Introduction
As of this writing, UFB Direct's savings account offers the highest annual percentage yield (APY) of any institution in the country at 2.61%. Compare that to the national average for savings accounts reported by the FDIC of 0.13% APY, and you'll see that this is just one of the top rates we've ranked below. 1 Based on our weekly analysis of savings account rates from over 200 banks and credit unions across the country, we found that the account with the tenth-best rate paid an annual percentage yield of 2.25%. Following our partners' best bank savings accounts rate is a full ranking of the best savings account rates in the country.
Live Oak Bank
In Wilmington, North Carolina, Live Oak Bank has been serving customers online since 2008. You can open a high-yield savings account or a certificate of deposit, but there is no checking account or ATM access. Although Live Oak Bank doesn't offer a wide variety of personal banking products, its rates are always competitive with the best apps. Using the Live Oak app, you can view your external bank accounts, which can streamline your regular financial management.
Capital One
Capital One offers various banking and lending services and credit card products. Capital One provides various banking services, including the brand-new 360 Performance Savings account (launching in September 2019), CDs, a savings IRA, and checking accounts.
Salem Five Direct
Massachusetts Salem Five bank has an online branch called Salem Five Direct. The Bank features high-yield savings accounts in addition to the standard checking account and certificate of deposit options. To open a savings account and start accruing interest, you'll need to put in at least $10.
Best Bank
There are two different kinds of savings accounts available at Bask Bank. Customers can earn a competitive yield with no minimum balance and monthly maintenance fee on their Interest Savings Account. Your account will be closed if the opening deposit is not made within the first 60 days. Bask Bank also provides a Mileage Savings Account that awards miles at the end of each month proportional to the account holder's average monthly balance for those interested in accumulating American Airlines miles. Bask Bank's $35 wire transfer fee is higher than the average domestic fee charged by other banks.
UFB Direct
UFB Direct operates as Axis Bank's online banking service. The only deposit options are high-yield savings and money market accounts. To participate in the high-yield savings program, no minimum deposit or balance and no monthly maintenance fees are required.
Bread Savings
A former name for Bread Savings was Comenity Bank. Bread Savings is a division of Bread Financial. It also provides banking services such as loans, a cash-back credit card, and more, in addition to its high-yield savings accounts and certificate of deposit products. To earn interest on your savings with Bread Savings, you'll need to make a minimum deposit of $100.
Prime Alliance Bank
In 2004, Prime Alliance Bank opened for business. The company provides a full range of deposit products, from checking and savings accounts to money market funds and certificates of deposit. It is headquartered in Utah but serves customers across the country. While Prime Alliance has a single branch in Utah, most of the Bank's savings account clients access their accounts via the Internet or mobile banking apps.
Pros
- You may accumulate interest on your investment. Money put away in savings can accrue interest and grow over time.
- Investing with us, you can rest assured that your funds are safe. Your savings are insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration, as required by law.
- Facilitates savings for the long-term future. Savings accounts provide a risk-free home for your savings, and many checking accounts have convenient options for automating transfers to savings accounts.
Cons
- Limits on withdrawals could be in place. Many financial institutions still place monthly limits on the number of times you can withdraw from or make deposits to a savings account, even though Regulation D, which imposed those limits, has been temporarily rescinded.
- Potentially low-interest rates. There is a wide range of interest rates available for savings accounts, and some accounts' returns may be lower than those offered by other options, such as investments.
Conclusion
A savings account can help you earn more money by keeping all of your funds in one place, can help you keep your day-to-day spending money separate from your long-term savings, and can help you avoid spending your savings on things you didn't budget for. Many online banks offer high-yield savings accounts that pay interest rates ten times the national average. You can deposit checks and withdraw cash from your savings account electronically, and some banks even let you do both from the convenience of your mobile device.
In the case of banks, your money is protected up to $250,000, and in the case of credit unions, your money is protected up to the same amount by the National Credit Union Administration. 23 Furthermore, federal law mandates that savings accounts have a monthly withdrawal cap of six transactions. 4 In light of the COVID-19 pandemic, a temporary rule was passed allowing more than six monthly transactions.
