The Best High Yield Online Savings Accounts for Business Owners

Looking for a place to stash your business cash savings? I spend a lot of time talking about the need to have your money in a high-interest or high yield online savings account. I thought it was about time I put together a list of the top high yield online savings accounts.

This is by no means a complete list of the accounts out there. It’s just the ones I’ve had some experience with.

The rates are constantly changing, so don’t focus on that too much.

Where I’m Actually Saving Right Now

Note: I currently use Ally as my primary personal savings account (mainly because I use them for checking, they are old, and they are solid). However, none of these online banks, Ally included, are paying a decent interest rate right now. So, I’ve sent a big portion of my cash emergency savings to a few different different places (all are NOT FDIC insured):

  1. I have savings with Peerstreet in their Pocket account earning 2.5%. Note, you need to be accredited to use Peerstreet. See my full review on Peerstreet and Pocket.
  2. I have money with Stairs by GROUNDFLOOR (another real estate crowdlending site), which touts a 6% rate. I’m just getting started here. Let’s see if this rate holds.
  3. I’m also considering decentralized finance (DeFi) savings accounts, like Gelt Finance. Some of these companies are touting interest rates above 10%.
  4. Finally, I’ve got more invested in my Vanguard taxable investing account. This is sitting in their S&P 500 index fund.

Other Online Savings Account to Stash Your Personal and Business Cash

Now for the safe money. Any of these accounts below would be great compared to the savings accounts held at traditional brick and mortar type institutions. Don’t forget that all of these high-yield online savings accounts are FDIC insured.

There are many online high yield savings accounts now available across the Internet. All contain different features, both positive and negative. But most, if not all, are FDIC insured, contain no fees, and pay an interest rate significantly better than traditional savings accounts.

You should definitely find one that’s right for you and get started saving. And don’t just consider this list. These are just some of my favorites.

Featured: SaveBetter.com access multiple high-yield banks with one account (includes a $125 bonus to start)

SaveBetter is a new platform connected to PayPal founder Peter Thiel that will allow you to access multiple high-yield savings products (savings, CDs, and money market funds) from one platform. The rates look strong compared to what you’ll see below…

Okay, here are the rest of the best savings accounts:


More Detail & Reviews

Featured: CIT Bank

CIT Bank offers a great no-fee online savings account called Savings Builder. This online savings account is good for two types of people: high balance savers and monthly savers. In order to receive the highest interest rate you either need to keep a $25,000 balance or make a $100 minimum opening deposit and continue $100 minimum single deposits every month.

CIT Bank also has a nice money market account as well as CDs, IRAs, and custodial accounts that customers will like.

Ally Bank LogoAlly Bank

Ally Bank offers some pretty nice services aimed at treating their customers responsibly.

They have both a savings and an interest checking account. They also offer some of the best CDs available today. Not just because of rates, but because of their flexibility. They have a no penalty CD and a one-time rate adjustment CD. They are FDIC insured and charge no ridiculous fees.

Read our review of Ally Bank.

high yield online savings accounts - Discover BankDiscover Bank

Discover regularly offers some of the highest rates out there on their savings account. They have no minimum balance requirement and no excessive fees and they are FDIC Insured. What more can you ask for?

In addition to the savings account, they have a really attractive set of CDs, and their one-of-a-kind IRA CDs.

Read our review of Discover Bank.

high yield online savings accounts - Capital One 360360 Savings by Capital One

360 Savings by Capital One is, in my opinion, one of the best old-school online savings account because of their great website, excellent customer service, and a multitude of other financial products.

They offer a good savings accoun and a 360 checking account if you want that. Like others, there is no minimum to open an account.

They also have mortgages, life insurance, and also, low-cost investing through their Capital One Investing product. They are FDIC insured and have no crazy fees.

Read our review of Capital One 360.

high yield online savings accounts - FNBO DirectFNBO Direct

FNBO Direct is a product of the very old and stable First National Bank of Omaha. They offer a nice, FDIC-insured savings account with a leading interest rate. There is also no minimum to open a savings account, which means you can open one with as little as a dollar.

Their website is very user-friendly, but maybe not as easy to maneuver as others. They are FDIC Insured and void of any bad fees.

Read our review of FNBO Direct.

Synchrony Bank

Synchrony Bank offers a very healthy interest rate on its no-fees/no-minimum savings account.

Not only can you open an account with no minimum deposit, but there are also no fees to access your money via ATM. If you get hit with a separate ATM surcharge fee, Synchrony will even refund such a fee to you, up to a maximum of $5 per month.

In addition, if you end up overdrawing your account, rather than allowing the overdraft to go through and charging you a hefty overdraft fee, Synchrony will refuse to honor the withdrawal–so you really don’t have to worry about fees.

TIAA Bank

TIAA Bank offers a great money market account. They have a high introductory interest rate, as well as a Yield Pledge which promises your yield will stay in the Top 5% of Competitive Accounts.

Their initial deposit minimum is $500 and there are no monthly fees and it’s FDIC insured. One of the best features of this account is the Online Check Deposit feature available through their mobile banking app.

Read our full review of TIAA high yield money market accounts.

UFB High Yield Savings

UFB Direct, a division of Axos Bank, offers a superior high yield savings account. It has no minimum deposit requirements and charges no maintenance or service fees.

UFB Direct is big on security too. They are active with fraud and anti-virus protection and utilize SSL encryption to protect your account. Automatic logouts also protect against unauthorized use. Not only is your account information safe with UFB Direct, but your money is safe too. Money in your UFB Direct account is FDIC insured up to $250,000. 

Other features that make UFB Direct a great choice for your next savings account include a complimentary ATM card, online and mobile banking options, and free transfers between direct deposit accounts. 

If you’re looking for an online savings account with high earning potential, UFB Direct may be the perfect choice.

Related: Best Automatic Savings Apps

PurePoint Financial LogoPurePoint Financial

PurePoint Financial offers a simple, no fees, no frills, high-interest, online savings account. This bank has paired down their deposit accounts to only a savings account and CDs. Yup, no checking accounts here.

The minimum deposit is $10,000 which is fairly high for this list but they do offer a high-interest rate. PurePoint also has some physical locations which is always nice. They are currently in Florida, Illinois, New York, and Texas.

Their savings rates are really impressive and the hybrid local factor makes them a great option.

Why We Need High-Yield Online Savings Accounts

I love the online savings account. It has so many uses. Mainly it will simply help you start saving more of your money. When I first started getting passionate about my finances and making changes with managing my money, one of the first things I did was open up an online savings account.

Here’s why I did and some of the benefits of having one. Hopefully, this list will convince you to open one.

Put Your Savings Behind a Wall

Since these high-yield online savings accounts are usually online-only, getting to your funds isn’t as easy as say a regular savings account. With regular savings accounts, you can walk into the bank, or move the money in a second to a checking account using an online feature.

Online banks typically don’t have physical locations. To get your savings in and out of these accounts, you’ll usually need to transfer your money to another bank and then make a withdrawal and or use the ATM.

I know this sounds like a negative, but it isn’t. Your savings is money you should only need for emergencies or for a short-term savings goal. It wouldn’t kill you to have a 1-2 day barrier to getting your money.

Learn more about why online bank transfers take so long here

I’ve found that this barrier often dissuades me from spending money that I shouldn’t, or keeps me from raiding the emergency fund for something frivolous. So you see, this faux-wall to your savings actually helps you to save more in the long run.

No Fees or Minimums to Worry About

Let’s face it. The big guys on the banking block have run the show for far too long. A big bank checking and savings account can cost you hundreds in fees every year.

There’s no reason you should put up with ridiculous fees and minimums from banks, just so you can lend them your money. They should be paying you. But they can’t because they are fat and bloated and need your money and fees to cover their fat cat expenses.

Don’t play that game any longer. Move to an online bank where you can enjoy a fee-free environment.

High Interest / High Yield

If you do like I did for so long and keep your savings in a regular savings account, you will earn a very small amount of interest on your savings. Typically this is something like 0.10%. That stinks.

With a high-interest online savings account, you can earn much more. Look at the rate chart above to see the current annual percentage yield on these accounts.

These rates also fluctuate with the LIBOR rate. So as interest rates rise, you’ll see these rates shoot back up. I remember when the rates were something like 5.00%. Wow!

Can You Still Call Them High-Yield Savings Accounts?

I had a reader leave a comment asking whether or not these savings accounts could still be classified as “high-yield” since the rates were so low. It’s a fair question and one that I thought I would tackle here.

Interest rates are currently hovering around 2%, give or take a bit. I remember when these high-yield savings accounts were at their highest (2007-2008). They were touting rates in the 4% to 5% range. It certainly appears that rates are no longer high.

But you can’t stop your comparison there. What makes these accounts so special is that they don’t have the internal expenses that most brick and mortar banks have. As a result, they are consistently able to offer a better rate on savings accounts than banks like Chase and Bank of America, neither of which come close to even 1%.

All that to say, across the industry, banking rates are low. So the question then becomes, where do you turn to get a better rate without sacrificing the security of FDIC insured banking product? You can’t turn to the stock market or peer lending. Both are too risky. Some have turned to reward checking, which is probably a good move for those who can work within the requirements of such an account.

My money is staying put in my high-yield savings account. I’m there first and foremost for the FDIC insurance I get. I also like that these accounts provide clear separation from my checking account, and they provide the liquidity to actually use the money if it’s needed. If my account gets too full, then I’ll take the excess and put it in equities.

Rates will return. Once the major banking rates mentioned above return to normal levels, the high-yield rates will be back. I’m fine sticking around till they do.

The Best High Yield Online Savings Accounts
Avatar About Philip Taylor, CPA

Philip Taylor, aka "PT", is a CPA, blogger, podcaster, husband, and father of three. PT is also the founder and CEO of the personal finance industry conference and trade show, FinCon.

He created Part-Time Money® back in 2007 to share his advice on money, hold himself accountable (while paying off over $75k in debt), and to meet others passionate about moving toward financial independence.

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  1. Avatar Philip Taylor says

    JRobMac You can thank for federal officials for it. On the bright side, your mortgage rate is less than 4%.