What Is The Best High Interest Savings Account In The US?

By on August 23, 2013

There are some fantastic, high interest savings accounts out there that make all those years of pro-saving financial teachings worth it. Some banks offer high APY for a short “promotional” period before returning to the usual rates (EverBank is great for this), while others truly offer respectable interest rates, as well as quality financial and customer services. Here are this years highest rated banks when it comes to high interest savings accounts.

#1 – Barclays US

Barclays USWith over seven million customers across the United States, British bank Barclays has a growing presence on this side of the Atlantic. After launching an online bank for American customers in spring of 2012, people have simply flocked to Barclays, valuing their quality (and financially sensible) services, solid reputation, and strong record of customer service.

Looking at the numbers, we can immediately see that Barclays has one of the best savings accounts in the nation. With an APY at 1.00%—ten times more than the national average—Barclays offers one of the highest rates of any bank in the US, with no strings attached. This isn’t some short term promotional rate that’ll reduce to 0.01% after a few months. This doesn’t require some massive deposit before triggering the favorable rate—quite the contrary, as Barclays’ savings accounts have no minimum balance (they only reserve the right to shut down your account if less than $1 is left in the account in a 180 day period).

Concerned about hidden fees or a complicated transition from your old bank to Barclays? No worries: there are no hidden fees with a Barclays savings account (in fact, their overdraft fees are remarkably low at $5 per item) and you can easily link it to your other accounts. Per the usual banking guidelines, Barclays is also insured for the full FDIC amount and offers top-notch online banking services, such as transfer of funds and direct deposits, to ensure a steady stream of funds into your high-yield savings account (here is a useful calculator to help you determine what the savings possibilities are).

#2 – Ally Bank

Ally BankIn 2012, Kiplinger listed Ally Bank as one of the best deals in online banking. Also in 2012, CNN Money ranked Ally as one of the best banks overall.

And no wonder: with 0.90% APY on any savings account, Ally bank deserves its top honors. And it doesn’t end there: it also offers 0.40% to 0.75% or more APY on its checking accounts. This is exponentially more than what most major banks offer on their savings accounts, making Ally a clear winner in the APY arena.

But what about ATMs and fees? Not a problem: like many online banks, Ally doesn’t charge for ATM transactions and even reimburses you when you incur usage fees at another bank’s ATM. There are no transfer fees or minimum balance fees either, making Ally one of the most financially-sensible banks out there today.

#3 – Sallie Mae

Although Sallie Mae is generally associated with the student loan industry, this bank also offers highly favorable rates on its savings accounts. With 0.85% APY, it has one of the highest rates in the nation. Interest is compounded daily and paid monthly, and whether you keep $5 in the account or $50,000, there are no minimum balance fees or monthly fees to be had at Sallie Mae. Electronic transfers? The first six are free.

And what about Upromise? This program was created by Sallie Mae to help students save for college as well as pay off student loans during school and after graduation. When you open a Sallie Mae savings account and link it to your Upromise account, you’ll receive 10% annual matching on your Upromise earnings over the course of the past twelve months. Listen up college students: this is basically free money added to your account, just for saving with Sallie Mae. And, even if the Upromise offer doesn’t catch your interest, Sallie Mae’s fantastic 0.85% APY is enough to make the top three list of the best savings accounts available today.

Final Word

Interest rates have been almost obsolete for savings accounts these past few years. However, as you can see from the guide above, there are still some accounts out there that’ll pay you more than a few pennies per year for banking with them.

Kelly Kehoe

About Kelly Kehoe

Kelly Kehoe is a full time college student and personal finance writer. In her free time she competes in speech and debate and writes fiction. Follow Kelly @kellypkehoe or on Google+.

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