Credit Unions Kill Big Banks When It Comes to Savings Account Rates

Depositors are told time and again that local institutions, particularly credit unions, beat big banks in terms of customer service, fees and interest rates. But how great is the difference, really? And is it enough to make switching banks worth the trouble? According to our most recent study, if you’re looking to earn better savings account rates, the answer is yes.

We examined the average savings account interest rate offered by the 10 biggest banks in the U.S., then compared it against average rates from 3,510 local financial institutions across the country to find out if a bigger bank really means paltry rates. The findings suggest that big banks are not for savers, and those who are looking to grow their savings accounts should turn to community institutions with more high-yield options.

The Biggest Banks

“Big banks” are classified as such by their asset size — the biggest banks in the U.S. hold billions of dollars in assets. JP Morgan Chase & Co., for instance, is the biggest bank in the country with total assets of close to $2.3 billion. Branches for these massive banks are about as ubiquitous as Starbucks, and offer a huge range of investment services.

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