Introduction
Finding the best savings rates?
There are different kinds of savings accounts which provide you with a different saving rate. To find the best saving rates you should check the account’s fine print. Most of the accounts advertise themselves for providing you the best savings rates, but they do not provide you with it in actuality
How does a 5% interest savings account work?
The working of a savings account which provides you with 5% interest rate or 5% APY is very similar to the working of other savings accounts. You can earn a good amount of interest on your deposited money, even if you regularly withdraw or deposit some amount of money every month.
But one should know what is the actual meaning of interest. The interest is the amount that is paid to you by your bank or the financial institute in which you have deposited your money. The bank provides you some money in the form of interest because it has used your deposited money to fund its various operations.
The banks which use your deposited money to run the larger operations, provide you a greater amount of interest rate. It has been observed that smaller banks or other financial institutes compete with the larger banks so that they can use your money to fund their operations by providing you greater interest rates. Also, if you want to increase your savings growth, you can make it possible with the help of compound interest.
The compound interest helps you by adding your previous earned interest to the principal amount.For example, if you have deposited around, thousand dollars in your savings account, and the interest rate that you will earn on it is 5% or we can say that the API is 5%, then you will earn up to $50 interest every year.
The interest rates that are provided to you for your savings account or not fixed, and can change at any time. If the APY changes then the annual yield also fluctuates.
Savings account with 5% APY or higher
Digital federal credit union
The CNET rating of this account is 4.2 out of 5. The primary savings account of the digital federal credit Union, has an APY rate of 6.17%. Thus this account is on the top list of the account which provides you with a high annual percentage yield, APY. But this value of API is only applicable to those accounts which have a balance of up to $1000.
If the balance of the account is above this, that is, it is more than thousand dollars then it earns an APY of 0.15%. This rate is very less than the national average rate, which is 0.45%. The digital Federal credit Union offers various options such as mobile check deposits, and also provides you plenty of options of fee free ATMs.
There are about 24 branches of this credit union in New Hampshire, but it is a global credit union that provides its services all across the world. The credit union also gives membership to the employees or the members of the partner organisation or the people who live in specific communities. Along with a primary savings account, this credit union also offers other types of accounts having different features and APYs.
My banking direct
The CNET score of this bank is 4.5 out of 5. This bank provides online services to its customers and it is owned by a parent company which is known as New York community bancorp. The APY offered by the high yield savings account of this bank is competitive APY for all the balance levels.
There are various advantages of choosing this bank such as it does not charge any kind of maintenance fee from its customers and also, there are no minimum balance requirements.
Brio direct bank
It has a CNET score of 3.5 out of 5. If you want to go for a secondary savings option, then it is the best option to choose this bank. This bank offers higher savings accounts to its customers and the CD terms lie between 30 days to five years.
This bank does not charge any kind of monthly fee from its customers. You get the highest APY rate only when you make an initial deposit of $5000 or more. After opening the account, you will be eligible for getting the highest APY if you maintain the balance of your account at $25. This bank account also has online mobile banking apps.
Newtek bank
The CNET rating of this bank is 4.5 out of 5. This is a financial service company, which provides its services online. There is a limited number of withdrawals you can make every month, that is you can make only six withdrawals per month. You can open more than one bank account also, and you can manage all your bank accounts using the mobile app.
UFB direct
It has a CNET rating of 4.6 out of 5. The savings account of this bank has a highly competitive APY. The savings account of this bank provides great rates to its customers as well as free ATM services and unlimited free transfers between accounts. But the number of withdrawals that you can make per month are limited to only six withdrawals.
And if you make more than six withdrawals per month, then you have to pay an additional fee, which is around $10. You can make deposits, withdrawals and manage accounts only with the help of online mobile banking apps, other online platforms and SMS mobile banking.
Upgrade
The CNET rating of this bank is 3.8 out of 5. There is no monthly or transfer fee. The only accounts that have a balance of a thousand dollars or more can competitive APY.
Bread savings
The CNET rating of this bank is 4.2 out of 5. There is an advantage of opening an account in this bank that it does not charge any kind of monthly fee.
Laurel road
The CNET score of this bank is 4.6 out of 5. It offers online savings accounts which do not require any minimum deposit. This bank does not accept cash deposits. You have to make the deposits only via online methods.
Best bank
The CNET rating of this bank is 4.5 out of 5. This bank does not need any minimum deposit to open an account. The interest savings account in this bank offers competitive APY to its customers and you do not have to pay any monthly fee. This bank offers you other accounts as well such as mileage savings account.
BMO Alto
The CNET rating of this bank is 4.4 out of 5.
BMO is the online arm of the BMO financial group. It offers us 2 deposit accounts, a CD and a high yield saving account. The ultimate number of transmitted and withdrawal permits is a plus benefit.
The savings account is the best with the checking account at another bank since BMO although dude does not provide us the ATM asses, or the debit card access. It also does not have any mobile app to perform the application. You can only send your money in this account through the online banking website and service or you can deposit cash through a linked account.
Ever bank
Ever bank formally offers a TIAA high yield saving accounts with a competitive APY which can now applies to your entire balance this bank operates several physical branches in the Florida but it has online tools and mobile app to do opening and managing account anywhere in the US we also like that you can assess your money from the network of 100000 fee free, ATMs
Tab bank
Tab bank, an online bank, offers us highly competitive APYS for their high yield saving accounts in this bank, there is no minimum balance or deposit required and you need only one cent in your account to earn the interest. We also like that you can receive mobile alerts and text messages. Tab bank has extended their customer service. Monday to Friday to 6 AM to 7 PM. M and Saturdays from 9 AM to 3 PM excluding federal holidays.
How to open a high yield saving account?
There are some points to open the high yield saving accounts
Choose an account
Before opening a new account first of all, remember to read the find print to understand the. Account details and requirement to earn any interest.
Apply
Complete the application process on your chosen bank or the credit Union you may also able to do it online, also
Provide the necessary information
Provide a government issue form of Id to verify the particular person’s identity. Most banks will require your social security number.
The 15 biggest bank in the US
JP Morgan Chase Bank
Consolidated asset =$ 3.5 trillion
It is New York based bank JP Morgan Chase Bank is the top in the federal reserve list with the largest bank by the consolidated rates owned at $ 3.5 trillion and in which $ 2.6 trillion assets tell us Which is on domestically.
Chase Bank, the customer arm of the JP Morgan bank has one of the largest branches covering 47,000 and more branches in the US over which they have 15,000 domestic ATM Chase Bank, serving the customer more than 60 countries which have their offices in America, North Africa, Asia, and Europe.
Bank of America
Consolidated assets = $ 2.55 trillion
Bank of America, which is based in charlotte, North carolina which serve the 69 million of the retail customer and their small business clients.This company have 38,000 branches which is referred to as the retail financial centers and they have the 15,000 ATM It is a digital banking app, which serves the 5seven millions of the verified users.
Wells Fargo
Consolidated assets = $ 1.74 trillion
Wells Fargo is on the third spot of the Fed list, December 2023. It has some risky years dealing with criminal and civil lawsuits involving fraud sale practice
In the recent investigation, it has the fake hiring practises and customer backlash about
Announcement to close line of the credit
Wells Fargo remains the giant in the US.
It has their headquarters in San Francisco they have 4400 and much more banking branches locations and more than 12,000 ATMs. The bank serves one in 3 US households and more than 10% of small business in the other countries.
CITI bank
Consolidated assets = $ 1.70 trillion
CItibank is a retail bank of global financial service GIANT city group. It is a New York waste Bank. It serves 200 million customer accounts in 160 countries. CITI bank customers have the authority to have the access of more than 600 branch locations, and more than 60,000 additional free ATMs. CITI bank has their ATM in more than 20 countries.
US Bank
Consolidated assets = $ 699 .4 billion
Coming in the fifth number, Minneapolis based US Bank has 2000 bank branches and many more across the 26 states. They have the banking app, which allows you to share your location while you are traveling so that it can avoid banking service interruption when you are far away from your home.
PNC bank
Consolidated assets = $ 562.0 billion
It is the largest bank merger of its time. The Provident national Bank and Pittsburgh national took up their shared initials and formed PNC bank 1983. The Pittsburgh based bank. Have focused their operation in the South Midwest and north-west. In November 2020, the PNC bank paid $11.6 billion to acquire the BBVA USA, a bank, which is mainly operating in Southern and Western States. PNC bank has 23 bank branches and many more across the US.
Goldman SACHS bank
Consolidated assets = $ 549.2 billion
In 2008, when this bank had a period of financial crisis, this New York based multinational investment bank was rebuilding their company in the market with the consolidated assets of 549.2 billion.
Mucus by Goldman Sachs, launched their consumer banking arm in 2016 which offers competitive rates on saving and certificate certificates of deposit accounts but they do not offer checking or money market accounts. Mark by Goldman Sachs offers the online operation operations so that it is easy to do the work by not finding out the branch or ATM.
TRUIST bank
Consolidated assets = $ 526 .7 billion
It was formed by a merger between BB&T and SunTrust Bank in 2019, operators have the 17 states across the Southeast and in the District of Columbia. It is a North Carolina based bank. It has more than 1900 branches and offers the customer assess of more than 29,000 ATMs
Capital one bank
Consolidated assets = $ 478.9 billion
Capital One Bank has their headquarters in MClean, Virginia and they have 273 branches across the six states and in the District of Columbia. The majority branches are located in New York, Maryland,Texas and Virginia. Capital One bank have fewer traditional branches. But they have a massive and large network of 70,000 ATMs. It does not have monthly fees or minimum balance required. The first capital one lounge opened at the Dallas Fort airport in 2023.
TD Bank
Consolidated assets = $ 369 .9 billion
It is the most convenient American bank. It is a US based arm of the Canadian bank TD Bank group. It is on the list of number 10 The largest US banks. TD Bank has more than one 1100 branches located in the east coast from Mania to Florida and most of those branches open seven days a week and these branches have some holidays too. You can also assess the 2600 ATMs through the TD bank network
Bank of New York Mellon
Consolidated assets = $ 357 .5 billion
It is commonly referred to as BNY mellon. It is a New York based investment banking service. As a global base service, BNY Mellon bank operates in 35 countries in the world and privately focused on the investment service for institution and high-end clients. It is one of the oldest bank in the country and has the longest running company in the New York City they have the famous founder name Alexander Hamilton who started the bank in 1784.
Straight State bank and trust company
Consolidated assets = $ 333 .7 billion
State State Bank, interest companies, one of the Massachusetts based investment firms that have their operators in more than hundred markets worldwide. With the primary focus on investment management. And reading this bank has not offered retail banking service or commercial leading service since 1999. In 2023, the bank has opened their new headquarters of 500000 foot in Boston to make its 230 years
History of operations there
BMO
Consolidated assets = $ 264.6 billion
It is known as BMO Harris. It is a US subsidiary of the multinational bank of Montreal shortened its name to BMO in the fall of 2022. BMO has expanded its US branches and operate, thousand across the eight states along along with the network of more than 40,000 BMO and all points ATM
Citizens bank
Consolidated assets = $ 220.2 billion
Citizen bank is a full service bank which friendly provide us with retail banking and commercial products for the consumer and small business in the New England, mid-Atlantic and my best region of the US. They operate 1030 branches in the 14 states. Citizen bank has the online division citizen access which has to offer the service since 2018. Citizen bank acquired the investors bancorp and HSBC’s East Coach branches and national online deposit business in 2023.
Conclusion
In this article, we came to know about personal finance and savings. Firstly, we came to know how to find the best savings rate and after this, we discussed the working of 5% interest rate accounts. Then we mention those banks which provide savings accounts having 5% APY or more such as digital federal credit union, newtek bank etc. Then we discussed the steps of opening a high yield savings account. And at last we mentioned the biggest banks in the US.