With all sorts of different investment accounts to choose from, the most secure is certainly a savings account. The only catch is that the interest rates are significantly lower than those competitor accounts where risk is much greater. But their are high yield savings accounts available.
For those that prefer savings accounts as an investment, there are a multitude of different banks that each excel in a particular area including, but not limited to: ATM access, great APY financing (high yield), good experience online, and great bonuses.
Below Are a Few Great High Yield Savings Account Banks
If you are one who does not like to pay those petty ATM fees every time you need to withdraw money, then Synchrony Bank is the best option. They provide a nifty ATM card unlike many other banks and if you join their Plus Program there is no fee for using ATM’s. But it gets better, Synchrony Bank will rebate you $5 each month toward your out of bank ATM withdraws which many banks do not offer.
Synchrony bank also provides additional perks including no monthly service fee, no minimum balance requirement, discounts to hotels and theme parks, free checks, online photo check deposits, and a whopping 1.05% interest rate which makes it one of the highest yielding saving accounts!
Unfortunately, they are only based in New Jersey and do not offer a mobile app. All banking has to be done online and any support needed will likely require it to be done via email or phone. In the grand scheme of things this bank has many benefits despite the few downsides.
Anybody who cares about their digital experience when banking should consider Ally Bank. Although their interest rate is not as high as Synchrony’s, it is still 1.00%. Their bank is known for their website and mobile app (compatible with Apple and Android phones). With one of the best banking websites in the business, they have been given splendid reviews from the Pew Charitable Trusts.
Inclusive with your membership is also a very convenient 24 hour customer service care that most banks do not offer. Just like Synchrony bank they do not have a minimum balance or monthly fees which is all the more reason this bank is a great option.
Barclays and CIT Bank
Some other banks that have competing interest rates include Barclays and CIT Bank. Barclay’s interest rate matches Ally Bank’s rate at 1.00% but is still 5 cents cheaper per dollar than Synchrony Bank, but is certainly still high for most banks. Like most other banks they also do not have a minimum balance requirement or impose a monthly fee. They offer online banking and mobile banking through an app that has been given great reviews online.
CIT Bank, however, provides an interest rate of 0.95%. While this is still high compared to most banks, it is lower than all of the other banks mentioned thus far and they do require a minimum balance of $100 to open an account with them. With fewer perks compared to the other banks, they still offer the banking necessities: a high yield savings account option, online banking services and telephone customer service.
These two banks are not as highly renowned and do not provide great perks like the other banks mentioned above.
There is one bank, however, that can be deemed as the bank with the best rewards or bonuses. Discover Bank is known for offering bonuses, sign up rewards, and cash back for using their banking system. Oftentimes you can open a new account with them and receive a free $50 gift card or something along that line. Although they offer all of these eye catching bonuses, they do require a minimum deposit of $500 to open an account. After opening an account, Discover does not require a minimum balance and does not impose a monthly service fee.
Amboy Direct Esavings
Lesser known than Discover, but still worthy of banking, is Amboy Direct Esavings. They are much different than Discover and other banks when opening an account because they require a much larger average balance of $3,000 in order to qualify to receive a $50 credit towards your account (about 1.7% interest).
That 1.7% interest is only on the initial period of 90 days after signing up, once that is up the following interest rates is either 0.3% or 0.8%. To qualify for 0.3% interest the minimum balance must be $300 and the maximum is $2,999. For 0.8% interest the balance must be anywhere from $3,000 to $100,000. This banking institution is linked to Amboy Bank and is essentially the online form of banking for them. Unfortunately, this institution does not provide a high yield saving account like other banks that provide 0.95% to 1.05% interest.
Which Bank Should You Choose?
If you are dealing with a lot of money, perhaps Ally Bank is perfect for you. Every bank is FDIC Insured up to $250,000 so choosing a bank for security purposes is made easy. Ally Bank provides the best customer service and online digital experience making it easy to handle conflicts in the scenario you need to freeze your account or resolve payment issues) and deposit and move around money fast. Other banks do not offer the customer care that Ally Bank does, but unlike Discover they do not provide many rewards or bonuses. Discover Bank is the go to bank for rewards and bonuses, but is not known for much else outside of their perks system.
With savings accounts being the safest option to still earn annual interest, there are many options to choose from. Whatever is most important to you, whether it be rewards and bonuses, excellent customer care, or the highest annual interest, there are many banks each providing one or more of those.
Although Mutual Funds and Index Funds might get you a better ROI, the benefit to high APR savings accounts is the fact that the money is liquid. It is much more accessible as opposed to other investment types and although it is not the highest returning investment, it is a very dependable, safe option. And there are high yield savings account options as high as 1.05%!