People always seek options to multiply their wealth at low risk. Regular savings accounts are used for this purpose, but inflation will eat into your savings, leading to erosion of wealth. High-yield savings accounts are an excellent way to grow your savings with minimal risk while also earning a higher interest rate. Several banks and credit unions in Minnesota offer competitive high-yield savings accounts. This blog will talk about ten such institutions, detailing their features such as annual percentage yields and monthly fees. Here’s all you need to know about high-yield savings account in Minnesota.
10 High-Yield Savings Account in Minnesota
Although there are numerous options available for a high-yield savings account in Minnesota, these are the top ten options that one can consider:
Beem
Beem offers a range of financial services. While it doesn’t offer a high-yield savings account, it provides a platform for checking offers from various banks and financial institutions.
| Feature | Details |
| APY Rate | 5%. |
| Monthly Fees | Nil. |
| Pros | It offers a high APY of 5%. It charges no monthly fees. A user-friendly platform. |
| Cons | Customer service is primarily online. |
Ideal Credit Union
Ideal Credit Union serves the local community with competitive rates and flexibility to transact any time without charging any monthly fees.
| Feature | Details |
| APY Rate | 4% to 4.40%, depending on the amount. |
| Monthly Fees | Nil. |
| Pros | Offers competitive APY. Provides flexibility to add or withdraw money. Has a strong community presence. |
| Cons | Limited to residents of few states only. |
Ultima Bank Minnesota
Ultima Bank Minnesota focuses on providing reliable local banking services with a competitive APY. It’s a good choice for those who value multiple account options and local expertise.
| Feature | Details |
| APY Rate | 5.10%. |
| Monthly Fees | Nil. |
| Pros | Reliable local service. High APY compared to the market. Variety of account options. |
| Cons | May require a minimum deposit for high interest. |
Drake Bank
Drake Bank prides itself on personalized customer service and a competitive APY with no monthly fees. It caters to customers looking for a traditional banking experience with modern benefits. It offers different savings accounts with different APYs.
| Feature | Details |
| APY Rate | 0.80% for Preferred Savings Account |
| Monthly Fees | $10 if the minimum daily balance is not met. |
| Pros | Competitive APY. Personalized customer service. |
| Cons | It has a minimum limit of daily balance. The APY shown varies based on the deposit amount. |
Dawson Co-Op Credit Union
Dawson Co-Op Credit Union offers primary membership shares and other cooperative member benefits, making it a solid choice for residents. Despite its limited branch network, it remains a reliable local financial institution.
| Feature | Details |
| APY Rate | 2% for its primary membership shares. |
| Monthly Fees | There is no monthly fee, but the minimum balance is $10. |
| Pros | It offers competitive APY. It offers cooperative member benefits. Local expertise. |
| Cons | Minimum balance is required. Limited branch network. |
Sterling Bank
Sterling Bank provides a no-fee savings account with a decent APY. It caters to customers seeking extensive service options and reliable banking services, though it has fewer branches in rural areas.
| Feature | Details |
| APY Rate | 2% to 5%, depending on the tenure of the investment. |
| Monthly Fees | Nil. |
| Pros | No monthly fees. Decent APY range. Extensive service options. |
| Cons | Premature termination will attract a 50% charge of accrued interest. |
Digital Federal Credit Union
Digital Federal Credit Union (DCU) offers a robust digital banking platform. It is one of the largest credit unions nationwide. It’s ideal for tech-savvy customers, although its physical presence in Minnesota is limited.
| Feature | Details |
| APY Rate | 1.51%. |
| Monthly Fees | A minimum of $5 is required to open and maintain a membership. |
| Pros | Competitive APY. Low initial charges. Digital banking platform. |
| Cons | Membership fees can go as high as $35. |
Minnesota Valley Federal
Minnesota Valley Federal Credit Union is a not for-profit financial cooperative. Its members enjoy convenience and member service that’s unavailable at most financial institutions. It offers various economical financial products and services with benefits.
| Feature | Details |
| APY Rate | Its share savings account provides an APY of 0.30%. |
| Monthly Fees | A minimum of $5 is required to open the account. |
| Pros | Community-focused services. Decent APY. Low minimum opening deposit. |
| Cons | Monthly fee may be charged if the minimum balance isn’t met. |
Citizens Bank Minnesota
Citizens Bank Minnesota is a well-established community bank offering competitive rates and personalized services like loans, business checking, etc.
| Feature | Details |
| APY Rate | 3.04% for savings account. |
| Monthly Fees | Nil, but minimum balance should range between $0.01 and $4,999.99. |
| Pros | High APY. Provides personalized service. Strong local presence. |
| Cons | Balance shouldn’t exceed $4999.99. |
Mid Minnesota Federal Credit Union
MMFCU provides a checking account that pays 5% APY or cash back on purchases. It also offers perks to business banking members, such as competitive borrowing rates, payroll processing, free ACH payments, and credit card rewards. Anyone can open an account with as little as $5 and enjoy the perks of credit union banking.
| Feature | Details |
| APY Rate | 5%. |
| Monthly Fees | Nil, but anyone can open an account with 5$ |
| Pros | It provides high APY as compared to major other savings accounts. Extensive branch network. It makes banking accessible. |
| Cons | Membership fees are required to open an account. |
Conclusion
High-yield savings accounts help maximize your savings while keeping your money safe. Banks and credit unions in Minnesota have such offerings. When opting for an account, consider the provider’s monthly fees, branch locations, and if you wish to bank online or in-person. To maximize savings, choose from platforms such as Beem. Ultimately, the best high-yield savings account will depend on your preference.
Read Related Article: High-yield savings account in Kentucky.
FAQs
How do I open a high-yield savings account in Minnesota?
You can open a high-yield savings account in Minnesota by applying at a bank or credit union, either online or in-person. You will need to furnish personal identification, which will include a driver’s license or passport; proof of residence, which can comprise a utility bill; and sometimes even proof of income or employment. Some may have you do it all online, while others may make you go to their offices physically.
Are high-yield savings accounts in Minnesota insured?
Most savings accounts with high interest rates are also always insured in Minnesota. This means that your money is safe. If a bank is opening one of those accounts, it will be insured by the Federal Deposit Insurance Corporation up to $250,000 per depositor. If your account is in a credit union, it will be insured by the National Credit Union Administration for up to $250,000 per depositor. This ensures that if the bank or credit union fails, your savings up to that amount are protected, and you will not lose any money.
What are the minimum balance requirements for high-yield savings accounts in Minnesota?
Minimum balance requirements on Minnesota’s high-yield savings accounts could differ with the institution. Some accounts don’t carry any minimum balance requirements. Others might have a minimum balance stipulation ranging from $500 to $1,000 or higher. Maintain your balance to avoid monthly fees. Check with the bank or credit union to understand specific requirements.
