Are you looking for a better way to make your money work for you? Investing is always an option, but not everyone wants to deal with the risk that comes from a volatile stock market. Instead, why not consider opening a high-yield savings account? These are similar to a regular savings account, but the APY is much better — sometimes as high as 1% APY!
You can find high-yield savings accounts at many online banks. Because these institutions don’t have to pay to run a physical location, they save a considerable amount of money. In turn, online banks pass these savings onto their customers.
Like a traditional savings account, high-yield accounts are useful for holding money you don’t use daily but still want easy access in case of an emergency. If you put your emergency fund or the money for a big-ticket purchase in a high-yield account, you can reach your savings goals even faster.
If you’re ready to get more from your money, check out NerdWallet’s top choices for the best high-yield savings accounts for December 2020.
American Express National Bank
American Express Nation Bank’s high-yield savings account offers 0.60% APY, has no monthly fees, minimum deposit requirements, or monthly balance restrictions. The downside is AmEx’s mobile app is only available to credit cardholders. So, if this savings account is your only AmEx financial product, you won’t have access to mobile banking.
To add money to your account, connect your existing bank account, enroll in direct deposits, and send a check to AmEx’s Salt Lake City office. Or, if you have an AmEx credit card, you can deposit your check with the mobile app.
Discover Online Savings
Discover’s online savings account offers a 0.50% APY and has no monthly maintenance fees, minimum deposit, or minimum balance requirements to start earning interest.
Axos High-Yield Savings
With Axos’s high-yield savings account, you can earn 0.61% APY on your money without paying a monthly fee or worrying about minimum balance requirements. However, you will need to deposit $250 to open an account.
CIT Bank Savings Builder
CIT Bank’s Savings Builder account gives you a 0.45% APY. However, to receive this rate, you must either maintain a minimum balance of $25,000 or complete monthly deposits of $100 or more. If you don’t meet these requirements, the APY drops to 0.29%.
To open an account, you must deposit $100. Although this CIT Bank seems to have more restrictions than other online banks, you don’t have to pay annual or monthly fees.
At 0.81%, Varo Bank has one of the best APYs on the market. Not only that, when you open an account, you’ll also receive a Visa debit card. And because Varo Bank is a member of the Allpoint network, you’ll have access to more than 55,000 ATMs across the US, Puerto Rico, Canada, Mexico, the UK, and Australia — no fees or surcharges necessary, including foreign transaction penalties.
One of the best features Varo Bank offers is its early paycheck delivery. If you enroll in direct deposit and Varo is notified the day before payday, it will move the money from your paycheck to your account as soon as two days early.
Because Varo is an online bank, depositing cash is a little more complicated. According to NerdWallet, the only way to deposit some money into your account is by visiting a 7-Eleven, CVS, Walgreens, or other business within the Green Dot network. Additionally, there is a $5.95 charge to deposit your money at these retailers, plus caps on how much you can deposit.
Chime Savings Account
Chime’s high-yield savings account offers 1.00% APY — the highest of any on this list. Plus, you don’t need to worry about maintaining a minimum balance every month. Not only that, but whenever you use your Chime bank card to make a purchase, Chime will round up to the next dollar and automatically deposit the change in your savings account.
Another way Chime makes saving easy is by automatically transferring 10% of your paycheck to your savings every payday. However, to open a Chime Savings Account, you will first need to open a checking account.
- Armstrong, Tony. “Axos Bank Review: Checking, Savings and CDs.” NerdWallet, 24 Sept. 2020, www.nerdwallet.com/reviews/banking/axos-bank.
- Burnette, Margarette. “Discover Bank Review: Checking, Savings and CDs.” NerdWallet, 20 Nov. 2020, www.nerdwallet.com/reviews/banking/discover-bank.
- Burnette, Margarette. “CIT Bank Review: Checking, Savings, CDs.” NerdWallet, 18 Sept. 2020, www.nerdwallet.com/reviews/banking/cit-bank.
- Hagen, Kailey. “Best Savings Accounts: High-Yield and Online.” The Motley Fool, 24 Nov. 2020, www.fool.com/the-ascent/banks/best-savings-accounts/.
- Holbrook, Alice. “Chime Review: Checking and Savings.” NerdWallet, 21 Oct. 2020, www.nerdwallet.com/reviews/banking/chime-banking.
- Tierney, Spencer. “American Express National Bank Review: Savings and CDs.” NerdWallet, 17 Aug. 2020, www.nerdwallet.com/reviews/banking/american-express-national-bank.
- Tierney, Spencer. “Varo Bank Review: Checking and Savings.” NerdWallet, 13 Nov. 2020, www.nerdwallet.com/reviews/banking/varo.