Beam Review

Beam Review: Can You Really Earn Up to 4% With This Savings Account?

Holly Johnson | The Simple Dollar

The average savings account paid out a measly 0.08% in interest as of August 2018, according to the FDIC. That rate isn’t enough to help you build real wealth; it’s not even enough to keep up with inflation. Yet, that’s what the average bank account is offering now, which means some banks do offer a higher rate of return — the best online savings accounts, in particular, routinely pay out 1% to 1.5% — while others offer even less.

But one newer online bank has promised to change things up for consumers with an interest rate that’s much higher than they can get elsewhere, even online or in a certificate of deposit. With Beam Bank Accounts, eager savers can earn between 2% and 4% on the money they save up, the company has said. The 2% rate is guaranteed, but you’ll have to do a little work to get the higher rate. Is it worth it? We’ll let you decide.

  • How Does Beam Work?
  • How Can Beam Afford to Pay More Than Other Banks?
  • Should You Consider Beam?
  • Why You Should Wait on Beam
  • The Bottom Line
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Beam also claims that traditional banks earn 4% to 5% on your deposits, despite offering you only paltry returns in exchange. CFA Sam Huszczo of SGH Wealth Management said this is mostly true, since rising rates over the past two years have helped banks boost their “net interest margin.”