
SoFi Checking and Savings
- 0.50% APY on checking balance
- Up to 3.80% APY on savings
- $0 account or overdraft fees
- Get up to a $300 bonus with direct deposits of $5,000 or more
Interest-bearing accounts can include savings accounts, money market accounts, certificates of deposit (CDs) and more. For many savers, these accounts are integral to basic financial planning and boosting savings.
An interest-bearing account is a type of account that pays you for keeping your money in it. The financial institution calculates interest based on your balance and credits it to your account, usually on a monthly basis or daily basis.
The higher the interest rate and the more money you keep in the account, the more you earn. Interest-bearing accounts grow your savings passively over time.
On the opposite side of the spectrum, a non-interest-bearing account means your money doesn’t earn any dividends month to month. For example, most checking accounts are non-interest-bearing.
There are plenty of interest-bearing accounts to compare, and you can have multiple types to diversify your savings.
SoFi Checking and Savings
OnePay Cash
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When comparing interest-bearing accounts, you’ll see a number and “APY,” such as 0.45% APY.
APY stands for Annual Percentage Yield, and the number before “APY” tells you how much interest you will earn over one year. For example, if you deposit $100 in a 5% APY account for one year, you’d earn $5 with yearly compounding interest.
How the interest compounds also determines how much you can earn. Daily compounding interest means that the interest on your money is calculated and added to your account balance daily. Each day, the new interest is calculated based on your original balance plus any interest already added. Therefore, you’ll earn more interest with a daily compounding account than with a yearly or monthly one.
Using the same example as before, $100 in a 5% APY account with daily compounding interest can yield $5.13 in one year. While it’s only $0.13 more than a yearly compounding account, it adds up over time.
While comparing accounts, you may also notice some labeled as “fixed” or “variable” when describing the interest rate.
A variable interest rate can change at any time, whereas a fixed rate stays the same over a set period.
For example, savings accounts have variable interest rates. The bank can raise or lower your APY whenever they’d like, often in response to market changes.
CDs, however, typically offer fixed interest rates. While the account is open, the bank can’t adjust your CD rate, which can be a good or bad thing, depending on the market.
Interest-bearing accounts have very few disadvantages, which is why they’re so popular. But if you’re seeking an account for spending or investing, you might have to look elsewhere for that flexibility.
Savings accounts and CDs are two of the most popular interest-bearing accounts out there, and for good reason. By simply keeping your money in those accounts, you earn interest passively.
But not every interest-bearing account is created equally, so be sure to compare all your savings options.
Connect and track all your accounts in one place with top financial aggregator apps like Origin, YNAB, Monarch Money, Empower and PocketSmith.
Some of the most unique and strangest promotions banks used to offers new customers.
Ally and Capital One have similar APYs and no monthly fees, but Ally is online-only and Capital One has some physical locations.
See how to earn up to $1,500 when you open a new Capital One savings or checking account with qualifying deposits.
The $500 Axos Bank bonus is now expired, but you can still earn $50 per qualifying referral, plus up to $400 with a new business account.
Discover only offers a bonus on its savings account, and it has a high deposit requirement. See how to get it here.
Some of the best-rated mobile banking apps include SoFi, Chase, Discover and Wells Fargo. See our full list here.
Some of the closest alternatives to Revolut include SoFi, One Finance, Wise, Ally, Capital One and Greenlight. Compare them here.
Fifth Third Bank currently offers a $325 checking account bonus when you open a new account and set up qualifying direct deposits.
Cardless cash provides a convenient way to use an ATM without their card. If you often go out without your wallet, or want to make it easier for family members to take out money, this is a feature that deserves a second look.