Online Savings Account with Highest Interest Rate and How to Choose One

Conventional banks are no longer attractive in today’s fast-paced world. Instead, people are migrating to online savings accounts that promise not only convenience but also quick money growth. Simply find an online savings account with highest interest rate and earn more cash.

The increasing popularity of online savings accounts creates a lucrative field for financial institutions to compete with each other by offering ridiculously high interest rates. If you don’t want to end up with a scam account, take a look at trusted high-yield online savings accounts below.

High-Yield Online Savings Account with High Interests

Many profitable accounts promise impressively high interest rates of more than 5%, which is equal to 12 times the national average. From Western Alliance Bank to Valley Direct, these savings accounts are ideal for mobile banking fans.

1. Western Alliance Bank

Western Alliance Bank is an online-based savings account that offers a high interest rate of up to 5.26% APY. Available on the Raisin digital marketplace, you must create a Raisin account before opening a Western Alliance savings account.

The online bank service requires a $1 minimum opening deposit without a monthly maintenance fee. This is another plus point that makes Western Alliance stand out from its competitors.

2. Evergreen Bank Group

Evergreen is a 5% interest savings account that helps you achieve your short-term financial goal. With a spectacular APY of 5.25%, the Illinois-based financial institution offers a number of banking products including savings, checking, and loans.

Evergreen savings account earns you a high interest rate and frees you from monthly fees but there is a catch. To open a new account, you must deposit at least $100.

3. Milli

Milli is another online savings account with highest interest rate to make your dreams come true. Bringing everything to your mobile phone, it earns you an outstanding interest rate of 5.25% APY. Without minimum opening deposit, ongoing balance, and monthly fee, this is an ideal place to keep your money.

On top of that, Milli comes with a jar feature with which you can separate your savings for different purposes. That means you can open multiple savings accounts for a variety of financial goals, such as an emergency fund or vacation fund.

4. UFB Direct

UFB Direct should be on every list of high-yield online savings accounts. The online division of Axos Bank offers 5.25% APY which is significantly higher than the average interest rate in the United States. Moreover, it does not charge you monthly fees so your money won’t go anywhere.

To open a savings account and earn interest, UFB Direct does not require a minimum deposit. Whether you want to deposit $1 or $5,000 you will be eligible for the highest rate.

5. Valley Direct

Valley Direct is an online division of Valley Bank that has several branches throughout the US. This online savings account with highest interest rate offers limited banking products including a high-yield savings account and a certificate of deposit which can be accessed by all US citizens.

Valley Direct offers an impressive 5.25% APY with no monthly fee. It also takes only $1 minimum deposit to open a new account. But if your balance remains $0 for at least 60 days, your account will be closed.

How to Choose an Online Savings Account

Many savings accounts provide competitive interest rates and other convenience like ATM cards and no monthly fees. That becomes the question, what factors should be considered when choosing an online savings account? Here are the answers.

1. Annual Percentage Yields (APY)

High APY is the main factor that contributes to the massive migration from traditional to online savings accounts. When you are looking for the best online savings account, consider the interest rate and find out whether the rate is temporary or permanent.

The more interest you want, the higher the APY you should get. The interest rates vary from bank to bank, so it becomes important to find one that offers the highest rate.

2. Fees

An online savings account with highest interest rate typically has lower fees than conventional savings accounts. Even some banks don’t charge you monthly fees at all so you can keep all your earnings.

Having that said, some banks may still charge you ATM fees, excess transaction fees, or minimum balance fees. Read the terms and conditions before opening a new account and decide which banks fit your preference.

3. Mobile App Availability

Online savings accounts are designed for your ultimate convenience. Consider the availability of mobile apps and online platforms that meet your needs for fast and convenient access at any time anywhere. Luckily, most online banks offer these features because they do not have physical branches.

Besides, it is also crucial to consider the features on the app and online platform like bill payment, online transfer, and mobile check deposit. Make sure it has useful features that you need to manage your funds.

4. ATM Access

Ask yourself if you need ATM access. Some online savings accounts offer an ATM card that you can use to withdraw funds or deposit at their ATM locations. However, not all online banks have this feature.

Understanding your needs can help you make a better decision. If you want quick access to your funds, choosing an online bank with an ATM card can solve your problem. But if you want to keep your savings untouched, lack of ATM support may not be a big deal.

5. Customer Support

Not least of all, it is important to consider customer support. Online banks do not have a brick-and-mortar branch to visit, so providing good customer support is a must. Whenever customers have an issue with their savings account, they can find help quickly and easily.

It is highly recommended to find an online bank that offers 24/7 customer support via different methods. If you want a fast response, phone and live chat are the best ways to connect with a customer service officer.

Finding an online savings account with highest interest rate is not simple. There are several things to consider such as APY, fees, and ATM access. Use this reference to help you make better decisions in choosing the best online savings account that fits you.