Annual Percentage Yields (APY) on savings accounts have been almost non-existent in the aftermath of the 2008 financial crisis. Traditional banks still advertise APY rates of less than 1%. That doesn’t even keep up with the rate of inflation, or increase in the price of goods and services. In other words, the $100 you save today won’t buy you the same amount of goods and services a year or more from now.
However, three online savings accounts now advertise APY rates of 2.2-2.25%. The Federal Reserve forecasts core inflation to be 2% for 2019-2021 (thebalance.com). If this holds true, money parked in one of these online savings accounts will keep pace with the rate of inflation. And with yields exceeding the national average you will certainly build up an emergency fund and save for short-term goals faster. Like that bucket list trip because hey – you only live once.
Marcus by Goldman Sachs 2.25% APY
- FDIC Insured
- No fees or minimum balance
- Link to other accounts for wire transfers
- US based contact center open 7 days a week
- Also offers no fee Personal Loans
HSBC Direct 2.25% APY
- FDIC Insured
- No fees and $1 minimum balance
- Link to other accounts for wire transfers, mobile check deposits
- Live chat assistance
- Also offers interest checking accounts
Ally 2.20% APY
- FDIC Insured
- No fees or minimum balance
- Link to other accounts for wire transfers
- 24/7 Support
- Also offers interest checking accounts, low fee brokerage accounts, and loans
- Voted “Best Online Bank” 2018-2019 by Money Magazine
