It can be somewhat of a disappointment when you take a look at the current yields on savings accounts. We all know that we need to save but there seems to be little reward for saving when it comes to interest rates. Is there somewhere to store our cash while still benefiting from interest earnings?
I took the liberty of researching current savings and money market interest rates and tried to find the best places to stash the cash. My research came up with the following institutions and their current savings account and money market rates:
- Synchrony High Yield Savings pays 1.05% APY with no minimum balance requirement or monthly service fee.
- Alostar Bank of Commerce Savings pays 1.05% APY with a $50 required minimum deposit to open the account. No average monthly balance required and no monthly service charge.
- Barclays Online Savings pays 1.00% APY with no monthly maintenance fees and no minimum balances to open.
- Ally Online Savings pays 1.00% APY with no monthly maintenance fees and a limit of six transactions per statement cycle.
- iGobanking.com Savings pays 1.00% APY with no fees and no minimums to maintain and no monthly maintenance charges
- CIT Bank High Yield Savings pays up to 0.95% with a minimum deposit of $100 to open and no maintenance fees. Interest is compounded daily.
- FNBO Direct online savings pays 0.95% APY with no monthly fees or minimum balance requirements. It takes $1 to open a savings account.
The research also found high yield Money Market Accounts to be:
- EBSBDirect pays 1.25% APY with a minimum $2,500 to open the account and a balance of $10,000 required for this rate.
- Dime money market account pays 1.10% APY for 12 months with a required $1,000 opening deposit. There are no monthly fees with up to 6 transactions per month this account.
- ableBanking money market account pays 1.00% APY with a $250 minimum deposit to open the account.
- Ally bank money market pays 0.85% APY with no monthly maintenance fees. Interest is compounded daily and no minimum opening balance is required.
I would suggest doing your own research to find the right institution for your savings. Compounded interest is best due to the fact that your interest will earn interest. Interest rates change so look for the best offer with the least restrictions.
Find the best rates that work for you and put that emergency fund and other savings to work earning compound interest. Before you know it you will begin to see that savings plan grow quickly by taking advantage of higher interest rates for your savings. Since you are going be saving money you should earn as much interest on it as possible. This is another step in the wealth building process that with a small amount of effort has the potential for a great reward!