Best Savings Accounts For Seniors
For a long time, the tried and true way to save money was to put it into a savings account. This was because it was safe and you earned interest on your money. But recently, the banks started paying you almost no interest on your savings account money.
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For 2023, that has now changed because the US Federal Reserve has greatly increased monetary interest rates. They did this to slow down inflation by making it more expensive to borrow money or use credit. However, this at the same time has now increased the interest rate that banks are paying on savings accounts – making them again a good financial choice for seniors who are looking to protect their savings and also receive some interest earnings on their savings. This is very important for many seniors who don’t want to risk their savings in stocks or other investments, but also want (or even need) a way to get some extra income.
While most physical (brick and mortar) banks are still paying under 1% interest on savings, there are several online banks that will pay you 4% or even 5% on your savings account. These banks offer a variety of high-yield savings accounts. Unlike traditional savings accounts, high-yield savings accounts reward you with a higher interest rate and your money grows even faster thanks to compound interest — which lets you earn interest on interest. They usually offer higher interest rates, lower fees and overall better benefits than national brick-and-mortar banks.
The savings accounts listed below offer above-average interest rates to all customers (no matter their balance), are FDIC-insured, have zero monthly maintenance fees and low (or no) minimum balance requirements – making them some of the best savings accounts available for seniors in 2023.
LendingClub High-Yield Savings
Annual Interest Rate Yield (APY): 4.00%
This account offers one of the highest returns on your money, charging no monthly maintenance fee and not having a minimum balance requirement. You just need an initial $100 deposit to open the account. Plus, unlike many other savings accounts, LendingClub provides customers with a free ATM card and never charges any ATM fees. This makes it easy to access your savings account and withdraw money whenever you want. You can also use your funds to pay bills, send money to friends and family and make internal and external transfers.
To add money to your savings account at LendingClub, you can deposit cash at select ATMs, deposit checks via the mobile app, do a direct deposit, make an electronic transfer from an external bank or make a wire transfer.
Ally Online Savings Account
APY: 3.30%
The Ally Online Savings Account is a good high-yield account on its own,but account holders can enjoy even more benefits if they also have an Ally checking account. In addition to a solid APY, no minimum account balance and no monthly maintenance fees, an Ally checking and savings account also gives you access to over 43,000 free Allpoint® ATMs, making it easy to withdraw cash when you need to.
Account holders can organize their saving goals by creating up to 10 different “buckets” within the same savings account. For example, you can create a designated fund for a “Future Vacation” and another for “Emergency Savings.” Ally is also a consumer favorite because of its easy-to-use mobile app and 24/7 live customer service that is available over the phone, through online chat or on the Ally mobile app.
Synchrony Bank High Yield Savings
APY: 3.75%
Withdrawing money is quick and easy when you have a Synchrony Bank High Yield Savings account. There is no minimum balance requirement, no monthly fees and a strong APY. But what makes this account stand out is its convenient withdrawal options. Synchrony Bank offers an optional ATM card to its savings account holders. You can access your money by ATM, wire transfer (up to three free per statement cycle) or through an electronic transfer to or from accounts you have at other banks. Synchrony Bank allows you to conduct unlimited transactions at an ATM.
Their customer service line is available seven days a week by phone or online chat, as well as 24/7 through its app so you can manage your account on the go. Additional customer perks include complimentary identity theft assistance, travel discounts and free webinars.
SoFi Checkings and Savings
APY: 3.50%
This account stands out for offering a valuable welcome bonus after you set up and receive direct deposit payments (such as Social Security or other pension payments). You can get anywhere from $50 to $300, depending on the total of your direct deposits in a 30-day period.
In addition, the account comes with a debit card that has fee-free ATM access through the Allpoint® Network, which has over 55,000 locations across the country. And while paying with a debit card usually lack rewards, their card can get you up to 15% cash back when you use your card at specific merchants.
Varo Savings Account
APY: Up to 5.00%
Varo offers a 3.00% APY to all savings account holders, as well as a checking account option. Neither account requires minimum balances to open and neither charges monthly maintenance fees. Varo stands out because of its uniquely tiered APY program that encourages you to save more. While you can take advantage of a 3.00% APY regardless of your account balance, you can earn up to 5.00% APY if you meet certain monthly requirements. Varo also offers an ATM network with no fees.
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