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MoneyWatch: Managing Your Money
By Kendall Little
Edited By Matt Richardson
/ CBS News
If you've had a savings account with the same bank for a while, it could be time to explore what your options are today.
Interest rates arestill very high following a series of Federal Reserve rate hikes, andplenty of banks today offer high-yield savings accounts that can help you add a lot in interest earnings to your overall balance. But there are a few cases in which savers will nearly always benefit from making a change.
Start comparing top savings account rates available for you now.
4 best times to switch your savings account
There's no shortage of great, high-earning savings accounts available today. Here are a few times when it can make the most sense to open a new one.
When you find a higher interest rate
Scoring a great interest rate is one primary reason to choose a high-yield savings account in any rate environment. If you're not getting the best possible rate from your account, you may want to reconsider.
Today, there are several high-yield savings accounts still earning 3.5% to 4% APY on balances. While that can add a good sum to your overall balance, it's not the best rate you'll find now. Some online banks have high-yield accounts with interest as high as 4.5% or even 5.0% APY.
While these rates are variable, it can pay to find an account with a competitive rate right now. Even when rates go down, there's a good chance that your high-earning bank account will remain competitive with other top accounts.
Find out how much more you could be earning with some of today's best savings rates.
When you're paying fees
Monthly fees can eat into your interest earnings and reduce your overall balance. Many large, national bank chains with low-earning traditional savings accounts frequently charge monthly fees.
Online savings accounts, by contrast, often do not charge monthly maintenance fees or any account opening fees. If you're still paying even $1 per month to keep your savings account open, it could be time to switch.
On top of monthly fees, watch out for other charges you may incur — excessive transaction fees, wire transfer fees, inactivity fees, paper statement fees and more. If you're paying any of these on a regular basis, you may want to consider ways to avoid them in the long run.
When you can get a bonus
A savings account bonus may help you get an extra $100 or more boost on top of your interest earnings.
Some banks offer cash bonuses for new customers who sign up and deposit a specific amount within a certain time period — $10,000 in new funds within 30 days of signing up, for example. You may also be required to keep that balance in your account for a given time frame.
But a bonus shouldn't be the only thing you consider. If the account doesn't offer ongoing benefits like a great interest rate, no fees and easy account access, then a one-time bonus may not be worth it. But if the new account does suit your long-term savings goals and also offers a limited-time bonus, it could be reason enough to switch.
When you can benefit from new features and tools
Many savings accounts today aren't just storage options for your cash. They frequently come with online or mobile tools to help with budgeting and meeting savings goals.
For example, some banks allow you to break your overall balance into different savings "buckets"— which you can dedicate toward various savings goals. Others may have a round-up option that allows you to automatically round up transactions to the nearest dollar to add to your savings if you also have a connected checking account,.
If you think you could benefit from these features, compare different savings accounts with high rates and no fees that also offer added savings features for customers. Start your search here today!
The bottom line
With today's high interest rates, you can benefit from keeping up with different account rates to make sure you're getting the best deal. But there are a few more times when you may benefit from switching accounts. Look for new features that could help you save more, limited-time bonuses on already-competitive accounts, and if you're still paying a monthly fee, make the switch to a no-fee account that won't cut into your bottom-line balance.
If you're considering a new savings account today, take some time to compare top accounts and find the very best for your goals. You can get started here now.
