With the growth of online and internet banking thanks to the dismissal of brick and mortar banks, the response has been positive in favor of the customer. You’ll unearth better rates and options due to the lessened workforce (say what you will), and overhead.
Why Have a Savings Account at all?
It’s debatable that having a savings account is useful at all. Whereas, you can earn higher interest through investing, or through your business ventures. This may be true for a few, however having money in savings rather than a checking or investing account acts as a safe place for money to grow, albeit at a slow pace.
Savings are typically used as an emergency fund, where the money placed inside could act as a backup should you lose a job, or incur high medical bills for example. Think of Online Savings Accounts as a safer way to Invest Your Money!Let’s take a look at a few Savings Account Options that offer a competitive rate.
Online Savings Accounts through Apps
Through CITBank you can start using their new Savings Builder program, where you’ll earn up to 2.25% Annual Interest on your account! This rate is HUGE compared to a typical savings account from let’s say a Brick and Mortar Wells Fargo. Here’s how the Savings Builder Works:
- Sign Up for CIT Savings
- You’ll need a Social Security Number, Address, and Phone Number (all banks require this stuff)
- Deposit a Minimum of $100 to start
- Keep the 2.25% APY Savings Interest as long as you deposit $100 or more per month
- ormaintain a balance of over $25,000
- NO COSTS, NO FEES, IT’s FREE!!
Now that I have a family to look after, it’s hard to remember sometimes that we have dreams and goals that we’d love to reach. Sure, winning the latest $1B Powerball would be nice, but for a more modest purpose like a family vacation in Naples, Florida is more reachable. Still, setting aside financial saving goals like this one would be tough to manage given all of the responsibility that keeps piling up as a father of two. Enter, Qapital.
Qapital makes it super easy to save towards goals no matter big or small with a few actions. Available on Android and iOS, Qapital aims to appeal to those who don’t necessarily need a savings account but would rather save for more important things in their lives.
Savings on Auto Pilot
Getting started with the Qapital app is super easy. And yes, you’ll need a real banking account so that you can start linking up some initial transfers to the app/bank. It’s easy to confuse the app with a budgeting app, whereas Qapital technically is another FDIC insured bank.
It is a bank after all
Like it’s competitors Acorns and Stash, you’ll be able to round up cents and dollars for your savings goals, but instead of just investments, Qapital takes that minimal money and places it into an interest-bearing saving goal that you set. Pretty neat!
Here are some neat “rules” you can set up in Qapital so you are more likely to save:
- Hit the Gym? Deposit a Set Amount
- Indulging in Takeout Food? Deposit a Set Amount
- UseIFTTT(The Automation App) to set more rules!
The Qapital Debit Card
Once you are officially signed up with the program, you’ll be sent a Visa Debit card. For every purchase you make you’ll throw money into your goals. Don’t think it’s easy to transfer funds out of your set goals because the purpose of the app is to make sure you keep your goals within reach and untouched.
Most apps are very secure these days, and Qapital is no different. With deep encryption of the app itself, the bank is also FDIC insured. Whew!
Cost of Qapital?
We haven’t found any significant cost of using the service, although they do take a “Pay What You Think” format where you’ll essentially be donating to the app if you feel it works as it should.
Of all of the savings apps out there, we’re probably the most excited about Digit. More similar to Qapital where you’ll be able to save towards goals like a Dream Vacation or House Downpayment. Companies like Digit figured these are the goals of what the average person wants, so why not make an app that helps them reach their goals!
Although we are biased, we think Digit does a slightly better job organizing these goals for you based on your spending habits. Other benefits of Digit:
Unlimited Savings Goals
This way you can save toward’s your friend Alex’s Birthday Gift, Lizabeth’s Graduation Party, and much more without having to worry about limitation. Plus, with Digit you can prioritize these goals within your automatic savings.
Let’s say Digit over saves on your bank account, and it’s accidentally over the limit. With Overdraft protection, Digit will take of this for you!
Most Savings Accounts place a limit on how many times you can withdrawal from your account. Acting just like a Savings Account, but without limitations, Digit will allow you to withdrawal whenever you feel like, no judgments!
This means the bank is Federally Insured up to $250,000 in case the bank disappears or gets robbed…online? Either way, your money is Federally Protected (you should consider this for any bank you use)
Digit knows when to save, even if it’s when you purchase something at the store. If there’s a roundup opportunity, as in taking the purchase you made and rounded it up to the nearest dollar it will do so. Digit wants to ensure that you keep the same lifestyle and shopping habits you have, but with the added benefit of saving towards goals!
Again, because it’s FDIC insured you won’t have to worry about any significant hacks if your money is lost. Plus, it’s backed by bank level 256-bit encryption…whatever that means. We think it says it’s pretty darn secure.
Debt Paydown Optimization
Many people would prefer to rid of their debt before savings towards dream vacations. If that’s your priority then so be it! Digit will help optimize your savings goals and re-apply them to pay down (off) Debt!
The Cost of Using Digit
Probably the biggest drawback of Digit is that it does cost money to use it. Although we like to say you can’t put a price on comfort, with Digit it’s really only a measly $2.99 per month. Plus, since we’re partners with them we get to offer you a Free 30 Day Trial!