The recent federal funds rate increases have made it much more expensive to borrow money. However, it has been a real boon for savers. Upgrade, for instance, has increased the maximum APY for its savings accounts from 4.00% APY to 4.13% APY for its Premier Savings product.
Borrowers have enjoyed historically low interest rates for years. But the time for savers has finally come. Federal Reserve officials raised the federal funds rate again on December 14th, 2022, for the seventh time this year. The rate increased by half a percentage point, which nudged financial institutions to increase the interest rates they pay savers on deposit accounts.
Premier Savings offers 4.13% APY
Upgrade increased the APY on its high-yield savings account from 4.00% to 4.13%. Upgrade Premier Savings is a high-yield savings account that offers a competitive annual percentage yield (APY) and allows customers to earn more than with most checking and savings accounts. In addition to a high APY, Premier Savings does not charge monthly or transfer fees and offers same-day transfers of $100,000 or less from other banks. Customers can easily combine the cashback rewards of Upgrade’s Rewards Checking account.
Note that the Annual Percentage Yield (APY) for the Premier Savings account is variable and may change at any time. There is no minimum balance to open your account, but you will only earn the APY on days when the closing balance of your Premier Savings account is or exceeds $1,000. On days when the account closing balance drops below $1,000, the APY will be 0%.
A 4.13% APY is very high compared to the average rate on savings accounts (0.30% APY as of December 19, 2022). However, there are other savings accounts with similar rates that don’t have a minimum balance.
Upgrade Rewards Checking also offers up to 2% in cash back
It’s easy to connect your savings account with an Upgrade checking account and also rewards on your purchases as well as your savings. Upgrade Rewards Checking does not charge any ATM, monthly, annual, or transfer fees, but gives up to 2% cash back on common everyday expenses and 1% on all purchases.
Earn lower rates on new Upgrade loans and cards
Having Upgrade’s savings and checking account doesn’t only allow you to get higher rates on your savings and cash back on your purchases. You can also get an interest rate up to 20% lower on your next loan or credit card through Upgrade if you maintain an active Rewards Checking account.
Upgrade also offers personal lines of credit, which combine some of the benefits of credit cards and personal loans.
Key takeaways
- Upgrade increased its rates on its savings accounts to 4.13% APY.
- Upgrade makes it easy to combine the benefits of a cash back checking account and a high-yield savings account.
- Having a deposit account with Upgrade can allow you to lower your interest rate on personal loans and credit cards by up to 20 percent.
About Upgrade, Inc.
Upgrade, Inc. is an American fintech company that was founded in 2016. It has raised $600 million in equity funding and made over $10 billion in loans since its launch in 2017. Upgrade is headquartered in San Francisco, California, but has offices in Phoenix, Arizona, and Montreal, Quebec, Canada.
In addition to checking and savings accounts, Upgrade offers credit cards, personal loans, and personal lines of credit. Premier Savings accounts are provided by Cross River Bank, which is an FDIC Member. This means deposits are insured up to $250,000 per person by the Federal Deposit Insurance Corporation (FDIC).
Pro Tip
A good saving account provides competitive annual percentage yields (APYs) and doesn't charge fees. SuperMoney reviewed hundreds of savings accounts and these are our top picks of the best savings accounts on the market
