Which online bank has the best HYSA?

American Express National Bank and Marcus by Goldman Sachs are popular online banks, each with a competitive High Yield Savings Account (HYSA) option. But in an environment where interest rates are falling every day, choosing the right bank and savings account is crucial.

We’ve looked at the HYSAs offered by American Express and Marcus by Goldman Sachs to help you determine which is best for your savings needs.

The Goldman Sachs Marcus Online Savings Account offers 3.90% APY as of this writing. That’s more than nine times the national average rate on savings accounts.

There are no monthly maintenance fees and the account does not require a minimum opening deposit or minimum balance to earn this rate. Interest is accrued daily and credited to your account monthly.

One of the downsides of the Marcus by Goldman Sachs HYSA is that it doesn’t offer an ATM card. Therefore, if you need to access your funds, you will need to initiate a transfer to another account. The good news: It allows same-day transfers of $100,000 or less to it from other banks. There is also no limit on the number of withdrawals or transfers you can make from your account.

Read our full review of Goldman Sachs’ Marcus

The American Express High Yield Savings Account offers a slightly lower 3.80% APY with no monthly fees. There are also no minimum opening deposits or minimum balance requirements to earn interest or keep your account open.

Interest on this savings account is compounded daily and credited to your account monthly. Like Marcus, this account also does not include any ATM cards, debit cards, or checks. Also, transfers from your savings account to an external bank account can take up to three business days to complete.

Read our full American Express National Bank review

These two accounts are quite similar.

Goldman Sachs’ Marcus offers a slightly higher rate than American Express (3.90% APY vs. 3.80% APY). However, for the average person, a difference of 0.10% will have little impact on the return on their savings account.

For example, let’s say you open a savings account and deposit $1,000, then let that money sit for a year without making any additional deposits. At 3.90% APY, you’ll earn $39.77 in interest over a year.

Now let’s say your account earns 3.80% APY. In this case, a $1,000 deposit balance over one year would earn $38.73 in interest. As you can see, the difference is quite negligible.

Of course, the more money you have in your savings account, the more impact the interest rate will have on future compounding returns.

That said, it’s important to understand that savings account interest rates are variable, meaning the bank can change the rate at any time at its discretion. An account that offers the highest rate today may not have the highest rate tomorrow, so it shouldn’t be the only factor you consider when choosing a high-yield savings account.

For example, when opening an account with an online bank, it’s important that it offers a robust and easy-to-use mobile app.

The Marcus by Goldman Sachs mobile app can be downloaded from the App Store and Google Play and has an average rating of 4.9 and 4.2 stars, respectively. Customers can use the app to open an account, add funds to their accounts, check their balances, transfer funds between accounts and more.

The American Express mobile app has slightly better ratings in the App Store and Google Play with 4.9 and 4.7 stars, respectively. Customers can use it to review transactions, set payment reminders, track and redeem membership points, and more.

Overall, despite slightly lower mobile app scores, Marcus by Goldman Sachs is the better HYSA option of the two, thanks to its higher interest rate, same-day transfers, and unlimited withdrawals and transfers.

Read our in-depth review of the Marcus by Goldman Sachs Savings Account here

Marcus by Goldman Sachs no longer offers investment products. However, it continues to offer banking products such as high-yield savings accounts, certificates of deposit and credit cards.

yes American Express National Bank is an FDIC-insured institution. This means that each account is insured up to $250,000 per depositor and per property class.

As long as you choose a high-yield savings account that is federally insured and your balance is within the limits set by the FDIC, your money is safe.

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