[{"@context":"https:\/\/schema.org\/","@type":"Article","@id":"https:\/\/moneydoneright.com\/personal-finance\/saving-and-budgeting\/best-online-savings-accounts\/#Article","mainEntityOfPage":"https:\/\/moneydoneright.com\/personal-finance\/saving-and-budgeting\/best-online-savings-accounts\/","headline":"The Beginner\u2019s Guide to Finding a High Yielding Savings Account","name":"The Beginner\u2019s Guide to Finding a High Yielding Savings Account","description":"When looking for the easiest way to deposit and withdraw money all while making...","datePublished":"2019-03-18","dateModified":"2023-04-18","author":{"@type":"Person","@id":"https:\/\/moneydoneright.com\/author\/logan-allec\/#Person","name":"Logan Allec, CPA","url":"https:\/\/moneydoneright.com\/author\/logan-allec\/","identifier":4,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/6e74dd0453a5871d1dcfde6d40d9494765ca8bfdb01927cefee4564d4bee9075?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/6e74dd0453a5871d1dcfde6d40d9494765ca8bfdb01927cefee4564d4bee9075?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Money Done Right","logo":{"@type":"ImageObject","@id":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Money-Done-Right-Personal-Finance-and-Investing-Blog.png","url":"https:\/\/moneydoneright.com\/wp-content\/uploads\/Money-Done-Right-Personal-Finance-and-Investing-Blog.png","width":488,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/moneydoneright.com\/wp-content\/uploads\/2019\/03\/high-yielding-savings-account.jpg","url":"https:\/\/moneydoneright.com\/wp-content\/uploads\/2019\/03\/high-yielding-savings-account.jpg","height":667,"width":1000},"url":"https:\/\/moneydoneright.com\/personal-finance\/saving-and-budgeting\/best-online-savings-accounts\/","about":["Saving Money"],"wordCount":4477,"keywords":["schema"],"articleBody":"When looking for the easiest way to deposit and withdraw money all while making interest, the search for a high yielding savings account is more important than ever.While interest rates on almost all savings accounts are quite low, some banks and financial institutions have better ones than others.A few of these institutions might also have certain features that make them a favorable choice.\u00a0If you are looking for the best way to handle money with some decent interest rates should read our guide on how to do just that.First though, let\u2019s take an overview on what savings accounts actually are as well as their benefits and disadvantages.Table of ContentsToggleWhat Are the Advantages and Disadvantages of Savings Accounts?Opening an AccountPopular Uses for Savings AccountsAdding and Withdrawing Money from Your Savings AccountWhat Makes a High Yielding Savings Account?What to Look for in a High Yielding Savings AccountTop High Yielding Savings Account OptionsCIBC Bank USAVio BankMarcus by Goldman SachsAllyBarclaysAmerican Express National BankSynchrony BankHSBC\u2019s SBC DirectCitizens Access by Citizens BankPurePoint FinancialAlternatives to a Savings AccountWhat Are the Advantages and Disadvantages of Savings Accounts?They\u2019re Mostly FreeSavings accounts cost next to nothing to start. If you decide to have one at an online\/community bank then it\u2019s most probably going to be completely free. \u00a0So there\u2019s really no financial risk to opening one. It\u2019s not as if you\u2019ll be risking a hundred dollars or so to set one up.Safer than the AlternativeThere aren\u2019t many options to store money. You can keep money in a hidden location at home, buy a safe, or put it in a bank.While hiding money at home or putting them in a safe might be feasible with small amounts, as you make more money it\u2019s going to be more difficult.Additionally, it\u2019s hard to feel safe at home with all that money around. The fear of theft or burglary will always be there.Natural disasters can pose as another threat to your cash, particularly fires.Good to Know: By keeping your money safe in a savings account at the bank or institute of your choice, all of these worries will be laid to rest. Banks and credit unions are covered by insurance too, so even if something happens to them, your money will be unaffected.No RestrictionsYou could be thinking \u201cwhat if I urgently need cash and it\u2019s all at the bank?\u201d You\u2019re free to do with your money as you please once it\u2019s in a savings accounts.Several methods of payment such as using a checkbook, debit card, or online banking can be used freely. Of course you can always withdraw money from an ATM using your debit card or go straight to the bank to withdraw money from tellers.Good to Know: It\u2019s worth noting though, that savings accounts aren\u2019t completely unregulated.They often have a limit regarding the number of times you can withdraw money but that limit is usually quite high and most people don\u2019t reach it.Don\u2019t forget to ask your bank about any limits or regulations they might have.The penalty for these limits is often financial or they might lead to closure of the account.Interest RatesWe mentioned at the start that interest rates aren\u2019t as high as we would all like them to be. Nonetheless we\u2019re going to get into banks and financial institutions that offer the highest interest rates later in our guide.While the majority of interest rates being offered right now can leave you disappointed, they\u2019re still better than nothing.If someone told you that you could deposit your money in a bank and receive absolutely nothing or receive 1% in interest each month, what would you choose?Rates vary not just from one bank to the other, but also from time to time as they\u2019re influenced by the country\u2019s economy.Minimum BalanceUnfortunately, savings accounts aren\u2019t flawless and there are limitations that might bug you. The first is the need to deposit a minimum balance.For example having a minimum balance of $4000 at bank X means you can\u2019t start a savings account at that bank unless you have that amount of money. Not to worry though because minimum balance varies between different banks and credit unions so you\u2019ll find something that works for you.Monthly FeesWhile you probably won\u2019t have to pay anything to create a savings account, there will be monthly fees. These fees are often negligible but if you\u2019ve withdrawn too much money from your account then they can become significant.Your balance will become in the negative if it\u2019s zero then the bank extracts its monthly fee.Credit Unions, on the other hand, don\u2019t withdraw fees from your balance like banks. They\u2019ll instead have you deposit a certain amount of money, $20 or so when you first start your account.They\u2019ll use that money and you won\u2019t be able to withdraw it under any circumstances.The only way to get it bank will be to close the account. It\u2019s much more convenient though when you think about it. You won\u2019t have to worry about the bank extracting the monthly fee from the bulk of your balance.Good to Know: Some institutions will waive the monthly fee for your savings account if you already have another account open with that institution like a checking account for example.This will change though if you close your other account and keep your savings one.Opening an AccountOpening a savings account is something that should take you minutes to complete. There\u2019s really not much for you to do and the process isn\u2019t complicated at all. You can even do it online or using a mobile app now.It\u2019s also possible to open the account at a bank in person if you\u2019re not really comfortable using technology for money. The first step and the one that\u2019ll take you the longest is deciding on which bank you want to use first.There are lots of factors to consider like interest rates, monthly fees, additional services they might offer, and the proximity of a branch to where you live.While most actions can be completed online or through a mobile app, you still want a branch to be near you in case you have to go in for any reason.Some institutes have a minimum amount of money that you need to deposit in order to have an account.Don\u2019t forget to ask about online banking, mobile apps, and any additional services they might be able to offer you.If you have your mind set on joining a credit union then you\u2019ll need to call them to verify whether or not you can join.Credit unions are a lot like small banks but are more community oriented. They usually have lower fees and somewhat higher interest rates.Important Fact: Regardless of whether you\u2019re looking to join a bank or a credit union, ask them about the required documents. Most will need your ID and Social Security number as well as a mailing address.Those who are under 18 years old will mostly be unable to open a savings account independently.Pro Tip: Call the bank or credit union in order to find out what the process is for minors. They\u2019ll still have saving options but it\u2019s not as straightforward as it is with those over 18.Popular Uses for Savings AccountsYou probably already know this, but a savings account is a great place to keep your money stored safely while earning some interest along the way. The main use however is for savings, as the name implies.Keeping a large sum of money at home in a safe might tempt you to use some of it whenever you want to buy something.Depositing that money in a savings account, however, will make you think twice before withdrawing any of it.That\u2019s why a savings account is quite beneficial if you\u2019re trying to save a large sum of money on the long term.An Example to Look AtLet\u2019s say you\u2019re looking to buy a house within a couple of years from now, knowing you have the house\u2019s deposit money safely in an account and adding to it as the months go buy will eventually lead you to achieving your goal and lots of satisfaction. The same premise applies if you\u2019re trying to save for a vacation. It doesn\u2019t have to be all fun and games though. Your savings account could have money saved for emergencies.Unfortunately, most Americans aren\u2019t prepared for a financial emergency or crisis.Needing healthcare without insurance or the car breaking down will result in most people seeking a loan or ending up in debt. If you have a savings account, however, and you\u2019re one step ahead then you\u2019ll be prepared for whatever life throws your way.Creating a savings account is one of our top 109 easy ways to make money fast.Hopefully you don\u2019t end up needing that money but it doesn\u2019t hurt to be prepared.Those who want to save for different things at the same time can open multiple savings accounts.You could open a savings account for a big family vacation next year, another so that you can buy a new car in 2 years, and maintain a third one for emergencies.As you receive each paycheck you can deposit some money into each account.You could also deposit money in one account each month.An ExampleFor instance, deposit money in the emergency account in January, in the vacation account in February, and in the car account in March. As time passes by you can keep an eye on each account on whether you\u2019re seeing the progress you like towards achieving your goal.The problem with multiple accounts is that each account will incur its own fees from the bank or credit union.Pro Tip: Take care to not have too many fees that you\u2019re getting almost no interest whatsoever.Another Possible IssueAnother issue you might face is that it can be cumbersome to monitor and take care of multiple accounts.Pro Tip: In order to avoid these problems, check the bank\u2019s maintenance fees for each account first.Also ask about online banking and mobile apps which can make tracking your money a lot easier.Adding and Withdrawing Money from Your Savings AccountHandling money with a savings account is far from complicated. Whether you\u2019re looking to add money to your account or withdraw funds, both processes are easy and convenient. Money you add to a savings account is in no way locked up or inaccessible.Depositing MoneyObviously the easiest and best\u00a0known method of depositing money is directly through bank tellers or even ATMs.You can take your cash and deposit it to your savings account through an ATM or have a bank teller do it for you at no expense.Checks can also be deposited into a savings account. Just write the savings account number on the deposit slip.Checks can be deposited into your account through mobile apps as well. Another reason to ask a bank about the services they can provide via their mobile app.Of course transferring money between accounts or from a different bank are also options.If you have another type of account in the same bank, you can easily transfer money between them either through an app, online banking, or customer service on the phone.The same applies to transferring money from a different bank.Instead of moving money around yourself, you could have your employer directly deposit your paycheck or part of it into your savings account. A great option if you don\u2019t have the time or energy to keep making the transfers yourself.So whether it\u2019s in person, over the phone, via ATM, or by having your employer do it for you, you\u2019ll surely find a way to deposit money that suits your needs.Withdrawing MoneyWe mentioned plenty of ways you can deposit money and in the same manner, there are plenty of ways that you can rely on to withdraw or use money in your savings account.You can straight up withdraw cash using your debit or credit card for that account at an ATM or in person at the bank.The debit or credit card can also be used to make purchases whether online or in a store.It\u2019s also possible to transfer money from one account to the other or from one bank to another. This operates both ways, into and out of your savings account.What Makes a High Yielding Savings Account?When we talk about yield, what we mean is the annual percentage yield (also known as APY).Regular and most accounts offer APYs that are about 0.02%. You\u2019re already thinking this, but this is a seriously small percentage.There are, however, high yielding savings accounts that have APYs of up to 2.15%.This is over 2 extra percent compared to the most common and regular accounts.While 2% don\u2019t seem much, but as you deposit more money and over a longer period of time, they will make a difference in your finances.So it\u2019s important to never underestimate small percentages when it comes to money.A Few ExamplesIf you\u2019re still not convinced, let\u2019s give you a few examples comparing what kind of profit you would get with a basic savings account versus a high yield savings account. Seeing the number play out in front of you is particularly useful when managing your finances.Let\u2019s say you deposit $5,000. A basic savings account would give you 0.01% interest which amounts to just $5,005 after 10 years. In comparison, depositing the same $5,000 in an account with 1.9% interest will amount to approximately $6,046.Receiving 1.89% extra in interest earned you over 1,000 extra dollars. This is money you\u2019re not actively working with and is just deposited in a bank account. For our second and final example, we\u2019ll pretend deposit $15,000.After 10 years of the traditional 0.01% interest, they\u2019ll amount to $15,015. On the other hand, after 10 years of the high yielding 1.9% interest, they\u2019ll amount to approximately $18.138. The 3,000 dollar difference is certainly worth spending some extra time looking for high yielding savings accounts.Considering the large difference found in rewards between traditional and high-yield savings accounts, why would you opt for the former? There is practically no benefit to starting a low yield savings account unless you find banks offering high APYs to also require high monthly fees, but that\u2019s rarely the case.Good to Know: We mentioned that often the goal of opening a savings account is to eventually be able to purchase or put down a deposit for an expensive item or product. \u00a0For sure getting an extra 1-3,000 dollars will be useful when buying a car or putting down a deposit for a new house. Even if you\u2019re setting up a savings account to eventually go on a big vacation or for emergencies, having extra money won\u2019t hurt. It\u2019ll actually give you more options.What to Look for in a High Yielding Savings AccountMoney is complicated and a topic that we all worry about. If you start getting really into the tiniest of details you might never end up making a decision.That\u2019s why we\u2019ve established a few items to help you find a savings account to suit as many of your needs as possible. These few simple items are designed to ensure that your money is absolutely safe and that you\u2019re starting a high yielding account.FDIC InsuranceFirst things first, we need to make sure we don\u2019t lose our money. FDIC insured banks or entities are safer because if that bank gets robbed or anything happens to the money, your finances won\u2019t be affected as they\u2019ll be insured.High Interest RatesThis is pretty self explanatory, but you want a high yielding account to make the most profit. We\u2019ll discuss some of the banks that offer the highest interest rates later on.Monthly or Yearly Fees and Minimum DepositWhile you may want to make as much money as possible through interest rates, you don\u2019t want to lose a significant portion of it in monthly or yearly fees. Look for banks that charge no or minimal fees in order to preserve your earnings. Go for banks that don\u2019t have a high minimum deposit if you don\u2019t have much money to deposit right now.Bank ReviewsWhat other customers have to say about a bank is very important even if everything looks good on paper. Make sure to look up online customer reviews before depositing money in a bank.Try to Start an Account with a Local Bank or Credit UnionWhile credit unions are smaller entities than global banks, they have a few advantages in the sense that they have decent interest rates and charge fewer monthly and yearly fees. The same applies to online banks since they have fewer expenses on account of not having actual branches.Check for OffersIn order to collect more customers, banks sometimes promote offers for a limited period of time. These offers may include higher APY for a short period of time, a couple of months for example.After these few months are over, the interest rate will go back to regular.If the bank\u2019s regular interest rate is originally low you can forget about it.There\u2019s no point in getting 1.5% in interest for 3 months then 0.01% for as long as the account is open when you can just sign up with a bank that has a steady and constant interest rate of 1.5%.Connect Your Savings and Checking AccountsThis isn\u2019t really something to look for, but rather something to do. By connecting both accounts it\u2019ll be much easier to transfer money between them. The more money you transfer to your savings account, the more profit you make.Top High Yielding Savings Account OptionsMost of the highest yield savings accounts right now are online forms. This is good news for those who prefer dealing with their finances online with the click of a button and bad news for people who are less comfortable with technology.Luckily, however, most of these banks can provide you with an ATM card so you can withdraw cash at an ATM and make purchases. Let\u2019s take a look at some of the best savings accounts online.CIBC Bank USAThis is the US division of a bank originally based in Canada. When downloading the mobile app take care to download the US version rather than the Canadian one.We\u2019re mentioning it first because it offers an APY of 2.39%. Higher than almost everyone else out there.The drawback is that you need a minimum of $1,000 to open an account unlike other banks that don\u2019t need a minimum deposit.CIBC Bank USA won\u2019t charge you a monthly fee, but note that if you make more than six transactions per statement cycle you\u2019ll be charged $10.Vio BankVio Bank is basically the online division of MidFirst Bank.It offers an APY of 2.41% which is the highest on our list, but it\u2019s not as established as some of the other popular and well known banks out there.You only need $100 to open an account and there are not monthly fees.So far they haven\u2019t released a mobile app although their website says that it\u2019s in the works.If you choose to go with Vio Bank you can still use their services through your phone since the website is mobile friendly. You shouldn\u2019t have any problems until they launch the app.Marcus by Goldman SachsEver heard of Goldman Sachs? This is a bank associated with them offering 2.25% APY. There is no minimum amount of money required to open an account and there are no transaction fees.You\u2019ll be getting an amazing interest rate without losing any of your money to monthly fees.Depositing funds into your account is quite easy since you can do it through wire transfers, electronic transfers, and checks.If you would like to use your funds in any way then you only have two options: electronic and wire transfers.The maximum amount of money you can deposit in your account is one million dollars but that shouldn\u2019t be too much of a problem.Your money will be insured by the FDIC up to $250,000 which is pretty neat too.AllyWhile the options mentioned above are online divisions of different banks, Ally is solely an online bank that has no actual branches.Ally offers 2.20% APY.What makes Ally so special is that you can open a free checking account along with a savings account.This is great because as we mentioned earlier, it\u2019ll make transferring money between both accounts fluid.You\u2019ll be able to deposit and withdraw money from your savings account with greater ease.A mobile app is available so you can manage your finances on the go without having to use a computer or laptop.BarclaysBarclays is probably the most well-known bank on our list. The famous British bank has been around for over 300 years and is present all over the world including the United States.There are no monthly fees and no minimum required amount to open the account.There\u2019s an added sense of security to depositing your money at one of the largest banks across the globe which is perhaps the bank\u2019s greatest advantage over most of its competitors.American Express National BankYou can get an interest rate of 2.10% with American Express Bank.There are no monthly maintenance fees and no minimum deposit although you need to start depositing money into your account within 2 months from the day you open it.There\u2019s really not much special about opening an account with American Express National Bank, but it\u2019s still a great option with one of the highest APYs available at the moment.Synchrony BankFormerly a part of General Electric, Synchrony Bank is now its own entity. There are a couple of pros but there are definitely some flaws here too.What we like the most are the APY of 2.25%, the absence of monthly fees, and that there\u2019s no minimum balance required to open an account.We also appreciate that they send you an ATM card giving you more options to access your money.What we really don\u2019t like is that their website isn\u2019t as smooth as it should be and there\u2019s no mobile app.The poor online experience really takes away from Synchrony Bank\u2019s online savings account.\u00a0HSBC\u2019s SBC DirectHSBC is the 14th largest bank in America so it\u2019s no surprise that they created an online division in the form of SBC Direct.SBC Direct has been around for over 10 years actually and has been offering incredible rates ever since.The bank used to offer an interest rate of 1.70% APY but has no increased that to 2.25% making it one of the highest yield savings accounts available.The minimum balance requirement of $1 is almost negligible and the limit to how much you can deposit is 2 million dollars.There are no monthly maintenance fees and all of your funds will be FDIC insured.Just like with Barclays, you get the added benefit of dealing with one of the largest banks available.Citizens Access by Citizens BankCitizens Access is a newly created online division of Citizens Bank. There are no monthly fees to maintain your account, but you will need at least $5,000 to create one.As long as your account balance has at least $5,000 then you\u2019ll be getting 2.35% APY.Once your balance drops below $5,000 the APY will drop to 0.25% which will be a major problem for some people who can\u2019t guarantee that their account will always have the minimum 5,000 dollars.Another problem with Citizens Access is that they haven\u2019t launched a mobile app, at least not yet.PurePoint FinancialPurePoint Financial is a division of Union Bank that offers 2.35% APY. Sadly, you need a minimum of $10,000 to open an account and if the account balance drops below that then you\u2019ll stop receiving an interest rate (it\u2019ll drop to 0.25% like with Citizens Access).Regularly you won\u2019t need to pay any monthly fees unless you make over 6 transactions per month, in which case the bank will charge you 10 dollars. They have a website that\u2019s mobile friendly but no app is available so far.Alternatives to a Savings AccountWhile we have presented you with all you need to know about savings accounts and choosing the best one for you, it might be possible that you\u2019re still not convinced. So in case you want to try something other than a savings account, we\u2019ve made a list of some other similar options you might like.Certificates of DepositCertificates of deposit are another popular way of saving money while making even more interest, but they\u2019re not as flexible as savings accounts.By buying a certificate of deposit, you\u2019ll deposit your money but won\u2019t be able to withdraw any of it for a certain period of time (at least 6 months).If you absolutely must withdraw money for any reason then you\u2019ll have to pay a penalty.What\u2019s great is that by waiting the full amount of time agreed upon, you\u2019ll receive much greater interest compared to a savings account.Money Market AccountsMoney market accounts are somewhere in between savings accounts and certificates of deposits.They\u2019re similar in that money market accounts will pay interest on your deposited money, but different in that they\u2019re a little more strict.You can only withdraw money a certain number of times per month. So you can\u2019t freely spend it.So money market accounts are pretty much more flexible than certificates of deposits, but not as flexible as savings accounts.Finding a high yielding savings account isn\u2019t as hard as some make it out to be. The key is to know what matters to you most. Is it having an ATM card? Does a minimum balance requirement bother you?There are lots of options available and you\u2019ll certainly find a high yielding savings account that has everything you need. Managing finances shouldn\u2019t be a chore and most of the options we listed make sure that it isn\u2019t.\u00a0\u00a0"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Personal Finance","item":"https:\/\/moneydoneright.com\/personal-finance\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"Saving And Budgeting","item":"https:\/\/moneydoneright.com\/personal-finance\/\/saving-and-budgeting\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"The Beginner\u2019s Guide to Finding a High Yielding Savings Account","item":"https:\/\/moneydoneright.com\/personal-finance\/saving-and-budgeting\/best-online-savings-accounts\/#breadcrumbitem"}]}]