Skittish consumers are finally saving more money -- and now the banks are trying all sorts of gimmicks to get their hands on it, including offering some pretty nice upfront perks.
Americans socked away 5% of their disposable income in January, pushing the personal savings rate to a 14-year high, according to the Commerce Department. To put that in perspective: From 2005 to early 2008, the quarterly personal-savings rate only once topped 1% -- and, at one point, even fell into negative 1% territory.
"Everyone is running scared right now," says Sam Gott, a certified financial planner in San Antonio.
That fear could pay off. Hoping to lure newfound savers into their branches -- and bolster their own balance sheets -- some banks are offering sign-up bonuses of up to $100 and attractive rates that far surpass the current record-low fed funds rate of 0% to 0.25%.
Here's how (and where) to dig up these bank deals:
Open a reward account. If you're willing to jump through a few hoops, you could earn as much as 6% by opening a so-called reward account. To get that enticing rate, you'll need to meet (and stick to) some strict requirements, including a set number of debit purchases each month, signing up for direct deposit and opting out of paper statements. Fail to stick to the plan and your rate will drop to less than 0.50%.
| Bank | APY | Details |
|---|---|---|
Southern Missouri Bank (Missouri and Arkansas) | 6.01% | Make at least 12 debit-card transactions a month, and set up at least one direct deposit or automatic payment. |
Kansas State Bank (Kansas) | 6.01% | Make at least 10 debit-card transactions a month, get statements electronically and set up at least one direct deposit or automatic payment. Must access online account monthly. |
Rocky Mountain Bank (Montana) | 6.01% | Use your debit card, get statements electronically and set up at least one direct deposit or automatic payment. |
First Robinson Savings Bank (Indiana and Illinois) | 6.01% | Make at least 10 debit-card transactions a month, get statements electronically and set up at least one direct deposit or automatic payment |
Bank of Blue Valley (Kansas) | 5.51% | Make at least 12 debit-card transactions a month and set up at least one direct deposit or automatic payment. |
Bank bonuses. To woo new customers, many banks are offering sign-on bonuses when you open a new checking or savings account. While big-name banks such as Citibank and HSBC offer widely-promoted deals, local community banks and credit unions may also extend such bonuses, says Gott.
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| Bank | Bonus | Details | |||
|---|---|---|---|---|---|
Citibank | $25 | Open and fund an Ultimate Savings Account with $1,000 by April 30. The account carries a 2.1% APY. You must maintain the balance for at least three months. | |||
Compass Bank | $100 | Open a Build-to-Order Free Checking account with a minimum deposit of $100 by March 21. You must set up direct deposit, and opt out of paper statements. | |||
HSBC | $25 to $75 | Open either of two eligible checking accounts by March 31. Must maintain a minimum balance in combined HSBC accounts to avoid a $15 monthly maintenance fee. | |||
M&T Bank | $25 to $50 | Open and fund a new checking account by April 4. M&T Direct Checking (free when you sign up for direct deposit) yields $100. | |||
Wachovia | $25 | Customer gets a bonus for enticing a friend to open a Free Checking Account with a minimum deposit of $100. Offer expires Dec. 31. |
Online-only savings accounts. Don't want to jump through all the hoops of a reward account to get a better rate? Try going online where you can still snag an annual percentage yield of more than 2.4%, says Greg McBride, senior financial analyst for Bankrate.com.
| Bank | APY | Details | |
|---|---|---|---|
GMAC Bank (Midvale, Utah) | 2.65% | $1 minimum deposit to open, no minimum balance, no monthly service fees. | |
Beverly National Bank Online (Beverly, Mass.) | 2.6% | $5,000 minimum deposit to open. Must maintain $5,000 balance to avoid $15-a-month maintenance fee. | |
Heartland Bank Direct (St. Louis) | 2.55% | $500 minimum deposit to open, no minimum balance, no monthly fees. | |
Goldwater Bank (Scottsdale, Ariz.) | 2.49% | $1,500 minimum deposit to open. Must maintain $1,000 minimum balance or pay monthly $5 maintenance fee. | |
FNBO Direct (Omaha, Neb.) | 2.4% | $1 minimum deposit to open, no minimum balance, no monthly service fees. |
This article was reported and written by Kelli B. Grant for SmartMoney.
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