We are all looking for ways to create passive income and grow our money. One of the easiest ways to create passive income is by putting money into a high yielding savings account. Some savings accounts used to offer close to 2% interest on the amount in the account. So, if you were to invest $1,000 in a savings account you could earn at least $10.00 a year in a savings account with at 1.00% APY or higher. However, the pandemic happened and now APY’s across banking systems have fallen. That doesn’t mean that they will always be this low! Still, even though the APY’s are low now, you can still plan on saving and creating a money tree that can produce passive income! Before you continue reading, just a quick disclaimer.
Disclaimer: I am not a licensed financial expert. Please be sure to reach out to a licensed financial expert to help you understand your investing options. This blog post will share some APY’s of great companies that have great ratings and customer service. Also, if you are interested, I have provided the links to the websites for the savings accounts listed.
Here are some options below. All options listed are FDIC insured.
PNC Bank- PNC bank has been around for over 100 years and has branches across the Midwest and Southeast United States. PNC does not require you to have a minimum balance and there are no monthly maintenance fees. At the time this post is published PNC is currently offering 0.80% APY. This is lower than their pre-Covid rate, but it is one of the highest APY’s available right now.
Please Note- If you close your savings account in less than 180 days. You will be charged a $25.00 fee. Also, if you are interested in their CD’s unfortunately you must visit an actual bank branch.
Citibank- Citibank has a 0.70 APY which is still high in the current online savings account market. Unfortunately, Citibank is not available in every state. States like California, New York, and Florida are restricted. The Citibank savings account has no minimum balance that’s required but does have an annual fee of $4.50. There is also a $10 monthly service fee (separate charge) if your savings account is not linked to a Citibank checking or savings account. ☹ If you’re a Citibank user and not in the restricted states listed above this could be a great fit for you, but if you live in Florida like myself, we will have to find another option.
Sallie Mae Bank- Sallie Mae has been around well over 30 years! Sallie Mae is currently offering a 0.65% APY which is still competitive in the current market. Sallie Mae does not require a minimum balance and currently offers over 8 different CD’s.
Please Note- Sallie Mae also has a savings account called the Smarty pig account. There’s no minimum balance required for this account as well but your APY will be higher than the 0.65 that is being offered for the general high yield savings account. The APY is calculated based on the account balance. This account is meant to grow your money significantly and help you achieve your short-term and long-term saving goals.
Ally Bank- Ally Bank was founded in 1919 and is one of the most trusted online banks in America. Ally Bank is an online bank that does not offer any branches across the U.S currently. There have been rumors indicating that may change in the future but currently Ally Bank is strictly an online bank. Ally Bank has no monthly fees and offers an APY of 0.65%
Discover Bank- Discover bank is personally one of my favorite banks! Discover bank has been around for over 30 years. Discover offers no monthly fees. You also do not have to have a minimum balance. If you are a Discover customer, they make it extremely easy to link all your accounts together! Discover has an APY of over 0.60%.
Capital One- Capital One bank has been around since 1995. Capital One has a world class web experience. They are great at making everything available online for their customers. There are no minimum balance requirements or bank fees! If you live in certain states, you won’t have access to actual bank branches. That may change in the future, but currently there aren’t any branches in Texas, Louisiana, or the Northern Belt. Capital One is offering 0.50% APY which is a little disappointing but these APY rates could be going up in the future and Capital One has always been competitive with their offers and experience.
Synchrony Bank- I’ve had a bad experience with synchrony bank, but I cannot be biased because we are a community and synchrony bank could be a good fit for you. Synchrony bank was founded in 2003. Synchrony Bank offers over 5 different CD’s. However, like most CD’s you need a minimum deposit of $2,000 to open the account. Synchrony Bank has an APY of 0.65% which is competitive given our current market.
Here comes the bonus list!
Chime- Chime is on the RISE! Chime was founded in 2013. I am considering becoming a convert lol. Chime is offering an account with no monthly fees and No minimum deposit. The only thing that I’m hesitant about jumping on the Chime band wagon is that they don’t have any CD’s. I’m sure we will see some changes in the future once the economy gets better. Chime is offering 1.00% APY on their savings account!
Affirm Savings Account- Affirm was founded in 2012. Affirm does not require a minimum balance and has no monthly fees. Like Chime they do not offer an ATM card, but they do have an APY of 1.00%! If you are interested in CD’s Affirm is currently not offering those at this time.
Thank you for reading my post “7 High Yield Savings Accounts to Create Money Trees!” There are more high yield savings accounts out right now. I will be updating this list as we go through the year and add more banks to the list that are worth looking into. If there are some high yield savings accounts that should be on this list, please feel free to comment and I will be sure to update it. Also, if there are some features you don’t like on the online banking platforms/apps please share that feedback as well. Our goal is to learn and grow! Please feel free to share and if you are new to Millennial Oaks please subscribe : ).