Max’s top rate tops 5%

Today marks an exciting day in the history of banking. Today, the highest rate on the MaxMyInterest.com platform has topped 5% for the first time, proving that by creating a more efficient banking system, customers and banks can both be made better off.

As a result of our team’s hard work, millions of American households now have access to the best yields in the country on high-yield savings accounts – accounts that can be opened in less than 2 minutes without the need to fill out endless forms, set logins or passwords, or wait for trial deposits. And since Max doesn’t accept advertising or referral fees, banks are able to attract the highest quality customers at lower cost, enabling them to pass along higher interest rates to depositors.

How did we get here?

Our team has been working relentlessly for nearly 10 years to wring out every inefficiency we could from the banking system. The result: higher yields for depositors with greater safety and same-day liquidity. And for banks, lower operating costs and less risk. Today, the average interest rate paid on a savings account in America is a paltry 0.35%. But Max members are earning up to 5.01% APY on exactly the same product: FDIC-insured bank accounts.

The concept for Max dates back to the Financial Crisis when banks were failing and I had a need to find a safer place to keep my cash. The traditional brokered deposit solutions offered by the major brokerage firms suffered from several fundamental flaws. They were marketed as safe and liquid, but after looking under the hood I concluded these deposits were not necessarily fully insured nor were they fully liquid. So, I set out to find a better way to manage cash.

Discovering Higher Yield

In my search to figure out how to keep cash safe, I stumbled upon online banks, which offered higher yield than traditional brick-and-mortar banks since they didn’t have to incur the costs associated with operating branches. Since they were FDIC-insured just like any other bank account, it didn’t really matter which banks I picked. So long as I kept my balances below the FDIC insurance limit at each bank, my funds were effectively backed by the full faith and credit of the U.S. Government.

As we got started, we learned that the biggest thing standing between people and their ability to earn more on their cash was themselves. People are busy, and managing cash is never at the top of your “To Do” list. So, we invested several years to figure out how to make it easy to open multiple bank accounts at once by filling out a single form. That way, whenever we identified higher rates, our software could help customers reallocate their cash among their own bank accounts in search of the highest yield, while keeping all funds within the FDIC insurance limits at each bank.

Impact

Today, many of our clients are earning tens of thousands of dollars more in interest each year than they would if they had just left their cash in their existing brick-and-mortar bank or brokerage account. That’s enough for an extra ski vacation each year, summer camp for your kids, or a nice contribution to your niece’s college fund. Compounded annually, using Max could fully cover college tuition for your kids, buy a new car, or enable you to make impactful charitable donations to the causes that matter to you most.

Economists look for solutions that are pareto efficient, meaning that everyone is made better off as a result. In Max, we’re proud to have built a solution that helps make depositors and banks better off. It’s easy to enroll at MaxMyInterest.com to start earning up to 5.01% APY on your cash, held directly in your own FDIC-insured bank accounts. And the sooner you start, the more you can earn!