AFTER MONTHS OF RECORD-BREAKING price increases on food, gas and other basics of everyday life, it's never been more important to bank with a financial institution that helps you maximize the power of every dollar.
While no bank or credit union offers payouts that come close to keeping pace with inflation, institutions have been steadily hiking rates this year in response to the Federal Reserve's record interest-rate increases. Last October, the average savings account paid just 0.06 percent interest. Today, that's up to 0.21 percent, and top-yielding accounts offer more than 3 percent. Payouts haven't been that high since 2010.
Still, that's just a drop in the proverbial bucket compared with the staggering 8.2 percent annualized rise in consumer prices over the past 12 months. That makes top rates only one factor to consider when choosing a bank these days.
Finding an institution that offers bigger incentives, like cashback or other rewards programs and fewer-than-average fees, also ranks highly for customers on the hunt for a new bank, a J.D. Power surv recently found.
Some banks have been listening. Over the past year, major players, like Capital One, Bank of America, Citibank and U.S. Bank, have reduced or eliminated their fees for overdrafts and other transgressions or offered more ways to avoid maintenance fees. "Many people view these overdraft fees as predatory," says Ken Tumin, founder of DepositAccounts.com. "This change will help a lot of people, particularly those who can least afford to pay a $35 overdraft fee." Many institutions, though, give with one hand and take with the other, by increasing different charges to offset the lost revenue from overdraft fees, says Tumin. Free paper statements are all but a thing of the past. And ATM fees continue to rise as more people use digital payment systems like Zelle instead of cash, making it costlier for banks to maintain their ATMs.
Denne historien er fra November 18, 2022-utgaven av Newsweek Europe.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra November 18, 2022-utgaven av Newsweek Europe.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
All the Right Moves
PR experts tell Newsweek the winning strategies that keep Dancing With the Stars as popular as ever after 19 years
Front Line of History
A fascinating series of snapshots showing a medic's experience of the Korean War have been uncovered by his grandson
CLEAR AND PRESIDENTIAL DANGER
IN A CAMPAIGN THAT'S BEEN FULL OF SHOCKS, COULD AN OCTOBER SURPRISE PROVIDE A FINAL TWIST IN THE RACE TO THE WHITE HOUSE?
'We're Not Beasts, We're Just People'
Trans MMA fighter Alana McLaughlin on coping with societal and family of being the 'bigger person' expectations
Is This France's #MeToo Moment?
The trial of Dominique Pélicot, who has admitted drugging his wife and allowing her alleged rape, has highlighted a culture of sexual violence in the country
Washington is 'Playing With Fire'
In an exclusive interview with Newsweek, Russian Foreign Minister Sergey Lavrov warns the U.S. to accept his country's proposal to end the war in Ukraine or face \"dangerous consequences\"
Zachary Quinto
ZACHARY QUINTO HAS PLAYED DOCTORS BEFORE, BUT HE'S \"NEVER PLAYED a doctor like\" the one he plays on NBC's Brilliant Minds (September 23).
Adam Brody
NETFLIX KNOWS EXACTLY WHAT MILLENNIALS want, and it's to see Adam Brody and Kristen Bell fall in love.
Partners in Crime
Actor Joseph Gordon-Levitt shares his delight at teaming up with Shailene Woodley again in new Amazon Prime movie Killer Heat
HOW TO FIND A WORKPLACE THAT LOVES YOU BACK
Insights from America's Top Most Loved Workplaces