If you’ve got any extra money lying around in a savings account, and it’s not paying you at least 0.6% interest right now, there is no reason why you shouldn’t be taking full advantage of a high-yield savings account.
there are plenty of them online. And they’re all paying at least 0.6% interest right now, just keep in mind that to make this list, they have to have a checking account associated with the savings account. And then they’re all FDIC insured. And they’re available to everyone in the United States.
Because I’ll be honest, if you just do a little bit of research, you can find banks out there that are going to have slightly better rates than the ones that I’m talking about. But a lot of the time, they’re not going to have checking accounts. And sometimes they don’t work in every single state.
What is a High yield Saving account?
If you want to know what a high-yield savings account is,
it’s just a fancy way of saying it’s a bank account that pays high interest.
And there’s really nothing more complicated about it.
Because if you actually call up your bank today and ask them how much interest you’re making on your savings account, they’ll probably tell you that it’s close to zero. And that is a total ripoff. Because there are so many banks out there that will actually pay you a lot more with a lot of the same features and benefits. So there’s no reason not to.
I mean, obviously, if you only have 1000 bucks in your bank account, it’s probably not worth your time to earn about 6 bucks a year in interest. But on the flip side, if you have $10,000 in your bank account, it probably is worth your time to make about 60 bucks a year in interest,
if you’re looking at a high-yield savings account, versus one that’s not paying you hardly any interest. One thing to keep in mind, though, is that these rates are all variable. So they’re going to fluctuate based on the economy and they can go up and they can go down.
So depending on when you read this article, the rates could be slightly different. But let’s just cross our fingers that they go up rather than down. Because that’s always better for all of us. Also, just be aware that banks can change their terms at any time.
#1 Ally Bank
So the first bank that I want to talk about is a very popular one online, and they’re called Ally Bank. And currently, they have a savings account rate of 0.6%, which is extremely competitive. But a lot of the time I’ve seen them being a little bit more competitive due to the Corona pandemic in the last 6 months rates are gown down
Points to Consider:
- No monthly balance required
- No monthly charges
- Pays interest in checking accounts.
- No Monthly maintenance fees
- Free Standard or expedited ACH transfers
- Free Copies of online statements
- Free Incoming wires (domestic and international)
- Official/cashier’s checks
I had no idea that credit card companies actually had bank accounts, but they do, and discover is actually really competitive. And they have a really good checking account as well.
- the savings account is at 0.55%, which is competitive.
- do not charge any fees. So that means they don’t have any monthly fees,
- and they don’t require any minimum balances as well.
- 1% cash back for up to $3,000 in purchases every single month
- the debit card can also be used at over 60,000 ATM locations.
on top of that discover also makes it very clear that their checking account doesn’t have any fees as well. I’ll also mention that discover has some of the best CD rates as well. So if you’re willing to lock up at least 2500 bucks into one of their CD accounts, then right now you can earn 2% interest on only a 12-month CD. And that is really competitive when it comes to CD rates.
So keep discovering in mind if you want to do one of those.
#3 Capital One
They have a savings account right now that pays out 0.5%. And then on top of that, they also don’t have any monthly fees and they don’t require any minimum balances as well.
Capital One also has a chance checking account that pays out 2/10. And that’s on any balance. So no matter how much money you have with them, you are going to get a very competitive rate when it comes to a checking account. And that’s just really good all around. Capital One also has physical locations as well. So if you’re the type of person that likes to go into the bank to take care of things, you can do that with Capital One. But just keep in mind that they’re not located in every state.
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Best Credit Cards with No Annual Fee + No Foreign Transaction Fees
#4 CIT Bank
Now the last bank on my list of high-yield savings accounts goes to CIT bank. But don’t get that confused with Citibank. Because these are two different entities that we’re talking about here. And I’m talking about CIT bank, they currently offer a savings account that has a yield of 0.5%.
Now, I’ll tell you right now that in order to get the best rates from CIT bank, you do have to have a minimum balance of at least $25,000, which honestly, I don’t think that’s very good.
But the good news is, is that if you just make a minimum deposit of at least 100 bucks per month, then you can get their highest rates. And I don’t think that’s very hard to do. And honestly, if your goal, in the end, is to be making money off of your high yield savings account, then depositing just 100 bucks a month shouldn’t really be that hard to do anyway,
CIT Bank also pays out a quarter of a point on their checking accounts if you have over $25,000 in them. And then if you have less than $25,000, they’ll actually pay a 10th of a point. And that’s really good as well.