While all of the traditional, brick and mortar banks do have an online presence these days, they don’t operate entirely online and still do a lot of business at their chain locations across the country. If you want to start saving your money, the best option right now is to look into the top online savings accounts. Banks that operate mostly or entirely online can afford to offer a higher APY. This is because their overhead is lower.
On average, online savings accounts provide customers with rates that are around 1.47% higher than the rates offered by most of the traditional banks right now in 2020. With higher rates, you’ll end up saving on the overall costs associated with the account, as there are little to no fees to worry about. Online banks are also better at providing round-the-clock 24/7 customer support and offer excellent chat features.
Another benefit is that they are free to set up. While most people put all of their money into one savings account and let it sit there accumulating interest, some savvy people put money in several of the top online savings accounts as a strategy. Since the interest rates can change frequently, taking advantage of multiple APYs from multiple banks can either be a smart move or a complicated one. It’s up to you if you’re confident enough to go through with the strategy.
When choosing a savings account, just make sure the online bank doesn’t charge any fees for opening or maintaining an account. You shouldn’t have to pay anything just to have an account. The initial deposit should be enough, and the bank should be the one paying you the interest for allowing your money to stay in an account with them.
Top Online Savings Accounts Rates
What are some of the top online savings accounts right now? What are the current APYs?
• Marcus by Goldman Sachs: 1.70% APY
• First Foundation Bank: 1.75% APY
• Live Oak Bank Online: 1.75%
• VIo Bank: 1.75%
• Discover Online Savings: 1.50%
• Citizens Access: 1.70%
• American Express Online Savings: 1.60% APY
• CIT Bank; 1.55% – 1.70% depending on which type of account you choose
Some of these online banks have smaller minimum deposit balances than others.
Of all of the top online savings accounts, CIT Bank may very well be the one you’ll want to check into first. There are a few different types of savings accounts you can choose from depending on goals. Plus, it’s a highly rated organization that offers great customer support and charges no unnecessary fees.