Best High-Yield Accounts for Nonprofits in 2024
I’m sure you already realize that finding nonprofit-specific high-yield savings accounts is challenging. Large banks often do not offer such accounts, and those that exist typically come with low interest rates. Despite this, it's crucial for nonprofits to explore available options and consider accounts like Devote’s, which are designed to meet their unique needs.
Can Nonprofits Have a Savings Account?
Absolutely! Not only can nonprofits have savings accounts, but it is also strongly advised.
Unexpected financial downturns, like a global pandemic, highlight the necessity of having a financial cushion. A savings account can provide this security, ensuring that your nonprofit remains operational during tough times.
Moreover, consider the risks associated with bank failures and the FDIC insurance limit of $250,000. By choosing a savings account with higher insurance limits, you can protect your organization's funds and ensure financial stability.
Choosing the Best Banking Solution for Nonprofits
When selecting a banking solution for your nonprofit, several key factors should be considered. One primary objective of having an emergency fund is to earn interest on it, turning idle funds into revenue. Many banks offer compounding interest, allowing you to earn interest daily, thus increasing your total balance more efficiently.
Here are some considerations to keep in mind:
Interest Rates: Look for institutions offering competitive annual percentage yields (APY).
Security: Make sure your funds are federally insured.
Fees: Be aware of monthly fees, overdraft fees, deposit fees, and minimum balance requirements.
Account Requirements: Consider initial deposit requirements and transaction limits.
Choosing the right high-yield account is crucial for nonprofits aiming to maximize their savings and generate additional revenue for their missions. Below, we explore some of the top options available, providing a factual overview to help you make an informed decision.
1. Devote High-Yield Account
Devote’s high-yield account is tailored specifically for nonprofits, offering several unique benefits:
Interest Rate: Competitive 4.10% APY.
FDIC Insurance: Coverage up to $50 million, providing unparalleled security.
Free solution: No fees of any type to open and maintain the high-yield account.
Integrated Financial Platform: Connects with the Devote suite of products for better control over the entire financial path, from donations coming in to expenses going out.
Learn more here.
2. Atmos Financial High-Yield Savings
Atmos Financial offers a high-yield savings account with an emphasis on sustainability and supporting environmental causes.
Interest Rate: Up to 4.00% APY depending on the balance.
No Fees: Free to open and maintain, with no hidden charges.
Sustainability Focus: Funds support renewable energy projects.
3. Axos Bank High-Yield Savings
Axos Bank provides a high-yield savings account that offers competitive interest rates and easy access to funds, making it a strong option for nonprofits.
Interest Rate: Attractive rates, starting at 3.30% APY.
No Monthly Maintenance Fees: Keeps costs low for nonprofits.
Minimum Balance: None required, making it accessible for organizations of all sizes.
4. Local Banks and Credit Unions
Local banks and credit unions often provide competitive high-yield savings accounts tailored for nonprofit organizations. These institutions offer personalized service and community support.
Interest Rate: Typically around 0.01% - 0.46% APY.
Community Support: Localized focus on community and nonprofit support.
Personalized Service: Dedicated support teams familiar with local nonprofit needs.
Conclusion
Selecting the right high-yield account can significantly impact a nonprofit's financial health. Each option listed offers unique benefits tailored to the needs of nonprofit organizations. Devote’s high-yield account stands out with its specialized features designed to support the financial management and growth of nonprofit funds. Consider your organization's specific needs and priorities when choosing the best option for your high-yield savings.
