High-yield savings accounts are an excellent way to grow your money, yet many people keep their funds in accounts with very low interest rates. As a result, a lot of savers are missing out on straightforward, passive income.
If you’re like most people, you might not even remember the interest rates your checking or savings accounts currently earn. They may have been explained when you opened the account years ago, but odds are you haven’t checked them recently.
Traditional brick-and-mortar banks often offer very low savings rates. Examples of some of the lowest standard savings rates include:
- Bank of America standard savings: 0.03%
- Wells Fargo Platinum Savings: 0.05% APY
- U.S. Bank standard savings: 0.01%
Those figures are extremely low, which means your savings aren’t growing nearly as fast as they could.
That’s why I want to highlight Betterment Everyday. Many large banks reserve better rates for customers with very high balances—often $25,000 or more—but Betterment Everyday provides competitive rates to all customers, even if you start with just a cent. That accessibility helps more people begin earning higher interest immediately.
If you want a no-cost savings option that pays above-average interest, Betterment Everyday is worth considering. With their Cash Reserve, you can earn 0.30% APY starting with a balance as small as $0.01.
To put that in perspective, the current national average savings rate sits around 0.09%, which is still quite low. If you’re only getting the national average, you’re leaving easy money on the table.
For example, with a $10,000 balance:
- At 1.78% APY you could earn about $178 per year.
- At 0.09% APY you would earn roughly $9 per year.
Over ten years, a higher-yield account could add approximately $1,780 in interest compared with only about $90 at the national average—a significant difference. Shopping around for a high-yield savings account is a simple way to boost your savings without added risk.
Another benefit of Betterment Everyday is its fee structure: there are no monthly maintenance fees and no minimum balance requirements. That makes it a practical option for people at every stage—whether you’re building an emergency fund, stashing a tax refund, saving for a down payment, or funding a vacation.
Betterment’s online model reduces overhead compared with in-person banks, allowing them to offer more competitive rates and pass savings on to customers. That’s why many big, traditional banks have low rates: their branch networks and related costs are reflected in lower APYs and higher fees.
Betterment Everyday also provides FDIC coverage through partner banks. Cash in the Betterment Everyday Cash Reserve Account is covered up to $1,000,000 in FDIC insurance, and cash in the Betterment Everyday Checking Account is covered up to $250,000. Additionally, a high-yield savings account offers greater liquidity than many higher-yield alternatives such as certificates of deposit (CDs).
How do I get started with Betterment Everyday?
Getting started is straightforward. To open a Betterment Everyday account, follow the platform’s sign-up process. It’s quick and user-friendly.
Have you checked the interest rate on your current savings and checking accounts recently? If not, it’s worth comparing what you earn now with what a high-yield option like Betterment Everyday could provide.
Related blog posts:
- How To Save Money – My Best Money Saving Tips
- 50+ Creative Ways People Have Cut Costs To Save Money
- Why You Need Life Insurance: Four Reasons
- How To Start Investing With Little Money
- This Savings Account Gives Away Up To $25,000 Each Month
- Bask Bank Review: Earn Airline Miles For Saving Money
*Betterment Everyday Annual Percentage Yield (APY) noted in the original content was accurate as of December 3, 2019. Always check current rates before opening an account.