Want to learn how to get the most out of your savings? Upgrade your life and your finances by opening a high-yield savings account. According to the FDIC, the average national interest rate on savings accounts is presently 0.04%. This national average includes savings account holders with average to larger account balances. Before the Great Recession, local banks offered rates that were larger than 3%, but that is not the current reality.
These days you're more likely to find a better interest rate for your savings accounts at an online bank, plus these banks usually provide higher interest rates independent of your account balances. Below is a list of 7 online banks that offer some of the highest interest rates and benefits around.
Varo helps you to save money effortlessly and boasts an insanely high APY of up to 3%, which is higher than the majority of high-yield savings accounts. You don't even need a minimum balance to open an account and there aren't any fees. It's hard to beat Varo's benefits.
Initially, a savings account holder earns 0.2% APY, but that number can quickly rise to a 3% APY when at least five qualifying purchases are made using the Varo Bank Visa Debit Card and account holders receive total direct deposits of $1,000 or more. The only catch is your account balance can not exceed $5,000 for the entire calendar month.
2. Consumers Credit Union
Consumers Credit Union's (CCU) high-yield savings account or "Smart Saver" account gives you the potential to earn 1.50% APY, as long as you have a CCU checking account. But, you're required to deposit a $500 minimum into your CCU checking account every month. If you don't want to be bothered with the checking account, you can still open a CCU checking account and earn 0.25% APY.
Unfortunately, there are a few fees and requirements for their high-yield savings account. The Smart Saver account requires a minimum deposit of $50 and a maximum deposit of $1,000 into your savings account monthly. The fees to become a Consumers Credit Union member and open accounts through their credit union is an extremely low fee of $5 per member.
SmartyPig by Sallie Mae is a free-of-charge piggy bank that helps you to save for financial goals, like retirement, vacays, or holiday gifts. SmartyPig offers great APY rates, so you can crush your savings goals quicker. Earn up to 0.70% APY if you have under $10,000 in your savings account, and 0.45% APY if you have over $10,000 in your account.
The best part is that there are no fees to join, no fees to save, no fees to withdraw, no minimum fee and you can open multiple savings accounts for specific savings goals!
4. Nationwide by Axos Bank
Nationwide by Axos Bank provides a 0.70% APY when you have a "My Savings" account and a checking account through their bank. But, if you don't have a checking account through them, you can still benefit from a 0.40% APY on your savings account.
Fortunately, with Nationwide, you don't have to worry about any pesky fees because the online bank doesn't have any monthly maintenance fees, nor a minimum balance requirement after the initial $100 deposit.
5. Ally Bank
Ally Bank allows you to divvy up your savings to reach separate financial goals, without the hassle of multiple bank accounts. Also, they offer a 0.50% APY when you have at least $5,000 deposited. Assign portions of your savings for up to 10 savings buckets in your online accounts, while still earning interest on your total balance. Ally Bank makes it easy to save by offering automatic recurring transfers from your checking into your savings account.
Even though Ally Bank provides incredible features, it still offers zero dollars in monthly maintenance fees and doesn't require a minimum opening deposit. Although, it's good to note that you can only make 6 transactions a month before you're charged $10 per transaction.
6. Synchrony Bank
Save for tomorrow with Synchrony Bank's high yield savings account that offers 0.40% APY. They provide convenient withdrawals because they're a bank that never closes, so you can bank anywhere and anytime.
Head over to their website where they have a free calculator that will calculate your high-yield savings earning potential in comparison to other major banks. Synchrony Bank has no minimum balance requirement and no withdrawal fees. If you need to withdraw from an out-of-network ATM, they'll even refund you up to $5.
7. Vio Bank
Vio Bank currently provides high yield savings accounts with a strong 0.57% APY, but they claim to adjust this to stay competitive. To open a saving account, there is a $100 minimum initial deposit. If you need access to your account frequently, this may not be the account for you, since you're only allowed six withdrawals every month before you're charged $10 for each withdrawal. But, if you're looking for an account with no monthly fee, then Vio Bank could be your perfect match.
Online savings accounts offer higher interest rates to increase your savings, but they lack physical branches. Keep in mind banks that aren't online do not offer rates that can keep up with inflation as online savings accounts can. It's up to you to determine if the trade-off is worth it.
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