Saving money is something that everyone should be doing, but also you want to get the best out of your savings. That’s why a high-yield savings account is your best friend.
If you want to be financially free this is one of the first steps to achieve it.
What are high-yield savings accounts?
High-yield savings accounts are bank accounts that earn you a higher interest rate for deposits than a traditional savings account. You might also see them referred to as high-interest rate savings accounts. When it comes to savings, a higher interest rate can be a game changer. It means a better return on your money so you avoid losing money with the inflation. The interest rate is what the bank will pay you for the privilege of keeping your money.
But not every bank has this type of high-interest accounts. That’s why I will recommend some bank accounts that earn you above 2% APY.
But how do I know If my money is safe?
Whenever you’re about to choose your bank make sure is an FDIC-insured bank.
Every bank on this list will be FDIC-insured at the time this post was written. But this can change over time, so always do your own research before choosing a bank.
Here more info about FDIC (Federal Deposit Insurance Corp).
High-yield savings accounts
Wealthfront
Weathfront has one of the highest interest in the market right now. But not only that, they are providing FDIC insurance up to $1 million dollars. The Wealthfront savings account has no fees which is great and it only takes $1 to open an account. No transactions limit.
Right now you can earn 2.57% APY. Rate is current as of July 13, 2019.
CIT Bank
The CIT Bank Savings Builder Account is another great option. This account is for those that are saving for the long term. It has no maintenance fees but has a limit of six transactions per statement cycle.
Right now you can earn up to 2.30% APY. Rate is current as of July 13, 2019.
But to keep that interest there are two conditions:
- Maintaining a balance of $25,000 or more
OR - Making at least one monthly deposit of $100 or more
Synchrony Bank
Synchrony is not very known but don’t let that turn you down. Because they are one of the best banks out there. They have a $0 minimum account which is good for low balances. You can access to your money via ATM if necessary.
Right now you can earn 2.15% APY. Rate is current as of July 10, 2019.
Of course, there are more banks that will offer similar rates but this are my personal recommendations based on my experience.