James Martin / CNET
Not everyone is willing and willing to put their money on the stock exchange, especially in the current time Corona virus crisishow millions of Americans are Application for unemployment benefits and the economy seems to be in free fall. What little money you have could be better off in one saving account. Instead of possibly losing money, it only wins through interest.
But not all savings accounts have the same functions or offers. And when it comes to the best high-yield savings accounts, there are many banks vying for your business. Here is a breakdown between two leaders: Allies and Marcus from Goldman Sachs.
What is a high yield savings account?
A high-yield savings account is a savings account that earns more interest than a normal savings account. For example at the moment a Wells Fargo savings account earns 0.01% interest. By both Allies and MarcusYou can earn at least 1.50% interest at the time of this writing. In other words, you get a higher return than traditional banks, which means you have extra money in your pocket.
High-yield savings accounts tend to have fewer fees and a lower entry requirement than regular savings accounts.
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Ally against Marcus: At a glance
Since the offers and the protection of high-interest savings accounts differ, there are some important features to consider when comparing Ally and Marcus.
| Allies | Marcus | |
| Minimum deposit | $ 0 | $ 0 |
| APY | 1.50% * | 1.55% * |
| Withdrawals per month | 6 | 6 |
| fees | Overdrafts: USD 25; Repayment: $ 7.50; Excessive transactions: USD 10 each; Outgoing household cables: $ 20 | None |
| How to make deposits | Bank transfer, direct deposit, bank transfer, postal checks | Bank transfer, direct deposit, bank transfer, postal checks |
| FDIC insured | Yes | Yes |
* As of April 2020
Note that annual percentage returns – or APYs – fluctuate. The APY that companies list today may not be the same in a few weeks, months, or years. The variable interest rates tend to fall when the Federal Reserve cuts interest rates. In the past, both Ally and Marcus cut rates when the Fed cut rates.
Neither Ally nor Marcus charge monthly maintenance fees, which some regular banks do. This fee is normally charged if you fall below a certain dollar amount or do not reach another threshold set by the bank.
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What does Ally offer?
Ally is a leader in online banking because it was one of the first pure online banks. Not only does it offer a high-yield savings account, you can also check the following:
- Money market accounts
- CDs
- IRAs
- Check accounts
- Home and car finance
- Self-declared investment and managed portfolios
With so many features, it’s easy to add another to your list using a high-yield savings account. So if you have a car loan through Ally, you can also choose to open an IRA or other account there. This way, you can manage multiple accounts on one website.
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What does Marcus offer?
Marcus has no fees, but says that your third-party bank may charge you for certain activities. For example, if you fall below your minimum account requirement when making a transfer from a third-party bank, a fee may be charged.
However, Marcus will close your account if you run out of funds after opening. From the moment you open your account, you have 60 days to add money, or you could face an account closure.
Marcus von Goldman Sachs not only offers high-yield savings, but also CDs and loans. The product range isn’t as wide as Ally’s, but having no fees could be the most tempting part.
Ally vs. Marcus: Which is right for you?
The savings account you choose depends on what you expect from a particular company. Ally and Marcus have a lot in common: no minimum balance, a similar APY and the same ways to move money.
But Ally has a number of other products that can make you feel like opening a savings account that is worth it. For example, you can make IRA contributions directly from your savings account.
However, Marcus has fewer fees than Ally, although Ally knows in advance what they’ll charge you. This could be the deciding factor in your decision.
When making your decision, consider Ally and Marcus’ limitations. If you plan to use your savings account frequently, the six withdrawals per month for Ally and Marcus may be too limited. You may want to check an account with a little more flexibility, e.g. Wealthfront cash Account or Improvement every day Account – both offer unlimited free transfers.
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