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.
Contents
- 1 All America Bank
- 2 Ally
- 3 Alliant
- 4 American Express
- 5 Barclays Savings
- 6 BBVA
- 7 BMO Harris
- 8 Capital One
- 9 Capital One 360
- 10 CIBC USA
- 11 CIT Bank
- 12 Discover
- 13 HSBC
- 14 LiveOak
- 15 Marcus
- 16 Memory Bank
- 17 MySavingsDirect
- 18 Northpointe
- 19 Purepoint
- 20 Redneck Bank
- 21 Salem Five
- 22 Sallie Mae
- 23 Synchrony
- 24 UFB Direct
- 25 United Bank
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
- Doesn’t automatically increase rates
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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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.
+1
+2
Doc you forgot to add Salem Five to this list.
I didn’t forget to add them, this is a community resource and I don’t know if they do or don’t raise rates.
Salem Five will only raise rates if you request it. I learned that from this very site.
Thanks, added =)
Added, thanks
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.
Alliant has now moved out ahead of Ally to raise its rates quickly the last two times – now at 1.95% for savings.
What about WF, Chase, Citibank?
Do these matter? They aren’t in the same league as the High-yield savings accounts in the article.
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.
Dividing by zero error
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.
This is a community run resource, if you have datapoints on any of these let me know and I’ll add them. I personally don’t keep track of those guys because the rates they offer are essentially 0%
Citi is offering 2.21% on their Accelerate Savings in September 2019. I transferred funds from existing savings/checking accounts that I had previously opened for a sign on bonus. Only had to leave a minimal amount in existing accounts to keep them open.
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.
Thanks, added
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.
Done
CIBC USA auto-increases.
American Express Bank consistently raises rates for existing customers.
They are currently @ 1.90%.
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
American Express Savings automatically increases the rate as well. Quick transfers to boot.
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
made this clearer
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/
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.
I was auto bumped up as well
MemoryBank does automatically raise rates. Their last increase in September was automatically applied to my money market account.
Very useful list to have.
For Capital One, does it make sense to list Capital One 360 (the online accounts) separately too?