Since Covid-19 has negatively affected many people’s financial situations, it is difficult for most of us to plan for a trip this year. Thanks to the high yield saving account bonus. It will boost your savings from a few dollars to several hundred dollars. With that amount, you can surely have a small weekend getaway.
Creating a high yield savings account will reward you for saving money with them. For example, if you open a conventional account with a $1000 amount and 0.01 percent interest rate, you will receive $10 per month. The monthly interest rate might seem less, but it will make a huge difference when you collect it altogether at the end of the year. So, let’s start with the basics of a high yield savings account.
Customer ratings
- Alliant Credit Union – 4.5 Star Customer Rating
- Comenity Direct – 4.5 Star Customer Rating
- Cit Bank – 4.5 Star Customer Rating
Table of Contents
What is a High Yield Savings Account?
A high yield savings account is a Federal Deposit Insurance Corporation (FDIC) protected account that maximizes your savings. If you are thinking about what makes it different from a regular savings account, It is the high interest rates that distinguish it from other savings accounts. And the underlying reason for paying higher interest rates is the large sums of money that you deposit as an initial amount. The banks reward you for keeping your precious savings with them. However, you will have limited access to your savings. This means you cannot withdraw money whenever you want.
Now, Let’s head to some ways to save money via these savings accounts.
3 – Zero risk saving hacks
Well, the following saving hacks are for everyone because who doesn’t want to have safe bets when it comes to savings?
High Yield Savings Account
Here’s how you can earn maximum interest through a high yield savings account bonus. By following the guidelines mentioned below, you can for sure save enough money to take your girlfriend out of the city for a lavish weekend.
Saving hack:
Since most offline bank accounts do not offer significant interest rates, opening online savings accounts is always a good option. To get an interest rate of more than 1%, you have to make an initial deposit of a minimum of $100 in the initial year.
For example, bankrate.com and depositaccount.com are currently offering higher interest rates. You can consider other financial institutions as well. But make sure they are FDIC insured.
Certificate of deposit
It is another way of saving money with a bank. In this method, the institution issues a written document with a fixed interest rate and a time. Before that period, if you withdraw your cash, you will have to pay the penalty for that.
Saving hack:
Ally bank offers a certificate of deposit with an interest rate of 1.75 percent on the deposit of $25,000. Under their contract, they will bound you for five years to pull out your money. But here’s a catch, if you want your money back, you can pull it out after a year and pay a penalty of five months. Still, you will earn an interest rate of 1.02% after paying the penalty. On the contrary, if you don’t need your money urgently. Then keep it in there and reap the interest rates for five years.
For example, Bankrate and Deposit Accounts are currently offering high-interest rates. If you want to check other institutions, make sure they are government-supported.
Money market deposit accounts
A Money Market deposit account is another kind of savings account that allows you to earn interest on your savings. Similar to high yield savings accounts, different banks and credit unions offer to open this account. It has a pre-set initial deposit amount accompanied by a limited number of withdrawals.
Saving hack:
Maintain the minimum balance requirement to keep the interest rate high; however, if you withdraw more than the pre-set numbers allowed. Your interest rate will get lower.
For example, Sallie Mae Bank offers a 0.40 percent interest rate on an initial deposit of $0. TIAA also offers the same interest rate but on an initial deposit of $500.
3 – Banks with high yield savings account bonus
Below we have compiled the top five financial institutions offering the highest interest rates on opening savings accounts with them.
Alliant Credit Union
Interest rate – 0.55 percent APY
Minimum deposit – $100
Alliant Credit Union is the pioneer financial institution operating since 1935. It is one of the market leaders in paying high interest rates. You need just $5 to keep your savings account open and at least $100 an average daily balance to get an APY of 0.55 percent. Moreover, you can escape monthly maintenance payments by unsubscribing to online statements.
Click here to open the account.
Comenity Direct
Interest rate – 0.55 APY
Minimum deposit – $100
If you are looking for variation, then go for Comenity Direct. It offers both a high-interest rate savings account and a certificate of deposit. With just $100 on hand, you can open a savings account with them. Though, you will be charged a $15 fee for official checks and $5 for hardcopy statements.
Click here to open the account.
CIT Bank
Interest rate – 0.50 APY
Minimum deposit – $0
Cit bank is popular among people because of its high interest rates and user-friendly platform. By just signing up, you can open your savings account with them. Cit Banks Saving Connect is a mixture of savings and checking accounts. If you successfully maintain the minimum balance of $200/month. You can enjoy 0.50 percent interest. Even if you are not consistent with your monthly deposits, you can still earn an interest rate of 0.4%.
Click here to open the account.
Bottom line
There are other options out there to save your money. However, they are not as efficient as these high-yield savings accounts. Moreover, most other savings accounts do not provide FDIC protection. Hence, your savings will always be at risk. So, if you wish to maximize your savings, review your monthly budget to align your savings plans with your monthly spending. If you successfully maintain your monthly balance, you will for sure be entitled to a fixed monthly interest rate.