Remember the good old days when we could get 10% interest on our savings? Yeah, me neither, but some people do. Except those days are long gone and you’re not going to find anything close to that nowadays.
However, you can take 5 minutes of your time today and open an online, high-interest savings account that earns 1.05% APY without completely changing banks or closing your existing account.
Yes, instead of a measly 0.01%, you can now earn 1.20% with no fees, no minimums, and no effort, and you can still keep your current bank accounts (if you want)—no need to change bill payments, close accounts, etc.
Why am I sharing this with you? Because I am a huge advocate of anything that makes me additional money with little to no effort… and you should be too.
Here’s How it Works:
You open a new online, high-interest savings account, link it to your current bank account and then transfer your desired amount of savings in to it. That’s it, you’re done. It’s completely free to open, it’s FDIC insured, and you can transfer money back and forth between your accounts at anytime. It starts accuring interest from day 1.
So, Which High-Interest Account Should You Choose?
Ally Financial (Do It Right!)
There are now many online savings accounts to choose from and I did a lot of research to find the best one. I wanted the highest-interest I could find that also had no maintenance fees and no minimums. The best account I found was Ally’s Online Savings Account.
Award-Winning Account with 1.20% APY, Plus:
- No monthly maintenance fees.
- Earn a higher rate than most savings accounts.
- Deposit checks remotely with Ally eCheck Deposit℠.
- Grow your money faster with interest compounded daily.
- Six transactions limit per statement cycle.
- Your deposits are insured by the FDIC up to the maximum allowed by law.
- Protect your legacy. Open this account for a Trust. Learn more.
Ally is an online bank, which means they don’t have physical bank locations. By eliminating the costs associated with traditional brick-and-mortar banks, Ally can offer great rates and outstanding customer care.
With Ally Bank, you get everything you expect from a traditional bank and more:
Peace of mind. No hidden fees. No maintenance fees. No minimum balance required.
Make deposits. Deposit checks with Ally eCheck Deposit℠ or ACH transfers.
Keep track. Access your account anytime, anywhere with online and mobile banking.
1. You have any cash sitting in a savings account earning only 0.01%.
2. You are looking to diversify your assets/portfolio and you don’t want to invest your whole nest egg in the stock market.
3. You want your money to grow while you sleep, but you don’t want to “lock it up” in investment options such as CDs. You want to have complete access to it just in case you need it.
4. You are looking to build a rainy day (emergency) fund.
Keeping money in an account separate from your main account is actually one of the best ways to “trick yourself” into saving more money. It makes it harder to quickly access your savings, you can’t just pull the money out in an instant. You have to first initiate a transfer, which can take 2-4 business days to process and clear.
This is a no-brainer, considering it takes less than 5 minutes to open an account and you’ll start to earn extra money almost immediately without hardly any effort.