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High Yield Account for Savings
13 Jun 2018

High Yield Account for Savings: Your Guide to the Best Online Savings Accounts

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You’ve worked hard to earn your money, so you want a safe place to put it. Why not save your funds in a high yield account online?

While some still prefer going to a brick and mortar bank, the accessibility of online banking is pulling more people towards the internet. Additionally, while the national average for APYs is 0.06% many online savings accounts boast rates over 1%.

Because there are many high yield accounts to choose from, it’s important to analyze the benefits these online banks offer. To find the perfect online bank for you, you should compare interest rates, customer service, and bank access.

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Why Should You Get an Online Savings Account?

If your primary interest in online banking is making your money work for you, then you’re in luck. The interest rates for the banks we mention below are anywhere from 1% to 1.75%. That’s over 20 times the national average.

But there are other perks to storing your money in a high-interest savings account. Many high-yield accounts don’t need an initial deposit. Most of the banks that do only need $25 to get your savings started.

Because your bank is online, you can check the status of your savings from anywhere. You can also send transfers and make deposits all from the comfort of your smartphone.

Savings accounts are set up to encourage you to save your money. Federal regulations set up a maximum number of withdrawals you can make from your savings account per month. This means you can’t dip into the piggy bank too often, or you’ll get a slap on the wrist.

Setting up a separate online savings account can also help you save money psychologically. The phrase “out of sight, out of mind,” applies to online savings. When the savings account is in another app, you’ll be less tempted to make withdrawals.

What Do I Look for in a High Yield Account?

The biggest draw of a high yield account is that savings interest rate, but that shouldn’t be the only thing you consider.

Find out whether the bank has a low monthly fee or any monthly fee at all. You should also know what the minimum balance is, as well as any administrative fees you might run into.

You should also think about how easy is it to access the money in your savings account. A high yield savings account isn’t much use to you if you can’t get the money in an emergency.

Because your account is online, you should also look at the customer service experience. You don’t want to experience an issue and have to jump through customer service hoops to resolve it.

Another factor to think about is the mobile app experience. Is the app easy to navigate? Does it crash all the time? How secure is the log-in?

When you’re picking your online savings account, figure out what your goals are. Are you saving as a business, or is the account going to be for personal use? These questions will help you determine what the best online savings account is for you.

The Best Online Banking Accounts for Your Needs

Now that you’ve asked yourself some questions about why you want an online savings accounts, we’ve come up with a few savings banks that can help you.

Ally Bank- The Best Online Service Experience with the Best Interest Rate

Ally Bank is a bank founded with the digital age in mind. The banking app works with Apple, Android, and Windows devices. It offers a 24/7 support line, plus a smartphone chat support feature.

Setting up an account is pretty easy, and you can make transfers between Ally and your bank. Depositing checks is a simple task with the mobile deposit feature. It’s even teamed up with Zelle to make sending money to your friends and family a lot smoother.

As far as online savings goes, it’s one of the best. There’s no minimum deposit, no monthly fee, and boasts a 1.60% APY. Plus the FDIC insures any deposits you make up to the maximum the law allows.

  • No minimum deposit or monthly fee
  • 1.60% APY
  • 24/7 customer support
  • Easy access to your accounts

Capital One 360- Meet Your Savings Goals With a Trusted Bank

Capital One has been around for a while, and they’re still one of the most trusted banks in the business. They offer checking, savings, CDs, and even home loans. Their accounts are all insured by the FDIC, so your money is safe with them.

But the cool thing about their savings accounts is the “My Savings Goals” feature. The feature allows you to set a target, like $1000 for vacation or $600 for Christmas gifts. You’ll tell them how much you want to put aside for each paycheck, then they’ll show you how long it will take to reach that goal.

Set up an automatic transfer, and each deposit will earn 1.0% APY. If you reach the point where you’re making upwards of $10,000, the APY bumps up to 1.6%.

  • 1-1.6% APY
  • No monthly fees or minimums
  • 24/7 customer service
  • Reach savings goals with the “My Savings Goals” feature

Capital One also has multiple attractive credit card offers, like the Spark Card that can help you build points and improve your credit score along the way.

Chase Bank- Competitive Interest Rates with Great Sign Up Bonuses

Chase Bank has over 16,000 ATMs and 5,100 branches nationwide. This means that for those of you who love brick and mortar buildings, Chase is your bank.

Chase online savings accounts don’t have the same competitive APYs as some of the other banks. They only offer a 0.01% APY as of March 2018. However, the bank gives you overdraft protection for your accounts, plus real-time fraud monitoring to protect your investments.

They also have a great sign up bonuses. There’s $200 for opening a checking account and setting up direct deposit. They also give you $150 for opening up a savings account with them and depositing $10,000 within 10 days. That’s $350 in bonus cash.

You can read more about our review of Chase Bank products here.

  • 0.01% APY
  • Overdraft Protection
  • Sign Up Bonuses
  • Access to 16,000 ATMS and 5,100 branches

CIT Bank- High Yield Savings for High Balances

CIT Bank is the best online bank for business and individuals that earn big. The minimum deposit for a CIT Bank savings account is $100, but the APY is an impressive 1.55%. There are no fees or daily balance minimums. You can make deposits and withdrawals from your phone.

CIT Bank also gives it’s customers a bonus interest rate if they save more than $25,000 with them. This is their way of rewarding heavy investors and long-term customers.

  • 1.55% APY
  • $100 minimum deposit
  • No fees or minimums
  • Bonus interest rates after $25,000

Synchrony OptimizerPlus- High-Interest Savings Account with an ATM Card

Synchrony offers a 1.65% APY for their online savings accounts, plus an ATM card so you can access those savings whenever you need to. You don’t need to have a minimum deposit, and there are no monthly fees.

All their accounts are also FDIC insured, and they have free Identity Theft Resolution programs.

Beyond those basics, Synchrony OptimizerPlus offers a great customer service experience. They also have ATM fee reimbursements and give discounts on hotels and car rentals. If you’re a business person who travels often, Synchrony is a good choice for you.

  • 1.65% APY
  • FDIC Insured and free Identity Theft services
  • Discounts on hotels and car rentals
  • ATM card for ease of access

Barclays- The International Online Savings Account with No Monthly Fee

Although Barclays is a newcomer on the US market, they’re actually a British bank with over 400 years of experience. The APY is 1.50%, which is on the higher end of our list. Pus there’s no monthly fee or minimum balance.

If you do a lot of business in the UK as well as the US, Barclays is an excellent choice for you. Customer service is available by phone, so you can actually talk to a person if you’re experiencing a problem.

Their mobile app is ready for both UK and US users on Apple and Android devices. It features mobile check deposits, external account linking, and online transfers.

  • 1.50% APY
  • No monthly fees, no minimums
  • Based in the UK with service in the US
  • Perfect for international business and online savings accounts
  • Customer service by phone rather than online chatting.

USAA Banking- Best for Military and Military Families

If you or a family member has served in the United States Armed Forces, you might have heard of USAA. This online banking service offers checking, savings, loans, and different kinds of insurance.

The savings accounts offer 0.05% APY for balances under $1,000, and it goes up as you save more money. You need a $25 deposit to get started, but after that, there are no monthly fees or minimums.

With USAA you can use any ATM in the world, and they will reimburse you for the fees. Their customer support is 24/7, and representatives are available by phone or online.

  • 0.05% APY with bonuses
  • $25 initial deposit
  • No monthly fees or minimums.
  • Available only to members of the US Armed Forces and their family members.

Want to Learn More about Savings and Personal Finance?

At Bonsai Finance, we give you advice so that you can have the best financial services. We don’t just give advice about the best high yield accounts online. We also help you work out loans and credit cards so that you can be in great financial shape. Our online services can help you find a bad credit loan or no credit check loan and ensure you’re getting the best rates possible

For more tips on personal finance, loans, and credit cards, visit our learning center.