SaveBetter serves as an online marketplace and connects individuals with high-yield bank accounts. Partnering with various banks and credit unions SaveBetter offers exclusive interest rates to customers who open accounts through their platform instead of directly on the partner banks’ websites.
Safety and Insurance Coverage
When opening accounts through SaveBetter customers can rest assured that their funds are protected. Banks offer FDIC insurance while credit unions provide NCUA insurance which guarantees up to $250,000 in an individual account and $500,000 in a joint account. Although some partner institutions may be less recognized the insurance coverage ensures the safety of deposited funds.
Access to Credit Unions and Nationwide Accounts
By using SaveBetter individuals can open accounts with credit unions without geographical restrictions. While credit unions typically require membership based on location or employment opening an account through SaveBetter only necessitates signing a membership agreement without any associated fees. Additionally SaveBetter expands the availability of partner bank accounts which makes them accessible nationwide and offering customers the opportunity to earn higher interest rates .
Aligning Values with Partner Institutions
SaveBetter allows users to filter account options based on the type of institution they prefer . Whether it’s minority-led, family-owned or locally focused customers can find accounts that align with their values and support institutions with specific missions such as community development financial institutions (CDFIs).
Custodial Accounts and Transfer Process
Once funds are deposited into a SaveBetter account they are held in an omnibus custodial account managed by Lewis & Clark Bank. This setup enables SaveBetter to distribute funds across partner banks. However custodial accounts have certain limitations particularly regarding accessing savings. Customers must link their SaveBetter account to an external account and initiate transfers which typically take one to three business days . It is advisable to maintain a separate checking account at another bank to facilitate these transfers.
Benefits of Partner Savings and Money Market Accounts
SaveBetter’s partner savings and money market accounts offer significantly higher interest rates compared to traditional national banks . This allows customers to earn more on their savings while avoiding monthly fees that are often associated with traditional bank accounts. By leaving funds untouched in a SaveBetter account individuals can maximize their earnings and potentially benefit from compound interest .
Fixed-Rate CDs and No-Penalty CDs
SaveBetter offers fixed-rate certificates of deposit (CDs) with additional benefits . These CDs may feature term lengths that are not directly available through partner banks which allows for greater flexibility. Additionally the minimum deposit required to open a CD through SaveBetter is only $1 regardless of the chosen partner bank. This is a significant advantage as traditional CDs often require higher initial deposits . While early withdrawal penalties apply to fixed-rate CDs SaveBetter also provides the option of no-penalty CDs allowing for more flexibility in accessing funds without incurring fees .