When we launched Max back in 2014, the premise was very simple: online banks have lower operating costs, and so should be able to pay higher yields to customers than their brick-and-mortar counterparts.  The market dynamics were very similar to what we observed in the word of e-commerce: eliminate storefronts, and goods naturally cost less.  In the case of banking, rather than lower prices, online banking makes possible higher interest rates.  Back then, the average Max member was earning 0.88%, or 0.76% more than the national savings average.  Not bad.

Over the years, we’ve found ways to remove many of the frictions that keep people from earning more on their money.  With the Max Common Application, it’s possible to open multiple high-yield savings accounts by filling out a single form.  With our newest platform banks, we’ve been able to eliminate trial deposits, making it possible to link new savings accounts to your existing checking account instantly.  And for clients who join Max through their financial advisors, we can even eliminate form filing.  Imagine opening a bank account without ever needing to type in your name and address.

As rates have risen, Max members are earning even more.  Today, the highest yield on the Max platform is 2.46% — that’s not only higher than the highest nationally-advertised savings rate in the country, but it’s also a staggering 2.36% higher than the national savings average, which stands at just 0.10%.

How do we do it?  By eliminating customer acquisition cost for banks.  Most banks have to pay hundreds of dollars to attract each new customer account, through a combination of advertising and referral fees.  Who pays for this expense?  You, the depositor, by accepting a lower yield on your cash.  By contrast, Max does not accept advertising or referral fees from banks.  Not only does this eliminate potential conflicts of interest, but it also means that you can earn higher yield on your cash.

Take a look at your existing checking and savings accounts, or put a magnifying glass to your brokerage account statement to see how much you’re earning on cash.  If it’s lower than 2.46%, it might be worth taking a few minutes to see if Max could be right for you.