Porte, the 3% APY savings account – What’s the catch?

High-yield savings accounts (HYSA) do not feel high-yield anymore. The national average APY for US savings accounts is 0.06% according to the FDIC. 0.06% APY means that for every $10,000 you have tied up in a savings account, you are paid $6 per year. Obviously 0.06% will not protect you from any level of inflation, which means that these savings accounts are useless.

Other online savings options, such as Ally bank, offer higher savings rates of a whopping 0.5%; however, this still isn’t much return on your savings. Previously, I wrote about a new type of savings account, Yotta, that offered 1-2% APY on average through a lottery-based prize system (0.2% APY plus lottery winnings averaged out to 1-2% APY). Recently, I was referred to Porte, an online savings account that touted a true high-yield of 3% on its FDIC insured savings account.

Porte offers other benefits on top of the 3% APY. First, you can create “virtual cards” for more secure shopping online. Second, you get “perks” that offer you cash back options based on how you shop with their debit card. Third, Porte offers financial tools, including a budget tracker, a true debt calculator, and a savings calculator, to help you take control of your money and plan your financial future.

Unfortunately, Porte does have more strings attached than Yotta to earn your 3% APY. Currently, you must have a direct deposit of $1,000 within one month to get your 3% on up to $15,000. Without meeting the direct deposit requirement (or on amounts over $15,000) you can only earn 0.2% APY.

In October, Porte announced that, as of January 1, 2022, more strings will be added to earn your 3% APY. Starting next year, every quarter you will need to meet the following requirements: (1) $3,000 in Qualifying Direct Deposits, and (2) 15 Qualifying Debit Card Purchases from the Porte savings account. This breaks down to $1,000 in direct deposits each month and 5 debit purchases per month on average.

While these requirements are more than Yotta, the requirements are standard for many HYSAs, and an upside (compared with Yotta) is the APY is both higher and fixed. Plus you get the other benefits that Porte offers. Personally, I will stick with Yotta due to the hands off nature of the account, despite the lower APY.

Let me know in the comments below what you think of these savings options.

Referral links and perks below for Porte and Yotta.

Porte: $50 for signing up and direct depositing at least $500

Yotta: 100 free lottery tickets for trying out the app.

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