How to Get the Most Out of Your Short Term Savings in 2019

How to Get the Most Out of Your Short Term Savings in 2019

Earning passive income is on everyone’s mind in the current economic climate. There’s no better way to do that than with short term saving options! Here’s a look at three of the best ways to make your money work for you: high yield savings accounts, money market accounts, and checking accounts that pay interest. If you’re looking for ways to bolster your savings, these are some of the best methods.

High Yield Savings

Finding a bank that offered high interest on savings accounts was easier years ago, but that’s not to say those opportunities still don’t exist. You likely won’t find them out on the streets, though. Today, local banks offer just a minimal interest rate on savings accounts. Instead, you will have to look at online-only savings accounts. There are a few that offer sizable returns on your money.

On a national level, PurePoint Financial leads the way as far as offering high interest rates with a 2.35% APY. This MUFG Union Bank, N.A., subsidiary does require a minimum deposit of $10,000. Customers are not charged a monthly fee, which only serves to make this option even more tempting.

Synchrony follows closely behind with a 2.20% APY, and this online bank also offers their services without a monthly fee or service charge. Additionally, customers have access to their money anytime; they can transfer funds online or withdraw at an ATM. There is no minimum deposit amount.

At one time, Barclays was significantly lower, checking in at an APY of 1.00%, but that rate has bumped up. They’re now offering a more competitive 2.20% rate. They also don’t require a minimum deposit amount, nor is there a minimum monthly deposit requirement.

Money Market Accounts

While some money market accounts require sizable deposits and establish strict rules for accessing their premium interest rates, others are more flexible. The important thing is to look at the APY and not the introductory rate they offer to attract new investors. Additionally, you should shop around for money market accounts that don’t charge a monthly service fee. They may be difficult to find, but they are out there.

One option is Discover Bank, a division of the Discover Financial Services, Inc., particularly because it offers complete online services. From ATM and debit card access to remote deposits and check writing services, there isn’t much that can’t be done digitally. Additionally, this online savings account, which comes with a 2.00% APY, doesn’t charge a monthly service fee. There’s also no minimum deposit to get started.

Ally Bank is also notable for their money market account, particularly because they throw in a host of perks and highly rated customer service professionals to compliment their high 2.00% APY. Again, there are no minimum deposits or service fees with this account. One extra feature customers find exciting is the ability to electronically deposit checks using their smartphones.

Sallie Mae has expanded their services to include money market accounts and they’re doing it right with a 2.20% APY rate. As with the other options listed here, there are no minimum deposits or service fees. They also offer online banking, mobile deposits, and check writing services.

Interest Bearing Checking Accounts

Interest checking accounts offer a one in all service that many people find particularly alluring. Instead of having to transfer funds between checking and savings accounts, everything is kept in one place. This helps customers earn interest, while taking advantage of flexibility.

Memory Bank tops the list with a required $50.00 deposit and a 2.30% APY with an “Online Money Market” account. Additionally, they boast over 92,000 fee-free ATMs throughout the world. There are some requirements customers must meet to qualify for the interest-bearing checking account. They must receive at least one direct deposit in every statement cycle, agree to receive online statements, and have at least five point-of-sale debit card transactions per statement cycle.

A basic Aspiration Summit account requires a $10 minimum deposit to open, with a $0 minimum maintenance balance; it pays a 1.00% APY. Accounts are arranged to prohibit debit card overdrafts and customers can use any ATM without being subjected to a service fee. Their website also pledges charitable donations.

TIAA Bank, formerly EverBank, offers an introductory 1.21% first-year APY rate for a checking account. After the 12-month introductory rate, the bank pledges to keep interest rates competitive with a top percentage of competing banks. They also feature no ATM fees and will reimburse customers for fees charged by other banks, providing the customer maintains a $5,000 balance in their checking account.

Final Thoughts

These are just a few of the quality financial products available today to help you get the most out of your short term savings. As online services grow and high yield savings options become more widely available online, traditional banks will be forced to compete. In the meantime, the best options available are through online financial institutions, such as those mentioned here.

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