The 5 MOST PROFITABLE Savings Accounts of 2019

what's the guys it's Graham here so I made this video about six months ago where I went over the most profitable savings accounts that you can get and since then in the last few months I've received non-stop messages that the information is now outdated interest rates have gone up thankfully some banks have also gotten a lot better and should be on the list and I thought to myself you know what they're right I do desperately need to re-up date all of this information and make a brand new video and this is really really good news too because the Fed raised interest rates back in January which meant that savings accounts can now pay out a little bit more so really what we've been seeing over the last few months is all of these savings accounts just clamoring over one another to try to get your business which basically just means that you now get paid out a little bit more money and this is somewhat good news for us too because even though the Fed has now been lowering interest rates the interest rates paid on savings accounts has not been followed and they have not been lowered and I have a feeling the reason for this is because they know if they lower the interest rate you're just gonna go and move your money to another bank and they don't want to risk that so let's go for the five best high interest rate savings accounts that are out there today to make you a little bit of extra money for doing absolutely nothing because everyone knows I like making money for doing nothing and for this list since there's so many just random banks out there I've set up a very strict criteria that we must follow number one it must be a well known bank no banks that we've never heard of that are just available to people in Wyoming no sketchy banks that just opened up last night and happen to rhyme with Schmidt connect it really must be a well established bank that we have confidence in now secondly they must be verified unlike my Instagram account which is which is not verified even though I've tried because people are now setting up fake accounts just be warned for this if someone sends you a weird message or adds you as a friend and then wants to be paid out in Bitcoin or cryptocurrency that's not me I don't do that sort of stuff so if anyone ever asks you to pay in Bitcoin that I ain't means so when Instagram ever verifies my account hopefully this the scam artists won't won't be able to scam but anyway we need actual concrete proof that they offer the interest rate they say they do none of these teaser rates that just give you an interest rate like this for a few months and then they downgrade it to something lower and for this I looked at the reviews of the companies to determine their history of interest rates and T xoring the rates in just to make sure that what they say is actually true now third it must be available to anybody in the United States like in my last video I mentioned PNC Bank as offering a two point three five percent interest rate which I didn't realize and a lot of people were very quick to correct me that that rate is only available for states that do not have a physical PNC branch and as we all know on the internet people are very quick to correct you anytime you are wrong or leave out information by mistake or don't mention something so I'm making sure in this video everything I mentioned is available to anybody in the United States and fourth most importantly as we all learned with Robin Hood it must be FDIC insured and this is a very big one because the last thing we want is for a small company or a small bank to go insolvent and then you find out they're not FDIC insured and then you lose all your money and then you have a bad time I don't want anybody to have a bad time so safe to say all of these ones say that they're all FDIC insured and last one number five is just to smash the like button if you haven't done that already a like goes a very long way so if you wouldn't mind just tapping that button and let's get into the video now first we have my longtime personal favorite that many of you guys have heard on the channel and that would be a lie Bank not sponsored I need to make it very clear that my videos when I talk about something like this they're not sponsored and these companies are not reaching out to me and be like yo man mentioned L a big number what like they don't do that okay so none of this is sponsored let's make that very clear now when it comes to me I've used a lie bank for years and it's pretty much it's been my go-to online bank now I use this myself to run all of my rental income through this because they allow me to have unlimited checking accounts and checks and debit cards entirely for free there's no minimums there's no fees and the best part about all of this is that they offer a two point two percent interest rate on their savings account and their FDIC insured now even though they don't have any sort of physical bank that you can actually walk into doing everything online and from the app has never been an issue and anytime I ever need like actual physical cash like for my ridiculous YouTube thumbnails I just go to Bank of America that I have an account with I pull out some cash since they have branches everywhere and that's it however I would have to say my one critique with Ally is just this is that lately they have been lacking in the interest rate category they are no longer as competitive as they once were like two years ago about three and a half four years ago is when I started banking with Ally and back then their interest rate was like pretty good at the time and lately other banks have just gotten better I've stuck with Ally just because I've been with them for so long I'm used to it I trust them I like them and it's not worth switching for just like a little bit more money until recently until recently now I found another Bank that I'm actually moving some money over to which I'll tell you it's in this video if you just keep watching now the second option out there is a really popular online bank that a lot of people have commented on and been really happy with so far that pays just a little bit more than a lie and that is Marcus by Goldman Sachs and they offer a 2.25 percent interest rate and with that they have no monthly fees no minimums no hidden fees no crazy stupid fees and of course they're FDIC insured up to 250,000 dollars however even though they pay slightly more on their savings account it doesn't appear as though you can mobile deposit checks directly into that account which is definitely a big inconvenience like I don't really like doing ACH transfers I don't like doing wire transfers I don't like having to ever mail a check into somewhere and like wait for it so like it's 2009 right it's 2009 everyone should have a mobile app for the bank account and you should be able to mobile deposit checks in 2019 this ain't this ain't 1999 no more so that that's the one thing that I don't like with Marcus by Goldman Sachs if they just stepped it up a little bit just a little bit and kind of got with the times then I could you know give my full recommendation on it but overall it seems just kind of like a hassle considering that there are other better banks out there now third if we're gonna take it up a notch and turn up the heat so to say we have another really good one and that would be CIT bank which is now offering a 2.4 percent interest rate not to be confused with Citibank this is CIT Bank now the thing is in order to get that 2.4 percent interest rate you have to do one of two things the first one is to keep an average balance of $25,000 in the account or deposit at least $100 per month but assuming you could do one of those or even just deposit $100 a month into the account there's no maintenance fees there's no hidden fees they're FDIC insured and it's available to anybody in the United States and the best part about all of this unlike Markus by Goldman Sachs they have a mobile app that you can deposit checks to but overall I would actually be pretty happy with this Bank and the only reason I have not switched over so far is because I've been with Ally for such a long time and it's not worth it to go and get a brand-new Bank for like 0.2% extra interest before taxes annually and it's just not right now worth the hassle to me but like I said we're slowly getting better and some of these offers are getting pretty unbelievable now fourth speaking of kind of unbelievable this is one that is believable it's real but I didn't believe it at first I thought it was a joke until I looked into it and so many people commented on this so they looked into it I'm like wait a second this is actually pretty good and that would be redneck Bank yeah no I'm not kidding redneck Bank that's the actual name don't ask me how they came up with that name it makes no sense to me but it is what it is they even have a very realistic fly on their website that you could chase around with your mouse and you can have a lot of fun with that which makes this website just a hidden gem now redneck Bank is offering a two and a half percent interest rate on their savings account and even better they're offering a three percent interest rate on their checking account which is absolutely incredible now here's how this works on their checking account you're gonna be getting three percent interest up to the first ten thousand dollars and then they'll give you a two and a half percent interest rate in their savings account up to $50,000 and honestly for me if it weren't for the limit of ten thousand and fifty thousand dollars I would move my money in here in a heartbeat judging by how many people have been super happy with them reading their reviews online and they seem like an all-around just really good Bank and honestly I'm really impressed with this one and I would recommend if you're looking for a high interest savings account to look into this one to do some more research just to make sure you're comfortable with it but otherwise this one looks like a really really really good option but way there's more I can one-up that one and this one I think is going to take a gold medal and this is the one I actually just opened up an account with myself so I can move some money from a lie into this account sorry a lie I know what we've been together for years but you're just not giving me the interest that I really want because this bank is giving me the interest and that is wealthfront they're offering 2.5 1% interest on their cash account with FDIC insurance up to $1,000,000 but let's take a quick pause here right now because this is very important because I'm sure you're thinking to yourself wait a second how can they offer $1,000,000 FDIC insurance when the limit is $250,000 per bank what's going on here this seems a little sketchy and that's honestly a very good question that when I saw that I'm like how is this possible so I did some good old-fashioned research and this is what I came up with when you look on their website you got to read the fine print and this is what it says FDIC insurance coverage is limited to two hundred and fifty thousand dollars per qualified customer account per banking institution wealthfront brokerage uses more than one program bank to insure FDIC coverage of up to 1 million dollars for your cash deposits so basically what they're doing is that you have an account with wealthfront but on the back end they're taking that money and they're splitting it up between affiliate institutions so that way you get four times the coverage within one account it seems to me that this might be just a little bit sketchy on the sketch scale if there is such a thing like 10 being super sketchy and one being not sketchy at all this is probably like a three sketchy and the only reason I say this and it's only just my assumptions here is that I would love some FDIC verification that they would actually qualify that up to a million dollars because you are holding your money in one account even though technically your cash is spread across other accounts I'd I just want them to confirm themselves it's they they give the stamp of approval because we had this issue with Robin Hood as well that they were like wait a second we don't do this I don't know why you're claiming this we're not going to cover you and then they had big issues with with Robin Hood so I have no doubt that I think 250 would be a pretty safe example but going up to a million dollars I don't know if I'd but that's just me but anyway with wealthfront there's no minimums there's no hidden fees just a straight-up cash account that offers 2.5 1% in interest and like I said I've been doing a lot of research on this and reading a lot of their reviews from people who have banked with them before and it seems pretty decent so I'm giving it a shot I opened up an account with them I'm gonna move some money in wealthfront and I'm just gonna split my money between wealthfront and Ally just so I can have some sort of diversification there just in case something happens so that way I don't put all my eggs in one basket but so far from what I could see wealthfront is a very good option that I'm gonna give it a shot and it seems like the reason that they're offering such a high interest rate is because they want people to get into the wealthfront ecosystem and then once they're there they're hoping that they're gonna be using the investing platform as well which is really where I think they're gonna be making most of their money so very much this account could be like a loss leader for the company even though they lose money on the savings account they might make it up on the back end which is perfectly fine with me as long as I can get my 2.5 1% interest rate and finally I just want to mention one last honorary mention that pays beyond everyone else and I have to mention this just because everyone has commented this on my previous few videos or just asked me to make a video on this but it's not that interesting to make its own dedicated video in this so here it is here this is the t-mobile checking account that pays 4% in interest but wait of course you don't get a 4% interest rate without a catch there's always got to be a catch so here's the catch it's limited to the first $3,000 only and you also must deposit $200 a month to get the 4% interest rate the way I see it to me it's just not worth the hassle considering that you can get 2.5 1% in wealthfront and put way more money in it without having to worry about depositing $200 a month to get that rate but of course I do want to mention it because if you're sitting there right now with $3,000 just wanting to make the highest interest rate possible with in a bank t-mobile is it as long as you are just okay with depositing $200 a month now before I end the video I just want to say this and make this very clear just so there's no confusion using these accounts is not supposed to be a substitute for investing and it's not about trying to make the most money possible even though that's actually kind of the point by getting a slightly higher interest rate but let me explain thing with a lot of these savings accounts is that you're not making a lot of money if anything when you account for inflation like if inflation is 2% per year and your money is sitting there in a bank account making two-and-a-half percent you're really only making half a percent in a year no one is ever getting rich off half a percent a year however the entire point of this is to keep your money's value or grow it by just a little bit until you have time to go and reinvest it elsewhere for example I would keep my emergency fund in a high interest savings account so it earns a little bit of money and doesn't lose any value and then I have the money sitting there for obviously emergencies or if I'm saving up for another property and I know my money is just going to be sitting there for six to twenty four months until I find the right deal so of course I keep that money in a high interest savings account so it's always ready to deploy whenever the right deal comes up and it doesn't lose any value so again this is not supposed to be a substitute for investing this is not to say that getting two and a half percent is a very good return because really it's not it's just about holding the value you have right now maybe making a little bit until you go and reinvest that money in higher yielding returns so with that said you guys thank you so much for watching I really appreciate it if you guys enjoy videos like this and you have not already smashed the like button make sure to always smash the like button make sure to always subscribe it's totally free to subscribe in fact the subscription button pays three percent in interest by subscribing so make sure to subscribe also feel free to add me on Instagram I post there pretty much daily so if you want to be a part of it there feel free to be a part there and then shameless plug to my second channel to Graham Steffen show I'm gonna be posting there pretty much daily so if you want other content there if you want more of more of me if you want more of me it's it's on the second channel so anyway with that said thank you so much for watching and until I sin

Channel: Graham Stephan

Views: 528,842

Rating: 4.9447079 out of 5

Keywords: robinhood, best savings account, high interest savings account, how to make money, how to make money online, how to make passive income, passive income 101, passive income ideas, passive income online, how to save money, how to save money fast, how i became a millionaire, wealthfront, ally bank, marcus by goldman sachs, tmobile checking, robinhood app, how to invest, how to invest your money, investing in stocks, investing in real estate

Id: ZvgDorJU21E

Length: 15min 5sec (905 seconds)

Published: Fri Jun 21 2019