Where You Can Get the Best Interest Rates on Borrowing and Saving

Fixing money issues
Fixing money issues

We're just over a week into the new year, and if you're one of the people who resolved to try to get your finances straightened out in 2013, it's time to get rolling.

To help you with one aspect of that comprehensive task, we've assembled some lists of institutions that could give you a leg up: banks and credit unions that are currently paying superior (high) interest rates on your savings, and those that are charging superior (low) interest rates on your borrowing.

Big Payouts (Relatively Speaking)

Nationally, the interest rates paid on money market and savings accounts are averaging a mere 0.1 percent now -- but not all banks are so stingy.

Bankrate.com keeps a running tally of some of the most generous institutions. Here are just a few currently running near the head of the pack:

Bank

Interest Rate

Minimum to Open

Union Federal Savings Bank

1.05%

$2,500

EverBank (EVER)

1%

$1,500

Barclays (BCS)

1%

No minimum

CIT Bank (CIT)

1%

$25,000

ableBanking (a division of Northeast Bank)(NBN)

0.96%

$1,000

Ally Bank

0.95%

No minimum

American Express (AXP)

0.9%

No minimum

FNBO Direct

0.85%

$1

Colorado Federal Savings Bank

0.85%

$2,500

MetLife Bank

0.85%

$10,000


Not-Quite-as-Big Payouts

Credit unions can sometimes offer a better financial alternative for consumers. But because they may not charge as much on their loans, they have less money to pay out on interest on deposits. Still, given that they are nonprofit institutions, it should come as little surprise that quite a few of them out there easily beat the average 0.1 percent payout noted above. Here are a few that Bankrate likes:

Credit Union

Interest Rate

Minimum to Open

State Employees Credit Union

0.75%

$250

Star One Credit Union

0.50%

$50

Teachers Federal Credit Union (FCU)

0.50%

$2,500

Randolph-Brooks FCU

0.45%

$2,500

Tinker FCU

0.45%

$10,000

Navy FCU

0.40%

$2,500

Visions FCU

0.35%

$25

Bethpage FCU

0.35%

$500

Logix FCU

0.35%

$2,500

United Nations FCU

0.35%

$2,500

And Speaking of Charges...

A second survey, just out this month, flips the coin over and offers consumers a few ideas for how to save money by not spending as much on credit card interest.

Nationally, credit card providers charge an average of 9.9 percent annual interest on credit card balances. But in its quarterly update on banks and credit unions that offer lower-than-average rates on their plastic, SNL Financial reveals the 10 banks with the best deals on "platinum" tier credit cards.

Bank

Interest rate

First Tennessee Bank (FHN)

5.15%

Hills Bank and Trust

5.25%

Vectra Bank Colorado

5.25%

Farmers State Bank

5.75%

Sunflower Bank

6%

Trustmark National Bank (TRMK)

6.15%

American Bank and Trust Co.

6.24%

Bank of Tampa

6.25%

First State Bank of DeKalb County

6.25%

River Valley Community Bank

6.74%


Good Credit

When it comes to credit cards, the nonprofit, consumer-focused side of credit unions shines through. Because they earmark less money for interest on deposits -- and for paying out to shareholders and executives -- credit unions don't need to charge their customers quite as much interest on their charge cards. Consequently, many American credit unions clobber the national average interest rate on credit cards, and beat the best of their traditional commercial banking rivals as well:

Credit Union

Interest rate

Educational Systems Federal Credit Union (FCU)

3.25%

Energy One FCU

4.25%

Sandia Area FCU

4.99%

New England FCU

5.15%

San Francisco FCU

5.15%

Beach Municipal FCU

5.24%

Red Crown FCU

5.25%

TruService Community FCU

5.25%

Randolph-Brooks FCU

5.70%

Apple FCU

5.74%


Do you know of an even better deal than the ones named above? Tell us in the comments section below! With 2013 just begun, there's plenty of time for us to save some money this new year, together.

Motley Fool contributor Rich Smith is currently researching credit unions that offer online stock investing as well as great rates on savings and credit cards. If you know of one, drop him a line.

The Motley Fool recommends American Express Company
.

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