Best High Yield Saving Accounts To Choose
The world has become fast-paced and with that people wish to enhance their investment to make more money.
There are a plethora of options to choose from like equity, mutual funds, stock options, crypto, NFTs, etc.
which allows making money by investing money at a much faster rate compared to traditional savings accounts in a bank.
However in the world of investment higher, the opportunity to earn greater is the risk to make losses, so what will you do if you have a sudden requirement for money?
Well, the answer is simple you need always need to have some money in highly liquid and safer investment options.
But you don’t need to search more for finding these low-risk and highly liquid investment options as we bring to you the best high-yield saving accounts to choose from.
To begin with our tutorial we would like to help you understand more about the key terminologies you might be coming across for the first time.
Key Terminologies to know related to High-Interest rate savings account
- APY: It stands for Annual percentage Yield and is the real rate of interest realizable on your investment on the selected deposit product.
- Monthly Charge/Fee: A bank usually charges an amount fee for maintaining a customer’s bank account as part of a service charge or if the customer’s bank balance drops below a minimum balance.
- Regulation D: It’s a regulation passed by the Federal Reserve bank of the USA which limits the number of withdrawals and transfers a person can make during each monthly statement cycle. Although this rule was removed by FED in 2020, few banks continue to implement it.
Factors to consider for selecting a High-Interest Savings Account
It is very important to understand the idea behind selecting a savings account scheme and what makes one better than the rest.
To throw more light on the selection of high yield interest rate saving accounts we have considered the following factors:
- Annual Percentage Yield: The most important indicator when selecting a high-yield savings account is the annual percentage yield achievable by investing in a savings account. One must always look to compare the APY of other saving deposits schemes and select an optimal scheme to invest in
- Minimum Balance Required: It refers to the minimum balance one must maintain in a savings account otherwise a monthly fee/charge has to be paid by the customer holding the bank account.
Hence if 2 banks have equal APY saving schemes one must look to select one with a lower minimum deposit required.
- Minimum Deposit Required: It refers to the minimum amount one must deposit while opening a savings account. Banks with a lower limit are preferable.
- Frequency of Rate Changes: One must also look into the history of rate changes to understand how frequently interest rates fluctuate for a bank to decide which high-yield savings account to choose.
- Withdrawal Options: Another key factor to consider is the option a bank provides to withdraw cash. A bank with more ATMs and physical branches is preferable.
Next, we have prepared a list of the best high-yield savings accounts to choose from based on favorable parameters.
Here’s Top 11 High-Yield Saving Accounts List
Whether you are a well-established salaried person or a daily wage worker everyone needs an emergency fund with high-interest rates.
To ensure that you can invest your money and earn better interest rates than others we bring to you the complete list to select from
1. Bread Savings High-Yield Savings Account
Bread Savings (formerly Comenity Direct) is an online bank, It offers an annual percentage yield of 1% at 0 fees, with a minimum of a $100 deposit.
Pros: It offers its customers higher yields on savings deposits as compared to traditional banks without any monthly fee being charged.
Cons: One of the main problems is that a customer can’t deposit cash or write checks, secondly it has no physical bank branches and ATMs for withdrawing money
2. LendingClub Bank High Yield-Savings Account
This bank is mostly an online-focused community, a bank headquartered in Lehi, Utah.
It has an annual percentage yield of 0.85% at 0 fees.
Pros: It offers its customers greater than national average yields on savings deposits as compared to yield provided by other high yield saving accounts, most of the products are free of any monthly charge, and it has a much lower cash deposit limit to open a CD ac
Cons: The only problem with the above-mentioned scheme is that the savings account requires a deposit of $2500 to earn the highest possible annual percentage yield.
3. Live Oak High-Yield Online Savings:
It has an annual percentage yield of 0.8% at 0 fees.
Pros: The savings account requires no minimum balance, and it has a mobile app allowing customers to manage external accounts from other banks through its app known as the Live Oak mobile app.
Cons: The only problem with the above-mentioned scheme is that the saving account requires a deposit of $2500 to earn the highest possible annual percentage yield.
4. TAB Bank High-Yield Savings Account:
TAB Bank High-Yield Savings Account offers an annual percentage yield of 0.75% at 0 fees.
Pros: The savings account requires a lower amount of minimum balance, and it has a highly-rated mobile app.
Cons: The bank has only 1 physical branch, no ATMs for withdrawal of money, and the yield provided by them is lower than other online banks.
5. Quontic Bank High Yield Savings
Quontic is a digital bank that is FDIC insured and its U.S.-based bank it’s headquartered is located in Manhattan, New York. It offers an annual percentage yield of 0.75% at 0 fees.
Pros: The savings account requires a lower amount of minimum balance i.e. $100, and it has 1000s of ATMs across the country for easy withdrawal of cash, it also allows online money transfer through Google pay, Samsung Pay and Zelle.
Cons: The bank has 5 loan offices but only 1 physical branch
6. Barclays Online Savings
Barclays Online Savings bank offers an annual percentage yield of 0.70% at 0 fees.
Pros: The savings account requires no minimum balance and no monthly fee for its service.
Cons: The bank has limited deposit products and very few ATMs for cash withdrawals.
7. CIBC Bank (USA Agility Savings Account)
CIBC Bank has an annual percentage yield of 0.72% at 0 fees.
Pros: The savings account in CIBC bank provides competitive yield rates with a good range of personal banking products at no monthly fee for its service.
Cons: The bank has limited ATM coverage limited to 3 states in the USA, a mediocre mobile app for internet banking, and some bank products are limited to 4 states.
8. Ally Bank Online Savings Account
It has an annual percentage yield of 0.60% at 0 fees.
Pros: It provides its customers access to more than 43000 ATMs across the USA and provides a large range of deposit schemes at low fees with no monthly fee.
Cons: It however has no branches and does not allow cash deposits.
9. Capital One (360 Performance Savings Account)
360 Performance Savings Account of Capital One offers an annual percentage yield of 0.70% with $0 fees and no minimum balance.
Pros: It provides its customers access to 70000 ATMs across the USA at no additional charges and requires no minimum deposit and saving balance requirement and has a highly-rated mobile app for internet banking.
Cons: Branches are located in 7 eastern and 2 southern states.
10. Citibank Accelerate High-Yield Savings:
Citibank Accelerate High-Yield Savings has an annual percentage yield of 0.60% at 0 fees.
Pros: It provides its customers global access to ATMs beyond the USA, allows customized alerts to account holders for easy management of the account, and has a highly-rated mobile app for internet banking.
Cons: Has a minimum balance required to be maintained and charges fees if the balance falls below the minimum limit.
11. Discover Bank Online Savings Account:
Discover Bank Online Savings Account offers an annual percentage yield of 0.70% at 0 fees.
Pros: It doesn’t charge any fee for its deposit products and even provides free checking account holders with some cashback.
Cons: Has a very high $2500 deposit requirement for opening a CD.
Safety of high yield saving accounts
The primary reason for having an emergency fund is its safety ensuring easy access to money whenever required.
Saving accounts are insured for up to $250000 at banks by the FDIC.
Any person holding a savings account must also constantly keep a check on monthly statements, interest payments, and unauthorized withdrawals.
Why are high-yield savings account mostly online?
You could often wonder why most of the banks providing competitive yield rates are online in nature.
Well there are 2 main reasons
1) Online banks can save a considerable amount of expense in terms of infrastructure costs, maintenance and electricity bill and they can utilize the saved cost in higher interest rates.
2) Online banks need more attention due to a lack of physical presence and hence target customers to open savings accounts by promising higher annual yield rates.
So now we have completed our tutorial on selecting the best high-yield savings account to choose for parking your emergency fund most profitably.
Hopefully, you enjoyed reading through the article and it would have enriched your mind about the key terminologies, and factors to consider before selecting the best high yield savings account to choose and going through the list of best high yield savings accounts to choose to invest in and enjoy the extra yield you will be earning.
Also please take care to keep your account safe and secure!!!