WalletHub analyzed interest rates, rewards, and fees across various credit segments and account types, highlighting the most important trends in our quarterly landscape reports. To help people better understand the market, WalletHub released its latest Credit Card Landscape Report and Banking Landscape Report. You can check out some highlights below.
Banking Landscape Key Trends
- Account Rate Increases: Savings account rates increased by 143% in the past year, while checking account rates increased by 126%. CD rates went up by 95%.
- Online Savings’ Leading Rates: Online-only personal savings accounts provide the market’s highest interest rates, offering 3.7X higher returns than traditional checking accounts.
- Credit Union Benefits: Credit unions offer 65X higher interest rates on checking accounts than regional banks (1.94% vs. 0.03% on average).
- High Yields Available: The highest interest rate on a checking account is 5.15%, which you can get from the Redneck Bank Rewards Checking Account. The highest interest rate on a savings account is 5.55%, which you can get from the Flagstar Bank Savings Accounts.
Full report: https://wallethub.com/edu/
Credit Card Landscape Key Trends
- APRs on New Offers: The average interest rate for new credit card offers is 22.89%, as of Q1 2024, up from 22.05% in Q1 2023.
- Annual Fee Trends: The average credit card annual fee is $22.29 (3.29% higher vs. Q4 2023).
- Interest-Free Promotions: The longest 0% introductory period available right now is 21 months, which you can get with the Wells Fargo Reflect® Card.
Full report: https://wallethub.com/edu/cc/
“Consumers should be careful to avoid carrying credit card balances from month to month without a 0% promotion, given how high ongoing APRs have become. Regular interest rates on credit card offers are now close to 23% and have increased by around 4% in the past year alone. This year-over-year increase has cost consumers billions of dollars so far, according to WalletHub’s analysis. Even the most creditworthy consumers are feeling the pain. Interest rates on credit cards for people with excellent credit have increased the most in the past year, rising by nearly 6%.”---
“The good thing about high interest rates is that bank accounts are finally providing a decent yield. Savings and checking account APYs increased by more than 125% in the past year. In order to get the best rates, consumers need to evaluate their options, as the average online-only personal savings account offers almost a 4X higher rate than a branch-based account. If you haven’t shopped around for a new bank account in a while, checking out the best deals available right now could certainly be worth your while. Even if you’re struggling with debt, building an emergency fund is essential, and a high APY can make that easier.”
- John Kiernan, WalletHub Editor
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