![]() Also note the financial health of the bank, which Deposit Accounts judges using a variety of well-accepted financial yardsticks. For example, Vio Bank Cornerstone Money Market Savings Account doesn’t offer check writing or an ATM/debit card.Īt Deposit Accounts, check customer reviews for consumer experiences opening, maintaining, and closing accounts. As with online savings accounts, some banks may limit withdrawals or check writing. Make sure the money market account has the features you need. That’s because some money market accounts offer higher rate tiers for balances above a certain amount-such as $25,000-and are less likely to change rates at those higher tiers later. If you can stash a significant amount in a money market account, you may benefit from more rate stability than in an online savings account, Tumin says. Institutions are able to provide higher rates on these accounts by investing your money in secure, short-term Treasury debt. Offered by banks and credit unions, they’re insured like savings accounts, up to $250,000 per individual holder. Money market accounts offer yields similar to savings accounts but with some additional benefits and restrictions. If the account has been around for several years, there’s less likelihood that the current APY is a teaser rate that will drop later, says Ken Tumin, founder and editor of Deposit Accounts. You can also review the account’s rate history on Deposit Accounts (click on the details box). And note the limitations, such as the number of free monthly withdrawals. (For both websites, scroll below the top listings, which are paid placements.) Check the minimum deposit, fees, and features, such as ATM access and check writing. You can find the rates offered for these high-paying accounts on websites such as Deposit Accounts and Bankrate. ![]() (A joint account with two holders is insured for up to $500,000.) Online savings accounts are among the safest savings vehicles, with federal insurance covering up to $250,000 in deposits per holder, whether through a bank or a credit union. Bear in mind that there’s nothing to stop you from using more than one of them, depending on your goals. If you’re thinking more long-term about your savings, here are four strategies to consider. (There are penalties for early withdrawal.) ![]() (Initial deposits must be made within 60 days or the account may be closed outgoing wire transfers incur a $35 fee.)Īs for CDs, Rising Bank, the online division of Midwest BankCentre in Missouri, is paying a 3.10 percent annual percentage yield on a 12-month CD, with a minimum deposit of $1,000. Bask Bank, the internet division of Texas Capital Bank, is offering a savings account with a 2.20 annual percentage yield (the rate plus the effect of compounding interest), with no minimum balance or monthly service charge. ![]() ![]() Some smaller players are competitive as well. Large national online banks, such as Ally and Synchrony, are currently paying interest rates of 2.00 percent or more on new online savings accounts, while American Express National Bank and others are offering 2.50 percent or more on one-year certificates of deposit, according to Deposit Accounts, a website that tracks depository banking products. That said, it makes sense to get the biggest bang for your buck, especially if rates head even higher in the coming months, as many forecasters predict. “You should not be trying to use your savings accounts to maximize returns but to cover costs in an emergency and to help you ride out stock market downturns without panicking,” says Manisha Thakor, a certified financial planner and financial educator at MoneyZen in Portland, Ore. ![]()
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