We recently shared a post on a popular investing app, along with why to use caution with it. Another great way to invest has arisen that is safe while offering a decent rate of return: the online savings account. It’s never been easier to get one. Below, we will discuss if you need an online savings account, as well as which ones can earn you hundreds of extra dollars per year.
1. Why an Online Savings Account?
Traditional banks need extra funds to keep the brick and mortar operations going. They usually do so via an annual fee, hidden fees, etc. The same can go for credit unions, although they do tend to offer better deals than traditional banks. Online banks don’t come with the expense of maintaining branches, which allows them to offer higher interest rates paying up to and over of 2% APY. The rate is multiple times higher than 0.09% national average. It may not sound like a big difference, but this rate can add up with compound interest.
2. Best Online Savings Account with Low Minimum to Open
PNC Bank – They offer a whopping 2.35% APR with only a $1 opening investment. Other benefits include:
- Minimum balance – $0
- Charge for paper or online statements – $0
- Monthly service charge – $0
- FDIC Member
- Mobile App
However, the account does not allow check writing.
3. Best Online Savings Account with Best Stability
Ally – The bank continues to be a leader year after year for online banking choices. They continue to offer a 2% APR with no monthly maintenance fees or minimum balance requirements. Other benefits include:
- Standard or expedited ACH transfers – $0
- Online statements – $0
- Domestic or international incoming wires – $0
- Cashier’s/official checks – $0
- Postage paid deposit envelopes
However, you are only allowed six transactions per cycle. They charge $10 for each extra transaction.
3. Best Online Savings Account with Best Health Rating
Marcus by Goldman Sachs – They currently enjoy an A+ health rating from Lending Tree for High Yield Online Savings Account with an interest rate of 2.05%. Other benefits include:
- Minimum balance – $1
- Monthly service fees – $0
- 4 out of 5 stars from Nerd Wallet which takes into account APR, fees, digital experience, and more.
However, the account does not allow check writing or ATM network.
BONUS: More Online Savings Accounts
Need to do your own research? Stop by this section of Lending Tree to get current APRs, ratings, as well as much more to find an online savings account that is right for you. Remember the higher APR can add up to hundreds of dollars a year in extra interest compared to the national average with traditional banks.
More Houston Bookkeeping
Remember that these rates are as of today November 29, 2018 and are subject to change. Give us a call if your business or family needs bookkeeping help.