With an uncertain economy that could remain unpredictable for some time, Americans are saving money at a higher rate than they have in several years. In January, Americans saved 5% of their income, a percentage that has not been reached since 1995. This is a big change, as there have been several months in the last few years where the savings rate has actually been negative, meaning that people were spending more than they were actually earning.

At the same time that people are saving at a higher rate, banks are struggling to maintain a strong deposit base as borrowers become more unpredictable in making their monthly payments. In a low interest rate environment, savers are looking for ways to earn at least a little bit of interest on the cash they are putting away.

Banks are offering attractive incentives to attract new customers in hope of bolstering balance sheets and strengthening they client base. Some banks are offering cash for customers who establish and fund new accounts. Some banks offer up to $100 for new customers who open accounts. Other banks are using interest rates to attract new customers. The average interest rate for savings in the US right now is considerably less than 1%. With some banks offering rates that exceed 6%, you can do well as a saver if you know where to look.

While it can be an inconvenience to open a new bank account, these incentives can make a big difference in the returns generated by your cash balances. It is important to note that these accounts have some fine print that you should understand before moving your money. With some accounts, you will only get the beneficial rate if you establish a direct deposit to the bank account. With others, you must have a minimum balance or limit your transactions in order to maintain a higher rate.

The internet is a great place to start when looking for attractive savings rates. There are online savings accounts that have attractive rates and tools to seek and find the highest bank deposit rates in your area. The increased importance of saving money is great, but spending a little time researching your saving option can make a huge difference on how hard your money is working for you.

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Tags: bank account, banks, Incentives, Rates, savings

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