Bank Accounts with High-Yield Interest (as of 10/31/2022)
Let's make sure your money is working for you right now. Let's optimize your wallet by finally taking your hard-earned money from the bank account with an awful interest rate into an account that can pay you more.
With little research, you can find accounts that offer competitive rates -- much better than most national brick-and-mortar banks and even regional credit unions -- such as Capital One 360, Ally, etc. We can get even higher rates with more research than those mentioned. I recommend you consider the list of banks below offering high-yield interest accounts that earn a better rate because of their business model.
Unfortunately, all these rates will fluctuate over time. Because of this, we promise to update this list for all our readers every quarter. We have researched all these banks, and all provide FDIC insurance. Another critical factor to note is the financial institution's clear advantage with a proven track record of offering high-interest rates. Some banks want to earn your business with the highest APY rate but then lower the rate soon after, otherwise known as the 'bait-and-switch' rate tactic. Banks like Ally, Dollar Savings Direct, American Express, and others have offered competitive interest rates for many years. Because of this, they will remain our favorite banks that offer high-yield accounts. Their rates will fluctuate but will likely be in the higher rate tiers than other institutions.
Again, these are all checking or high-yield saving accounts and are FDIC-insured up to $250,000 (See www.FDIC.gov for details). There are no fees, minimums, or problematic requirements to meet. Whatever your balance, you won't get charged a fee. With no minimum balance, no deposit is too small.
At Financial Optimist, we recommend that you DO NOT close your "primary" bank account. Even though your primary bank account is earning you little interest, we recommend that you consider having these high-yield accounts complement your savings strategy. By linking your "primary" bank with the institution you choose, you can fund your accounts via ACH, a transfer that can take 1-3 business days to complete. More importantly, you can easily manage your accounts anytime online.
Here is the CURRENT (as of 10/31/2022) best options available, rated highest to lowest:
1. Dollar Savings Direct at 3.50% APY
PRO: Dollar Savings Direct allows you to re-title your accounts as Trust after you have established funds. This is great for families that have a living revocable trust.
CON: There is a 60-day hold for setting up a second external bank link. Make sure that the account you first link is your primary banking relationship.
2. Upgrade at 3.50% APY
CON: $1,000 minimum deposit required at open to get the 3.50% rate. Also, because they are a fintech, Upgrade doesn’t have quite the track record as many other on this list. You can read more about this institution on a recent CNBC article.
3. CFG Bank at 3.30% APY
4. Lending Club at 3.12% APY
5. Capital One at 3.00% APY
PRO: How about an additional $1,000 just to establish account? Not only is the interest rate of this account at an all time high, but as an additional perk, they are also offering a one-time bonus of up to $1,000, broken up as follows:
DEPOSIT EARN
$10,000+ $100
$50,000+ $500
$100,000+ $1,000
Click this link and read the terms/conditions for yourself.
In short, you open the account with the link above. To meet the bonus requirement, you must deposit at least $10,000 within 15 days of establishing the account and keep the funds in that account for 90 days. The bonus will then be credited two months later.
For example, if you open an account today (10/31/2022), you must deposit funds by 11/15/2022. Once the funds are parked, you must keep them there for 90 days, or 02/15/2023, to be safe. You will receive the bonus by 04/15/2023.
6. Marcus at 2.50% APY
PRO: Known to have a great proven track record by always increasing rates and beating out it’s main competitors (Ally, American Express, and Discover).
6. Ally Bank at 2.35% APY
PRO: The OG. The bank account that really had great interest rates when everyone else was at .01% … yes, I am calling you out Chase, Wells Fargo, Bank of America, etc.
7. American Express Bank at 2.35% APY
To summarize, assuming that you pick the lowest-earning APY rate from the list above (2.35% APY) compared to what you are likely earning from the BIG BANK (0.01% APY), you will be able to make $230+ more per year for every $10,000 in your established savings account. Of course, this adds up with the more cash you keep at hand.
If you have $100,000, you will earn $2,350 per year with the lowest-earning rate from the list above.
If you have the same $100,000 at your BIG BANK, likely earning 0.01% APY, you will make a measly $10 per year.
You can put more money back in your pocket by taking these simple steps. Want to earn more? You can! Outside of the high-yield savings accounts, the other best option will be the Treasury Bills/Notes. Rates below:
Treasury Bills/Notes on 10/28/2022:
1 month = 3.75%
2 month = 3.95%
3 month = 4.18%
4 month = 4.30%
6 month = 4.51%
1 year = 4.55%
2 year = 4.41%
3 year = 4.38%
5 year = 4.19%
