Build Your Emergency Fund Quickly Through Online High-Yield Savings Account
- Author: Chris Remington
- Posted: 2024-09-01
The $100,000 became a fallback fund that helped them weather the spring stock market downturn and the coronavirus pandemic. That way, the couple did not have to sell their stocks to maintain their low-key lifestyle.
The Adcocks boosted their savings rate by living on one income before retirement. The dual-earning couple was able to save 70% of their monthly income by not eating at traditional restaurants and canceling unnecessary subscriptions.
Finally, the couple kept their checking and savings accounts at separate banks. A portion of their paychecks automatically went to their savings accounts every month.
The couple never missed the money since they never saw it. This, of course, was made possible by a wide range of online savings accounts. Automation can become your best friend for a stable financial future.
The Best High-Yield Savings Accounts
American Express Personal Savings
- Apy: 1.15%
- Minimum Deposit: $0
- Open Account Bonus: none
American Express offers 24/7 customer service support. Account holders are not limited to the six savings account transactions per month. Withdraw funds as much as you like, and there are no account servicing fees. The only drawback is that there is not a mobile app. Only American Express cardholders have access to mobile services.
CIT Bank Savings Builder
- Apy: 1.03%-1.15%
- Minimum Deposit: $100
- Open Account Bonus: none
With CIT bank, your savings account interest will compound daily. To maintain an APY rate of 1.15%, you must automatically deposit $100 into your personal account monthly or keep a minimum balance of $25,000.
Discover Online Savings Account
- Apy: 1.05%
- Minimum Deposit: $0
- Open Account Bonus: none
Discover Bank has a large network of ATMs. Account holders will not encounter any fees while withdrawing funds from personal savings accounts. However, Discover Bank will not reimburse account holders for out-of-network ATM fees. As a bonus, account holders will not have any account fees or account minimums. Customer service is available by phone or chat 24/7.
Marcus High-Yield Savings Account
- Apy: 1.05%
- Minimum Deposit: $0
- Open Account Bonus: none
Marcus is a high-yield savings account by Goldman Sachs. Customer service is available seven days a week, and there are no fees. Enjoy a mobile app that has superb operability.
Ally High-Yield Savings Account
- Apy: 1.10%
- Minimum Deposit: $0
- Open Account Bonus: none
Unlike other major banks, account holders have a limit of six withdrawals per month from their savings account. Nonetheless, account holders will have access to customer support 24/7, and take heart, the interest rate on personal accounts is compounded daily.
People can have multiple accounts: one for an emergency fund and another for a down payment on a house. Meanwhile, enjoy high-yield savings account without maintenance fees or minimum essential balances.
Capital One 360 Performance Savings
- Apy: 1%
- Minimum Deposit: $0
- Open Account Bonus: Earn $100 per every $10,000 bonus with a maximum reward of $500.
Capital One has limited customer service support. You will not have access to a representative 24/7. Take delight in chatting with an online representative.
Vio High-Yield Savings Account
- Apy: 1.35%
- Minimum Deposit: $100
- Open Account Bonus: none
Vio offers one of the most competitive APY for high-yield savings account in the industry. And what is so great about the offer is that you will not have to maintain a minimum balance. Just remember, the APY may fluctuate since it is tied the federal funds rate.
Synchrony High-Yield Savings Account
- Apy: 1.05%
- Minimum Deposit: $0
- Open Account Bonus: none
Get a debit card to access your savings deposits at ATMs. Account holders are responsible for the transaction fees. Users will not have a limit on their withdrawals.
Choosing the Best Savings Account
Bank account deposits are FDIC insured up to $250,000 and up to $1 million in some cases. Unlike the 1990s, you will not find a savings account paying 5% interest. However, you will not have to concern yourself about losing money in the market.
Most traditional savings accounts pay an average of 0.09% interest rate. You will typically find the best high-yield savings accounts online. Most high-yield savings accounts will have a ceiling at around 1.6%. Interest rates may fluctuate during the year based on the economic actions of the Federal Reserve.
If you want to earn additional interest on your life savings, consider investing in CDs, municipal bonds, or the stock market. Just remember, the higher the return, the higher the risk involved for an individual investor.
