The average interest rate on a savings account is a measly 0.09 percent. If you want to see your savings grow faster, online banks can be a great choice. Since their overhead costs are lower, many of these banks can offer customers higher interest rates, including some in excess of 2 percent. If you aren’t sure where to go to get a great rate, here are a few online banks worth checking out.
CIT Bank
CIT Bank’s Savings Builder Account comes gives you the ability to earn up to 2.30 percent APY. If you want to earn the highest rate, you either need a balance at or above $25,000 or make a $100+ deposit each month. You get daily compound interest to up your earning potential and don’t have to deal with any maintenance fees along the way.
Betterment
Betterment, the robo-advisor, has hopped into the world of high-yield savings accounts with its Betterment Everyday option. Along with a great rate of up to 2.69 percent APY, you won’t have to deal with any fees. Plus, there are no minimum balance requirements, ensuring even a smaller account can start earning solid interest.
UFB Direct
With a UFB High Yield Savings account, you can earn up to 2.25 percent APY. There are no minimum deposit requirements or maintenance and services fees. In order to land that rate, you do need at least $10,000 in the account. Otherwise, you won’t earn any interest.
Marcus by Goldman Sachs
The high-yield online savings account through Marcus by Goldman Sachs gives you a chance to earn up to 2.15 percent APY. There is no minimum balance requirement for the account and no transaction or monthly maintenance fees. If you want to make a little more on your money, you can also explore their CD options.
SoFi
From a company that initially focused on student loan refinancing options, SoFi’s Money is a strong online savings account option with an up to 2.00 percent APY. This option is also fee-free and, for added convenience, you won’t have to deal with any ATM withdrawal fees either at any ATM that accepts Visa. If you get charged a fee, SoFi will reimburse you automatically.
Ally Bank
One of the most recognized names in online-only banking, Ally’s savings accounts can earn up to 2.10 percent APY. Like many of the others on this list, there are no minimum balance requirements or monthly maintenance fees. The account also has daily compounding interest, helping your money grow even faster. Plus, Ally is known for exceptional customer support, which is great if you have any questions or want a hand opening an account.
CIBC
CIBC originated in Canada but is now available in the US. The Agility online savings account can earn up to 2.39 percent APY, making it incredibly competitive. There are also no maintenance fees, so you won’t lose any of your cash along the way. You do have to deposit at least $1,000 to get started, but that’s about the closest thing to a drawback you’ll find here.
All of the high-interest online savings account above are worth exploring if you want to earn more with your money. Consider checking out the above online banks and see which one might work for you.
Do you use an online bank because of the higher interest rates? Share your thoughts in the comments below.
Read More:
- Protecting Your Money: Is Online Banking Safe?
- How Should You Go About Finding the Right Bank?
- 5 Ways to Protect Your Money Online
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Tamila McDonald is a U.S. Army veteran with 20 years of service, including five years as a military financial advisor. After retiring from the Army, she spent eight years as an AFCPE-certified personal financial advisor for wounded warriors and their families. Now she writes about personal finance and benefits programs for numerous financial websites.
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