My Savings Account Doesn't Have the Highest APY. Here's Why That's OK
KEY POINTS
- As of this writing, our favorite savings accounts offer APYs as high as 5.31%.
- There's more to consider when deciding on a bank than the absolute highest-possible yield.
- I get significantly less than the highest yield in the industry, and I'm extremely happy with my banking choice.
Between the rising-rate environment of the past few years and the increasing choices in online banking, high-yield savings accounts offer some of their best interest rates in a generation. In fact, I'm in my 40s, and I currently have a better savings account interest rate than I did at any time since opening my first account in the mid-1990s.
While there are some excellent high-yield savings accounts available right now, it's important to keep in mind that yield isn't everything. In fact, my savings account pays about 0.80 percentage points less than the highest-yielding account on our best savings account list, and I couldn't be happier with it.
Reasons I'm fine with a slightly lower APY from my savings
To be perfectly clear, savings account interest rates can and do change over time. But as of this writing, the highest-APY savings account on our list has a 5.31% yield. Meanwhile, I choose to use the SoFi Checking and Savings (Member FDIC) account instead, and I currently earn up to 3.80% APY on my savings balance.
On SoFi's Secure Website.
Member FDIC.
SoFi Checking and Savings
On SoFi's Secure Website.
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- Competitive APY on both Savings and Checking
- No account fees
- Welcome bonus up to $300 (direct deposit required)
- Early access to direct deposits
- Tools to help you track savings goals
- Unlimited number of external transfers (up to daily transaction limits)
- ATM access
- FDIC insured (up to $3M with opt-in to SoFi Insured Deposit Program)
- Combo account only; no stand-alone savings or checking
- Maximum Savings APY requires direct deposit
- Overdraft protection requires monthly direct deposit minimum
- No branch access; online only
For those who plan to set up direct deposit with their new account, we think SoFi Checking and Savings (Member FDIC) is hard to beat. Not only does this savings account offer a strong APY, but the linked checking account earns an above-average rate, too -- which is a rare perk. Plus, there's the opportunity for a bonus of up to $300 and a long list of extra account features. Frankly, it's the kind of combo that could make it worthwhile to switch banking relationships.
You can earn the maximum APY either by making direct deposits into checking or savings, or by depositing $5,000 or more every 30 days. Learn more.
However, there are a few good reasons why I'm fine with a somewhat lower (but still highly competitive) interest rate. This isn't an exhaustive list of things I like about SoFi®'s savings product, but it represents some of my biggest deciding factors.
All-in-one financial app
As a personal preference, I like to keep the bulk of my financial accounts at the same institution. Not only is the SoFi Checking and Savings account designed to handle all of my everyday money needs, but through SoFi®'s app, I can (and do) have brokerage accounts, including a retirement account. I can apply for a mortgage or loan, get insurance quotes, and much more.
Great ATM access to money
Because it's a checking and savings account combination product, I get better ATM access to my money than most savings accounts offer. There are more than 55,000 ATMs in the Allpoint network that I can use for free.
Great customer service
If I have questions or problems with my account, SoFi® has customer service representatives available by phone seven days a week, including evening hours. The chat support feature is excellent, and you can even get support through X (formerly Twitter).
Easy to deposit money
With some of the highest-yielding online savings accounts, there is one way to deposit money -- by transferring from a linked checking account. With SoFi®'s app, I can certainly transfer money from another account, but I can also move money from my brokerage account or use a mobile check deposit.
One key point to keep in mind is that there are some excellent online banks that rival the features and services of the large branch-based banks, but with much higher yields. On the other hand, some of the accounts with the top savings rates are significantly less convenient in a few big ways.
The bottom line
I realize this discussion has been rather SoFi®-specific, but this same concept applies no matter where you ultimately choose to establish a banking relationship. There are several excellent choices on our top savings account list, and the highest-yielding option might not be the best for you.
The main takeaway is that yield isn't everything. Unless you're simply trying to maximize your savings APY, there's a lot more to consider before deciding on the best high-yield savings account for you.
Our Research Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page. APYs are subject to change at any time without notice.