Your savings account might not be netting you as much interest as it could.
Whether you’re simply saving to create a comfortable emergency fund or you’re starting to plan for retirement, it’s important to ensure that your savings account is generating high returns.
Many traditional banks offer extraordinarily low APYs (annual percentage yield). Sometimes as low as 0.03%. If your savings account has low interest rates like this, it’s probably a good time for a change.
In order to find a high-yield savings account, you might consider looking for an online bank.
There are several online banks that offer high APYs and a variety of other convenient features to help you save money faster.
Let’s take a look at why you should consider switching.
Higher Interest Rates
Many online banking institutions are able to offer higher interest rates on their savings accounts than traditional brick and mortar banks.
One reason is simply the reduced cost of running an online-only institution. They’re able to save money on maintaining a physical presence and providing in-person banking services.
As a result, these online banks are able to pass their savings to the customer in the form of high interest rates.
Online Banking Options
There’s no shortage of online banking options, but here are a few popular options which offer high APYs.
Ally Bank is a completely digital bank that offers an incredibly attractive 2.20% APY on savings accounts with no minimum balance requirement.
This is a great option for people who would normally fall into lower balance tiers.
The HSBC Direct Savings account is an online account that offers an APY of 2.30%. There are no monthly fees and it only costs $1 to open an account. Customers can also use tools to track savings, create goals, and set up alerts.
You’re probably familiar with Discover as a credit card provider, but the company also offers baking services.
Discover’s online savings account offers a fair 2.10% APY. There are no monthly fees and, if you’re able to make a significant initial deposit, you might qualify for a cash bonus.
All the Features You Love
You might be hesitant to choose an online-only bank.
Surely, you’ll be missing out on some of the services offered by brick and mortar banks, right?
Online banks offer many of the same services and features you’re used to, and they can all be accessed in their easy-to-use apps.
You’ll still be able to:
- Deposit Checks
- Access ATMs
- Have your money insured
- Get help from responsive customer service
- Manage your money
- And more
Online banks offer a variety of customer-friendly features in addition to a level of convenience that traditional banks can’t match.
Find an Online Bank
The online banking institutions listed above are great options.
But, if you want to explore all of your options, it’s incredibly easy to compare offers and features between online banks.
Finding an online bank that provides high interest rates and meets all your needs is as easy as performing a simple search. Get started today and thank yourself later.