Tuesday, May 31, 2016

How to Earn 1% or More on an FDIC Bank Account

Are you concerned about the lofty levels of the stock market and have much of your investment assets in cash? But maybe you are sick of earning one hundredth of one percent (0.01%) on you savings. There are actually ways to earn a hundred times that amount, even more, and still get FDIC protection.

The number one question that potential customers ask is how these banks can offer an interest rate of 1% or more. Think about it. If it is an online bank, there are plenty of expenses that are eliminated which are required of brick-and-morter banks. Online banks don't have to pay a lease for retail space, no salaries or benefits for tellers, new account reps, and branch managers, no electricity, no alarm services, and so on.

All those savings are passed on to the depositors. If the opening of accounts and deposits and withdrawals are all handled online, there is very little expense involved.

So what banks make these offers, you might ask. Here is a list of several, all of which are offering FDIC insured accounts up to the maximum allowed by law. A couple of them do have minimums to open and/or maintain an account without incurring a fee.

Bank Type Acct. FDIC Interest Rate      Min. to
      Min. for  
SFGI Direct Savings yes 1.06% $500 $1
Synchrony Bank Savings yes 1.05% $30 $1
Ally Bank Savings yes 1.00% $0 $1
Barclays Savings yes 1.00% $0 $1
iGObanking.com Savings yes 1.00% $0 $1
MySavingsDirect  Savings yes 1.00% $0 $1

Rates, fees, and minimums can change at any time, so read the details on the banks' website before depositing.

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