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I am the queen of chasing free money. At work, I invest in my employer’s retirement savings account to get all the matching funds (aka free money from my employer). When it comes to saving money I am no different.
For example, I opened a Capital One 360 money market account because they offer 1.7% interest rate. To earn the most interest on my savings, I moved my emergency fund there to get the perks.
This article will show you the top high yield savings accounts to stash your cash savings. I am not loyal to any bank when it comes to where I store my money, and you shouldn’t be either. Check out bank offers every few months and consider moving your money to get a better interest rate and other new customer perks.
Choosing the Right Bank
Since you shouldn’t plan to withdraw from your emergency fund too often, why not earn the most interest on your money?
Keep your emergency fund in a high yield savings account versus stocks, real estate or other investments that are not as easy to liquidate. When I am looking for the latest offers, I start my search on Bankrate.
When looking for a bank for your savings, start by looking at the offered interest rate, the minimum balance required to earn interest, and the amount required to open the account. If you are just starting to build your savings, go with a bank that doesn’t charge bank fees and allows you to open an account with as little money as possible.
Brick & Mortar Banks
Below are financial institutions you probably know because they have been around for a while and may have locations where you live.
They offer very competitive interest rates, but some come with a minimum deposit to open an account or have required balances to qualify for the best rates. Rates and account information is accurate as of 2/2020.
Capital One 360
- Account Type: Savings
- Interest Rate: 1.7% (as of this writing)
- Minimum Deposit for top APR: $0
- ATM Fee Reimbursem*nt: No
- Check Writing: No
When I decided to move my emergency fund to Capital One I was choosing between opening a Marcus account with Goldman Sachs or this one. I ultimately chose Capital One because I already had other accounts. Plus, they offered a similarly, competitive interest rate.
Capital One offers different promotions throughout the year, and in the past, I have also been paid referral fees for sending new customers their way. This was a feature I have only seen from Capital One, which is why I continue to do business with them and constantly research their latest offers.
Capital One’s 360 Money Market Account offers a competitive 1.7% interest rate.The bank does not have a required minimum balance to open an account or to maintain eligibility for the interest rate.
This account has no fees and comes with mobile banking, so deposits and checking your account are easy. You do, however, have to link this account to another bank to open it and make transfers. You can withdraw money from your savings account online or in a branch, but not through an ATM.
Citibank
- Account Type: Savings
- Interest Rate: 1.85% (as of this writing)*
- Minimum Deposit for top APR: $0
- ATM Fee Reimbursem*nt: No
- Check Writing: No
*Highest rate only offered in select markets.
Citibank offers a high yield savings account called Citi Accelerate with a 1.85% interest rate. Unfortunately, this account and the highest interest rate are only offered in certain markets.
There’s no minimum balance requirement to earn the interest rate and no minimum to open an account. So, it’s easy for anyone to start saving. However, there is one catch. Citibank charges a $4.50 monthly service fee. You can get this fee waived if you maintain an average monthly balance of $500.
HSBC
- Interest Rate: 1.85% (as of this writing)
- Minimum Deposit for top APR: $1
- ATM Fee Reimbursem*nt: No
- Check Writing: No
HSBC is one of the world’s largest banking and financial services organizations, and has locations in most major U.S. cities. It’s been around since 1865 and offers one a best interest rate of 1.85%. All you need to qualify for this rate is to open an account with at least one dollar. You can easily open a new account online.
Plus, there is no monthly maintenance fee. If you have an HSBC Direct Savings account, you can make a deposit or withdrawal at one of the HSBC locations in the United States.
If you are going to switch to this account for the rate, don’t close your account before the 180th day. HSBC will charge you a $25 fee if you close your account before this milestone. Also, this account doesn’t have an ATM or debit card available for it.
ONLINE BANKS OFFER MORE BANG FOR YOUR BUCK
Online banks offer some of the best interest rates to customers because they don’t have brick and mortar locations to maintain. Therefore, their costs tend to be lower.
Below are additional savings account options at online banks. They could be a great place to save your money if you don’t need to access the money right away and want to earn higher interest rates.
If you save in one of these banks, I recommend splitting your savings. Consider holding a couple of thousand dollars in a local bank you can access quickly or via ATM machines. You may not earn the most interest, but you will have quick access to some of your money. Then save the rest in one of these more competitive savings accounts.
CIT Bank
- Account Type: Savings
- Interest Rate: 1.75% (as of this writing)
- Minimum Deposit for top APR: $25,000
- ATM Fee Reimbursem*nt: No ATM card
- Check Writing: No
CIT is one of the best online banks and at the time of this writing they are offering cash bonuses to high savers. If you open a new account with at least $100 and then fund it with up to $50,000 or more you can qualify for a $200 cash bonus. If you fund your account with $25,000-49,999 you can get a $100 bonus on top of the 1.75% interest rate.
The promotional rate and cash bonuses are available until April 2020. You will see the money show up in your account about seven days after opening it but the money will be on hold until 15 days after your open date. If you withdraw your money before the hold period ends, you will forfeit the cash bonus.
This would be a great account to hold your 3-6 months emergency savings. You can save most of your money here and earn a competitive interest rate and a cash bonus. Plus, this account has no monthly fees.
Marcus By Goldman Sachs
Account Type: Savings
Interest Rate: 1.70% (as of this writing)
Minimum Deposit for top APR: $0
ATM Fee Reimbursem*nt: No ATM card
Check Writing: No
This savings account offered by Goldman Sachs has one of the highest interest rates on the market. Currently, they are offering a 1.70% interest rate and have no minimum deposit balance.
They also have no monthly fees or transaction fees. Your account is limited to a maximum of $1 million dollars, so save away until you reach that amount.
As with other savings accounts, you are limited to six withdrawals each month. In addition, you cannot write checks from this account. You’ll need to factor in the time it takes to complete a funds transfer when you need money for a purchase or expense.
Wealthfront
- Account Type: Savings
- Interest Rate: 1.78% (as of this writing)
- Minimum Deposit for top APR: $1
- ATM Fee Reimbursem*nt: No ATM card
- Check Writing: No
Wealthfront, also known as a robo advisor investment firm, offers customers a 1.78% interest rate and only requires $1 to open an account. There are no fees, no deposit requirements, free transfers and your money is FDIC insured up to $1 million.
That is 19 times higher than the national average, so this is a huge perk if you want to save big. Most banks only insure your money up to $250,000.
Ally
- Account Type: Savings
- Interest Rate: 1.60% (as of this writing)
- Minimum Deposit for top APR: $0
- ATM Fee Reimbursem*nt: No ATM card
- Check Writing: No
Ally Bank has existed for 100 years but was one of the first banks to revolutionize the digital finance sector. They offer loans, savings accounts and investments.
Ally’s online savings account offers a 1.60% interest rate and has no minimum amount to open or maintain an account.
There are also no fees as long as you don’t exceed the six withdrawals per month. If you do, it’s $10 per excessive transaction, but that is a standard fee charged by most banks with the same transaction limit.
Ally also helps you save more. They use technology to analyze your linked bank account and then transfer “safe to save” money into your Ally account without you having to think about it.
It’s convenient that you can conduct your banking via Ally’s app or make deposits using Amazon’s Alexa. Ally prides itself on offering customers top customer service 24/7.
WebBank
Account Type: Savings
Interest Rate: 1.86% (as of this writing)
Minimum Deposit for top APR: $1,000
ATM Fee Reimbursem*nt: No ATM card
Check Writing: No
This Salt Lake City-based bank was established in 1997. WebBank offers a 1.86% interest rate on its savings accounts with a minimum balance of $1,000. If your account falls below this amount, your account will be closed and your money returned.
The good news is, there are no monthly fees and the interest is compounded daily. On the last business day of the month, your interest earned is paid.
You can only deposit money into this account through online or wire transfers, but there is a $25 fee for outgoing wire transfers. This is definitely a bank account you should only deposit money you don’t need quick access to because it could take a few days for you to access your money after online or wire transfers.
Comenity Direct Bank
- Account Type: Money Market
- Interest Rate: 1.90% (as of this writing)
- Minimum Deposit for top APR: $100
- ATM Fee Reimbursem*nt: No ATM card
- Check Writing: No. But you can request an official check for a $15 fee (as of this writing).
Comenity Direct is also a new bank, established in 2018. However, it’s connected to Comenity Capital Bank, a bank best known for its business credit card programs with retailers worldwide.
With just $100, you can open a high yield savings account and earn a 1.90% interest rate. Your account can have a max of $10 million and still earn interest. The only downside is that this account doesn’t come with an ATM or debit card, but it does allow free electronic transfers.
You can use the bank’s app to make deposits and withdrawals. The bank also offers customer service support via their hotline during specific periods during the week and on weekends.
Finding The Right Bank For You
Where are you currently saving? Get the most bang for your buck by saving in one of these high yield savings accounts. Take the time to compare your current savings account against this list.
Make sure you are not leaving free money (aka higher interest earnings) on the table since we have shown that many banks are offering a competitive interest rate of 1% or more.
Do you know of an account we missed and you love?Leave a comment below and don’t forget to join the Wealth Noir Community to connect with other black millennials building wealth.
Acquania Escarne
Acquania Escarne is the creator of The Purpose of Money, a community of women building generational wealth for their families one dollar at a time. As an entrepreneur, real estate investor, and licensed insurance agent, Acquania has always been passionate about financial literacy. On her website, Acquania blogs about ways to help you improve your money habits, create wealth, and invest in real estate. Follow Acquania on social media for daily tips.
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