The post Best High Yield Savings Accounts by Melissa Brock appeared first on Benzinga. Visit Benzinga to get more great content like this.

Higher interest? Lower fees? Easy access? Powerful mobile apps? What’s not to like about a high yield online savings account? You don’t need to visit a brick and mortar bank when you can do it all online or through the mobile app. With easier access will come better financial decisions and more financial freedom, especially when you stick to a savings plan that allows you to fill the account from week to week or month to month (even year to year.)

All you need to do is choose a savings bank that works for you. Because they’re all so different, you have the world at your fingertips. Plus, you may want to save with the bank you already use (it’s easier because you already have their ATM card,) you may choose to save with a bank that offers specific rewards you want or you could try a savings bank with the highest rate to see how it works out for you. At the same time, you may want to carefully review what these banks offer, if their percentage yields change often, etc. Keep watch with Benzinga to access the best savings account options.

Best High Yield Savings Accounts

Take a look at some of the best online savings accounts with high yield. Remember, the annual percentage yield can change at any time, and checking Benzinga’s charts helps you make the most of this decision. You may want to hold more than 1 savings account, or you might push all your uninvested funds to one of these accounts until you make your next investing decision.

• CIT Bank – 4.85% APY – Open Account Now
• UFB Direct – 4.81% APY – Open Account Now
• Bask Bank – 4.75% APY – Open Account Now
• CIBC – 4.52% APY – Open Account Now
• Citizens Bank – 4.50% APY – Open Account Now
• Quontic Bank – 4.25% APY – Open Account Now
• SoFi – 4.20% APY – Open Account Now
• Marcus by Goldman Sachs – 4.15% APY – Open Account Now
• Synchrony – 4.15% APY – Open Account Now
• Current – 4.00% APY – Open Account Now
• Live Oak Bank – 4.00% APY – Open Account No
• E*TRADE – 3.85% APY – Open Account Now
• Albert- 0.35% APY – Open Account Now

1. Bask Bank

With one of the highest APYs you’ll find on the market, Bask Bank allows you to earn interest or even compile AAdvantage miles for every dollar you save that will go toward your next trip. Bask Bank savings accounts allow you to:

• Earn many times the national average savings rate
• Earn American Airlines miles
• Get friendly customer service
• Never pay account fees
• Take advantage of various account promotions

Designed for the traveler with a need to save money, imagine how much more easily you can plan a trip when Bask allows you to earn more than compound daily interest.

2. Quontic Bank

When you use Quontic Bank to save money, you can choose from high yield savings accounts, money market accounts, or certificates of deposit. Accounts are easy to open—only taking just a few minutes online. Plus, Quontic Bank is backed by the FDIC, you only need a $100 minimum deposit.

With no monthly maintenance fees, you keep more money in your pocket. You might pay penalties for early withdrawals on your CD, but the all-digital banking options from Quontic give you an idea of the “big picture” of your finances 24/7.

3. Current

Current is unique in that it allows you to use savings pods to reach your goals. Those with Basic, Premium and Teen accounts can set savings goals for any occasion. 

There’s just one savings pod for Basic accounts, 3 pods for Premium accounts and Teen accounts come with one savings pod and one giving pod. Assign a purpose to each pod, plan for the future and make adjustments as needed.

The automated savings feature on the Current app ensures that you are saving on schedule, never forgetting that you are growing more than one account at the same time. Enter the app, turn on round-ups for your purchases and fill your savings pods automatically. 

4. Albert

Albert pitches itself as a home for your money, and what a home it can be. Download the app, setup your account and start saving with advanced technology and profitable interest rates.

Albert allows you to save your money, set goals and earn bonuses. Set your goals so that you can save for a specific purchase. Look for bonuses that can add to your savings, improving upon your initial savings rate.

Albert also sets aside money every week, automatically adding to your savings account. You can transfer money out of your account at any time, and you can also set up a traditional bank account and invest using the Albert app.

You should also check our Albert’s promotions to see what deals you can get, bonuses you might enjoy and other options that add to your savings goals.

5. SoFi

SoFi is one of the most popular online banks in the world, marketing itself as a place where you can handle everything from refinancing a loan to building your credit, investing and more.

When you open an account with SoFi, you enjoy several benefits, including:

• No account fees
• Higher than average APY
• Get paid early
• Cash back at local establishments
• Overdraft coverage
• Organize your money and set savings goals

Saving with SoFi is easier than most because you don’t have a minimum balance to meet and you get a higher than normal APY.

There are no account fees, you can get paid early, there’s overdraft protection and you can also earn cash back on qualifying purchases. Using these accounts alos allows you to establish a relationship with the bank and try many of their other services like loans, credit cards, investing and more.

6. Synchrony

With Synchrony, you get no minimums, no minimum balance to keep up and high APY savings rates. There are no monthly fees, and the Synchrony website even tells you how much you could save with the money you plan to deposit into the account.

Most importantly, savings rates are consistent no matter how much you deposit in your account. Now, you can earn higher interest even though you might not have the highest balance.

7. CIBC

U.S. savings accounts from CIBC earn interest in tiers. You can choose a savings account or money market account, make a deposit and start saving today.

Check out the Savings account for:

• Tiers that include $0.01 to $9,999.99, $10,000 to $24,999.99, $25,000 to $49,999.99 and $50,000 or more
• Daily compounded interest that’s credited every quarter

The Money Market account offers:

• $50 minimum deposit
• Compound interest
• Tiers that include: $0.01 to $2,499.99, $2,500 to $49,999.99, $50,000 to $99,999.99 and $100,000 or more

8. CIT Bank

With Savings Connect from CIT Bank, you get one of the highest APYs on the market, ensuring that your money does more for you when it sits in the account. There’s a minimum deposit of only $100, or you can try other options like the:

• Money Market: There’s only a minimum deposit of $100 and the APY is well above the national average. There are no account opening or maintenance fees, you can deposit checks online and daily compounding interest makes your savings journey that much more fruitful.
• Savings Builder: You start with a moderate APY and have chances to increase your savings, depending on how you manage your funds, including making deposits every month that help you reach your overall savings goals.

9. Live Oak Bank

Live Oak Bank is one of the more versatile banks on the market today. The Personal Savings Account is an easy way for you to make the most of your savings, earn a relatively high APY and never pay maintenance fees. Other options include:

• FDIC backing
• Easy-to-use mobile app
• No fees, ever

Plus, you can use the savings calculator on the Live Oak Bank website to learn how much you could save for the future, allowing you to make wise decisions as you continue to fund the account. Joint accounts are also available.

10. Citizens Bank

Citizens has 3 different types of savings account that you can choose based on your situation and the money you need to save for the future. You can choose from the:

• One Deposit Savings—works with student accounts
• Citizens Quest Saving—allows for ATM use with no fee
• Citizens Wealth Savings—matches your Wealth Checking account

Citizens allows you to personalize your banking experience, and you can visit local branches where they are available. There are no minimum balances and no maintenance fees, ensuring that you can save even more money in the future. If you need more information on saving money, check out the Citizens website, or you can reach out to the customer service team to learn which account is best for your situation.

What’s a High Yield Savings Account?

Again, an online savings account is a savings account that only exists online, but it still offers a deposit account and the mobile banking services you would expect from a traditional bank. Typically high-yield, online savings accounts make a savings account APY more appealing. The difference can be vast (think 0.5% APY for a traditional brick-and-mortar savings account vs. 1% APY or more for certain online savings accounts).

In a nutshell, online banks can charge fewer fees, require no minimum balance and offer excellent rates because they don’t have the overhead related to wages, maintenance and real estate costs like the traditional brick-and-mortar bank variety. At the same time, these banks are not necessarily as convenient as their counterparts that have a location around the corner from you.

Online Banks vs. Brick-and-Mortar Institutions

Online-only banks, just like the name implies, do not have any brick-and-mortar locations and only exist online. However, they tend to be more innovative, allowing you to get more services than you might have gotten from the brick-and-mortar establishment around the corner. Make sure you have access to the services you need. Check for the perks you want. Don’t settle for a bank that doesn’t mix perfectly with your needs.

They’ve truly created great competition for regular banks. This also means that you will find a mixture of high yield savings accounts and CDs that institutions will offer to gain your business. Here, we’re only dealing with basic savings accounts that give you easy access to your money. This means that you can do something with that money, where investing in other avenues may decrease your access to these funds. However, putting money away is still a good idea.

You simply need to decide what your preferred method will be and how you want to fund the account. Some people push all their money to savings, while others allocate funds to different forms of investment, savings, bonds, stocks, ETFs, etc. You can learn more about asset allocation here.

Why Do I Need a High Yield Savings Account?

Building up a savings account is a great way to develop a healthy mentality about money. There’s something very satisfying about watching small deposits in a savings account grow over time, and some banks even encourage goal-setting through mobile apps and online banking.

Here are a few down-the-road options for your savings:

• Save for your child’s college education.
• Save for a down payment on a house.
• Save for an item you’ve always wanted.
• Emergency fund savings (between three to six months of savings is recommended).
• To save money securely outside of a traditional bank.
• Helping kids set up their first savings accounts.
• Stashing money for special purchases.

Pros and Cons of an High Yield Savings Account

The high yield savings account pros and cons may seem sort of obvious, but it’s always best to read the fine print in any situation. (For example, traditionally, the fees are lower or nonexistent for online savings accounts, but it’s definitely a good idea to be 100% sure.)

Pros:

• You earn passive income
• They offer higher rates
• They charge lower fees
• New technology allows for some great banking options on your device
• ATM networks are extensive

Cons:

• You have to pay a fee for ATM access in some cases with affiliated brick-and-mortar banks
• Depositing funds may actually be more cumbersome than depositing at a traditional bank.
• Customer service is not readily available.
• Sometimes account APY is an introductory rate (again, read the fine print).
• It’s possible for online banks to fail or not be FDIC-insured. Do your homework.
• Restrictive balance requirements

How High Yield Savings Accounts Work

Once you’ve officially decided on a bank, you’ll be required to fill out an application. The application will ask you to give your address, personal and work phone numbers, date of birth and Social Security number or Tax Identification Number. You’ll also need to create a security question and password.

You’ll be able to link your online savings account with your online or traditional checking account. In fact, to start the account, an opening deposit must come from your checking account. If you’re applying the old-fashioned way (on paper) you can include a check with your paper application.

Then, from there, you can deposit money into your account and review your holdings for each statement cycle. The part that you don’t see is that the bank will then lend your money out in personal and business loans to other individuals. (The bank ultimately pays you interest when it lends out your money.)

Easily Earn Passive Income with High Yield Savings Accounts

Ultimately, the question “Is an online savings account best for me?” is a personal decision. Your account balance is not the issue—the issue is how much you can earn on that balance.

One item to consider: While high APY can be tough to ignore, there may be some other serious factors when considering which online savings account will work best for you. Depending on the customer, it could also be important to consider online/mobile experiences, mobile and online alerts and other perks or rewards you can receive.

Remember, too, that deposit products are subject to FDIC deposit insurance that protects your holdings up to $250,000 per named depositor.

Frequently Asked Questions

The post Best High Yield Savings Accounts by Melissa Brock appeared first on Benzinga. Visit Benzinga to get more great content like this.