Why fintech companies keep launching their own banking products

first_img continue reading » While anyone could purchase a Certificate of Deposit (CD) that paid over 5% APY just a decade ago, the average rate for a 12-month CD is now just 0.59%. Worse, the average savings account rate is only 0.10%, which adds up to almost nothing regardless of how long you let your money grow.This just goes to show that low interest rates can be good for housing and borrowing but terrible when it comes to preserving capital and growing wealth — at least a good part of the time.Fortunately, an array of online banks have saved the day by offering better-than-average rates over the last few years. This includes the CIT Bank Savings Builder Account, which offers a 2.30% APY on balances of $25,000 or more or on accounts that post a deposit of at least $100 each month. This amount of interest won’t help you grow rich, but it’s definitely better than nothing — and more than you’ll get with the average savings account. ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more