SAN FRANCISCO (KGO) -- How much does your bank pay in interest on your savings account? Most I speak with have no idea.
In the world of deposit accounts, certificates of deposit (CDs) set the standard for reliability. You're guaranteed a specific annual percentage yield (APY) for a fixed term, usually ranging from three months to five years. However, CDs come with a catch - your money is locked away for the entire term.
But what if there was a way to earn a higher interest rate without locking up your money? Enter high-yield savings accounts. These accounts offer competitive interest rates, allowing you to grow your savings while maintaining easy access to your funds.
High-yield savings accounts are becoming increasingly popular as people search for ways to make their money work harder for them. Unlike traditional savings accounts that offer minimal interest rates, high-yield accounts offer significantly higher APYs.
One of the top contenders in the high-yield savings account arena is Ally Bank. With an APY of 0.50%, Ally Bank offers a competitive rate that is significantly higher than most traditional banks. This makes it an attractive option for those looking to maximize their savings without sacrificing liquidity.
USAA, another well-known bank, offers a few different savings accounts, but the rates are relatively low. It's important to compare USAA to top competitors to find the best savings account that suits your needs. While USAA may not offer the highest interest rates, they do provide excellent customer service and a wide range of financial products.
Landmark Credit Union stands out among its competitors by offering a high-yield checking account that pays an impressive 7.50% APY. However, it's worth noting that this high rate is only applicable to balances up to a certain limit. Beyond that, the interest rate drops significantly.
When choosing the best money market account for your savings, it's crucial to consider the APY offered, along with relevant minimum requirements and fees. Some banks offer even higher interest rates as you grow your savings balance, making it important to assess the long-term benefits.
While high-yield savings accounts are less common than CDs, some institutions are starting to offer APYs as high as 5%. This can make it challenging to decide between a CD and a high-yield savings account. To make an informed decision, consider factors such as your financial goals, risk tolerance, and liquidity needs.
To help you discover the best high-yield savings accounts, we provide a regularly updated guide featuring FDIC-insured institutions. Currently, the highest rate available is 5.25% APY. By keeping track of the latest rates, you can ensure that you're maximizing your savings potential.
