If you're looking for a place to stash your cash and earn a little extra money on the side, high-interest savings accounts could be the answer. These accounts offer interest rates that are much higher than traditional savings accounts, which can help grow your money faster. In this article, we'll explore some of the highest interest savings accounts available today and what you need to know before opening one.
The FDIC-insured UFB Preferred Savings account, for example, is offering one of the highest interest rates currently available at up to 5.02% APY. This account is available to anyone who wants to open it, and there are no monthly maintenance fees. Another high-yield savings account to consider is the LendingClub High-Yield account, which offers a 4.25% APY.
For those who prefer online banking, there are several options available. Varo Savings Account offers a 2.80% APY for balances up to $10,000, and Mango Savings™ offers up to a 6.00% APY for balances up to $2,500. Western... is another online bank that offers a high-yield savings account with an APY of up to 2.45%.
High-yield savings accounts generally offer higher interest rates than regular accounts, but they're particularly helpful to open now when interest rates are low. With a high-yield savings account, you can earn more money on your savings without taking on additional risk. It's important to note, however, that high-yield savings accounts may have higher minimum balance requirements or other restrictions.
For example, traditional savings accounts offered by big banks will usually have much lower rates than online high-yield savings accounts. However, if you prefer to keep your money with a bank that has physical branches, you may need to accept a lower interest rate. You should also be aware that some banks may charge monthly maintenance fees or other fees that could eat into your interest earnings.
It's possible to find a high-yield savings account paying 5% interest rate to 7.25% interest rate. Benefits of High-Yield Savings Accounts include earning more money on your savings, easy access to your funds, and FDIC insurance. FDIC insurance protects your money up to $250,000 per depositor, per insured bank, for each account ownership category.
For high interest savings in Quebec, Laurentian Bank offers a great regular interest rate of 3.0% and better service in French than most. It's important to compare rates and fees from multiple banks before opening an account to ensure you're getting the best deal.
“Returns on savings accounts and CDs are the best in 15 years,” said Greg McBride, chief financial analyst at Bankrate. “Savers are finally getting a break after years of rock-bottom rates. With the Fed signaling that they will be keeping interest rates low for the foreseeable future, savers can confidently lock in higher yields on CDs and online savings accounts.”
Today's best interest rates on CDs, or certificates of deposit, are around 1.00% APY for a one-year term. CDs are a low-risk investment that can offer higher interest rates than savings accounts, but they require you to lock up your money for a specified period of time. You should also be aware that there may be penalties for early withdrawal.
In conclusion, high-interest savings accounts are a great option for those looking to grow their savings without taking on additional risk. With a little research, you can find an account that offers a competitive interest rate and meets your needs. Whether you prefer an online bank or a traditional bank, be sure to compare rates and fees before opening an account.
