Choosing the right bank account can have many benefits, including a savings account bonus. Many high-yield savings accounts are now offering impressive APYs, providing a guaranteed rate of return on your savings. Some banks further compete for deposits by offering a cash incentive in the form of an account bonus. But as the Fed's rate hiking campaign ends, the boon to CD rates and rates on high yield savings accounts is at risk of coming to an end.
Savings rates have been on the rise since March 2022 as the Federal Reserve raised interest rates in an attempt to combat soaring inflation. However, at its latest meeting in January, the central bank held interest rates steady once again. This pause in rate hikes means the fed funds rate will remain at a target range of 5.25% to 5.5%, the highest it’s been in 23 years. And rate cuts are expected for later this year.Since the Fed began putting a pause on rate hikes, rates on savings accounts have begun to fall. And if the Fed does indeed cut rates this year, savings rates will decrease even further. For this reason, its a good idea to lock in savings rates while they're still high.
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Savings Account BonusesFor most of the best savings account bonuses, you’ll have to meet minimum deposit and balance requirements. However, apart from this, earning these bonuses is pretty straightforward. Restrictions and fees do vary from account to account, so it’s important to do some research before opening a new account. Here are a few savings accounts that are currently offering bonuses, and how to get them.
Alliant Credit Union (The Ultimate Opportunity Savings Account)
- Bonus: $100
- Bonus requirements: Open an Ultimate Opportunity Savings Account from Alliant and deposit at least $100 a month for 12 consecutive months. Account holders must maintain an average daily minimum balance of $100, and the balance at the end of the 12-calendar-month period must be $1,200 or more in order to receive the $100 bonus deposit.
- APY: 3.10%
TD Bank (TD Signature Savings)
- Bonus: $200
- Bonus requirements: Open a new TD personal savings account online, deposit $10,000 or more in new money within 20 days, then maintain a balance of at least $10,000 for 90 days from the date the deposit requirement is initially met.
- APY: 0.01% - 4.00%
BMO Harris (Savings Builder account)
- Bonus: $5 reward each month for 12 months
- Bonus requirements: Only available for new accounts, you must save $200 or more a month to receive the reward. In order to get all 12 savings rewards, your initial deposit needs to be made in the month you opened the account. The account also has a $25 minimum opening deposit.
- APY: 0.01%