Are you earning the most from your savings and money market deposit accounts? Savings and MM accounts are the foundation of a strong financial plan, providing you with financial stability as you work to achieve your goals. Many banks and credit unions offer a variety of savings and money market accounts, and this article aims to help you find the highest interest rates for this type of deposit account.
Of course, a high-interest rate is not the only factor to consider when selecting an account. This article will help you choose the best deposit account for your specific needs.
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How to Find the Best Money Market and Savings Interest Rates
Finding the best savings account rate is a simple matter at first glance: Just look in the right place for what you want. Looking at individual bank site or visiting physical branches is time-consuming, so skip the individual search and look online for sites that aggregate the best deposit account rates.
- SmartAsset – SmartAsset is a major player in this space. For your convenience, we’ve partnered with SmartAsset to provide you with their live data feed. You can see their rate table below.
- Top Lists – You can check out various “top lists” by searching online. Top lists typically include online banks that provide higher interest rates than their brick and mortar counterparts.
- Alternative Options – Last but not least, there are alternatives to traditional savings and money market accounts that could provide competitive interest rates. Just remember that these options are not your typical savings accounts; you have to understand how they work before you decide to commit your money.
Remember that the best interest rate is not the only factor to consider; you should also consider the fees and make sure that you maximize your earnings and convenience with your savings.
In case, it is not obvious, this page does not include all available savings account offers from all banks.
SmartAsset Recommended Savings Accounts
The following table lists banks and credit unions that offer the highest yield savings account and money market rates as of today. To get more information, you can follow the link to the bank website.
Top 10 Best High Interest Savings Accounts for July 2019
As of right now, these are some of the best offers online with no monthly fee (updated 7/5/2019). Wealthfront Cash Account is still #1 with the highest savings account rate.
|Wealthfront Cash Account||2.57%||$1|
|BBVA Money Market Account||2.50%||$10,000 minimum plus $100 sign up bonus|
|BMO Harris Bank Platinum Money Market Account||2.45%||$5,000|
|CIBC Agility™ Online Savings Account||2.39%||$0.01|
|CIT Bank Savings Builder||2.30%||$100 minimum to open an account plus, $100 minimum single deposit per month to earn our highest interest rate.|
|Personal Capital Cash™ High-Yield Account||2.30%||0|
|Live Oak Bank||2.30%||0|
|HSBC Direct Savings||2.30%||$1|
|Citizens Access Online Savings Account||2.20%||$5,000|
|Marcus by Goldman Sachs||2.15%||0|
Alternative Options to Savings and Money Market Accounts
In addition to high yield savings accounts and money market accounts, here are some alternatives that may work for you:
|Certificates of Deposit: Another option to high-interest savings is certificate of deposits. There are CDs with a term as short as 3 months and as long as 10 years. Generally, longer term CDs pay more than savings, but require a long-term commitment.|
|High Yield Checking Accounts: Generally, there are more restrictions around high yield checking to be eligible for the best rate. However, it may be worthwhile if you can meet the requirements.|
|Lending Club and Prosper||Lending Club and Prosper are social lending sites where you can invest in 3-year and 5-year loans with as little as $25 per loan. The interest rate you earn depends on the quality of the loan (based on borrower’s credit rating, loan amount, loan length, etc.) Currently, Lending Club claims “Our 11-year track record represents average historical returns of 4–8% per year” and Prosper claims “Historical Returns of 5.3% on average”.
IMPORTANT: Please note that there are special risks associated with social lending.
|Discount Brokers: Many discount brokers offer a money market account that acts as the default account for fund deposited into your brokerage account. It usually pays some interest (not as high as an online savings account), but a brokerage account also gives you access to other investment opportunities, e.g., income investing in dividend paying stocks.|
If you know a bank that offers a higher rate than the ones above, we’d love your insight in the comments.
Frequently Asked Questions and Answers
What is the best way to choose a savings account?
When selecting a savings account, determine the features that are most important to you. For example, you may order the features as follows: high-interest rates, good customer service, low fees, and good reputation.
Are online savings accounts better than a traditional one?
Online savings accounts are more popular each day. Typically, you have to complete most of your transactions online or using the ATM, since there may not be brick and mortar locations in the “real” world. In exchange, you enjoy a higher interest rate than normal and pay lower fees.
How does FDIC insurance protect savings accounts?
When selecting a bank, make sure that it is FDIC insured. The federal government offers this insurance to participating banks and it protects your money (up to $250,000 per depositor at each banking institution) against loss in the event that the bank goes out of business.
What does FDIC deposit insurance cover?
FDIC insurance covers all deposit accounts, including savings accounts, money market accounts, certificates of deposit (CDs), and checking accounts.
Please review information associated with each offer before you sign up. Rates and conditions change constantly and I have reported what I believe to be the most accurate information at the time the article was updated.
Pinyo is the owner of Moolanomy Personal Finance and a Realtor® licensed in Virginia and Maryland. Over the past 20 years, Pinyo has enjoyed a diverse career as an investor, entrepreneur, business executive, educator, financial literacy author, and Realtor®.