Worried About Plummeting Interest Rates? Here's How to Keep Earning Big With Your Savings
KEY POINTS
- A bank bonus is an easy way to earn extra cash with a new bank account.
- The Discover® Online Savings account is a popular choice with a high yield and a bonus for first-time customers.
It was fun while it lasted. For over a year, banks were offering their best rates in decades on high-yield savings accounts and CDs. But on Sept. 18, the Federal Reserve slashed the federal funds rate by half-a-percentage-point. Rates on banking products have since come down accordingly.
Another rate cut is expected in November. If you have a large amount of money saved, it's disappointing to suddenly be earning much less.
Fortunately, there's still a way to get a sizable return on your savings. You could even end up earning more than before.
Maximize your savings with a bank bonus
Banks compete for your business. As an incentive to open an account, many banks offer cash bonuses for new clients. These are available with checking accounts and savings accounts. Each bonus has conditions you need to meet to earn it. These vary, but they're usually one or more of the following:
Our Picks for the Best High-Yield Savings Accounts of 2024
| Product | APY | Min. to Earn | |
American Express® High Yield Savings
Member FDIC.
APY
3.80%
Rate info
3.80% annual percentage yield as of January 4, 2025. Terms apply.
Min. to earn
$0
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
3.80%
Rate info
3.80% annual percentage yield as of January 4, 2025. Terms apply.
|
$0
|
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
Capital One 360 Performance Savings
Member FDIC.
APY
3.80%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
Min. to earn
$0
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
3.80%
Rate info
See Capital One website for most up-to-date rates. Advertised Annual Percentage Yield (APY) is variable and accurate as of Dec. 6, 2024. Rates are subject to change at any time before or after account opening.
|
$0
|
Open Account for Capital One 360 Performance Savings
On Capital One's Secure Website. |
Western Alliance Bank High-Yield Savings Premier
Member FDIC.
APY
4.40%
Rate info
The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
Min. to earn
$500 to open, $0.01 for max APY
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
4.40%
Rate info
The annual percentage yield (APY) is accurate as of Jan. 2, 2025, and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
|
$500 to open, $0.01 for max APY
|
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
- Meet a minimum deposit requirement
- Receive a minimum amount of direct deposits
- Meet a minimum number of qualifying activities, such as deposits or debit card purchases
A bank bonus is an easy way to make up for lower savings rates. You could earn an extra $100 or more by meeting the requirements for one of these bonuses. And if you open a high-yield savings account with a bonus, you could also keep earning a competitive rate on your money.
For a bonus opportunity and a high interest rate, consider the Discover® Online Savings account. It has a 3.75% APY and is currently offering a limited-time bonus for first-time customers who use offer code TMF924. Click here to learn more and open an account today.
What to know about bank account bonuses
A bank bonus is a nice incentive to open a new account. But before you commit, make sure it's also a quality bank account you'll want to continue using. Moving your money around from account to account is inconvenient. It could even lead to your bonus being clawed back, if you don't maintain a minimum balance long enough or if you close the account too quickly.
Read the terms for a bank bonus so you're aware of all the rules. And if it's a savings account you're after, look for these features, as well:
- A high APY
- FDIC insurance coverage
- No monthly maintenance fees
Features like these are why I recommended the Discover® Online Savings account. It doesn't have the biggest bonus on the market. But it still has a generous bonus, along with a high APY, FDIC insurance, and no monthly fees. It's rare to get all those perks and a bonus in a single account. To find out more, check out our full review to see all its benefits.
Interest rates have dropped, and all indications are that they'll go down further in the near future. If you're disappointed and want to earn extra money with your savings, check out bank bonuses, because there are lots of opportunities for bonus cash available.
Our Research Expert
Lyle Daly is a freelance writer who has been covering personal finance since 2016.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.