You’ll want a high-interest rate if you want to make your money grow fast. However, shopping for the best rate and understanding the different terms takes some time and effort.
SaveBetter promises to make it easier by partnering with small banks and credit unions that offer higher-than-average interest rates on savings accounts, money market deposit accounts, and CDs.
Here’s everything you need to know about SaveBetter and how it works.
What Is SaveBetter?
SaveBetter is a savings platform; it isn’t a bank. Instead, they partner with 10+ banks and credit unions to get members the highest APYs on their deposits. If you use SaveBetter, you use the platform to deposit your funds, but SaveBetter never touches your money. Instead, they use their insured service bank, Central Bank of Kansas City, to transfer the funds.
SaveBetter’s parent company is Raisin GmbH, which was founded in 1973 and has been operating Raisin, a similar platform in Europe with 400+ bank partnerships since 2012. They are new to the U.S. but have a long history behind them.
Think of SaveBetter as a marketplace. You sign up for one account and can compare savings products from multiple banks, many of which offer higher APYs than they advertise to the general public.
You won’t find large, national banks on the SaveBetter platform. Instead, you’ll work with small to mid-sized community banks that most people don’t know about when searching for a high-yield savings account.
Is SaveBetter Legit?
SaveBetter is new, but it is legit. They work with FDIC or NCUA-insured banks and credit unions, protecting your privacy with several bank-level security measures.
Trustpilot has only a limited number of reviews with the company being new, though there are many 5-star reviews, boasting the ease of use of the platform to find the best rates for savings.
How SaveBetter Works
View Rates with Partner Banks
When you join SaveBetter, you can view CDs, savings, and money market accounts at partner banks. Unfortunately, they don’t offer access to checking accounts.
All partner banks and credit unions are FDIC or NCUA insured, and each individual gets the insurance of the partner bank or credit union, as it’s considered pass-through coverage.
When you choose a bank account through SaveBetter, you don’t have an account number and can’t withdraw your funds directly from the partner bank. However, all deposits and withdrawals go through the SaveBetter platform, so it’s completely online and may take a few days.
Open Multiple Accounts in One Place
If you find an offer on SaveBetter, you can sign up for it through the dashboard. You never have to go to or contact the chosen bank.
You don’t have to put all your funds in one bank. Instead, you can split your funds among as many accounts as you want.
Here’s the unique thing about SaveBetter.
You don’t open an account in your name when you open an account at a partner bank. Instead, you transfer funds to a custodial account at the partner bank held by Lewis and Clark Bank. The custodial account pools the funds of all SaveBetter clients in the account.
Who SaveBetter Is For
Requirements to use SaveBetter:
- Be at least 18 years old
- Be a U.S. resident
- Have a valid social security number
Anyone can benefit from the SaveBetter platform as they promote higher APYs than traditional banks offer for savings, CDs, and money market accounts.
One catch, however, is you must be comfortable banking online, as all transactions go through the SaveBetter online platform. You must also be okay with handling your banking transactions through a third party, not directly through the bank or credit union.
Understanding the SaveBetter features can help determine if it’s right for you.
Higher Interest Rates
One of the key features of SaveBetter is its higher interest rates. You might think the rates wouldn’t be high because the partner banks are small, community banks and credit unions.
However, they offer higher rates because it saves money on advertising.
If you’ve noticed the bonuses many banks offer, it makes sense. Banks spend a lot of money advertising accounts. Most would rather pay money to customers than pay for advertising.
Using the SaveBetter platform, they can easily advertise and reward customers who choose them by paying higher interest rates. In addition, since the APYs often beat regular banks that you can find yourself, you’ll make more money. The accounts are insured, so you don’t have to worry about losing money.
One of the best offering SaveBetter has right now is through Western Alliance:
Western Alliance Bank
Highly regarded financial publishers have consistently ranked Western Alliance at the top of their lists, thanks to their outstanding customer service and competitive interest rates. Right now, you can earn 5.05% on your entire savings, while also benefiting from the convenience of the SaveBetter platform.
Deposit Account Options
You have the option to open an individual or joint account at a partner bank in any of the following account types:
- High-Yield Savings and Money Market Accounts: With $1, you can open a savings or money market account through SaveBetter. Like most savings accounts, you get up to six withdrawals but can only access your funds online. The nice thing is there aren’t any maturity dates that lock your money up for the long term or penalties for withdrawing funds when you need them.
- High-Yield CDs: If you can tie your funds up for a while and like fixed income, the high-yield CDs offered can be a good choice. Most banks have 9 to 24 months CD terms, with some longer terms. You only need a minimum deposit of $1; the rates are higher than average. With such a low minimum deposit requirement, you can split your funds between CDs, locking up the funds you don’t need for a while in a longer-term CD and keeping the funds you need sooner in a shorter CD.
- No-Penalty CDs: If you’re worried about needing access to your funds locked in a CD, consider the no-penalty CD. These CDs pay a higher APY than traditional savings accounts but lower than high-yield CDs. The terms range from 10 to 17 months but may go as long as 36 months. The difference is you can withdraw funds from the CD prematurely without paying penalties. The goal is to keep the money in your account, but if you need it, you won’t lose money to penalty fees.
SaveBetter doesn’t charge customers any fees. This means you keep all interest income earned, and there aren’t any bank maintenance fees. SaveBetter makes money from its partner banks because they pay the platform to advertise for them, bringing in new customers.
SaveBetter’s list of banks can change frequently, but currently, this is the list of banks they partner with:
- Adda Bank
- Axion Bank
- Central Bank of Kansas City
- Cloudbank 24/7
- Continental Bank
- Hanover Bank
- Idabel National Bank
- Lemmata Savings Bank
- Liberty Savings Bank
- Mission Valley Bank
- Patriot Bank
- Ponce Bank
- Sallie Mae
- The State Exchange Bank
- Western Alliance Bank
- Wex Bank
Safety and Security
It’s understandable to be nervous about using a technology company to deposit funds, but they take many precautions, including only offering accounts through FDIC-insured banks. They also use several security protocols banks use, such as multi-factor authentication and encryption.
If you like the thought of saving your money at several banks but with one platform, it’s easy to start. The platform can provide you a way to get the highest yields on your savings, seamlessly changing banks with a click of a button and not doing any of the legwork yourself.
Here’s how to start.
Create an Account
Opening a SaveBetter account takes only a few seconds. First, you provide your personal identifying information and create a password. Then, when you choose banks to deposit your funds, you must prove your identity with a government-issued ID and Social Security number, like any other bank account.
Evaluate Banking Products
Once you’ve signed up, you can compare the bank products available at partner banks. However, the offers you see are exclusive to SaveBetter customers, so you won’t find these deals when searching yourself.
Each bank offers different products, but overall, you’ll find:
- High-yield savings accounts
- Money Market deposit accounts
- Term CDs
- No-penalty CDs
You can view the offers at each bank by clicking on the account type. This will provide you with information about the product, including:
- Minimum deposit requirement
- Account Terms, including withdrawal limits
Please note that your funds are insured for up to $250,000. Because you’re opening a custodial account with SaveBetter, it doesn’t matter that your funds are in different banks. Each single account gets maximum insurance coverage of $250,000.
To deposit funds, you must link an external account. For example, most people link a checking or savings account. You can add the account manually by providing your routing and account number or use the third-party app Yodlee to do it for you.
It can take a few days for your deposit to clear, and you don’t start earning interest until then.
You handle all accounts through the SaveBetter dashboard. This includes viewing your balances and YTD APY or depositing/withdrawing funds. Be sure you know the terms of each account, including how/when you can withdraw funds.
For example, if you open a term CD, you must leave the funds untouched for the entire term.
However, some may offer a provision to withdraw funds sooner, but you may pay a penalty, such as three months of interest.
Other accounts, such as HYSAs, typically allow up to six monthly withdrawals, but read the fine print to be sure.
Like the FDIC insurance, your savings account through SaveBetter is one account for tax purposes. This means you receive a single 1099-INT, which can be tremendously time-saving when you have money in multiple accounts.
Again, this is because you have a single custodial account, but the funds are distributed throughout several banks within the account.
Highest APY Right Now: 5.05%
SaveBetter is a secure and easy-to-use platform where you can fund and manage savings accounts from a network of federally insured banks and credit unions, all through one convenient account. What’s that ultimately mean for you? Higher rates on your entire savings.
Pros and Cons
It’s essential to determine the pros and cons of any financial product. So here’s what you should know about SaveBetter.
- May earn higher, unadvertised APYs
- No fees for the platform
- Access to high APYs from multiple banks in one account
- Only requires a $1 minimum deposit
- Managing accounts and tax reporting is all in one dashboard/document
- You may not recognize the banks partnered with SaveBetter
- No option for checking or online bill pay
- Customer service hours are limited
Characteristics of a Good High-Yield Savings Account
Before choosing a high-yield savings account, you should consider the characteristics of a good HYSA. Of course, the temptation of higher interest rates can make you jump at the first offer you see, but here are some factors to consider.
- High-interest rates: This one is obvious, the higher the APY, the more money you make. However, read the fine print. Is it a promotional rate? This means it may only last a few months and then return to its standard rate. Other requirements to achieve higher rates, such as a minimum deposit amount, may also exist.
- No or low minimum opening balance: Determine how much the bank requires you to deposit to open an account. Some don’t have requirements, and others set higher minimums to provide higher rates.
- No or low minimum average daily balance: Some banks require a minimum average daily or monthly balance to get higher APYs. Read the fine print to see what happens if your balance falls below this amount.
- No fees: Bank fees decrease your earnings. Many banks don’t charge a monthly maintenance fee; others waive it if you maintain a specific balance. Look for banks that don’t charge fees.
- Frequent compounding: The more often interest compounds, the more money you’ll earn. Ideally, you want daily compounding but monthly is better than annual compounding.
The good news is SaveBetter accounts don’t have a minimum opening balance or ongoing requirements. You also don’t pay any fees, and SaveBetter banks pay unadvertised, higher interest rates than you find elsewhere.
Alternatives to SaveBetter
If you’re not ready to trust a technology company to handle your custodial bank account, there are alternatives to earn high-interest rates and handle the accounts yourself. However, there isn’t another platform like SaveBetter to compare directly. Instead, you would have to do the work yourself, opening accounts and determining how to earn the highest APY.
SoFi is a personal finance company. They offer various products that help you manage your personal financial life, including checking and savings accounts and personal, student, and mortgage loans. They also offer investment products and credit score tracking and insights.
They currently offer up to 4% APY with no account fees and the ability to access your direct deposit up to two days early. In addition, they charge no overdraft fees and are FDIC insured.
Ally is a bank that operates solely online. They offer checking, savings, money market accounts, high-yield CDs, credit cards, mortgages, auto and personal loans, and investment products.
They pay 5x the national rate in interest and are FDIC-insured.
They don’t require minimum balances or charge monthly maintenance fees. Ally Bank also offers features other banks don’t provide, such as savings buckets for specific goals and automatic transfers to increase your savings.
Frequently Asked Questions
SaveBetter allows consumers access to higher interest rates than standard banks. Here are some common questions people ask about the process.
Is SaveBetter A Bank?
SaveBetter isn’t a bank. Instead, they are a technology platform that provides offers from partner banks. They handle transferring the funds and providing all the information about your account, but they are not a bank.
How Much Can I Earn Using SaveBetter?
How much you earn varies based on how much you deposit and what offers you accept. Each bank or credit union offers different rates and has different requirements. The more you deposit and the higher the interest rate, the more you can earn.
Does SaveBetter Have a Minimum Balance Requirement?
SaveBetter’s minimum balance requirement is $1. This makes it easy for anyone to use high-yield savings, CDs, and money market deposit accounts.
The Bottom Line
SaveBetter is still relatively new, so it’s working out some kinks, but it promises to be a great way to make your money grow. If you don’t mind banking online and want to take advantage of high, unadvertised interest rates, consider SaveBetter and its partner banks for your savings needs.