11 bank accounts with no monthly fees that pay 5.50% APY or more on your savings

Our experts answer readers’ banking questions and write unbiased product reviews (here’s how we assess banking products). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.

When you’re looking at bank accounts that pays 5.50% APY or more, make sure it’s insured by the FDIC or NCUA.

Delmaine Donson/Getty Images

Several bank accounts pay 5.50% APY or more right now.
The minimum opening deposits for these accounts range from $1 to $25,000.
The accounts on our list do not have any monthly service fees; CDs have early withdrawal penalties, though.

If you’re searching for a high-yield bank account with no monthly fees to grow your savings, there are numerous options. 

Here are 11 bank accounts paying 5.50% APY (Annual Percentage Yield) or more right now. If you prefer banking with a more well-known bank or want to explore more interest-earning accounts, consider going through our best high-yield savings accounts or best CD rates guides.

11 bank accounts paying 5.50% APY or more

Our list includes certificates of deposit and one high-yield savings account. The savings account from Betterment is technically a cash management account, meaning it’s offered through an investment platform or fintech company.

CDs may be a good choice for savings you don’t need to access for a specific time frame. These accounts never have monthly fees. However, you’ll still want to be mindful of early withdrawal penalties, a charge you’ll pay only if you take out money before the term ends.

1. Connexus Credit Union Certificates – 5.76% APY

If you have at least $5,000 to open an account, you may like Connexus Credit Union. The credit union has a 1-year certificate paying 5.61% APY. It also has a 1-year jumbo certificate paying 5.76% APY, which might be worth exploring if you have at least $100,000. 

To join Connexus Credit Union, you must meet one of the membership eligibility requirements. The easiest way to join regardless of where you live is to become a member of the Connexus Association by making an initial $5 donation.

Connexus Credit Union Review

2. Dow Credit Union Simple CDs – 5.65% APY

Dow Credit Union may be a solid option if you’d like to grow your savings in a short-term CD. The credit union has a 3-month Simple CD term paying 5.65% APY and a 6-month term paying 5.50% APY.

You’ll need a minimum of $500 to open a Simple CD. Membership is also required to open an account at Dow Credit Union. The easiest way to become a member is to make a $10 donation to the Midland Area Community Foundation. The credit union also has other ways to join, such as being part of a Select Employer Group or having a family member who is a current Dow CU member.

3. TotalDirectBank CDs – 5.65% APY

TotalDirectBank is an online-only financial institution. Its 1-year CD pays 5.65% APY, and the 6-month term offers 5.56% APY. TotalDirectBank CDs have a $25,000 minimum deposit and a $1 million maximum deposit per client. 

TotalDirectBank is available throughout the US except Florida, Puerto Rico, American Samoa, Guam, Northern Mariana Islands, and US Virgin Islands. 

4. Sallie Mae CDs – 5.55% APY

Sallie Mae is an online bank with savings, money market accounts, and CDs. The bank’s 18-month CD term offers 5.55% APY, and the 12-month, 13-month, and 15-month terms pay 5.50% APY. Sallie Mae CDs require at least $2,500 to get started.

Sallie Mae Bank Review

5. Signature Federal Credit Union Share Certificates – 5.55% APY

Signature Federal Credit Union is another good option for short-term share certificates. Its 3-month term offers 5.55% APY, and the 6-month term pays 5.50% APY.

You’ll need at least $500 to open a certificate. The easiest way to become a member of Signature Federal Credit Union is to enroll in the American Consumer Council. 

Signature Federal Credit Union Review

6. Western Alliance Bank CDs, powered by Raisin – 5.51% APY

Through Raisin, you can use one platform to find, fund, and manage multiple high-yield savings accounts and CDs from a multitude of banks and credit unions. Currently, the Western Alliance Bank 9-month and 12-month CDs have the highest rates available at Raisin: 5.51% APY. You’ll only need $1 to open an account. Raisin also has other accounts that pay well above 5% APY.

Raisin Review

7. Betterment Cash Reserve Account – 5.50% APY for new customers

You may like the Betterment Cash Reserve Account if you’d like to save and invest at the same place. Betterment, the online investment platform, is offering new customers 5.50% APY on the Betterment Cash Reserve Account.

Betterment Cash Reserve is technically a cash management account, but it’s similar to a high-yield savings account. High-yield savings accounts offer a higher APY than a traditional savings account. The Betterment Cash Reserve Account account notably offers the best high-yield savings account rate right now.

To get the promotional rate, you’ll open it through the signup link and make a deposit from an external bank account in the first 14 days. The promotional rate will be applied to your account until December 31, 2023. After that, you’ll earn the standard rate (currently 4.75% APY). This account doesn’t have any monthly fees and has a $10 minimum opening deposit.

Betterment Cash Reserve Review

8. Forbright Bank 1 Year CD – 5.50% APY

Forbright Bank is an additional financial institution offering 5.50% APY on a 1-year CD. You might like Forbright if you value banking with an eco-friendly financial institution. Forbright Bank is Fossil Free Certified, which means the bank will not lend to fossil fuel companies or projects.

9. Limelight Bank 1 Year CD – 5.50% APY

Another online bank paying 5.50% APY on a 1-year CD is Limelight Bank, an online division of CCBank. Limelight Bank CDs have a $1,000 minimum opening deposit. You’ll like this bank if you’re specifically looking for CDs.

10. Popular Direct 1 Year CD – 5.50% APY

Popular Direct is an online bank with high CD rates. The 12-month Popular Direct CD offers the highest rate available at the bank: 5.50% APY. 

Popular Direct also has one of the best high-yield CDs out there.

Popular Direct Review

11. Rising Bank 1 Year CD – 5.50% APY

Rising Bank, an online-only subsidiary of Midwest BankCentre, has a 1-year CD paying 5.50% APY. A minimum of $1,000 is required to open a CD. The online bank might be worth considering if you’re also searching for a high-yield savings account or interest-earning checking account, so you can open all three accounts at the same bank. 

Rising Bank Review

What to keep in mind when looking for a high-interest account

Even if a company offers a high-interest account, make sure your deposits are secure. When you come across a bank that you’re unfamiliar with, check for federal insurance.

If a bank fails, your insured deposits — $250,000 per depositor — are safe at a federally insured financial institution. 

The accounts on our list are protected by FDIC or NCUA insurance. The cash management account is offered by an investing platform but is still FDIC-insured through partner banks.

Read the original article on Business Insider

Leave a Reply

Your email address will not be published. Required fields are marked *