6 Best High-Yield Savings Accounts to Open
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Interest rates have been very low so the past few years which isn’t ideal for deposit accounts. Slowly, interest rates have increased to a modest level. Although investing your money in a savings account won’t yield you the more competitive returns, it’s a good way to help your money grow while still maintaining your cash liquidity.
But not just any savings account will do. According to the FDIC, savings account rates averaged 0.09% as of the week of August 29, 2019. With savings rates at less than 0.1%, you might think twice about opening a new savings account. There’s a better alternative, however; the best high-yield savings account rates are often provided by online banks.
Here are the best high-yield savings account products to compare, before depositing your savings.
1. Discover Bank Online Savings
A Discover savings account is an online-only savings vehicle which means there aren’t brick-and-mortar locations available. Online accounts help financial institutions keep costs low, and in return, it can offer customers better returns on deposits.
Currently, Discover savings account rates are at 2.00% APY. This isn’t the highest rate available, but it’s still worthwhile to consider since there’s no minimum deposit required to open a new account. You also don’t have to maintain a certain minimum balance to stay in good standing.
2. CIT Bank Savings Builder
The CIT Savings Builder offers a competitive rate of up to 2.30% APY. The account requires depositors to open new accounts with a minimum $100 deposit and you’re required to maintain the fund under certain requirements. Your options to continue earning returns at this APY include:
Making at least one deposit of $100 per month, or
Maintaining an account balance of $25,000 or more.
This can be an option if you want to have accessibility with your funds while saving aggressively toward a particular savings goal. There are no maintenance or account-opening fees required to start saving.
3. American Express Personal Savings
If you’re looking for one of the best high-yield savings accounts that offer good returns, the American Express Personal Savings account may be right for you. It provides its depositors with 1.90% APY without any minimum deposit or account balance requirements.
This is a no-frills, but affordable high-yield savings option that also doesn’t incur maintenance fees.
4. Ally Online Savings Account
Ally Bank is another well-known online bank that gives you access to competitive savings accounts. In terms of its online savings account features, it’s very similar to Amex. There’s no minimum deposit needed to open a new online savings account and no minimum balance to keep to qualify for the Ally Bank savings rate of 1.90% APY.
The account also doesn’t charge fees, like a new account opening fee or maintenance fee, so your money can keep growing uninterrupted. The institution has been voted the “best online bank” for multiple years and generally gets a favorable review from its customers.
5. Synchrony High-Yield Savings
Currently, a Synchrony High-Yield Savings account offers 2.15% APY, regardless of your deposit amount. There’s no minimum balance required to continue earning this APY, and the bank doesn’t impose account maintenance fees.
The unique part about having a Synchrony high-yield savings account is that you have the option to request an ATM card. This gives you an extra layer of accessibility to your cash, in the event of an emergency.
6. Marcus by Goldman Sachs High-Yield Online Savings
Marcus by Goldman Sachs provides its savers with a high-yield online savings vehicle that offers 2.00% APY. It, too, charges no monthly fees and has no minimum deposit to contribute to open an account. You can link your bank account to your Marcus savings fund to easily set aside money toward your goals.
Related: How to Save Your First $1,000 in Emergency Savings
If you already are a credit card customer of AMEX or Discover, it might be more convenient for you to open savings accounts through those institutions since you have an existing account. These are just some of the best high-yield savings account options that are out there. There’s no one right answer for everyone since the right account for you depends on how much your initial deposit is, the rate and fees associated with the account. With this list as a starting point, however, you can be one step closer toward your savings goal.
Check out our favorite high yield savings accounts here!