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Investors Business Daily
Investors Business Daily
Business
MATT KRANTZ

JPMorgan Chase And B Of A 'Rob' You Of $5,473 A Year

Stubbornly high interest rates mean if you're not getting at least 4% on your money — you're getting robbed. And not by a small amount.

Top savings and money market accounts are paying at least 5% in annual interest rates, says Bankrate.com. Brio Direct, a Jericho, N.J.-based online bank affiliated with Webster Bank, is paying 5.35% on its FDIC-insured high-yield savings account, for instance.

That means you should be getting $5,483 in annual interest (compounded monthly) in just the first year on a $100,000 deposit. That decimates the 0.01% both JPMorgan Chase and Bank of America are paying on savings accounts, Bankrate says. Keep your money in those banks and you'll only get $10 a year on your $100,000 deposit — or $5,472.

Don't Wait For Interest Rates

And if you've waited to move your savings to a place to get higher interest rates, it's time to take your money and walk.

The long-awaited cuts in interest rates aren't materializing. The yield on the 10-year Treasury is hanging at 4.57%. "S&P Global Ratings now believes that conditions for a monetary policy easing by the Federal Reserve won't be in place before autumn," said a report.

That means there's plenty of risk-free plump yields from FDIC-backed banks. Brio Direct's high-yield savings is just the highest. It's essentially marketing savings accounts from the Webster Bank unit of Stamford, Conn.-based Webster Financial.

But there are other options, too. VIO Bank, the online unit of privately held MidFirst Bank in Oklahoma City, is paying the highest interest rate on a money market at 5.3%.

What if you're looking for a solid interest rate on a standard savings account? UfbDirect, affiliated with San Diego's Axos Bank, is paying 5.25% on a savings account.

These smaller banks aren't as well-known as the giants. But at least they're paying you what you're due.

High Interest Rate Options

They're not at your giant bank.

Bank Rate Type Interest paid on $100,000 in a year
Brio Direct 5.35% HY savings $5,483.16
VIO Bank 5.30% Money market $5,430.66
TAB Bank 5.27% HY savings $5,399.17
ufbDirect 5.25% Money market $5,378.19
CFG Community Bank 5.25% Money market $5,378.19
ufbDirect 5.25% Savings $5,378.19
ufbDirect 5.25% HY savings $5,378.19
Popular Direct 5.15% Savings $5,273.32
Bread Savings 5.15% Savings $5,273.32
Popular Direct 5.15% HY savings $5,273.32
SalemFive Direct 5.01% Savings $5,126.66
Quontic 5.00% Money market $5,116.19
Chase 0.01% Savings $10.00
Bank of America 0.01% Savings $10.00
Sources: Bankrate.com, IBD
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