High yield savings accounts are a great way to grow your savings, but most people have their money in accounts with low rates. Unfortunately, that means many of you are losing out on some easy cash!

If you’re like most people, you probably don’t even know what interest rate you’re getting on your checking and savings accounts. You were probably told that when you opened your account, but that could have been years ago.

Savings accounts at brick and mortar banks are known for having really low interest rates. For example, here are some of the lowest savings rates I’ve seen:

• Bank of America’s standard savings rate is 0.03%
• Wells Fargo Platinum Savings has an APY of 0.05%
• U.S. Bank has a standard savings rate of 0.01%

Those rates are crazy low, which means your money just isn’t growing as quickly as it could.

This is why I was so excited to meet the people at VARO Money in person. VARO is a mobile banking app that offers free checking and high yield savings accounts.

Those banks I listed above often do have accounts with higher APYs, but that’s once you have a high balance, like $25,000+.

Varo offers a higher than average APY to all of their customers, even if you are starting with just a penny. That means the average person can start growing their savings at a higher rate, which helps you save even more money.

If you're looking for a free checking account, as well as a higher than average interest rate on your savings account, look no further!

With VARO, you can start earning 2.12% with a balance as low as $0.01. Once you have grown your savings, you can earn up to 2.80%.

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How does that compare to the national average savings rate? While it’s actually higher than the ones I listed earlier, it’s still a very sad 0.09%. That is a HUGE difference from what VARO is offering. If you are only getting 0.09%, then you are losing out on easy, passive money.

For example, if you have a $10,000 savings balance, you could be earning up to $280 a year just by having a high yield savings account with VARO. With the national average, you would only earn $9 a year.

Over a 10 year period, that same savings balance with a 2.80% balance would earn you an additional $2,800, whereas a savings account with an interest rate of only 0.09% would earn you a mere $90.

But, let’s look at one of those accounts with an even lower savings rates. If you have $10,000 in an account that is only earning you 0.03%, that’s only $3 a year and $30 over 10 years.

That is a crazy difference, and you can make easy money by shopping around and finding a high yield savings account!

One of the other great things about VARO that they don’t charge any fees – there are no monthly fees (and no minimum balance), no foreign transaction fees, and free ATM withdrawals from over 55,000 ATMs.

That’s all great news for the average person who doesn’t have a really high account balance – a high yield savings account like this is really valuable for everyone.

It’s just a great place to save your cash and earn high interest on it, whether that’s your first $500 toward a rainy day fund, your $2,500 tax refund, your savings in general, a down payment for your next house purchase, or money you're saving for your next vacation. It’s money you’re earning with no risk, and that’s a great feeling!

Here are a few more features you can expect when you open a VARO account:

• You will receive a Varo Visa® Debit Card.
• You can easily connect your account to PayPal, Venmo, Apple Pay, and more.
• You can still do direct deposit for paychecks and deposit cash into your account.
• Your high yield savings account is available to access 24/7 – you don’t need to wait for a weekday or banking hours.

Click here to check out VARO.

 

Now, you may be thinking – but this all sounds too good to be true?

If you have been with the same bank for years, you’ve probably gotten really comfortable with them. I know many people who are still at the same bank they started banking with when they were a teenager. And, if you’re like most people, you probably don’t even know what kind of interest rate you have on your savings account.

But, that doesn’t mean that finding a bank like VARO, who is offering a high yield savings account for even low balances, is too good to be true. It just means you’ve never shopped around to see what other banks are offering.

And, I completely understand that switching banks may take up a little bit of your time, but compare that to the fact that you are losing a decent amount of money by staying with a low savings rate bank.

You may be questioning why some big banks (including the one you've been at for years) have such low savings rates in comparison. The big reason is that they have no real incentive to raise them – they are hoping that customers, like you, who have been with them for years will just continue to hang around.

This is how those banks get you, and it’s how you end up losing a lot of money over time.

The reason is that most banks also have a lot of overhead. Each branch, teller, and ATM is costing you money. You don’t pay directly to use those things, but you do pay for them in fees and low APYs. VARO is an online bank, which means they don’t have those costs, and they pass their savings to their customers.

And, VARO Bank is regulated, so you have nothing to fear. They are just like any other bank in that way.

With VARO Bank, your money is FDIC insured to at least $250,000 through The Bancorp Bank; Member FDIC. They will never sell your data, and they keep it safe with powerful 256-bit AES encryption, access control, secure processes, and audits.

Plus, with a high yield savings account, your money is much more liquid and available to you than other ways that you might find higher rates, like certificates of deposit (CDs). You can withdraw money from your VARO bank account whenever you need to and you won’t be charged a fee to do it.

 

Why doesn't VARO Money charge fees?

VARO Bank doesn't think that you should have to pay money to get a high yield savings account. Varo is all-mobile, and because there are no physical branches or overhead costs, they can pass those savings to you.

In the end, VARO Money can help you save a crazy amount of money.

With a $10,000 savings balance, you could be earning up to $280 a year just by having a VARO Bank account, as opposed to the national average of just $9 a year.

 

How do I get started with VARO?

Glad you asked

To get started and open a VARO bank account, you will:

1. Signing up is super easy. Simply click here and sign up.
2. Submit your application, which takes less than 5 minutes.

See, super easy!

What's the interest rate you receive on your bank account? Are you interested in earning more by switching to VARO Money?

*Varo Annual Percentage Yield (APY) is accurate as of June 12, 2019. This rate is variable and may change. No minimum balance required to open account. Balance in Savings must be at least $0.01 to earn interest.

The post How To Earn Over 20x The National Savings Rate appeared first on Making Sense Of Cents.

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