LOS ANGELES, April 29, 2014 /PRNewswire/ -- New data from leading personal finance website GOBankingRates.com reveals average checking account interest rates are 77 percent better than savings account rates. The study surveyed interest rates from more than 6,000 national, community and online banks and credit unions across the United States, ranking the top 10 checking and savings account rates in the country.
"Interest rates on traditional savings accounts are still frustratingly low, even though online banks do offer higher-than-average savings rates. Lower rates have forced many consumers to seek out a less-conventional savings vehicle, like a checking account," said Jennifer Calonia, senior editor of GOBankingRates. "Banks and credit unions today are able to offer these higher rates on checking accounts because 15 percent of account holders are still regularly overdrawing and incurring a substantial fee, which financial institutions rely on for revenue."
Checking account rates offer 0.23% APY on average, but go as high as 3.25% APY.
The 10 best checking account rates in the country come from 19 financial institutions.
Only community banks and credit unions offered the highest rates; no national banks ranked.
A majority of the top rates come from financial institutions in the Midwest.
Among the best checking account rates in the United States, seven are Kasasa products.
"Community banks and credit unions that offer Kasasa accounts can offer yields that are higher than the national average because we ask our account holders to do a few things most consumers do already that save or make the bank or credit union money," said Gabe Krajicek, CEO of Kasasa. "Unlike most financial institutions, we pass those savings right back along to the consumer in the form of earning rewards like high yields."
GOBankingRates is a personal finance website that connects consumers with the best interest rates nationwide. Its editors have been featured on several top media outlets, including U.S. News & World Report, Yahoo! Finance, Forbes, The Street, Huffington Post and more.Data for this study was pulled from GOBankingRates' database, which includes interest rates from Informa Research Services, on April 7, 2014.