Are you looking to open a savings account to manage your money and personal savings? Do you know that you can earn high interest on savings accounts with a minimum opening deposit of just $1? Yes….it’s $1! High interest saving account are offered by many banks that enable you to earn interest on your money that you deposit in your savings account.
We are committed to help you find the best information on personal finance and money. Today, in this post you will discover all the high interest saving account options offered by various banks with a minimum opening balance below US $500.
How do some banks offer high interest rate on saving account?
Interest rates on saving account vary with time and situation of the markets and economy. According to the Federal Deposit Insurance Corp (FDIC), the average annual percentage yield (APY) across all savings accounts is just 0.09% but you may have come across many banks claiming an interest rate of over 2% on savings account.
Well, that’s true because many banks offer online savings accounts which are also known as high yield savings account or high interest savings account that could earn you up to 2% or more interest rate on your deposits.
Banks raise interest rates on savings accounts and other deposits when they want to gather money and when the rates are higher it attracts deposits.
List of high interest saving account with an opening balance below US $500:
American Express Personal Savings High Yield Savings Account – It offers an interest rate of 2% APY with no minimum balance to open and no monthly fees to maintain the account.
Features and Benefits of American Express Personal Savings Account:
- Easily move money between your current bank accounts and your Personal Savings account.
- Funds transfers are readily available 24/7. Initiate online or by phone.
- Link up to 3 of your current bank accounts.
DollarSavingsDirect Dollar Savings Account – With an interest rate of 1.80% APY this account gives you the freedom to open a high interest saving account with a minimum deposit of just $1 and there’s no annual fees.
Features and Benefits of the Dollar Savings Account:
- Open your account online. It’s quick and easy.
- No need to change your checking account. Your Dollar Savings Account will be linked to your current checking account.
- Access your account 24/7 at DollarSavingsDirect.com.
Ally Bank Savings Account – You can earn an interest rate of 2% APY with no minimum opening balance requirements and no maintenance fees.
Features and Benefits of the Ally Bank’s High Interest Savings Account:
- 24/7 support on Call, chat or email. A real person is always available to help, day or night.
- Make a transfer on any device or using your voice with The Ally Skill for Amazon Alexa, and deposit checks anywhere with Ally eCheck Deposit.
- Check your balance, schedule transfers and keep track of your savings at home or on the move.
HSBC Direct – Earn an interest of 2.05 APYwith HSBC Direct Savings Account with no minimum opening balance and no monthly fees.
Features and Benefits of HSBC’s Savings Account:
- 24/7 online account access including Live Chat assistance .
- Deposit checks with your mobile device using HSBC Mobile Banking App.
- Move money quickly and access your funds using online transfers limited to 6 transactions as per the Federal Reserve Regulations.
Synchrony Bank High Yield Savings Account – It gives you a 2.05 APY interest rate on your deposits with a freedom of no minimum opening balance.
Features and Benefits of Synchrony Bank’s High Yields Savings Account:
- 24×7 Online and Mobile Banking available.
- You can withdraw money online, by phone or ATM.
- There is no fee for a withdrawal or transfer over 6 transactions if it is on an occasional basis.
Barclays Bank Online Savings Account – This high interest saving account from Barclays Bank gives you a 2.05% interest rate and there’s no minimum deposit to open an account. No maintenance fee as well.
Features of Barclays Bank’s Online Savings Account:
- Secure, 24/7 online access to your funds.
- Online transfers to and from other banks.
- Direct deposit to make saving simple and easy.
CITI Bank Direct Ultimate Money Account – You can earn an interest rate of up to 4.25 APY, no minimum account balance and no monthly fee as well.
Features of CITI Bank’s Direct Ultimate Money Account:
- You get a Citibank EZ Checking account free along with Direct Ultimate Money Account.
- Free Online Bill Payments through your EZ checking account.
- Use Citibank’s Inter Institution Transfers next-day service to move money between your Citi and non-Citi accounts. It’s absolutely free.
CITI Bank High Yield Savings Account – It gives you 1.55% APY interest rate and the minimum opening deposit is US $100 but there’s no fee to maintain the account.
Features and Benefits of CIT bank’s high yield savings account:
- Daily compounding interest to maximize your earning potential
- You can transfer funds with electronic transfer, mail in check, or wire.
VIO Bank Online Savings Account – With this high interest saving account you can earn up to $2.35% APY interest rate but there’s a $100 minimum opening deposit and no monthly maintenance fee.
Features and Benefits of VIO Bank’s account:
- Interest is compounded daily, growing your money fast.
- 6 free withdrawals per monthly statement cycle.
- Flexibility to grow your money and access it when needed.
Why you should get a high interest saving account?
Online Savings account are a great way to start saving and growing your money. Whether you are salaried or self-employed, you may need money for emergency or for buying a house and with a high interest saving account you can earn interest on your money.
These high interest saving accounts give you flexibility and security of saving your money and withdrawing whenever you need it.
Some banks may charge you a fee per withdrawal when your limit of 6 free withdrawals is exhausted and some allow free withdrawals occasionally even after your limit is exhausted.
Start growing your money today with any one of the above mentioned high interest saving account and don’t forget to check a bank’s website for the most updated interest rates.
Above mentioned banks are insured by the FDIC and there’s a limitation on withdrawals per statement cycle which is up to 6 as per the Federal Reserve Regulations.