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Saturday, July 20, 2024

7 of the best savings rates right now

When it comes to your overall financial health, your savings plays a significant role. Without enough money put away for emergencies,unexpected bills or even large purchases, you could end up in big financial trouble if the worst case scenario occurs.

And while credit cards and loans can be used to help cover these types of expenses, the current interest rate environment makes it a lot more expensive to borrow money. The Federal Reserve has hiked rates 11 times over the last 18 months, so any loan product you use is going to come with costly interest charges — even if you have good credit.

So if you’re planning to rely on borrowing if the unexpected happens, you may want to think twice. But the good news is that those recent rate hikes have had some positive repercussions for savers in the form of high APYs. And if you start putting money away today in one of these top high-yield savings accounts, you’ll earn big interest on your money — which could help you avoid having to borrow when rates are high.

Get started and explore the top savings rates available here.

7 of the best savings rates right now

If you’re looking for the accounts that pay the highest rates on your savings, the accounts below may be worth considering.

BluPeak Credit Union: 5.33% APY

BluPeak Credit Union, a San Diego, California-based credit union, offers one of the highest savings APYs available right now. The credit union’s Preferred Savings Account currently has an APY of 5.33% — more than 11 times the national average. And, all it takes to start earning is a $25 minimum deposit into the account. There are no ongoing minimum balance requirements either.

Plus, anyone across the nation can join this credit union by making a small donation ($25) to certain nonprofit organizations. However, the one caveat is that you have to keep at least $200 in the account or you’ll be charged a $5 monthly maintenance fee.

TotalDirectBank: 5.26% APY

TotalDirectBank currently offers a rate of 5.26% on its money market account — one of the top savings rates out there currently. And, while this account is not technically a savings account, it still functions like one. For example, unlike traditional money market accounts, there are no check writing privileges with this account.

Plus, you’ll only need to keep an ongoing balance of $2,500 to earn that high APY — but the potential downside is that you’ll need a minimum of $25,000 as your opening deposit on this account. That can make it unattainable for some savers.

Milli: 5.25% APY

Milli is another financial institution offering a high APY on savings accounts right now. This online bank is currently paying an APY of 5.25% on its savings account. And, in addition to that top APY, there are no minimum opening deposits or monthly fees associated with the account, so it’s a great option for savers who don’t have much money set aside but still want to earn a top rate on their money.

There are a few downsides to consider, though. While Milli gives account holders access to their money with an ATM card, it doesn’t offer mobile check deposits or brick and mortar locations. Instead, the account is available only through a mobile app.

UFB Direct: 5.25% APY

UFB Direct — a division of Axos Bank — has a savings account rate that offers an APY that rivals the top options, but it’s a lot more accessible than some of the other accounts. This online bank, one of the most established, offers a 5.25% APY on its Priority Savings Account, but the account doesn’t have a minimum opening deposit or monthly fee. That makes it easy for nearly any saver to take advantage of what it offers.

Evergreen Bank Group: 5.25% APY

If you have $100 to deposit into a savings account, you can start earning a 5.25% APY with its high-yield savings account. This bank is headquartered in Illinois, but its accounts are available nationwide — and that includes its high-yield savings account.

And, if you open this account, you won’t have to worry about any minimum ongoing balance requirements or monthly fees, either. You’ll also get access to your money via an ATM card, which is an added convenience to consider in addition to the high rate you can earn with this account.

Newtek Bank: 5.25% APY

The 5.25% APY offered by Newtek Bank on its high-yield savings accounts is one of the top savings rates available right now. And, you won’t have to meet any high minimum opening deposit requirements or ongoing balance requirements to earn it. Newtek pays that APY on any amount you have in the account.

The one downside is that Newtek is an online bank, so it doesn’t offer brick-and-mortar locations to customers, and it doesn’t offer account holders access to their savings via an ATM card. So, if you want to ensure easy access to your cash, you may want to look elsewhere.

Popular Direct: 5.20% APY

Popular Direct’s Select Savings account offers not just a high APY, but also comes with low minimum requirements for savers. Anyone who has $100 to deposit into this account can take advantage of the 5.20% APY available. And, there are no minimum ongoing balance requirements to consider, either.

This account is also free of costly monthly fees. However, you won’t get an ATM card to deposit or withdraw from the savings in your account. So if you think you’ll need that type of access in the future, you may want to consider one of the other accounts on this list instead.

Find out what you could be earning on your savings here.

The bottom line

This is a great time for savers to capitalize on the high rates being offered by banks, credit unions and other financial institutions by opening a high-yield savings account. Contrary to popular belief, most of these accounts are fee-free and easily accessible by your average saver, meaning that there aren’t huge deposit or balance requirements that limit access. But as with any type of account, it’s important to read the fine print and understand the terms and conditions before opening one. That way, you’ll be prepared to make an educated decision for your finances.

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