Experian — one of the three major credit reporting bureaus — recently expanded its product offerings to include a competitive high-yield savings account.
Known as the Experian Smart Money™ Digital Savings Account, this account allows users to earn up to 4% APY on their savings — one of the highest savings interest rates available today.
“We know saving is imperative for many people and this will help make it effortless so they can reach their goals faster,” said Sean Healey, general manager of digital products, Experian Consumer Services at Experian, in a statement. “Experian is committed to giving people smarter ways to manage their money as their financial co-pilot, and now they have even more opportunities to build a financial cushion.”
But with dozens of high-yield savings accounts on the market already, how does this newest offering from Experian stack up? And could it be a good fit for you?
The Experian Smart Money Digital Savings Account offers a tiered interest rate based on Experian membership status. Premium members qualify for up to 4% APY, while other tiers earn 2% or 3% APY.
Keep in mind that making changes to your Experian membership can impact the APY, interest rate, and other features of the account. Your APY may also be lower during membership trial periods.
Regardless of membership tier, there is no minimum deposit required to open an account (though your balance must be at least $0.01 to earn interest) and no monthly fees. Interest on this account compounds daily and is credited monthly.
It’s important to note that Experian is not a bank and does not manage the savings account directly. Banking services are provided by Community Federal Savings Bank; funds in Smart Money accounts are held in a pooled deposit account at Community Federal Savings Bank and are insured up to $250,000 per account ownership category.
Even at the lowest tier, Experian’s high-yield savings account offers a competitive APY. The national average savings account rate is currently just 0.39%. Meanwhile, Experian customers can earn 5-10 times this average, depending on membership tier.
That said, there are a few other high-yield savings accounts that pay comparable rates and may even offer similar features — without the need to enroll in or pay for a membership. Examples include:
The Smart Money account has no monthly fees and no minimum balance requirements, which makes it accessible for beginners or anyone who wants a low-maintenance place to park cash. That said, because it’s integrated into Experian memberships, the account may be most appealing to people who already use Experian tools to track their credit or manage their finances in one place. Otherwise, the cost of membership may outweigh the benefits of earning a higher rate.
When choosing a high-yield savings account, it’s important to consider more than just the interest rate. You should also look closely at fees, minimum balance requirements, and any hoops you need to jump through to earn the top rate. Consider convenience factors too — such as mobile tools, transfer speed, and ATM access.
