As FED (Federal Reserve System) is (was?) raising interest rates we don’t have to suffer from 0.01-0.06% APYs on our savings accounts anymore. Larger retail banks are slower to act here for obvious reasons, but there are first movers worth to take a look. I was considering Marcus by Goldman Sachs, AMEX Personal Savings, HSBC, Barclays, and Allo. There were smaller & less known players offering over 3% but I didn’t feel like adding an extra risk. I decided to do a split between Marcus and AMEX Personal Savings based on APY and online ratings. Comparing these two Marcus is better in both APY and experience.
I never banked with Goldman Sachs and from my previous banking experience (Citi Gold) online is never just online and includes calls and snail mail. With lowered expectations, I opened a new online savings account in June 2018. I was positively surprised, the signup experience was very smooth and everything was actually online. 6+ months in so far and no complains (nor hidden fees).
If you take a look at the finer print (terms and conditions), we get the standard $250K FDIC insurance, the minimum deposit of $500, 6 withdrawals every month, and accounts are now capped at $1M.
The best part of the Marcus is they’re reflecting increasing interest rates. I received three emails regarding the percentage increase. As of January 16, 2019, they’re at 2.25%. You don’t have to wait in the long line for Robinhood’s 3% cash management account, interest in Marcus is Interest is compounded daily and credited to your account on monthly basis.
If you want to start using Marcus just sign up via their homepage.