The Battle of the Savings Accounts
There are a few banks that pay 20x the interest of most others, but how do they stack up against each other? Continue reading to find out the winner of the battle of the savings accounts
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It's a well-known fact that interest rates on savings accounts are incredibly low. In fact, the average savings account is hovering around 0.10% 1 . That's such a far cry from pre-crisis times, it's shocking.
At rates that low one might ask, "Why even have a savings account? Why don't I just place my hard-earned money under the mattress?" We can't blame you. However, if you did that you'd be leaving money on the table (or under the mattress). There are much better options out there; savings accounts that earn twenty times the average rate of 0.10%.
We've looked high and low to find some of the best accounts. You'd be in great shape if you had any of these accounts, but after some thorough analysis and comparison, one of them stands above the rest. Here they are at a glance:
We were just as taken aback when we first saw these numbers. 4.36% and 4.31%? Why didn't I hear of these accounts before I put my money in [large, untrustworthy bank X]? You might be saying to yourself, "Healthcare Bank is clearly the winner because their APY is slightly higher."
However, you can't jump to a conclusion as there are other important factors to consider when opening a savings account. So we've broken them each down, piece by piece.
Monthly Minimums
Some banks require that you have a minimum in your account in order to avoid a monthly charge. Bank of America, for example, requires that you have $300 in your account. Our winner has nothing of the sort. All of the banks listed are great because they don't require a minimum fee. But considering all factors, one has a slight advantage over the rest.
Winner: Healthcare Bank
Bank Reputation
This might not have been very important to us before the financial crisis, but times have changed. We need to feel safe with where we put our hard-earned money. Each of these banks are backed by the maximum allowable FDIC guarantee of $250,000. This means if the bank defaults, the US Government would repay you every penny you had in the account, up to $250,000. Bank of America, Chase, etc. all have this same insurance.
More than just the FDIC insurance, we need reliability and value from our bank. So here is how the top banks fare in terms of reputation:
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Vio’s savings account offers a yield that’s well above the national average, but it’s lower than what many online banks are offering. All balances earn the same APY, there are no monthly fees and there’s a low minimum deposit requirement of $100.
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Winner: Healthcare Bank
Interest Rate
This one’s easy. Though these rates are well above the national average, only one can be the highest!
Winner: Healthcare Bank
Conclusion
As we said in the beginning, you'd be in great shape if you had any of these accounts. In today's low-interest environment, we can't stress enough how every bit counts - and at 20x the national average, these rates will save you more than just a little bit.
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Winner: Healthcare Bank