Rates are clearly going up now. Whether you have extra cash that you are looking to move from a bank paying basically nothing or are removing money from a volatile stock market, here are some places to consider putting your money today.
The great thing is that these five offerings is that they are all online offerings that enable you to make more on your money without getting off the couch. However, you should note that some brick-and-mortar banks and credit unions are also becoming rate competitive.
But, here are five very interesting online products.
1. Dollar Savings Direct, A Division of Emigrant – 1.60% Online Savings Account
Dollar Savings Direct is one of several Emigrant subsidiaries that we have seen over the last decade. These days Dollar Savings Direct is their most aggressive savings account. As savings rates increased in late 2017, Dollar Savings was always ahead of the curve, and while there are others who have now matched their rate, it seems like a safe bet to assume that they will continue to be aggressive as rates rise.
2. Purepoint MUFG Union – 1.60% Online Savings Account
Purepoint entered the online banking arena in 2017, and while they have been slower to raise rates that many of their competitors, they recently catapulted their savings rate up to 1.60% provided you maintain a $10,000 balance.
3. Live Oak Bank – 1.60% Online Savings Account
Live Oak is a new entrant to online banking. This relatively small North Carolina bank has entered with a very aggressive online savings rate. There are very few reviews on BestCashCow so far, and they are not universally great, but we think that the fact that they are aggressively courting new deposit accounts makes them worth a look for savings.
4. Live Oak Bank – 2.10% One-Year CD Account
As we wrote recently, we want to be pretty cautious about CDs in a rising rate environment, especially one where rates may now be poised to rise quite quickly. But, if you are inclined to lock in for the next year, Live Oak has the best 1-year rate at the moment and their early withdrawal penalty on a 1-year CD is only 3 months’ interest.
5. Sallie Mae Bank – 2.00% 1-Year CD
Sallie Mae’s early withdrawal penalty on a one-year CD is also only 3 months’ interest. There are user reviews on BestCashCow where users cite as an issue unduly long periods before money clears and is credited to their account. However, if you open a CD funding it directly from an external account, you will begin earning interest on it immediately (and maturity will be one year from that date of opening), even though the principal may not have technically cleared.
These are the places where we would look to put new money to work now.