Get More than 0.50% Interest with Popular Savings Accounts

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Get 0.50% Interest or More with Popular Savings Accounts

Everyone should have at least one saving account. Unfortunately in multiple reports, CNN warns of the dangerous lack of consumer savings running rampant within the United States. “About 49% of Americans don't even have enough money saved to cover three months of expenses -- slightly worse than the 46% of Americans who reported having less than three months worth of savings last year. And 28% don't have any cushion whatsoever -- up from 24% last year, according to the report, which was based on a survey of 1,000 adults.”1 If you are not saving up money for every day expenses, then you should definitely save for future events and costs (i.e. marriage, children, cars, home, retirement, etc.). Are you saving for tomorrow?

Types of Savings Accounts

While consumer savings for retirement also dipped to lower levels across the country, most people do try save for retirement in separate types of saving accounts called Traditional Individual Retirement Accounts (Traditional IRAs) or ROTH IRAs. These accounts consist of special Federal regulations where any capital appreciation is not taxable. However, withdrawal from these accounts pre-retirement are heavily penalized with fees. 401Ks are other types of retirement saving accounts offered by employers, where the employee’s contribution to the account can be matched by an employer contribution. 401Ks are used as employment benefits or incentives for workers.

Banks and other financial entities tend to offer the best interest rates (or annual percent yields) on regular savings accounts. Banks also offer other types of saving accounts called Certificate of Deposits (CDs) and Time Deposits (TDs). CDs and TDs are types of saving accounts with designated maturity dates, indicating when the savings account will end in duration. Customers with funds in CDs and TDs must then redeem their total savings deposit plus any interest appreciation on the accounts at maturity.

Exponentially increase your savings with high-yield savings accounts
Exponentially increase your savings with high-yield savings accounts

Traditional Savings Accounts

Traditional savings accounts have been around for centuries. They are the most common type of bank account, since these are used to simply retain (and appreciate on) cash deposits. Banks offer interests on savings accounts to customers for the purpose of capitalizing on the funds retained within the accounts through investments. The bank’s interest yield or APY (annual percent yield) to the customer is usually much lower than its rate of appreciation on the funds held within the account. For example, if the bank generates or receives 3.00% interest on your $100,000 deposit through its business investment strategies, the bank will then offer you (the customer) 0.60% interest on your $100,000 deposit. This method is used by banks to generate profit. While traditional brick-and-mortar (or physical) banks offer low-yielding savings accounts, online banks offer savings accounts that are of high demand. These types of high-yield, popular savings accounts should be of great interest to you.

Tampa Bay Times indicated that, “Savings accounts at big banks, such as Bank of America or Wells Fargo, generally don't offer enough of a yield to meaningfully grow your balance. But you'll likely find offers of more attractive yields at online banks like Ally Bank and EverBank. These Internet banks have few or no branches, so they don't have the expenses of brick-and-mortar lenders. But some require minimum balances, especially for their high-yield accounts. And you'll have to be okay with only being able to access your cash via ATMs or by setting up wire transfers.”2 While the savings accounts offered by these FDIC-insured online banks are much higher (due to the bank’s minimal overhead costs), access to your funds at these banks can be difficult. Nonetheless, with the high-yield interest rates offered by many of these popular virtual banks, anyone will appreciate the opportunity to make same extra cash through high interest appreciation over time.

High-Yield Savings Accounts

While there are several different types of saving accounts offered by banks in the US and around the world, here you will find out which popular banks and financial entities offer almost 1.00% on traditional savings accounts. To find out if any changes to these rates have occurred in the future, simply visit www.bankrate.com for the most up-to-date information on interest rates on the savings accounts by any bank.

High-Yield Saving Accounts by Banks

Bank
High-Yield Interest (APY)
Minimum Balance Required
Website
Last Updated
Ally
0.87%
$0
www.ally.com
8/27/2014
American Express
0.80%
$1.00
www.amex.com
8/27/2014
Barclays
0.90%
$0
www.barclays.com
8/27/2014
Capital One
0.75%
$0
www.capitalone.com
8/27/2014
CIT
0.95%
$25,000.00
www.cit.com
8/27/2014
Discover
0.85%
$500.00
www.discover.com
8/27/2014
Emigrant
0.50%
$0
www.emigrant.com
8/27/2014
First Trade Union
0.85%
$2,500.00
www.ftub.com
8/27/2014
GE Capital
0.95%
$0
www.gecapitalbank.com
8/27/2014
Sallie Mae
0.80%
$0
www.salliemae.com
8/27/2014
Synchrony
0.95%
$0
www.myoptimizerplus.com
8/27/2014
TD Bank
0.50%
$50,000.00
www.tdbank.com
8/27/2014
TIAA-CREF
0.79%
$25.00
www.tiaadirect.com
8/27/2014
* Note that all interest rates stated are subject to change in the future by the bank.

Do you already have an account with any of these banks?

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These are some of the major financiers that offer more than 0.50% in interest on traditional savings accounts. If you are shopping for high-yield interest rates on saving accounts, then consider any of these institutions. While you can obtain higher-than-the-national-average interest rates on these accounts, consider CDs and TDs for even higher interest rates. For more information regarding any of these financial products, feel free to stop into your local branch of these financial institutions.


Check out my other financial hubs: http://missinfo.hubpages.com

Your savings will grow over time.
Your savings will grow over time.

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Comments 7 comments

Barbara Kay profile image

Barbara Kay 2 years ago from USA

I didn't know about this. I've never used online accounts. Thanks for the info.


Miss Info profile image

Miss Info 2 years ago from New York City Author

Thanks Barbara Kay!

Online or Internet banks retain minimal expenses. Therefore, their profit margins are much larger. They are able to provide consumers with interest rates that are substantially above the national average.


RefundSweepers 2 years ago

Excellent article.


Miss Info profile image

Miss Info 2 years ago from New York City Author

Thank you RefundSweepers! I appreciate the comment.


kenneth avery profile image

kenneth avery 2 years ago from Hamilton, Alabama

Miss Info,

Great piece of writing. Informative and helpful.

Keep up the great work for you are a very talented writer.


kenneth avery profile image

kenneth avery 2 years ago from Hamilton, Alabama

@ Miss Info, your profile page does not have a Send Fan Mail slot, so I am going to leave my personal note of thanks here. Thank you.

Dear Miss Info,

I wanted to send you my Personal Note of Heartfelt Thanks for becoming one of my followers. This gesture means so much to me. I just hope in some way, I can pay you back someday, and that you will not regret following me.

Always feel free to write me about anything you want with total-confidence. I am always up for new ideas in hub-writing, healthy criticism, and good input on how I can make my hubs better.

I

just want you to know that I love your work and encourage you to use your gift of writing as much as you can and you will touch a lot of lives.

Thank you again for being in my world.

If I can ever be of help to you, just email me and I will do what I can to help you as much as I can.

Sincerely,

Your Friend for Life,

Kenneth


Zdzisza 23 months ago

There are Bank of America branches up in Quebec. However, the name may be the same but they could be a cotelpmely different entity from Bank of America in the states.Bank of Montreal is the popular choice here. They have branches all over the place in Quebec. Another bank is Toronto Dominion Bank. But if I was moving to Quebec, I would choose Bank of Montreal. Check with BOM to see if they can set up ACH transfers for you. Bank of Montreal must have the Billpay feature. Which if you are set up with them, you can just pay by cheque over internet banking. Also, wire transfers is an option but can be expensive if you are sending on a regular basis.

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