Our quick take: The Laurel Road High Yield Savings Account combines a high APY with the convenience of online banking. However, the lack of physical branches makes it a tough sell for consumers who routinely need to make cash deposits.
Pros:
- Competitive 5.00% APY
- No minimum deposit or monthly maintenance fees
- Deposits are FDIC insured up to $250,000
Cons:
- No physical branch locations for cash deposits
- Customer support is limited to five days a week
Best for: People who want a high-yield savings account from a web-based bank with one of the higher interest rates currently available.
What is the Laurel Road High Yield Savings Account?
The Laurel Road High Yield Savings Account is an FDIC-insured savings account that offers a competitive interest rate and no monthly fees. As of this writing, the APY is 5.00%, which is one of the highest yields on the market. Interest compounds daily and is paid out monthly.
Further, the Laurel Road High Yield Savings Account has no minimum deposit requirement, making the high APY accessible to most US consumers. The low barrier to entry makes this an excellent savings account for those who don’t mind an online-only banking service.
Laurel Road is an online bank with no physical branches, meaning you can’t make any cash deposits into your account. If you need to deposit cash, you’ll have to deposit it into another bank account and transfer the funds into your Laurel Road savings account. Alternatively, you can deposit checks into your savings account or mail checks to Laurel Road’s P.O. box. These options may be less than optimal for some customers, though others may not mind it since the APY is so high.
Laurel Road is a subsidiary of KeyBank N.A., an FDIC-insured bank. This account is ideal if you want to maximize your savings and don’t mind some of the inconveniences associated with it.
Advantages of the Laurel Road High Yield Savings Account
The primary advantage of the Laurel Road High Yield Savings Account is the high APY, with no minimum deposit required. Few banks offer a 5.00% APY, making Laurel Road’s savings account an attractive option. Virtually anyone can open a Laurel Road High Yield Savings Account since there is no minimum balance. Deposits are FDIC insured up to $250,000, meaning your money is protected in case of a bank failure.
You can fund your savings account through transfers from another bank, domestic wire transfers, direct deposit or mobile check deposits. You can also mail a check to the bank, though that option may take longer than electronic transfers.
Disadvantages of the Laurel Road High Yield Savings Account
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There are several drawbacks to the Laurel Road High Yield Savings Account. For starters, the bank operates online only, with no physical branches. You’ll need to transfer money from a different bank to fund your savings account with Laurel Road. This shouldn’t be a hindrance if you maintain a checking account with a bank that has physical branches. However, it could be tedious if you’re a business owner or service worker who often deals with cash. Putting cash into your savings account will require a few extra steps if you decide to choose Laurel Road.
Laurel Road also has limited customer service hours compared to other banks. The customer service line is currently open Monday through Friday from 8:00 a.m. to 9:00 p.m. (ET). Meanwhile, Bank of America and Capital One offer phone-based support seven days a week.
If you have an issue with your account on Saturday, you might find it tedious to wait two days before you can speak to a customer service agent about it. That said, savings accounts are low-maintenance, so these limited service hours may not be a big deal.
Should you open a Laurel Road High Yield Savings Account?
Whether or not you should open a Laurel Road High Yield Savings Account depends on your individual financial situation and goals. It could be a great option if you want a high APY that’s well above most traditional banks offer. If you don’t mind the lack of physical branch locations, then this could be an excellent savings account choice. Considering the account has no monthly fees or minimum balance requirement, there’s little risk in opening one.
However, if you need a bank with physical branches that allow cash deposits, then you may want to steer clear of Laurel Road. The inability to deposit cash into a savings account could create barriers to meeting your savings goals. You may want to opt for a savings account with a major bank like Bank of America, Chase or Capital One to get access to a vast network of branches and ATMs where cash deposits are accepted.
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