You might love your local bank, but it isn’t necessarily the place to park money over the long term.
\nToday, online high-yield savings accounts offer dramatically higher savings rates than brick-and-mortar banks.
\nA typical savings account in a brick-and-mortar bank could pay .02% APY (annual percentage yield) compared to 2.25% or more with an online bank, according to Magnify Money.
\nWhat this means to savings really matters.
\nA $15,000 savings account at .02% yields about $3 per year — a whopping 25 cents a month. The same amount saved at 2.25%, yields about $337 per year, or about $28 per month.
\nOnline banks are FDIC insured as is the local bank. But online banks have lower overhead with no buildings to worry about.
\nHowever, they also may not have ATMs, they might have fees, or require high minimum deposits. But not all do.
\nSynchrony Bank, for example, has no minimum deposit and no fees, but you are limited to six withdrawals or transfers per month. APY is 2.25%.
\nThe low-interest account at your local bank will give you access to money at all times and likely include easy transfers. Still, these accounts are best reserved for merely separating money to be used for different purposes.
\nSearch for high-interest online savings to compare features. <\/p>\n","protected":false},"excerpt":{"rendered":"
You might love your local bank, but it isn’t necessarily the place to park money over the long term. Today, online high-yield savings accounts offer dramatically higher savings rates than brick-and-mortar banks. A typical savings account in a brick-and-mortar bank could pay .02% APY (annual percentage yield) compared to 2.25% or more with an online […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32,1,31],"tags":[],"class_list":["post-1095","post","type-post","status-publish","format-standard","hentry","category-general","category-insurance","category-retirement"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t