This post may contain affiliate links. For more information please read the disclaimer.
Ohhhh snaps, it’s time for me to get to the good stuff. Even though I bastardized savings accounts not-so-long-ago, I have mentioned that they can be valuable if used right. My biggest gripe is that ‘big bank’ savings accounts are almost always worthless. But now I want to go over the top savings accounts that provide at least a 50x more APY compared to big banks.
I want to make it clear, you will often get the most value with savings accounts of over $10K. That said, you don’t need to have a massive savings accounts to take advantage of some of these savings accounts.
At the end of the day, if you can get a better interest rate that is 50x-150x more than the big banks, you should consider jumping on it.
Looking to make some extra dough to save? Check out how I paid off over $38K in student loans in 17 months. You might not have that much debt, but maybe there is a gem that you might be overlooking.
These Savings Accounts Often Provide Awesome Benefits
Before I jump into the top savings accounts. I want to point out that even if you don’t have $10K lying around, you can still save BIG as these banks/credit unions often offer these advantages.
- No Minimum Balance
- Flexible ATM Access
- Deposit Checks Via App instead of Banks
- Lesser Fees
1. Alliant Credit Union: My Personal Favorite – 1.60% APY, ATM Access, plus incentive.
First of all, this is hands down my favorite institution. Unlike banks (big or small), credit unions get a much better reputation than banks as they are owned by their members. This means that they almost always have higher interest rates compared to banks.
Even better, is that even though you need a $5 minimum balance, they pay it for you! Not only do they have 24/7 support, I’ve personally used them and I love their customer service. There might be other banks with a higher interest rate, but these guys are my go-to. LOVE THEM!
Bonus: You don’t need a big balance to collect interest. Your minimum is $100 to start collecting interest. Now that is nifty.
2. Digital Federal Credit Union: Best APY For Small Accounts – 5.12% APY, ATM Access, Worldwide Access.
DCU is an interesting credit union where they provide a game-changing 5.12% APY for their savings account. They provide a wide variety of perks that are similar to Alliant, but they want to encourage smaller accounts to start banking with them.
There is nothing wrong with that. There is one caveat though, the 5.12% APY only applies for the first $1,000. Even so, for those starting out, this is kind of a big deal. That’s $50 in interest earned if you have $1K in that account for the year. That’s 500x more than say…Chase Bank (0.01% APY for the same amount).
Anything past $1,000 will have a rate of 0.25%, which will create a blended rate. For example, a balance of $1,500.00 would earn a blended rate of 3.50% APY. Still pretty good.
3. Ally Bank: The “Go-To” Online Bank – 1.6% APY, No Minimums, Easy To Use
I’m sure some of you have heard of Ally bank. They are a pretty solid online bank. They have no physical locations, so while that could be a bummer for some, they make up for it with their technology.
You can deposit checks via the app or make seamless transfers online. Bonus: You can also set up a free checking account alongside with the savings account. There are no minimums required for either account. Just set up your account and your good to go!
4. Mutual of Omaha Bank: Best of Both Worlds – 1.00% APY, Multiple Branches, Free ATM Access
Even though Mutual of Omaha Bank has a 1.00% APY for their Money Market Account ($1K minimum to take advantage), they are pretty well rounded IMO. This is the bank that I frequently use in my day-to-day.
Mutual of Omaha has a fairly simple to use online interface. They also have many branches for those that want to still have a “bank feel”. I love their customer service and with easy & free ATM access in their massive network, it is the best of both worlds for me.
5. Barclays: High Rate Online Account – 1.65% APY, No Minimums, Simple to Use
I get that some of the banks you might have heard of came from credit card branding. That said, despite the bad credit card reputation, these banks can provide some awesome perks.
Barclays is no exception, they provide a steller savings account experience. With a 1.65% APY, this is one of the leading high-rate low-minimum savings accounts. There is no minimum balance to open and no monthly fees. They are an accredited bank so your deposits are FDIC insured up to the legal limit. Their online experience/app is pretty easy to use as well.
6. American Express National Bank: Sneaky Underrated w/ Great Value – 1.60% APY, No Minimums, No Fees
This is another bank where you might say, “Wait, American Express has a bank?”. Yup. While the APY is slightly less than Barclays, it still is a 1.60% APY (remember, big banks have 0.01% APY) so it’s pretty good in comparison.
There are no monthly fees and you don’t need a minimum deposit. Although, you will need to fund your account within 60 days of applying.
Ideal for: Those with some money to save and don’t want your money stuck in a CD.
The Current State Of Top Savings Accounts
Believe it or not, with the economy being as strong as it is right now (2018), I’m kind of curious to see how high these savings account will go.
Back in the 90’s they were easily in the 5-6% range. It wasn’t too long ago these very same banks mentioned in the article were in the 0.9% range. Will they ever get to the 5-6% range? If they do, then there is a lot of free money that will be up for grabs.
National Average vs Big Banks Average
You will probably see that the “National Bank Average” for savings accounts is 0.07% APY. That’s including all of the FDIC banks that exist, even the ones mentioned. But IMO that is misleading.
Big banks such as Chase, Wells Fargo, and Bank of America provide a lot of simplicity and convenience compared to other banks. But the problem is that these banks have a 0.01% APY for the basic savings accounts.
The banks mentioned in this article provide at least a 100x better rate than big banks.
I recommend that you look at your savings account APY and compare that to the ones in this articles. If you are at a big bank, I recommend maximizing your money if it makes sense.
- Increase Your Salary in 6 Hours: Resume Tips & Tricks
- The Ultimate Class Action Settlement Guide: Step-By-Step Tips
- Pressable vs WP Engine Review For Small Businesses
- Top Value Balance Transfer Credit Cards: $0 Fees & 0% APR