Does your savings accounts have an interest rate of 0.01% or 0.05% earning only pennies each month? Luckily, there are banks that offer 1.00% interest rates! Although, 1.00% may not seem like a lot, it is substantially better than the ridiculously low-interest rates of 0.01 or 0.05% the traditional banks are providing. If you had $1000 in a savings account with 1.00% you will receive $10 at the end of the year, compared to only 10 cents with an interest rate of 0.01%. For more information about the power of compound interest check out http://www.firststepfortune.com/2016/04/26/compound-interest-and-saving-for-retirement/.
Are you wondering how can these banks offer higher interest rates over some of the banks that been around for decades? Well, these banks mastered the way to keep their costs as low as possible. Brick and mortar banks compared to online banks, without any store fronts, save a tremendous amount of overhead. By keeping costs down they can offer better returns for their customers.