Best High-Interest Savings Accounts to Keep Emergency Fund In

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As an adult in the professional workforce, it’s always a good idea to have an emergency fund. Even if you’re living paycheque to paycheque, you might want to set aside as much as you can to start building an emergency fund. Of course, if you’re earning a comfortable salary, the greater your savings can be. A savings account is a great place to park your emergency fund in. There may be several plans that different banks offer. Some may offer a higher APY rate while requiring a greater minimum opening deposit. Others may have a $0 opening deposit requirement but also offer a lower APY rate. The following are some options you could consider:

PurePoint Financial Savings Account

APY: 1.90 percent

Minimum Opening Deposit: $10,000

PurePoint Financial has one of the higher minimum opening requirements. While you can have a deposit below $10,000 in your account, the interest rate will come down to 0.25 percent. So if you do have an amount of $10,000-plus which you would like to park away as an emergency fund, this savings account option provides a great savings rate. Ideally, you would want to maintain your minimum balance even though you won’t be charged a fee for not adhering to the minimum account balance limit.

A division of Mitsubishi UFJ Financial Group, PurePoint Financial is one of the largest financial groups in the world. It offers competitive rates throughout the year without any monthly fees. There are also options to conduct your banking online or through the comfort of your mobile phone. It’s a great option if you can keep the minimum balance in your account intact. If at some point you think you must withdraw beyond the $10,000 threshold, consider moving your funds elsewhere.

Marcus by Goldman Sachs

APY: 1.85 percent

Minimum Opening Deposit: $0

Marcus by Goldman Sachs offers a highly competitive 1.85 percent APY and what’s even better is that you don’t require any minimum balance. To earn the annual percentage yield, you have to have a minimum balance of just $1. Marcus is an online savings account and is a branch of Goldman Sachs. It charges no fees, has fixed-rate loans and credit and debit tools but you need to have a minimum balance of $1 to earn the APY rate. The service, however, does not offer a checking account or access to an ATM network. There also is no mobile application for this service. It’s simply for you to park your emergency fund and not touch it till you absolutely must make a withdrawal. The bank’s savings account also requires another bank account attached in order to make deposits and withdrawals.

Salem Five Direct eOne Savings

APY: 2.05 percent

Minimum Opening Deposit: $100

Salem Five Direct offers an impressive APY of 2.05 percent, one of the highest on this list. What’s more, you can open an online savings account within minutes for as little as $100 and then not stress about any minimum balance once your account has been opened. The bank also charges no monthly fees. The bank offers an easy-to-use mobile banking app and free online services. You can even do transfers to and from external bank accounts to move your money around easily.

The bank also offers FDIC and DIF insurance and you can move money in and out whenever you want without any binding commitment. You can also make deposits using your mobile app. This is a great option for those with a balance below $5000.

360 Savings by Capital One®

APY: 1.00 percent

Minimum Opening Deposit: $0

A fee-free online savings account by Capital One, 360 Savings offers a decent APY of 1%. Since it requires no minimum balance, you can save at your own rate and keep adding balance to your savings account while your interest keeps multiplying. You can even set up a ‘Savings Goal’ for your account to track your progress. For example, you can set up a plan to save $1,500 in time for your holiday next fall. The Savings Goal on your account will help you keep track of how much money you need to put in every week or every month to reach your goal. An integrated mobile app will also send you periodic reminders and encourage you to stay on track. The mobile app also allows you to make deposits from anywhere in the world with just a click of a button. You can even opt for an automatic savings plan with automatic transfers to keep your savings growing.

The bank also allows you to open multiple accounts and label them “Vacations”, “Car” etc. The account requires no monthly fee either and you earn an interest just for keeping some money in your account. This is a great option for someone who wishes to organize their savings according to the specific goals they’re saving for.

Popular Direct Plus Savings Account

APY: 2.00 percent

Minimum Opening Deposit: $5,000

At $5,000, Popular Direct Plus has one of the higher minimum opening requirements but it offers an impressive APY of 2.00 percent. The bank also offers daily compounding of interest. However, note that if your balance goes below $500 during the statement period, the bank charges a monthly service fee of $4 per month. An online account, you can make transfers to your account from anywhere in the world using the integrated mobile app. The account is also FDIC insured. As per Federal Reserve Board Regulation, however, you cannot make more than six deposits and withdrawals in a month.

You can also make use of the savings calculator to assess how long you will take to reach your savings goal, based on how much you can contribute every month and the bank’s rates.

Dollar Savings Direct

APY: 1.80 percent

Minimum Opening Deposit: $1

Dollar Savings Account from Dollar Savings Direct has an impressive APY rate of 1.80 percent and requires a minimum deposit of just $1 to open. There are no monthly fees to keep your account open either. The bank is FDIC insured, so you can rest assured that your money is safe.

You also don’t have to change your checking account. The Dollar Saving Account will be linked to your current checking account, irrespective of which bank it is at. You can use this checking account to make all your future withdrawals and deposits. You can access your account 24/7 by logging onto the website. You can also make a scheduled transfer to your account every month by opting for the recurring transfer option instead of the one-time transfer. The bank will automatically make a deposit from your external checking account every month. Of course, you get to decide how much the amount should be and if you want to stop the transfers.

While the website for the service is not very promising, the financial service is owned by Emigrant Bank, a traditional savings bank which dates back to 1850.

Synchrony High Yield Savings

APY: 1.85 percent

Minimum Opening Deposit: $0

Synchrony High Yield Savings offers not only an impressive APY rate of 1.85 percent but also has no minimum balance requirement or monthly fee. The account also offers a variety of different perks, like convenient access to your account through an ATM card and discounts on hotels and car rentals. You can also make withdrawals 24/7 via your ATM card, the phone or online. But as is the case with most savings accounts, you can only make six withdrawals and deposits in a month, though withdrawals and/or transfers from ATMs don’t count against the six-transaction limit. While there is no fee if a customer crosses the six-transaction limit, the bank can use its discretion to close the account for misuse.

It’s a great choice for someone who wants to park a minimum emergency fund and could use a strong interest. There are, however, no bank branches so all queries will be addressed over the phone or via their website and mobile app. Since the bank is a member of the FDIC, all deposit accounts are insured up to $250,000 per ownership category.

Final Thoughts

The seven names mentioned above offer some of the best and most competitive interest and APY rates in the market. It is a great way to park your emergency fund and not worry about sudden future expenses. You can keep increasing your savings as time goes, either through one-time-deposits or through recurring deposits. But as mentioned in the introduction, these APY rates are subject to change at any time, depending on market conditions. Nevertheless, a savings account is perhaps the best way to keep your money safe and secure for a rainy day. Many of these banks offer online savings accounts. This means that since these banks don’t have to look after the expense of maintenance, they can offer interest and APY rates 15 times higher than traditional banking. So go ahead and find a savings plan that works for you!

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