Although FED is raising the interest rate, still my Chase savings account barely pays me any interest. More importantly, no interest rate does not motivate us to save. So, I am going to give you a few alternatives, 2 savings accounts that pay you to save ( that I use and familiar with) and
Before I start – Chase is still my primary bank. I get my direct deposits there, mostly because my credit cards are also Chase, so it is just convenient to pay my bills and things like that. But living in Boston, Chase does not give me any reason to stay with them. Chase
DCU – Digital Federal Credit Union offers 5% interest rate on first $1000 savings. Which is great. Accounts are FDIC secured and dividends are credited monthly. You can use DCU ATM card at any ATM, they reimburse up to $15 monthly on any fees incurred. And the Checking account does not have any fees.
Capital One 360 – To begin with, the checking account gives you 0.25% interest and Saving account gives you 1%. There is no fee for checking or savings accounts. But
Since this is a post about earning high dividend yields from fixed incomes, I will not talk about market linked instruments for small investors like us, and next options are also debt oriented high dividend yield instruments.
Prosper an Lending Club – There are peer to peer lending platform. You can lend money to someone who needs it for home improvements or medical needs or something else. Prosper and Lending Club vets those borrowers for you and they assign a credit rating. Based on the Credit rating, lenders get interest on the money lent. You can lend as small as $25. But, you are usually locked for 3 – 5 years. Some borrowers actually prepay too. But make sure not to take risk, I usually lent my money to A and higher debtors and I never lost money.
Worthy Capital – is the latest platform I discovered. And it is better than Lending