With rising interest rates, consumers face a Catch-22.
And yet the deposit rate, which is the interest rate banks pay to their account holders, barely budges — the current average interest rate on a savings account is still near rock bottom at only 0.18 percent, according to Bankrate.
"Banks are notorious for dropping rates quickly and raising them slowly," said Ric Edelman, founder and executive chairman of Edelman Financial Services.
In fact, banks' terms allow them to be slower to raise rates on savings products than they are on loans.
However, competition among online banks is finally paying off.
"They keep raising rates in an effort to outdo each other," said Greg McBride, chief financial analyst at Bankrate.com. "You can find significantly higher savings rates by shopping around."
Currently, top-yielding savings accounts could be as high as 2 percent, according to Bankrate. (Online banks are able to offer higher-yielding accounts online because they come with less overhead expenses than traditional bank accounts.)