Choosing the Right High-Yield Savings Account: A Comparative Analysis
In today’s low-interest-rate environment, selecting the right high-yield savings account (HYSA) is crucial for maximizing your savings. Two popular online banks, American Express National Bank and Marcus by Goldman Sachs, offer competitive HYSAs. But which one is the best fit for your needs?
Marcus by Goldman Sachs: A Leader in High-Yield Savings
The Online Savings Account from Marcus by Goldman Sachs boasts an impressive 3.90% APY, significantly higher than the national average. With no monthly maintenance fees, no minimum opening deposit, and no minimum balance requirements, this account is an attractive option. Additionally, interest is compounded daily and credited to your account monthly. Although it doesn’t offer an ATM card, same-day transfers of $100,000 or less are permitted, and there’s no limit on withdrawals or transfers.
American Express National Bank: A Close Second
The American Express High-Yield Savings Account offers a competitive 3.80% APY, with no monthly fees, no minimum opening deposit, and no minimum balance requirements. Interest compounds daily and is credited to your account monthly. Like Marcus, this account doesn’t come with an ATM card, debit card, or checks. However, transfers to external bank accounts can take up to three business days to complete.
A Tale of Two Accounts
While Marcus by Goldman Sachs offers a slightly higher interest rate, the difference may not significantly impact your savings returns. For instance, a $1,000 deposit earning 3.90% APY would yield $39.77 in interest over one year, whereas a 3.80% APY would earn $38.73. However, the more money you have in your savings account, the more impactful the interest rate will be on future compound returns.
Beyond Interest Rates: Mobile App and User Experience
When choosing a high-yield savings account, consider the mobile app and user experience. The Marcus by Goldman Sachs mobile app has an average rating of 4.9 and 4.2 stars on the App Store and Google Play, respectively. American Express’s mobile app has slightly better ratings, with 4.9 and 4.7 stars, respectively.
The Verdict: Marcus by Goldman Sachs Takes the Lead
Despite slightly lower mobile app ratings, Marcus by Goldman Sachs is the better HYSA option, thanks to its higher interest rate, same-day transfers, and unlimited withdrawals and transfers.
Safety and Security
Both American Express National Bank and Marcus by Goldman Sachs are FDIC-insured institutions, ensuring each account is insured up to $250,000 per depositor, per ownership category. Your money is safe as long as you choose a high-yield savings account that is federally insured and your balance is within the limits set by the FDIC.
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