There are a number of banks that will pay 0.5% or more for your savings. Just be aware that generally means no checking.
With banks offering an average interest rate of only 0.06 % on their savings accounts (according to Bankrate), you may wonder how to get a decent return on cash that’s insured.
The good news is that there are a number of banks that will pay 0.5% or more for your savings. Just be aware that these are generally online accounts with no checks. When you want to withdraw cash, you can generally transfer it to a linked account, have the bank send you a check or do a wire transfer. Some accounts also have debit cards.
You can generally make deposits with transfers from linked accounts, with a check, with a direct deposit from your employer or with a wire transfer.
Here’s a partial list of banks that offer rates of 0.5% or more, as compiled by Bankrate.com.
· Marcus (Goldman Sachs): 0.5%
· Ally Bank: 0.5%
· Discover Bank: 0.5%
· American Express National Bank: 0.5%
· Synchrony: 0.5%
· Pentagon Federal Credit Union: 0.55%
· BrioDirect: 0.55%
· Vio Bank: 0.56%
· Comenity Direct: 0.6%
· Quorum: 0.6%
· Lending Club: 0.65%
Keep in mind that some of the accounts have minimums. Money that goes into savings accounts should be money that you might need quickly and unexpectedly. This is where your emergency savings can go. If it’s money that you don’t need for a while, you can put it somewhere where potential returns are greater–stocks, for example.
But for the short term, you’re getting a decent payback, considering that money market funds offer returns as low as 0.01% now.
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