Best High Yield Savings Accounts By Big (& Trusted) Banks
Looking to save money in high-yield savings account with larger banks? Let me give you 2 recommendations that you can feel good about parking your money in the bank in the midst of banking crisis after the fall of Silicon Valley Bank in 2023.
When we say large American banks, we think of JP Morgan Chase, Wellsfargo, Bank of America. While these brick and mortar banks provide local branches for customers to withdraw their money, their savings interest rate is near zero at 0.01% APY. It’s sad to be saving your hard-earned money with these banks earning no interests while the inflation rate in America is at around 6%.
I know there are many high-yield savings offer right now with the Federal Reserve kept increasing the interest rate since 2022 but if you are like me wondering how safe are banks like Ally, CIT, Citizens, Marcus, then you will be hesitant to open accounts with them. To be honest, I get to know of these online banks only from financial websites that featured them and some of them as sponsored products. Rarely do I hear about them elsewhere.
So, upon my recent research, I found 2 of the reputable banks that surprisingly offer much higher interests rates.
1. American Express – High Yield Savings Account (3.90% APY)
Yes, agree, I don’t normally think of American Express as a bank for savings account because they are known as credit card company or payment provider. However, we all know that it is a financial services company with a long-standing reputation. It is one of the world’s most trusted and recognizable brand with a long history dated back 160+ years ago when it was founded.
[Update: Amex updated their HYSA interest rate from 3.75% to 3.90% as of May 16th, YAY!]
At 3.90% APY, the interest rate is compounded daily, posted monthly and is 10X higher than national average. Opening an account requires no minimum, no monthly fees. Just like any FDIC-insured bank, each depositor is insured to at least $250,000 per depositor, per insured bank, per ownership category.
To learn more, go to American Express High Yield Savings Account and apply online.
This post is NOT affiliated or sponsored, I just like helping people and sharing solution to a known problem.
2. Citibank – No Penalty CD (4.05% APY)
Okay, well, Citibank savings accounts still offer embarrassingly low interest rates. But, they do offer attractive interest rate on their No Penalty CD for a fixed 12-month term. As the account name implies, there is no withdrawal penalty if you need your money earlier than the maturity date. You can withdraw the full balance without withdrawal penalty beginning 7 days after account funding. Opening an account requires a minimum of $500 deposit but at 4.05% APY, it is one of the best rate offered by a leading global bank.
Since the account is a Certificate of Deposit, you earn a guaranteed interest rate during the CD term. You are able to withdraw the full balance without early withdrawal penalties (after the first 7 days) but not partial amount.
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