Savings

Top Savings Rates Overview for Late 2020: Understanding Online Banks and Credit Unions

There is no need for anybody to keep their money in a low-rate savings or CD account these days. Online banks offer far better products for individuals and families who want to put their money in a safe place. Choosing one of these banks or credit unions will result in you getting top savings rates as well as little to no fees and good customer service.

You won’t have to worry about your money, either. The federal government will fully insure up to $250,000 of your money at the same bank or online credit union via FDIC or NCUA. People put money into these accounts for many reasons. First of all, savings are essential for everyone – you need that reserve just if something unexpected happens. Also, putting money into a savings account is a way to get even more money. Sure, the interest alone won’t make you rich, but every little bit helps, and it can add up quite a bit over time.

Some people want to set money aside with top savings rates because they hope to eventually have enough of it to make a huge purchase or to fund college or retirement. You may have a specific reason to open up a savings account or want a safe place to stash your money. Either way, an online financial institution that has top-notch security and encryption technology is your best bet.

Top Savings Rates With High Yield

How much will you earn with a high-yield savings account? It all depends on which online bank you choose and how much money you want to put in. Other factors include which account tier you select, whether or not you plan on depositing more money into the account in the future, and economic fluctuations.

Your high-yield top savings rates may owe taxes depending on the number of earnings you get back. The institution should provide you with the information you need about the taxing process.

When looking for the best place to your money, you’ll want to consider the high APY – but not make it your #1 priority. Other essential things to look into include customer service, each bank’s reputation or credit union, fees, etc.

Here are some of the current top savings rates right now in late 2020 (they are subject to change at any time):

  • Nationwide My Savings – 0.40% – 0.70% depending on the account type – FDIC-backed
  • Axos Bank – 0.61% – a low minimum requirement – FDIC-backed
  • Citizens Access Online – 0.60% – FDIC – backed
  • Alliant Credit Union – 0.55% – NCUA-backed
  • CIT Bank – 50% – FDIC Insured

There are a few different tiers to choose from CIT Bank. No matter which account type you desire with this bank, you can expect to get some of the top savings rates.

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