How Much Interest Is Your Savings Account Paying?

As I describe in my book Oxen, you begin truly winning with money when your “money makes money for you.”

With that said, here’s a great question to ask yourself: “How much interest is my bank paying me for the money in my savings account?”

Chances are high that the number is 0.01%. In fact, I checked several big banks as I wrote this post and here’s what I found for their basic savings accounts:

  • Bank of America – 0.01%
  • Wells Fargo – 0.01%
  • Bank of the West – 0.03%

This is why I hold all of my business and personal savings in ON-LINE BANKS. This is not a “bank with website access.” They are banks that exist almost exclusively on-line. Since they do not have physical buildings, they have to do extraordinary things to attract customers. I’ve discovered they do two key things very well:

  1. No fees They’ve virtually eliminated fees – low balance fees, etc.
  2. Way better INTEREST! They are currently paying around 0.75% on savings (about the same as a 30-month CD, but I don’t lose the liquidity of my money!)

Since 2007, I have held all of my savings and operating reserves with Capital One 360.

I encourage you to do 2 things with this information:

  1. Find out how much interest your bank is currently paying on your savings.
  2. Check out the on-line banks we recommend HERE.


Information accurate as of 2/4/2014.


  1. Bob Scheppegrell on February 5, 2014 at 9:52 am

    I have had a Capital One 360 account (formerly ING Direct) for several years. It is a great place to hold your emergency fund and any intermediate term savings. I use it for these purposes plus my savings to pay property tax on my house. It has been paying 75 bps interest for quite a while, which is much better than CD rates and has no restrictions.

  2. BlakeGardner on February 5, 2014 at 10:52 pm

    I recently opened to a savings account at Barclays banking. Their online savings is no min. Balance, no fees with a .90% & their dream account is .95% compound interest rate. And they will give you 5x plus on interest you make in first six months on the dream account as long as you contribute consistently and don’t touch it for six months. That Bank of America money market just isn’t cutting it.

    Bank of internet rocks out too with a free checking account that earns up to 1.25% and a .75% free money market savings account. 2% return just for hanging on to the money.

  3. SofiaMontero on February 8, 2014 at 10:26 am

    Some credit unions may be worth a try; I suggest you ask friends and family. I bank with American Airlines Credit Union and their current savings and checking interest rates are between 0.5-2.27%. The cherry on top is the bonus dividend on 12/31 annually, which is determined by the number of products you have, and the amount of interest you’ve paid on loans or received on deposits. My bonus every year is equal to a car payment (if I had one!) and is a great way to start the year.

  4. James on May 15, 2014 at 10:55 pm

    I would like to transfer to a online bank to improve my interest rate. However, I don’t understand how to get cash out? Does capital one have ATM locations? If I have to use a debit card I would still need a 2nd bank account to have access to cash.

    Also, is it true the European Central Bank is considering giving negative interest rates? That would really detour people from having any kind of liquid savings. I imagine you would basically be paying for the security.

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