As rates go down, should you switch high-yield savings accounts? - Business Insider

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If you switch banks, remember that the new bank could drop its rates, too

But some companies' rates are falling more than others.

If you know you want to keep your money in savings, but your rate is dropping, should you switch high-yield savings accounts? Here are a few things to consider when making your decision.Maybe your account's rate has dropped to 0.26%. Your friend has an account with a different company, and their rate has only decreased to 1.50%. Should you consider switching to their bank?. "But I would look at it through the prism of 'Next week [the new bank account] could be at 0.26%.

"If your competition's at 0.26%, you could drop down to 0.62% and still be competitive," Mahaffy says. The problem is that we don't know whether a company's rate will drop or stay relatively high. If you decide to switch, remember that a falling rate is a possibility.Setting up a high-yield savings account isn't rocket science, but it does require a bit of time and effort.

 

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