An online bank has just done a big favor for new savers -- or those with just a bit of cash to stash.
DollarSavingsDirect, the online division of New York-based Emigrant Bank, has raised the rate on its Dollar Savings Account to 1.25% APY. That's the same killer deal offered by PurePoint Financial, which debuted a new savings account earlier this year.
Those two accounts pay the top nationally available rate, which is considerably higher than the 0.08% APY national average.
Here's the big difference: DollarSavingsDirect requires neither a minimum deposit nor a minimum balance to earn interest. PurePoint's minimum deposit is $10,000, a barrier to savers without a lot of change in the bank.
The DollarSavingsDirect is available nationwide, but account holders must:
- be at least 18 years old
- have a Social Security number
- live at a legal U.S. address
- own a personal checking account at a U.S. bank
Your checking account will be linked to the DollarSavingsDirect account, although you can make your initial deposit by check. All future deposits and withdrawals must be done electronically.
Best savings accounts
If you're looking for other options, these are the other best nationally available savings accounts:
- My Banking Direct pays 1.15% APY with a $5,000 minimum deposit.
- EverBank pays 1.11% APY with a $5,000 minimum deposit.
Among the four top contenders, it's clear PurePoint Financial and DollarSavingsDirect offer the best rate. But when selecting the best savings account for you, look for the highest yield while also considering introductory rates, minimum balances and accessibility.
If you're looking for a higher return, consider purchasing a CD from one of the 4,800 banks and credit unions Bankrate surveys.