For people who have a lot of cash and want to earn from that cash without doing anything, it may be a great option to look for some high yielding savings accounts. Most banks offer low interest rates and if you are not going to do anything with your cash in the near future, why not save the amount in high yielding savings accounts, so that you get more out of your money. The best options where you can open such accounts are the online banks. Some other options include credit unions and prepaid debit cards.
The best yields on savings accounts are mostly found in online banks. As these banks do not have to incur huge expenses to maintain the various nationwide branches. When, they save from here, they give out the benefits to their clients in the form of higher interest rates and even lower costs at times. Ally Bank and Capital One 360 have become household names. Other names are Synchrony Bank and FNBO Direct. Many of the online banks offer interest rates in the range of 0.75%-0.95%. In fact Ally Bank offers 0.99% APY. Other benefits of opening a savings account with an online bank is that you can access your account anytime, transfer money anytime, and though you may not be able to talk someone face-to-face, but someone is always available online or even on phones.
Though credit unions offer very competitive rates, they are difficult to find. And their membership requirements are such that, many people cannot take their advantage.
Prepaid Debit cards
These prepaid debit cards give rates which are unbeatable. For example Paypal Mastercard offers 5.00% APY on balances which are upto 5000. But there are some limitations in saving money in the prepaid debit cards. Firstly direct deposits should be made to be eligible for opening a savings account and then balance subject to the top rates are also limited, mostly till 5000.
So for those of you who are looking for higher rates without much efforts, online banks are the best you, and if you can do more work to earn better rates, credit unions can be chosen. And those of you who do not want to go any bank, be is a brick and mortar bank or an online one, you can opt for prepaid debit cards, which are offering too rates on limited balances.
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