The Battle of the Savings Accounts April 8, 2019 Advertiser Disclosure There are a few banks that pay 20x the interest of most others, but how do they stack up against each other?
Continue reading to find out the winner of the battle of the savings accounts! It's a well-known fact that interest rates on savings accounts are incredibly low.
In fact, the average savings account is hovering atound 0.10%.1 That's such a far cry from pre-crisis times, it's shocking.
At rates that low one might ask, "Why even have a savings account? Why don't I just place my hard-earned money under the mattress?" We can't blame you. However, if you did that you'd be leaving money on the table (or under the mattress).
There are much better options out there; savings accounts that earn twenty times the average rate of 0.10%. We've looked high and low to find some of the best accounts.
You'd be in great shape if you had any of these accounts, but after some thorough analysis and comparison, one of them stands above the rest. Here they are at a glance: At A Glance: High-Yield Savings Accounts & MMAs Oct 10, 2019 Min. for APY : $0 APY: 1.90% Capital One Member FDIC | Savings Account Introducing 360 Performance Savings-All Balances Earn 1.90% AP Open Account Oct 9, 2019 Min. for APY : $1 APY: 1.90%
American Express National Bank Member FDIC | Savings Account No monthly fee. Competitive APY. 24/7 account access. Open Account Oct 9, 2019 Min. for APY : $1,000 APY: 2.00%
State Farm Bank Member FDIC | Money Market Account Intro APY, $1,000 to Open, $5,000 Min Bal post intro, See Limits Open Account Savings Rates Provided By Bankrate.com | Disclaimer We were just as taken aback when we first saw these numbers. 1.9% and 1.9%?
Why didn't I hear of these accounts before I put my money in [large, untrustworthy bank X]? You might be saying to yourself, "State Farm Bank is clearly the winner because their APY is slightly higher." However, you can't jump to a conclusion as there are other important factors to consider when opening a savings account.
So we've broken them each down, piece by piece. Monthly Minimums Some banks require that you have a minimum in your account in order to avoid a monthly charge. Bank of America, for example, requires that you have $300 in your account.
Of the three banks listed, Capital One and American Express National Bank are both great because they don't require a minimum fee. But considering all factors, one has a slight advantage over the other. Winner: Capital One
Bank Reputation, this might not have been very important to us before the financial crisis, but times have changed. We need to feel safe with where we put our hard-earned money.
Each of these banks are backed by the maximum allowable FDIC guarantee of $250,000. This means if the bank defaults, the US Government would repay you every penny you had in the account, up to $250,000. Bank of America, Chase, etc. all have this same insurance.
More than just the FDIC insurance, we need reliability and value from our bank. So here is how the top banks fare in terms of reputation: Capital One bank is one of the most popular online banks in the country, and even offers customers in some regions with access to bank branches.
Though customers have fewer branches to visit, they'll have something more relevant: cutting-edge digital bank features. American Express has been around since 1850, and has been a federally recognized bank since 2008. They have extensive experience in handling financial services for a large amount of customers
State Farm offers a robust suite of deposit and lending products, with agents readily available to assist customers. After first building trust as an insurance firm, State Farm began bank operations in 1999 and has been building on their capabilities and consumer base since. This was a close call, but Capital One's reputation as one of the most popular online banks in the country earns it our vote for the winner of the bank reputation category! Winner: Capital One
Customer Service and Ease of Use These companies all have good customer service according to online reviews. 3 star reviews don't sound great for a restaurant, but for an industry that's really suffering from an image problem, 3 star ratings are some of the best ratings received.
Comparatively, Bank of America had 1.6 stars, HSBC had 1.4 stars and Chase came in at 2.5 stars.
We use the experiences of hundreds of real people to help us rank which banks have the best customer experience, and in this online world we give extra credit to banks that make mobile banking easy! All of the banks' websites are state of the art and incredibly intuitive; and each has an "American English" speaking support team that is very attentive and easy to deal with.
But with cutting-edge digital banking features and a top-rated mobile app that makes accessing your money easy as ever, Capital One has the edge here. Winner: Capital One Interest Rate, this one’s easy. Though these rates are well above the national average, only one can be the highest! Winner: State Farm Bank Conclusion as we said in the beginning, you'd be in great shape if you had any of these accounts. In today's low-interest environment, we can't stress enough how every bit counts- and at 20x the national average, these rates will save you more than just a little bit.
It was a tough call, but in the end we had to give a slight nod to Capital One 360 because they are just doing everything well.
They have great customer service, one of the highest interest rates available and there is no minimum to open an account. So after all of our research, Capital One 360 was our winner of the best savings account! Winner: Capital One.
At A Glance: High-Yield Savings Accounts & MMAs Oct 10, 2019 Min. for APY : $0 APY: 1.90% Capital One Member FDIC | Savings Account Introducing 360 Performance Savings-All Balances Earn 1.90% AP Open Account Oct 9, 2019 Min. for APY : $1 APY: 1.90% American Express National Bank Member FDIC | Savings Account No monthly fee. Competitive APY. 24/7 account access. Open Account Oct 9, 2019 Min. for APY : $1,000 APY: 2.00% State Farm Bank Member FDIC | Money Market Account Intro APY, $1,000 to Open, $5,000 Min Bal post intro, See Limits Open Account Savings Rates Provided By Bankrate.com |
Disclaimer Recommended Articles What Most Americans Don't Realize About Auto Insurance The Home Refinance Plan Your Bank Doesn't Want You To Know 6 Easy Ways To Get Out Of Debt How To Start Investing With $100 Or Less 5 Reasons To Refinance That Banks Don’t Want Homeowners to Know. How To Save $1000 While Living Paycheck To Paycheck.
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