July 2023’s Top No-Fee High-Yield Savings Rates
July 2023's Top No-Fee High-Yield Savings Rates
Finding the Best High-Yield Savings Account Without Pesky Fees
If you’re in search of a great high-yield savings account that doesn’t come with any pesky fees, you’re in luck. Many savings accounts offer the opportunity to avoid monthly fees while still earning a high rate of return, sometimes even exceeding 5%. With a no-fee high-yield savings account, you can enjoy the advantage of a high Annual Percentage Yield (APY) without eroding your earnings through additional monthly fees.
Moreover, savings rates have been on the rise lately thanks to the Federal Reserve’s series of interest rate hikes aimed at combating high inflation. This makes high-yield savings accounts even more appealing. In their most recent meeting, the Federal Reserve decided to raise interest rates, meaning that for most savings accounts, you can expect to maintain or even see an increase in your current rates. Additionally, experts anticipate that the Fed might raise rates again next month, potentially pushing savings rates even higher.
The Best No-Fee High-Yield Savings Rates
We have analyzed the current APY rates for no-fee high-yield savings accounts and curated a list of some of the best earning accounts available. With our new tool in partnership with Bankrate, you can search for the best overall high-yield savings accounts.
Rising Savings Rates
As mentioned, savings rates have been climbing due to the Federal Reserve’s interest rate hikes. This upward trend has led to several savings accounts offering higher rates. It’s a good time to take advantage of accounts with high APYs since rates are expected to level off as inflation cools later this year.
To understand how much you can earn over a fixed period of time, give our savings calculator a try. However, it’s important to note that since interest rates on no-fee high-yield savings accounts are variable, the APY can decrease from the initial rate you received when you opened the account. If you’re eager to lock in rates, you may want to consider a no-penalty Certificate of Deposit (CD) instead.
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Interest rates on CDs are fixed, so even if rates drop, your earnings won’t be affected. Additionally, if you find that you need access to your funds before the maturity date of the CD, you can withdraw the money without penalty if it’s saved in a no-penalty CD.
Opening a No-Fee High-Yield Savings Account
Before opening a no-fee high-yield account, there are a few important factors to consider:
Look Out for Hidden Fees
While some banks transparently list the associated fees and charges that come with an account, others might not. To ensure that you’re truly opening a fee-free account, it may be necessary to call your bank’s customer service line or conduct some online research before proceeding.
Ensure Your Money is Safe
Another vital consideration when opening any savings account is to verify that your money is FDIC insured. This provides the guarantee that your funds will be safe even if the bank were to fail. The Federal Deposit Insurance Corporation (FDIC) protects up to $250,000 in individual deposit accounts and up to $250,000 for each person’s share of joint accounts.
Compare High-Yield Rates
To secure the best rates, it’s advisable to shop around for savings accounts. Online banks typically offer more generous APYs on savings accounts, making them a compelling alternative to traditional brick-and-mortar banks. By switching to an online account, you could significantly boost your savings potential.
Avoid Teaser Rates
Banks often employ teaser rates as promotional tactics to attract new customers. However, these rates are usually short-lived and will drop significantly after the promotional period ends. It’s wiser to focus on finding accounts with consistent and competitive rates over time.
For more information on high-yield savings accounts and related topics, check out the following resources:
