5 high-yield savings accounts to compare

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    5 high-yield savings accounts for comparison
    5 high-yield savings accounts for comparison

    Whether you’re building your emergency fund or need a place to keep your money for short-term goals, you can’t go wrong with a high-yield savings account. High-yield savings accounts pay 20 to 25 times the national average of a standard savings account. What’s more, they’re FDIC insured, which means they’re safe and your money is available at all times.

    The Federal Reserve’s recent rate cuts have seen financial institutions cut interest rates on high yield savings accounts by almost half! If you’re wondering if you should take advantage of those lower interest rates, we’ve put together a list of the best high-yield savings accounts to compare for 2021.

    What is a High Yield Savings Account?

    High-yield savings accounts are deposit accounts that are available online or at brick and mortar financial institutions. They usually pay a higher interest rate than traditional savings accounts and offer better returns than traditional checking accounts.

    Here are some standard benefits of high-yield savings accounts:

    • No or low fees: You can find high yield savings accounts with no monthly fees or lower fees for insufficient funds.
    • Higher APYs: High Yield Savings Accounts typically have higher APYs than traditional savings accounts.

    When looking for high yield savings accounts to compare, consider annual percentage return, frequency of interest rate changes, minimum deposit, minimum balance, and withdrawal options.

    5 high-yield savings accounts to compare

    There are dozens of different options when it comes to high yield savings accounts, but each has different provisions to consider. Here are five high-yield savings accounts to compare.

    1. Discover the online savings account

    APY: 0.45%

    Minimum deposit: $ 0

    Discover Online Savings Account offers a low plan with no fees for insufficient funds, excess transactions, or monthly maintenance. There is also no minimum deposit required to open an account and interest is calculated and paid monthly on a daily basis. The APY is variable and can change before or after the account is opened. Discover also offers 24/7 customer service available both by phone and online chat.

    2. Allied savings with high returns

    APY: 0.50%

    Minimum deposit: $ 0

    Ally is an online bank that offers competitive pricing and has received numerous top awards for online banking. Ally High-Yield Savings has no monthly maintenance fees and there is no minimum deposit. Similar to most banks, there is a limit on transfers to and from the high-interest savings account to six times per account statement cycle. If the limit is exceeded, a fee of USD 10 will be charged for each transfer. Although there is no additional transaction fee during the coronavirus pandemic. The APY is variable and can change. It can remain the same for all balance levels or change based on the end-of-day balance of the account.

    3. Capital One 360 ​​Performance Savings

    APY: 0.40%

    Minimum deposit: $ 0

    Capital One’s 360 Performance Savings account is five times the national rate and has a competitive but variable APY on each balance. There are no deposit, minimum balance, or monthly fees. The interest is calculated and paid monthly. You can set a savings goal and schedule recurring transfers from a Capital One 360 ​​checking account until the full amount is saved.

    4. Marcus High Yield Savings

    APY: 0.50%

    Minimum deposit: $ 0

    The Goldman Sachs Marcus High Yield Online Savings Account does not require an opening deposit or minimum balance. There are also no monthly maintenance fees. You can link other incoming and outgoing bank accounts to same-day transfers of $ 100,000 or less to / from other banks. APY prices change and there are deposit limits for customers. The maximum deposit amount for all single and joint deposit accounts together may not exceed USD 3,000,000 per account holder, with a maximum of USD 1,000,000 per account.

    5. Varo Bank savings account

    APY: 0.40% to 2.80%

    Minimum deposit: $ 0

    To qualify for a Varo savings account, you also need to open a checking account. When you make five debit card purchases and receive $ 1,000 in direct deposits, you’ll earn the highest APY every month on balances up to $ 10,000. The interest is calculated daily and paid monthly and has a tiered interest system. There is no minimum deposit required to open an account and you can start earning interest from a deposit of $ 0.01. This is a pure online bank with no physical locations.

    High-yield savings accounts for comparison for 2021

    Before opening an account, make sure you select the account that suits your needs and situation. When looking for high yield savings accounts to compare, you want the best return with zero to minimal costs or fees.

    Some of the banks we have listed only offer online savings accounts. So keep that in mind whenever you need to be able to deposit cash. Every financial institution has its own high-yield savings account rules. So be sure to read the fine print.

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