Bank Accounts with High-Yield Interest
Let’s make sure your money is working for you right now. Let’s optimize your wallet by finally taking your hard-earned money from the bank account with an awful interest rate into an account that can pay you more.
With little research, you can find accounts that offer competitive rates -- much better than most national brick and mortar banks and even regional credit unions -- such as Capital One 360, Ally, etc. With even more research, we can even get even higher rates than those mentioned. I am merely recommending that you consider the list of banks below that offer high-yield interest accounts that earn a better rate because of their business model.
Unfortunately, all of these rates will fluctuate over time. Because of this, we promise to update this list for all of our readers every quarter. We have researched all of these banks, and all provide FDIC insurance. Another critical factor to note is the financial institution's clear advantage with a proven track record of offering high-interest rates. Some banks want to earn your business with the highest APY rate but then lower the rate soon after, otherwise known as the ‘bait-and-switch’ rate tactic. Banks like Ally, Discover, American Express, and others have been known to offer competitive interest rates for many years. Because of this, they will remain as our favorite banks that offer high-yield accounts. Their rates will fluctuate but will likely be in the higher rate tiers compared to other institutions.
Again, these are all checking or high-yield saving accounts and are FDIC insured up to $250,000 (See www.FDIC.gov for details). There are no fees, no minimums, no problematic requirements to meet. Whatever your balance, you won’t get charged a fee. With no minimum balance, no deposit is too small.
At Financial Optimist, we recommend that you DO NOT close your “primary” bank account. Even though your primary bank account is not earning you much interest, we are simply recommending that you consider having these high-yield accounts complement your savings strategy. By linking your "primary" bank with the institution you choose, you will be able to fund your accounts via ACH, a transfer that can take 1-3 business days to complete. More importantly, you can easily manage your accounts anytime online.
Here are the CURRENT (as of 03/01/2021) best options available, rated highest to lowest:
1.00% APY
AND if you are a T-Mobile customer, you are eligible to earn 4.00% APY on up to $3,000.
0.85% APY
-$100 minimum deposit required at open
0.67% APY
0.55% APY
0.55% APY
0.50% APY
0.50% APY
To summarize, assuming that you pick the lowest-earning APY rate from the list above (0.40% APY) compared to what you are likely earning from the BIG BANK (0.01% APY), you will be able to make $39 more per year for every $10,000 in your established savings account. Of course, this adds up with the more cash you keep at hand.
If you have $100,000, you will earn $500 per year with the lowest-earning rate from the list above.
If you have the same $100,000 at your BIG BANK, likely earning 0.01% APY, you will earn a measly $10 per year.
I hope by taking these simple steps you will be able to put more money back in your pocket. Want to earn more? Let’s take a look at High-Yield Reward Accounts
