Save, save, save! The time to save is now!
- Amanda Williams
- Jun 3, 2024
- 3 min read
Updated: Jun 23, 2024
It's almost the middle of the year, and you still haven't made progress towards your savings goals? It's okay! You can still begin saving now and end the year strong. The following are a list of traditional and mobile banking savings accounts, that offer higher interest rates than a regular savings account. High interest means more coin in the bank, making your savings journey more rewarding while reaching your goals.
Traditional banking at a physical location:
For Traditional banking there are two accounts that will provide higher interest rates than a regular savings account. These two accounts are a CD (Certificate of Deposit Account) and a Money Market Savings account.
Certificate of Deposit: CD Account
Minimum Balance to open account: $500 to $1000
Interest Rate (APY): up to 5% annually
Maturity Date (the date in which you can access funds without penalty): 3 months, 6 months, 1 year, or 5 years depending on the bank's options.
You cannot touch these funds without penalty until it has reached its maturity date. The bank will give you options and allow you to choose your maturity date.
Your interest rate is typically based on the maturity date. So, a 3-month CD may only give you 2 % interest while a 5-year CD will give you 5% interest.
You cannot add funds to this account after the initial deposit. You can apply more than the minimum balance to the initial deposit for higher returns.
If you need help saving without consistently dipping into your savings this account may be best for you.
Money Market Savings:
Minimum Balance to open account: $2,500 up to $10,000 depending on the bank.
Interest Rate (APY): 3 to 5% annually
Funds can be touched at any time without penalty.
Although there is no penalty for touching your funds, you will only really benefit from this type of account if you keep a large amount in the account for an extended period of time. This account is best for someone keeping large amounts of cash such as 5 figures in savings.
Banking Apps/Mobile Banking
Mobile Banking allows you to manage your finances on the go and always keep track of your funds. Banking apps provide more options for savings accounts with higher interest rates than a regular savings account. With interest rates between 2% and 5 % annually.
The pro about banking apps is that they generally require no maintenance fees like most physical banks, and no minimum balance is required to get started.
The following are a list of banking apps and the interest rates they offer on savings accounts:
Banking Apps
Chime 2% (APY)
Credit Karma 5.1% (APY)
Vero 3% (APY)
Cash App 4.5% (APY)
Current up to 4% (APY)
Sofi 4.6% (APY)
PayPal 4.3%(APY)
APY (annual percentage yield)- is the annual percentage rate with compounding interest.
See your app store for more information about these apps and savings accounts.
Credit Union:
Credit Unions are another physical location that offer interest rates higher than a regular savings account, typically ranging between 2% to 4% Annually. Check out your local credit union and see what interest rates they are offering.
Get Started!
I hope this blog encourages you to start saving now! Not only does it feel rewarding to reach your savings goals, but you can also be rewarded for your hard work through a high interest savings account.
Check them out today!
Which do you prefer a physical bank or mobile banking apps and why? Why do you think mobile banking apps are becoming more popular and offering higher interest rates than physical banks? I'd love for you to share your thoughts in the comments.
Discipline is always key 🗝️
I just recently got connected to a financial advisor. She said in my particular situation the money market account would work best right now. I'm currently in process researching where I want to go for that account. I'd say mobile banking is becoming more popular because they have less expense for buildings & staff so the interest rate can be higher.
I’ve always thought of getting a CD account after reading this I actually might consider it. Thank you so much for sharing all these tips.
I prefer a physical Bank because if I have a problem with my account I can walk in and talk to a physical person. My thoughts are that the internet banking is becoming more popular and are offering higher interest rates because with the world of cyberspace they can reach more people. Therefore having more customer revenue to offer to consumers looking for loans and in return they give their Bank Customers higher interest rates on the money that they deposit into their own bank accounts which is the money that the bank used to loan to consumers in the first place.