While the December Fed rate hike has already pushed up rates on credit cards, the interest paid to depositors has barely budged, according to a new WalletHub Banking Landscape Report.
The report found that online-only savings accounts offer the best rates, but with average rates at a measly 0.61 percent the bar remains fairly low. Credit unions offer the best rates on checking accounts, with an average interest rate of 0.55 percent.
Even as banks have raised their prime rates, they have little incentive to immediately pass along those increases to savers.
Related: The Fed Just Raised Rates. Here’s What It Means for Your Money
While rates haven’t increased much on deposit accounts, fees have. Paper statement fees and monthly fees both rose in the fourth quarter, and “minimum to open” requirements jumped more than 6 percent.
One exception: Non-bank ATM fees inched downward and more banks in the quarter began reimbursing non-bank ATM fees, continuing a trend that began in early 2014.
With rates so low, it’s even more important for consumers to keep an eye on fees, which can wipe out any paltry interest payments they do receive.
According to a separate report from WalletHub, the best overall online checking account in the country is from Bank of Internet Rewards Checking, which has no monthly fee, reimburses users for out-of-network ATM fees, and offers an annual percentage yield (APY) of up to 1.5 percent.
The checking account with the highest interest rate is AmericaNet Rewards Checking from All America Bank, which pays 1.5 percent interest on balances up to $10,000, and 0.50 percent on additional funds.
