If you want to switch banks and are interested in a high-yield or high-interest savings account, here are some suggestions you should consider according to an online financial forum. Of course, when looking at a new financial institution, it is always good to read the fine print of the account before signing up.
Users urged those searching to verify that the Federal Deposit Insurance Corporation (FDIC) protected the bank, ensuring that the Federal government insures their money deposited in the bank from potential loss.
Others advised that you want to check if there are any restrictions on transfers, fees, and how long it takes for the bank to transfer money in or out of the account. Another tip was to temper the desire for the highest interest rate versus the services that the bank could provide.
1. Capital One Bank
While Capital One is mainly known for its credit cards, it offers high-yield savings accounts too. More than one user gave Capital One’s 360 Performance Savings high marks for its 3.4% annual percentage yield (APY) rate with no fees and minimums.
The bank also allows customers to open multiple accounts to customize their banking to serve their financial goals. However, one commenter cautioned that some banks that you may have credit card debt sometimes reserve the right to seize the money in your bank account to repay any debt that you may have outstanding.
2. Marcus By Goldman Sachs
Goldman Sachs is a well-known investment bank, and Marcus is their online savings and investment brand made to compete with the growing market of online banking services. Marcus has the standard features that one can expect from online banking, no fees, a mobile app, and no minimum deposit required.
One person advised that Marcus was a good choice he and his son had used successfully for several years and quoted a 3.3 APY rate. However, there was pushback from another poster who called some Goldman Sachs actions “shady.” the current APY listed on the Marcus site is 3.75%.
Another online bank in the discussion is Ally, with an APY of 3.4%. However, people did mention that Ally has fees that it charges on its online savings account.
One of these fees is an excessive transaction fee of $10.00 for e-commerce transactions exceeding six per transaction cycle, a $15.00 expedited transaction fee, and $20.00 for outgoing domestic wires. In addition, the FDIC insures Ally banking accounts.
Discover is another online banking option with credit cards and online savings accounts, which FDIC insures. Their APY rate is 3.4%, and one poster recommended trying their services.
When questioned by the original person who asked for recommendations, the poster admitted having difficulties with long wait times when transferring funds from their online savings account with Discover.
5. T-Mobile Money
T-Mobile, a cellular phone service company, has also entered the online banking business, which may be a first. Their high-yield savings accounts have a 2.5% APY if you aren’t one of their cell phone customers and a whopping 4.0% APY if you are a TMobile or Metro PCS customer.
The other advantages of the funds are no overdraft or additional account fees and access to 55,000 payment-free ATMS. Many recommended their services and added that cell phone customer accounts had APY rates of 4.0% up to $3,000 and 2.5% over $3,000.
6. Barclay’s Online Banking
Barclay’s Bank also has online savings accounts, and someone recommended looking into their bank as a good possibility for a high-yield online savings account. Research shows that Barclay’s online savings accounts have many advantages, like no minimum balance to open and no maintenance feeds with an APY of 3.6%.
Upgrade is an online bank with premier savings account with a high APY rate of 4.13%. Someone recommended that the bank deserved a look even though the minimum balance for the highest APY is $1,000.
Admittedly, since this is one of the highest rates out there and the bank charges no account or transfer fees, it does have other advantages. Of note is that deposits are held at Cross River Bank and insured only up to $250,000, or funds at participating institutions where the bank may place your funds can be eligible for FDIC or NCUA insurance.
Another participant said they had a high-yield savings account with SoFi and were pleased with it. However, they advised that the APY rate on savings accounts was 3.75 and 2.5% on checking accounts.
This person added that they handled their money strictly through online transactions, never needed the bank’s ATMs, and that the bank’s bill paying and investment banking options suited their needs.
Suppose you are looking for one of the highest-yield-interest savings accounts. In that case, Wealthfront is worth a look with an APY of 4.5% on savings accounts, insured through partner banks with the FDIC up to $2 million, unlimited transfers, no account fees, and no minimum balances required. A user mentioned the bank because the APY was so high.
10. UFB Direct
This online bank was a topic of discussion because it has one of the highest APY in the game at 4.21%. However, the person who originally asked for suggestions had already researched the bank and found that customer reviews could have been better.
The bank is a brand of Axos Bank and is FDIC insured to the maximum limit. UFB Direct does, however, have assets like no monthly maintenance fees and no minimum deposit requirement.