Best Online Savings Accounts In September

Brick and mortar banks tend to offer lower rates when compared with online banks because of the additional overhead costs that they have to bear along with other expenses. This makes online banks tend to be more suitable and safe especially when you deal with any of the best online savings accounts in September.

It is exciting to know you can have access to banks that will give you higher rates and better security. This attribute is associated with an online savings account because it’s a strategy used to attract your money.

If you want to bank online, ensure that you do so with online banks that are members of the Federal Deposit Insurance Corp. (FDIC). Online banking is a great way to earn at a higher rate on your online savings account in September.

Before discussing the various available high yielding online savings accounts, it is good you understand what a savings account is which brings us to the question ‘what is a savings account?. A savings account can be referred to as an account used to keep the money to yield interest for a particular purpose or a specific period. 

The interest rate on savings accounts varies from bank to bank. Other determinants include the opening balances, transactions made, and other conditions as stated by the bank involved.

Some of the common terms used for savings account include:

APY: This means Annual Percentage Yield and it is the rate of compounded growth in one year.

Interest rate:  This is unlike APY that is calculated over some time, the interest rate is the rate at which your money is designed to grow.

Compound interest: This is the rate at which your money yields interest and even rolls over to earn more within a period depending on the financial institution involved.

Yield: This is the amount earned when calculated at a particular rate. For example $5 on a $1,000 is earned when the rate of 1.00%APY is applied.

Monthly service fee: This is the fee that you are charged every month for owning the account.

Minimum balance: This is the amount that is sometimes used to keep your account active. You may not be able to make withdrawals below this amount.   

The best online savings account in September and their interest rates in no particular order

 

Marcus by Goldman Sachs

Marcus by Goldman Sachs, an industry leader offered on all its savings balances a competitive rate. An opening balance is not required and there is no monthly service charge. Marcus offered a same day transfer of a maximum of $100,000. Access to your account is also possible on the Marcus mobile app which is available on the Google Play and App store.

What to bear in mind

The Marcus savings account online does not allow for cash withdrawals and deposits, so you will have to make use of online and wire transfers and the maximum balance is $1 million.

 

Citi Bank

This is an arm of Citigroup that handles retail banking. In 2019, it launched Citi Accelerate, an online savings account that yields higher rates than many larger banks. Though its APY is available only to selected markets there is no minimum opening balance or minimum balances to earn the APY.

What to bear in mind

A monthly maintenance fee of $4.50 is attached to the account if it opened in an Access or Basic account.

 

Fitness Bank

This financial institution is a division of Newton Federal Bank that offers a healthy and unique avenue of growing money to its customers. The interest rate you enjoy is dependent on the average number of steps taken every month.

To start earning with this bank, you will need to open a bank account with Fitness Bank with a minimum of $100.

What to bear in mind.

In this online banking, charges that accompany this account includes a monthly charge of $10 for maintenance and an additional $10 for excessive withdrawal fee on every debit transaction (this applies when withdrawal exceeds six). You can only earn an interest rate of up to 1.05%APY where you have made 12,500 steps and above within a month.

 

Synchrony Bank

The high yield savings account of Synchrony Bank is 0.75% APY on all balances with no monthly fee attached. One of the uniqueness of this savings account is that there is an optional ATM card that ordinarily is not included with a savings account in other online banks.

A customer has easy and free access to Accel or Plus ATMs.  In domestic ATM fees, there is also a refund of about $5 on each statement cycle.

What to bear in mind

The optional ATM card can be used for making only withdrawals but deposits can be done through mobile check deposit on the bank’s mobile app, online transfers, wire transfers, or by sending a check to Synchrony via mail.

 

Vio Bank

This bank is a division of MidFirst Bank and was established in 2018 although MidFirst Bank was established in 1911 and became a member of FDIC in 1934. Although it’s relatively new yet it has gained an edge above several other savings accounts because of its high rate of 0.83% APY. A minimum of $100 is required to open an account with no monthly maintenance charge and its rate applies to all balances.

What to bear in mind

Though there are no monthly charges $5 is charged monthly when you request paper statements. Also, since it’s a division of MidFirst Bank, all deposits made to Vio Bank are regarded under the FDIC as MidFirst Bank deposits.

 

CIBC Bank USA

To open an Agility Savings account with The CIBC  Bank, a minimum of $1,000 is required and your opening deposit must not exceed $250,000 but there is no monthly service charge. Its rate is 0.80% APY

What to bear in mind

External transfers cannot be made with CIBC NetBanking online portal within the first thirty days after the account has been opened. Besides, note that $1 million is the maximum balance that a customer can have in an Agility Online Savings account.

 

First Foundation Bank

With this Financial institution, account balances within $5million attract 1.00%APY while balances that exceed this amount attract 0.35%. there are no extra monthly charges attached both to and from the account.

What to bear in mind

For you to enjoy the benefits offered by this bank, you must have a minimum of$1,000 of fresh deposit to open the account.

With the information on the best online savings accounts in September, you can make a choice.