“‘Tis money that begets money.” This is an old English proverb, but there are many variants of this axium throughout several different cultures. Whether it be Italy or India, the truth behind this adage persists, and its fundamental meaning has been retaught by great entrepreneurs time and time again. This is immediately true when you are referring to high yield savings accounts, as your money will grow simply through interest; however, in the long run, this is especially true because the growth of money, typically works through percentages.
This being said, if you have a lot of money, even small percentages of growth can be valuable. For example, there are hedge funds that may work on a commission of less than 1%, but because they are working with billions of dollars, .1% of a billion dollars will very much still leave you well off. For most people, having a ton of money at a single moment is uncommon. This is where the importance of saving comes in. As Warren Buffett once said, “Don't save what is left after spending; spend what is left after saving.” Once you start saving, you will be able to accumulate money so that you may then reinvest your money, thus begetting more money.
If you are looking for a new bank to open a savings account or you are simply trying to make healthier financial habits, then you probably want to start with the best high yield savings accounts. Once you start building your savings, small or large, you can eventually start investing.
High Yield Savings Account Criteria
We used five different categories when selecting these high yield savings accounts.
- Interest Rate
- Bundled Services
- Signup Fees
HSBC Direct Savings High Yield Savings Account
HSBC is a multinational bank that was established in British Hong Kong in 1865. They are one of the world’s largest banking companies, but have not really made a substantial stronghold in the United States; however, they are getting there. Recently making large strides in their market share in America, HSBC is currently trying to incentivize new customers in opening up savings accounts through their banks. HSBC is currently, as of April 30, 2019, offering one of the highest interest rates of the consumer banking market at 2.30% APY with no balance requirement and no monthly fees.
With the HSBC high yield savings account, you can get some pretty good cash rewards on an annual basis. The bonus can get up to around 10% each year, which makes this banking system a must-have. Keep in mind that the rates offered are subject to change at any time. Like many savings accounts, there are pros and cons.
Pros: The good part about the HSBC direct saving is that there are no monthly maintenance fee, fast ATM deposit, and excellent rates.
Cons: The bad part about this saving account is that all transactions can only be done online, there is no ATM or debit card, and there are hidden expensive fees. For example, these hidden fees entail $25 for closing your account, $20 for balance verification for a mortgage loan, and $6 for special statements.
FNBO Direct High Yield Savings Account
First National Bank of Omaha (FNBO), is an American Bank that has been around for over 100 years. As a physical bank, it has only built locations in 7 states in the United States; however, with the advancements in technology and cryptography, they have been able to open up their bank to the rest of America through their online-only bank called FNBO Direct. FNBO is independently owned and holds over $23 billion in assets as of this year. MONEY magazine rated FNBO as the best bank in the Midwest and J.D. Power ranked it "Highest in Customer Satisfaction with Retail Banking in the Midwest." Furthermore, FNBO is ranked as one of Forbes Best Banks in America. On top of all this, FNBO Direct also has one of the highest interest rates at 2.20% APY.
Pros: The rewards for the FNBO Direct savings account are amazing. You win two points for every one dollar qualifying purchase in a 12 billing cycle after your account opens. You can redeem your points by requesting a $25 deposit in your FNBO savings account. Each time you deposit, you accumulate 2500 points in your account. Keep in mind that the rates are subject to change. The approval of using FNBO Direct is that you get the top 1.40% interest rates, no minimum balance required, and no minimum deposit that is required.
Cons: The issue with FNBO Direct is that there is a ten-day personal check hold and they have poor CD option rates.
Related: Huddl Up. Earn Tokens.
Radius Bank High Yield Savings Account
If you are looking for a high yield savings account that can provide you with excellent interest rates, then the Radius Bank is what you need. This high-yield savings bank can boost your savings with a free high-interest savings account. With this bank behind your back, you can earn the best rates in the country by increasing your savings with FDIC insured account that can potentially make you more money. The three most significant features about Radius Bank are that you can experience high interest-earning, freedom from hidden fees, and apply online and get in the system within minutes. With the high interest earning, you can get up to 2.05% APY which equates to the balance that goes up to $25,000. Also, you can also earn 1.50% APY with a balance between $2500-$24,999.99. Another fantastic part about this banking system is that you would not have to make any monthly payments, no minimum balance after a $100 deposit, and you get a free ATM card. If you have a Social Security number or a valid tax ID, and a hundred dollar bill, then you can apply online and start saving immediately. So what are you waiting for?
Pros: Radius bank provides a high-quality savings account experience for their loyal customer. You can earn great rewards with this banking system. For example, if you deposit over $25,000 into your savings account, you can earn up to 2.05% APY. In fact, this banking system has amazing features such as a higher rate than other brick and mortar banks, fully equipped online banking services, no monthly fees, and efficient withdrawal system with free ATM card.
Cons: The problem with Radius high-yield savings bank is that you need a $100 minimum deposit to earn the base interest rate, and a $25,000 minimum deposit to earn the best available interest rate.
CIT Bank High Yield Savings Account
CIT Bank is rated as one of the top 50 banks in America, and has been proving its dependability since its founding in 2000. Though this bank is young, it is traded on the New York Stock Exchange, holding over $44 billion in assets. To open a CIT Bank Money Market Account and Premier High Yield Savings Account, you only need to deposit $100. There are no monthly fees, and the option of online banking is readily available. CIT Bank has the highest interest rate on this list offering customers up to 2.40% APY; however, there is a bit of a catch. Unless you fulfill the requirements for the Savings Builder account, the 2.40% APY will decrease to 1.17% after the first month. To keep the Savings Builder status, you must either hold a $25,000 minimum in the account or have a monthly deposit of at least $100. Provided you qualify for the Savings Builder account, the ease of access, lack of fees, and the high interest make CIT Bank one of the best banks to use if you are simply looking for a savings account.
Pros: With CIT banking, you can expect some cashback as a brilliant reward system, but the rates are subject to change depending on the situation with the bank. However, there are a lot of great things about this banking system like low minimum deposit, high rates, and you will not get charged for opening or maintaining an account.
Cons: However, there might be some issues with CIT such as no checking accounts, no branch locations, and no relationship rewards.
Popular Direct High Yield Savings Account
Based in Puerto Rico, Popular Inc. runs the banking business known as Popular Bank. Recently, Popular bank has been trying to establish a name for itself in the United States mainland by opening branches in several states. They have historically had a clientele that is more densely of Hispanic descent, and as an attempt to seem more welcoming to people of all nationalities rebranded themselves as Popular Community Bank. Popular Direct is the online bank that exists through the banks ran by Popular Inc. Being an online bank, their services are available to you regardless of which state you live in. Popular Direct offers a bit of a lower interest rate than that of CIT Bank; however, their rate is still very high and their requirements are much lower. Popular Direct offers a 2.36% APY that applies to all balances. The downside to such a relatively high-interest rate is that to open an account through Popular Direct, you need to have at least $5,000. Most online banks do not charge a monthly fee, but Popular Direct will charge you $4 a month whenever your account balance drops below $500. Furthermore, if you withdraw money more than six times a month, there is a $5 excessive withdrawal fee. Lastly, after you open your account, there is a 60-day period in which your newly made accounts are frozen, thus you cannot withdraw from your any money from your account 60 days after you create it.
Pros: The rewards from Popular Inc. depends on the number of points you accumulated for each deposit. Keep in mind that these rates are subject to change at any time. The great part about Popular Inc. is that there are no monthly payments, they have excellent rates, and there’s no minimum deposit.
Cons: The issue with this banking system is that there are some hidden fees, and the rewards aren’t as superior as the other banks.
Synchrony Bank High Yield Savings Account
Synchrony Bank is a very non-traditional bank in the sense that it does not have branches nor do they offer checking accounts. You can still effectively make payments through the bank despite this as Synchrony offers a large variety of credit cards. Synchrony allows you to do all your banking through your mobile devices allowing you to fulfill all your banking needs on the go. Though the bank is slightly unconventional, it would still be good for you to take a look at it as Synchrony does provide a good, financially healthy option when it comes to opening up a savings account. The package offered by Synchrony in terms of their savings accounts is nearly unmatched. Offering 2.25% APY, Synchrony also does not have an account minimum nor does it have a minimum balance required to open an account. Synchrony does not have a monthly fee to maintain an account and does not charge for use of ATM. If an ATM owner independently charges you for a withdraw, Synchrony offers a refund, though there are limitations to the refund. Overall, on paper this is a fantastic bank; however, there is one issue that many customers have with this bank. Their customer service is not quite up to par, so if you plan on doing much beyond basic deposits and withdraws, you may struggle to get things done in a smooth manner.
Pros: With Synchrony Bank, you get rewards for utilizing this savings account. You get great discounts and points in travel-related expenses and other points and cashback for being loyal customers. You get free ATM reimbursement after a five dollars maximum per statement cycle. The significant part about Synchrony bank is that they have excellent rates, free money market account checks, it’s easy to open, easy to manage, they offer up to five dollars in ATM reimbursement, and it’s easy to transfer to another account.
Cons: The issue with the bank system is that they have a weak security system, transactions can take longer, and moving can be very complicated.
Related: The Value of Social Networks
Ally Bank High Yield Savings Account
Ally Bank is an online-only bank that has become increasingly popular over the past decade. It has attracted many new clients through its strong interest rates and solid customer service. Online-only banks, though convenient, do come with the downside of not being able to accept cash deposits. What makes Ally Bank good is the fact that it has no maintenance fees or minimum balances required, access to 43,000 free ATMs via checking or money market account, and a 2.20% APY. Granted, this is one of the lower APYs on this list, but the drawbacks of an Ally Bank account is notably less significant than the other banks. The only prominent drawback is that each month you are limited to 6 outbound transfers, and must pay a $10 fee for every transfer after that. On top of all that, customers of Ally Bank have given their customers a respectable rating, and it does not seem to be a massive issue like some other banks may have.
Pros: Ally Bank has some fantastic rewards depending on the amount you put into your savings account . for example if you put in $10,000 to $24,000, you will get a $50 bonus. If you put in two million dollars or more, then you will get a $3,500 bonus. Keep in mind that a lot of these rates are subject to change at any time. The great part about Ally Bank is that they have relatively high rates on their savings account, no minimum opening balance, and access to over 43,000 ATMs in the US.
Cons: The problem with Ally Bank is that there is no way to deposit cash directly into their bank accounts, no brick and mortar location, and withdrawals from the bank can take up to 2-3 days.
Marcus by Goldman Sachs High Yield Savings Account
Goldman Sachs is one of the world’s foremost banking institutions, known multinational for its continued success and reliability. They are generally known for their “higher-end” banking in which the average consumer would not be utilizing their services. However, Goldman Sachs now has Marcus, which is a high-yield online savings account. Marcus has an excellent rate at 2.25% APY with 0 required minimum balance. There is also no required minimum deposit to open your account. Furthermore, Marcus does not have any monthly fees or overdraft fees. Marcus is probably the best online-only savings account on the market if you plan on only using it for savings; otherwise, Marcus can get a bit inconvenient. Marcus does not have any checking or ATM network available; which means if you want to make payments, you need to set up an external account to move money out of your Marcus account. This also means that there will be a delay in trying to make any transaction through your Marcus account. Ultimately, Marcus is a great savings account if you are planning not to make any payments.
Pros: With Marcus by Goldman Sachs, you can experience some great cashback rewards from being a loyal customer and putting money in your savings account. The excellent part about using Marcus by Goldman Sachs savings is that you get no minimum deposit to open your bank account, no transaction fees, and a 2.25% annual percentage yield with a zero dollar minimum balance requirement.
Cons: The issues with using this banking system is that you will need an external account to efficiently transfer money in and out of the bank, and there are no goal-setting features.
Alliant Credit Union High Yield Savings Account
Most banks offer high-interest rates, but they come at a trade-off in the form of narrow requirements and a list of fees. Alliant Credit Union is a bit of a middle ground, having a 2.10% APY on savings, but also a 0.65% APY on high-rate checking accounts (which is well above average). Their accounts require a $5 minimum starting deposit, and Alliant makes that opening deposit for their members. For Alliant savings, you must have a $100 minimum balance to earn 2.10% APY. For Alliant checking, you must have one electronic deposit per month to earn 0.65% APY. The requirements here are much lower than the industry standard, but it is a bit higher than the aforementioned Marcus by Goldman Sachs. Unlike Marcus, however, Alliant offers a massive 80,000 free ATM network with a $20 per month reimbursement for out-of-network ATM fees for their checking account holders. This makes Alliant a better choice if you are using your savings account in tandem with your checking account. Alliant members have daily limits up to $2000 for PIN purchases and $2000 for signature purchases.
Pros: Alliant Credit Union Savings Account can help you earn up to 2.10% APY and also providing you a pretty good amount of cashback. There are some good stuff about this bank such as 0.65% APY on high rate checking, 2.10% APY on savings, and more than 80,000 free ATMs.
Cons: The problem with this bank system is that it does not participate in shared branching, and you get a $25 overdraft fee.
Barclays High Yield Savings Account
Barclays is another multinational bank that is based in England. Founded in 1690, Barclays has truly proven its dependability through persistent standings amongst the top banks of the world. Barclays provide their service to over 48 million people worldwide but have a relatively small market in the United States. Barclays has primarily done their banking operations in the U.S. through online banking. Their savings accounts offer a 2.20% APY which is among the highest. Most banks will prompt a steep penalty if you ever overdraw from your account, but Barclays charges a mere $5 fee for overdrafts. The big problem with banking with Barclays is that it is purely an online savings account, thus it does not have an ATM network, and checking accounts. They effectively run into the same problems that Marcus by Goldman Sachs runs into.
Pros: The rewards are pretty decent with Barclays high-yield savings account. If you deposit a minimum of $25,000 in your savings account, The bank will give you a 2.50% APY. With that in mind, there are also other fantastic details about this bank. You have several options to choose from in making a deposit, you can link your online savings account to an external checking account, deposit funds with the Barclays app, no minimum deposit, renew your CD automatically, no monthly payment or maintenance fee, and excellent customer service.
Cons: The problem with Barclay is that if you withdraw your funds more than six times, you will be charged an additional five dollar fee. Plus, Barkley does not have any brick-and-mortar bank or ATM. Barkley is strictly online so if you’re not computer savvy, this might be a problem.
Discover High Yield Savings Account
Discover is one again an online bank, but it does have a single branch. If you happen to live near or work near the branch then, the cons of using their services are a bit more limited. Other than the inherent inability to deposit cash, Discover is a very solid choice for a savings account. Offering a 2.10% APY, their interest rates, though competitive, are still relatively low for this list. On the plus side, however, Discover offers great rewards such as a $150 and $200 bonus. They also give 1% cash-back rewards through their checking account, while requiring no monthly maintenance fees. Lastly, as Discover is also a credit card company, they come equipped with a massive ATM network making it very convenient to withdraw cash if needed.
Pros: Discover high-yield savings accounts provides their customers with excellent rewards. If you deposit $15,000 into your savings account, you will earn a $150 bonus. A $25,000 deposit will give you a $200 bonus. The benefits of using this banking system are the opportunity to experience low minimum deposit, high rates, minimal fees, and a variety of retirement options.
Cons: The problem with this savings account is that it does not have any ATM cards, no relationship rewards, and no branch location. Keep in mind that all rates that are offered above are subject to change.
Which High Yield Savings Account is Right for you?
A high-yield savings account is a blessing. It helps you grow your money while you get a good nights sleep. The perfect high-yield bank often has a high-interest rate because your money accumulates through interests. There are a variety of choices to choose from, so emphasize on an account that fits your needs. That way, you can begin investing and it can help you grow more revenues so you can take that vacation that you’ve always wanted to take. You want to make sure that you make the right decision, so it’s best to visit each bank operation or their website and do thorough research. After all, the possibilities are endless with the right high-yield bank. Therefore, today is the day to reap all the benefits, so which high-yield savings account is right for you?