Even though interest rates are pretty dismal these days, don’t write off savings accounts just yet. Not only are they better than a checking account for storing an emergency fund, there are innovative new savings account concepts coming out everyday.

This is a sponsored post written by me on behalf of Money Under 30 for PrizePool.

Whatever you do, don’t settle for a savings account with an average rate.

According to the FDIC, in December 2021, the national average annual percentage yield for savings accounts is 0.06%. 

Not 6%, not even 0.6%. 0.06%.

Why so low? The short answer is that loans are too cheap and lenders aren’t making as much of a profit to share with savings account holders.

But that doesn’t mean all savings accounts have such disappointing rates–you just have to hold out until you find the right one.

If you’re looking for a competitive savings app, you’re in the right place. PrizePool is an innovative app that pays a high interest rate on all balances.

Oh, and did we mention you can win cash prizes every week too? Learn more about this high-interest savings app with a twist.

How to get the best interest rate on your savings account

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There are a few things you can do to get the best interest rate on your savings account balance. You can:

  • Compare savings account rates from different banks.
  • Look for special offers and promotions.
  • Use a high-interest savings tool like PrizePool.

Let’s look at each of these strategies and how you can put them into practice.

Comparing saving account rates from different banks

As we mentioned earlier, the national average for interest on savings accounts is just 0.06%.

You could easily find a bank that offers more than that, but how do you know if it’s as good as it sounds?

Take a few minutes to compare your options (we have a whole list of some of the best accounts).

Be sure to keep your eyes peeled for special offers, too. Banks have been known to offer higher savings account rates as a promotion, so don’t miss out on those deals.

Locating special offers and promotions

Source: Tenor.com

Some banks pay more interest as a way of attracting new customers, like how many stores use coupons to attract shoppers.

But because these incentives are usually time-sensitive (e.g. for the first three months), you have to be aware of how to take advantage of them.

One way is to read your bank’s promotional materials and email newsletters.

They’re often designed to draw your attention and give details about how you can get a better interest rate on your savings account balance.

Another way is to take advantage of financial apps that notify you when your bank runs a special.

Using a high-interest savings tool like PrizePool

PrizePool is a savings app that pays much more than the national average. PrizePool offers a high interest rate because it cuts out the middleman.

Instead of being linked to your checking account, your savings is directly linked to PrizePool’s prize pool of $50,000.

When you use the app to check how much interest you’re earning on your balance, you also see how many raffle tickets you’ve earned along with the Estimated Pool APY. This is the APY calculated by dividing and annualizing total prizes paid by the average balance.

It’s important to note that PrizePool is an app that you download to your smartphone

The PrizePool app shows you exactly how much you’ve saved through winnings and deposits. You see your total winnings and how much your balance has increased through cash prizes, the 0.30% savings bonus, and deposits.

If you have a traditional savings account that earns less interest, compare the growth between your accounts to see how rewarding PrizePool can be.

PrizePool gamified savings app

PrizePool is a prize-linked savings app that earns a 0.30% savings bonus on your entire balance. That’s 5x the national average.

There’s no minimum balance requirement and you can open an account with any deposit. But the higher your balance, the better your chances of winning.

For every dollar you have in your account, you’ll get one ticket per day to be entered in weekly cash prize drawings. 

Now for the fun part. There’s a drawing with almost 6,000 winners every Friday at 12 pm PT. And every four weeks, there’s a grand prize drawing for $10,000. Your name is entered automatically if you have an account and you don’t pay fees if you win or lose. 

In fact, PrizePool doesn’t charge a dime in fees. Not for monthly maintenance, transfers, low balance, or anything else you’re probably used to paying with a traditional savings account.

Plus, refer a friend for a 10% prize boost in both of your accounts each time your referral wins.

And it’s all risk-free. PrizePool accounts are FDIC insured up to $250,000 per depositor.

So, you’ll never lose your deposit and you’ll earn the 0.30% savings bonus on your balance every month regardless of whether you end up on the Winners Board or not. 

If you actually want to meet your savings goals and watch your money grow, PrizePool is the account for you.

Benefits of online saving

Source: Giphy.com

You might be loyal to your big brick-and-mortar bank, but when’s the last time you thought about your savings account needs? And how much do you pay each month in unavoidable fees?

Big banks and credit unions don’t make a lot of money on savings accounts, so many don’t bother to pay good interest rates.

And on top of that, they’re going to charge you fees for just about anything they can get away with because that’s where their profit is coming from.

At the end of the day, you’re working harder and saving more slowly with a traditional bank.

Tired of paying big banks money one fine print fee at a time just for a lousy interest rate, more and more users are turning to online saving.

Online-only banks and products like the PrizePool savings app are able to operate with low overhead, so they can afford to charge fewer fees.

Many online savings accounts (the good ones, at least) are actually free and also include: 

  • Higher interest rates.
  • No minimum opening deposit requirements.
  • May offer sign-up bonuses.

With so many options, you have the right to be picky when choosing a savings account. Just like you shop around for loans and credit cards, you should shop around for a savings tool with a high interest rate.

Why PrizePool?

Besides a solid rate and the opportunity to win prizes, PrizePool can actually help you reach your savings goals more quickly and easily.

The idea behind this is that when you enjoy saving, you’re more likely to make a habit out of it. 

This is an especially great option for those new to saving and those looking for a safe account to park their cash and stay on the right track.

But even if you don’t have a hard time putting aside money each month–and you would be in the minority there–it never hurts to save more.

Because your balance determines how many tickets you get, you’re going to want to save as much as possible.

Plus, you’ll be able to see your hard work pay off with that 0.30% savings bonus.

Gamified saving is more rewarding (literally), and nobody does it better than PrizePool.

Saving this way just makes sense.

Summary

Even with hohum interest rates, savings accounts are still valuable tools for anyone looking to manage their money wisely. They help you practice saving while earning a trickle of interest in a zero-risk environment, and your money is always ready for plucking in case of emergency. 

Plus, if you shop smartly, you can find a high-yield savings account with an annual percentage yield of 0.30% or higher.

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About the author

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Lauren Graves is a personal finance writer specializing in honest brand and product reviews. She wants to help people feel less stressed when they spend their hard-earned cash and do her part to make money make sense.