High Interest Checking and Savings for 2018

You are probably not getting the most out of your savings account and checking account when it comes to interest. Current rates for Savings accounts is about 2% APY. See below for more about APY and how much it adds up too.

Savings Account

With a savings account, having a brick and mortar location is usually not required. This is why I strongly recommend you move your cash savings over to a high-yield savings account.  At the time of writing this the highest return with no strings attached is 2.05% APY.

Bank5 Connect – 2.05% APY

http://www.bank5connect.com/home/high-interest-savings

  • Minimum to Open: N/A
  • Minimum Balance: $100.00 (to earn interest)
  • Maximum Balance: N/A
  • Checking Offer at 0.76% APY (see below)

Salem Five Direct – 2.05% APY

https://www.salemfivedirect.com/#eonesavings

  • Minimum to Open: $100
  • Minimum Balance: N/A
  • Maximum Balance: $1,000,000
  • Checking Offer at 0.25% APY

Checking Account

If you are looking for a high-yield checking account and don’t need a brick and mortar bank (or want to use it along with a brick and mortar bank) then there are quite a few offers, many of which you need to beware of.

Most banks that offer high-yield checking account come with the requirement of X debit card transactions (as credit) every month. While some debit cards come with cash back and you can get up to 5% APY on the first 2-5 thousand in your checking account, it will never come close to what you can get by using your cash back credit card over your debit card.

That being said, you can currently get up to 0.76% APY on your checking with no strings attached. I have only found one good high-yield checking account.

Bank5 Connect – 0.76% APY

http://www.bank5connect.com/home/high-interest-checking

  • Minimum to Open: N/A
  • Minimum Balance: $100.00 (to earn interest)
  • Maximum Balance: N/A

What Does APY Mean To Me

APY – Annual Percentage Yeild. This is how much you earn on your money for the year. This is usually computed daily on your daily ending balance for the account and typically paid out monthly (each statement).

Percent – Most importantly how to easily calculate it. You just move the decimal to the left 2 places and then multiply. So to get 1% of 100 you would multiply 0.01 by 100 and get 1.

Savings Example – $10,000

If you have $10,000 in a savings account at 2.05% APY compounded yearly you would have made $205 at the end of the year. If you calculate your interest daily as they do you divide 2.05 by 365 days in the year and you get about 0.0056. Then 10,000 divided by 0.000056 equals about $0.56 cents a day.

Checking Example – $1,000 daily balance

If your average daily closing balance in your checking account is $1,000 and at 0.76% APY you would have made about $7.60 at the end of the year. This is not much if you keep less than $1,000 in your checking account but if you need to keep 3-5k it can start to add up.

Alternatively, you can get $300 to open a new Chase checking account if you have direct deposit right now; however, that is a one time offer and requires work on your end to update banks and direct deposit, then update them again if you decide to leave chase. So if your goal is to make the most money there are other offers available; however, if you just want to make a few extra bucks each year for doing nothing extra, this might be for you. I mainly see this as a bonus to combine with the savings account offer.

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