Online bank MySavingsDirect is a top bank in GOBankingRates’ Best Banks 2016 survey. The bank’s MySavings account has been named the Best Savings Account of 2016 as a nationally offered product that can help you get more out of your savings. Check out the benefits MySavings Direct is offering as the best bank for savings accounts and how it can help you have a financially sound year.
Why MySavingsDirect Won Best Savings Account of 2016
MySavingsDirect offers the best deal with its MySavings account. A competitive APY, lack of fees and accessibility made this online savings account the top nationally offered savings account.
Competitive High-Yield Savings Rates
One of the best features of MySavingsDirect’s savings account is its competitive rates. At the time that data for the Best Banks of 2016 rankings was collected, the MySavings account carried a 1.10% APY, one of the highest in the study, which put it at the top. Since then, the MySavings rate has shifted to 1.00% APY, but is still on par with other top savings account rates found in the Best Banks survey.
The MySavings account also stands out for its consistently competitive rates. The bank has a narrow product offering, providing only a certificate of deposit and savings account. This limited focus means that MySavingsDirect has a greater focus on its savings products and has to offer more competitive rates to draw in new depositors.
“While the APY may change at any time due to market conditions, you are assured to earn high interest with a MySavings Account,” according to the bank’s website. With a recent savings rate that beat out other top savings accounts, the MySavings account is a good option if you are looking for a higher-yield savings account.
No Account Fees or Minimums
The MySavings account carries no fees or service charges, nor does it have any minimum deposit or balance requirements. This is fairly uncommon as only 35 percent of the savings accounts surveyed by GOBankingRates had no monthly maintenance fee, and the median savings account fee is $3 for the 120 banks surveyed, or $36 a year. Earning a 1.00% APY on a savings account with a typical $3 monthly fee would take a balance of $3,600 just for a depositor to break even after a year. But with a fee-free account like the savings account from MySavingsDirect, the depositor keeps every cent earned.
The low balance requirements also make this savings account easy to open and manage. You can open an account with any deposit, even $1 or less. You also won’t have to worry about incurring any fees if the balance gets too low, as no fee also means no minimum balance requirement to worry about.
Widely Available and Accessible
As an online bank, MySavingsDirect offers its online savings account nationwide, so anyone in the U.S. can take advantage of this account’s favorable features. Opening a MySavings account is easy: You can complete your application online at MySavingsDirect.com.
The online bank also offers 24/7 access to funds through its online portal, and you can also link the MySavings account to an existing checking account with another bank. MySavingsDirect also has a toll-free customer line that operates seven days a week to provide support as needed. These advantages didn’t directly affect the MySavings account rankings, but they are still a big benefit to account holders.
3 Reasons to Open a MySavings Account This Year
While it offers the best savings account of 2016, MySavingsDirect’s product offerings are fairly limited. The online bank doesn’t offer a checking account, for example, and has no credit products at all. If you’re looking to find a new bank to switch all of your money over to, you might need a more comprehensive line of services than MySavingsDirect offers.
For those looking for a better way to earn more on their savings, however, opening a MySavings account can be beneficial. This savings account can supplement your existing bank accounts to provide a new savings vehicle that will earn interest much faster. The average savings account interest rate is 0.06% APY, according to the FDIC, so this account provides the option to earn interest nearly 17 times faster than a typical account.
Having a separate savings account can also be a strategy to manage savings more effectively, and some money experts recommend multiple savings accounts. If you have a high-balance savings fund that you want to keep readily accessible, like an emergency fund or down payment for a house or car, keeping it parked in a separate savings account can help in a few ways:
- Earn more interest: A high savings balance will have the chance to earn interest at MySavingsDirect’s higher rates, which keeps your money growing.
- Easily track savings goals: The funds in a MySavings account will also be separated from savings in other accounts that are tagged for other purposes and shorter-term savings goals. This makes it easier to keep track of different funds because you can simply glance at a balance rather than have to track different goals by hand.
- Keep savings separate: If you have a savings account that’s separate from your everyday money in your checking, it’s easier to keep it “out of sight” and resist the temptation to dip into this fund for frivolous reasons.
Keep Reading: The 5 Best Savings Tips in 2016
Methodology: To compile its list of the top 120 banks, GOBankingRates surveyed the FDIC’s list of banks sorted by asset size, excluding non-active institutions, those with less than $1 billion in assets, investment banks and any institutions that require customers to use investment services to access commercial bank accounts. This list of 120 banks includes 90 brick-and-mortar banks and 30 online-only banks according to the GOBankingRates database. No asset threshold was consulted for online-only banks.
Criteria for ranking: To determine its Best Savings Account category ranking, GOBankingRates scored each bank’s basic, personal savings account from most to least favorable for the following factors: (1) minimum deposit to open the savings account, (2) monthly maintenance fee, (3) minimum balance to avoid a fee and (4) annual percentage yield. APY was weighted more heavily than other ranking factors, and accounts were then ranked by overall score. In the case of a 10th-place tie, GOBankingRates used the APY as the tiebreaker.
Data was compiled via the GOBankingRates interest rate database and verified against the individual institutions’ websites between Oct. 29 and Nov. 23, 2015. Rates, terms and conditions are subject to change at the discretion of the individual financial institutions. APY was based on the minimum deposit required to open the account. Some interest rates might be short-term or promotional offers only, and it is possible additional terms and conditions must be met in order to obtain the interest rates listed. Rates and availability might vary by region. Please verify terms and conditions before opening an account.
GOBankingRates is a personal finance and consumer interest rate website owned by ConsumerTrack, Inc., an online marketing company serving top-tier banks, credit unions, and other financial services organizations. Some banks mentioned in the Best Banks of 2016 survey are clients of ConsumerTrack, Inc., which serves more than 100 national, local and online financial institutions. Rankings are completely objective, and no institution, client or otherwise, paid for inclusion or specific placement.