FAQ

Savings rates may vary by bank and account type. Whether in a savings account or money market account, deposits that earn a higher savings rate will grow at a faster pace. Account holders are subject to a six-withdrawal limit per month and deposits are covered under FDIC insurance up to $250,000 per depositor, per insured bank, for each ownership class.

1 Why do savings rates vary so much?

The type of bank, type of interest-bearing account and deposit balance can play a role in savings rates. Online savings accounts and money market accounts usually offer higher savings rates because online banks have lower expenses from not having to maintain brick-and-mortar locations. Savings rates can also differ by account balance -- more deposits may qualify for a higher savings rate.

2 What is the difference between a savings account and a money market account?

Like a savings account, a money market account holds deposits that earn interest. However, money market accounts usually require higher balances to avoid monthly fees, if any. Because of these deposit requirements, money market accounts tend to carry higher savings rates compared to savings accounts.

3 What does annual percentage yield (APY) mean?

Savings rates are displayed in terms of APY to indicate the effective annual-interest return when taking the effect of compounding interest into account (assuming that the deposit balance does not change. However, fees may lower the effective savings rate in savings accounts and money market accounts.

4 How do I choose the right savings account?

Begin your search at your current bank. Even if you already have a savings account with them, ask about other products that may better suit your needs. Do not assume that the accounts you have now are best for your situation.

You should also compare rates for a high-yield savings account using our savings calculator. Some products may beat your current bank’s rates, but do not assume the highest rate is the best option. You have to make sure you choose the bank that will best fit your banking habits. You may be comfortable with your own bank and not want to start a new relationship, even if you do find a slightly higher interest rate.

5 Why should I open a savings account?

You may want to start saving for a new TV in a few months, a new car in a few years or to send your kids to college further down the road. All of them require some sort of savings plan.

An emergency savings account is another vital part of your overall financial health. Some experts advise setting aside $1,000. Others recommend holding the equivalent of three months salary in savings. Some insist that up to one year’s salary is crucial -- particularly to protect against unemployment.

Comments & Questions

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MyBankTracker
Wednesday, 06 Jul 2016 3:56 PM
<p>If you're looking for one-stop solutions, you can go with accounts offered by Ally Bank, Capital One 360, or Radius Bank.</p><p>Each of them offer an online savings account and interest checking account that have very competitive interest rates and no monthly fees.</p>
MyBankTracker
Wednesday, 06 Jul 2016 3:34 PM
<p>carlm, what type of deposit account were you interested in? Radius offers checking, savings, and CDs -- most of which pay interest on deposits.</p><p>You can see the entire rate list for Radius Bank accounts here: <a href="https://www.radiusbank.com/personal/checking-and-savings" rel="nofollow">https://www.radiusbank.com/per...</a>.</p><p>The Radius Hybrid account and Radius High-Yield Savings account are probably the most attractive of the bunch.</p>
Tuesday, 05 Jul 2016 7:51 PM
<p>Hello, I have a chase savings account and shopping for a better savings account with higher APY. Also, looking for a bank with high interest checking account. please help!</p>
Wednesday, 29 Jun 2016 6:28 PM
<p>What are the Radius bank rates?</p>
disqus_5otgRgAcf5
Tuesday, 22 Dec 2015 5:18 PM
<p>Needless to say the current %rates was the initial draw. Naturally, I had questions and Customer Service was very responsive. So far, no looong holds waiting to speak to a representative/Customer Service. But I really like the fact that this well capitalized 'smaller' bank also offers all the same services that I have become accustomed to with the 'big bank'. My 'big bank' also pays me zilch in interest on a high balance checking account, but does offer a 'cash back rewards' programs if I use my credit card (run up debt) in a certain manner. Seriously? <br>As I mentioned before, the interest I was earning on the other very well funded account was also zip, but I was made to feel special because every bank statement reported that I had a 'monthly fee waiver of $25.00" on that account! Aw geez, that really is special.</p>
SimonMBT
Tuesday, 22 Dec 2015 4:16 PM
<p>Right, all of Radius Bank's savings and checking accounts require a $10 opening deposit (even thought they don't require a min. balance after that).</p><p>Radius Bank is a great choice though. I know that with the many choices out there, it can be a challenge for some people to pick an online bank. I'm curious as to what made you pick Radius Bank in particular? Was it just the interest rates?</p>
disqus_5otgRgAcf5
Tuesday, 22 Dec 2015 6:23 AM
<p>Hi Simon, My choice was to deposit a pretty fair amount with Radius Bank High Yield Savings. I like the terms they offer and the (current) interest rate 1.090%. Of course, interest rates can change, but for now, I'm comfortable with this arrangement. I also plan to open the on-line Hybrid Checking/Savings account with Radius that currently pays 1% interest on the amounts over $2500, i.e., if you have $3500 in the account, you will currently earn 1%APY on the difference which would be $1,000. I think there is another tiered level where they currently pay 0.05% on the dollar amount that exceeds $1,000. I believe the Hybrid checking/savings can be opened with $10.00? Always best to Google em' for the details. </p>
SimonMBT
Tuesday, 22 Dec 2015 4:50 AM
<p>Good for you! Which online savings account have you decided on putting your substantial deposit into?</p>
disqus_5otgRgAcf5
Sunday, 20 Dec 2015 1:20 AM
<p>I have had in excess of $250,000 sitting in a 'big bank' for the last several months until I determined what I wanted to do with it. From mid November to mid December, I earned $4.63 interest and I am not joking! I am not a huge risk taker (stock market), but I have invested a moderate amount in a Mutual Fund. That mutual fund did really great for the last couple of years, until this past August-Sept. when it began a slow decline. I am going to keep the faith with that particular Mutual Fund and leave it as is. I am waving bye-bye to my big bank next week and going to a pretty decent on-line high yield savings account.</p>
SimonMBT
Monday, 17 Aug 2015 5:31 PM
<p>Yes, indeed it is sad that the big banks provide virtually no incentive to save with them. That's why online savings accounts are the way to go.</p>
Monday, 17 Aug 2015 3:58 PM
<p>It's incredible how little you can save with "big banks"! - 0.01% is pathetic.</p>
Wednesday, 01 Jul 2015 3:05 PM
<p>Looks like $25</p>
disqus_NN67RlJ9bg
Tuesday, 30 Jun 2015 7:37 PM
<p>What is the miniumum to open a Chase savings?</p>