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- I used to keep my money in a typical bank savings account in which it earns no interest.
- My husband convinced me to switch to an Ally high yield savings account and I’ve never looked back.
- Presentation reports, easy-to-access CDs, and other features help me maximize interest earnings.
Three years ago, before my husband and I got married, we sat down and shared our entire financial portfolios with each other. Within a few seconds of showing that I have stored all my money in a file saving account Which generated 0.01% APY, his reaction was panicked.
I had no idea my money would grow faster if it was in range High yield savings account With a much higher annual return.
Since transferring my money to a file High Yield Savings Account at AllyWith my APY rate currently at 2%, I was able to increase my money and take advantage of the perks offered through my account that help me earn more money every year. Here’s how to maximize these features.
Insider Premium Savings Accounts
1.90% APY (as of 09/15/2022)
On the American Express National Bank website (member of the FDIC)
I’m switching between HYSA and floppy CD
During the epidemic, when Federal Reserve I lowered the interest rates, the APY for the high yield savings account went down, and the money in my account was earning less than before (going from over 2% to 0.5%).
One of the advantages of Ally is that they often offer special and limited deals on High yield CDs. I put a good chunk of money, for the first time, into a CD that offers 2% interest, with no money withdrawal penalty.
Since it was so easy to transfer money back and forth, I moved the money in and out of the CD when the APY High Yield Savings Account went up again.
Comparing these rates with my old bank, I noticed that the APY rates and promotional CD rates were at least 50% higher.
My account offers a tour program
One of the advantages that Ally offers is a news program linked to my checking account. When I make transactions with my debit card, the bank automatically rounds the purchase to the nearest dollar and then transfers that money to my savings account once it reaches $5. For example, if I buy something for $6.50, the bank will take an extra $0.50 from my checking account and write it down to eventually go to my HYSA.
While making transfers between checking and savings is something I can do manually, and do often, having this rounding program helps me accumulate more money in my HYSA without even thinking about it.
HYSA doubles the interest daily
One thing I never realized about my savings account in my old bank is that the money in the account doubles the monthly interest, which means that any money deposited today will only grow once a month, and then that new balance will grow the following month.
The current bank compounding the daily interest, which means that each dollar entered automatically begins to grow at a faster rate than if the compounding occurred monthly.
Since I often deposit money a few times a week, the daily accumulation of that money helps me earn more money each year.
You don’t have to pay any fees
With my old savings account, I was hit with an $8 monthly maintenance fee if I didn’t have a $500 daily balance. While fees seem low, they can build up throughout the year and preclude growth.
An advantage of the current HYSA is that there is no minimum amount that must be in the account and no monthly maintenance fee. This helps me keep my money in a place that is growing on a daily basis, without having to worry about getting charged along the way.