Maximizing Returns: A Guide to 5% Interest Savings Accounts
Explore how to access high-yield savings with up to 5% interest by using linked prepaid cards. Learn about the top providers, activation steps, and best practices for maximizing your savings with minimal fuss. Perfect for short-term financial goals, these accounts offer a smart way to grow your money efficiently.
Discover How to Earn Up to 5% Interest with Your Savings
Earning a 5% interest rate on a savings account may seem unlikely, but it is achievable through specific financial providers. The key to this high yield is choosing a savings account linked to a prepaid card. Historically, the minimum deposit was $5,000, but since mid-2016, some banks have reduced this to $1,000 to attract more customers.
Several reputable companies offer savings accounts with a 5% interest rate combined with a prepaid card. Notable names include Brinks, Netspend, Western Union, Ace Elite, and Control. Other providers like Momentum, Vision, Purpose, Insight, and Mango also offer similar high-yield options, though terms may vary.
When opening a 5% interest savings account, you'll receive a prepaid card, which is essential to proceed. Opening such an account involves minimal personal information and doesn't require a credit check, making it accessible without affecting your credit score.
While it's possible to hold multiple such accounts, it's advisable to do so one at a time to avoid confusion, especially if different cards are issued under the same company. Activation may require a premium fee, often up to $500, typically paid via direct deposit. Once activated, funds transfer first to the prepaid card before they can be moved into the high-yield savings account.
Withdrawals are permitted but process similarly: funds are transferred back to the prepaid card then moved to your bank account. Due to the transfer process, this account suits short-term savings goals. Regular account use is recommended to avoid inactivity penalties that some providers impose.
