While you typically don’t use your savings account to make money, there are some options available to make your money work for you a little harder. Today, I’m going to share how to get more interest on your savings accounts.
Instead of holding your cash in a savings account with a large bank that doesn’t give you any interest, there are multiple high-yield savings accounts available that will at least give you some return on your money. These returns are tied pretty closely to interest rates, so in this low interest rate environment, it’s hard to find companies that give you a good return on your deposit.
There are a few good options such as Ally Bank, Synchrony Bank and other online banks that currently give you about 0.5% return on your cash, better than nothing right?
However, recently I discovered a relatively new company that gives you more bang for your savings buck – that company is HMBradley.
HMBradley offers a savings account that promises to return anywhere between 1-3% depending on how much of your money you can can save.
Every quarter, they evaluate the rate of deposits vs. withdrawals and determine your “tier” of saving, which informs your interest rate. Just setting up direct deposit gets you into the 1% rate immediately, and the interest rates for your account are determined quarterly. In my account, I am currently earning 3% on my money.
There are some limitations with the account – you can only make withdrawals of $2,500 per day, and you also need to set up a direct deposit into the savings account to be eligible for the interest rates. However, most employers let you split your paycheck into more than one account, so I just deposit 1% of my paycheck into my HMBradley account and the other 99% into my regular checking account and I became eligible to earn. You’ll still be eligible for the savings tiers no matter how big your direct deposit.
Previously, I parked my $10,000 emergency fund in another high yield savings account with Synchrony Bank. While Synchrony has been good to me, my account was earning 0.5% annual interest as of February 2021. With HMBradley, I will be making six times that in interest at 3.0% annual interest. That amounts to an extra $21 per month simply for parking my emergency fund with HMBradley.
All of the interactions I’ve had with their customer support staff have been great. Also, they are FDIC insured, which means the government will insure your deposits up to $250,000 if the company goes bust. I am not sponsored by HMBradley, but if you want to sign up please consider using my referral link here: hmb.to/signup?code=CalhhF24
Enjoy a higher yield, until next time!