Bills, groceries, loans, and unexpected payments pop up all the time. Even when you feel that you have a firm grasp on your budget, something always comes up. Every now and then you’re able to put a little cash away into your savings account, but it just sits there doing nothing.
In fact, maybe you’ve had the same savings account for the past ten years since college. What if you could open a new account that would drastically increase your savings potential? The answer is, you can!
There are several things that you want to make sure are included in a new savings account. The three most obvious components you will want to have are as follows: easy to use, no fees—the point is to save money, not spend it—and high interest.
Two less obvious “must haves” are making sure the bank requires a two-factor authentication process, and that it is insured by the FDIC or NCUA. Let’s take a look at a couple of banks that meet the above criteria.
Ally Bank is strictly an online-only bank. Ally offers an APY (Annual Percentage Yield) of 2.2%. An annual percentage yield is a return that someone can expect on money after it’s been left in the account for a year.
To put this in context, the number 1 ranked bank, Charles Schwab, only offers an APY of 0.5%. Ally Bank also offers around the clock customer service, and has no monthly fees nor does it require a minimum balance.
Yes, you read the header correctly. These two well-known credit card companies do in fact offer savings accounts. They both offer the same 2.1% APY and have no monthly fees or minimum requirements.
Discover Bank seems to offer the most convenience with its online banking app and supplemental checking account that offers no fees, and 1% cash back on debit card purchases. The online experience with American Express is less impressive since it requires a completely different website and log-in credentials from its Credit Card account. Not too ideal if you have both.
Synchrony Bank is probably the least-known bank out of the list. Like American Express and Discover Bank, it has focused its attention on the credit card spectrum. It offers the highest APY at 2.25% and it also has no monthly fees or minimum balance requirement.
The biggest advantage of having a savings account with Synchrony is that it provides an ATM card for emergencies. It also allows you to deposit cash or checks at the ATM. The only drawback is its lack of an app to manage your account.
As with most decisions in life, you’ll need to make the one that best suits your needs. If having your checking and savings account at the same location is important to you, choose accordingly. But if having a 24/7 banking experience with a high return on your money gives you more comfort then go that route. Just make sure you do your research.