SANTA FE, N.M.–A new analysis by DepositAccounts has taken aim at how much consumers can save — or “leave on the table” — by shopping/not shopping for the best annual percentage yield on checking and savings accounts, and the numbers are “significant,” the company said in releasing the findings.
As an example, DepositAccounts said that with balances of $1,000 to $25,000 the difference between the lowest and highest checking account APY could mean an additional $51 to $965 in a year.
As CUToday.info reported here, one national report has also questioned why Americans are leaving $42 billion on the table and not “ditching” big banks.
Among the findings:
It Pays to Shop
According to DepositAccounts.com, shopping for the best APY on a checking account can boost a consumer’s balance by as much as 5.1% in a year and 64.5% in 10 years. “This is based on a Nov. 3 analysis of checking account rates on DepositAccounts, with APYs ranging from 0.01% to 5.00% on certain deposits,” the company said. “With balances of $1,000 to $25,000, the difference between the lowest and highest checking account APY can result in an additional $51 to $965 in a year and $646 to $11,685 in 10 years. It stands to reason that consumers with larger (and longer) balances will see the biggest monetary increases, but it pays to shop no matter how much you have in your account.”
Understanding Yields
DepositAccounts noted high-yield savings accounts typically offer higher APYs than checking accounts, “but the boost from shopping for the best APY is lower in this analysis. This is because a single institution offered a 5.00% APY on checking account balances up to $10,000. Meanwhile, the largest APY during our analysis of savings account rates was 3.50%, while the lowest APY was 0.01%. This equates to a balance boost of up to 3.6% in a year and 41.7% in 10 years.”
The company added that using these high-yield savings account rates as examples, the difference between the lowest and highest APYs can result in an additional $35 to $887 in a year and $417 to $10,434 in 10 years.
Few People Shop
Despite the clear benefits of shopping for the best APY on a checking account or savings account, only 43% of Americans say they've done so, according to the study.
“This is highest among Gen Zers (51%), residents in the West (48%) and six-figure earners (47%).”
About the Study
DepositAccounts said its researchers analyzed the DepositAccounts database of 127 standard checking account and 193 high-yield savings account offerings to come to its findings.
The full report can be found here.
Just in Time for the Holidays, CUToday’s Free Morning Headline Email is Now Double-Free!
Don’t forget to check your Spam/Junk email folder if you haven’t been receiving your free, popular and daily CUToday.info news headlines.
And if you haven’t yet signed up for the new email solution on which CUToday.info has partnered with ResponseGenius, you can do so here. Signing up requires less than one minute of your time.
CUToday.info has received very positive response from readers following the move to an improved provider of the daily headlines, but many also noted they did need to go to their Spam/Junk folder and mark it as safe.
The new email solution has not only improved every reader’s delivery experience, but it also features a fresh, new format that is easy to read, especially on mobile devices.
Please note and/or make your IT department or email administrator aware the emails will be coming from the domains CUTodayinfo.com and CUTodayinfoReply.com