6 High Interest Savings Accounts
If you have a big pile of cash sitting in a savings account, at least transfer it over into a high-Interest savings account. You can earn anywhere from 3-4% per year right now. Risk-free up to $250k.
A high-Interest savings account is a great way to get the most out of your money. High Interest savings accounts work the same way as traditional savings accounts but offer you more yield on your money.
With a traditional savings account, your interest rate may be as low as 0.01%, or basically nothing.
But with a high-Interest savings account, you can earn significantly more. With no risk, thanks to FDIC insurance. (AKA, the government backs your deposits to FDIC insured banks, up to $250k per bank).
One of the advantages of the Federal Reserve increasing interest rates is its effect on high-Interest savings accounts. When the Federal Reserve raises interest rates, the yields on high-Interest savings accounts also tend to grow. This allows savers to earn more on their savings, as the higher interest rates increase the amount of money they can make from their cash.
You can quickly transfer funds from your savings account to your high-Interest savings accounts and withdraw your funds at any time without any penalties.
Here are 6 High-Interest Savings Accounts:
1.) Ally Bank: 3.4% https://www.ally.com/bank/online-savings-account/
Ally Bank is one of the biggest online banks. They also offer a “bucket feature” where you can divide up your savings into different categories. This is great for those of you who are saving for multiple different things or goals and want to keep your savings organized.
2.) Capital One: 3.4% https://www.capitalone.com/bank/savings-accounts/online-performance-savings-account/
Capital One is a reputable bank with a great digital banking platform. They also offer specific accounts for kids and teens.
3.) Citi Bank Accelerate: 3.4% https://online.citi.com/US/ag/banking/citi-accelerate-savings
Citi Bank offers a slightly higher yield than many other high-yield accounts. However, it is not available in every state. You can check their website by tapping the link above to see if they offer their high-yield savings account in your area.
4.) LendingClub: 4% https://www.lendingclub.com/personal-banking/high-yield-savings
LendingClub offers a strong rate of return. They do have a $100 minimum in order to open an account. You also get an ATM card to access your money in an emergency. LendingClub is a smaller bank compared to some of the others on this list.
5.) SoFi: 3.75% (with direct deposit) https://www.sofi.com/banking/savings-account/
SoFi offers a competitive rate of 3.75% if you use their bank for direct deposits. They also allow you to turn on their “roundup” feature, where all of your spending is rounded up and sent to your savings account. A clever way to save some extra money.
6.) WealthFront: 4.05% https://www.wealthfront.com/cash
WealthFront offers one of the highest rates for savings accounts on the market. Their platform is also easy to navigate and beginner friendly. WealthFront is a smaller bank compared to some of the others on this list.
Investing > Saving
Investing your money in the stock market over savings accounts is always ideal, as you’ll likely earn significantly more over the long term.
But if you have a big pile of cash sitting around, at the very least, keep it in a high-Interest savings account.
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As Always: Buy things that pay you to own them.
-Josh
Blog Post: #081
