With so many factors eroding away at your money, having
savings accounts that earn the most interest is extremely important.
In my last article, I listed 10 Factors That Are Eroding Away At Your Money. Knowing what those factors are extremely important when you’re trying to protect your money against them. Although there are a few ways to really reduce those factors, maximizing the interest earned in your savings account will go along way.
Typical savings accounts average 0.07% whereas our top-rated online savings accounts below dish out more than 32x the returns of traditional banks and are insured by the FDIC. Simply put, most people are missing out on much larger guaranteed returns by letting their money languish in a traditional bank account with a low Annual Percentage Yield (APY). Although this is not all of the available options, take a look at these banks as an example of what’s out there:
- Marcus Savings by Goldman Sachs — 2.05% APY
- American Express National Bank — 2.10% APY
- Barclays Online Savings — 2.05% APY
- Synchrony Bank High-Yield Savings — 2.20% APY
- Ally Online Savings — 2.00% APY
- CIT Savings Builder — 2.25% APY (tiered)
- Discover Online Savings — 2.00% APY
- Alliant High-Rate Savings — 2.00% APY
- My Savings Direct – 2.40% APY
While you’re looking at the different options, please keep in mind that a savings account is nothing more than a tool. Like any good toolbox, there are different tools for different jobs. Meaning this, do not be afraid to open different accounts for different purposes.
Make sure you name the accounts as you open them so you know the purpose of the account. For example – Rainy Day Account, Vacation Account, New Tires, Investment Account, etc.
If you are self-employed, I would suggest opening an account and naming it Tax Account. Speak with your accountant to determine the percentage of each check that should go into the account. Using a strategy like this ensures you are putting money away for various wants as well as obligations you will have in the future.
**Disclosure: Although I do use the strategies listed above, I am in no way associated or affiliated with any of the banks above. Please perform your own due diligence and consultant your accountant before opening any account with any bank.