Putting Cash in the Bank? Here's Where You'll Get the Most Out of Your Money

by Meredith Morris

Financial Frequency. mySavings

July 31, 2019 .3 min read

Looking for a safe place to park some additional money while also building off of high-yield savings rates? The best way to do that today is through online banks instead of the traditional physical branch. 

One of the biggest reasons online banks are more likely to offer you a higher interest rate is due to the fact that they can eliminate the cost/expense of maintaining a physical branch. 

Today, you are very likely to see offerings as high as 2% APY or higher, which is much higher than the national average of 0.10%. While this may not initially sound like a lot, believe me, it can make a real difference.

Another great reason to start saving via an online high-yield savings account is for the fact that you typically can only access your funds via transfer. This makes it harder for you to withdraw your funds. So that unplanned shopping spree you were about to go on? Forget it. Forget using these funds for impulsive purchases that are more than likely to leave you with buyers remorse. 

With that being said, we have compiled a list of FDIC approved online banking accounts that offer the best high-yield savings accounts to date. 

Citizen's Access - This one gets the Nerd Wallet stamp of approval and has zero fees, offers a 2.20% APY but calls for a $5,000 minimum deposit. Of the list, this bank is probably the most recognized due to their marketing approach and the fact that they also have physical branches. But while they have physical branches, keep in mind that if you opt to open a high-yield savings account with them, you will only be able to withdraw your funds online. 

CIT Bank - This bank requires the lowest minimum to start, asking for $100. However, if you start at $100, it does not qualify to earn in the higher APY tier. But if make an additional deposit of $100 or more during the first evaluation period, your account will qualify for the higher tier for the evaluation period following the introductory offer. This bank offers a 2.30% APY and has zero fees involved. 

CIBC U.S - Of all the online accounts we found, CIBC U.S holds the best offer with an interest rate of 2.39% APY, no monthly maintenance fees and requires a minimum of $1,000 to start. 

Popular Direct - This bank offers the highest interest we've seen of 2.55% APY and calls for a $5,000 minimum to start. However, there are fees involved and you cannot make withdrawals for 60 days after accounts have been opened. 

FNBO Direct - If you just want start saving but don't have much to start, this bank may be a great option for you. FNBO offers a 2.10% APY and has no balance minimums and no monthly fees. Simply put, you can start with as little as $1 and still save.

Alliant Credit Union - With a 2.10% APY, you can start saving with as little as $100. You can open multiple accounts and nickname each account to you can remind yourself what you're saving for. You also can access of 80,000 ATMs to withdraw your funds when needed. 

Choosing to open an online high-yield savings account is a great way to start saving. This especially hold true for people who need obstacles in their way to prevent them from touching their money. With an online high-yield savings account, accessing funds are typically much more difficult, making it harder to impulse spend. These types of accounts, however, are still safe, reliable and allow you to grow your money even if you’re not adding to your base frequently. So, what’s your excuse for not getting the most out of your money?