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.
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
|
Do you already have an account with any of these banks?
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.
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More Articles on the Benefits of High-Yield Savings Accounts
- Where To Find The Best Savings Account Rates (The Answer May Surprise You) - Forbes
Finding the highest interest rates on FDIC-insured savings accounts can be a chore. Here are four options, some of which may surprise you. - Savings accounts with the highest yields - Oct. 1, 2013
Savings account yields are low, but some are higher than others. Here's how to find the best accounts out there. - MMA and Savings Rates by Bankrate.com
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