AMERICA'S BEST BANKS 2023
Newsweek US|November 18, 2022
With inflation high and interest rates rising, you need a bank that helps you make the most of every dollar more than ever
NUTHAWUT SOMSUK
AMERICA'S BEST BANKS 2023

AFTER MONTHS OF RECORD-BREAKING price increases on food, gas and other basics of everyday life, it's never been more important to bank with a financial institution that helps you maximize the power of every dollar.

While no bank or credit union offers payouts that come close to keeping pace with inflation, institutions have been steadily hiking rates this year in response to the Federal Reserve's record interest-rate increases. Last October, the average savings account paid just 0.06 percent interest. Today, that's up to 0.21 percent, and top-yielding accounts offer more than 3 percent. Payouts haven't been that high since 2010.

Still, that's just a drop in the proverbial bucket compared with the staggering 8.2 percent annualized rise in consumer prices over the past 12 months. That makes top rates only one factor to consider when choosing a bank these days.

Finding an institution that offers bigger incentives, like cashback or other rewards programs and fewer-than-average fees, also ranks highly for customers on the hunt for a new bank, a J.D. Power surv recently found.

Some banks have been listening. Over the past year, major players, like Capital One, Bank of America, Citibank and U.S. Bank, have reduced or eliminated their fees for overdrafts and other transgressions or offered more ways to avoid maintenance fees. "Many people view these overdraft fees as predatory," says Ken Tumin, founder of DepositAccounts.com. "This change will help a lot of people, particularly those who can least afford to pay a $35 overdraft fee." Many institutions, though, give with one hand and take with the other, by increasing different charges to offset the lost revenue from overdraft fees, says Tumin. Free paper statements are all but a thing of the past. And ATM fees continue to rise as more people use digital payment systems like Zelle instead of cash, making it costlier for banks to maintain their ATMs.

This story is from the November 18, 2022 edition of Newsweek US.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

This story is from the November 18, 2022 edition of Newsweek US.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.

MORE STORIES FROM NEWSWEEK USView All
Ramy Youssef
Newsweek US

Ramy Youssef

DESCRIBING RAMY YOUSSEF'S WORK ISN'T EASY, BECAUSE HE REFUSES TO settle on just one thing. \"I feel really inspired to connect in the way that it makes sense.\"

time-read
2 mins  |
March 29 - April 05, 2024 (Double Issue)
Tobias Menzies
Newsweek US

Tobias Menzies

HOW MUCH DO WE REALLY KNOW ABOUT THE assassination of President Abraham Lincoln? That's a question Tobias Menzies hopes to answer in Apple TV+'s Manhunt (March 15).

time-read
1 min  |
March 29 - April 05, 2024 (Double Issue)
The Fall and Rise of Katt Williams
Newsweek US

The Fall and Rise of Katt Williams

He's had a string of run-ins with the law, yet the comedian's popularity continues to grow-with a recent podcast appearance blowing up the internet

time-read
6 mins  |
March 29 - April 05, 2024 (Double Issue)
AMERICA'S Greatest Workplaces for JOB STARTERS 2024
Newsweek US

AMERICA'S Greatest Workplaces for JOB STARTERS 2024

Getting a career started is never easy. First-day stumbling blocks can give way to larger questions about choosing the right career path. Imposter syndrome, information overload, the challenge of new colleagues: it's almost enough to make you miss the routine of sending out endless résumés to online job descriptions.

time-read
3 mins  |
March 29 - April 05, 2024 (Double Issue)
THE INCONCEIVABLE SEARCH FOR SPERM
Newsweek US

THE INCONCEIVABLE SEARCH FOR SPERM

Making MOTHERHOOD a reality in the face of virtually every cultural taboo

time-read
10+ mins  |
March 29 - April 05, 2024 (Double Issue)
I'm Suing Harvard Over Rife Antisemitism
Newsweek US

I'm Suing Harvard Over Rife Antisemitism

I applied to the university's Divinity School to be an ambassador for Orthodox Jews and build bridges with other cultures; instead I'm battling discrimination

time-read
4 mins  |
March 29 - April 05, 2024 (Double Issue)
Gen Z's Pockets Full of Cash
Newsweek US

Gen Z's Pockets Full of Cash

Digital wallets and bank cards might appear to be the modern way to pay, but physical money is making a comeback among young adults

time-read
4 mins  |
March 29 - April 05, 2024 (Double Issue)
Biden's Age Problem Tears Democrats Apart
Newsweek US

Biden's Age Problem Tears Democrats Apart

After being depicted as an 'elderly man with a poor memory,' questions surrounding the president's advanced years are dividing his party

time-read
6 mins  |
March 29 - April 05, 2024 (Double Issue)
Country Has Won Our Achy Breaky Hearts
Newsweek US

Country Has Won Our Achy Breaky Hearts

The genre has never been so popular-and with the likes of Beyoncé reminding fans of its roots, its mainstream appeal looks set to grow and grow

time-read
6 mins  |
March 22, 2024
'Deadly Risk' of Fat-Loss Drugs
Newsweek US

'Deadly Risk' of Fat-Loss Drugs

Diabetes treatment Ozempic has become popular among dieters due to its weightloss side effect, but a study warns of a link between the drug and suicidal thoughts

time-read
5 mins  |
March 22, 2024