Yes, Credit Karma has a New High Yield Savings Account
What if I told you there was a way to start a savings account without paying any fees?
Even better, what if there were no minimum deposit limits, and you had easy access to your account and funds at any point? Credit Karma’s new savings account me be the solution. AFN explores the benefits here.
If these benefits sound attractive, then you might be interested in learning about high yield savings accounts. Only about 21% of Americans currently hold these types of accounts. That means the majority are missing out on a huge opportunity to maximize their interest earnings!
Are you ready to become one of the nation’s elite savers? Read on to learn everything you need to know about high yield savings accounts and how to get one today.
Benefits of High Yield Savings Accounts
High yield savings accounts get their name due to their high interest rates. When you deposit money into these accounts, you earn more in interest over time than you would in a traditional savings account.
Some savings accounts have stable interest rates over time, but others are subject to change. If interest rates drop, then you don’t lose money. You just earn less over time. On the flip side, an increase in interest rates mean you’ll make even more savings without having to do a thing!
The biggest benefit of high yield savings accounts are their rates, but that’s not their only appeal. Like we mentioned above, these accounts usually don’t have any maintenance fees. There are no minimum limits, and you’re able to access your funds with ease online.
Over time, you can build up a significant savings fund with a high yield savings account.
Credit Karma’s New High Yield Savings Program
You already know that Credit Karma helps consumers access their credit reports, but did you know they’re dipping into the high yield savings account market, too?
According to the finance giant, they’re planning on creating a new program that will offer rates starting at 1.90%. That’s a rate over 21 times the national average.
If you choose to apply, then you’ll be able to manage your account directly on the Credit Karma website or app. Credit Karma won’t be holding onto your money, though. Instead, they’re partnering with MVB Bank, Inc, who will be responsible for securing the funds. The bank is FDIC-insured.
Credit Karma is the first fintech company to get into the high yield savings market. To remain competitive, they don’t plan on charging any fees for using their services. They’ll be no minimum deposit, and the finance giant vows to not take a cut of your earnings if you bank with them.
The Pandemic’s Impact on High Yield Savings Accounts
As a small business owner going through the pandemic, you know first-hand how difficult it has been to survive and thrive. Like most things, the high yields savings market has taken a hit, too.
The main reason why high yield savings accounts have been impacted by the pandemic is that the interest rate is now at near-zero levels. These low rates make it easier than ever to borrow money, but it also means that saving money isn’t as lucrative. If you already have an account, then you may have noticed your interest rates dropping.
On top of the interest rate changing, banks also have less incentive to offer higher yields right now. More Americans are saving money as a result of the pandemic, so there isn’t much need for banks to encourage more deposits.
Credit Karma, on the other hand, has a reason to offer higher yields. They’re looking for your business, and they want to help you secure your financial future.
Should You Invest in a High Yield Savings Account?
Due to the ongoing pandemic situation, it’s hard to imagine what you or your business will be like in the post-covid world. Right now, it’s a good idea to start building up an emergency savings fund if you have the resources to do so. High yield savings accounts are a good investment and a wise choice.
Are you considering using Credit Karma’s new high yield savings program? Let us know your thoughts in the comment section below.