Bankrate’s Experience On Financial Advice And Reporting
At Bankrate, we regularly survey approximately 4,800 banks and credit unions in all 50 states to provide you with one of the most comprehensive comparisons of interest rates. All of the CD accounts below are insured by the FDIC at banks or the NCUA at credit unions. When selecting the best CD account for you, look for the highest yield while also considering introductory rates, minimum balances and accessibility.
We strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. The top banks listed below are based on factors such as APY, minimum balance requirements and broad availability.
For Some Of Your College Savings
When saving for a childs education, its best to start early and save often. College savings plans like the 529 can be a great solution, mainly because money grows tax-free in a 529. It also isnt taxed when the money is taken out to pay for college.
But college tuition costs can sneak up fast, and a high-yield savings account can be a solid alternative in last-minute situations when saving is essential.
In order to successfully use a high-yield savings account for college tuition, youll need to set a savings goal and calculate the monthly investment needed to hit that goal.
For example, lets say you need $50,000 for college tuition and your child is in seventh grade. If you open a savings account yielding 0.6 percent APY, youd need to deposit around $806.43 per month in order to hit your goal by the time he or she heads off to college. Thats with an initial deposit of $1,000.
You can use Bankrates savings goal calculator to create a timeline for your savings goals.
How To Make Deposits And Withdrawals From An Online Savings Account
For the most part, online banks don’t maintain branch locations where you can deposit or withdraw money. But these institutions still provide a number of ways to perform these basic banking tasks. Here are some of the ways you can make deposits into an online savings account:
- Direct deposit
- Electronic funds transfers
- Wire transfers
Often, youre able to withdraw money from a savings account whenever youd like because these accounts are liquid unlike CDs, which are time-deposit accounts and may have early withdrawal penalties. Check with your bank to see the methods for withdrawing funds or if there are any restrictions.
Some banks may give you an ATM card and others may provide a debit card for ATM access. Depending on the bank, you may be able to electronically transfer the money to an account that you hold at another bank. Other possible options are accessing your money via a cashiers check or official bank check or by initiating a wire transfer, which generally is the most expensive option of those previously listed.
Here are some of the ways banks typically allow you to make withdrawals from an online savings account:
- ATM withdrawals
- Wire transfers
- Requesting a mailed check
Savings accounts are limited by Regulation D, a rule that prevents you from performing more than six transfers or withdrawals from the account per calendar month or statement cycle of at least four weeks.
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Best Alternatives To Bank Savings Accounts With Higher Returns
Investors usually think that keeping money in a savings account is safe and ensures liquidity to use their funds. The returns from savings accounts do not help in the long term. However, there are other alternative investment options that can offer higher returns than savings accounts. Also, the risk associated with them is lower and more tax efficient. The following are the best alternatives to savings accounts with higher returns.
The objective of parking money in a liquid fund rather than a savings account is to earn higher returns. These funds invest in debt securities with maturities up to 91 days. Due to the short term maturity of securities, they have the least amount of risk. Also, the withdrawal amount is credited to the account within a day. Thus, these funds are ideal for investors who wish to park their excess cash for a short period of time.
Ultra Short Term Funds
If the investor does not require funds for 2-3 months, they can park their idle money in the ultra short term funds. They invest in securities with short term maturity. Due to the low maturity duration, these funds are slightly riskier than liquid funds. However, they are still one of the low-risk category funds and can generate better returns than savings bank accounts. Therefore, these funds are best to park money for a couple of months, providing easy liquidity to investors. The withdrawal amount is credited to the account within one business day.
Certificate of Deposits
More Features Of Our High
No minimum balance and no monthly maintenance fees
FDIC-insured for your peace of mind
Easy online account management
Have questions about our High-Yield Savings Account?
Our normal business hours are 9 a.m. to 6 p.m. ET Monday through Friday.
1. Advertised Annual Percentage Yield for the Sallie Mae High-Yield Savings Account is variable and may change after account opening, applies to personal accounts only, and is accurate as of 06/27/2022. Fees could reduce earnings. Please refer to the Account for details.
Deposit products are offered through Sallie Mae Bank, Member FDIC.
SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION.
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Online Savings Accounts Versus Traditional Savings Accounts
One big difference between online and traditional savings accounts is the APY offered. Online banks usually offer a much more competitive yield. Brick-and-mortar banks tend to offer something closer to the national average, which is currently 0.06 percent APY, or they offer something thats nearly nothing at 0.01 percent APY. Another difference is physical branch access. Online banks offer savings accounts that give customers the opportunity to bank from anywhere at any time. But these online institutions typically dont have any branches so you cant visit them in person.
That differs from traditional savings accounts offered by large and local brick-and-mortar banks and credit unions or traditional financial institutions that operate physical branches with set hours of operation.
Savings account pros and cons: Online bank vs. brick-and-mortar bank
Best Bank For Savings Account With Highest Interest Rates
The savings account is the basic type of account that allows people to deposit money and keep it safe. It is a liquid instrument as individuals can withdraw money anytime at their convenience without any restrictions.
There are multiple banks that offer savings account facilities in India. To know the best savings account, it is essential to compare the interest rates and their features like the affordable minimum balance requirement and flexibility to make deposits and withdrawals. Also, they should check some additional perks like the availability of bank branches in the city of their residence, facilities like mobile and internet banking, the convenience of ATM withdrawals and instant assistance. Therefore, if these criteria are fulfilled, individuals can choose any bank account based on their convenience. Here is a list of best banks for savings accounts with the highest interest rates.
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How Do Banks Make Money On Savings Accounts
Banks offer savings accounts to assist their profit-making objective. Since one of the primary ways a bank generates revenue is to make loans to consumers and businesses and collect the resulting interest payments, they require a supply of funds in order to make those loans.
Offering checking, savings, money market, and certificate of deposit accounts is one way banks attract the capital they need in order to lend money to other customers. It’s also how they can enhance their profit-making ability, as the interest rates banks pay on deposit accounts are lower than the rates they can collect on loans. As we’ve pointed out, most checking accounts pay no interest at all. And the national average rate for savings accounts was just 0.06% in November 2021. So when a bank can extend an auto loan for 5% or 6% or a credit card rate of 15% to 25%, it generates revenue on the difference between the rate of interest paid and interest earned.
High Rate: Popular Direct
Overview: A Popular Direct Ultimate Savings account is opened through Popular Bank. Popular Bank is an FDIC-insured bank that was established in 1999, according to the FDIC.
Perks: Popular Direct offers a competitive APY on its Popular Direct Ultimate Savings account, which debuted in July 2019. You can deposit a check into your Popular Direct Plus Savings account using your mobile device.
What to watch for: Popular Direct has a higher minimum balance requirement than some other banks. But there are also banks that have higher deposit requirements as well. ATM cards are not available for a Popular Direct savings account, but you can make an external transfer via ACH.
There are some fees to be aware of. Theres a $25 fee if you close your account within the first 180 days. Also, if your balance goes below $500 for any day during your statement cycle, theres a $4 fee.
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Best For Avoiding Fees: Discover Online Savings Account 090% Apy
on Discover Banks secure website
With Discover Bank, you can avoid fees on items like monthly maintenance, checks, incoming wire transfers , returned deposited items, excessive withdrawals and insufficient funds. The only service charge youll run into is a $30 fee to send a wire transfer.
No fees means your Discover Online Savings Account gets to earn 0.90% APY undisturbed. Theres no minimum balance required to earn interest, nor is there a minimum deposit needed to open the account. You can access your accounts online and through the mobile app available in the App Store and Google Play. The mobile app also offers check deposit.
Known for its credit cards, Discovers first card was used in 1985. That same year, Discover acquired Greenwood Trust Company, which officially changed its name to Discover Bank in 2000.
Finding The Best Savings Accounts
The best savings accounts are those which grow your money, give you the freedom to do with it as you like and dont cost a lot to maintain. At SmartAsset, we analyzed many different savings accounts to find the top overall options, as well as others which are the best for people in specific situations.
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Comenity Direct 055% Apy $100 Minimum Opening Deposit
Overview: Comenity Direct is an online bank that offers both a high-yield savings account and five terms of CDs. Comenity Direct launched those savings products in 2019.
Perks: The high-yield savings account requires just $100 to open.
What to watch for: Official checks cost $15 each and theres a $5 fee for each paper statement.
Why Trust Our Recommendations
Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product or account a high APY, for example we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.
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Eq Banks Savings Plus Account
- Interest Rate1.50%**Interest is calculated daily on the total closing balance and paid monthly. Rates are per annum and subject to change without notice.No minimum balance required
- Bonus Offer$150**To qualify for this promotion, users will need to complete the following steps: 1. Sign up for an individual EQ Bank’s Savings Plus Account.2. Switch your eligible recurring payroll direct deposit to EQ Bank and receive the first deposit within 60 days of opening your Savings Plus Account.3. Keep it going for at least 3 straight months. Promotion expires on June 15, 2022.
- Monthly Fee
- Our TakeWhy we like it
- EQ Banks Savings Plus Account is the digital-first banks flexible hybrid chequing and savings account. It features a high interest rate, no monthly fees, and free and unlimited transfers.
- The bank also offers joint accounts, US dollar accounts, TFSAs, RRSPs, and GICs.
Our pick for a low-fee TFSA with investment portfolio options
Minimize Your Checking Account Balance
As low as savings account rates may seem, the best ones are still much better than most checking account interest rates. Therefore, you may want to keep a tighter rein on your checking-account balance so more of your money can earn higher interest in a savings account.
One approach you can try is to have your paycheck directly deposited into savings rather than checking so you can have more money earning a better interest rate for as long as possible.
Low interest rates can be discouraging for savers. However, with the rate of inflation now higher than savings account rates, you need to protect the value of your money by improving your saving habits and shopping for the best savings interest rates you can get.
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Ease Of Use And Accessibility
- User-friendly mobile app and online platforms
- Transparency with crucial information and terms and conditions
- Accounts with mobile accessibility were rated higher than those without
- Options to withdraw or deposit their money by electronic transfers, wire transfers, mailed checks or linking to external checking accounts
- ATM withdrawal options are a plus. Most online banks require that you open a checking account with them to access your money from an ATM.
Alliant Credit Union 055% Apy $5 Minimum Opening Deposit/$100 Minimum For Apy
Overview: In 1935, whats now Alliant Credit Union was founded as the United Airlines Employees Credit Union. Alliant currently has 500,000 members.
Perks: You wont pay a monthly maintenance fee as long as you choose online statements.
What to watch for: Only balances of $100 or more earn interest.
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Kotak 811 Edge Digital Savings Account
Kotak Banks 811 Edge digital savings account is a full-service digital banking ecosystem on mobile. This has been designed with the idea of simplicity and ease of use for customers. It offers a complete paperless account opening process with a minimum balance requirement. Besides this, it offers a free platinum debit card, free online fund transfers, virtual debit card and more benefits. Some of its features are
- Average Monthly Balance: Rs.10,000
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Big 5 Bank High Interest Savings Accounts
How about the big banks and their savings interest rates?
Unfortunately, the big 5 banks in Canada i.e., RBC, CIBC, TD, BMO, and Scotiabank mostly offer rates that are ridiculously lowthink 0.01% 0.05% in some cases.
Apparently, if you want to earn returns on your deposits and stand a chance against inflation, you will need to look elsewhere for competitive returns.
You can learn more about what the big banks offer below:
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Should You Open A New Savings Account In 2021
Savings accounts are a great way to separate your money, no matter what the yield is. Right now, rates are much lower than they were in early 2020 and 2019 at online banks and they are expected to remain that way for a while. You cant control that were in a low-rate environment. But you can try to seek out a competitive yield. Even when the difference seems miniscule, it will still help you. For instance, $10,000 for a year in a savings account at 0.55 percent APY would earn $54 more than it would at 0.01 percent APY. Note that since savings yields are usually variable, the high-yield savings account probably wont be the same APY for the whole year. This also assumes that you never withdraw money from the account.
How To Choose A Savings Account
Savings accounts are offered by banking institutions across Canada, but that doesnt mean you should pick one at random. Instead, compare a few different features to ensure you get the best option to suit your needs. Here are some things to consider when choosing a savings account.
How much interest will you earn on the money in your savings account? Keep in mind that some banks offer promotional interest rates that may seem enticing at first, but drop down to a much lower rate after a few months. Depending on your savings goals, this type of introductory interest rate might work for you. However, its often better to look at the best regular interest rate and not focus solely on the promotional rates so you can best anticipate the annual percentage yield , which shows how much interest you will earn over a year.
Some savings accounts in Canada require that you keep a minimum balance in your account at all times if you want to earn interest. For example, your account might require a minimum balance of $1,000. If you can be sure you will always have that minimum amount in place, thats fine. However, it might be a better idea to look for an account with no minimum requirements for peace of mind that you can always earn interest no matter your balance.
Youll want to make sure it is easy to withdraw your money when you need it. Choose a savings account thats convenient by considering your banking preferences.
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