Bask Bank boosted the yield on its Interest Savings Account to 1.5 percent Monday, making it one of the highest savings rates available.
Bask introduced the account in February, and the new rate reflects a 0.25 percentage point rise. The account’s annual percentage yield (APY) is more than 20 times the national average interest rate for savings accounts. Yields paid on savings accounts generally are variable, and tend to rise and fall based on several factors, including actions taken by the Federal Reserve.
The Fed hiked the federal funds rates by 0.5 percentage points in May and 0.25 percentage points in March. A rising rate environment for deposit accounts often results when the Fed raises rates.
The national average interest rate for savings accounts is 0.07 percent, according to Bankrate’s June 8 weekly survey of institutions.
There’s no minimum balance to open the Bask Bank Interest Savings Account, though an initial deposit must be made within 60 days of account opening. The account also charges no monthly maintenance fees.
The lack of maintenance fees and minimum balance requirements helped Bask’s Interest Savings Account achieve 5 out of 5 stars in Bankrate’s recent review of Bask Bank. The account has only been offered since February, however, so it’s unknown whether Bask will consistently offer a high yield.
A second savings account offered by Bask Bank, its Mileage Savings Account, earns American Airlines miles rather than interest.