Current is a fintech banking app similar to banking apps like Chime or Varo. It’s one of the largest fintech apps out there – raising over $400 million in the past few years. As a fintech banking app, I think Current is pretty good. They offer a free checking account with no fees or minimum balance requirements, and they have a slick, well-designed app that’s easy to use. But the real reason I use Current is for its savings account. They have one of the best savings account options available, offering 4% interest on up to $6,000.
I’m someone that likes to keep a large emergency fund, so for years, I’ve been taking advantage of bank accounts exactly like this one, earning 3-6% interest on cash I keep in the bank. It gives me the best of all worlds. I get the safety and certainty of cash in the bank, but with high-interest rates that generally at least keep up with inflation.
Previously, Current’s 4% interest savings account was limited to targeted users, but they’ve since opened it up to everyone. Even better, they’ve recently made it so you can open three accounts each. This means my wife and I can each put away $6,000 earning 4% interest in FDIC-insured saving accounts. Combined with all of the other mega-high-yield savings accounts we have, that gives us $37,000 earning 3-6% interest in FDIC-insured savings accounts. That’s a massive emergency fund that anyone can be happy with.
In this post, we’ll take a closer look at the Current banking app’s 4% interest savings account (also called the Current savings pod). I’ll go over how this account works and why you should get it. At the end of this post, I’ll also have guides to other mega-high-yield savings accounts so you can incorporate more of these savings accounts into your own savings strategy.
What is Current?
Current is a part of the new wave of neobanks or fintech banking apps. These are mobile-first banking apps that partner with an FDIC-insured bank. With Current, your funds are held by Choice Financial Group and Metropolitan Commercial Bank, both FDIC-insured banks. That means your funds are insured and safe, just like money in any bank.
Current offers two plans. The basic plan is free. The premium plan gives you additional features, including access to up to three savings accounts per person. An interesting thing to note is that the premium plan used to charge a monthly fee, but is now free for all users. When you open your account, it might still say that the premium plan costs money, but when you sign up for it, you’ll see that it changes to say no annual fee.
There are two interesting products with Current. The first is a checking account. It has no fees or minimum balance requirements, so it’s a fine checking account if you’re someone that prefers using fintech banking apps. You can also get early direct deposit with the checking account, which is something I think all banks should do these days anyway.
The second product that Current offers – and the one I particularly care about – is the Current savings account (or savings pods, as they call it). The savings account pays 4% interest on up to $2,000. Everything above $2,000 doesn’t earn interest.
If you sign up for the premium plan (which used to cost a monthly fee, but is now free), you’ll be able to open up to three savings accounts, giving you the ability to put save $6,000 earning 4% interest.
At 4% interest, Current is one of the highest interest savings accounts available. And since Current is an easy account to open and manage, that makes it a perfect place to store at least a portion of your emergency fund or idle cash.
How to Set Up Your Current 4% Interest Savings Account
Here’s how Current’s 4% interest savings account works. To get started, you’ll first need to open a Current account. If you use a referral link, you can get $50 after you complete a direct deposit of $200 or more within the first 45 days of opening your account.
You can use my Current referral link here. Make sure you use the code CAITLINH786 when you open the account so that you can qualify for the signup bonus. The terms require you to complete a direct deposit, but data points suggest that an ACH transfer from Discover Bank or Schwab will trigger the bonus. I have a detailed post on how to earn your Current referral bonus that you should check out if you need more direction: Current Bank $50 Referral Bonus – Step by Step Guide.
When you open your Current account, you’ll have the option to choose between the basic plan or the premium plan. As I mentioned, the premium plan is now free, so you should sign up for the premium plan to gain access to three savings accounts.
After you’ve opened your Current, you’ll see an option in the app to open what Current calls a “savings pod.” This is the savings account that pays 4% interest. You have to move at least 1 cent into your savings pod to activate it.
My recommendation is to link your bank account with Current, move $6,000 into it, then put that into three savings pods. It took 5 business days for my $2,000 transfer to clear, which is longer than most other banks, but ultimately not that big of a deal.
How the Current 4% Interest Savings Account Works
The Current 4% interest savings account is a savings account that pays 4% interest on your first $2,000. As previously mentioned, you do not earn interest for amounts above $2,000. To make it clear, if you have $2,001 in your savings account, you’ll earn 4% interest on the $2,000 in the savings account and 0% on the $1 extra that you have in the account. In other words, going over the $2,000 limit does not impact the interest you earn on the first $2,000 in your account.
There’s no limit to how often you can withdraw money from your savings account, which is different from most savings accounts that typically limit you to 6 withdrawals per month. For our purposes, this doesn’t mean much, but it’s something that might matter to you depending on what you use your savings account for.
Perhaps the most interesting feature of the Current savings account is that it pays interest daily. This is different from most savings accounts which pay interest monthly. While there isn’t any real advantage to Current paying interest daily (especially if you’ve maxed out your savings account), it is nice to see the interest accrue in your account each day.
Finally, the last thing to know is that Current limits you to one savings pod on the free plan, but lets you get three savings pods under the premium plan. The premium plan is now free, so make sure you get the premium plan and open three savings pods. If you max out each one, you’ll earn $240 of interest per year.
If you’ve already opened a Current account, you can upgrade to the premium plan also. It might say that it costs $4.99 per month, but once you upgrade, you’ll see that it’s free.
Why You Should Open a Current Savings Account
I recommend everyone open a Current savings account because it’s a simple way to get much more than the typical 0.5% to 1% interest that most regular high-yield savings accounts offer.
Getting 4% interest on $6,000 means you’ll end up with $240 of interest per year. That might not seem much, but it’s important to put things in perspective.
Consider this. To get the same amount of interest in a savings account earning 1% interest, you’d need to save $24,000. When you look at it that way, I think it makes a lot of sense to take advantage of a high-yield savings account like this one.
Current has a calculator on its website that shows you the difference between what you’ll earn with Current vs. what you’ll earn in a regular savings account from one of the big national banks. The difference is pretty stark, especially when you look at how low the interest rate is at many of these big banks.
Additional Reading On 5% Interest Savings Accounts
A basic rule of personal finance is to have an emergency fund. Unfortunately, emergency funds often come with a trade-off. If you want safety and liquidity, you usually have to accept low-interest rates.
I’ve opted to go a different way by taking advantage of savings accounts paying 3-6% interest. By doing this, I not only get the benefit of a strong emergency fund, but I also get the benefit of a good rate of return. It’s more work than just opening a savings account at your bank, but I find the benefits worth it.
Right now, my wife and I have $37,000 saved between multiple savings accounts paying 3-6% interest. That’s a great emergency fund – one that I’m very comfortable with. Even better, that money is generating over $1,500 of interest each year.
If you want to learn more about my emergency fund strategy, check out my post: Where To Get 5% Interest Savings Accounts. In that post, I give a brief rundown of each of the mega-high-yield savings accounts I use.
For in-depth posts about each of those accounts, be sure to check out the following:
- Netspend Account: The Ultimate Guide to a 5% Interest Savings Account
- DCU $20 Referral Bonus – Step By Step Guide (Plus A 6% Interest Savings Account)
- The H-E-B Debit Card 6% Interest Savings Account
- Workers Credit Union Savings Account – Earn 3.56% Interest On Up To $1,000
- Service Credit Union – A Mega-High-Yield Savings Account For Up To $3,500