(I have had many requests for places to store cash, such as your emergency fund, that would provide a decent interest rate. With recent interest rates so low, our cash has been sitting idle for years. Now that interest rate have begun to rise, there are institutions paying decent interest for cash savings accounts. I asked Shawn Manaher, a former financial advisor, to give us a rundown of the best places to get a decent interest rate on cash today. Shawn and I have no financial relationship.)
Interest rates have jumped again, with the Federal Reserve deciding in early November to increase target rates to around 3.75-4.00 percent. They anticipate ongoing increases as well until inflation rates come down. While this may cause some hand-wringing when it comes to mortgages and lending, it’s good news for your savings account.
Personal finance plans must include strategies for saving money. If you’ve never considered a high-yield savings account in the past, now is the time to park some money there. You’ll earn more interest than you would have previously, and you’ll also keep those funds accessible in the event you need them.
Physicians have unique needs when it comes to spending, saving, and how to manage money. Here are some ideas that might help grow your wealth and leave you feeling more financially secure as you continue to invest in your career and your future. You need the best high yield savings account for doctors, and these are five good options.
Laurel Road High Yield Savings for Doctors
A savings account that’s specific to doctors, Laurel Road High Yield Savings accounts are available to all American Medical Association (AMA) members, and it does not cost you anything to get started. This benefit also provides a $100 cash bonus when you open your account. Competitive rates earn most doctors 10 times the national average on annual percentage yield (APY).
Laurel Road is a partner of KeyBank National Association. They provide specific financial tools to physicians, including savings accounts, mortgage offers, credit cards, and other resources. The bank is an FDIC member, and all financial decisions will be contingent upon credit approval.
The $100 cash bonus is paid out within 45 days of opening the savings account. No minimum balance is required, and there may be fees associated with ongoing maintenance of the savings account. To be eligible for this high yield savings account, you need to be an existing banking customer of Laurel Road, or a new customer who is a Doctor of Medicine (MD), Doctor of Osteopathic Medicine (DO), Doctor of Medicine in Dentistry or Doctor of Dental Medicine (DMD), Doctor of Dental Surgery (DDS), Doctor of Optometry (OD), Doctor of Audiology (AuD), Doctor of Naturopathic Medicine (ND), Doctor of Podiatric Medicine (DPM), Doctor of Veterinary Medicine (DVM), or Doctor of Chiropractic (DC).
Bask Bank High Yield Savings Account
Bask Bank offers 15 times the national average when it comes to APY through their high yield savings account. They’re paying up to 3.60 percent, and there are no monthly account fees.
Another offering through Bask Bank is a mileage account, which doesn’t accumulate the high yields, but does offer account holders extra miles to be used towards travel advantages. If you’re a doctor who loves to travel, and you don’t want to choose between earning interest or miles, you have the option to do both. Open a Bask Mileage Savings Account and a Bask Interest Savings Account.
Bask Bank is a division of Texas Capital Bank, an established FDIC-insured bank headquartered in Dallas, Texas.
360 Performance Savings Account with Capital One
There’s something to be said for name recognition. While some of the best high yield savings accounts are likely to come from smaller financial institutions, one of the best big banks you can use to save money with purpose is Capital One.
The 360 Performance Savings Account offers an APY of 3.00 percent, and there’s no monthly fee to keep the account active. There’s also no minimum opening deposit or balance required. This account offers a mobile app, mobile check deposits, automatic savings plans, and simple account transfers through linked accounts at any outside banks.
For doctors who appreciate banking with a stable and substantive financial institution with great customer reviews and a solid industry and consumer reputation, the Capital One savings account will provide impressive yields and a user-friendly platform that won’t require a lot of time to navigate.
Physicians can earn around 3.12 percent APY with a savings account through Lending Club. There’s a $100 minimum opening deposit required, but after that no balance requirements need to be met. It’s also fee-free, and you can request an ATM card if you feel like you’ll need access to the funds you’re holding in your high yield account. Open an account with an instant transfer from any existing bank account as well as your social security number and about three minutes of your time.
Lending Club also makes it easy to manage money. They provide account holders with an entire dashboard offering tools for budgeting, tracking, and debt payment. If you’ve been wondering about your net worth as a doctor, Lending Club will help you establish that number.
CIT Bank is an ideal option for doctors seeking a high yield savings account because it’s good for larger deposits, and you can make unlimited deposits. The bank merged recently with First Citizens Bank, and it’s FDIC-insured.
With a 3.00 percent APY, the bank offers account holders earnings that are 14 percent higher than the national average. Use the app to deposit checks remotely and transfer funds from other accounts. You’ll need $100 to open the account, and there are no ongoing maintenance or account fees. Consider opening an eChecking account with CIT Bank, which also earns a small APY, and link it to your savings account for additional perks and savings.
Keep in mind that with any account, the Annual Percentage Yield is variable and subject to change. Look for account options with high interest rates and low service charges. And, be willing to look at options that extend beyond the larger, well-known banks. Name recognition is nice but smaller institutions, such as online banks and apps, offer good rates and all the same benefits and protections.
(Shawn Manaher is a former financial advisor, has founded 5 online businesses, and is a coach, speaker, podcast host, and author.He’s been featured on Forbes, The Consults Corner on TAE Radio, The Writing Biz, What’s Your Story, and more.He loves to share his personal finance tips and money management wisdom with others on his website, ShawnManaher.com, to help them find financial freedom.)