With interest rates this low, you need to make the most of every opportunity to boost the return on your savings.
That means taking advantage of your bank’s “relationship” rates.
In most instances, that’s where checking account customers are offered higher interest rates on savings accounts or certificates of deposits.
Some relationship deals don’t make you feel all that special.
Chase Bank, for example, is paying 0.05% APY on savings accounts with balances under $10,000, and 0.10% APY to customers who qualify for “relationship rates.”
But Fifth Third Bank, with almost 1,300 branches in 13 Midwest and southeastern states, has a little better offer.
It will double the interest on savings accounts, which means you can earn 0.50% APY on balances between $2,500 and $10,000, and 1.00% APY on balances over that.
When you consider that the best 3-month CDs are only paying 1.25%, that makes a Fifth Third savings account a pretty good place to park short-term cash.
Country Bank leads our rankings of the best, nationally available 6-month CDs.
The bank, which has 14 branches in central Massachusetts, is paying 1.60% APY with a $500 minimum deposit.
But if you have a checking account (with a regular direct deposit and minimum balance of $1,000) you can earn 1.85% APY on 6-month CDs.
Salem Five , another bank with more than a dozen Massachusetts’ branches, has a similar deal.
Its Gold Star checking account customers qualify for higher-paying Relationship CDs.
A regular 9-month CD currently pays 0.75% APY. A Relationship CD earns 1.25% APY. A regular 24-month CD pays 0.90%. A Relationship CD pays 1.75%.
(The only drawback is Salem Five’s Relationship CDs require a hefty $10,000 minimum deposit.)
We’re not suggesting that relationship deals like these are worth the cost, or the hassle, of opening a new checking account.
We just want you to benefit from the relationship rates at your current bank — and put a few extra dollars in your pocket.