 what's up guys so there's this one high yield savings account out there that's doing a lot better considerably better than its competition in the high yield savings account market and this is a high yield savings account that pays not 1% not 2% it pays above 2.5% and in this video I'm going to be going over that savings account my personal opinion and talking about is it really better than its competition than some of these other high yield savings accounts so very quickly before we do talk about that and look at it and compare it to other savings accounts let's quickly talk about what is a high yield savings account and why you should be using one so a high yield savings account is a savings account that pays a high yield right it's kind of self-explanatory and a high yield in this case a lot of these savings accounts pay 1.5% 2% and a lot of them pay between 2.2 and 2.5% and the whole entire idea of these is to get away from the traditional savings account that offers literally 0.01% 0.1% 0.2% on your money per year which is literally nothing right these are the traditional savings accounts and now that there's a lot of these high yield accounts out there in my opinion there is no need for the traditional savings accounts they shouldn't be used anymore you can store all your cash whether it's an emergency fund you know whether it's a car fund whether it's a house fund an investment fund a portfolio cash fund you know in these high yield savings accounts so you're actually making money throughout the year and actually fighting inflation which is on average 2% per year right so let's talk about these more in depth and I'll talk about that one savings account right now that's doing very well compared to its competitors and then we'll compare so if you enjoy the video hit that like button subscribe if you want to see more content like this and let's get into it guys so the high yield savings account that's doing a lot better than its competition in terms of its apy in terms of the interest rate that it pays out to you is wealth front and I know wealth front has kind of been the talk of the personal finance community especially here on YouTube I've been hearing a lot about it on Instagram I've honestly been getting a lot of ads from wealth front as well so I figured I've seen a lot of videos and I figured why not talk about it and cover it in my own version of a video and that's the video you're watching right now so wealth front guys again I feel like they're trying to get their name out there I've been seeing a lot of ads and this yield that they're offering you guys can see it right here it's 2.57% which is ridiculous right me personally I don't even use wealth front I actually use Marcus by Goldman Sachs and they offer a 2.15% apy right now and that's actually 0.42% lower so that's actually considerably lower from what wealth front is offering right now so if we go down a bit here we can see some of you know the main specs of this wealth front account so let me just move my camera very quickly so we can see this so it's FDIC insured up to 1 million dollars 1 million dollars FDIC insured that is awesome guys every bank that I look at before I even put my money in I need to make sure it's FDIC insured because if that bank goes insolvent that bank goes bankrupt it you know it crumbles it loses everything and it's not FDIC insured your money poofs like that that $5,000 at $10,000 at $100,000 you put in whatever it might be that money vanishes right and there's no way you can get it back from insurance so this is FDIC insured that's amazing and it's honestly up to 1 million dollars which is very good a lot of the other ones are up to $250,000 so if you are working with a lot more money you know if you want to save more than 250k this could be the bank for you right so unlimited free transfers here move money in and out of your account as many times as you want so that's really really good typically a savings account is six times per month six times you know moving money in and out others are three times it really depends on you know what you're dealing with but typically there are about six times per month no market risk obviously your cash is kept out of the market so you never have to worry about short-term volatility and no fees guys no advisory fees no management fees no surprises earn more and keep more fast and easy setup of course and it's only a $1 minimum to open and there are no additional deposit requirements so in my opinion you know the basic things here FDIC insured that's very very good unlimited free transfers and no fees with a $1 minimum that's pretty good starting out guys and for my initial check and what I personally like to see in an online savings account a high yield savings account wealth front does get that check so although the 2.57% interest rate is very juicy it's very attractive it's very good initially it does concern me a little bit in terms of its sustainability right I don't know how long wealth front is going to be able to keep up this 2.57% interest rate right and this is something that I've been thinking about and a lot of people have been talking about this as well you know wealth front out of nowhere they increase their rate so high right and it leads me to believe you know this could be a opportunity for them a short-term opportunity to grab market share grab new customers with this very juicy you know glamorous looking interest rate and once they do grab those customers they are running a lot of ads like I said you know part of this why I'm seeing the ads is because I've been looking up you know wealth front on the internet I've been looking it up on my phone so I'm being you know targeted that way but they're looking to grab a lot of new customers that's the point of this right in my personal opinion you know if they do grab a lot of new customers they could potentially lower this rate in the next couple of months when they do have that customer base when they do add more people to their customer base with this very attractive you know interest rate at 2.57% and think about it guys a couple of months ago I'm not too sure if you were paying attention to online savings accounts then but a couple of months ago these high-heeled accounts they were actually offering more in terms of their interest rate Goldman Sachs right now is at 2.15% I believe a couple of months ago when the Fed spiked that interest rate they were at 2.25% and right now Ally Bank I believe they offer like 2.25 2.3% we'll see here in a couple of minutes but back then they were offering considerably more I believe at like 2.4% right and over the past couple of months now that we're getting pressures of a potential interest rate cut you know a lot of these savings accounts have been dropping their you know APY by just a couple of basis points right some 10 basis points some 20 some 15 it really just depends on you know the couple different accounts right but one thing that concerns me here is wealth front you know they could be seeing pressures to cut their rate here especially if we do get that 25 point basis cut 25 basis point cut rate cut here in a couple of weeks towards the end of July in 2019 so that in my opinion is not too bad of a thing you know it's not too negative on wealth front for potentially cutting the rate you know worse comes to worst you make 2.57% right now and then it goes to like 2.2 2.1 maybe 2% at the absolute worst and at that point you can just transfer your money back to an ally to a Marcus whatever you guys want to but in my opinion it's something to keep an eye on for and maybe they cut the rate maybe they don't we just have to see what ends up happening here over the next couple of months so very quickly let's take a look at two other savings accounts that I really really like and that I already mentioned in this video so the first one again that I personally use is Marcus by Goldman Sachs and you guys can see it's a 2.15% APY right here no fees and no minimum deposit you can link other bank accounts for incoming and outgoing transfers there's a US based contact center opens seven days a week and trust me guys I've used this myself I've called them they've helped me very very good and of course it is FDIC insured which is the number one most important thing that I'm looking for and without that I'm not putting my money into the savings account so this is one of them Marcus and the next one is ally which I did say was a 2.2% it's actually a 2.1% guy so they've actually really decreased their APY here over the past couple of weeks over the past couple of months and just like Marcus it's FDIC insured which is very important six transaction cycles and that's the same thing for Marcus right six per month in terms of that no monthly maintenance fees or minimum balance requirements 24 7 support here and if you go down here and take a look at this calculator let's say you have $25,000 if you're using ally bank at one point or 2.1% your estimated earnings are going to be $525 guys by having your money just sit there that's awesome right that's a really good return for $25,000 for simply a savings account and take a look at some of these other ones here city bank for a 0.08% that's a $20 you know you're getting $20 in one year off that $25,000 so would you rather have $525 or $20 for having your money sit and in terms of one year that is not even a question right guys you see Chase PNC right Wells Fargo $2.50 that's just pitiful right so these online savings accounts these high yield savings accounts they are so worth it in 2019 guys it's crazy and if you're not using them if you're not putting your money whether it be for investments car fund your taxes you know house whatever it may be if you're not putting your money into the high yield savings account right now you're really missing out on a lot you're missing out on fighting inflation and you're missing out on making some money on top of your money as opposed to not making money and on it at all in a traditional savings account so that's pretty much it for this video guys if you did enjoy it feel free to go down below and hit that like button drop a comment let me know what you think about wealth front and high yield savings accounts in general I would love to know what you guys have to think and if you want to see further content for me I'm uploading videos on the stock market investing trading personal finance business if you want to see more of this consider subscribing to the channel and hit that notification bell so you're notified every single time that I do make a video thank you all for watching I appreciate you taking your time out of your day to watch this video it means a lot I'll catch you all in the next video take care have a good day peace out