I'm not sure how many people think about what happens to their money while it's in a bank account. Most people I believe leave their money in a checking account most of which gives you no interest and even savings accounts these days do not offer much.
Ideally, if you have excess amounts of money you don't plan on using for a large purchase or any other short term plans, you want to invest that. But these are some things to take into consideration when your money is just sitting in a bank account.
This is not to be taken as legal, financial, or professional advice. If you do need help seek out the assistance of a trained professional, who is qualified to do so.
The following list will be bank accounts from non-traditional banks, with no fees for banking and no minimum to open the accounts. So that I don't need to repeat this, all banks here are FDIC insured.
My top card and my favorite is Varo.
I have another blog going over the pros and cons of Varo. This blog is to focus on the savings account. Varo is the only bank I've found so far that offers an interest rate with an APY of 2.8%. To qualify Varo as some stipulations so check out the website for more information.
This year so far I've gotten over $100 in interest, of course I wish it was more, however it is the highest for any account I've seen.
With Varo there is a maximum of $10,000, meaning in that account to qualify for the highest interest rate possible you can have no more than $10,000 in that account and anything more than that will get an interest rate of 0.81%. Which is still pretty good.
What I do is keep the maximum amount in this account and use another account for any remaining money.
So say you have the maximum amount of 10k, for the entire year, you can expect to get $280 for that year, which would be around $23 a month. This is just extra money and it feels super good to get.
The great part is that the interest rate hasn't changed all year, even as most banks have fluctuating interest rates due to the current economic impact of Covid 19.
Your money is also insured by the FDIC. Check out the full details and other requirements to qualify here--> Varo.
After I put my maximum amount into Varo, then I'm taking the rest over to Chime. Chime offers an APY of 0.5%, previously 1%. No minimums or maximums. Of course no fees. This bank like all the other banks here are FDIC insured but I figure I'll just make it clear. So ideally you can leave the rest of your money here. However not all banks are for everyone so I give you more options below. To see if Chime will work for you, get more details here--> Chime.
Marcus offers an APY of 0.50%. Surprisingly when I had originally started looking for high yield accounts this was one of the first accounts I had found and was using. I opened this account in 2018 and the interest rate was over 1% which I was amazed by. After I found Varo, I transferred my money over to there, because it makes more sense for what I want. Check out the other features and benefits here.--> Marcus.
Credit Karma offers a 0.40% APY. You might know Credit Karma as that website you can get free credit reports, which is true, however they also have a savings account and checking account coming soon. I haven't saved much with Credit Karma, every month they have a competition that you're entered into if you deposit a dollar. So I deposit a dollar every now and again. Why not? The interest rate is just not high enough for me to make this a primary way for me to save but at least you have the option.
Sofi offers a APY of 0.25%, I opened their account to take advantage of a bonus, I got $150. Love that. They have investment accounts and IRA's and gives you the option to link all your none SOFI accounts so you can easily track how much you spend and save, across all accounts you own. I actually really love that feature, this way I don't have to open all my accounts and then calculate or estimate my total, Sofi gives you that information.
Capital One offers an APY of 0.30% so if you prefer banking with a brick and mortar bank this could be an option for you. Their accounts are online accounts however you're still able to go directly to a bank if you must.