Whether you’ve just come into a lump sum of money, or you want to start putting some money aside for a rainy day, a savings account is a great option.
When you’re looking for a savings account, you should always check the interest rate. Some banks calculate your interest daily, and some are monthly or quarterly, and you earn interest onto the interest earned up to that point, which is always beneficial.
If you keep adding to these savings accounts, you’ll earn more interest – which is a great way of encouraging you to save those extra bucks.
These accounts all have a high interest rate. Keep reading to see which account may be best for you and your saving needs.
If you’re looking for a hassle-free, online-only savings account, then CHIME may just be the perfect bank for you..
It’s always a bonus when the account has no service charges or overdraft fees, and CHIME is one of the few banks out there that doesn’t charge you for their services.
Although there aren’t any physical CHIME branches, you can get your banking done quickly and easily online – both on the website and the mobile app. Checks can even be deposited through the app, which is super time saving and convenient.
If that’s not enough for you, you’ll be happy to know that when you’re an account holder with CHIME, you get access to over 38,000 MoneyPasses and Visa Plus Alliance ATMs all across the country. If you use a non-group ATM, however, you’ll be charged around $2.50 per transaction.
Now to the important stuff – interest rates. CHIME offers an interest rate of 1.60% APY on their savings account, which is significantly higher than its competitors. You won’t find many that compete with that rate.
Some banks only give a decent interest rate to customers that meet certain balance requirements, but not ALLY. No matter what your balance is, you can benefit from the very high 2.20% APY.
This is a great option if you’re looking to build your balance - you can start earning straight away, instead of having to wait for your balance to hit a certain figure. For an account that doesn’t have any service or maintenance fees, it almost seems too good to be true.
Although there are no maintenance or service fees, you may get charged for going into an unarranged overdraft – so you’ll only benefit if you keep a positive balance.
Pretty much all services are available with ALLY – a fully functional mobile app, free incoming wire transfers, free postage-paid deposit envelopes, and free ACH transfers to non-ALLY accounts.
To save time and effort, you can cash your checks via the mobile app – simply take a clear picture of the check on your phone, and you’ll get the funds within the timescales given. You do, however, have to mail in the paper copy of the check for the process to be complete.
Barclays is a big name wherever you are on the globe, and for US residents, it offers great interest rates on their savings accounts.
The interest rate for a savings account is currently 1.30% APY, which is 18 times the national average! This dropped from a whopping 2.20% APY at the start of May 2020, and will likely change with the current economic environment.
Its certainly one of the best options in 2020 if you’re looking to build your savings up, whether it be short term or long term.
4. Citizens Access
The online savings account offered by Citizens Access is essentially risk-free, and is a whopping 16 times higher than the national rate.
Unfortunately, you have to deposit a minimum of $5,000.00 to be eligible for this account. There are no charges or fees for anything though, which certainly makes up for the high minimum deposit.
The application process is quick and easy – you can have a fixed interest rate in under five minutes! Currently, the interest rate is at 1.50% APY – to give you an idea on what you’ll be earning, if you invest a sum of $20,000, depositing $100 per month, you’ll earn $1770 in the span of five years.
The interest rates can go up to a maximum of 2.35% APR, which is one of the best in the country.
If you set up a savings account with Synchrony Bank, then you’ll get an interest rate of 1.30% APY, which is surprisingly high considering the current financial climate.
Some savings accounts don’t allow online banking and transfers unless you have a current account with that bank, but Synchrony offers full services even if you’re a savings account only customer.
If you’re hoping to start saving, you’ll be glad to know there’s no minimum deposit required to access this interest rate. If you do have a lump sum, you can access a higher interest rate of 1.50% APY if you deposit $2,000 or more upon account opening.
Please note that the interest rates stated in this article are constantly changing, and may appear lower than usual due to the COVID-19 Pandemic – but these should rise back to their averages in time.