Denver savings rates from “mega-banks” lower than national average

Annual percentage yield for savings accounts held at “mega-banks” in Denver are 53 percent lower than the national average, according to a new study by WalletHub.

The study analyzed 10 of the country’s largest banks, including CitiBank, Capital One and Bank of America. Three of these ten banks have branches in Denver, including Wells Fargo, US Bank and JP Morgan Chase, according to the study.

The average standard annual percentage yield, or APY, for savings accounts at these banks in the Denver metro area is 0.017, according to WalletHub, 53 percent lower than the national average of 0.036.

Denver ranks No. 35 in the country for APY offered by these banks, tied with Boise, Idaho, Des Moines, Iowa, Albuquerque, N.M., Memphis Tenn., and Salt Lake City.

New Orleans, La. mega banks have the highest yield for savings accounts, offering 0.055 percent, 53 percent higher than the national average.

WalletHub conducted the study to determine how local competition among national banks impacts consumer rates. Interest rates vary by as much as 550 percent from one city to another, depending on which major banks have a significant presence in an area, according to the study.

The country’s 10 largest banks control more than 70 percent of the deposit account market, according to WalletHub, which means that the majority of Americans keep their money in one of these banks.

Molly Armbrister covers real estate, banking and health care for the Northern Colorado Business Report. She can be reached at 970-232-3139, marmbrister@ncbr.com or twitter.com/MArmbristerNCBR

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