“Save up for a rainy day” - one of the most useful money tips we love to hate. From a young age I've been told to have money saved away just in case life happens. Is it me, or is saving money not fun? But seeing your money grow, THAT’S the exciting part! And high yield savings accounts make it possible to bridge that gap.
A high yield savings account differs from your traditional savings account in that it pays a higher yield on the money in the account. The interest rates can fluctuate, but it’s less riskier than investing in stock. The higher your balance, the more money you can accrue. The higher the interest rate, the more passive income you stand to make, and that is always a plus.
There’s a number of high yield savings accounts out there that have competitive interest rates. The higher your balance, the more money you can accrue. Passive income is one of the best incomes.
Even though HYSA interest rates have been abysmal these last 2 years, these 5 high yield savings accounts are worth a look!
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FEES: $0.00
APY: 0.75%
Pros: This account has no maintenance fees even if the minimum balance isn’t maintained during your monthly cycle. The APY is one of the higher percentages on the market right now and is compounded monthly. There’s an app for mobile check deposits and transfer funds. You can also utilize the app for free ACH transfer and online statements.
Cons: This account would need a minimum of $100 to open and as with most HYSA it is digital. There’s no brick and mortar bank accessible to make deposits or withdraw money. Lastly if you do ever need checks, they are $15 each and a $5 fee if you prefer paper statements.
FEES: $0.00
APY: 0.75%
Pros: Coming through with that .75% APY too. It also shares similarities with Bread Savings that there are no maintenance fees to have the account, no minimum balance needed. Where this account differs is it has 24.7 customer service and access to free ATMs nationwide. It has transfer compatibility with Apple Pay, Samsung Pay, Google Pay and Zelle.
Fun Fact: did you know that savings accounts have a federal law called Regulation D that keeps consumers from making more than 6 withdrawals or transfers per month? There are some loopholes around this. ATM and in-person withdrawals typically don’t count towards this limit, it’s electronic.
Cons: Since this company doesn’t have physical branches, you can exceed this electronic limit for a fee of $10. Now you may ask, what is the point of this regulation? “It’s my money and I need it now!” It was put in place to help banks maintain reserve requirements.
FEES: $0.00
APY: 0.50% - 5.00%
MIN DEPOSIT: NO MINIMUM TO OPEN
PROS: AT 5% APY, YOU COULD EARN $50 DOLLARS ANNUALLY IN INTEREST ON $1000 SAVED.
CONS: ONCE YOU SURPASS $5,000 DEPOSITED, YOU ARE NOT ELIGIBLE FOR 5% APR.
FEES: up to $10 monthly
APY: 0.60%
Pros: A more commonly recognizable name in banking has entered the chat - and service fees are waived if you already have an account with them. This account has .6% APY and there is no limit to earning potential. There’s also no minimum amount needed to open the account or minimum balance to get that .6% percentage.
Cons: If you don’t have an account with them, maintenance fees up to $10 a month.
FEES: $0.00
APY: 0.60%
Pros: This name may look familiar to you. Many retailers like Amazon use them for their credit card services. They also offer a high yield savings account with an APY of .6%. There is no minimum need to open an account, no maintenance fees, or minimum balance needed to get that APY. They have a cool savings goal calculator. You put the amount you want to save and how long you want to save for. It’ll calculate how much you need to deposit every month to hit that goal.
Cons: They don’t have any brick and mortar locations, but if there are any ATM fees they will refund up to $5 a month in domestic charges.
With these choices, you can find the best fit for your saving habits. Whether you’re trying to develop better ones or diversifying the different accounts you have, a high yield savings account is the way to go! Get that small reward for a job well done on saving for that rainy day.
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