Although CDs offer less liquidity than a regular checking account or savings account, you might get a higher rate of return with this financial product. This is especially true if you open a CD account with a longer timeline; for example, a 60-month CD instead of a 12-month CD.

According to the Federal Deposit Insurance Corporation (FDIC), national average CD rates range from 1.33% to 1.84% depending on the CD term, as of writing.

However, quite a few banks offer vastly superior CD rates to consumers who do their research. We compared dozens of banks and financial institutions to find the best CD rates today. If you’re on the hunt for a high-yield CD, start your search here.

Important Factors for Certificate of Deposit Accounts

• CDs are for long-term savings. Since CDs lock your funds into the account for a specific term (usually 12 to 60 months), they aren’t ideal for money you might need to access in the short term.

• CDs offer security for your funds. CD accounts are a secure place to stash your money and earn interest, thanks to FDIC insurance.

• Check for CD fees. Most CDs charge fees if you need to access your money early. Make sure you understand these fees before opening this deposit account.

• Online banks might offer better rates. Although brick-and-mortar banks offer their own CDs, you might find better rates through online banks. Compare legacy banks and online institutions to find the best CD rates.

If your goal is securing a superior short-term investment, the best CD rates are worth exploring. To help in your search, we compared many of the top financial institutions and online banks to find options with the most attractive rates and terms.

Find the Highest CD Rates from Banks and Credit Unions

Explore and contrast the top certificates of deposit (CDs) rates based on the highest Annual Percentage Yield (APY), spanning various terms including 3-month, 6-month, 1-year, 2-year, and 5-year options.

The banks below made our ranking due to the interest rates they offer and other features.

• PNC 
• CIT Bank
• Discover®
• Marcus by Goldman Sachs
• Synchrony Bank

Best Certificate of Deposit Accounts – Reviews

There are a few factors to consider when choosing where to open a certificate of deposit. These include whether you want to open your CD in person or online, the rates and terms that apply, and the fees required to access your money early.

The following reviews explain the CD rates for each of the top banks we profile and other details you should know.

PNC Bank

PNC Bank offers a variety of popular banking products, including certificates of deposit. Its CDs don’t require any monthly maintenance fees, and you can monitor your account at any time online or with the BBVA mobile banking app.

CD terms range from 7 days to up to 10 years, and CDs with longer timelines pay higher CD rates. Note that penalties apply if you access your money early.

If you cash out your CD early, with a term of one year or less, you’ll pay $25 plus 1% of the amount withdrawn. If you cash out a CD with a longer-term early, you’ll pay $25 plus 3% of the amount you cash out.

CD Rates: Online CDs with terms from 11 months to 36 months currently pay up to 5.04% APY.

CIT Bank

CIT Bank is known for its popular high-yield savings account, known as Savings Builder, but it also offers an array of CDs with excellent terms. Its 11-month, no-penalty CD stands out since it offers an excellent return rate. There are also no penalties if you need to access your money early.

CIT Bank also offers term CDs with various other lengths, as well as jumbo CDs for deposits of $100,000 or more. None of its CDs come with account opening fees or account maintenance fees.

CD Rates: CIT Bank currently pays from 0.30% to 3.50% APY on their CDs, depending on the term you choose. Top rates are offered on their 18 month CDs, which pay out 3.00% APY, respectively. Additionally, they have an excellent 11-month No-Penalty CD at 3.50% APY as of the time of this writing (04/05/23.)

Discover

With Discover, you can open a CD that lasts anywhere from three months to 120 months. There are no fees to open a CD, including account opening fees or maintenance fees, although their minimum opening deposit is $2,500.

Discover also stands out due to the reasonable penalties it charges if you need to access your money early. CDs with a term of less than one year, incur a penalty at three months of simple interest. For a CD that lasts one to four years, the penalty for cashing out early is just six months of simple interest.

CD Rates: The 120-month (10-year) CD is most rewarding, currently offering 3.75% APY, but that’s a long time to wait. If you’re willing to part ways with your funds for just 12 months, you can earn a rate of 4.70% APY.

Marcus by Goldman Sachs

Marcus by Goldman Sachs is a popular online bank for personal loans and high-yield savings accounts, yet it also offers rewarding CDs. Terms for its CDs range from seven months to six years, with a minimum $500 deposit to get started.

Marcus by Goldman Sachs even offers a 10-day guarantee that says you can move your rate up if the advertised rates on the CD you purchased increase within 10 days.

CD Rates: Some of the best CD rates from Marcus by Goldman Sachs are for its 9-month CDs, which currently pay 5.10% APY. Marcus by Goldman Sachs also offers limited-time CD rate promotions, like 5.25% on an 18-month CD.

What Holds It Back: Marcus by Goldman Sachs is an online bank only, so you don’t have the option to open your CD in person.

Synchrony Bank

We chose Synchrony Bank for our ranking because it doesn’t impose a minimum balance requirement, yet has competitive CD rates. It offers a 15-day guarantee, which lets you raise your rate if the advertised rate increases within 15 days of your CD purchase.

Terms are available from three months to 60 months. Early withdrawal fees for their CDs are also reasonable. For example, early cash-outs on CDs with terms of 12 months or less charge 90 days of simple interest at the current rate.

CD Rates: Five-year (60-month) CDs currently pay 4.00% APY, and three-year (36-month) CDs pay 4.30% APY. They also have a 16 month paying 5.40%

What Holds It Back: Synchrony Bank CDs are meant to be opened and maintained online, so you consider a different bank if you’re hoping for a personalized experience or you prefer to bank in person.

How We Found the Best CD Rates

Finding the best CD rates is important if you want to maximize returns on your savings, yet there are other factors to consider before opening an account. We considered the following factors when compiling this list of banks with the best CD rates of 2024:

Rates and Terms

Although we gave preference to banks that apply the best rates to various CD terms, we focused on banks that offer at least one CD with an APY that is at least double the average CD rate nationwide.

BBVA didn’t score well in this category, yet we included them due to their lack of account fees and a strong reputation among major U.S. financial institutions.

Account Fees

We only considered banks that don’t charge fees to open a CD account. We also chose banks that don’t charge any monthly account maintenance fees.

Early Withdrawal Penalties

Most banks charge an early withdrawal fee if you cash out your CD early, so we looked for banks with reasonable penalties. We also gave preference to accounts or CD options that don’t charge any penalty for early withdrawals.

FDIC Insurance

Finally, we only included institutions in our ranking that offer FDIC insurance. This insurance secures up to $250,000 of CD funds per account holder.

What You Need to Know About Certificates of Deposit

If you have never opened a certificate of deposit before, you might wonder how they work and why people choose this option. Here are some important factors when considering a CD account.

• CDs offer superior rates compared to other deposit products. According to recent figures from the FDIC, the average national CD rate for a 60-month term is about four times greater than the average national savings account rate.

• Longer CDs offer better yields. Committing your money to a longer timeline can lead to considerably higher returns. FDIC data shows that the average APR for a one-month CD is only .02% — not much better than a basic savings account.

• CD rates can go up or down over time. CD rates are determined based on the current interest rate environment, including benchmark interest rates. This means that you might get a better CD rate any time benchmark interest rates go up.

• CD rates can be higher on larger amounts. If you have $100,000 or more to deposit, you might qualify for a “jumbo CD”. This type of CD requires a high minimum deposit, but banks are willing to pay higher APYs to lock in more funds.

Summary: Best CD Account Rates of March 2024

The Bottom Line – Locking in the Highest CD Rates

Investing in a certificate of deposit (CD) is one of the safest ways to grow your money. CDs are low-risk investments with guaranteed returns, so they can be an excellent choice for those looking to diversify their portfolios and lock in higher interest rates.

When choosing a CD, it’s important to compare APYs (annual percentage yields) and terms between different banks and credit unions in order to get the best rate possible. Shop around for promotional offers or talk to financial advisors if you need help selecting the right CD for your needs.

With careful research and comparison, you’ll be able to find the CD that gives you the highest rate – and peace of mind – in the long run.

The post Best Bank CD Rates for 2024 appeared first on Good Financial Cents®.

While the best savings accounts used to come from traditional brick-and-mortar institutions, this is no longer the case at all. The reality is that many online banks and fintech companies offer savings accounts with lower fees (or no fees) these days, and their interest rates are much more competitive than you’ll find elsewhere.

Don’t believe me? Once you do some digging, you’ll quickly find that banks like Chase and Wells Fargo are offering a paltry 0.15% rate on their regular savings accounts. This is even lower than the national average the FDIC is reporting!

Since you definitely want to secure the highest rates you can on your savings, it’s crucial to compare banks and their savings account offers side-by-side. We just did exactly that to help you in your search, and we highlight the best savings accounts of 2024 below.

Our Picks for Best Savings Accounts of March 2024

• Discover Online Savings Account: Best User Experience
• UFB Direct Rewards Savings: Best for High APY
• CIT Bank Savings Connect: Best for No Fees
• Marcus by Goldman Sachs: Best for No Minimum Deposit
• Citi Accelerate Savings: Best for Citi Customers
• Barclays Online Savings Account: Best Online Tools
• SoFi Money: Best Sign-Up Bonus Offer
• Bread High Yield Savings: Best for Easy Online Transfers

Best Savings Accounts – Reviews

Before you open up one of the best savings accounts we profile in this guide, you should get a general idea of how each account works, including their minimum account balance requirements and monthly fees. The following savings account reviews can help you learn more about each bank and what they offer.

While Discover® is well known for its popular rewards credit cards, this online bank also offers personal loans, checking and savings accounts, and student loans. When it comes to their savings account products, consumers can open an account with a $0 minimum deposit requirement and no monthly fees or maintenance fees.

You can open an online savings account with Discover without having to visit a physical bank branch, and your Discover account may come with broad ATM access, depending on where you live.

Other benefits of Discover online savings accounts include no fees for insufficient funds and access to a highly-rated mobile app that makes it easy to make deposits, monitor your account balance, or transfer money between accounts on the go.

UFB Direct offers a high-yield savings account with no maintenance or service fees and no minimum account balance required. You don’t have to make a minimum direct deposit of any kind to qualify for their highest-yield offer, and you even get a free ATM card included.

UFB Direct also comes with a robust online banking portal, as well as a mobile app that is highly rated by users. You can use the app to make mobile deposits, track your spending and savings goals, and transfer money between accounts. This bank also comes with 128-bit encryption on their accounts, so you can rest assured your banking information and personal data will remain safe.

While CIT Bank was once a standalone online bank, the institution is now a division of First Citizens Bank. With that in mind, you should know that the CIT Bank Savings Connect account requires a minimum deposit of at least $100 to get started. However, there are no account management fees or hidden fees to be aware of, and consumers can earn an exceptional rate of 4.65% APY.

Opening this account online is a breeze, and consumers can use the mobile app to make deposits remotely, transfer money, or keep track of their savings balance. Like other savings accounts that made our ranking, CIT Bank is also FDIC-insured. This means that depositors can sleep well at night knowing that up to $250,000 of their savings has protection in the event of a bank default.

Marcus by Goldman Sachs offers some of the best high-yield savings accounts and personal loans on the market today. Their savings accounts, in particular, offer a competitive APY of 4.30%. There are no fees required for this account, and you can open one and get started with no minimum deposit required.

You can also make same-day transfers from other banks in amounts up to $100,000, and Marcus by Goldman Sachs accounts are all FDIC insured.

The bank’s mobile app is also highly rated and recommended. Applicants can open their accounts online or using the mobile app, but the app itself is incredibly useful once you fund your account. As an example, you can use the Marcus by Goldman Sachs app to schedule transfers in and out of your account, see how much interest you have earned, and keep track of your savings goals.

If you are hoping to open a savings account with a bank that may have physical branches in your area, Citibank is worth considering. This bank has branches throughout the country, but you’ll also be able to access over 65,000 ATMs through their network. In the meantime, Citibank also offers a useful mobile app with excellent ratings on Google Play and in the App Store.

In terms of their online savings account, their highest tier of savings currently earns 4.05% APY. A monthly service fee of $4.50 may apply if you have a Citi Accelerate savings account without a connected checking account, but you can have this fee waived if you maintain an average monthly balance of at least $500 in your account at all times.

Barclays is another bank that offers exceptional high-yield savings account almost anyone can open. This account is currently earning 4.35% APY, and the minimum account balance requirement starts at $0. There are also no monthly fees associated with this account, as well as no hidden fees in general.

Barclays accounts come with FDIC insurance, and they make it easy to transfer money between accounts online or using the bank’s mobile app. At the end of the day, this account is a no-frills option that aims to grow your savings without requiring you to jump through any hoops.

SoFi offers an exceptional APY of 4.6% on their savings accounts with no minimum deposit requirement and no monthly fees or hidden fees to worry about. The online bank is even offering a new account bonus of up to $300 when you sign up and set up qualifying direct deposits to your account.

Opening an account with SoFi also gets you access to more than 55,000 fee-free ATMS in the Allpoint ATM network, and qualifying direct deposits can protect you from overdraft fees when you overdraft your account by up to $50. A SoFi savings account also lets you access your paycheck up to two days early. The SoFi mobile app is highly rated as well, and it makes it easy to monitor all your SoFi accounts in one place.

Bread Savings is another online institution that can help you grow your savings with a high APY and no hidden fees. You need at least $100 to open a savings account with Bread, and you can earn an APY of 4.75% after that, regardless of your account balance.

Bread’s high-yield savings accounts are mostly free of frills and special features, but the company does have a mobile app with plenty of perks. For example, you can use the Bread app to monitor your savings balance, transfer funds, make deposits, and more. Bread also offers unlimited deposits via mobile check capture and ACH transfer.

Finding the Best Savings Accounts

Opening a savings account can make it easier to reach your savings goals, yet it can make sense to check out and compare other financial products like Certificates of Deposit (CDs) and money market accounts as well. If you want an account that you can use to make regular purchases, you should also look at the best checking accounts on the market today.

When evaluating the best savings accounts, here are all the factors you need to consider:

Savings Accounts 101

If you still believe the best savings accounts will meet your needs, read on to learn more about how savings accounts work and their pros and cons.

How Savings Accounts Work

A savings account is a type of bank account that intends to help you grow your money over time. Savings accounts offer an annual percentage yield (APY) that is a lot higher than you’ll get with a checking account. However, some savings accounts come with minimum balance requirements, monthly fees, or limits on the amounts you can transfer or withdraw each month.

To get the most out of a savings account, you should look for options that offer the highest APY you can find with minimal fees or no fees. You can grow your savings faster by setting up automatic transfers or deposits, and you can open multiple savings accounts for different goals.

Use-Cases for Savings Accounts

There are myriad reasons to open a savings account with your regular bank or an online institution. With that in mind, here are some of the most common uses for savings accounts and the funds they hold.

• Short-Term Goals: Many consumers use a savings account to save up for short-term goals, whether that includes home upgrades or repairs, an upcoming vacation, or a new vehicle for the family.
• Long-Term Goals: You can also use a savings account to save for longer-term goals such as the down payment on a home, college tuition, or your future retirement.
• Emergency Funds: Most experts say you should have three to six months of expenses tucked away in a savings account for emergencies only. With a fully-stocked emergency fund that’s held in a high-yield savings account, you’ll have some protection against unexpected expenses and bills, a loss in income, a job loss, and more.
• Rainy Day Funds: It never hurts to have some savings that aren’t allocated for anything in particular. You can open up a savings account and fund it for anything that pops up, from a last-minute trip you want to take to a splurge purchase of something you have always wanted.

How We Found the Best Savings Accounts

To find the best savings accounts on the market today, we looked for options that offer the highest annual percentage yield (APY) possible with no monthly fees or minimal fees required. We also looked for institutions that have a mobile app, and we only considered bank accounts that are FDIC-insured.

Other features we looked for include low minimum deposit requirements (or a $0 minimum deposit requirement), access to fee-free ATMS, a robust online portal, and easy money transfers and deposits via an online banking portal or mobile app.

• Discover Online Savings Account: Best User Experience
• UFB Direct Rewards Savings: Best for High APY
• CIT Bank Savings Connect: Best for No Fees
• Marcus by Goldman Sachs: Best for No Minimum Deposit
• Citi Accelerate Savings: Best for Citi Customers
• Barclays Online Savings Account: Best Online Tools
• SoFi Money: Best Sign-Up Bonus Offer
• Bread High Yield Savings: Best for Easy Online Transfers

The Bottom Line – Finding the Best Savings Account Rates

Shopping around for online savings accounts can be intimidating at first, but with the right research tools and a bit of savvy, you can find the perfect fit for your needs. Make sure to remember the importance of security when evaluating online accounts and, of course, look for the one with the best rate of return.

People often overlook online savings as a way to make their money work for them – don’t forget that a high-yield account often starts from small beginnings! Take advantage of online savings options and unlock a wealth of financial opportunities.

FAQs on Finding the Best Savings Account For Your Money

The post 8 Best Savings Accounts of 2024 appeared first on Good Financial Cents®.

In this guide, we’re going to provide 11 of the best online banks, most of which pay interest rates on deposits well above “traditional” banks.

Let’s start with a high-altitude summary with the table below. We’ve listed all 11 banks and their basic features. Take a quick glance through the table, then move down to the summary reviews of any you’re interested in just below the table.

Our Picks for Best Online Banks

Below is our list of the 11 best online banks, and what each bank is especially good at:

• Ally Bank: Best All-Around

• Discover Bank: Best Rewards Checking

• Alliant Credit Union: Best Online Credit Union

• CIT Bank: Best for High-Interest Savings

• Capital One Bank: Best Online Banking with Credit Cards

• Chime: Best for Depositors with Bad Credit

• PenFed: Best High Interest on CDs

• Bank of America: Best Full-Service Bank

• NBKC: Best Small Full-Service Online Bank

• PNC: Best Banking Virtual Wallet

• Betterment: Best Investment Service with Banking

• Products Offered: Checking, online savings, money markets, and CDs

• Minimum Balance Required: None

• APY on Best Account: 4.40% APY (Money Market Account)

• Monthly Fees: None

• ATM Network: 43,000+

Ally Bank got our vote as the best all-around online bank. Not only do they pay 4.40% APY on their money market accounts, but they also offer interest-bearing checking, and high-yield certificates of deposit (CDs).

But that’s not all that makes this online bank stand out. In addition to interest-bearing deposit accounts, they also offer mortgages, car loans, and personal loans. They also offer self-directed trading of most investment securities, as well as a robo-advisor and wealth management services.

Ally Bank offers interest checking with two tiers. The account pays 0.10% APY on balances less than $15,000, and 0.25% APY on balances above. The account also comes with a Round Up feature enabling you to save money as you spend.

Ally Bank also offers CDs with terms between three months and five years, and interest rates ranging from 0.50% and 2.75% APY.

• Products Offered: Online savings, checking account, money market, and CDs

• Minimum Balance Required: None

• APY on Best Account: 3.60% APY on online savings account

• Monthly Fees: None

• ATM Network: 60,000+

Best known for its high-rewards credit cards, Discover also offers online banking with high interest. Though their online savings account pays the highest rate at 3.60% APY, their money market comes close, with 3.50% APY on balances up to $100,000, and 3.55% APY on higher balances. They also offer CDs in terms of 12, 24, and 60 months, with interest rates ranging between 4.15% and 4.30% APY.

Much like Ally Bank, Discover has none of the usual fees. They even waive the excess withdrawal fee on their online savings account. Meanwhile, you can receive 1% cashback on debit card purchases up to $3000 each month with their no-fee checking account.

• Products Offered: Savings, interest checking, and children’s accounts

• Minimum Balance Required: $5, but $100 to earn interest

• APY on Best Account: 1.00% APY on high-yield online savings

• Monthly Fees: None with electronic statements

• ATM Network: 80,000+

Alliant Credit Union is one of the largest credit unions in the nation. And though based in Illinois, it’s available to depositors nationwide. As a credit union, they offer a full line of banking services. This includes credit cards, mortgages, home equity lines of credit, auto loans, personal loans, and even commercial real estate financing.

Their High-Rate Savings Account currently pays 1.00% APY with a minimum balance of $100, and no monthly fee if you choose electronic statements (paper statements are $1 per month). Meanwhile, the high-yield checking account pays 0.25% APY with no monthly service fee or overdraft fees and has no minimum balance requirement.

• Products Offered: Money market, savings account, eChecking, and CDs

• Minimum Balance Required: $100

• APY on Best Account: 1.35% APY on Savings Connect account

• Monthly Fees: None

• ATM Network: 7, but up to $30/month ATM fee reimbursement

CIT Bank’s star account is their Savings Connect account. It currently pays 1.35% APY and requires a minimum of $100 to open. It requires connecting the savings account with an eChecking account. And speaking of eChecking, that account pays interest of 0.10% APY on balances less than $25,000 or 0.25% above. It also requires a minimum opening balance of $100.

Meanwhile, the money market account pays 1.00% APY and requires a minimum of $100 to open. They also offer their Savings Builder account, which pays up to 0.70% APY. But this savings account is a bit complicated. It requires a minimum balance of $25,000 or making monthly deposits of at least $100, to earn the maximum interest rate. The rate falls to 0.34% if you don’t.

CIT Bank also offers an interesting array of CDs. Unfortunately, other than the No Penalty 11-month CD, currently paying 1.40% APY, the interest rate returns on their CD products pay well below 1%. CIT Bank also offers home mortgage loans, as well as business and commercial financing.

• Products Offered: Checking, savings, CDs, team checking, and kids savings accounts

• Minimum Balance Required: None

• APY on Best Account: 1.00% APY on 360 Performance Savings

• Monthly Fees: None

• ATM Network: 70,000+

Much like Discover, Capital One is perhaps best known for its line of very attractive credit cards. But they also offer online banking that includes interest-bearing checking and savings accounts, as well as a wide range of CDs. The most impressive program is the 360 Performance Savings account, which currently pays 1.00% APY on all balances. There are no monthly fees and no minimum balance requirement.

Their 360 Checking account is an interest-bearing checking account, currently paying 0.10% APY. Like the 360 savings account, there is no minimum balance and no monthly fees. Capital One also offers CDs with terms ranging from six months to 60 months, and interest rates between 0.75% APY and 2.90% APY.

• Products Offered: Checking and savings accounts

• Minimum Balance Required: None

• APY on Best Account: 0.50% APY on the High Yield Chime Savings Account

• Monthly Fees: None

• ATM Network: 60,000+

If you’ve been unable to open a checking account because of either bad credit or an unsatisfactory relationship with a previous bank, Chime can help. You can open an account with no money, and no credit check. Chime also offers fee-free overdraft protection with their SpotMe program which provides you with up to $200 in overdraft spending.

Chime also offers other services to help you better manage your finances and even improve your credit. Their Credit Builder program offers a secure Visa credit card with no annual fees or interest that will report to all three major credit bureaus.

Chime, however, is on the low end of the interest scale, with their top rate being 0.50% APY on their High Yield Chime Savings Account. But Chime is more a banking app for individuals looking to build credit, and not about paying high interest.

• Products Offered: Checking, savings, and money market accounts, and CDs

• Minimum Balance Required: $1,000

• APY on Best Account: 3.45% APY on their 5-year CD

• Monthly Fees: None

• ATM Network: 85,000+

PenFed is a credit union offering complete banking services. That includes checking, savings, and money market accounts, as well as high-yield CDs, credit cards, auto loans, personal loans and lines of credit, student loans, and the full range of mortgages and home loan products.

Their CDs are where they’re strongest. That starts with their five-year certificate which currently pays 3.45% APY on balances as low as $1,000. Meanwhile, their Premium Online Savings is currently paying 0.75% APY with a minimum of $5 to open an account.

They also offer a free checking account with no minimum balance and no monthly fees, as well as their Access America checking account paying up to 0.15% APY on balances below $20,000, and 0.35% APY on higher balances. The account requires a monthly direct deposit of at least $500, or a minimum daily balance of $500 to avoid a $10 monthly fee.

• Products Offered: Checking, savings, and CDs

• Minimum Balance Required: Varies by account type and program

• APY on Best Account: N/A

• Monthly Fees: Waivable fees on checking accounts, none on savings

• ATM Network: 16,000+

There’s good news and bad news with Bank of America. Let’s start with the bad news—interest on their checking, savings, and CDs is downright dismal. We’re talking rates of below 0.10% across the board, even with the recent increase in interest rates in general. Bank of America is simply not an institution where you’ll want to hold a large amount of cash for the purpose of earning interest on your money.

But what Bank of America is good at is being a full-service bank. Unlike many of the other banks on this list, Bank of America is a traditional brick-and-mortar bank. They have more than 4,000 retail financial centers across the country, which means the possibility of face-to-face banking is very high. But like an increasing number of traditional banks, they also offer complete online banking services.

As a full-service bank, they offer several credit cards, home loan programs, auto loans, and investing through Merrill Edge. And if that’s not enough, they also offer small business banking and wealth management. Bank of America is the perfect choice if those are the services you’re looking for.

• Products Offered: Checking and money market accounts, and CDs

• Minimum Balance Required: None, but you must make a deposit within 60 days of opening your account

• APY on Best Account: 0.40% APY on Personal Money Market

• Monthly Fees: None

• ATM Network: 37,000+

NBKC is a small, Kansas City-based bank with just four brick-and-mortar branches in the Kansas City area. But they distinguish themselves as an online bank, and one that provides full banking services. That includes home loans, personal loans, auto loans, bridge loans, and credit cards, in addition to checking and money market accounts and CDs. If that’s not enough, they also offer business services, like funds, disbursements and payments, fraud management, collections, and cash management.

On the bank deposit side, they pay interest on both their money market and checking accounts. The Personal Money Market currently pays 0.40% APY on all account balances, has no minimum balance requirement, and charges no monthly fees. Their Everything (checking) Account pays 0.25% APY on all account balances, has no minimum deposit requirement, and no monthly fees.

CDs have terms of between three months and five years, with interest rates between 0.10% and 0.75% APY. Each requires a minimum investment of $1,000 or $250.

• Products Offered: Checking, savings, and money market accounts, and CDs

• Minimum Balance Required: Varies by account

• APY on Best Account: N/A

• Monthly Fees: Varies by account

• ATM Network: 9,500+

PNC is another brick-and-mortar bank with a strong online presence. It’s one of the largest regional banks in the country, and it provides full banking services to individuals and businesses. They offer checking and savings accounts, credit cards, home financing, auto loans, and retirement plans, as well as business banking services.

Much like Bank of America, as a large banking concern, interest rates paid by PNC on deposit accounts are poor. For example, they offer multiple savings accounts, all with interest rates well below 0.10% APY, regardless of account balance. The situation is much the same with their CDs, with terms ranging from as little as one month to as long as 10 years.

But if PNC has a distinguishing feature, it’s their Virtual Wallet. That’s a feature that combines checking and savings accounts with money management tools. It will set you up with the primary checking account representing your spending account, a secondary checking account that will act as a reserve, and then a long-term savings account for growth. It will then add digital tools to track your spending and automate your savings.

• Products Offered: Checking, cash reserve, and automated investing

• Minimum Balance Required: None

• APY on Best Account: 1.10% APY with Cash Reserve account

• Monthly Fees: None

• ATM Network: None, but fees charged by other financial institutions are reimbursed

Betterment is an online, automated investment platform, better known as a robo-advisor. For a small fee (generally 0.25% of your investment account balance) they’ll create, manage, and rebalance your investment portfolio for you. All you need to do is fund your account.

But as the company has expanded its product offerings, they now offer both checking and a high interest cash reserve account. The cash reserve account currently pays 1.10% APY with no minimum balance required, and no monthly fees. However, you must have a Betterment investment account to be able to take advantage of the cash reserve. Meanwhile, your account will enjoy FDIC insurance protection on balances up to $1 million, or $2 million in a joint account.

Betterment also offers no-fee checking, which comes with a Visa debit card. The account has no fees, and is FDIC insured up to $250,000 per depositor. The Visa card will give you an opportunity to earn rewards at participating merchants, and though Betterment has no ATM network, they do reimburse fees charged by other financial institutions, as well as foreign transaction fees.

Online Banking vs. Traditional Banking

In truth, the line between online banking and traditional banking is fast becoming a lot less obvious than it used to be. That’s because nearly every bank in the country, including long-established brick-and-mortar banks, now offers online banking. Not only is it a feature consumers commonly prefer, but it also enables banks to attract customers well beyond their home territory.

However, expanding customer reach is hardly the only reason banks offer online banking. Because online banking doesn’t require physical branches, or the employees needed to staff them, it reduces their cost of operation. By passing those lower costs along to their consumers, online banks are able to attract a larger customer base.

That’s a big reason why online banks typically pay higher interest on deposits than traditional banks and charge lower fees. Many in fact charge no standard fees at all, starting with the monthly service charge.

Another major difference between the two is that online banks are fully functional from their web platforms. That includes giving consumers the ability to check individual transactions; balance their accounts; pay loans, merchants, and vendors online; transfer money between accounts or even to third parties; and contact customer service.

Online banking has progressed to the point where it is now possible to take advantage of mobile check deposit capabilities, enabling you to immediately deposit a paper check in your account for immediate crediting. It’s even possible to apply for a loan or credit card through an online banking platform. The combination of services has become so sophisticated, it has virtually eliminated the need to visit a bank branch.

There’s one other feature that’s proven to be critical to the success of online banking, and it’s mobility. Consumers can now access their accounts and conduct their banking business on a computer at home or at work, or even through their mobile phones. That can turn a bank transaction that once took up to an hour into just five minutes.

Tips to Find the Best Online Bank

Banking is a very personal service, and you need to approach finding the right online bank with that thought in mind. Determine what your own personal needs and preferences are, then set about finding the bank that will best match what you’re looking for.

For example, if you have a need to deposit or access cash, the size of an online bank’s ATM network will be very important to you. A large fee-free ATM network will give you greater flexibility to conduct cash transactions.

If you frequently need customer service, you’ll want to work with an online bank that offers live customer support by phone or by live chat. Many online banks now offer live customer service on a 24/7 basis.

You should also consider the most important reasons you use your bank. For example, if you still write a lot of checks, you’ll want to work with a bank that will offer fee-free checking, with unlimited check writing. Focus on finding the best checking accounts. This is especially important because many online banks are gradually moving away from paper checks.

If you’re primarily interested in saving money and earning high interest, focus on the banks that pay the highest rates. This will include the banks with the best savings accounts and the best high-yield savings. If you’re saving for long-term purposes, and want to lock in high interest rates, look for banks offering the best CD rates. Or perhaps you’re interested in other services the bank may provide—like loans. For example, you may be interested in working with an online bank that offers personal loans, since they’re usually the prime choice for the best debt consolidation. Similarly, if you plan to buy a car in the near future, you may be interested in an online bank that offers favorable auto loans.

How We Found the Best Online Banks

We used very specific criteria to come up with this list of the best online banks. Below are the features we consider to be the most important in making that determination:

• Products Offered: At a minimum, we looked for checking and savings accounts, but also money market and CDs. Non-deposit features were also taken into consideration, such as credit cards, loans, and business banking.

• Minimum Balance Required: As you can tell from the banks included on this list, we’ve given a strong priority to banks that have no minimum initial deposit requirement, or ongoing balance requirements.

• APY on Best Account: Though most of the banks include a relatively small number of interest-bearing accounts, some offer many. For that reason, we chose to highlight the single account paying the highest rate of interest. And, generally speaking, if a bank pays a higher rate on one account, it follows through to the other accounts they offer.

• Monthly Fees: We absolutely favor the banks that charge no monthly fees. But we included a couple of larger banks that do have fees but waive them with very minimal requirements.

• ATM Network: Banking with an online bank usually means an absence of brick-and-mortar branches. That means ATM access becomes even more important as a source of cash. We favor the banks that have the largest fee-free network of ATMs or provide reimbursement for out-of-network fees.

We also consider other services offered by each bank. Betterment is an excellent example, since they provide automated investment services, while PNC offers their Virtual Wallet to help you better manage your money and build savings.

Information was taken primarily from each bank’s website, and also from independent bank reviews where necessary.

Summary of the Best Online Banks

Let’s wrap this up by giving you one last look at our list of the 11 best online banks and why we included each:

• Ally Bank: Best All-Around

• Discover Bank: Best Rewards Checking

• Alliant Credit Union: Best Online Credit Union

• CIT Bank: Best for High-Interest Savings

• Capital One Bank: Best Online Banking with Credit Cards

• Chime: Best for Depositors with Bad Credit

• PenFed: Best High Interest on CDs

• Bank of America: Best Full-Service Bank

• NBKC: Best Small Full-Service Online Bank

• PNC: Best Banking Virtual Wallet

• Betterment: Best Investment Service with Banking

Given that interest rates have been rising in recent months, we strongly recommend looking into one or more of these banks. That doesn’t mean you need to shift all your accounts over to one of them, but you should definitely consider moving your savings if you’re not currently earning a comparable rate of return. You can also check out our post on other high-yield investments.

FAQs – Best Online Banks

The post 11 Best Online Banks: Start Today appeared first on Good Financial Cents®.

Those days were long gone. BUT… they are making a comeback!

According to the FDIC, the national average savings rate is paltry 0.46%. That means that the best high-interest savings accounts today are paying close to 20 times the national average!

Thanks to the low-rate environment, it’s not a surprise that for the past several years, my clients have been griping about how their savings accounts pay next to nothing, even from the best high-interest banks.

As painful as the interest situation is, switching to a top high-interest savings account to stash away some cash for a future financial goal or an unexpected emergency is a high-leverage money move you should make today.

Sneak Peek: Our Top 2 Best Online High Yield Savings Accounts

There are plenty of online banks that offer excellent terms. Don’t let your money sit in a savings account that’s going to be eaten by annual fees. You shouldn’t have to pay to let your money sit.

All the banks on my list are great places to stash your cash. Each can provide different benefits, covered below.

Ready to see current rates? Use our “live rates” tool for the absolute best rates in your area.

The 7 Best High-Interest Savings Accounts in 2024

1. Discover  – Best Overall

2. CIT Bank Savings – Great Ongoing Rates

3. Ally Bank – Best User Experience

4. BBVA Bank – Best Variety of Products

5. HSBC – Consistently High Rates

6. USAA – Best for Military

7. Capital One 360 – Best for Trustworthiness

8. Honorable Mentions

1. Discover Savings – Best Overall (Member, FDIC)

Get Started

• APY: 4.25% 
• Initial Deposit Minimum: $0

Turn Your Savings Into Something

If you’re looking for a bank to invest your savings in to earn very high interest rates, check out Discover Bank, Member, FDIC. The account requires no minimum balance to open and charges no monthly maintenance fees.

It also comes with 24/7 online access to your funds, online transfers to and from other banks, and direct deposits.

As is the case with savings accounts and money markets with all banks, withdrawals and outgoing transfers are limited to no more than six per monthly statement cycle.

2. CIT Bank Savings – Great Ongoing Interest Rates

Get Started

• Interest Rate: Up to 5.05%
• Initial Deposit Minimum: $100

Make The Smart Choice For Your Savings

CIT Bank is a great choice if you are looking for a bank to store some of your cash for a rainy day.

CIT Bank is in the upper tier of interest rates and is currently ahead of just about everyone else.

On top of their high-interest rate, they also offer a bonus rate tier for customers that have more than $5,000 saved with them.

CIT is also great because of its easy deposits. You can fund your account or add additional deposits via easy online transfer from your current bank, mailing in a check, or wire transfer. Read our full review.

3. Ally Bank – Best User Experience

Get Started

• APY: 4.25%
• Initial Deposit Minimum: $0

Save Smarter, Faster Than Ever

Ally Bank was built on the premise of getting rid of all the crazy fees that normal banks charge while giving customers great rates and great customer service.

I mean, seriously? How can you not love that? A bank that is fighting to end banks gouging customers will get my vote every time.

Ally also offers a robust set of products ranging from checking and savings to CDs, IRAs, and other investment options.

4. PNC Bank – Best Variety of Products

Get Started

• Interest Rate: 3.01%
• Initial Deposit Minimum: $25

Creating Opportunities

PNC (formerly BBVA) offers a wide variety of products and services, everything from small business loans to online savings accounts (because that’s why you are here, right?).

BBVA isn’t the most well-known bank on our list; however, they are one of the largest U.S. commercial banks based on deposit market share.

If you haven’t heard of PNC, you should take the time to familiarize yourself with their variety of products.

5. HSBC – High-Interest Rates, Low Minimums

Get Started

• Interest Rate: 3.45%
• Initial Account minimum: $1

The World’s Local Bank

HSBC offers consistently high-interest rates on its savings accounts. They also offer checking accounts,  loans and mortgages, investment and retirement accounts, and insurance.

Here’s what you get with an HSBC high-yield online savings account:

• High Interest. HSBC is dedicated to being competitive on interest rates to attract new clients.

• Low Minimums. $1 to open an online account for all savings, $1 minimum balance to receive APY on Everyday Savings.

• Easy Access. Many of the online banks only let you do transfers.

6. USAA – Best for Military

Get Started

• Initial Minimum Deposit: $25

We Know What It Means To Serve

*You must have a family member who is serving/has served in a branch of the military.

Aside from being an exceptionally reputable organization, as an online savings account, USAA offers several unique benefits that the other banks on this list don’t. You can get a HUGE variety of different products with USAA.

They offer just about any financial or insurance product you could ever need, and having all of your accounts and products in one place is an impressive advantage.

Here’s what you get with a USAA online savings account:

• Free Access to Virtually Any ATM. No fees for withdrawals at more than 60,000 “USAA-preferred” ATMs. They will also refund you the fees of any ATM that isn’t one of the preferred machines.

• Low Initial Deposit. Similar to some of the other accounts, USAA does require an initial deposit, but it’s only $25.

• No Fees. With a USAA savings account, you will not have any service fees or any fees if you transfer money to another bank.

If you have a family member who has ever served in the military, it’s worth checking out an online savings account with USAA.

7. Capital One 360 Savings Account – Trustworthy

Get Started

• Initial Minimum Deposit: $1

What’s In Your Wallet?

I’ve had an account with Capital One 360 Savings longer than I have with Ally. That’s because Capital One 360 (formerly ING Direct) was one of the first reputable online banks to exist.

Capital One 360 is easy to use and secure, and you can connect your account to your other accounts, including your Capital One Investing account.

Here’s What You Get With Capital One 360:

• Extremely Competitive Interest Rates.

• No Minimums. Like Ally, you won’t be hit with any minimum balance fees, and you can open an account with as little as $1.

• Easy Deposit Options. Opening an account is easy — you just link a checking account from another institution like you would with any national bank.

• Easy Access and Management. Capital One 360’s user interface is one of the best around. One of the unique things Capital One 360 offers is “sub-accounts,” where you can open up mini-accounts to hold your saving goal money.
  
  So you can have a main Savings Account but have mini-accounts for Vacation Fund, Emergency Fund, and so on.

• Other Account Options. They offer a robust set of accounts ranging from checking to savings to CDs, mortgages, and investing.

High-Interest Online Savings Accounts – Honorable Mentions

Oportun (Formerly Digit.co) – A New Option

Another interesting savings option is Digit.co (Digit.co was acquired by Oportun in 2021)

This is a bank that uses an algorithm to determine how much money to transfer from your checking account into savings every few days. By tracking your income and spending habits, Oportun can determine how much extra money should be going into savings.

Oportun promises that its automatic transfers won’t overdraw your account. The interest paid is very small, but it does exist. This is an account for people who want to save without needing to think about it.

Getting access to your money is easy; it’s all done through text. You text simple commands to change how much you save, to check your balance, and to withdraw to your own account.

American Express High-Yield Savings Account

Get Started

• Minimum Balance: $0

Do Not Live Life Without It

American Express, the credit card company that offers fantastic cashback, now has a banking arm that offers great interest on your account.

Rates are currently very competitive with some of the larger, well-known online banks. Account access is not as sophisticated as you see with other banks, but you don’t need that sophistication if you are just looking for a solid place to keep some of your cash.

If American Express Savings offered a full suite of financial products like mortgages and checking accounts on top of the savings account and CD, I would be more concerned about the website.

But this is a pretty basic product: deposit money, earn interest, and watch it grow.

AMEX also has a 36-month CD that you can drop your money into to earn a slightly higher rate of return. However, the difference is so small that I can’t recommend locking your funds up for 3 years.

Here’s what you get with AMEX’s High Yield Savings Account:

• Great Interest. To attract customers, American Express often has some of the highest interest rates available.

• Simple Options. You have two account options: high-yield savings and a certificate of deposit. Two simple choices rather than an array of confusing options.

• No Minimums. You don’t have a minimum balance requirement, and you don’t get hit with a fee for letting your balance get too low.

TIAA Bank – Great First-Year Interest Rates

TIAA Bank is one of the longest-standing online banks and consistently has some of the best introductory interest rates. Currently, their money market account is offering 4.75% for the first year. This gives them one of the strongest savings rates in the industry.

Here’s what you get with a TIAA online high-yield savings account:

• $5,000 Minimum Initial Deposit

• No Monthly Fees

• Basic Savings, CDs, and Checking Accounts Available

If you are looking for a solution to get competitive one-year interest rates, then TIAA Bank will be a good option for your needs.

Why You Need a High-Interest Savings Account

With so many options for storing your money and the low interest rates, a lot of my clients ask, “Why do I even need a savings account?” and honestly, that’s a great question.

The first reason is the obvious one – you get a slightly higher interest rate, and earning a little interest is better than no interest, right? But the interest you earn isn’t the only reason to find a good online savings account.

The other reason is a little more obvious: it forces you to save that money. Federal regulations limit the number of times that you can withdraw money from your account. If you can’t keep taking money out of the account, it’s going to encourage you to save.

There are hundreds of thousands of places where you can open up a savings account, but all of them basically break down into three categories: traditional savings accounts, online savings accounts, and kids savings accounts.

Many of these also offer a money market. If the MMA account offers a higher interest rate, then we will list that instead of the savings account option.

Saving for future purchases and expenses is one of the best things you can do to stabilize your financial situation.

Rather than using credit spending (and winding up in debt if you don’t pay off the balance each month), identifying your spending goals and saving up can help you buy the things you want — without ruining your financial future.

You should also understand that keeping an emergency fund available for a rainy day can be a good idea. What happens when the car needs repairs, or you need to replace the dryer? An emergency fund can protect you from the need to borrow in order to meet these unexpected expenses.

While a high-yield account would be nice, it’s important to recognize that your savings account isn’t meant to help you build wealth so you can fund your retirement (learn more about investing for retirement through a Roth IRA).

Rather than expecting high yields from your savings account, here’s how to think about it:

Liquidity

One of the biggest advantages of a savings account is liquidity. Because it’s cash, it’s instantly available for you to use. You don’t have to sell shares and what for the proceeds of the sale or jump through hoops to get your money. It’s available immediately.

This is what makes savings accounts ideal for an emergency fund. You know you can get to the money immediately if you need it. The liquidity also makes it great for accessing your money for a short-term investment goal.

You know that you will be able to pay with your savings account when you need to, or you can use the money to instantly pay off your credit card after you’ve used it to book your vacation (and earn points).

Safety

The other reason to incorporate a savings account into your financial strategy is so that you can keep the money safe. You don’t have to worry about losing your vacation money in the stock market when you keep it in a savings account.

You know the money is there when you need it for an emergency with your savings account. Plus, if your account is with a federally insured institution, you don’t have to worry about losing your money if the bank fails.

You can also think of your savings account as a way to help you save for short-term goals. As long as you incorporate a savings strategy along with an investing strategy that allows you to build wealth over time, you should have a balanced approach to your overall financial plan.

Whether you are saving up an emergency fund or just preparing to spend money on a nice vacation next year, you need a great savings account to hold your money.

What to Look For in an Online Savings Account

There’s no need to let your money sit in an account that doesn’t pay any interest at all. That’s one of the worst things you can do with your money because the value of your money will slowly go down due to inflation.

You need to generate some interest to combat inflation just to maintain the spending power of the money you have. However, even a high-yield savings account is unlikely to beat inflation.

Then again, interest isn’t everything. There are other considerations as well when choosing from among the top savings accounts.

Interest – High Yield

For me, interest comes first. Generating interest helps protect your money from inflation. Even if inflation is really low, getting some small interest on the side will help you bolster your account over time.

Interest isn’t the only important factor, but it never hurts to have someone paying you to store your cash with them.

Don’t get too caught up in chasing yields, however. Most of the time, the difference between accounts isn’t enough to prompt you to move your money every time a bank comes out with a newer, higher yield.

Customer Service

Having great customer service is another key aspect of a great savings account. If you earn a little bit more interest at one bank, but the customer service is awful, you will probably regret it. I like to stick to firms that have solid reputations or that I’ve had previous experience with.

The accounts on this list all offer good customer service and a good user experience.

Access

You want easy access to your funds. If you have to jump through a lot of hoops to pull money out of your emergency fund during an unexpected setback, it defeats the purpose. Other considerations when you look at savings account access:

Do you have to go to a physical branch? Or can you transfer funds online using your smartphone? What about ATM access?

Can you withdraw money at ATMs across the country for free, or at least get reimbursed for the fees you do pay? Access can be a tiebreaker when you are comparing two very similar banks.

Types of Savings Accounts

There are a few different types of savings accounts, but don’t worry; the main idea is still the same.

Bank Savings Accounts

This is the traditional idea of a savings account at a physical bank. You can walk into any local branch of a bank and open up one of these savings accounts. Normally, these accounts have maintenance fees and low-interest rates.

Online Savings Accounts

These accounts work almost identically to a traditional savings account, except you manage the whole account strictly online. In most cases, online savings accounts offer slightly better interest rates because they have lower overhead costs.

Savings Account for the Kids

Maybe you want to open up a savings account for your kids; that’s a very good idea! Some banks have savings accounts specifically designed for kids, but don’t worry; you’ll have control over the account. It’s a great way to teach your children about managing money.

The Bottom Line – Finding the Best High-Interest Savings Accounts

What’s more exciting than online savings accounts these days? Not much, as online banking has revolutionized the market and brings convenience, security, and higher rates of interest.

Gone are the days when leaving your money in a passbook account was the only real viable option – now you can find some of the best high-yield savings accounts online, meaning you could be well on your way to achieving your financial goals in no time at all.

Researching online has never been easier or more rewarding!

The post Best High-Interest Savings Accounts appeared first on Good Financial Cents®.

Recent figures from the Federal Deposit Insurance Corporation (FDIC) show that the average savings account rate and the average money market account rate are currently at 0.64% APY as of writing.

Still, there are a small handful of banks paying interest rates on money market accounts that rival those of certificates of deposit (CDs). And unlike CDs, money market accounts don’t tie your money up for a year or more just so you get the highest bank interest rates.

Below, we’ve found the most lucrative money market offers available now, and share important account details to know before opening a money market.

Although Axos Bank currently offers the best return among money market accounts we considered (they are currently paying 5.26%), it’s wise to take a look at Discover, CIT Bank, Nationwide, and BBVA to find the best product for you.

The Most Important Factors for Money Market Accounts

• Availability: While brick-and-mortar banks have money market accounts, you might find competitive rates and terms through online institutions. Online banks tend to offer higher interest rates than their competition.

• Minimum Deposit Requirements: Compare banks based on your minimum deposit amount to find the best money market rates for your savings. You might also get a higher rate for a larger deposit, but the thresholds for higher earnings vary widely.

• FDIC Insurance: Make sure any money market account you open is backed by the FDIC for amounts up to $250,000, which is standard. All of the money market accounts that made our ranking offer FDIC insurance.

• Debit Card Access: If you want to access your money market funds with ease, having a debit card helps. Check whether the money market account you’re considering offers a hassle-free way to access your money when you need it.

The Best Money Market Accounts of 2024

The best money market accounts of 2024 are easy to open and use while offering a high return rate. The following banks made our ranking based on their money market rates and other considerations:

• Discover

• BBVA

• CIT Bank

• Save Better

• Axos Bank

• Nationwide

Money Market Accounts – Reviews 

Although the money market accounts on this list feature the best rates and terms, there are some differences among them. For example, factors like minimum deposit requirements can vary, and money market accounts often have their own unique perks.

The following money market account reviews can help you decide between today’s top options.

Discover

Discover offers quite a few popular banking products outside of its popular cash-back credit cards. Along with home equity loan products and personal loans, it offers money market accounts with no minimum balance fees or other hidden fees.

Standout features that come with Discover money market accounts include access to 60,000 ATMs nationwide, a free debit card, and access to the Discover mobile app.

Discover also gives you the option to open your money market account online, but you can get started over the phone as well.

BBVA

BBVA money market accounts don’t have the best rates, but its $25 minimum deposit requirement to open an account makes up for it. That makes BBVA a much better choice if you want to earn interest but have limited savings right now.

Money market accounts from BBVA also come with up to six free withdrawals per month, and you can manage and oversee your account with ease using the BBVA mobile banking app.

CIT Bank

CIT Bank is a popular online bank that’s known for its checking accounts and savings accounts. However, it also offers a rewarding money market account with high rates.

Money market accounts from CIT Bank don’t have any hidden fees or monthly maintenance fees. You can also open your account with as little as $100, so there’s a fairly low barrier of entry to get started.

The best part is you’ll earn the same money market rate regardless of how much you keep in your account.

Save Better

Save Better is also a popular online bank that offers a very attractive offer on their cash deposits. Their products and offerings are through Axos Bank (read below) and are extremely competitive among other financial institutions.

Their Reward Money Market program offers check-writing capabilities just like any other money market account. There is no minimum deposit to get started with access to your funds 24/7 with their user-friendly online tools.

Axos Bank

Axos Bank is another online institution with an attractive money market account offer. This bank lets you open a money market account with no fees involved. You’ll also earn the same return regardless of how much money you keep in your money market account.

You get access to a free debit card when opening your account. It also offers a $20 referral bonus for each friend you refer to Axos who opens an account and meets minimum requirements.

Nationwide

Nationwide offers a generous money market account rate. Interestingly, its money market product is managed by Axos Bank.

The Money Market Plus account from Nationwide lets you earn a generous return on your money market deposits, yet you can also get up to $10 in domestic ATM fees reimbursed per month.

Another benefit of Nationwide is it offers the same high money market rate regardless of how much you keep in your account. You also get access to digital banking tools, like online bill pay and mobile check deposit.

How We Found the Best Money Market Accounts

While interest rates are easily the most important factor to consider when comparing money market accounts, we dug a little deeper to make sure all the banks in our ranking are reputable and fair.

Here are the main factors we took into consideration while looking for the best money market accounts for 2024:

• Minimum Balance Requirements. The best money market accounts have reasonable minimum requirements to open an account and reasonable minimum daily balance requirements (or no requirements) after that.

• Ease of Setup and Accessibility. We looked for accounts that make it easy to get started, as well as those that don’t punish you if you need to access your funds.

• FDIC Insurance. We only included money market accounts that have FDIC insurance.

• Fees. Money market accounts with no account opening fees or monthly maintenance fees were given preference. In the event a maintenance fee is charged, we only include banks that make it possible to have monthly fees waived.

• Physical Access to Funds. Finally, we gave higher marks to money market accounts that offer a free debit card and access via a large ATM network. This access becomes important if you need to get your hands on your money market funds in a hurry (i.e., during an emergency).

What to Know About Money Market Accounts

Before opening a money market account, you should understand how these accounts work and how they stack up to online savings accounts. Here are some of the most important factors to keep in mind.

• Money market accounts are actually mutual funds. According to the U.S. Securities and Exchange Commission (SEC), money market accounts are a type of mutual fund that was originally developed in the 1970s. These accounts were intended to give investors the chance to invest in securities that offer a better rate than traditional savings accounts.

• Money market accounts at a credit union are not FDIC-insured. If you open a money market account at a credit union, your funds are insured by the National Credit Union Administration (NCUA).

• Money market returns are guaranteed. Although money market rates aren’t as high as they once were, these accounts offer a guaranteed return with zero risk.

• You won’t get rich with a money market account. If you keep $10,000 in a money market account for 10 years and you earn 0.60% APY, you’ll end the decade with a total of $10,669. If you want to earn passive income, plenty of other strategies can help you secure a better return.

Summary: Best Money Market Accounts of 2024

Bottom Line – Best Money Market Accounts of 2024

In 2024, despite an average APY of 0.33%, there remains a selection of banks offering competitive money market account rates that rival certificates of deposit without a long-term commitment. 

Axos Bank leads the pack with a generous 5.25% return, while other institutions like Discover, CIT Bank, BBVA, and Nationwide also stand out for their appealing offerings. 

Prospective account holders should weigh factors like minimum balance requirements, accessibility, FDIC insurance, fees, and physical access to funds. 

It’s essential to remember that while money market accounts offer guaranteed returns, they aren’t a path to significant wealth but a secure, low-risk investment option.

The post Best Money Market Accounts of 2024 appeared first on Good Financial Cents®.

No matter the type of business you’re in, you need a checking account in order to stay on top of bills and invoices. You also need an account in order to accept and deposit payments from customers or clients, and you probably need a debit card that lets you pay for business-related expenses directly.

Get started with our top pick: Chase Business Checking

The best business checking accounts make it easy to create a “home base” for your business finances — one where you can accept payments, stay on top of payroll, and access important banking benefits. Some of the best business checking accounts even offer initial cash bonuses you can earn if you sign up and set up qualifying direct deposits or meet minimum balance requirements. Most importantly, many of the top business checking accounts available today function mostly online, meaning you can open an account virtually and without ever leaving your home.

Best Business Checking Accounts of 2024

As a business owner, you have a lot of issues to worry about. Your business checking account shouldn’t be one of them. We compared all the top business checking accounts available today to find the ones with the best features and benefits with the lowest fees (or even no fees).

If you need a new checking account for your business, you should start your search here:

• – $300 cash bonus available when opening an account with qualifying activities
• – Monthly variable fee waived with a minimum qualifying balance or qualifying activities
• – Access 16,000 ATMs and nearly 4,900 branches
• – Unlimited electronic deposits

Learn More

• -No account fees or hidden fees
• -Earn 1.0% APY on up to $100,000 in your account
• -FDIC-insured for at least $250,000
• -Unlimited transactions
• -Live customer support
• -Make transfers to other accounts with ease

Learn More

• -No account fees or hidden fees
• -No minimum balance requirements
• -Manage money, initiate transfers, and pay bills on the go with the mobile app
• -Get all your ATM fees reimbursed
• -FDIC-insured

Learn More

• -No monthly maintenance fees or minimum balance requirements
• -Access over 3,100 ATMs and 1,100 bank branches nationwide
• -Free 200 transactions each month

Learn More

• -Earn .80% APY on deposits when you meet minimum daily balance requirement
• -Unlimited domestic ATM fee reimbursements
• -$100 minimum deposit required to get started
• -Get up to 50 free transactions per month

Learn More

• -Access over 43,000 ATMs nationwide without a fee
• -Most transactions are unlimited
• -No monthly service charges or account minimums
• -Mobile deposit available

Learn More

• -Broad ATM network with more than 39,000 available nationwide
• $35 monthly fee, waived with an average daily balance of $25,000 or more
• -Unlimited transactions each month
• -Free online bill pay and business debit cards

Learn More

• -Qualify for 150 free transactions per statement cycle ($.50 per transaction thereafter)
• -25 free cash deposits per statement cycle
• -Access over 3,000 branches
• -Access U.S. Bank, MoneyPass, and participating 7-Eleven store ATMs.

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Best Business Checking Reviews

The best business checking accounts offer a ton of perks and features for small businesses without any burdensome fees. The following reviews go over the highlights of each account including checking features each offers, monthly fees (and how to avoid them), and any bonus offers available.

Chase Business Checking

Chase Business Checking is popular with consumers thanks to its many user-friendly features and its initial bonus offer. Currently, you can get $300 as a new Chase business checking customer, when you open a Chase Business Checking® account with qualifying activities. If you read the fine print, the requirements for the cash bonus are very reasonable. All you have to do is open an account, deposit at least $2,000 in new money within 20 days, and complete five debits or direct deposits within 60 days. Once you complete the qualifying activities and maintain the balance for at least 60 days, the bonus is yours.

Other perks you can expect with Chase Business Checking include convenient access to 16,000 ATMs and almost 4,900 bank branches nationwide, unlimited electronic deposits at no charge, access to online banking and bill pay, and 24/7 customer service. Chase Business Checking does charge a  variable fee on business checking accounts. The requirements to waive the fee vary by product.

Get $300 Cash Bonus with Chase Today!

Highlights:

• Get $300 as a New Chase Business Checking Customer, When You Open a Chase Business Checking® Account With Qualifying Activities

• Monthly Variable Fee Waived With a Minimum Qualifying Balance or Qualifying Activities.

• Access 16,000 ATMs and Almost 4,900 Bank Branches Nationwide

• Unlimited Electronic Deposits

BlueVine

BlueVine is well known for its small business loans, yet this company also offers a very lucrative business checking offer. Customers can get unlimited transactions and access to live support, and there are no account management fees or hidden fees.

Money kept in a BlueVine business checking earns 1.0% APY, although this rate only accrues on the first $100,000 you have on deposit. You get two free checkbooks with this account, so you can use it to pay bills that aren’t easily paid online. You can also get fee-free access to your money at more than 38,000 MoneyPass ATMs nationwide, and your deposits are FDIC-insured up to $250,000.

Highlights:

• No Account Fees or Hidden Fees

• Fdic-Insured for at Least $250,000

• Earn 1.0% APY on up to $100,000 in Your Account

• Unlimited Transactions and Live Customer Support

• Make Transfers to Other Accounts With Ease

Novo

Novo offers small-business checking that is geared to business owners as well as freelancers and entrepreneurs. Its business checking account comes with no account fees and no hidden fees, and there are no minimum balance requirements to get started or maintain your account.

Novo will reimburse your ATM fees at any ATM nationwide, so you don’t have to worry about driving around town trying to find an in-network ATM. The mobile app Novo provides helps you manage your money on the go, but also to pay bills and transfer money. 

You can also get free ACH transfers, mailed checks, and incoming wires. Opening an account takes only a matter of minutes, and rest assured that your small-business checking accounts from Novo are also FDIC-insured. 

Highlights:

• No Minimum Balance Requirements

• No Account Fees, Monthly Fees, or Hidden Fees

• Mobile App Lets You Manage Money, Initiate Transfers, and Pay Bills on the Go

• Get All Your ATM Fees Reimbursed

• FDIC-Insured

Citizens Bank Clearly Better Business Checking

If you live in an area where Citizens Bank has a presence, you should also check out Citizens Bank Clearly Better Business Checking. This account comes with no monthly maintenance fee and no minimum balance requirement. You also get your first 200 transactions for free each month, which is more than enough for most small businesses.

For the most part, this business checking account is best for someone who lives near qualifying ATMs, posts less than 200 transactions each month, and doesn’t want to pay any fees for a business checking account.

Highlights:

• No Monthly Maintenance Fees or Minimum Balance Requirements

• Access Over 3,100 ATMs and 1,100 Bank Branches Nationwide

• Free 200 Transactions Each Month

Axos Bank Business Interest Checking

Most business checking accounts don’t offer interest on deposits, but Axos Bank Business Interest Checking is one of the few that does. With this account, you’ll earn .80% APY on your balance without a monthly maintenance fee provided you maintain an average daily balance of $5,000. You can also access online and mobile banking, including bill pay and the option for remote deposits.

Other benefits of Axos Bank Business Interest Checking include the fact you get unlimited domestic ATM fee reimbursements and your first set of 50 checks for free. You also get up to 50 free transactions per month ($.50 each thereafter) and up to 60 remote deposits per month. Finally, you only need an initial deposit of $100 to get started with this account.

Highlights:

• Earn .80% APYon Deposits When You Meet Minimum Daily Balance Requirement

• Unlimited Domestic ATM Fee Reimbursements

• $100 Minimum Deposit Required to Get Started

• Get Up to 50 Free Transactions per Month

BBVA USA Business Connect Checking

BBVA USA Business Connect Checking makes business banking easy thanks to its online and mobile access and broad ATM access. There are no monthly service charges associated with this account, and there are no minimum balance requirements, either. You can access all BBVA Compass, Allpoint, and participating 7-Eleven ATMs as well, so you should have easy access to your money no matter where you live.

Mobile deposit is available, and you can qualify for a debit card that works in conjunction with your checking account at no additional charge. Most transactions are unlimited each month but do get only five in-branch withdrawals or process checks combined per month for free. You only need $100 to open this account as well, so it’s easy to get started.

Highlights:

• Access Over 43,000 ATMs Nationwide Without a Fee

• Most Transactions Are Unlimited

• No Monthly Service Charges or Account Minimums

• Mobile Deposit Available

Capital One Spark Business Checking

While Capital One is known for its popular personal and business credit cards and its Capital One 360 checking account, this bank also offers an extremely popular checking account for small businesses. Capital One Spark Business Checking, as it is called, promises to “unlimit your business” with free unlimited transactions each month. Your first five domestic wires are also free each month, and you can access your money faster with next day availability.

A rather steep monthly service fee of $35 applies with this account, but you can have your fee waived if your 30 to 90-day average balance is $25,000 or more. You also get free online bill pay and free debit cards for your account, and you’ll have access to over 39,000 Capital one and Allpoint ATMs nationwide.

Highlights:

• Broad ATM Network With More Than 39,000 Available Nationwide

• $35 Monthly Fee, Waived With an Average Daily Balance of $25,000 or More

• Unlimited Transactions Each Month

• Free Online Bill Pay and Business Debit Cards

U.S. Bank Silver Business Checking

Silver Business Checking from U.S. Bank is another account that can make sense for small businesses in nearly any field. This account comes with 150 free transactions per statement cycle, 25 free cash deposits per statement cycle, and the option for remote check deposit.

This account also comes with online and mobile bill pay, and there are no monthly maintenance fees. Also, note that U.S. Bank has over 3,000 branches that are mostly on the East Coast, so you could do some of your banking in-person if you live near one.

Highlights:

• Qualify for 150 Free Transactions per Statement Cycle ($.50 per Transaction Thereafter)

• 25 Free Cash Deposits per Statement Cycle

• Access Over 3,000 Branches

• Access U.S. Bank, Moneypass, and Participating 7-Eleven Store Atms.

How We Chose the Best Business Checking Accounts

The business checking accounts listed above are some of the absolute best available today, but we didn’t come up with this list out of thin air. After considering more than 30 business checking accounts in existence, we formulated our list of top picks based on the following factors:

Low or No Fees

It’s not uncommon for checking accounts to come with monthly maintenance fees, but we still think these fees should be avoided when possible. As a result, we only considered business checking accounts that don’t charge any monthly fees or have fees you can avoid with qualifying activity. We also made sure the qualifying activity was “reasonable” and realistic for most small businesses to achieve.

Broad ATM Network

Since most business owners need an easy way to access cash in their accounts, we gave preference to the business checking accounts with broad ATM networks. We also considered banks that offer free debit cards for account holders since this lets them access their funds and make purchases directly from their accounts.

Online and Mobile Access

In today’s modern world, you really need to work with a bank that lets you manage your accounts, pay bills, and keep up with transactions on the go. We only considered banks with a strong online and mobile presence for this list, although some banks with brick and mortar branches also made the cut.

Reasonable Limits on Transactions

We also kept our eye out for unreasonable limits on transactions, which is why the banks on our list are so specific. While some of the banks that made our list do limit transactions, we found their limits reasonable for most businesses.

Choosing the Best Business Checking Account — Factors to Help You Decide

All the business checking accounts that made our list are good ones, but it’s likely a few of them would suit your needs better than the rest. Here are the factors you should consider and compare before you sign up.

Local ATM Access

If you want to be able to access your funds with a debit card, you’ll want to make sure your bank offers ATMs close to where you live or work. Many banks have extremely broad networks, but that doesn’t mean they have ATMs in your area. The best way to find out is to head to each bank’s business page or ATM search page to check. If you don’t make sure you’ll have access to local ATMs, you could wind up paying a lot more in foreign ATM fees than you want.

Access to Brick and Mortar Bank Branches

Do you bank online, or do you like to have access to a physical branch? This is a good question to ask yourself as you compare banks and all they have to offer. Some of the banks in our ranking have brick and mortar locations you could visit to make deposits and ask questions. However, others mostly operate online.

Features and Functions

Make sure you consider banks that offer the functionality you need the most, whether that’s access to a mobile app, remote deposits, or online bill pay features. The banks on our list tend to offer the standard features available today, but you should still double-check to make sure your new business checking account will let you bank the way you want.

Maintenance Fees

If a monthly maintenance fee is charged on accounts you’re considering, you should be able to have it waived with a minimum account balance requirement or minimum activity like direct deposits. Monthly maintenance fees are very common among business checking accounts, so they shouldn’t be a deal-breaker. Just make sure you are either comfortable with the fee or able to have it waived without too much effort on your part.

Transaction Limits

Finally, transaction limits are a real sticking point with many business checking accounts. This is especially true for businesses that have a ton of small transactions each month since even small transaction fees of $.50 each can add up fast.

If your business only has a handful of transactions each month, this detail may not matter a lot to you. Still, you should check your current business checking account to get an average of how many deposits and debits your business requires each month. From there, you’ll be able to choose a business checking account that offers enough free transactions to get you through each month.

Business Checking Account Best Practices

If you’re in the market for a new business checking account, that’s usually a good sign you’re on the right track. Having a separate account to manage your business income and payments to vendors can help you stay organized and avoid mixing personal and business funds, but it can also help you access powerful tools that can help you take your business to the next level.

Consider these tips as you select a business checking account and start using your account to help your business grow:

1. Use a Business Checking Account to Reach Goals Faster.

No matter the goals you have for your start-up or small business, a business checking account can help you get there faster. Not only can you save time by organizing your business finances under the umbrella of a new checking and savings account, but you can earn interest on your deposits and grow business wealth faster.

2. Consider Separate Business Accounts for Different Business Ventures.

Also, consider whether it makes sense to open additional business accounts if you come up with a secondary business idea and want to avoid intermixing funds. Since many business checking accounts don’t come with any fees, you can easily manage your accounts without having to pay extra for the privilege.

3. Pick up a Business Credit Card That Works in Conjunction With Your Business Checking Account.

Also check whether the bank you’re considering offers a business credit card, as many of the larger banks do. Chase, for example, offers popular business bank accounts but also travel and rewards cards for businesses that help people rack up cash back or flexible travel rewards for each dollar they spend.

4. Download Your Bank’s Mobile App and Sign Up for Regular Notifications.

Finally, consider downloading your bank’s mobile app if they have one. Not only will this help you check in with your balance and upcoming bills while you’re on the go, but you can sign up for notifications that will alert you when a deposit is made or your account balance is low.

In Summary: The Best Business Checking Accounts

Whatever your business goals may be, a good business checking account can help you organize and reach those goals even faster.

• Chase Business Checking

• BlueVine Business Checking

• Novo Business Checking

• Citizens Bank Clearly Better Business Checking

• Axos Bank Business Interest Checking

• BBVA USA Business Connect Checking

• Capital One Spark Business Checking

• U.S. Bank Silver Business Checking

These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.

The post The Best Checking Accounts for Your Business appeared first on Good Financial Cents®.

That’s right; my own bank is paying a fraction of the average savings interest rate….actually .01%. Even worse, my bank (U.S. Bank) has been paying close to the same paltry rate for years.

I think my bank hates me. Can you relate?

You can see exactly what I mean in the screenshot below. I have more than $329,000 in one of our savings accounts, and I only earned $2.88 in interest during the month I grabbed this photo.

That’s pretty sad when you think about it, but I know I’m not alone. Half the people reading this post are probably earning about that much on their savings, if anything at all. 

We all know that interest rates have been hovering at or near record lows for years, and banks can offer almost nothing as a result.

Fortunately, we don’t have to settle for earning next to nothing on our savings accounts. In fact, there are several banking alternatives to earn more on your savings than what a traditional bank will offer. 

One of the options I share in this post is paying 850X more than the average traditional bank!

Before we dive into the top banking alternatives, though, I do want to say how important it is to have an emergency fund. 

It’s always possible you’ll lose your job or face an unpredictable financial emergency, and your long-term savings could be the only thing that helps you avoid all kinds of financial mayhem (you can check out some of the best savings account rates here).

Some experts say you should have three to six months of expenses stashed away in emergency savings, and I tend to agree. However, I think you need to tailor the size of your emergency fund to your unique situation and needs. 

For example, you may want to have a bigger emergency fund if you’re self-employed or you have kids, whereas you can get away with a smaller e-fund if you’re single, you have really low expenses, or your job is extremely secure.

Either way, the banking alternatives I’ll dive into below are not for your core emergency savings. After all, you want your e-fund in a secure account with FDIC insurance. You may not earn a lot of interest with a regular bank, but you won’t lose any money from your savings, either.

Also, note that you can check out my banking alternatives podcast on Spotify if you prefer listening over reading. You can check out the podcast episodes here and here.

9 Banking Alternatives to Earn More Interest

With that in mind, the banking alternatives I recommend are for any excess funds you have in addition to your true emergency savings. This is money you won’t necessarily need in the next few years, so you can take on more risk.

Which banking alternatives am I talking about? I break down all nine of them below.

#1: Neobank

“Neobank” is somewhat of a hipster term used to describe an online-only bank that doesn’t have any brick-and-mortar locations. This doesn’t mean Neobanks isn’t real; it just means you won’t drive around and run into a physical bank location. 

And without a physical location to deal with, these banks have lower overhead. This means they can pay you more interest on your savings.

I recently read that there were more than 300 digital banks around the world. Some of the biggest include SoFi, which started off as a student loan refinancing company. 

Lending Club is one more online bank that has been around for a while. Lending Club used to be a peer-to-peer lender, but they now offer an online savings account that is currently paying a 0.60% annual percentage yield. 

#2: Treasury Inflation-Protected Securities (TIPS)

If you think inflation is only going up from here, Treasury Inflation-Protected Securities (TIPS) could provide an excellent place to stash your excess cash. 

TIPS automatically adjusts based on the CPI Index, which is the Consumer Price Index that measures the prices of different goods and services. This makes it another great banking alternative.

While some may disagree that TIPS is actually keeping up with inflation, you can go to TreasuryDirect.gov to read more about this investment option and other bonds that are issued by the government. 

TIPS are issued in increments of $100, so you have to have at least $100 to get started investing. Another major benefit of TIPS is the fact you don’t have to pay state or local taxes on your returns. Note: With TIPS, you do have to pay federal taxes on your gains.

#3: Online Investment Apps

Online investment apps (a.k.a. online brokerage services) are another great banking alternative that includes companies like Robinhood and M1 Finance. 

When most people think of these companies, they may automatically think of meme stocks or crypto investing. However, these apps also have a cash management account that pays a decent rate of return.

With Robinhood, for example, the cash management component of the app has a savings component that pays 4.90% APY for gold members. Not only that, but this account from Robinhood comes with no hidden fees. 

You can even use your account to get cash at more than 75,000 fee-free ATMs nationwide. Better yet, Robinhood includes FDIC Insurance on its cash management accounts.

M1 Finance also boasts its own finance “super app” that will actually set you back $125 per year. However, this account pays a 1% interest rate, and you get a debit card that pays 1% cashback each time you use it.

While paying $125 per year for an online account and debit card can seem really high, keep in mind that you’ll earn 33X the national average savings rate on your deposits. 

Since you get 1% back on debit card purchases, you have the potential to make up for that fee in a hurry and still end up ahead.

#4: High-Yield Bonds

Most people think of bonds as being extremely safe, and they are. However, people purchase bonds a lot differently than they did several decades ago.

The baby boomer generation went out and purchased individual bonds directly from the issuer, whether they were municipal bonds or something else. However, many of today’s investors purchase their bonds through mutual funds or ETFs.

One example of a mutual fund with high-yield bonds is the American Century High-Income Yield Fund (NPHIX). The current yield on this fund is 6.38%, although this fund has more risk. This means it’s likely your balance will go up and down over time.

Another example is the Nuveen High Yield Municipal Bond Fund (NHMRX), which comes with a yield of 5.65%. Once again, this is a high-yield bond with higher risk, so you have the potential to see your balance fluctuate over the long term.

There are also quite a few ETFs with high-yield bonds, including the SPDR High-Yield Bond ETF (JNK), with a yield of 5.65%. This type of bond is considered a junk bond, so the JNK symbol on this one is actually kinda funny.

If you’re wondering where to buy high-yield bonds, you won’t have to look far. 

You can invest in high-yield bonds through all the regular online brokerage firms and apps, such as M1 Finance, Robinhood, and E*TRADE. These could all be great alternative banking alternatives for excess funds.

#5: High-Yield Stocks

When it comes to high-yield stocks, they’re structured so they have to pay out a decent dividend, making them a great alternative to traditional banking. 

Some of the dividends on these stocks give you a return that is much higher than you’re earning at your bank, although there is more risk involved as well.

For the most part, I’m talking about stocks that are listed within the Dividend Aristocrats. This is a list of 65 dividend stocks that are listed in the S&P 500 with a history of increasing their dividend over the last 25 years. 

This mostly includes more established, blue-chip-type companies that have a long history of creating returns.

For example, AT&T is a part of this group with a dividend yield of 7.79%. Another one is McDonald’s, which currently has a dividend yield of 2.11%. Verizon is also included, with a dividend yield of 4.79%.

• Read also: How to Invest in Dividend Stocks

#6: Blended Portfolio

The sixth banking alternative I want to talk about is having a blended portfolio that includes some of the options above. 

For example, you can take some of your excess savings and invest in high-yield stocks, then throw another portion of your funds into high-yield bonds. 

This strategy is easy if you already have an account with a platform like Robinhood or M1 Finance. Once your cash management account is open and you get accustomed to using these apps, you can start branching off into other types of investments with ease.

Just keep in mind how some apps can work better for creating a blended portfolio. With Robinhood, for example, you would have to choose your own funds and rebalance them over time. 

However, M1 Finance offers investment “pies” that are expertly crafted to suit different types of investors based on how much risk they want to take.

Betterment is another online platform that makes it easy to tailor your investment portfolio to your timeline and goals. 

However, this company is a robo-advisor that uses technology to help you select investments for your portfolio. For that reason, Betterment is better for people who want access to investment management services they can’t get with a regular investing app.

Whatever platform you decide to use, a blended approach can help you earn a higher rate of return on your savings without “betting the farm” on one specific strategy.

#7: Real Estate Investment Trusts (REITs)

While some individual stocks are classified as REITs, that’s not really what I’m talking about here. Instead, I’m talking about options that let you get exposure to real estate with the promise of a nice yield.

The first option I want to talk about is actually an ETF. The iShares US Real Estate ETF (IYR) has returned 6.17% over the last ten years with a dividend yield of 2.94%. 

That’s not half bad at all, especially when you consider that you never have to set foot into the buildings you’re investing in. 

And really, that’s the major benefit of investing in real estate ETFs. You get exposure to the real estate market without having to hunt for properties or deal with the grunt work of being a landlord. 

You are putting your money at risk, but you have the potential to score a much higher return.

Another option I love and use myself is called Fundrise. With this online real estate platform, you get to invest directly into a REIT without dealing with the middlemen charges involved in ETFs.

I started investing in Fundrise back in 2018, so I have had my account for several years now. Crazy enough, my current all-time return is 13.2%, which you can see in the screenshot below.

Another cool thing about Fundrise is the fact you don’t have to have a huge amount of cash to get started. The minimum investment with Fundrise starts at just $10, and their basic starter level is just $1,000. 

This means you can start investing in real estate with a fraction of the cash you would need to invest in physical property. 

Better yet, Fundrise makes it easy to get a handle on the actual properties you’re investing in, whether that includes a mall, an apartment building, or some sort of commercial rental property.

If you’re considering this option, make sure to read my Fundrise review.

#8: Short-Term Note

To take advantage of banking alternative #8, you need to be an accredited investor. 

This means you need to make $200,000 per year on your own or $300,000 with your spouse, and you need a net worth of more than $1 million dollars, not counting the value of your primary residence.

If you meet these criteria, keep on reading about Short-Term Notes and how they work. If not, feel free to move on to banking alternative #9!

Either way, short-term notes are offered through companies like YieldStreet. With a short-term note from this online platform, you can earn 40X the national average money market yield or an annualized yield of 4%.

These notes come free of fees and expenses, and they’re a short-term product with liquidity offered in as little as six months. Short-term notes from this company also pay monthly interest payments directly to your YieldStreet wallet.

While these investments are targeted at accredited investors with big portfolios, the minimum investment amount in the YieldStreet Short Term Note Series XLIV is just $500. That means you can get started with a relatively small amount and then see how it goes from there.

#9: Crypto Savings Accounts

Finally, let’s talk about how to make money on crypto you have without actually selling it. Crypto savings accounts pay you a yield on your crypto deposits just like you earn interest on a regular savings account. 

I heard about this from another investor several years ago, and it almost seemed too good to be true. 

In addition to other crypto platforms, I have an account with a company called Celsius, which I opened upon recommendation from a friend.

I currently have just under $200,000 in my account from Celsius, which is paying a yield of 8.5%. Interestingly, Celsius pays out their interest weekly instead of monthly like other exchanges.

Note: On July 13, 2022, Celsius Network and certain of its affiliates filed for voluntary Chapter 11 bankruptcy.

The Bottom Line: 9 Higher-Paying Banking Alternatives to Ditch Your Bank

I hope this list of banking alternatives has you thinking about your money and how to make it grow. After all, it’s only natural to want to earn a higher return on your savings, whether we’re talking about your emergency fund or other cash you have stashed away for the long term.

With that being said, it’s crucial to remember that higher yields always equal a higher level of risk. Alternatives to traditional banks may offer you more interest on your deposits, but you’re giving up some security along the way.

The post Ditch Your Bank: 9 Banking Alternatives That Pay More appeared first on Good Financial Cents®.

The information revealed in our analysis isn’t intended to make you feel insecure in any way. Instead, it’s designed to help set parameters that will enable you to see how you are doing and to make improvements where you believe it’s necessary.

We hope you like numbers because we have plenty of them! They’re a necessary evil, and they go with the territory when it comes to personal finance. We’re going to present statistics concerning multiple topics relating to income, debt, savings and budgeting, and financial planning.

Income Statistics

Median Household Income

The median household income nationwide is $79,900. However, there is a wide variation between the individual states. The following median household income statistics are provided by the U.S. Department of Housing and Urban Development as of April 18, 2022:

Have you ever wondered where your income falls among wage earners nationwide? For example, you may be interested to know that if your household income is over $200,000 per year, you’re among the 11.9% wealthiest households in the country.

According to Statista, the income distribution in the U.S. is as follows (for 2022):

According to the U.S. Census Bureau, 11.5% of the population – or about 37.9 million people – were below the poverty line in 2022.

According to the U.S. Office of the Assistant Secretary for Planning and Evaluation (ASPE), the poverty line for 2023 is as follows (based on annual income by household size) for most of the country:

• One person – $14,580
• Two people – $19,720
• Three people – $24,860
• Four people – $30,000
• Five people – $35,140
• Six people – $40,280
• Seven people – $45,420
• Eight people – $50,560

Based on the table for “Median Household Income Per State” provided by the U.S. Department of Housing and Urban Development in the first section above, the top five richest states in the USA are:

• District of Columbia, $144,800
• Massachusetts, $120,400
• Maryland, $117,500
• New Jersey, $117,500
• Connecticut, $112,600

Based on the table for “Median Household Income Per State” provided by the U.S. Department of Housing and Urban Development in the first section above, the top five poorest states in the USA are:

• Mississippi, $65,000
• West Virginia, $67,700
• New Mexico, $68,700
• Arkansas, $69,400
• Louisiana, $72,400

Impact of Education on Earnings

Your level of education also significantly impacts your income. According to the Bureau of Labor Statistics (BLS), income per education level for 2022 is as follows:

Earnings by Age Bracket

According to the U.S. Bureau of Labor Statistics, median earnings by age bracket are as follows (for the third quarter of 2023):

Expenses and Debt: The American Financial Burden

Consumer Spending Patterns

Average annual consumer spending in the USA was $72,967 in 2022, according to the Bureau of Labor Statistics.

The biggest individual category expenses were:

• Housing, $24,298
• Transportation, $12,295
• Food, $9,343
• Personal insurance and pensions, $8,742
• Health, 5,850

Reality of Consumer Debt

The state of consumer debt in the United States is both substantial and multifaceted, as indicated by statistics from the Federal Reserve Bank of New York for the third quarter of 2023.

The total consumer debt has reached a staggering $17.29 trillion, encompassing home mortgages, student loans, credit cards, and auto loans. Drilling down into these figures, the nation’s credit card debt accounts for $1.079 trillion of this total.

On average, a family carries $6,120 in credit card debt, with 45.20% of American families having some level of credit card debt. The interest paid by the average American household on credit cards is a high 22.77% annually.

This figure suggests a potential lack of awareness among consumers about the total interest they pay due to the complexity of managing multiple credit cards and the fluctuating nature of balances and interest rates.

On the education front, student loan debt has surged to a record $1.77 trillion at the outset of 2023, with about 45.3 million students and graduates owing an average of nearly $30,000. Parent borrowers have taken on an average debt of $37,200 to finance their children’s education.

Bankruptcy also features prominently in the American financial landscape. Annually, 418,724 Americans file for bankruptcy, with personal bankruptcies constituting 403,000 of that number.

Chapter 7 bankruptcies, which entail the liquidation of assets, accounted for 239,125 cases, signifying complete insolvency. The remaining 173,362 were Chapter 13 bankruptcies, often involving reorganization and installment plan settlements.

These figures provide a stark illustration of the financial challenges facing many Americans.

Savings and Financial Planning: Are Americans Prepared?

Savings and Emergency Funds

Recent surveys and financial reports shed light on the state of American savings and budgeting behaviors, painting a somewhat concerning picture of the financial stability of many households.

According to Statista, as of the latest data, 12% of Americans have no savings at all, highlighting a significant portion of the population potentially vulnerable to financial emergencies.

Further emphasizing this vulnerability, a 2023 CNBC survey revealed that 62% of Americans are living paycheck-to-paycheck. Alarmingly, this hand-to-mouth existence spans across income levels, including 10% of households with annual incomes exceeding $100,000.

In terms of financial planning, Nerdwallet reports that only 74% of Americans maintain a budget, suggesting that a quarter of the population does not actively manage their spending against their income.

This lack of financial oversight may contribute to the stark reality that fewer than half of Americans — under 45% — have sufficient savings to cover an unforeseen $1,000 expense.

Instead of having a financial cushion, many would turn to credit cards, personal loans, or family and friends for financial assistance in such scenarios. The consequences of these precarious financial practices become further evident in the amount Americans pay in overdraft fees.

In 2022, individuals paid out $7.72 billion in such fees, with the burden primarily falling on those already identified as financially vulnerable, according to the Consumer Financial Protection Bureau.

When examining the average savings per American family, there’s a vast discrepancy at the state level. As of 2023, the national average savings stood at $65,100.

However, this average does not reflect the financial health of all states, with Arkansas averaging the lowest at $1,664 and the District of Columbia the highest at $2,806, suggesting significant regional disparities in economic well-being.

Retirement Preparedness

The landscape of retirement savings in the United States varies considerably by age, as detailed in the 2022 Federal Reserve data. The median retirement savings for American households stands at $87,000.

However, when these figures are broken down by age, it becomes evident that younger Americans, specifically those under the age of 35, are at a different stage in their retirement planning, with a median savings of $18,800.

The benchmarks for how much an individual should have saved for retirement by specific age brackets are not universally fixed and tend to be somewhat subjective. The general guidance is predicated on one’s current income, presuming it is adequate to manage living expenses comfortably.

This income is then multiplied by a certain factor intended to result in a sufficient nest egg by the time one retires at age 65. For instance, by the age of 40, it is suggested that one should have saved approximately 1.5 to 2.5 times their current annual salary.

As individuals progress through different age brackets, the recommended savings multiplier increases to ensure that retirement savings grow in proportion to the approach of retirement age.

American Financial Landscape: A Comprehensive Overview of Savings, Budgeting, and Retirement Preparedness

The Bottom Line – Personal Finance Facts and Statistics

The landscape of personal finance in the United States is as diverse as its population. Median household incomes fluctuate significantly across states, revealing a country of economic contrasts.

Education continues to be a powerful determinant of earning potential, with higher levels of education correlating with increased income. However, despite reasonable earnings, many Americans are burdened with considerable debt and lack the savings necessary to weather financial emergencies.

The state of retirement savings varies widely by age, emphasizing the need for early and consistent financial planning. The statistics presented underscore the importance of financial education and the development of robust personal financial management skills.

They highlight both the challenges and opportunities that lie within managing personal finances, pointing to a need for individual responsibility and systemic solutions to support Americans in achieving financial stability and security.

The post Personal Finance Facts and Statistics appeared first on Good Financial Cents®.

It provides parents with peace of mind knowing that their teen’s purchases are supervised, allowing them to set budgets or limits on spending, keep track of purchases in real time, and receive purchase notifications right away so they can have conversations about responsible budgeting.

The debit card also comes with helpful features such as rewards and goal-setting tools that encourage teens to save money.

Key Takeaways

• The Greenlight debit card is marketed to families with kids — as in, families just like mine! I am currently using the Greenlight product with my two older boys, and the contents of this review reflect my experience.

• Families who choose the Greenlight debit card are getting more than just a debit card for their kids. This debit card comes with a mobile app for parents, as well as an array of tools that help plan spending, saving, chores, and more.

• The Greenlight debit card lets parents set controls or “rules” for debit card use, and parents can also get notified each time their kid spends money.

• This card also has a rewards component that lets kids earn cash back on their savings.

Teaching Your Kids About Money

As a financial advisor and certified money nerd, I have always known how important it is to teach kids about money. After all, finances are a big part of growing up, and our children will eventually be out on their own.

When we take the time to teach them about paying bills, budgeting, and saving for the future, we are helping set them up for success and teaching them basic life skills at the same time.

Fortunately, technology has made this part of parenting considerably easier! 

When I first started teaching my kids about budgeting and managing money, we were using the envelope system that was inspired by Dave Ramsey and Rachel Cruze.

My wife and I had a chore sheet with tasks our kids would have to complete each week, and they would get paid their “allowance” when they did all the work. From there, our kids kept their money in different envelopes — envelopes for spending, saving, giving, and specific goals. 

The Envelope System With 4 Kids

This worked pretty well for a while, but my kid’s financial lives have gotten more complicated as they have grown up.

For example, my oldest son is selling things on eBay, and I really wanted him to have his own eBay account instead of using mine. And obviously, cash in an envelope won’t help him run his eBay business at all. 

Not only that, but all four of our children are on our payroll, so they all have a tidy sum of money in their own checking and savings accounts already. Unfortunately, the bank we have all been using doesn’t offer a way for kids under 16 to access their money with their own debit card.

I initially thought about making my kids authorized users on my credit card, or even opening a new checking account and getting each kid a debit card of their own.

Ultimately, this is what led me to discover Greenlight debit cards for kids. With the option for each kid to have their own debit card and all the tools available to parents, I immediately signed my family up.

About Greenlight 

Greenlight was originally founded in 2014 as a fintech app for kids, but the product has improved quite a bit since its initial launch. First of all, parents should know that Greenlight is a lot more than a debit card for kids.

This debit card also works in conjunction with a mobile app that is equally accessible by parents running the account.

With a Greenlight debit card, you can:

• Set up chore charts for your kids.

• Help your kids set up savings goals through the app.

• Get notified each time your child makes a purchase.

• Automatically transfer money (i.e. their allowance) to kids through the app.

• Decide which stores your kids are allowed to spend money at.

• Let your kids “save their change” by rounding up their purchases and diverting it to savings (similar to the Acorns app).

• Decide whether kids can access cash at an ATM.

• Help your kids learn about investing through Greenlight + Invest and Greenlight Max.

Greenlight also has a rewards component kids and parents can take advantage of. For starters, Greenlight Max kids get 1% in cash back rewards on every purchase they make with their debit card.

Kids can also earn 1% to 2% on their savings depending on whether they are a basic member, a Greenlight + Investing member, or part of Greenlight Max.

One major benefit of Greenlight is that there is no minimum age for kids to get the app. This makes the product different from some other financial products targeted to teens, many of which set a minimum age of 8 to 16.

Greenlight Plans and Costs

While Greenlight offers a ton of tools that can help kids learn more about their finances, this product is far from free. Ultimately, this is one of the major downsides of Greenlight.

After all, there are other debit cards for kids and teens that don’t have a monthly fee, although they have a lot fewer features overall.

Either way, here’s a rundown of what you can expect to pay for a Greenlight plan depending on the tier of service you sign up for.

	Greenlight —$4.99 per month	Greenlight + Invest — $9.98 per month	Greenlight Max — $14.98 per month
Debit card for up to 5 kids
Education all
Core financial tools
Parental controls
Greenlight savings rewards	1%	2%	5%
Investing for parents	Lite
Investing for Kids
1% cash back on spending
Priority customer support
Protection, 3x
Family location sharing
SOS alert
Crash Detection

As you can see, Greenlight offers three different plans for families to choose from:

Greenlight Core: The basic Greenlight plan lets parents get a debit card for up to five kids. This plan offers basic tools for parents, like the ability to set up chore charts, send their kids money, and be notified when their kids make a purchase. Kids in this tier of the program will also earn 1% in rewards on their savings.

Greenlight Max: The Greenlight + Invest plan costs slightly more than the basic plan, yet families get the added benefit of investing tools.

This feature within the Greenlight app lets kids purchase fractional shares of their favorite stocks, and they can start investing with as little as $1 with no trading fees. Parents also get to approve every trade right from the app. Kids in this tier also earn 2% in cash back on their savings.

Greenlight Infinity: Greenlight Max is the top-tier plan, and it includes all the benefits of the basic plan plus the investing features.

On top of that, parents get benefits like priority customer support and kids also get 1% back on purchases made with their debit card and 5% in cash back on their savings. Other features like family location sharing, SOS alerts, and crash detection are included.

If you would rather listen to this post, and others here on the blog, please check out the Good Financial Cents podcast on Spotify.

My Family’s Experience With Greenlight

Signing up for Greenlight was a no-brainer for my family since the app was set up to solve all our problems by letting kids have access to their money.

In the meantime, the Greenlight app would also let me and my wife oversee every aspect of their financial lives, from the stores they were allowed to spend at to their chores and savings goals.

I also liked the fact I could instantly send money to my kids at any time, whether they completed a chore or they needed money for a school project or event.

My kids could even make crazy requests, like the time my son asked me for $10,000. It was all in good fun, but the answer to that one was definitely “no.”

With that being said, we encountered some bugs along the way. For starters, there are some maximum transfer and withdrawal amounts families should know right off the bat.

These include a maximum ATM withdrawal amount of $100 per day, per user. Not only that, the families can only withdraw a maximum amount of $500 from an ATM per month. 

That may not be a huge deal, but it’s worth knowing ahead of time! 

You may run into some glitches when you first get started. For example, I moved money into my son’s account the first weekend we signed up for Greenlight.

We were on our way to a sports car show, and we thought it would be fun to go to Walmart to try to take money out of his account. 

The thing is, he kept trying and couldn’t get it to work at all. We ended up going to three different ATMs to try to get cash out with his Greenlight debit card with no luck.

I submitted a ticket with Greenlight and got a call back right away, which is definitely a plus. However, this is where things got complicated fast.

When I spoke to customer service, I found out there are different “buckets” in play when you transfer money from a parent’s account to a kid’s Greenlight wallet. 

Specifically, each account has a general bucket that lets kids spend anywhere they want, but you have to click one more place to authorize letting them get cash out of an ATM. I hadn’t taken that step, and that’s why my son couldn’t get cash out of his account.

One final downside of Greenlight is the fact that you can’t get paid from this account through eBay. That won’t affect most families, but my oldest son buys and sells on eBay all the time.

To get around this, I had to set up a separate savings account just for my son’s eBay earnings. From there, I can log into my phone and transfer money from that account to his Greenlight account.

Again, that’s not a huge deal, but you should definitely make sure Greenlight is a useful solution for whatever your needs are. If your kid is getting paid from outside sources other than you, you should know whether that money can go directly to their Greenlight account.

As a side note, Greenlight does say kids with traditional jobs can get paid via direct deposit to their Greenlight accounts.

Specifically, they say that “their paychecks will automatically be deposited onto their Greenlight card in their Spend Anywhere spend control, even if they’re on vacation or out of town.”

With that being said, Greenlight is not set up to accept direct deposits from any government sources, including Social Security payments, federal tax refunds, state tax refunds, child support, etc., or from Paypal, Venmo, Apple Cash, or other money transfer apps.

How Does Greenlight Compare?

There are plenty of debit card products for kids out there, including the MONEY Teen Checking from Capital One and Chase First Checking Debit Card for Kids.

You’ll notice that other options don’t require a monthly plan fee, but they tend to offer fewer perks as well.

The chart below shows how Greenlight stacks up in terms of costs and features:

How to Sign Up for Greenlight

To sign up for a Greenlight account for your family, you’ll need to enter your phone number and be willing to download and use the mobile app yourself. Information you need to get started includes:

• Your email address

• Your mobile phone number

• Your child’s/children’s name(s)

• Your legal first and last name

• Your physical address

• Your date of birth

• Your Social Security number (SSN)

• A valid debit card or bank account

Whom Is Greenlight Best For?

I really like Greenlight despite its limitations. Before parents sign up, however, they need to read over all the fine print and purchase and withdrawal rules so they know what they’re dealing with.

I also recommend playing around with the app and learning how it works so kids aren’t left in a situation where they can’t access their money when they need it.

With all this being said, Greenlight is best for:

• Parents who want to oversee their kid’s chores, allowances, purchases, and savings in one place.

• Families who want their kids to have their own debit card for safety reasons.

• Parents who want a way to teach their kids how to manage their money early in life.

• Families who want to get their kids into investing early in life.

• Anyone who wants to be able to send their kids or teens money instantly through a mobile app.

• Parents who want to be notified each time their kid makes a purchase.

The Bottom Line – Greenlight Debit Card Review

Overall, Greenlight has a pretty intriguing value proposition. The program costs as little as $5 per month, and you get access to a ton of valuable tracking and goal-setting tools as well as debit cards for up to five kids.

If you want to pay a little more, you can also ensure your kid is earning cash back on their purchases. This app even makes it possible for your kid to learn about investing through fractional shares with your oversight, which is pretty cool if you ask me.

Still, there are other debit cards for teens out there if you take a look, and some of them don’t require a monthly fee at all. You should definitely compare all your options before you sign up. That way, you can find the best banking option for your kids and teens for a price you can afford.

How We Review Banking or Financial Institutions: 

Good Financial Cents undertakes a comprehensive review of banking and financial institutions, analyzing service offerings, customer satisfaction, and financial stability.

Our intention is to provide readers with a balanced overview, aiding them in their financial journey. We consistently emphasize editorial transparency.

We source data from these institutions, reviewing account offerings and other key services. This data, when combined with our in-depth research, forms the foundation of our evaluation. Institutions are subsequently rated on a range of criteria, resulting in a star rating from one to five.

For further insight into the criteria we use to rate banking and financial institutions and our evaluation approach, please refer to our editorial guidelines and full disclaimer. 

Greenlight Debit Card Review

Product Name: Greenlight

Product Description: The Greenlight Debit Card is a prepaid debit card designed for teens, providing an easy and secure way for them to manage their own spending.

• [ Learn More Here ]

Summary of Greenlight

Greenlight provides parents with peace of mind knowing that their teen’s purchases are supervised, allowing them to set budgets or limits on spending, keep track of purchases in real-time, and receive purchase notifications right away so they can have conversations about responsible budgeting. The debit card also comes with helpful features such as rewards and goal-setting tools that encourage teens to save money.

• Cost and Fees
• Customer Service
• User Experience
• Product Offerings

Overall

3.6

Pros

• Allows real-time monitoring of spending and budgeting
• Institutes good money habits from a young age
• Customizable allowances and restrictions, including purchase limits and blocking of certain stores/sites
• Instant notifications when purchases are made

Cons

• Costly monthly subscription fees
• Limited debit card funding options (no cash deposits)
• Potential problems with blocked sites/stores due to false positives

The post Greenlight Debit Card Review | Good Financial Cents appeared first on Good Financial Cents®.

If you plan on opening a checking account anyway, you might as well open an account with a bank that awards you a bonus just for meeting a few simple requirements. 

This guide highlights the top bank bonuses available today and the type of customer for each sign-up bonus that is best. 

Speed is essential since the status of the best bank sign-up bonuses and promotions can easily change from one month to the next. Choose the one that works best for you, and sign up today.

Top Pick for Best Bank Sign-up Bonus

Our top pick among the best bank sign-up bonuses is the Wells Fargo Everyday Checking account. 

Not only is it the best bonus offer for college students, but qualifying for it is also easy with a minimum opening deposit of $25 and $2,000 or more in direct deposits within 90 days of account opening. 

The $10 monthly service fee can easily be avoided, with no less than four ways to make it disappear. Inquire at your local branch for more information on this offer, or keep an eye out for the bank’s mailers.

The Four Best Bank Promotions and Bonuses of 2024

HSBC Premier Checking Review

To qualify for a Premier Checking Account – and to have the $50 monthly maintenance fee waived – you must meet one of the following requirements:

1. Have $75,000 in combined US consumer and qualified commercial dollar deposit and investment accounts, or
2. Monthly recurring direct deposits totaling at least $5,000 from a third party into your checking account, or
3. An HSBC US residential mortgage loan with an original loan amount of at least $500,000 (this doesn’t include home equity products).

HSBC Premier Checking works best for higher income/net worth consumers who can meet at least one of the three financial requirements to get the sign-up bonus while having the monthly maintenance fee waived.

If you qualify, this account is packed with benefits. Apart from the monthly maintenance fee, there are no fees for transactions, wire transfers, foreign transactions, or ATM usage. 

HSBC even provides unlimited rebates on third-party ATM fees in the US. The checking account also pays 0.01% APY on balances of $5 or more.

Radius Bank Rewards Checking Review

Radius Bank Rewards Checking is best for those who prefer the ongoing rewards earned from unlimited 1% cash back on debit card purchases. It’s also an excellent choice if you want free checking. 

There are no monthly maintenance fees, no ATM fees, and unlimited rebates for ATM fees charged by other banks.

And if that isn’t enough, the account pays interest of 0.10% APY on balances of $2,500 to $99,999.99, then 0.15% APY on balances of $100,000 or more (no interest is paid on account balances under $2,500). 

You can open an account with just $100 with no minimum balance requirement afterward. The account offers an unrivaled mix of ongoing rewards and interest earnings, as well as plenty of valuable services. 

Wells Fargo Everyday Checking Review

The Wells Fargo Everyday Checking account is an excellent checking account option for anyone since it pays a very generous bonus that’s easy to qualify for. 

There are several ways to eliminate the monthly service fee. This account is especially beneficial to college students since the monthly fees are automatically waived for primary account owners between the ages of 17 and 24 years old.

Wells Fargo Everyday Checking has a $10 monthly service fee, but there are four ways to make it disappear:

1. $500 minimum daily balance, or
2. Direct deposits totaling $500 or more, or
3. The account is linked to a Wells Fargo Campus ATM or Campus Debit Card, or
4. The primary account owner is between 17 and 24 years old

Chase Total Checking Review

The sign-up bonus offered with a Chase Total Checking account works well for anyone who’s looking for a quick bonus.

That’s because you can receive the bonus just 15 days after opening your account and making a qualified direct deposit. And that’s something that can happen within a couple of weeks of opening your account.

Chase Total Checking lets you access more than 4,700 bank branches and more than 16,000 ATMs nationwide. You also get access to perks like online bill pay and mobile check deposit. 

The account has a $12 monthly service fee, yet this fee can be waived by keeping an average beginning-of-the-day balance of $1,500 or more in this account or by maintaining a balance of $5,000 or more across eligible Chase accounts. 

You can also enjoy $0 in monthly fees if you set up electronic deposits of $500 or more into this account each month. 

Here’s What You Need to Know About Bank Bonuses

We love bonuses – everyone does! But there are some conditions involved that aren’t always obvious. That doesn’t mean the bonuses aren’t worth getting, only that we don’t want you dealing with any unexpected surprises.

Here are some things to know:

• The Bonus May Be Taxable. If the amount of your bank bonus reaches at least $600, the bank may issue IRS form 1099-MISC or 1099-INT. If so, the bonus earned will need to be reported as taxable income on your individual income tax return.

• There’s Often a Minimum Deposit Required to Get the Bonus. The offer may require you to make a minimum deposit within a certain number of days of opening your account.
  
  Meanwhile, you might also need to maintain a specific minimum account balance to qualify. It may need to be maintained for several months or even as long as a full year.

• Qualification Might Require Specific Account Activity. Based on our research, many banks offering bonuses require either a minimum number of deposits or a minimum dollar amount of deposits each month.
  
  Most commonly, the deposits need to be direct deposits. It’s likely the banks want to know if your account will be funded on a regular basis.

• Bonuses Can Be Offset by Bank Fees. Some of the most generous bonuses are being paid on checking accounts that have monthly maintenance fees. A monthly maintenance fee of $15 can wipe out a $200 sign-up bonus in a little over one year.
  
  But most banks will allow you to avoid monthly fees either by having a minimum monthly balance with a specified number or amount of direct deposits. Be sure you can meet those requirements or your bonus will be eaten up by monthly fees.

• Keep an Eye Out for Bonus Offers in the Mail and Online. You’ll find mailers with unique bonuses and instructions as well as links online from various bank partners. By searching and doing your research, you can find the best bonuses available to you.

How We Found the Best Bank Promotions and Bonuses of 2024

There are plenty of banks offering bonuses to open new accounts. But with many offering no more than $100 per $150 – or having complicated qualification requirements – we decided to set specific criteria to narrow the list down to the very best bank bonuses based on five different factors.

The Amount of the Promotion or Bonus

This was certainly the starting point of our analysis. We set a threshold of $200 as a minimum bonus, or the likelihood of earning at least that much in cash back over the course of a full year.

It would be easy to simply list the banks offering the best sign-up bonuses and leave it at that. 

But additional criteria do factor into the mix since they can affect your ability to a) qualify for the bonus and b) determine the value of maintaining the account after the bonus has been paid.

Put another way, the amount of the bonus is certainly a compelling factor — but it’s only one of several.

What You’ll Need to Qualify for the Promotion or Bonus

Each bank sets its own requirements to qualify for their sign-up bonuses or promotions. 

As you can see from our reviews of those individual banks, they range from fairly easy to fairly difficult. But more difficult requirements won’t necessarily exclude a sign-up bonus.

For example, HSBC Premier Checking has the most difficult sign-up bonus to qualify for. But if you do meet the criteria — which is easier for consumers who either have high income or high net worth — the bonus is also the most generous in the industry at $600.

In this list, we’ve attempted to balance out the amount of the sign-up bonus or promotion with the ease or difficulty in qualifying for it.

The Timing of the Promotion or Bonus Offer

Obviously, the promotion or bonus needs to be currently available. Bank sign-up bonus offers are added and withdrawn at the discretion of the issuing bank. We’ve focused on the best bank bonuses available, at least through the middle of 2024.

Other Features and Benefits Provided by the Offering Bank

Where the information was available, we presented features and benefits offered by the issuing banks apart from the promotions or bonuses. 

This might include interest paid on your balance, the absence of common incidental bank fees, and other perks. 

After all, when you open a checking account, you’re looking for more than just a bonus. You’re also looking for the long-term benefits the account will provide long after the bonus has been paid.

Ongoing Costs or Conditions to Maintain the Account

There are two parts to this criterion. The first is the qualifications needed to earn the sign-up bonus or promotion. That may include making and maintaining a certain minimum balance or meeting a certain minimum number or dollar amount of direct deposits.

The second has to do with monthly maintenance fees. These are typical on checking accounts, though, as you can see from our reviews, they can vary substantially. 

While acknowledging that monthly maintenance fees are common with checking accounts – especially those paying generous promotions or bonuses – our focus is primarily on the opportunities each bank offers to avoid the fee.

We’re happy to report that Radius Bank charges no monthly maintenance fees at all, while each of the other four banks provides multiple ways to avoid their fee.

Summary: Best Bank Promotions and Bonuses of 2024

The post Sign Up for the Best Bank Bonuses Out There appeared first on Good Financial Cents®.