monthly fees.
  • Your money is FDIC insured.
Laurel Road High Yield Savings®
Laurel Road High Yield Savings® : Savings Account
Annual Percentage Yield
4.15%
As of 1.7.2025
Monthly Fee
$0.00
Min Deposit to Earn APY
$0.00
Member FDIC
See More
Additional Features
  • Don't settle for average savings
  • Get fast, easy access to your savings and start earning, with $0 costs to open.
  • Rest assured your savings are safe – deposits are FDIC-insured up to $250,000.
  • Laurel Road is a brand of KeyBank, N.A.
See More
VIEW DETAILS
Member FDIC
Product Disclosure
Product Disclosure
Fees may reduce earnings on the account. National average Annual Percentage Yield (APY) reported by the FDIC as of 08/21/2024 (fdic.gov/regulations/resources/rates)
Additional Features
  • Don't settle for average savings
  • Get fast, easy access to your savings and start earning, with $0 costs to open.
  • Rest assured your savings are safe – deposits are FDIC-insured up to $250,000.
  • Laurel Road is a brand of KeyBank, N.A.

The best money market rates – 4th quarter, 2017

Money market account rates increased by 3.2 basis points during the fourth quarter, to an average of 0.251 percent. The following were the top ten best money market rates during the quarter:

  Bank Money market account rate
1st place UFB Direct (ABR platinum medal winner) 1.41 percent
2nd place Sallie Mae Bank (ABR gold medal winner) 1.30 percent
3rd place Able Banking (ABR silver medal winner) 1.30 percent
     
5th place BBVA Compass 1.25 percent
6th place Discover Bank 1.07 percent
7th place First Internet Bank 0.97 percent
8th place EverBank 0.96 percent
9th place TIAA Direct 0.95 percent
10th place Ally Bank 0.90 percent

Nine out of these ten money market rates increased during the fourth quarter.

Here again, there was a meaningful advantage for online accounts. The average online money market rate is 0.729 percent, compared to 0.126 for traditional, branch-based accounts. Eight out of the top ten money market rates in the survey were offered by online accounts.

Main tip for consumers: shop for the best rates

Rising deposit rates are a positive for consumers; but remember, most savings account rates have not risen over the past three quarters. The same is true for money market accounts. Only a handful of banks have raised their rates dramatically over that time period.

In other words, the trend toward higher rates is being carried by a relatively small number of banks. If you want to benefit from that trend, you should check out the banks on the above lists.

More tips for consumers interested in higher savings rates

  1. Inflation provides added incentive to change
    The pace of inflation increased over the second half of 2017, meaning that staying in a savings or money market account paying little or no interest is getting more costly.
  2. Online banks are a good place to shop for higher rates
    Not only are most of the top savings account rates and money market rates offered by online banks, but there is a greater chance their products will be available in your area since they don’t depend on physical branch locations.
  3. The leaders tend to remain in front
    Nobody wants to change their accounts repeatedly to get the highest rates, but the rosters of top savings and money market accounts have been fairly stable over time. That means if you switch to one of the banks listed above, chances are they will continue to be among the leaders in the trend toward higher rates.

If the trend in the latter part of 2017 is any indication, 2018 is shaping up to be an exciting year for deposit accounts — especially for those consumers who choose the right banks to be part of that trend.

Richard Barrington, a Senior Financial Analyst at MoneyRates, brings over three decades of financial services expertise to the table. His insightful analyses and commentary have made him a sought-after voice in media, with appearances on Fox Business News, NPR, and quotes in major publications like The Wall Street Journal and The New York Times. His proficiency is further solidified by the prestigious Chartered Financial Analyst (CFA) designation, highlighting Richard’s depth of knowledge and commitment to financial excellence.
Our reviews are unbiased and thorough, focusing on consumer needs. For details, see our Editorial Policy & Methodology.