Online Savings Accounts with 1% APY or Higher
- 1% APY
In this low rate environment, you can still find high yield at online savings accounts offered by CIT Bank, Barclay Bank, EverBank and Sallie Mae Bank. With current savings account interest rate at 1.0% or higher and no or low minimum account balance requirement, these bank accounts will let your hard earned money grow faster.
A couple of weeks ago, I wrote about the recent rate increase at Ally Bank which brought the yield of Ally Bank Online Savings Account from 0.89% to 0.95% APY. In that post, I also mentioned that these days, accounts with 1% APY or higher are hard to come by in this low-rate environment that we have been living in since 2008 and it could become even more difficult to find high yield savings products after the QE3 decision from the Fed last week. However from what I noticed, things seem to move in the opposite direction with a few other online banks increased the rates of their savings accounts in addition to Ally Bank. Since the benchmark short-term rate has been at the current level for more than four years, the moves at multiple banks can only be explained by competition and that’s a good news for savers.
If you are shopping for a savings account with better yields than the banks you are currently using, here a few options for your to consider, some even have rates of 1% or higher.
CIT Bank Savings Account 1.0% APY
I only came to know this bank recently, but the rates it offers are pretty attractive, especially if you maintain a high balance. For example, if you are able to keep at least $25,000 or more in your account on a daily basis, then you can enjoy 1.0% APY of the CIT High Yield Savings Account and a bunch of other benefits including free incoming and outgoing wire transfers, no account closure fee, no mail check fee, and no monthly account maintenance fee. If, on the other hand, you can’t come up with the high balance required for the Preferred Rate, you will settle at a lower rate of 0.90%, which is still quite competitive, but not as good as what you can get from other banks that I will show you later.
CIT Bank Savings Account requires only $100 minimum to open an account and there’s no account maintenance fee. For the regular savings account (balance below $25,000), the outgoing wire transfer fee is not waived, but other benefits remain the same as the High Yield Savings Account. CIT Bank’s ABA routing number is 124084834
Barclay Online Savings Account 1.0% APY
Again this is a new bank to me and again it has a very good rate. The current rate of Barclay Online Savings Account is 1.0% APY. Even the rate seems lower than what is offered at CIT Bank, the rate applies to all deposit at Barclay, regardless the account balance. So, if you don’t have $25,000 in your account to go for the Preferred Rate at CIT, you will be better off by opening a Barclay Online Savings Account that requires no minimum balance to earn the 1.0% APY and has no other hidden fees (monthly fee or annual fee). There’s no minimum to open an account and, from the website, account opening process seems to be quite straightforward.
Barclay Online Banking routing/ABA number is 031101321. Barclay allows you to make remote deposits with your smartphone, so that’s a plus.
EverBank Money Market Account 1.25% Bonus APY
Well, technically, this is different from the above two because EverBank Money Market Account 1.25% APY is a bonus rate that’s good for the first 6 months (EverBank used to offer only 3 months for the bonus rate, so this is an improvement). The bonus rate only applies to account balance up to $50,000 and for balance below $50,000 the first APY is 1.01%, which is slightly higher than what you could get from Barclay. The EverBank Money Market Account requires a minimum of $1,500 to open an account and avoid monthly fee of $8.95.
In addition to the Money Market Account, EverBank also has an interest checking account that offers the same 6-month 1.25% APY. EverBank’s ABA/Routing number is 063000225.
Sallie Mae Bank Money Market Account 1.05% APY
Finally, the Sallie Mae Money Market Account. As I mentioned in the Ally Bank article early, the reason I left Sallie Mae and went back to Ally Bank is the rate at Sallie Mae was lower. However, if I had a Sallie Mae Money Market Account instead of Savings Account, I could have stayed because right now Sallie Mae Money Market Account has a 1.05% APY and that’s enough for me to keep banking with them. The Money Market Account at Sallie Mae doesn’t have minimum balance requirement and it charges no monthly fee either. Plus, you also have the ability to write check and use your smartphone to deposit checks remotely. You can see my previous post about Sallie Mae Savings Account for account opening process and other information. Sallie Mae Bank’s routing/ABA Number is 124385119.
Looking at these four accounts, they are all solid choices if you are looking for a good return for your hard-earned money. At the current rates, the best deal appeals to be the Sallie Mae Money Market Account, which has the highest yield among the banks mentioned here with no minimum deposit requirement and no monthly fee.
Which is your current bank? Are you considering switching?
- 1% APY
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