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As savings account rates continue to drop in response to the Federal Reserve’s rate cuts, it’s crucial to choose a savings account with an interest rate that’s high enough to outpace inflation. This ensures balance grows at a steady rate over time while preserving your buying power.
Laurel Bank’s high-yield savings account (HYSA) is one option you may want to consider. It offers a highly competitive interest rate with no minimums and the convenience of an online-only banking experience.
About Laurel Road
Laurel Road was established in 2013 as a digital banking platform focused on the student loan space. In 2019, Laurel Road became part of Key Bank and now offers a full range of banking products and services, including checking and savings accounts, home loans, personal loans, and credit cards.
About the Laurel Road high-yield savings account
Key details
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Annual percentage yield (APY): 4.00%
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Minimum opening deposit: None
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Minimum balance requirement: None
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Monthly fee: None
Laurel Road’s high-yield savings account currently offers 4.00% APY with no minimum opening deposit or minimum balance requirement and no monthly maintenance fees. Interest is compounded daily and credited monthly. You must have at least $0.01 in your account to earn interest.
At 4.00% APY, this rate is more than nine times the current national average for savings accounts (0.41%). That means the more you deposit in your account, the faster your interest earnings will snowball over time.
For example, say you open a savings account with an initial deposit of $500 and continue to contribute $200 per month. At a rate of 0.41%, you can expect to earn just $6.57 in interest over one year.
However, if you were to make the same opening deposit and monthly contribution to a high-yield savings account that earns 4.00% APY, you would earn $63.65 in interest over the course of a year.
It’s important to note that savings account interest rates are variable, meaning they can (and will) fluctuate with changes in the markets and overall economy. Although you can’t lose money in an HYSA, your interest rate could go down in the future. That’s why rates shouldn’t be the sole deciding factor when choosing a new savings account.
Read more: 10 best high-yield savings accounts available today
Pros and cons of the Laurel Road HYSA
The Laurel Road high-yield savings account has a few major perks and drawbacks to be aware of if you’re considering choosing this account for your savings needs.
Pros:
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High APY: This account boasts a competitive rate despite recent rate cuts. A higher APY means you can supercharge your savings and hit your goals faster.
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No monthly fees: There are no monthly maintenance fees associated with this account. However, other fees may apply depending on your account usage, such as overdraft fees or wire transfer fees.
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No minimum opening deposit: Laurel Road doesn’t require a minimum deposit to open an account. Savers can decide how much they feel comfortable saving and will earn the advertised rate as long as they have at least $0.01 in their account.
Cons:
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No branches: Laurel Road is an online-only platform, so customers don’t have the option to visit a physical branch.
Read more: Are online banks really safe?
Is the Laurel Road high-yield savings account right for you?
Laurel Road’s high-yield savings account is a worthwhile option if you’re looking for a fee-free savings account with a competitive APY.
However, you’ll need to be okay with the fact that it’s an online account, which could be a challenge if you want to deposit or withdraw cash or speak to a banking associate face-to-face. It’s also worth noting that the current APY is subject to change, so it’s important to consider all of the account features before signing up.
Read more: How to deposit cash at an online bank
