With both the current state of the economy and the holiday season quickly approaching, it’s important to save and budget. Just a short few months ago, we were earning 0.01 to 0.5% APY on our savings accounts. It made much more sense to invest that money rather than save. With the market continuing to fall and rates continuing to rise, you can have more peace of mind that your money is safe and steadily growing.
Today’s savings rates are back up to 4% APY and higher with online banks. These are yields we have not seen since 2019. Here are a few of the top banks you should consider with virtually no fees to open or maintain your account.
1. Ally Bank
Ally Bank is currently offering 3.75% APY on their Online Savings Account. With virtually no fees to open or maintain your account, you will earn $21 in interest on your $1000 saved after 1 year. One of Ally’s best perks is their free buckets and excellent customer service. You can save your money in multiple buckets, or categories within one savings account. That means you can take your $3000 saved and set aside $1000 for emergency car repair, $1500 for a small vacation, and $500 for holiday gifts in three separate buckets.
2. Yotta Savings
While Yotta Savings has a base yield of 0.40% APY, you will actually earn closer to 2% with their prize-based lottery savings concept. For every $25 you save, you earn a lottery ticket that is entered in a weekly drawing to win “interest earnings”, a Tesla, or even $10,000,000. As long as you maintain a minimum of $5 in your account, there are no fees. Like Ally Bank, Yotta offers savings buckets, direct deposit, mobile bill pay, debit cards, and more. Sign up today with code HYDERFT and earn up to 100 free lottery tickets.
3. Betterment
Known for retirement planning more than daily saving, Betterment’s Cash Reserve is currently offering 3.80% yields. If you want to combine long term investing with a Roth IRA, Traditional IRA, or HSA, Betterment is the one stop shop that offers all the products you need to grow your net worth. Sign up using this link and get up to $5,000 of your investments managed free for a year.
Summary
While these three savings accounts are great choices, there are ways to get even higher yields on your savings. Do your research. Online banks with very high APY’s sometimes have hidden fees or a lack of key services. Here are the top 5 highest yields offered as of 9/28/2022. Rates have significantly reduced as of 1/3/2023.
- Bask Bank 2.75% APY
- UFB Direct 2.61% APY
- CIT Bank 2.40% APY
- Citizens 2.35% APY
- CIBC 2.32% APY
With all of these changing interest rates, I decided it was time to update my Top 5 HELOC’s page. Check it out if you are interested in opening a Home Equity Line of Credit for debt consolidation, peace of mind emergency money, or home improvement.
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