Want a savings account that makes your money work harder? You can earn 5.50% with My Banking Direct

This online bank offers a whopping 5.55% annual percentage yield (APY) on its savings accounts, one of the highest rates in the country. That’s more than 11 times the national deposit rate on savings accounts. If you’re willing to give up the ability to visit a physical location, you can earn a stellar rate with My Banking Direct.

What you need to know about My Banking Direct’s high-yield savings account

Whether you’re looking for a place to park your emergency fund or save for a summer trip, a My Banking Direct high-yield savings account can be a great choice. 

You won’t have to worry about paying monthly maintenance fees and there’s a modest $500 minimum opening deposit. However, the more you invest, the more you’ll earn.

What is My Banking Direct?

Recently, New York Community Bank (NYCB), My Banking Direct’s parent company, made headlines when it received more than a $1 billion injection of cash to help stave off a bank failure. The bank had incurred substantial losses from issues with its commercial real estate division and its purchase of Signature Bank (one of three banks that failed during the banking crisis in 2023).

If you’re hesitant to invest in a My Banking Direct savings account because of this, fret not—your savings are safe as long as you don’t exceed $250,000 worth of Federal Deposit Insurance Corp. (FDIC) insurance coverage. 

Of course, deposits in My Banking Direct are FDIC-insured. There’s no risk to deposits under the FDIC limits, which is at least $250,000 per depositor.

If NYCB is acquired by a larger bank (either after a failure or without one), MBD’s high rate on its HYSA will likely end.

— Ken Tumin (@KenTumin) April 9, 2024

Compare My Banking Direct to other banks

The takeaway

Run, don’t walk, to open a savings account with My Banking Direct. You’ll only need $500 on hand to get one of the best rates in the country. 

While savings account rates are the highest they’ve been in the past few years thanks to the Federal Reserve’s rate hikes. Savings accounts are variable rate accounts, meaning that APYs fluctuate with changes to the federal funds rate. This means that if the Fed lowers the rate this year―which they’ve indicated they will―the rate on your savings account will drop too.

If you’re interested in locking in a high rate for the long haul and don’t plan to tap your money for a few months or years, certificates of deposit (CDs) and Treasurys are boasting stellar yields right now and may be better options.