Milli High-Yield Savings Account: Features, Rates, and Benefits
Explore the features, rates, and benefits of the Milli High-Yield Savings Account to understand how it supports your financial goals with competitive returns.
A high-yield savings account helps grow your money while keeping it accessible. Milli, a digital banking platform, offers a competitive interest rate and modern features for convenience.
Eligibility Criteria
To open a Milli High-Yield Savings Account, applicants must be at least 18 years old, have a valid Social Security number, and be a U.S. citizen or permanent resident with a verifiable U.S. address.
The application requires personal details, including full name, date of birth, and contact information. A government-issued photo ID, such as a driver’s license or passport, is needed for identity verification. Milli may conduct a soft credit inquiry through ChexSystems or a similar service to review banking history. While this does not affect credit scores, a history of overdrafts or account closures could impact approval.
There is no minimum deposit required to open an account, but maintaining a balance is necessary to earn interest. Accounts left at a zero balance for an extended period may be closed.
Interest Rate and Compounding
Milli’s high-yield savings account offers a fluctuating annual percentage yield (APY) based on the federal funds rate. This rate is higher than traditional savings accounts, making it a strong option for growing savings.
Interest is compounded daily and credited monthly, meaning each day’s interest calculation includes the previous day’s earnings. This accelerates growth compared to accounts that compound less frequently. For example, a $10,000 balance at an APY of 4.50% would generate about $1.23 in interest per day, totaling roughly $460 over a year, assuming no withdrawals or rate changes.
Regular contributions enhance earnings. A saver who deposits an additional $200 per month benefits not just from the base interest but also from compounding on the growing balance, significantly boosting long-term savings.
Deposit and Withdrawal Options
Milli allows deposits and withdrawals through ACH transfers, with options for one-time or recurring transfers. Direct deposit is also available, enabling automatic paycheck contributions.
Mobile check deposits are supported through the Milli app, allowing users to add funds by photographing a check. Standard hold times apply, and deposit limits may be in place.
Withdrawals are processed via ACH transfers, typically taking one to three business days. Milli does not offer ATM access or a debit card, so funds must be transferred to a linked external account before being withdrawn as cash. This setup encourages savings while maintaining accessibility when needed.
Account Fees
Milli’s high-yield savings account has no monthly maintenance fees or minimum balance requirements. ACH transfers are fee-free, but expedited transfers or fees from external banks may apply.
Tax Considerations
Interest earned on a Milli High-Yield Savings Account is subject to federal, state, and local taxes. Since savings account interest is not tax-advantaged, it must be reported in the year it is earned.
Milli provides an IRS Form 1099-INT to customers who earn $10 or more in interest during the tax year. Even if earnings fall below this threshold and a 1099-INT is not issued, individuals must still report the income. For example, someone in the 22% federal tax bracket who earns $500 in interest would owe $110 in federal taxes.