A savings account is an essential part of protecting your financial health. It allows you to keep your money safe and grow it with interest. However, not all savings accounts are created equal. Some offer higher interest rates than others, making them a better option for earning record yields. In this article, we will explore the best high-yield savings accounts available today.
Online high-yield savings accounts often have higher rates and lower fees than big, brick-and-mortar banks. They are also more convenient, as you can manage your account from anywhere with an internet connection. Some of the top online high-yield savings accounts include Ally Bank, Marcus by Goldman Sachs, and American Express National Bank.
Ally Bank offers a high-yield savings account with a 0.50% APY. They also have no monthly maintenance fees and no minimum balance requirements. Marcus by Goldman Sachs offers a high-yield savings account with a 0.50% APY as well. They also have no transaction fees and no minimum balance requirements. American Express National Bank offers a high-yield savings account with a 0.50% APY and no monthly fees.
Another option for earning record yields is a money market account. These accounts typically have higher minimum balance requirements than savings accounts, but they also offer higher interest rates. Some of the top money market accounts include Capital One 360, Sallie Mae Bank, and TIAA Bank.
Capital One 360 offers a money market account with a 0.50% APY for balances over $10,000. They also have no monthly maintenance fees and no minimum balance requirements. Sallie Mae Bank offers a money market account with a 0.45% APY for balances over $0.01. They also have no monthly maintenance fees and no minimum balance requirements. TIAA Bank offers a money market account with a 0.40% APY for balances over $500. They also have no monthly maintenance fees and no minimum balance requirements.
It's important to note that savers considering non-traditional, high-yield accounts should approach them with caution, financial advisors say. While these accounts may offer higher interest rates, they also come with risks. Some may have higher fees or minimum balance requirements, while others may not be FDIC-insured.
To help you make an informed decision, here are today's best rates and the current average yields for traditional savings accounts, high-yield savings accounts, and money market accounts:
- Traditional savings accounts: Average yield of 0.05%
- High-yield savings accounts: Average yield of 0.40%
- Money market accounts: Average yield of 0.15%
With elevated interest rates translating to higher yields on deposit products, it could be a perfect time to hold your savings in multiple accounts. This strategy can help you earn more interest without sacrificing the safety of your funds.
In conclusion, the best high-yield savings accounts for earning record yields are those that offer competitive interest rates, low fees, and FDIC-insurance. Online banks and money market accounts tend to offer higher rates than traditional banks, but it's important to do your research and choose an account that meets your specific needs. By opening a high-yield savings account or money market account, you can take advantage of today's high interest rates and grow your savings over time.
