Posted by William Charles on November 3, 2018
Savings Accounts no image

Published on November 3rd, 2018 | by William Charles

54

Banks & Credit Unions That Do/Don’t Raise Savings Interest Rates For Existing Customers

One practice that financial institutions engage I loathe is increasing the APY rates for new savings customers, but not passing that increase onto existing customers. A lot of these financial institutions will agree to increase your rate if you request it, but it’s not automatic.

I thought the best thing to do is to try and draw some light onto this practice and also create a database of banks & credit unions that do/don’t pass on the rate increase and if it needs manual intervention or if it’s done manually. That way when you’re looking for a high yield savings account you can determine if it will truly be set and forget or if future rate increases will not be passed onto existing users. As always this is a community resource so I’ll be relying on datapoints from you, so please share them in the comments below.

All America Bank

  • Automatically increases rates

Ally

  • Automatically increases rates

Alliant

  • Automatically increases rates

American Express

  • Automatically increases rates

Barclays Savings

  • Automatically increases rates

BBVA

  • Doesn’t automatically increase rates and won’t manually adjust them either

BMO Harris

  • Doesn’t automatically increase rates and won’t manually adjust them either

Capital One

  • Automatically increases rates

Capital One 360

CIBC USA

  • Automatically increases rates

CIT Bank

  • Has previously created new types of savings accounts to get out of automatically adjusting rates. They will product change if requested according to these datapoints: 1, 2, . More details here.

Discover

  • Automatically increases rates

HSBC

  • Automatically increases rates

LiveOak

  • Automatically increases rates

Marcus

  • Automatically increases rates

Memory Bank

  • Doesn’t automatically increase rates (unsure if they will manually adjust)
  • Does automatically increase rates

MySavingsDirect

  • Does automatically increase rates: 1,

Northpointe

Purepoint

  • Automatically increases rates

Redneck Bank

  • Automatically increases rates

Salem Five

  • Doesn’t automatically increase rates
    • Will increase rates manually

Sallie Mae

  • Automatically increases rates

Synchrony

  • Automatically increases rates

UFB Direct

  • Doesn’t automatically increase rates. They will manually adjust if requested

United Bank

  • Increases APYs by requires manual intervention: 1 (sent in via e-mail)

 



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Kapni
Kapni

Great article DoC. I guess the banks have a internal competition to boast how big a fool they make out of customers. Not the interest rate for old customers is really a bad practice and banks that follow these trends raise a red flag to not to bank with them.

Phill
Phill

+1

Mike L
Mike L

+2

Keith
Keith

Doc you forgot to add Salem Five to this list.

Steve L
Steve L

In my experience, Memorybank automatically increased the savings rate percentage. Here’s the relevant part of teh email – Because of awesome customers like you, MemoryBank is taking the earning power of the Online Money Market Account from 1.85% APY to 2.25% APY*. Best of all, no action is needed on your part to start earning this great rate – the new rate will be applied to your account automatically.

TD
TD

Alliant has now moved out ahead of Ally to raise its rates quickly the last two times – now at 1.95% for savings.

DaveC
DaveC

What about WF, Chase, Citibank?

JV
JV

Do these matter? They aren’t in the same league as the High-yield savings accounts in the article.

Ben
Ben

I know right. But for completeness, here’s how those break down:

* Does not give competitive rate to existing customers automatically.

* Does not give competitive rate to existing customers who call and request it.

* Does not give competitive rate to new customers.

Lrdx
Lrdx

Dividing by zero error

Ann
Ann

Chase’s savings rates have been abysmal for many years. They were decent a decade ago (like 2%), and then gradually declined over a year or two to more like 0.02%. I have yet to see them ever go up, but they are happy to lower them on existing accounts.

arizonapv
arizonapv

BMO & BBVA are notorious for doing this. If you sign up for one of their money market accounts, you are locked in at that rate even if at a later point they advertise a higher rate. BMO will tell you to wait a week after closing before reopening. BBVA tells you that you must wait 30 days before reopening. It’s very annoying.

HarryTheFirstHarry
HarryTheFirstHarry

good stuff. Wall of Shame for the banks. Would redo the title though (Banks that do/don’t increase) since there are more good guys on this list than the bad guys.

Lightspeed
Lightspeed

CIBC USA auto-increases.

Tim D
Tim D

American Express Bank consistently raises rates for existing customers.
They are currently @ 1.90%.

bob
bob

LiveOak has been great about increasing the savings interest rates. I think it’s up to 2.0% APY now? When i joined it was. 1.7%, IIRC

SB
SB

American Express Savings automatically increases the rate as well. Quick transfers to boot.

Matt
Matt

Good info but unless I am missing something shouldn’t the title of the article read “Banks that raise you rate automatically”? You have don’t in the title but have banks listed that do raise……just sayn

jeph36
jeph36

When Memory Bank raised rates at the end of September, I was automatically bumped to the higher rate (opened account mid August). I thought they sent a note to say as much but I do not immediately see it. Maybe I already deleted that note.

https://www.doctorofcredit.com/memorybank-2-25-apy-money-market-account/

Mikey
Mikey

That wasn’t my experience with Memory at all. But I had been an accountholder for a much longer time period. I do give them credit for eliminating the monthly “requirements” that everyone needed to complete to earn their higher rate.

Dan - Legal Bank Robber
Dan - Legal Bank Robber

I was auto bumped up as well

SenorPeso
SenorPeso

MemoryBank does automatically raise rates. Their last increase in September was automatically applied to my money market account.

Yet Another Redditor

Very useful list to have.

For Capital One, does it make sense to list Capital One 360 (the online accounts) separately too?

AkJohnny
AkJohnny

amex raises rates

Mikey
Mikey

Another great DoC page to bookmark. Banks also vary widely on the minimum balance required to avoid fees/earn interest. It’s quite a job keeping track of that as well, can vary from $0 to $1000’s.

David
David

American Express automatically increases rates

COBOLCODERUSEALLCAPS

This article should be prefixed with “Wall of Shame”!

Svy
Svy

Great post, very much appreciated! According to Deposit Accounts, Northpointe now has a 2.3% MM, with rate guaranteed for 1 year, and in the notes, a poster was griping that he only had the savings account, not the MM. Bill from Northpointe posted there to say call Northpointe, and he would adjust the savings rate to match the MM and no new account needed. So the manual rate match for a different type of account seems like a positive in this case.

Justin
Justin

I’ve had no problem product changing with CIT with just a phone call. The account number doesn’t even change.

Ryan Goldstein

Incredible Bank automatically increases rates for all savings account customers.

Joe C.
Joe C.

Back when CIT raised their rates by creating the money market account, I sent a secure message asking for my savings account to be changed to the money market with the higher rate. They converted the account so I got the higher rate. I didn’t bother this time since I’m planning to close the account and switch to one that automatically raises rates. I want something easy. Hope my data point on CIT helps. Also, I can confirm Marcus automatically raises rates. I’ve has my account since before Goldman Sachs bought it from GE Capital. This list is great! Thanks Doc.

Shirley
Shirley

HSBC automatically raised their rate for me on their HSBC Direct Savings account.

Jacob
Jacob

Star One credit union, which also has a longstanding $120 sign up bonus and $60 referral bonus, automatically raises rates for existing customers and is up to 1.85% on checking and savings now. Awesome credit union, if you can get in.

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