This Is Why Everyone Is Switching to Online Savings Accounts
Hint: You Can Get 18x More Interest Than You’re Getting from Your Local Bank
Today, everything is online – including your money. Companies pay employees directly online via direct deposit, and you’re able to pay bills with online bill pay, handle all of your banking needs, and even access your money right from your smartphone. It’s because of these new internet capabilities that people rarely go to local bank branches
Today’s savings accounts don’t do much for your money. On average, bank savings accounts pay a paltry interest rate of 0.10 percent APY.
That means you’ll literally make just a few dollars each year. While the bank uses your money to enrich themselves.
Instead, you need to consider a high-interest savings account with a much higher rate of earning.
How Online Banks Can Offer Higher Interest
Because online banks don’t have to maintain local branches around the country, they can offer high-interest savings paying upward of 2.25% APY — which is many times higher than the national average of 0.10%. That may not sound like much of a difference, but it sure adds up quickly.
Our Editors searched a number of banks to find the best high-yield savings accounts. We looked for the best savings interest rates plus, free access and zero fees to use ATMs and more.
Plus, many of these online accounts offer:
And since online banks are regulated the same as ‘branch’ banks – you can rest easy knowing your money is safe, sound and insured.
Some of Our Top Choices for 2019 Are…
CIT Bank Savings Builder, 2.45% APY
Steady savers can earn 2.45% APY when they deposit at least $100 each month in CIT Bank’s Savings Builder account. If you don’t have $100 to deposit each month, you can open a CIT Bank Premier High Yield Savings account and still earn a competitive APY of 1.55%.3There are no monthly fees or daily minimum balance requirements for either account, but the minimum opening deposit is $10.
Marcus by Goldman Sachs, 2.15% APY
Marcus by Goldman Sachs pays a highly competitive 2.15% APY on savings deposits (as well as strong CD rates for longer-term savings goals). This online bank charges no monthly fees2, and the minimum balance required to earn interest is just $1.
HSBC, 2.25% APY
HSBC’s Direct Savings account is an online option from a well-known international bank. It pays a competitive 2.25% APY and has no monthly fees. Also, you need only $1 to open an account. Direct Savings also comes with HSBC’s set of online management tools. Customers can set custom savings goals, track income and create email alerts4.
Ally Bank, 2.20% APY
Ally Bank has one of the best savings accounts when it comes to overall digital experience. The website is easy to use, and the bank’s mobile apps are compatible with Apple, Android and Windows devices. It also offers real-time chat support, unlike many of its competitors. The 2.20% APY is among the best on the market, and there’s no monthly fee or minimum deposit requirement5.
Where To Find The Best Online Savings Accounts
If you’re ready to make the switch to an online savings account, it’s easy to do so. You just need to do your research before choosing any account you find online – compare options by performing an online search. This will allow you to make sure you’re finding the best interest rates, the lowest possible fees, and a reliable, trustworthy online bank.
