Looking to maximize your savings in 2024? Opting for the right savings account can help boost your savings with no extra effort required. So, if one of your New Year’s resolutions is to save more this year, you could benefit from putting your cash into a high-yield savings account with a competitive APY.
One account in particular that can help grow your savings risk-free is Milli Bank’s mobile savings account, available on both iPhone (iOS 15.0 or later) and Android devices (Android OS 8.0 or later). Milli's high-yield savings account offers a 5.50% APY and has no additional fees or minimum balance requirements. This is one of the highest APYs on the market.
In the app, Milli allows users to organize savings into personalized "savings jars" that each earn interest. These can be a useful tool if you're looking to start budgeting and set aside money gradually for different goals or expenses. Milli accounts, including savings jars, are FDIC insured up to $250,000. Milli is a division of First National Bank of Omaha (FNBO).
On the down side, Milli has been hit with some customer service complaints noting that the app can be slow to clear money transferred from your bank and Milli can be slow to respond to customer complaints. While a market-leading rate might be the most important factor for you, other considerations are customer service, the ease of signing up and clear communication on the process. Please note all of the accounts and products we cover are FDIC-insured.
Here are several pros and cons of the account and platform:
|High APY (5.50%)
|No phone support available (only mobile chat and email)
|Network of 55,000+ ATMs
|No physical locations, mobile access only
|Money transfers may take a while to clear
|No minimum balance requirement
|Does not accept mobile check or cash deposits
|Offers additional savings/budgeting tools
|Row 4 - Cell 1
Why open a CD?
Because the cash saved in them is easily accessible, high yield savings accounts are good alternatives to CDs if you don't want your money tied up for long periods of time. Unlike CDs, there's no maturity date on a high yield savings account — you can withdraw funds at any time. For this reason, they make great savings vehicles for short term savings goals or emergency funds. Just keep in mind that rates on high-yield savings accounts are not fixed, meaning the rate you earn can fluctuate with the market.
When you compare CDs vs. high-yield savings accounts, you'll also see that high-yield savings accounts are more suited for individuals looking to gradually save by making regular deposits into an account. CDs, on the other hand, require a singular up-front payment upon opening the account.
Savings in 2024
Since March 2022, the Federal Reserve raised the federal funds rate 11 times in an effort to combat inflation by driving spending down as consumers realize higher commercial interest rates on mortgages, credit card APRs and other loans. The upside to this was that when the federal funds rate increased, interest rates on high-yield savings accounts and CDs did too. However, at the latest policy-setting meeting, the Federal Reserve held interest rates steady yet again. This third consecutive pause in rate hikes means the Federal funds rate, a key bank lending rate, will remain at a target range of 5.25% to 5.5%. Furthermore, the Federal Reserve also sees three interest rate cuts in 2024, and has lowered its median interest rate projection for the end of 2024 to 4.6%.
Savings rates, particularly CD rates, have been falling since the Federal Reserve began holding interest rates steady, and they will continue to drop further if the Federal Reserve cuts interest rates this year, as expected. For this reason, it’s a smart idea to take advantage of rates now, while they’re still high.
You can use our tool below — powered by Bankrate — to compare high-yield savings accounts today.
Jan 10, 2024 updated to reflect some pros and cons of the Milli Bank service
Erin pairs personal experience with research and is passionate about sharing personal finance advice with others. Previously, she was a freelancer focusing on the credit card side of finance, but has branched out since then to cover other aspects of personal finance. Erin is well-versed in traditional media with reporting, interviewing and research, as well as using graphic design and video and audio storytelling to share with her readers.
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