Upgrade Savings Review – Digital First Savings
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While most people think about checking accounts when they think about their bank account, it’s important not to neglect your savings account if you’re truly working to keep your personal finances in good order. Some people may be wary of online banking when it comes to their checking account; however, for consumers who value a high APY (annual percentage yield) for their savings, digital-first financial institutions may be worth exploring.
As you explore opening a new account for your savings, you’re likely to come across a wide range of mobile banking options. From fintech companies with free checking, credit cards, and credit lines to online banking platforms offering high-yield savings accounts with no maintenance fees, it can be easy to get overwhelmed by the array of choices you have to help your money grow.
One leader in the world of online and mobile app banking is Upgrade. But just because they have a lot to offer, does that make them right for you and your finances? Learn more about their savings options for account holders in this review.
In this article
What is Upgrade Savings?
Upgrade is a personal finance company offering an array of financial products for consumers looking to improve their financial standing. They do this by offering personal loans as well as their Rewards Checking Plus Account, which comes with a cash back debit card.
If you already have one of Upgrade’s checking deposit accounts open, you have eligibility for a Performance Savings Account with Upgrade. Banking with Upgrade for your checking and savings allows you to take advantage of the most an Upgrade account offers, including joint accounts, no overdraft fees, and cash back perks. However, you don’t need to bank with Upgrade in order to be qualifying for a savings account with them. Instead, you can open a Premier Savings Account and just fund it from an external account with a different bank.
Exceptional 4.69% APY on balances of $1,000 or more
- High-yield savings account with no monthly fees
- Secure, 24/7 mobile access to your account
- Insured up to $1 million
How does Upgrade Savings work?
Upgrade makes getting started quite simple. You’ll start by navigating to their website, where you’ll click on the “Savings” tab in the top menu. From there, you can start the application process for account opening by entering your email and clicking on the green “Get Started” button.
After you click the “Get Started” button, it will take about five minutes to finish applying for your Premier Savings account. You’ll enter a bit more information in order to complete your application, including personal details such as your name and address, as well as your social security number. The process is pretty straightforward if you’ve ever filled a form out online, but if you do have any question, you can always get help by calling Upgrade on the phone.
How much does Upgrade Savings cost?
Opening an Upgrade Premier Savings account is completely free. Upgrade has no monthly account fees, as long as you maintain the minimum balance requirement to open your account of $1,000. Of course, with their higher interest rates on savings accounts, even a minimal $1,000 deposit can grow by $277 in just five years thanks to their generous savings rate.
Upgrade Savings features
While there’s not much any bank can pack into a savings account, Upgrade definitely has some features worth highlighting. Here are some of the top perks of opening an Upgrade Premier Savings account.
Generous APY
Want to grow your savings without even trying? Taking advantage of the 5.02% APY offered by Upgrade can be a great way to kickstart your savings. With no monthly fees and regular monthly direct deposits, your savings will grow year over year, helping you to better meet life’s challenges and increase your financial security.
$0 monthly fees
A lot of other banks and financial institutions charge anywhere from $12 to $25 for their savings accounts. Upgrade has $0 monthly fees, meaning that the annual interest your account earns doesn’t get eaten up by banking fees.
FDIC insured
Just because Upgrade is an online bank doesn’t mean that it doesn’t come FDIC-insured. When you save with Upgrade, your savings account is insured up to $1,000,000, meaning you have peace of mind that your money is safe and secure.
Joint accounts
Just like Upgrade’s checking accounts, it is possible to open a Premier Savings account for two accountholders. If you and your partner are working towards a major savings goal — such as a downpayment on a new home — having the ability to open one savings account that meets your needs can be a major help.
Online savings calculator
On Upgrade’s website, users have access to a free online savings calculator. This allows you to see how certain initial deposits can accrue interest over time, growing your savings exponentially. If you want to get a good idea about how your savings may fair when opening an account with Upgrade, this kind of information can be quite helpful.
Exceptional 4.69% APY on balances of $1,000 or more
- High-yield savings account with no monthly fees
- Secure, 24/7 mobile access to your account
- Insured up to $1 million
Who is Upgrade Savings best for?
Serious savers
When it comes to making the most of your savings account, the APY plays a big role in how much you can earn in interest. With a 5.02% APY (at the time of writing) and compound interest accrued on a daily basis, saving with Upgrade can pay off over time.
Joint savers
Having a joint savings account can be great for ease of use as well as accountability. If you and your partner are saving towards the same goal, opening a joint Premier Savings account is simple with Upgrade.
Who shouldn’t use Upgrade Savings?
Consumers with short-term savings goals
If you intend to access the funds in your savings account in a year or two, the perks of a high-yield savings account will be negligible. While you may earn some money in interest, the extra withdrawal limits of some HYSAs may be more of an obstacle to your goals.
People who prefer brick-and-mortar banks
Sometimes, you just want the confidence that your bank is there. Online banking is much newer and can be a little offputting for those who have a history of personal banking relationships. While there’s nothing inherently wrong with banking with an online financial institution like Upgrade, for those that want a human element, a bank with physical branches may be preferable.
Pros and cons
Pros
- Competitive APY. Upgrade offers a very high APY compared to other high-yield savings accounts that may be available to you. Offering 5.02% APY at the time of writing, an initial deposit of $2,500 can grow by almost $700 over just five years.
- Great mobile app. A mobile app is an important tool for any bank, but especially for an online-only financial institution like Upgrade. Thankfully, Upgrade’s user experience is seamless on both the web and their mobile app. Available on iOS and Android, it’s as easy-to-use as it is user friendly.
- No monthly fees. Saving on monthly maintenance fees means you can have more of your money work for you. Especially for a high-yield savings account, every penny saved is a penny earned — literally.
Cons
- No cash deposits. In order to make deposits into your Upgrade savings account, you’ll need to set up an ACH direct deposit or a wire transfer. If you have cash you’d like to deposit, that means you’ll have to deposit it to a different bank
- No brick-and-mortar branches. Put simply: if you prefer to bank in-person, then Upgrade is not the choice for you.
- Not as useful for small balances. A high-yield savings account can be quite advantageous for larger savings balances. However, if you only have a minimal amount in your account, then the small amount of interest you earn on that savings balance may not be worth opening and maintaining a separate account — especially if you already bank with a different institution.
Upgrade Savings vs. SoFi Online Savings
Bank | Monthly Account Fees | Minimum Initial Deposit | Savings APY |
Upgrade Savings | $0 | $1,000 | Up to 5.02% |
SoFi Savings | $0 | $0 | Up to |
SoFi Savings
SoFi is another popular fintech company that offers online high-yield savings accounts for its users. While both Upgrade and SoFi have done away with monthly account fees, when it comes to the overall APY offered by each account, Upgrade has a bit of an edge on rates. While SoFi doesn’t have a minimum initial deposit requirement, they do require $5,000 in direct deposits every 30 days in order to get the best APY, which is a pretty high requirement for a lot of consumers.
Read a full review on SoFi.
Exceptional 4.69% APY on balances of $1,000 or more
- High-yield savings account with no monthly fees
- Secure, 24/7 mobile access to your account
- Insured up to $1 million
FAQs
Do I need to have a checking account with Upgrade in order to open a savings account?
No. In order to qualify for a Premier Savings account, you don’t need an existing checking account with Upgrade. However, if you’re interested in the Performance Savings account, then you will need a checking account with Upgrade, too.
Is my Upgrade Savings account FDIC-insured?
Yes. Upgrade is FDIC-insured up to $1,000,000.
Is there a maximum account balance I can have with an Upgrade Savings account?
No. There is no cap on the account balance you keep in your savings account. However, it is important to note that your savings account with Upgrade is only FDIC-insured up to $1,000,000.
The bottom line
With interest and inflation remaining higher than it has been in previous years, it’s understandable that many consumers saving their money would be looking for ways to maximize their return on savings. If you’re considering whether or not it makes more sense to open a high-yield savings account or a money market account in order to maximize your savings, it generally makes more sense to pick an HYSA if you’re looking for a higher interest rate and don’t need the ability to access the money in your account via check or debit card.
As far as savings accounts with high APYs go, Upgrade has a lot to like. With FDIC insurance and an incredibly competitive overall interest rate of 5.02%, you can easily get a lot of value out of an account with Upgrade. That being said, if you carry a lower balance in your savings account, the APY may have a negligible impact on your overall savings.
Since Upgrade is an online banking option, it isn’t for everyone. However, it has a lot of user-friendly features, including no monthly fees, that make it well worth considering if you don’t mind the idea of banking online.
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Writer
Brent Ervin-Eickhoff is a Chicago-based writer, stage director, and filmmaker with a background in digital marketing and content creation. In addition to Joy Wallet, Brent has written for Complex, Volkswagen, HowlRound, Picture this Post, and Third Coast Review, among others. He currently serves as the Associate Director of Marketing for Content Creation at Court Theatre at the University of Chicago. Brent graduated from Ball State University with Academic Honors in Writing.
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