There are no excuses for sticking with a low-rate savings account these days. The best savings interest rates can mean the difference between earning $10 or $200 in a year…
Saving Accounts 101
Savings accounts give customers the flexibility to deposit money, earn interest, and withdraw funds as needed. They also keep money safe—savings accounts are federally insured, which means that the government covers up to $250,000 if your bank fails. Score!
The best savings accounts should come with great customer service, cutting-edge technology and higher-than-average interest rates, and they should have low or no fees.
Here are our top picks for August 2019:
Goldman Sachs Bank USA – 2.15% APY, no minimum balance (but no ATM access)
Barclays Bank – 2.10% APY, no minimum balance
Synchrony Bank – 2.15% APY, no minimum balance, (and ATM access)
American Express National Bank – 1.90% APY, no minimum balance (and no fees)
Vio Bank – 2.52% APY, $100 to open
Annual Percentage Yields
Annual percentage yields (APY) with some of the best savings accounts are significantly higher than the national average of 0.09%, so you can grow your money faster without much effort on your part. With a rate of 2% annual percentage yields, a balance of $10,000 would earn about $200 after one year. An average account would sadly earn just about $10.
Online vs Brick-and-Mortar
Online savings accounts provide flexibility and security, with additional advantages over traditional brick-and-mortar banks and credit unions. For starters, customers can manage money via smartphone or computer without depending on local branch hours and tellers. But most notably, they also offer higher rates and lower fees.
The best online savings accounts can easily earn you an APY of 2.15% or greater, while the average rate a traditional brick-and-mortar bank is offering remains at a sad 0.26%.