Post-financial crisis and due to persistently low interest rates along with prevalence of statistical fluctuations, there cannot be a better time than now to preserve and build money. In the main street banks, most savings accounts come with extremely low returns and customers get disappointed each time they check their balances. HYSAs, or high yield savings accounts have proven to be a relatively better product since they attract much higher yields with the full security of a savings account and reasonable flexibility for the saver. It is important during the search for the best high-yield savings in the market today to utilize FintechZoom as financial news and comparison providers.
This blog post aims to give you an understanding of FintechZoom high yield savings accounts and what distinguishes them, as well as the characteristics that we offer, and how it can help you grow your money.
why High Yield Savings Accounts are important
Over the past few years, the usage of high yield savings accounts has emerged as a result of the search of customers for a value for money product different from low interest saving accounts. As you may know, traditional banks provide a meagre 0.01% interest rate for your deposits while HYSAs have 10 to 20 times better interest rates. These accounts entitle the saver to earn higher returns on the invested money compared to the traditional saving accounts but with no exposure to high risks of the stock market.
There is nothing wrong with saving money or having money to save particularly now that the interest on savings is long overdue. High-yield savings accounts avert this problem by providing better APYs and simultaneously no monthly fees. Many of the current HYSAs are from internet only banks as the companies have less overhead expense and can translate those savings into higher yields for their clients.
Since interest rate is normally variable, it fluctuates from time to time but high-yield savings account is suitable for short or intermediate term saving. These accounts can prove valuable if you are saving for a vacation europe, an emergency or perhaps a big purchase.
High-Yield Savings Characteristics and Features.
Let us first look at some of the aspects to consider when choosing a good high-yield saving account before we jump straight into FintechZoom’s best picks. Here are the key factors that FintechZoom considers when evaluating the best options:
Annual Percentage Yield :
The interest rate is the most crucial determinant in selecting a high yielding saving account. It stands for the rate of interest received from your saving’s account inclusive of compound interest. The APY simply means that your money works harder when it achieves a higher number.
Fees:
Most online banks provide their customers with no-fee high-yield savings accounts, but some of them may charge fees for some activities, for example, more than six transfers per statement cycle. You should also need to look for an account that covers as many fees as possible to avoid them eating into your well earned interest.
Minimum Balance Requirements:
They can be with a minimum deposit that opens the account or, simply, to gain the highest interest rate. FintechZoom focuses on the accounts with no minimum requirements for maintaining a balance restricting the range of savers.
Accessibility and Features:
In the modern world where everything is just a click away then convenience is Paramount. A number of High-Yield Savings Accounts, which provide their customers with such amenities as easily downloadable mobile applications, the ability to transfer money between accounts quickly and easily, and convenient means of customer support. Consequently, there may be features to an account, for example, automatic saving or link with other products.
FDIC Insurance :
Any high-yield savings account that earns its title should be safe, with the Federal Deposit Insurance Corporation (FDIC), plans to protect deposits of up to $250,000 per Client per bank
let me share to you the FintechZoom’s list of high yield savings accounts for your savings plan in 2024.
1. Ally Bank: High-Yield Savings Account
Ally Bank has high-yield savings accounts ; it is not difficult to understand why. It provides a good rate with APY occupying a high position among competitors. It is a good choice for individuals who have no time for monthly maintenance fees and do not wish to keep a certain amount in an account as the money is accumulating there.
Ally mobile and online banking are user-friendly, and it becomes easier to control your account, transfer money and track your savings. Okay, to sum it up, the bank provides customer support 24/7 for those, who don’t like to visit branches to solve their problems.
Of course, Ally has its high-yield savings account that comes with something called “Buckets,” which helps in segregation of your saving into specific goals you intend to fund, such as, an emergency fund, vacation, or down payment. This feature may be useful to you in terms of having a system to keep all your financial goals in order and in progress.
Key Features:
- Higher APY (more often than not, than the national average)
- It has no monthly fees and no minimum balance
- Easy to use safe mobile app with built-in budget calculator
- FDIC up to maximum of $250,000 accounts of the holder
2. Marcus by Goldman Sachs: Online Savings
It has been known that Marcus by Goldman Sachs is one of the preferred options of the best online savings accounts since it offers an exciting APY without fees. The account guarantees one of the highest interest rates on the market and will therefore be a wise choice for anyone who wishes to save money.
Some of the factors that separate Marcus from some other competitors include the fact that one does not have to open an account with a set amount of money and there are no charges taken every month for maintaining an account with this company. It makes it a perfect choice for those savers whose balances are not significant or those who do not wish to negotiate the minimum balance required.
It means that Marcus does not have as many additional services and features as some of the other British banks, which, in fact, can be considered its advantage. The emphasis here is on obtaining an easy-to-understand statement with no extra frills yet a really good saving account that will put your money to better use. The website of the bank has a friendly user interface and the banking personnel are always reachable through a hot line and are available on seven days a week.
Key Features:
- Consistently competitive APY
- There are no charges to make a transaction or maintain an account with the company.
- Simple and plain vanilla current account.
- FDIC up to maximum of $250,000 accounts of the holder
3. Discover Bank: Online Savings Account
There is another worthy contender in the shape of Discover Bank, which welcomes savers with a rather generous APY rate and comes with zero fees and no minimum balance. Like Marcus and Ally, Discover offers high interest rate, which is fittingly complimented by low or no fees for its clients and makes it rather attractive for savers.
This component has been worked out extensively, and Discover has a multitude of online and mobile banking related services to help you keep track of your finances. They also provide customer support services at all times, meaning that you will be served at any one particular time.
Moreover, the Discover has these special offers for the newcomers to open a new saving account and receive an extra amount of money when the minimum deposit is fulfilled. Such promotions can make an added difference to your savings at the initial stage, you may need to try out.
Key Features:
- Worthy interest rates or Annual Percentage Yield with no monthly charges.
- Great mobile application and internet banking platforms
- The future chances will allow the client to get sign-up bonuses or other promotions.
- FDIC up to maximum of $250,000 accounts of the holder
4. Synchrony Bank:
Synchrony Bank is another perfect contender that FintechZoom has listed as one of the best since it has one of the highest APYs for the high-yield savings account. Similar to the other accounts on this list, Synchrony doesn’t charge users any monthly fees and doesn’t have a minimum balance requirement which will be advantageous to a number of savers.
What makes Synchrony a little different is that the bank also operates primarily as a savings institution – so cardholders who prize savings also get a bunch of extra incentives. For instance, account holders benefit from free identity theft perks as well as an ATM card as a convenient way to access their money.
Synchrony’s online banking presence isn’t quite as clean as some competitors, but it more than makes up for it by concentrating on savings and offering features that customers will love.
Key Features:
- Offering one of the top APYs is this savings account.
- Fees are absent and you need no minimum balance.
- Assets including ATM services and identity theft protection are part of the program.
- FDIC up to maximum of $250,000 accounts of the holder
5. American Express National Bank:
FintechZoom finishes its list with the high-yield savings account from American Express National Bank. Famous for its favorable APYs this savings account presents a practical and robust approach to increasing your savings.
With no fees or minimum balance, the online savings account from American Express is available for many different savers. While the bank has a clear digital interface that is simple to navigate it does not provide the extensive extras seen in other banks.
With its strong reputation for customer service excellence American Express backs that up with 24/7 assistance. A simple savings account with a strong interest rate makes American Express a fantastic selection for users.
Key Features:
- Competitive APY
- No costs and no minimum threshold applies.
- Popular firm providing reliable customer care.
- FDIC up to maximum of $250,000 accounts of the holder
Conclusion:
Finding the finest savings account is related to your personal financial prefrence and needs. All the banking accounts recommended by FintechZoom provide good interest rates along with accessibility and no service fees for all types of investors.
Individuals who appreciate mobile features and goal planning choose Ally Bank. If you choose a clear-cut and rewarding account with less trouble Marcus by Goldman Sachs or Discover Bank may be perfect for you. If you are looking for identity theft protection along with your savings account option Synchrony Bank stands out.
This article is a collection of High Yield Saving Account FAQs.
1. whats High-yield saving account?
High-yield saving account is simply a savings account that pays a much higher interest than the normal savings account to help your money earn faster.
2. How do I open an account that offer higher interest compared to other saving accounts?
Most banks and financial institutions offering the account can be accessed online and you can open one for yourself by following the laid down procedures. It normally includes completion of an application, completion of identification check and association of a funding source.
3.Is high-yield savings account safe?
However, the high-yield savings accounts offered by those online banks are authorize by the Federal Deposit Insurance Corporation – FDIC up to $ 250,000 per depositor and per bank – and that means the money you deposit is safe in case of a bank failure.
4. Can high yield saving accounts have any related charges to open and maintain the account?
There are currently few high-yield savings account which charge monthly maintenance fees or require minimum balance to be maintained but this does not mean that some fees should not be expected; it’s therefore advisable to read more about the account terms when opening an account with a certain bank since some may charge fees for too many withdrawals or for use of other services.
5. In what manner is the interest charged on a high-yield savings account?
Interest rates on high-yield savings accounts are usually applied daily and compounded on a monthly basis, that makes the interest earned on the deposited money plus the interest accrued on outstanding interest earned previously.
6. Can I access my money easily?
Indeed, high-yield savings accounts allow you to transfer your money easily via the internet or use an app and/or ATM although sometimes, it has certain restrictions on transactions per month.
