Grow Your Money Faster With These 3 Savings Accounts You’ve Never Heard of
Looking for a place to stash your cash?
More than a quarter of Americans don’t have a savings account, according to recent data from the Federal Deposit Insurance Corp. That means we’re missing out on the joys of interest, an effortless way your money can make money for you. (Psst… that’s free money.)
The key to finding the best savings account is to look for one with a high interest rate and few (or ideally no) fees.
3 Smart Savings Accounts You’ve Never Heard of
Interest rates fluctuate with the market. The average savings account pays out 0.09% APY, according to October 2018 data from Bankrate.
With that in mind, we rounded up some unexpected savings options that offer high interest rates so you can make the best choice for your money.
1. CIT Bank Flexible Savings Builder: Earn 1.85% Interest
CIT Bank (not to be confused with Citibank) offers a few high-yield savings options, including its flexible savings builder, which offers interest rates nearly 24 times the average.
You’ll qualify for the 1.85% interest rate when you deposit at least $100 a month into your account. To make this transaction automatic, initiate a direct deposit of at least $100 from your paycheck.
2. Varo: Grow Your Savings More Than 20x Faster
A mobile banking app called Varo will pay you more than 20 times that amount on your savings account. For reference, the FDIC reports that the average savings account pays a paltry .08% APY*.
Oh, and there are no monthly fees.
We know opening a new bank account isn’t exactly everyone’s idea of fun, but Varo makes it easy. You can open an account with just a penny, and more than 750,000 people have already signed up.
*https://www.fdic.gov/regulations/resources/rates/
3. Digit: Earn a 1% Savings Bonus
Digit is an app that helps you effortlessly build your savings. Link your checking account to the app and, depending on your goals, its algorithms will determine small (and safe!) amounts of money to withdraw into its separate FDIC-insured savings account.
It offers an annual 1% savings bonus, which is issued every three months and is still higher than most other savings accounts.
The app is free for your first 30 days, then costs $2.99 a month. You’ll snag an exclusive $5 bonus when you sign up through The Penny Hoarder.
Bonus: Long Game Savings: Earn 0.1% APY Plus Cash Winnings
A savings app called Long Game turns saving money into a game. Plus, you’ll earn interest on your balance and even have opportunities to win cash by playing games.
I used Long Game to save money. Every two weeks, it snuck $5 out of my bank account and rewarded me with coins.
In two months, I saved $35.70. Plus, my winnings amounted to a gain of about 2% — way higher than interest on any other savings account.
Once you link your bank account, you’ll earn 300 coins, so you can start playing while you wait for payday.
Carson Kohler ([email protected]) is a staff writer at The Penny Hoarder.
