Money Tips

7 Best Online High-Yield Savings Accounts to Consider for 2020

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*This post may contain affiliate links. For more information, read my disclaimer here

*The interest rates in this post are subject to change at any time, but I will do my best to keep them up-to-date. Last update: 5/28/2020.

 

Ever looked through your transactions and stumbled across the ones labeled ‘interest’? You’re credited .05 cents here and .02 cents there, so you flare up your nose and keep on scrolling.

 

For years, I kept one of my account balances above the $2,000 mark yet only got paid roughly $0.17 in interest for the entire year. Insulting? Yes, but the interest paid was only 0.01%. Had I deposited that money into a high yield savings account of 2.05% I could’ve earned $41 instead!

 

Today, there are many online banks that offer competitive rates so I’ve done some research to gather the best 7 online high yield savings accounts you should consider opening today.

 

Umm, what’s a high yield savings?

Online high yield savings accounts have a higher interest rate than traditional savings accounts. They are mostly found online, but can also be found in brick-and-mortar banks.

 

These accounts offer an incentive for saving and, with inflation on the rise, help to keep your dollar’s value.

 

What’s the difference between an APY and an interest rate?

The acronym APY stands for annual percentage yield and is the total amount of interest you earn in a year, including compounding interest. It gives you a more accurate reflection of your potential earnings because it takes into account the money you’ve been earning on your original deposit.

 

An interest rate is simply the amount you will be paid annually for depositing money. It does not include compounding interest like an APY, which makes it a bit more difficult to predict how much your deposit will earn.

 

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best online high yield savings accounts

Online high yield savings accounts

American Express

APY: 1.30%

American Express, or AMEX, is huge on delivering superior customer service and is number 16 in Fortune’s World’s Most Admired Companies. With $189 billion in assets, they’re undoubtedly one of the best, offering:

  • Credit cards
  • Personal loans
  • CDs and savings accounts
  • Small business funding

 

My favorite rewards credit card is via AMEX, as well as one of my online savings.

 

With their online savings account, there are no monthly fees or minimum balance requirements. You can easily move money between your accounts and transfers can be done at any time of the day either online or by phone.

 

You have the option to link up to three bank accounts and your deposits are FDIC insured.

 

Open your account here.

You will need:

  • Basic personal information (name, home address, DOB)
  • Social Security Number
  • Bank routing and account number

 

Ally

APY: 1.25%

Ally works to change the way people see banking through their advanced digital experiences. With 1.9 million customers, including me, this award-winning bank offers products such as:

  • Home loans
  • Money market accounts
  • IRAs

 

I use Ally for my savings and investment account, and love how the mobile app makes it easy to manage both at the same time!

 

Their online savings account comes with no monthly maintenance fees and there is no minimum balance requirement so you get the same rate no matter the amount. There’s also no charge for transactions such as:

  • Cashier’s checks
  • Copies of online statements
  • Standard or expedited transfers
  • Wires (domestic and international)

 

Interest is compounded daily which helps to increase your annual earnings, and deposits are insured by the FDIC.

 

If you opt to apply for this account, you’re subject to a six transaction limit per statement cycle. Their support team is available 24/7 via call, chat, or email.

 

Open your account here.

You will need:

  • Basic personal information (name, home address, DOB)
  • Social Security Number
  • Bank routing and account number

 

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Capital One 360 Performance Savings Account

APY: 1.30%

Capital One is the nation’s 5th largest consumer bank with a mission to bring “ ingenuity, simplicity, and humanity to banking.” They offer a range of products such as auto loans, credit cards, and checking accounts.

 

With this account, you will earn 5x the national average and all deposits are FDIC insured up to the allowable limits. There are no monthly fees and no minimum balance to either open or maintain your account.

 

This account comes with a top-rated mobile app with 24/7 access to your money and tools, such as mobile check deposit, that help make managing your money easier.

 

A few perks include:

  • The option to assign up to 10 individuals as Payable on Death beneficiaries
  • The ability to open an account at a Capital One branch or Café.

 

Open your account here.

You will need:

  • Basic personal information (name, home address, DOB)
  • Social Security Number
  • Employment information
  • Annual income
  • Bank routing and account number

 

Citi Accelerate Savings

APY: 1.40% *may differ depending on your home address.

Citi is a mobile bank with a mission to promote growth and economic progress via their financial services. They pride themselves on having 200 years of experience and operating with a high ethical standard.

 

With this account, you will be earning over 13x the national average, which is higher than most on this list. There is no minimum opening deposit required and earnings are unlimited.

 

Contrary to other online savings accounts, a $4.50 monthly service fee will apply to an account opened in the Access Account Package if there is not an average monthly balance of $ 500+.

 

Using the mobile app, you can bank from anywhere and deposit mobile checks for free if you have a linked Citi Checking account. You can transfer funds for free up to 6 times per statement period, but ATM withdrawals are unlimited. Citi customers have access to over 60,000 ATMs across the U.S.

 

Open your account here.

You will need:

  • Basic personal information (name, home address, DOB)
  • Social Security Number
  • Bank routing and account number

 

Discover Online Savings Account

APY: 1.15%

Named one of the best banks of 2019 by NerdWallet, Discover seeks to help people make smarter choices with their money to have a brighter future. They have over 60,000 no-fee ATMs and offer a wide range of accounts such as money markets and CDs.

 

There’s no monthly fee and no minimum deposit required to open an account. Interest is compounded daily and paid monthly, which helps to increase your annual earnings. There’s a transfer limit of 6 transfers per month but no limit on withdrawals made via the ATM.

 

Discover’s mobile banking is rated 4.8 out of 5 stars on the Apple Store app and includes features such as:

  • Mobile check deposit
  • Account transfers

 

If assistance is needed, you have 24/7 access to a U.S. based customer service.

 

Open your account here.

You will need:

  • Basic personal information (name, home address, DOB)
  • Social Security Number
  • Bank routing and account number (you have the option to add funds at a later time)

 

Barclays Online Savings Account

APY: 1.15%

Barclays is a financial services provider that handles credit cards, retail banking, wealth management, and corporate and investment banking for 48 million customers.

 

This account comes with no monthly maintenance fees and no minimum opening balance. To make saving easy, direct deposit is offered and free online transfers.

 

Open your account here.

You will need:

  • Basic personal information (name, home address, DOB)
  • Social Security Number
  • Bank routing and account number

 

Marcus by Goldman Sachs

APY: 1.30%

Marcus Goldman has been around since 1869, helping customers reach their financial goals through online savings accounts and loans. They pride themselves on having no hidden fees, except an early withdrawal fee for their CDs.

 

Besides no fees, this account also requires no minimum deposit. Deposits are FDIC insured and you’re allowed 24/7 account access. Their Contact Center is open 7 days a week to assist with any questions and/or issues.

 

Open your account here.

You will need:

  • Basic personal information (name, home address, DOB)
  • Social Security Number
  • Bank routing and account number

 

Conclusion

No one wants a measly return on their investments, which is why so many people are on a quest to get the best possible interest rate for their savings. It’s free money, and with time and consistency, that money continues to grow!

 

Do yourself a favor, ditch the 0.01% accounts and maximize your hard-earned money by switching to one of these online high yield savings accounts!

 

Money resources to check out!

The “Broke” Girl’s Guide to Saving Money course. Don’t know where to start when it comes to saving money? Or, do you wind up quitting because you always find you need the money you contributed right back?

If so, you need this FREE  course! These strategies paired with online high yield savings accounts will make you a money-saving boss.

Learn:

  • The first step you need to take towards saving (it’s not what you think)
  • How to find a balance between bills, saving, and debt
  • The one thing you need to do to stop withdrawing the money you’ve saved!
  • How to keep your head in the game so you don’t wind up quitting…again

CLICK HERE TO ENROLL!

 

Break up with Debt email course. This free email course is for those who are ready to destroy debt but don’t exactly know how to go about it.

Here are some things you’ll learn:

  • Learn how to identify and stop money leaks that are hindering your ability to pay off debt
  • Learn three quick ways to squeeze more money from your budget to beef up your debt payments
  • I’ll teach you the top three things that have allowed me to:
    • Stay out of the “yo-yo effect”. This is when you lower your balances but turn around and run them right back up!
    • Smash through my financial goals
    • Easily turn making debt payments into an unconscious habit

Click to learn more/sign-up!

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