Best High Yield Savings Accounts for March 2024
BANKING – SAVINGS & MONEY MARKET ACCOUNTS
High-yield savings accounts help you earn more with low risk. They offer higher interest rates than regular savings accounts, making your money grow faster.
| Traditional bank with 0.47% APY | High-yield savings account with 4.00% APY | Difference in savings | |
| Initial balance | $50,000 | $50,000 | $0 |
| One year balance | $50,236 | $52,040 | $1,804 |
| Five year balance | $51,189 | $61,069 | $9,880 |
Benefits:
- Very high 5.32% APY available from Rasin’s savings marketplace.
- $1 minimum to open with some options and no fees.
- 24/7 online access to funds with their mobile app.
- Raisin gives back to their communities with educational grants and scholarships
- FDIC insured.
Benefits:
- Very high 5.21% APY on account balances of $1,000 or more.
- No monthly account fees.
- Great mobile app which provides you 24/7 mobile access to your account.
- Member FDIC through Cross River Bank, insured up to $250,000.
SoFi - Up to 4.6% APY
Benefits:
- Earn up to 4.6% APY & up to a $300 bonus when you open a new savings account (depending on your direct deposit amount).
- No minimum balances or monthly account fees.
- Automatic roundups on all debit card purchases which are then put back into your savings.
- Additional FDIC insurance up to $2M available through a network of participating banks.
Fifth Third Bank - Grow Your Balance With a Money Market Account
Benefits:
- Fifth Third Bank can create a money market account which generates interest compounded daily and paid monthly.
- $5 monthly fee (unless you maintain a balance of $500 or more).
- Access the funds in your money market account at any time (may be limits on how many withdrawals you can make in a single statement period).
- FDIC insured.
How to Pick the Right Savings Account For You
Choosing the right savings account is a crucial decision that can impact your financial health and savings growth over time. With numerous options available, including high-yield savings accounts, it’s essential to consider several factors to ensure you pick the account that best suits your needs. Here’s a guide on how to pick the right savings account for you:
Assess Your Financial Goals: Begin by understanding your savings goals. Are you saving for an emergency fund, a large purchase, or just looking to earn interest on idle cash? Your goal will influence the type of account you choose.
Compare Interest Rates: One of the most significant factors in choosing a savings account is the interest rate. Look for accounts with the highest annual percentage yield (APY) to maximize your earnings. However, ensure you understand the terms, as some high rates may be promotional and subject to change.
Review Account Fees: Avoid letting fees eat into your savings. Look for accounts with low or no monthly maintenance fees, no minimum balance fees, and reasonable fees for additional services like wire transfers or excessive transactions.
Consider Accessibility: Think about how often you’ll need to access your funds. If you anticipate frequent withdrawals, consider an account with easy access via ATM, online banking, and mobile apps. However, if you’re saving long-term, limited access might help you avoid unnecessary withdrawals.
Evaluate the Compounding Frequency: The frequency with which interest is compounded (daily, monthly, quarterly) can affect your savings growth. Generally, more frequent compounding is better, as it allows your interest to earn interest more often.
Security: Ensure that the bank is FDIC-insured (or NCUA-insured for credit unions), which means your deposits are protected up to $250,000 per depositor, per insured bank, for each account ownership category.
FAQs
High-yield savings accounts typically come from online banks, which have lower operational costs than traditional brick-and-mortar banks. These savings allow them to offer higher interest rates to their customers.
Yes, high-yield savings accounts are safe as long as they are offered by banks insured by the FDIC or credit unions insured by the NCUA. This insurance protects your deposits up to $250,000 per depositor, per insured bank, for each account ownership category.
Yes, the interest rates on high-yield savings accounts are variable and can change over time due to market conditions and the bank’s discretion. It’s important to monitor your account and stay informed about any rate changes.
Generally, there is no limit to how much money you can deposit into a high-yield savings account, but some banks may set limits on the maximum balance eligible for the advertised APY. Check with your bank for specific terms.
Yes, you can generally withdraw money from your high-yield savings account at any time, but be aware of any transaction limits. Federal Regulation D limits certain types of withdrawals and transfers out of savings accounts to six per month, although this rule may be subject to change or enforcement discretion.
Benefits:
- Very high 5.32% APY available from Rasin’s savings marketplace.
- $1 minimum to open with some options and no fees.
- 24/7 online access to funds with their mobile app.
- Raisin gives back to their communities with educational grants and scholarships
- FDIC insured.
Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved or otherwise endorsed by these entities.
