High-Yield Savings Accounts
Are you looking for a high-yield savings account that offers a low monthly fee, low minimum balance, and the potential to grow your money? Look no further than these popular options!
If you’re an individual, you could be eligible for up to $2,000 in annual tax credits if you open a Roth retirement account (with contributions of up to $6,000 per year) or a traditional IRA (with contributions of $6,000 per year). You might also qualify for additional income tax breaks when you contribute directly to a 401k plan and another retirement account (with contributions up to $6,500 per year from both sources), as well as deductions on your tax return.
If you’re a married couple filing jointly with children under 18 years old, both partners must have earned over $75,000 in 2019. These qualified earnings are taxed at 37% for those earning more than $100,000, and 21% for anyone making less than $150,000.
Not all banks offer these accounts with fees, which can range from 0.1 percent on most of our picks to 3.5 percent on some online banks (including Fidelity and CIT Bank). But there are exceptions where it can cost you extra. Here are some examples:
Best overall high-yield savings account
The Wells Fargo Money Market Account is one of our best overall picks among the variety of high-interest savings accounts available, thanks to its 4.6 percent APY — and zero transaction fee. There’s no minimum account balance required, but you will need to set aside a certain amount for taxes (as defined in each of their terms of use). Plus, since this account is FDIC insured through the Federal Deposit Insurance Corporation (FDIC), we recommend doing so before you transfer funds to maximize protection.
The Wells Fargo Money Market Account comes with automatic cash deposits, plus access to numerous financial tools such as mobile banking, bill pay and check cashing. It also has 24/7 customer service representatives available, along with FDIC coverage for nearly all of the top 100 U.S. stocks, ETFs, and commodities, including gold and silver.
Bottom line:
With over 1.6 million customers—including 5 million active users as of March 2022—the Wells Fargo Money Market Account is a great option for those who want the highest yields without sacrificing safety, security, or convenience, and we’ve found it to be a highly reliable source of passive income—especially during our time as a client. Learn more about how we evaluate our loans, loans for sale with rates below, and sign up for free by clicking here.
Best personal high-yield savings account
If you’re looking for something simpler to manage than checking and saving and looking for an account with lower costs than full-service credit cards, don’t sweat it! A good bet is the American Express Business Cash Card, which allows you to enjoy some perks like unlimited ATM withdrawals and multiple spending categories. This can help you save even more while also providing a bit more flexibility than other high-rate cards, such as the Discover Network, which doesn’t allow users to spend outside of designated spending categories.
The card itself can provide 2.9 percent APY, though it does have some limitations on what can be spent within its specified budget. However, it still includes two important features: 1.2 million retail ATMs nationwide and unlimited spending on spending categories, like travel, dining, and movie theaters.
Bottom line:
If you’re looking for a simple way to increase your long-term returns without having to deal with any unnecessary fees or restrictions, the American Express Business Cash Card is worth considering. It has fewer requirements for opening an account and will allow you to keep your money in higher interest areas for longer periods without affecting overall returns. And yes, like many other bank and credit union apps, the American Express Business Cash Card comes with a 0-fee 30-day trial period that gives you a chance to check out the app before signing up for a regular subscription. So why not try a few minutes early and see how much better they make your financial future?
Best interest savings account
A solid choice for individuals who want the benefits of a high-yield savings account without the hassle of managing fees is the Fidelity Personal Credit Union Checking account. As with the Wells Fargo Money Market Account, you will need to set aside a specific amount of money for taxes each month, but once opened, the Fidelity Personal Credit Union Checking account offers the same basic features and protections as the Wells Fargo Personal Credit Union Checking account.
The Fidelity Personal Credit Union Checking is just one part of Fidelity’s portfolio of offerings, which also includes CDs, certificates of deposit (CDs), debt mutual funds, and real estate securities investments trusts (REITs). For example, Fidelity CDs can be invested into either equity or fixed-income funds—which means they can generate steady cash flows while offering higher rates of return.
Bottom line:
Though Fidelity Personal Credit Union Checking does come with some fees and restrictions, it remains a secure and easy-to-manage option for those seeking the best possible rates and convenience without compromising on security or privacy. Its 0.6 percent APY makes it accessible for people of every age and experience level, and its $50 minimum investment limit provides plenty of room for growth. Fidelity plans to roll out four new features later this year—including direct transfers to debit cards to give consumers even greater peace of mind or increase leverage on their chosen method of investing.
Best high-yield savings account
You may already know that investing in real estate is known to be one of the most lucrative ways to earn significant profits. That’s especially true if you’re willing to put in the work upfront. Thankfully, the REIT sector is booming, as evidenced by rising home prices around the globe. That said, the key to taking advantage of real estate investing and maximizing your rewards doesn’t necessarily mean chasing down homes in expensive parts of town, nor does it necessitate a lot of hard work (and no, this isn’t to say you should neglect to buy properties in desirable locations). Instead, you could consider investing in rental properties in underserviced neighborhoods, such as East Point Village in Brooklyn, for example. Or perhaps you want to look into alternative housing options such as condominiums, multi-family buildings, ground-floor lofts, and apartment complexes. Either way, the potential gains of investing in real estate shouldn’t be underestimated.
The upside of buying rentals isn’t limited to the initial purchase price, either. By investing in property management services such as ERA Realty Trust, investors can own their assets in perpetuity. When the owner dies, the business automatically passes the ownership to its beneficiaries, regardless of whether or not someone purchased the asset. This approach has been shown to result in significantly higher risk-adjusted returns compared to conventional investments in individual real estate markets.
Bottom line:
Real estate investing may not always be for everyone, but when done wisely and consistently, its potential rewards can be substantial. Consider starting small and gradually building up your exposure, and then diversify your portfolio to ensure you’re getting the biggest bang for your buck, all while living comfortably at home. Investing in rental properties will require patience and discipline to achieve long-term success with little effort or stress involved.
Best stock market mutual fund
If you’re like most people, you might think real estate investing isn’t for you. However, you’re wrong. Even if you’re not interested in investing in real estate, there are still various types of stocks that can be considered among the best investments in general. Stock mutual funds are designed to help you take advantage of the power of stock investing without needing to purchase shares yourself (or hold onto them until you sell them off). They can provide you access to thousands of stock portfolios, allowing you to build wealth more quickly than in real estate-based investing.
The first step is selecting a particular stock mutual fund based on your investment strategy. You will likely need to choose between actively managed funds and passively managed ones, depending on your goals and risk tolerance. After that, you’ll need to select a stock you’d like to invest in (or invest in as part of a larger investment team), which will determine your mutual fund’s risk profile and performance. Once you’ve decided what kind of portfolio you want to start with, you’ll need to choose the type of stock mutual fund you’d like to put your money into. Read our guide on choosing the right stock mutual fund for beginners to learn more.
Bottom line:
While the odds of investing in real estate or stocks are slim when compared to investing in stocks, you can still benefit from purchasing a stock mutual fund that caters primarily toward riskier investments, like the following three options based on your financial goals:
U.S. Stocks with Low-Risk Traits
If you’re looking for a relatively safe investment with a minimal degree of risk, you may want to consider investing in stocks through a mutual fund (like Fidelity Personal Credit Union Checking). While you won’t have control over how much risk each company takes, you can reduce your risk thanks to the presence of diversification, which reduces the impact of one stock’s fluctuations on others (which will, of course, affect yours).
Other Mutual Funds We Recommend
If you’re looking for a way to get started with investing in the stock market but don’t want to spend too much time researching which companies to add to your portfolio, Fidelity US Money Market Fund has become a very popular option for recent high-yield savings account holders who are looking
