Best Interest Rates For Saving Money – 2018
It’s of all evidents that interest rates are taking their fair share of leisurely hikes from almost a decade of zero-interest hibernation stasis. With this in mind, I strongly urge all of you to be more attentive towards these various changes since the hike is expected to take it’s toll at 1.5% at the end of the year. Now, you could have cash just idling in a savings account, but what I want you to watch out for is those sneaky APY interest for such. Below is a list of the Best Interest Rates For Saving Money with varying maturities attache
High-yield savings accounts
There’s a strong consistency with better bank rates on High-Yield Savings accounts from online banks on the direct correlation that they can afford to do so with very little requirements attached. All banks listed are federally insured by the FDIC for up to $250K per account. Note that interest rates do and can vary over time.
Recommended High Interest Savings accounts:
• Open a Synchrony Bank High Yield Savings Account • Earn 2.25% APY on your funds on all balances • Available online nationwide • No minimum balance requirement or monthly service fee • Your deposit accounts are insured up to $250,000 per ownership category |
- Marcus by Goldman Sachs Online Savings – 1.80% APY; currently offering the rate on a balance of at least $1
- UFB Direct Premium Savings – 1.30% APY; $0-$49,999.99 earns 0.20% APY and $50,000+ earns you the guaranteed 1.30% APY.
Money market mutual funds
If you prefer keeping your cash in a brokerage account, then you should already be quite familiar with money market rates and how they’ve increased over the year. At this point, you should consider moving your money into a high-yielding money market fund or at least a ultrashort-term bond ETF.
- Vanguard Prime Money Market Fund – SEC increase yield towards 1.07% now. There is a $3,000 minimum investment requirement. Vanguard Prime Money Market Fund seeks to provide current income and preserve shareholders’ principal investment by maintaining a share price of $1. Expense ratio is minimal at 0.16%
- Fidelity Money Market Account Premium Class – Invest with a world leader in mutual funds* and you put a global network of 400 analysts and one of the largest research departments in the industry to work for you.
Short-term rates (guaranteed for under a year):
- Ally Bank – 11 months term – No Penalty CD Account and get up to 1.60% APY for accomplishing $25,000 in minimum opening deposit value. Minimum of $5,000 in minimum opening to get 1.35% APY, and anything lesser than $1,000 will receive 1.15% APY. Your deposits will be FDIC insured to the maximum allowed by law
US Savings Bond
Rates on US Savings Bonds are backed by the US government. You must be able to hold them for a minimum of a year and there are annual purchase limits involved. On the topic of ongoing inflation, you should expect a correlation with US Saving Bonds since the US Treasury pays out a variable interest rate linked to inflation. Note that if you redeem within 5 years, a penalty APR will be applied to the last 3 months.
Rewards checking accounts
Rewards checking accounts pays you quite the attractive interest rates with a risky endeavor attached. There are always specified requirements attached to these types of account and if you do any one step wrong, you wouldn’t be able to earn the set interest for that month. Note that rates can fluctuate, and I mean drop at the blink of an eye.
- First Financial Credit Union is currently offering residents nationwide an attractive 5.00% APY when you sign up and open a new High 5 Checking Account. The bank is offering you a chance to earn the rate on balance up to $2,500.
Certificates of Deposit
With certificates of deposit, you should already expect to have your every deposit sitting there and fermenting your years on end. Withdrawal fee policies are attached and strictly enforced with these types of accounts but they offer quite the bountiful APY on your returns. Last time I checked, CIT Bank does offer a CD Ladder as well as a tutorial on how to do so.
Recommended Certificate of Deposit accounts:
• Get started and open a Discover® CD in 3 easy steps. • Available nationwide online • Discover offers CDs with some of the highest and most competitive rates! • Select terms as short as 3 months up to 120 months • Rates ranging from 2.00% APY up to 4.70% APY. • Opening a Discover Bank Certificate of Deposit is extremely quick and easy. • Funds on deposit are FDIC-insured up to the maximum allowed by law. • Start today with a minimum deposit of $2,500! |
Conclusion:
Get the interest you deserve on your savings and don’t let big banks sneak around with your idling money. It’s a necessity that we be more attentive to our cash deposits considering just how much the interest rate has hiked in 2018, and we should ably prepare ourselves for the most rewarding savings products out there.
These products are listed via short term to long term investment options and will offer you quite the rewarding APY, however, most account do have some requirements worth looking at prior to triggering the guaranteed interest. I wouldn’t bother so much with accounts that aren’t FDIC Insured or Interest rates that fluctuate hard. See our complete list of Best Bank rates for all of your credit card necessities!