A big part of being financially healthy is saving money. When determining your savings plans one of the first things you have to decide is where you will store your money.
A high yield online savings account is a good option when it comes to choosing where you will save your money. They allow you to save money while making a little extra money at the same time.
Let’s review some of the best high yield savings accounts in 2021.
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What is a High Yield Savings Account?
It’s pretty simple, a high yield savings account is a savings account that offers a slightly higher variable interest rate than at typical banks. High yield savings accounts are a flexible and easy way to earn interest while saving money.
What is APY?
As I go through my list, you’re going to hear me use the term APY. APY stands for Annual Percentage Yield.
Annual percentage yield (APY) is a percentage that reflects the amount of money, or interest, you earn on a bank account over one year. The higher it is, the faster your money grows.
APY includes compound interest. Compound interest is the interest earned on both the money you put into the account and the interest you receive overtime.
How to Choose A High Yield Savings Account
The criteria you should look for when choosing a high yield savings account include:
- interest rate
- minimum deposit
- monthly fees
- FDIC Insured
- ease of accessing your money
Varo Money
Interest Rate: 0.2% to 3% APY
Minimum Deposit: $0
Monthly Fees: $0
Benefits:
- No Fees
- No minimum balance to open
- FDIC Insured
- Automatic savings tools
- Save Your Pay – a tool that automatically deposits a percentage of what you earn into your Varo Savings Account.
- Save Your Change – When you make a purchase with your Varo bank account, they will round up to the nearest dollar on eligible transactions and transfer the change from your Varo Bank Account to your Varo Savings Account
Things to note:
- You have to open a Varo bank account to get the savings account
- Your initial APY with Varo is 0.20%, and then earn up to 3.00% APY if you meet specific requirements each month
- Make at least five qualifying Varo Bank Visa Debit Card purchases
- Receive qualifying total direct deposits of $1,000 or more
- Do not exceed a daily savings balance of $5,000
Click Here to visit Varo Bank and get up to date detailed information.
Vio Bank
Interest Rate: 0.57%
Minimum Deposit: $100
Monthly Fees: $0
Benefits:
- No monthly fees
- FDIC Insured
- One of the best APYs for high yield savings accounts
Things to Note:
- Vio charges a $10 excessive transaction fee for any transactions over 6 per month
- Vio charges $5 per month if you want paper statements
Click Here to visit Vio Bank and get up to date detailed information.
Ally Bank
Interest Rate: 0.50%
Minimum Deposit: $0
Monthly Fees: $0
Benefits:
- No monthly maintenance Fees
- No minimum balance to open
- FDIC Insured
- Set savings goals and use buckets to organize your money and visualize what you’re saving for
- Offers automated savings options called Boosters.
- Recurring transfers – move money into your savings on a schedule
- Roundups – they track your Ally Interest Checking accounts for transactions that they can round up to the nearest dollar. When you accrue at least $5 in round-ups, they transfer it to your savings.
- Surprise Savings – They analyze your linked checking accounts for safe-to-save money, then transfer it to your savings so you don’t have to.
Click Here to visit Ally Bank and get up to date detailed information.
Capital One
Interest Rate: 0.40%
Minimum Deposit: $0
Monthly Fees: $0
Benefits:
- No Fees
- No minimum balance to open
- FDIC Insured
- Digital Savings tools
Click Here to visit Capital One and get up to date detailed information.
Discover
Interest Rate: 0.40%
Minimum Deposit: $0
Monthly Fees: $0
Benefits:
- No Fees
- No minimum balance to open
- FDIC Insured
- One of the best overall banks
- Comprehensive mobile banking app
Click Here to visit Discover and get up to date detailed information.
That is my list of the top 5 High Yield Savings Accounts 2021. APYs can change so you should check each bank website for the most current information.
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