APY GUY: Maximize Your Savings & Earnings

editorial staff

Union Bank CD Rates – Now up to 3.00% APY!


[📍 Update September 2022: Although Union Bank has been very slow to lift the rates on their CDs (certificates of deposit), they did introduce a limited time 12 month CD yielding 3.00% APY (annual percentage yield) in September. See all of Union Bank’s CD rates below.]

Union Bank is a full service American bank that is wholly owned by one of Japan’s three mega banks – MUFG Bank.

Union Bank has almost 400 branches (398) across the Pacific Northwest – Washington, Oregon and California and commercial offices in major cities such as Dallas, Houston, Chicago, and New York.

Their deposit account offering consists of checking, savings, money market and certificates of deposit, which they refer to as “Time Deposit Accounts.”

Most of Union Bank’s deposit accounts need to be opened at a local branch, however their money market account and Priority Checking account can be opened online.

For the purpose of this review we will focus on Union Bank’s fixed-rate CDs. Union Bank offers several flexible short term CDs and long term CDs with durations ranging from just 7 – 31 days to 60 months.

To see if Union Bank’s CDs are right for you, continue reading our review below.

Union Bank CD Rates + Account Details

image credit: unionbank.com

Union Bank is member FDIC and consumer deposits are federally insured up to the applicable limits. Union Bank has a minimum deposit requirement of $2,500 for their short term CD ranging from 7 to 31 days and a minimum deposit requirement of $350 for all other durations.

Union bank also offers IRA CDs with terms ranging from 90 days to 60 months. The same APYs apply.

CD Rates

CD TermMin. DepositAPY
7 – 31 days$2,5000.05%
32 – 89 days$3500.05%
90 – 179 days$3500.05%
180 – 364 days$3500.10%
12 – 17 months$3503.00%
18 – 23 months$3500.35%
24 – 35 months$3500.60%
36 – 47 months$3500.75%
48 – 59 months$3500.75%
60 months$3500.75%

To give these yields some context, the current national average for a 12 month CD and a 60 month CD sit at just 0.60% APY and 0.74% APY, respectively, according to FDIC data.

We should also note that Union Bank has a tiered rate structure based on deposit amount. Although all tiers pay the same APY currently, it is reasonable to assume that in more favorable savings rate environments Union Bank may offer higher yields on larger balances.

Compound Interest

Union Bank compounds interest daily on their CDs and the interest can be paid out according to the account holder’s discretion. This added flexibility is a nice feature for those living off interest payments. Generally interest payments are paid monthly, quarterly, semi-annually or annually.

Early Withdrawal Fees

If you need access to funds prior to your deposit’s maturity date, Union Bank will impose an early withdrawal fee. They calculate the fee on a 365-day basis as follows:

Union Bank Early Withdrawal Fees

  • For CD terms of 7 – 31 days: The greatest of 1) all interest earned on the amount withdrawn; 2) 7 days’ interest on the amount withdrawn; or 3) the amount of interest that could have been earned on the amount withdrawn for one-half the term.
  • For CD terms of 32 – 91 days: The greater of 31 days’ simple interest at the rate being paid on the amount withdrawn; or 2) the compensating penalty
  • For CD terms of 92 – 1 year: The greater of 1) 91 days’ simple interest at the rate being paid on the amount withdrawn; or 2) the compensating penalty.
  • For CD terms of 1 year plus: The greater of 1) 181 days’ simple interest at the rate being paid on the amount withdrawn; or 2) the compensating penalty.

Union Bank has a fairly standard grace period of 10 days for all CD terms EXCEPT their short term 7 – 31 day option. This CD comes with a grace period of just 3 days in which you can add or withdraw funds to your deposit penalty free. If nothing is done during this grace period Union Bank will renew your CD for the same terms and the going APY at that time. Be sure to set up reminders for yourself if you wish to take action on your CD funds upon maturity. It should be noted that Union Bank will also send out reminders of your upcoming grace period.

Union Bank CD Rates VS Other Big Banks

While Union Bank has offered competitive CD rates in the past, especially on higher deposit amounts, their current offers fall short of the national average.

That said they are still in line with other big banks like Bank of America, Chase and Wells Fargo.

Capital One and Citibank are the only major US banks that have begun increasing their deposit account rates since the FED’s latest rate hike on May 4.

Capital One has been the most aggressive in this regard with 1 year CD rates now at 1.25% APY and 60 month CDs at 2.25% APY.

Other Deposit Accounts offered at Union Bank

If you’re looking for a safe place to store some cash but want easier access to it, then you may want to consider one of Union Bank’s variable-rate savings products. They offer a money market account which can be opened online and a traditional savings account called the “Bank Freely” savings which needs to be opened at a local branch.

Money Market Account

Their money market account comes with a low APY of just 0.05% on all balances and you must maintain a $2,500 daily balance to avoid either a $9 or $10/month service charge. $9 if you opt for online statements and $10 if you choose paper statements.

Bank Freely Savings Account

The savings account is more lenient but comes with a lower APY. You can open their Bank Freely savings with any amount greater than $0 and there are no monthly service charges to worry about. That said, the APY is just 0.01% currently.

Sallie Mae CD Rates – Now up to 3.35% APY


[Update September 2022: Sallie Mae raised their CD (certificate of deposit) rates across the board again this month. Their variable-rate accounts like their money market and high yield savings account also saw rate increases. See all rates below.]

Sallie Mae has become a household name as the largest originator of student loans in the country.

Founded in 1972 as the Student Loan Marketing Association, Sallie Mae operated with government sponsorship by handling both federal and private sector loans.

Some may remember their Federal Stafford and Federal Perkins loans coming from Sallie Mae. However, Sallie Mae started the path of incorporation as a private company during the 90s and completed it in 2004, severing their operation from the government.

Today, their product suite covers a large range of financial services from private education loans and college savings programs to banking services and insurance programs.

In this review, we’ll focus on the savings side of Sallie Mae Bank. Sallie Mae is a member of the Federal Deposit Insurance Corporation and currently offers several types of FDIC-insured savings accounts for a variety of needs: the SmartyPig savings account, certificates of deposit, money market, and high-yield savings accounts are all on the menu with Sallie Mae.

Please note the SmartyPig savings account will not be covered here. Use the link above to read more about that account.

Sallie Mae CD Rates + Account Details

salliemae.com

If you’re looking to lock-in an interest rate, a certificate of deposit may be the way to go.

Sallie Mae was named as one of the best banks for certificates for deposit in 2020 by GOBankingRates.

Although their CD rates have been more competitive in the past, they still feature returns that beat the national average(s) for their respective terms by decent margins.

TermMinimum DepositAPY
6 months$2,5001.75%
9 months$2,5002.00%
11 months$2,5002.95%
12 months$2,5003.05%
13 months$2,5003.05%
15 months$2,5003.10%
18 months$2,5003.15%
24 months$2,5003.20%
30 months$2,5003.25%
36 months$2,5003.00%
60 months$2,5003.35%

To put Sallie Mae’s CD rates (above) in perspective, the current national average for a 12 month CD sits at 0.60% APY and the current average for a 5 year CD sits at 0.74% APY according to recent FDIC data.

As you can see from the table, there is a wide range of terms to choose from but the current yields don’t vary much by term.

Grace Period

Upon the maturity of your Sallie Mae CD, you’ll have a 10 calendar day grace period during which you can withdraw funds from your CD account without penalty. If no action is taken within the 10 day grace period, the funds will automatically renew into the same CD with its current rate.

Locking-In CD Rates

The interest rate and APY will be determined on the date you fund the CD account, not the date you open the account. However, you will receive the higher interest rate of the date your account opened or was funded if the first deposit occurs within ten days from the opening date.

Once your interest rate is set and fixed, you will be paid this rate until maturity. Interest is compounded daily and credited to your account monthly.

The interest begins to accrue on the same business day if the deposit is received before 11:00 PM ET. If the deposit occurs after 11:00 PM ET on a business day or non-business day, the deposit is considered received on the next business day.

Early Withdrawal Penalties

If your CD account has a maturity of 12 months or less, the penalty is equal to 90 days of simple interest on the amount withdrawn. If the CD account has a maturity greater than 12 months, the penalty will equal 180 days of simple interest on the amount withdrawn.

In circumstances such as death or incompetence of the account holder, the law may permit an early withdrawal penalty waiver.

Money Market Rate + Account Details

Sallie Mae’s money market account is similar to their SmartyPig account but with a few more features. For example, you can write checks from the money market account plus earn a slightly higher rate.

Unlike Sallie Mae’s CDs there are no minimum deposit requirements to open a money market account. The APY you receive applies to all balances as well, which is different from most money market accounts that tie yields to balances.

Money Market Rates

Monthly BalanceMinimum DepositAPY
$0$02.25%

To put the APY (above) in perspective, the current national average for a money market account sits at roughly 0.18% APY. On top of the respectable yield, the lack of both minimum deposit and monthly balance requirements make this an attractive account. Keep in mind money market rates are variable and can change at any time without notice.

Transaction Limitations

You may deposit or withdraw money via:

  • Check,
  • EFT, or
  • Wire Transfer.

There is a maximum of 6 transfers or withdrawals (a combination of either) during any calendar month or statement cycle per Federal Regulation D. Please note that if using your Sallie Mae money market account to repay loans at Sallie Mae, there is no limit in the number of transfers you may make.

Sallie Mae Fee Schedule

  • Check Order Charge (for orders placed after account opening; orders placed at the time of account opening are free): $5
  • Stop Payment Charge: $15
  • Returned Check Fee: $5
  • Insufficient Funds (NSF) Fee: $19
  • Wire Fee: $20 (United States only). Please note that the receiving bank may charge a wire fee on their end. Sallie Mae will not allow international wire transfers.

High Yield Savings Account Rate + Details

The high yield savings account is similar to the SmartyPig and money market account in that it has no minimum balance/deposit requirements or monthly maintenance fees.

The rate is slightly lower than the money market account, but still handily beats the current national average for FDIC-insured online savings accounts.

High Yield Savings Rate

Monthly BalanceMinimum DepositAPY
$0$02.15%

Rates are compounded daily and credited to your account monthly. As with the money market account the APY is variable and subject to change at any time without notice.

Transaction Limitations

You may withdrawal or deposit money via:

  • Check,
  • EFT, or
  • Wire Transfer

The same 6 transaction limitation applies to the high yield savings account. This applies to both withdrawals and deposits (a combination of either) per federal regulation.

Fees

• Returned Check Fee: $5
• Wire Fee: $20 (United States only). Please note that the receiving bank may charge a wire fee on their end. Sallie Mae will not allow international wire transfers.

Banking Experience and Customer Sentiment

Sallie Mae has just one physical location in Utah, which is their headquarters. So if you value in-person banking this institution likely isn’t for you.

That said, if you value respectable rates and low maintenance accounts that can be managed 100 percent digitally then Sallie Mae deserves your consideration. Their rates are regularly among the top online offers available and their accounts have received a number of awards from third party sites.

According to user reviews on both Android and iOS apps, Sallie Mae’s app experience ranges from mediocre to comfortably above average (especially as far as banking apps go).

They receive just 3.6 starts on Android, but an impressive 4.6 stars on the App Store.

Sallie Mae’s SmartyPig account has a separate app and also receives high marks.

Capital One CD Rates – Now up to 3.50% APY!


[📌 Update September, 2022: Following the FED’s third historic rate hike on the summer on September 21st, Capital One bumped up the yields on nearly all their CDs (certificates of deposit) by between 0.30% and 0.55% APY. Top APY (annual percentage yield) is now 3.50%. See all of Capital One’s CD rates below.]

Capital One offers a number of online certificates of deposit as part of their 360 product suite. The terms come with standard lengths ranging from 6 months to 60 months and above average annual percentage yields.

Their CDs also come with more flexibility than most certificates offered by large national banks. Right now, all Capital One 360 CDs have no minimum deposit and can be opened with any dollar amount that is right for you.

That said, these products must be opened and managed online. But don’t worry, they make it exceptionally easy with their web (and mobile web) interface as well their highly rated apps for IOS and Android.

Below is our full review of their CD offerings. If you have experience opening a CD with Capital One, please feel free to share your experience in the comment section below.

Capital One 360 CD Rates + Account Details

Capital One 360 CDs are federally insured by the FDIC up to $250,000 per depositor or $500,000 on joint accounts. As mentioned there are no minimum deposit requirements, but you will need to deposit something in the account to open it.

360 CD Rates

TermAPY
6 months2.00%
9 months2.00%
12 months3.25%
18 months3.25%
24 months3.30%
30 months3.30%
36 months3.40%
48 months3.40%
60 months3.50%

To give these yields some context, the average yield on a 12 month CD and a 60 month CD sit at just 0.60% and 0.74% APY, respectively, according to recent FDIC data.

Compounding and Crediting Interest

Interest is compounded monthly on all Capital One 360 CDs and credited to your account either monthly, yearly or upon maturity. You can have these funds deposited into a separate account or returned to the CD for further compounding.

Grace Period

Capital One 360 CDs come with a standard 10 day grace period. You’ll also want to note that Capital One CDs automatically renew, so if you plan on adding or withdrawing funds to your CD this 10-day period is the only time you can do so penalty free.

Early Withdrawal Penalties

If you withdraw funds from a CD you opened with a term of 12 months or less, you’ll have to pay three months’ interest as a penalty.

If you withdraw funds from a CD you opened with a term of greater than 12 months, you’ll have to pay six months’ interest.

Please note that it is possible to incur a penalty that dips into your principal if the withdrawal happens early enough.

How to Open a Capital One 360 CD?

If you decide you want to open a Capital One 360 CD, first navigate to their online CDs page here.

On this page you can take another look at any of the terms, conditions, or features one last time before you open the account.

Once you’re ready to open a deposit, click on the green “Open Account” button at the top of the page. This button remains static at the top of this page as you scroll.

It will look something like this (below):

Look for the green “Open Account” button that sticks to the top of your browser as you scroll the page.

Once you click on that green button, the process takes about 5 minutes to complete. They’ll first ask you whether or not you already have a Capital One login. If you’ve opened a checking, savings or even credit card with them (either online or in a branch) then you likely have a login already. If you do, this should expedite the process.

If you do not, and this is your first account with Capital One, then you’ll need the following:

  • Full legal name
  • Current address
  • telephone number
  • employment status (and job title)
  • social security number
  • date of birth

Capital One will then use your personal data to confirm your identity. If you are looking to open a joint account, you must first go through this process individually then you can add another account holder online.

Once your identity is confirmed and the account is opened, you will be provided with your account number and the routing number. You then have the option to add funds immediately to your CD. Your rates are locked in the moment you open the deposit until maturity.

Capital One 360 CD Reviews and Customer Sentiment

The Capital One 360 product suite receives high marks across the board from third party review sites. Their savings products in particular – both the variable rate online savings account and the fixed rate online CDs – receive above average marks for consistently higher than average yields and flexible terms. Most notably the lack of minimum deposit or balance requirements to earn the advertised interest.

You can manage your money easily either online or through one of their native apps. Their IOS and Android apps both receive high marks (especially as far as banking apps go). Their IOS app currently has 4.8 stars out of 5, while their Android app has 4.6 stars out of 5.

How Capital One’s CD Rates Compare

Of all the major US banks, Capital One offers the most competitive yields on their certificates of deposit via their 360 CD accounts. And it isn’t even close. Bank of America, Citibank, U.S.Bank, Wells Fargo, Chase, etc. all offer substantially lower yields on their CDs per the time of this writing.

There are, however, a handful of online banks and credit unions with nationwide acceptance that have slightly higher yields but the top rate leaders shuffle around often especially in our rising interest rate environment.

Capital One also offers extremely flexible terms with no minimum deposit requirements and several options for paying out interest which makes their accounts available for nearly everyone.

CIBC Agility Savings Account – Now 2.32% APY!


image credit: us.cibc.com

CIBC (Canadian Imperial Bank of Commerce) is one of the “big five” banks of Canada and is headquartered in Toronto, Ontario.

The institution was formed by the largest chartered bank merger in Canada’s history in 1961 when the Canadian Bank of Commerce (founded in 1867) merged with the Imperial Bank of Canada (founded in 1873).

Today, CIBC holds roughly $770 billion in assets and brings in $18.7 billion in revenue (as of 2020) with operations spanning the globe.

For U.S. based customers, CIBC has an offshoot called CIBC U.S. which is headquartered in Chicago, Illinois, but backed by the 150 year-old Canadian bank.

CIBC U.S. has a noteworthy variable rate savings account called the “Agility Savings” that features a spectacular APY of 2.32%.

This account can be opened online by anyone in the U.S. that has a valid ID and is 18 years of age. To see if this account is right for you, continue reading our review below.

CIBC Agility Savings Account APY + Details

To open the CIBC Agility Savings account you must make an initial minimum deposit of at least $1,000, but once the account is opened interest is earned on all balances above $0.01.

CIBC U.S. is member FDIC and all consumer deposits are federally insured up to the applicable limits.

Savings Rate

Min. DepositMin. BalanceAPY
$1,000$0.012.32%

To put this yield in perspective, the current average for a savings account sits at just 0.17% APY and the current average on a money market account sits at just 0.18% APY according to the most recent FDIC data.

Interest is compounded and credited to your account monthly.

Per federal regulation D, this account is limited to 6 transactions per monthly statement cycle. If you exceed this amount CIBC will charge $10 for each subsequent transaction. No external transfers can be made either within the first 90 days of opening the account.

CIBC U.S. Fee Schedule

Depending on the actions you take with your CIBC Agility Savings account you may encounter some fees from time to time.

Below is a complete outline of the fees CIBC imposes for various account activities (or inactivities).

CIBC Fee Schedule

ActivityFee
Statement Copies$5 each
Stop Payment$5.00
Hold Mail Fee$25 per request
Stop Payment$30
Automatic transfer from one account to another to cover overdraft$35.00 per item, max $175.00 day
Overdraft fee (item paid)$35.00 per item, max $175.00 day
Returned deposited item fee (chargeback)$10.00
Account research$25.00 per half hour, $25.00 minimum
Account closed within 90 days of opening$25
Dormant account fee$5 per month with a max of $60 annually

You can read more about CIBC U.S. deposit account disclosures and terms of service here.

How to Open the CIBC Agility Savings Account

The Agility Savings account can be opened online in minutes!

As mentioned this account is available to anyone in the U.S. that is 18 years old or older with a valid ID, internet connection and $1,000 for the initial deposit.

Here’s how to open the account in minutes.

  1. To open the account, navigate to the CIBC U.S. Agility Savings landing page here and click “Apply Now.”
  2. From here it is a 4-step process that starts with your personal information. Fill in the required personal information and then click “Continue.“
  3. Read and accept the account disclosures and click “Continue.“
  4. Fund your account. This will require the routing number of your current bank and the bank account number you’ll be transferring the funds from.

What information do I need to have handy?

  1. Driver’s license or government issued ID.
  2. Home address, phone number and email.
  3. Social security card or number.
  4. Existing bank account routing number.
  5. Existing bank account number with at least $1,000 in the account.
  6. Employment information.

Managing the CIBC Agility Saving Account

As mentioned the account can be managed completely online through the web or their native IOS or Android app. CIBC has multiple apps available for download. You will want to download the CIBC US mobile banking application to manage your Agility Savings account.

The mobile banking app by CIBC has mixed reviews, averaging 3 stars out of 5 on IOS (up from 2/5 stars in March 2022) with only 3 ratings at the time of this writing and 2.7 stars out of 5 on Google Play (down from 4/5 in March 2022) with over 175 reviews.

App Features:

  • View account balances and recent transactions
  • Transfer funds using their person to person payment system. Send funds with just a phone number or email.
  • Transfer funds between CIBC US accounts.
  • Mobile check deposit
  • Check status of deposits
  • Pay bills electronically
  • Schedule future bill payments
  • Contact representative for assistance
  • Locate branches and ATMs

CIBC Agility Online CD Rates

CIBC currently offers 5 online “Agility” CDs with terms ranging from 9 months to 30 months. They currently come with impressive yields when compared to the national average, but the yields are tiered based on deposit amount. Depositing $25,000 or more will get you a higher rate. See all rates and deposit requirements below.

CD TermAPY
9 months1.30%
9 months ($25k +)1.35%
12 months2.96%
12 months ($25k +)3.01%
18 months2.91%
18 months ($25k +)2.96%
24 months1.60%
24 months ($25k +)1.65%
30 months1.70%
30 months ($25k +)1.75%

To put these yields in perspective, the current national average for a 12 month CD and a 36 month CD sit at just 0.60% and 0.66% APY, respectively.

All CIBC online Agility CDs come with a minimum deposit requirement of $1,000.

Bank of America CD Rates – Up to 1.50% APY


[📌 Update September 2022: Bank of America finally bumped up the yield on one of their CDs (certificates of deposit). Their 13 month Featured CD now provides an APY (annual percentage yield) of 1.50%. All other CD accounts remain the same. See details below.]

image credit: Unsplash, Christin Hume

Bank of America hardly needs any introduction. They’re the second largest bank in the United States by assets, with over $2.61 trillion in total and they are the third largest bank in the country by branch locations with roughly 4,559 across all 50 states.

That said, their savings rates – both fixed and variable – leave much to be desired and lag the current national average(s) for their respective terms by considerable margins.

This isn’t unique to Bank of America though, as most of the big banks are still offering low yields on deposit accounts.

That said, towards the end of the summer both Citibank and Chase Bank have started to entice consumers with slightly competitive yields on a small handful of CD accounts. These usually come in the form of Promotional CDs or CD Specials.

For those considering opening a fixed-rate, certificate of deposit with Bank of America continue reading our full review below.

Bank of America CD Rates + Account Details

Bank of America CDs are federally insured by the FDIC up to the applicable limits. These are $250,000 per depositor or $500,000 on joint accounts.

Bank of America has two sets of certificates of deposit available to consumers currently: “Featured CDs” and “Standard CDs.”

The Featured CDs come with a higher minimum deposit requirement of $10,000 compared to just $1,000 for the Standard CDs. Bank of America’s Featured CDs also offer five oddball terms to choose from. These are:

  • 7 months
  • 10 months
  • 13 months
  • 25 months
  • 37 months

Featured CD Rates

TermAPY
7 months0.05%
10 months0.05%
13 months1.50%
25 months0.05%
37 months0.05%
APY = annual percentage yield

To put these yields in perspective the current national average for a 12 month CD and a 60 month CD sits at 0.60% APY and 0.74% APY, respectively, according to FDIC data.

That said, following FED’s third consecutive rate hike of 0.75% this summer, somea FDIC-insured online banks and nationally available credit unions are starting to pay around 3.0% APY on 12 month CDs and 3.50% + on 60 month CDs.

Their Standard CDs have much more flexible terms ranging from 1 month to 10 years (120 months). Consumers may choose the exact number of months within that range. Current rates, however, are flat across the board for all terms.

Standard CD Rates

TermAPY
1 month (28 days)0.03%
3 months0.03%
6 months0.03%
12 months0.03%
2 years0.03%
3 years0.03%
4 years0.03%
5 years0.03%
6 years0.03%
7 years0.03%
8 years0.03%
9 years0.03%
10 years0.03%

All of Bank of America’s standard, fixed-rate CDs have yet to rise with all terms paying the same APY.

There are two variables that normally affect the overall APY applied to your Bank of America CD. These are:

  1. Your Location
  2. Your Deposit Amount

While these variables do not change your rate at the moment, Bank of America still requires you to select these before disclosing the yields they offer on their website.

Your location is determined by the zip code you reside in and the deposit amount is broken up into four ranges for the Featured CDs and three ranges for Standard CDs. For Featured CDs, the deposit ranges are:

  • Less than $10,000
  • $10,000 to $100,000
  • $100,000 – $1m
  • $1m +

For all of Bank of America’s Standard CDs the deposit ranges are:

  • Less than $10,000
  • $10,000 to $100,000
  • $100,000 +

Compounding and Crediting Interest

Interest is compounded and credited monthly on both featured and standard CDs.

Early Withdrawal Penalties

Bank of America’s early withdrawal penalties vary by length of the term of the deposit. Below is a breakdown of what you can expect to pay if you need to make an early withdrawal to your CD. You should note that for CDs with terms of 60 months (5 years) or greater, fees can potentially add up to more than the overall interest earned if withdrawals happen often enough.

CD TermPenalty
90 days or less7 days’ interest
90 days – 12 months90 days’ interest
12 months – 60 months180 day’s interest
60 months +365 days’ interest

The interest penalties above are applied to the amount withdrawn.

Grace Period

The grace period is the brief window of time after your CD matures and before it gets renewed in which you have the ability to add or withdraw funds penalty free.

Bank of America’s grace period is slightly lower than the standard 10 days at just 7 days.

Bank of America’s CDs also automatically renew, so if nothing is done within this 7 day period your CD will automatically renew with the same terms and whatever the current APY happens to be at that time.

Bank of America will send you reminders leading up to the grace period of your deposit but be sure to set up your own notifications as well.

Final Thoughts

While banking with large institutions such as Bank of America has its advantages such as easy in-person branch access, vast network of ATMs, and a wide range of financial products, their current CD rates are simply not competitive at this time.

While the FED continues their historic rate hikes, many online banks and credit unions have begun to lift their CD and savings rates in kind.

Larger banks, on the other hand, have been slower to provide generous yields to consumers with Bank of America being the prime example.

PayPal Savings Account – Now 2.15% APY!


[📌 Update September 2022 – PayPal raised the APY (annual percentage yield) on their newly launched online savings account again this month. The account now provides a yield of 2.15% APY (up from 1.80% APY earlier this month) See more details below.]

The financial technology company PayPal hardly needs any introduction with over 400 million users worldwide and over $25 billion in annual revenue; they’ve been a household name since their founding in 1998.

What you may not know is that they just launched their highly anticipated high yield online savings account in May of this year and it currently earns an impressive APY of 2.15%.

The account also has no minimum deposit requirements, balance requirements or monthly maintenance fees of any kind.

To learn more about PayPal’s online savings account continue reading our review below.

PayPal Savings Account Rate + Features

image credit: paypal.com

The PayPal Savings account is 100 percent digital. You can download their app here and start saving immediately.

The account has no minimum deposit requirements or monthly balance requirements and all balances are eligible for the advertised rate.

The rate is variable and can change at any time without notice.

PayPal itself is not a bank, however your deposits are FDIC-insured through their partner Synchrony Bank.

APY

Minimum DepositAPY
$02.15%

To put this yield into perspective, the current national average for a savings account and a money market account sit at just 0.17% and 0.18% APY, respectively, according to recent FDIC data.

The best high yield online savings account rates are a hair above 2.20% APY at the moment, but if the FED makes another major rate hike this September, as most economists expect, then rates could heat up even further.

Money Management

image credit: paypal.com

Managing your money is straightforward with the PayPal app. You can transfer funds from your bank account or current PayPal balance into the savings account.

From the app you’ll also have access to the following:

  • Get your paychecks up to 2 days early when you set up direct deposit.
  • Mobile check cashing. Cash a physical check to your account from your phone.
  • Set up bill pay. Pay your TV, utilities, internet, phone bills, etc from the app.
  • Set up auto-save features and savings goals. Move money from one goal to another if priorities change.
  • Get a PayPal Cash Card. No fees or credit checks required. Can be used anywhere Mastercard is accepted.
  • Add cash with the app or Cash Card at 100k+ stores across the US, including Walmart, CVS, and 7-Eleven
  • Buy, sell and hold cryptocurrencies.

PayPal Savings Account FAQs

If you still have questions about PayPal and their newly launched online savings account, don’t worry we’re here to help. Here are some of the most commonly asked questions by consumers and our responses below.

Is PayPal a Bank?

No.

Peter Thiel, the founder of PayPal, has stated that PayPal is not a bank because it does not engage in fractional reserve banking. Essentially meaning the company does not engage in the act of borrowing and lending their customers’ funds.

Federal Regulators also reiterated this notion back in 2002, stating that PayPal is not a bank and shouldn’t be regulated as such.

That being said, PayPal has dipped their toe into banking products like this online savings account. In the past, they have also tested out money market accounts, lines of credit and even a debit card, which is still offered as the PayPal cash card.

Are PayPal Accounts Insured by the FDIC?

Yes, by proxy.

While PayPal itself is not a bank and is not FDIC-insured, the accounts they offer are through their partner Synchrony Bank (FDIC# 27314).

Final Thoughts

As far as FDIC-insured online savings accounts go, this newly launched PayPal account is quite competitive. The yield is roughly 12x the national average and is among the highest yielding savings accounts anywhere in the US.

Plus the fact that the account has no maintenance fees, minimum deposit requirements or monthly balance requirements to earn the high rate makes it available to a large swathe of people.