Banking Bliss or Bust
Practically every American owns some type of bank account where they store their money. Typically, you will have a Checking account at a minimum; however, many also open Savings accounts where they will build up their savings outside of their usual spending habits. With that said, though, most consumers have relatively little interest in chasing down the best interest rate or earnings from their bank – people tend to view the interest earnings as pretty minimal and likely not worth their effort.
Contrary to that belief, though, there are certainly some states that are much better or much worse in terms of the interest rates offered by their banks. The below analysis will rank the top 10 best and the top 10 worst states based on the best interest rate that individuals can earn in a bank within that state. The analysis will include information such as the bank, the type of account, the annual percent yield and the size of holdings the bank maintains.
In a world where bank stability is often questioned and consumers fear the uncertainty of where to park their money, it is important to select your bank carefully. All of the banks in this analysis have, at a minimum, $500,000,000 of total assets. While it isn’t a guarantee of liquidity and stability, consumers can feel relatively comfortable knowing that they are not storing their money in a very small, local bank.
What is APY?
Before we get into the analysis, let’s quickly cover APY and what it means. APY, or annual percentage yield, is the real rate of return that a person will receive on their investment over a one-year time horizon.
For the sake of this analysis, we will cover the 10 best and 10 worst APYs offered by banks!
10 Best States for Banking Interest Rates
- Amalgamated Bank, with $5,031,000,000 of total assets, offers an APY of 1.20% in their online savings account.
- The biggest downside to a New York bank account revolves around the taxes and cost of living in the state – for an online savings account, this might not matter!
- First Internet Bank, with $4,093,000,000 of total assets, offers an APY of 0.75% in their free savings account.
- Pinnacle Bank, with $956,000,000 of total assets, offers an APY of 0.40% in their personal savings account.
- Bank of Colorado, with $4,428,000,000 of total assets, offers an APY of 0.40% in their savings account.
- Arvest Bank, with $19,332,000,000 of total assets, offers an APY of 0.35% in their savings account.
- Bankwell Bank, with $1,856,000,000 of total assets, offers an APY of 0.30% in their savings account.
- BankWest, with $1,100,000,000 of total assets, offers an APY of 0.25% in their statement savings account.
- GateWay Bank, with $1,477,000,000 of total assets, offers an APY of 0.25% in their statement savings account.
- Midwest BankCentre, with $2,007,000,000 of total assets, offers an APY of 0.25% in their statement savings account.
- Northeast Bank, with $1,123,000,000 of total assets, offers an APY of 0.25% in their Prime Savings account.
As can be seen from the list of the top 10 states above, the variance in APY is relatively minimal. New York offers the highest rate based on the data at 1.20%; this is much higher than the rest of the list, with all other states having 0.75% APY or less. It might be worth pursuing an online account with Amalgamated Bank in New York; however, you should look into the stipulations and offerings from the bank before deciding on just a 1.20% APY.
10 Worst States for Banking Interest Rates
Bank of Hawaii, with $17,643,000,000 of total assets, offers an APY of 0.03% in their regular savings account.
Rocky Mountain Bank, with $528,000,000 of total assets, offers an APY of 0.03% in their regular savings account.
Northway Bank, with $896,000,000 of total assets, offers an APY of 0.05% in their statement savings account.
North Street Bank, with $659,000,000 of total assets, offers an APY of 0.05% in their statement savings account.
The Washington Trust Co. of Westerly, with $5,199,000,000 of total assets, offers an APY of 0.05% in their freedom statement savings account.
The remaining banks ranked in the top 10 worst APY offerings for savings accounts share the same APY rate of 0.10%. Those states are as follows: Alabama, Arizona, Florida, Iowa, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Mississippi, New Mexico, North Dakota, Utah, Vermont, Virginia and Wisconsin.
As can be seen by the data above, the “worst” states are all pretty close in terms of their APY offerings, excluding those bottom 5 states.
Regardless of your state of residence, though, it might be worthwhile to pursue the highest possible savings account rate nearest to you. Unfortunately, the “worst” states seem to be more on the average side of things, with low-interest rates for their savings account. In fact, it seems like the top 10 best states are more of an anomaly than the bottom 10!