When money is sitting in a bank account, it’s idle and doesn’t really offer any returns. Most banks and accounts only offer an average of 0.06% of average percentage yield or APY.
This amount is relatively insignificant and doesn’t have much of an impact on the finances. However, there are some bank accounts that offer much better APY and better services as well.
According to Investopedia, a High-Yield Savings account:
Is an account available through a online or brick-and-mortar banks that pay a higher interest rate (or an annual percentage yield (APY)) than a traditional deposit savings account.
Here are 6 best high-yield savings accounts for you to consider:
- Description – This high-yield savings account is completely online and has a good digital network. Customers can run the account through online banking and user-friendly app.
- Interest Rate – 1.25% of APY, which is higher than the national average of 0.06%.
- Pros – This high-yield savings option offers some of the best digital experiences available today with apps available for all mobile platforms.
- Cons – Some savings accounts offer higher interest rates.
- Link – https://www.ally.com/bank/online-savings-account/
- Description – Discover is a well-established bank with a good reputation and good customer service. The online banking infrastructure is sound so account holders can easily access their accounts from mobile devices and apps.
- Interest Rate – 1.2%, which is one of the best in the market.
- Pros – There are no monthly fees, balance requirements, and opening deposit requirements so it’s easy to open an account even on a tight budget.
- Cons – There are other banks that offer better services along with top savings account rates.
- Link – https://www.discover.com/online-banking/
- Description – Alliant is a non-profit credit union rather than a bank and is based in Chicago. Most credit unions are difficult to get into, but Alliant makes the entire process easy, which is why it’s a great alternative to other options mentioned on this list.
- Interest Rate – This account provides 1.16% APY on high-yield savings account with a balance of $100 or more.
- Pros – People can join with just a $10 charitable donation and a $5 minimum deposit. The credit union will pay that $5 back in bonus if you open an account.
- Cons – This is a credit union and not a bank. Some competing banks offer better interest rates.
- Link – http://www.alliantcreditunion.org/bank/high-yield-savings
CIT Bank Premier High Yield Savings
- Description – This account has the top interest rate in the market today and offers a wide range of services. The account is very user-friendly and easy to open by filling in an online form.
- Interest Rate – 1.35% of interests on accounts with $250,000 or less. 1.30% for accounts with higher than $250,000.
- Pros – A high interest rate that beats the national average of 0.06% by a considerable margin. The bank charges no fees for the account, which helps you save more money.
- Cons – Account holders need to deposit at least $100 to open the bank account.
- Link – https://www.bankoncit.com/premier-savings-direct/
Goldman Sachs Bank USA
- Description – Goldman Sachs has a pretty well-established reputation in the banking industry and offers a wide array services.
- Interest Rate – 1.30% is some of the highest interest rates offered in this industry.
- Pros – The online interest bearing savings account doesn’t charges fees and you need to maintain a minimum balance of $1 in order to earn interest.
- Cons – No ATM network, mobile app, or checking account offered.
- Link – https://www.gsbank.com/savings-products/online-savings.html
Synchrony High-Yield Savings: Top interest rate
- Description – This is one of the most popular online banks and offers some of the best high-yield savings accounts in the industry.
- Interest Rate – 1.30% APY
- Pros – There’s no monthly fee or minimum balance required to open and maintain the highest yield savings account in this bank. Clients can also get perks like discounts on hotels, car rentals, etc. The bank reimburses ATM fees and offers other perks to encourage saving money.
- Cons – There’s only one physical branch in New Jersey and all interactions or transactions must be conducted through phone or online.
- Link – https://www.synchronybank.com/banking/high-yield-savings/
Barclays Online Savings
- Description – The online high-yield savings account is user-friendly and pocket-friendly. The website offers a great experience and is very responsive. The account has a number of perks that make it easier to manage from all platforms.
- Interest Rate – 1.30% APY, which is some of the highest in the industry.
- Pros – There are no monthly fee or minimum balance requirements to maintain the account. They offer customer service by phone as well.
- Cons – Insufficient-funds fee is applicable and it is set at $5.
- Link – https://www.banking.barclaysus.com/online-savings.html
It’s a good idea to consider all options carefully, look at the interest rates, terms and conditions, and service quality before choosing the account for your requirements.