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If you’re looking to build wealth in a savings account you’re generally out of luck. The national average rate paid on savings accounts is just 0.04%, and many of the big-name, traditional banks offer a scant 0.01% APY on savings balances. But there are plenty of banks — mostly online — that offer 10x the national average savings rate, or even more. Those that also offer accounts with no monthly maintenance fees, no overdraft fees and no ATM fees are even more enticing when it comes to building wealth. Here are five of the top options for generating real earnings on your savings account balances.
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Sallie Mae Bank
Sallie Mae Bank’s SmartyPig account is something of a one-trick pony, but what it does, it does well. The bank offers the highest savings APY rate among major banks on its SmartyPig account, at a whopping 0.70%. That 0.70% APY is applicable to balances of $0.01 to $10,000, dropping to a still-impressive 0.45% on amounts above $10,000. The SmartyPig account also comes with no fees. However, there is no debit card access. You can use the SmartyPig account to set up different savings goals, recurring contributions and funds transfers to other accounts. You’ll also receive a $10 reward if you refer someone else who also opens a SmartyPig account. At a 0.70% APY, you can earn $70 per year on a $10,000 deposit.
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Monifi is an app that offers a unique blend of checking and savings accounts focused on goal-based banking. For your day-to-day spending needs, you’ll keep money in the “spend” portion of the account, but for goal-based savings, your money is shuffled over to the “save” portion of the account. Money in the “save” portion of Monifi currently earns an extraordinary 0.60% APY. Money is FDIC-insured and there are no minimum balance or monthly maintenance fees attached to either portion of the Monifi account. ATM withdrawals are surcharge-free at any ATM in the Allpoint network.
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Alliant Credit Union
Alliant Credit Union requires membership, but the $5 is put up by Alliant itself, so it doesn’t cost customers anything to join. Even if there were a cost, membership is quite valuable. The Alliant High-Rate Savings account doesn’t charge any monthly maintenance fees (if you select eStatements) or overdraft fees, and it pays a high 0.50% APY. That rate is paid on all balances with no …….