Best Savings Accounts - BreadHero
Savings accounts are a good option for the people who want to put their money to work without risking it in the stock market. Most saving accounts only yield a certain set percentage of return each year, and in those cases, we all need to do our independent research so that you have knowledge of your own and know which bank is the best to open a savings account in. Many banks continuously change their overall yields, and the returns are also sometimes influenced by external factors and external regulations. In this article, we are going to talk about the best saving accounts you can use, and we are also going to talk about the ways through which you can end up generating the maximum amount of profit while taking the lowest amount of risk.

What Is An Online Savings Account?

An online savings account is a way through which individuals can save their cash and also end up generating a high return for that amount. With the world shifting to digital mediums increasingly, many customers are choosing to bank online instead of visiting the conventional branches.
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Online banking is more comfortable, more convenient, and time-saving. You can end up saving a lot of your time by opting for online banking. There are also many different types of saving accounts that are available in the market—a few of which I have described down below.

Regular Savings Accounts

The regular savings accounts are the ones that have no fees or any minimum balance requirements. These kinds of saving accounts also place no restrictions on the owners’ ability to access the funds, and they also do not have the highest APYs.

High-Interest Saving Accounts

These kinds of accounts offer you a relatively higher APY than regular savings accounts, and these accounts can also place quite a few restrictions on being able to access your money. These accounts may also require you to keep a larger sum of money in your savings account to be able to earn a high rate.
Below I’ve listed some of the best saving accounts that you can check out.

CTI Banks Savings Builders

The CTI Banks Saving Builders system is an excellent way through which you can get up to 1.70% APY if you can maintain a balance of around $25,000 or more. You can also earn a lot more if you have a fixed deposit an amount of $100 each month.
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This account has a user-friendly mobile app, which means that you can track and monitor your account activity anytime, anywhere. The return that you could potentially get from CTI is approximately 18 times higher than the return you would be able to get from elsewhere. There are also no monthly fees like in the case of most accounts; the CTI account only charges you a $10 wire transfer fee if your savings amount is less than $25,000. The app can allow you to transfer amounts quickly and even deposit checks remotely.

Hsbc Direct Savings

The HSBC Direct savings account can help you grow your money at 18X the average rate when you apply exclusively online. The name HSBC is enough to grab anyone’s attention, and this account is another account that you can open without worrying about catering to the monthly maintenance fees. This saving account is the best for young adults and has won numerous awards for being the best saving account for young adults. You do not need much initial capital to open the account. You can open the account with as little at $100.

Barclays Online Savings

Barclays is in itself a very well known name; their online savings account is a good option for the people looking for a high rate of APY with minimal account fees. The online savings account does not need any minimum balance to open, and there are no monthly maintenance fees for these accounts.

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Through this savings account, you can get secure 24/7 access to your funds online, make transfers with ease, and also monitor your credit easily. The savings account also comes with some inbuilt tools that can help you save and also facilitate your savings process by setting small target goals for yourself.

Capital One

The capital one account can give you savings at around five times the national average. The capital one saving plan is also FDIC insured, which means that you can rest assured that your money is safe and at work giving you profits. They also have an app through which you can monitor and check up on your money each time, and the mobile app can help you access your account 24/7 from your home or from anywhere around the world. They also have a bonus reward system which can help you earn bonuses if you fulfill the required conditions.

Varo Savings Account

The Varo Savings account is another good choice because this kind of monthly saving account has no fees of its own. You can end up saving much money through the savings account and with the no maintenance fees. This type of savings account has no minimum balance fees and also doesn’t have any foreign transaction fees as well. This saving account setup means that you can actually create values from your savings, and there are also no overdraft fees from this type of account.

Discover Online Savings Account

The Discover online savings account can also help you gain a higher yield, and their interest is compounded over monthly and yearly rates. To open a Discover savings account, you do not need a minimum balance, and you also need to have no monthly fees or minimum opening deposits. You can even end up getting an official bank check for no cost at all, which can help you get the maximum returns on your savings as possible. There are no excessive withdrawal fees on your account, and you can quickly initiate stop payment orders as well.

Can Savings Accounts Lose Money?

Most saving accounts are insured and come with the guarantee that they will not be losing any money. You end up earning a lot less from your money if you choose to invest in saving accounts because saving accounts don’t generally give as high a return as you would get if you were to invest in stocks.
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Whatever you put in an FDIC of NUCA insured account is extremely safe. Therefore if you’re thinking of opening a secure savings account, then you should only opt for saving accounts that are protected by either the FDIC or by the NUCA.

What Are The Most Important Things To Have In A Savings Account?

There are a couple of things you should look for while opening a savings account. The first thing you need to make sure is whether or not the savings account you are considering is insured or not. The second thing you need to check is the return you are getting. Naturally, you would want the highest return possible for your savings so that your hard-earned money just doesn’t sit there losing value.
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Another factor you need to take into consideration is the transactional costs associated with your savings account. Make sure that there are no hidden charges associated with a bank’s savings account because if a savings account has too many hidden charges, you might end up making a significantly lower profit than you would have initially planned to. You also need to check whether your savings account has a bonus reward system or not. Bonus reward systems can be an excellent way for you to save and make cash. Saving account systems can help you earn a lot by following their rules.

Why Do Most People Prefer Online Savings Accounts?

Online saving accounts are much more convenient than the regular savings accounts, they don’t have the traditional brick and mortar setup, which means that these accounts incur significantly fewer costs, and most online saving firms are thus able to offer higher APRs because of the low prices. Online saving accounts also don’t follow the standard setup of time and space, and they operate around the clock quite literally. With online banks, you can get 24-hour customer service and can get chat support at any time of the hour. Traditional online saving accounts don’t afford you the same flexibility, you can transfer funds electronically, and you have to limit yourself to their working hours. Traditional saving accounts give people the option to visit the banks in person and also communicate their concerns directly with a person. Some people prefer human contact to be able to communicate their concerns effectively, and they find assurance in having a familiar face associated with them.

Are Online Savings Accounts An Ideal Choice?

Online saving accounts are an excellent choice for many people because of their convenience and ease of use, through online accounts, you can make all your essential banking decisions from the comfort of your home. Online saving accounts are ideal for most people because of their high convenience, coupled with their high rate of return. For most banks, there is a considerable inherent cost associated with opening branches and also running them, which causes them to give up a significantly lower APR.
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Most online banks do not have that setup and, as a result, can offer a higher APR, which translates into better earnings for individuals. The higher APR and insurance security is a good incentive for most people if not all of them. Through online saving accounts, you can manage your money wherever you are, no matter the time and no matter the place. Shifting everything online means that you can keep a hawks eye on your savings, and it can be immensely difficult to take your savings out. Online saving accounts are ideal for many people on the go and are also suitable for young adults who do not have much time on their hands and are comfortable using online mediums for their transactions. Many middle-aged people are reluctant and also afraid of the online system and are scared of being scammed. The online banking system is an excellent choice for people who have basic banking needs and do not have any special banking needs that require any special attention from them.

Do We Have To Pay Tax On Our Savings Accounts?

Yes, all the earning generated from saving accounts are taxable, and most banks offer the feature where your tax can be deducted automatically. However, this is dependent if your initial savings can generate a profit big enough to come under any tax bracket.
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If you earn low profits, then you might not generate a taxable income. However, that is not most people’s goal, and many people want to make much profit.

What Are The Rates For The Best Savings Accounts?

Typically the best savings accounts interest rates are around 1.80%, but that can end up changing to lower their rates in response to the FED emergency rate cuts. If you have a $5000 savings balance, an account that gives 1.80% will be able to earn more than $90 per year.

With saving accounts, you can end up having some money set aside for emergencies, and it will also help you earn much money without much effort. Mostly banks end up having the same APYs for months, which means that you can end up getting a standard rate of return.

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If you’re looking for the best savings accounts, then you need to conduct research on your own and use your research to make conscious decisions. There are many savings accounts available that offer a high APR rate. However, the APR is not the only thing you need to be necessarily looking at. There are a lot of other things like insurance, bonus rewards, and hidden costs that people need to be wary of before opening a savings account. You can also open multiple saving accounts in different banks to try all of them out and see which one works for you best.

Charles Stahle

BreadHero Founder

Charles is an aspiring business and economics student at the University of Maine. He has been investing since his early years of high school, and has a knack for finance. Combine this with his passion for digital marketing, and you get The Bread Hero, a financial advice blog!

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