Over the last few years, digital banking has gained much momentum owing to the factors such as convenience, low charges, and good returns. This has made it important to discern which of the digital accounts offer the best returns as more people shift from the conventional banking system.
The following article is an attempt to identify the most popular digital accounts based in the USA that provide reasonable interest rates on savings alongside other unique characteristics.
High-Yield Savings Accounts
HYSA stands for high yield savings accounts and are quite popular among consumers who are on the lookout for ways to make their money work harder for them without having to lock it away in fixed-term savings products.
These accounts usually provide interest rate that is much higher than the normal savings account rates, thus making it a preferred choice for those with an intention of growing their savings without much exposure to risk.
Ally Bank
Ally Bank is always among the top contenders for the best high yield savings account. It has a convenient mobile application and does not charge any monthly fees, which means that Ally offers an APY and is usually among the leaders in the market.
Furthermore, Ally’s savings account has no minimum balance thereby allowing many customers to open the account. This is backed up by the banks’ efficient websites and a top tier customer service.
Discover Bank
The following is a list of the top contenders in the HYSA category; Discover Bank. Discover is famous for having no fees and provides a high yield that often ranks the account among the best for savers.
Similar to Ally, Discover does not have a minimum balance which means that even people with a small amount of money saved can get better interest rates. The bank also provides additional services like mobile check deposit, and automatic savings plans to easily expand the users savings.
American Express National Bank
Another company which is mainly associated with credit cards is American Express and it also provides a high yield savings account. Amex National Bank savings account also has no monthly fees and offers a decent APY for a savings account.
The bank’s good customer relations and stability is a plus on the bank and any one in need of better returns on their savings balances would be wise to consider the bank.
Certificates of Deposit (CDs)
Another type of investment that has attracted many people to earn higher returns on their savings is the Certificates of Deposits, CDs. CDs need the account holder to freeze his/her money for a certain period, but the interest rates are usually higher than those of the regular saving accounts. Some of the digital banks have very attractive CD rates where you can add to your savings greatly.
Marcus by Goldman Sachs
Marcus which is the consumer banking division of Goldman Sachs has some of the best CD rates in the digital banking industry. Marcus is another option that offers a number of terms with CD options and no fees to worry about. The bank offers a simple way of opening and managing CDs and it is considered as a reliable institution for savers.
Synchrony Bank
Another best high-yield CD provider is the Synchrony Bank. Synchrony is known for its compelling interest rates and it has various CDs for different terms to meet the clients’ needs.
The bank also permits customers to operate their accounts online hence making it suitable for those who do not want to visit a bank physically. Synchrony pays high rates and offers flexible terms; thus, it might be a great option for those who would like to invest their funds with a certain expected yield.
Barclays Bank
Barclays Bank has good CD rates whereby the bank does not have any minimum balance that has to be maintained, thus making the bank suitable for everyone. The bank has numerous terms of its CDs that help the consumer to select the most appropriate one for their savings plan.
Money Market Accounts
Money Market Accounts or MMA is a combination of the saver’s account and the checking account that offers higher interest rates and limited check writing and debit card usage. These accounts are suitable for the people who would like to get high yields and at the same time sometimes need to use the money.
Capital One 360
Capital One 360 is an excellent option for the money market account with a quite high APY and no fees per month. It has check writing authority and offers a debit card, which makes this account suitable for savers.
The large number of ATMs of Capital One and well-developed mobile application allows customers to easily withdraw money and control their accounts. Based on the interest rates of return and account accessibility, Capital One 360 is an ideal money market account.
TIAA Bank
TIAA Bank is a definite choice for its money market account with high interest rates and great customer service. The account has a decent APY and provides check writing facility and a debit card.
TIAA Bank also has a rate guarantee for the first year to give new customers a good rate of return. This is a recommendation because of the bank’s commitment to customer satisfaction and the high interest rates of the money market account.
Sallie Mae Bank
Sallie Mae, the powerful student loan provider company also provide a high rate money market account. Sallie Mae offers money market account that has a high APY and no monthly maintenance fees making it suitable for saving.
It also has check writing service and debit card for the account holder to use as and when he or she requires the cash. Sallie Mae is also ideal for money market accounts as it has high interest rates and easy to use website.
Conclusion
The use of digital banking is ever on the rise and it has proved to be more efficient than the conventional means of banking as it offers higher returns to the customers. Savings accounts, CD, and money market accounts offered by digital banks offer great yields to the saver.
Thus, individuals can select the right account and get more benefits such as high interest rates, low charges, and fast and convenient ways of accessing their money through electronic gadgets.