Where to park money? Three high-yield savings accounts worth exploring

Follow us on Google News:
 Where to park money? Three high-yield savings accounts worth exploring
Image source: NicoElNino,Shutterstock

Summary

  • High yielding saving accounts are those that offer higher interest rates on saving deposits.
  • These banks are mostly online banks. They have fewer overheads and can pass on earnings in terms of interest to their customers.
  • These are easy to open accounts to keep money that depositors may want to use at any time.  

All savings accounts pay an interest rate for the money kept in the account. The more is the interest rate, the higher is the growth of your savings. Many online banks offer higher rates than the brick-and-mortar banks like Wells Fargo, JP Morgan Chase, and Bank of America. 

                         

Where to park money? Three high yield savings accounts worth exploring

 

The brick-and-mortar banks have branches with overhead costs like rent and staff salary, etc. Banks adjust these expenses from their earnings. In the case of online banks, these overheads are either less or do not exist. As such, online banks may pass on the higher income to the savings account holders through interest and yield. Many banks pay an annual percentage yield (APY) of 0.01%. The average APY is 0.06% as per Federal Deposit Insurance Corp. (FDIC).  

Also Read: Back with a bang! Nio, Xpeng & Li stocks ride high on July delivery

This 0.01% or a 0.06% interest rate difference could make a huge difference in the long term. Opening an account with an online bank is easy. Banks are safe when insured by FDIC, and credit unions are safe when insured by National Credit Union Administration up to a minimum of US$250,000.

Here we discuss three banks that offer higher yields on the money parked in the savings account.

Also Read: All eyes on Square Inc, Afterplay Ltd after US$29 billion deal

Source – pixabay.com

Also Read: Why are these four pharma stocks drawing investors’ attention?

Marcus by Goldman Sachs 

Marcus is a brand of Goldman Sachs USA. It offers fixed-rate personal loans, home improvement loans, CDs, and high yield savings accounts without a fee. In addition, Marcus offers an annual percentage yield (APY) of 0.50% and requires only US$ 0.01 as a minimum balance.

Being a part of Goldman Sachs and FDIC member, Marcus can be a safe option to park your money. Marcus by Goldman Sachs is an online bank and does not have branches or ATMs. 

Also Read: Mining the Market: Check out these six metal stocks going bullish

Ally Bank

Ally Bank is Ally Financial Inc.'s (NYSE: ALLY) subsidiary company. Ally Bank is an online bank and has no branch. The bank offers a savings account, CDs, checking accounts, credit cards, auto loans, mortgages, and investment products. Ally bank APY is 0.50%, and the minimum balance requirement is only US$ 0.01.

This FDIC member reported a US$ 129 billion retail deposit balance in the second quarter of 2021 results. In addition, its customers increased from 324 thousand in 2010 to 2.39 million in Q2 2021.

The holding company Ally Financial Inc. is also engaged in automotive finance, Insurance, corporate finance, and mortgage finance.

Also Read: FAANG earnings update: Profit streak continues in June quarter

Synchrony Financial

Synchrony Financial is a consumer finance company behind Synchrony Bank. Synchrony bank is another online bank that offers an APY of 0.50% with almost zero minimum balance requirement of US$ 0.01.

It is a member of FDIC and offers savings accounts, CDs, individual retirement accounts, credit cards and money market accounts. 

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.

Featured Articles