Frequently Asked Questions About Savings Accounts & Interest Rates

Rates for high interest savings accounts 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 account 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 an account with the best savings interest rates?

Begin your search at your current bank. Since you already bank with them, you will be familiar with their customer service and policies. Ask whether or not they offer any other savings accounts that have interest rates better suited for your needs.

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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Wednesday, 21 Feb 2018 1:13 PM
Friday, 29 Dec 2017 12:27 AM
<p>How much money do I need to open up a savings account</p>
Friday, 22 Dec 2017 3:52 PM
<p>For a limited time they have a 12 mo. 2% rate. Hard to beat.</p>
Friday, 22 Dec 2017 3:51 PM
<p>Synchrony is great. Do yourselves a favor and check it out.</p>
Friday, 22 Dec 2017 3:50 PM
<p>I visited the website. Their rates are anemic, unless they have some secret hidden rate, which I seriously doubt. If they have a high rate why would they not disclose it???</p>
Friday, 22 Dec 2017 12:22 AM
<p>Check out Luther Burbank Savings in Long Beach. Brick and mortar, on 2nd Street. Higher rates than these. Ask for the non advertised rate. Seriously</p>
Sunday, 17 Dec 2017 6:22 AM
<p>you also left out synchrony.</p>
Friday, 01 Dec 2017 9:45 PM
<p>Of all the online and off line Banks Ally take the cake at 1.5....their 11 month NOPENALTY CD is 1.5% which can be used as a savings account</p>
Friday, 01 Dec 2017 5:41 PM
<p>DollarSavingsDIrect is 1.50% APY for a saving account. (not a CD)<br>Current highest rate I can find is 1.55% APY<br><a href=";cuid=15643" rel="nofollow noopener" title="">https://www.incrediblebank....</a></p>
Sunday, 26 Nov 2017 6:09 PM
<p>You have a different list. Ally is missing.</p>
Sunday, 26 Nov 2017 6:08 PM
<p>Ally is missing - Savings rate is 1.25%.</p>
Sunday, 26 Nov 2017 12:27 AM
<p>Thanks for the info. Those of use who are not financial experts appreciate it.</p>
Sunday, 26 Nov 2017 12:27 AM
<p>Giddy up!!!! LOL</p>
Saturday, 25 Nov 2017 7:43 PM
<p>Why isn't Barclays Bank listed? I'm getting 1.30% on line.</p>
Monday, 20 Nov 2017 1:51 PM
<p>Spoken from a true Republican. Good work.</p>
Monday, 20 Nov 2017 1:47 PM
<p>That 1.50 rate is for a 5 year CD. Who wants to tie up their money for 5 years?</p>
Monday, 20 Nov 2017 1:45 PM
<p>Only up to $10,000.00</p>
Sunday, 19 Nov 2017 9:43 PM
<p>There right at the top of the list</p>
Sunday, 19 Nov 2017 9:07 PM
<p>I never heard of them</p>
Wednesday, 08 Nov 2017 1:58 AM
<p>Ally Bank is in the list above.</p>
Wednesday, 08 Nov 2017 1:42 AM
<p>You left out Ally Bank, an on line Bank. They are paying 1.25% with no minimums and no fees. FDIC insured.</p>
Tuesday, 07 Nov 2017 10:11 PM
<p>True, some credit unions are very easy to join. Some are rather stringent.</p><p>Trailhead CU, for instance, only accepts residents of Multnomah County, Oregon, or a family member of a current member.</p>
Tuesday, 07 Nov 2017 9:55 PM
<p>That's ancient history. Joining a credit union has never been easier.</p>
Tuesday, 07 Nov 2017 8:33 PM
<p>Thanks for sharing that with us. We aim to provide a list of savings options that are accessible to most people. Credit unions (and even small banks) offer limited access due to their membership requirements or account eligibility qualifications.</p>
Tuesday, 07 Nov 2017 5:57 PM
<p>It's not collusion - I didn't name it as there are so many. Currently DollarSavingsDIrect (which was 1.40% when I posted), is 1.50% now. CIT Bank was 1.30% (not sure where it it now).</p>
Tuesday, 07 Nov 2017 4:56 PM
<p>All should be FDIC insured for up to $250,000.</p>
Tuesday, 07 Nov 2017 4:54 PM
<p>Funny you don't NAME the bank you refer to. Some banks have a shakier rep than others. Some offer a come-on rate and then lower it later on.</p>
Tuesday, 07 Nov 2017 4:53 PM
<p>You're too funny. Even though my balance is nearly always at that limit, most people I know wouldn't reach 10k. The "strings<br>" are barely threads. It's far better than a nearly worthless 1%.</p>
Tuesday, 07 Nov 2017 4:51 PM
<p>Put your money in an online savings account like Ally and keep a small balance in their checking account. Transfer $ to checking as needed.</p>
Tuesday, 07 Nov 2017 4:49 PM
<p>CU pays peanuts compared to online banks.</p>
Tuesday, 07 Nov 2017 4:48 PM
<p>All kinds of strings attached and the max balance for this is like $10k. Gimmick account.</p>
Sunday, 22 Oct 2017 3:59 AM
<p>Too funny. Trailhead Credit Union isn't in your list. Pays 3%.</p>
Thursday, 19 Oct 2017 11:42 AM
Sunday, 15 Oct 2017 1:42 AM
<p>Interest is never coming back because it banks pay close to zero, the government doesn't have to pay much either, and it can keep the deficit down, and not have to tax the rich or the corporations . Neither political party gives a damn about savers. The average female saver over 75 used to have 75,000 bucks in savings after a lifetime of hard work and frugality, and the Clintons and Obama get between 3 and 7 times as much for an hour of speechifying to bankers. The bankers can still collect interest, but no longer have to pay interest, and the lie the Fed tells about how it's necesary to not pay savers in order to have full employment is a big fat lie. If people were still getting interest, we would be spending it on frivolities like dental care and home maintenance. The bankers whose greed and irresponsibility crashed the world economy are making out like bandits and the political parties who lobby the Fed to not raise it are well paid by both the bankers and the corporations who no longer have to worry about their taxes being raised as long as there are savers to steal from.</p>
Sunday, 15 Oct 2017 1:36 AM
<p>the credit union where I used to have my money paid even less than the pitifully small amount paid by banks. It is giving out mortgages for 1.99%, so I am expecting that they are never going to pay anything, and banks will be putting them. at least that one, out of business.</p>
Wednesday, 11 Oct 2017 11:48 PM
<p>But are they safe ?????????</p>
Wednesday, 11 Oct 2017 11:46 PM
<p>LMAO ............</p>
Tuesday, 10 Oct 2017 3:08 PM
<p>Yet credit card companies charge you 30% to use their plastic. What's wrong with this picture?</p>
Tuesday, 10 Oct 2017 3:05 PM
<p>Ally 1.20%</p>
Thursday, 05 Oct 2017 4:16 PM
<p>If you're looking to rebuild your credit, you might consider a secured credit card to help you with that goal: <a href=";cuid=15643" rel="nofollow noopener" title="">https://www.mybanktracker.c...</a></p>
Thursday, 21 Sep 2017 5:29 PM
<p>What is the best bank I should choose to start building my credit back up</p>
Saturday, 16 Sep 2017 3:13 PM
<p>Yes. Mine pays .08% I've moved all my money out</p>
Wednesday, 06 Sep 2017 11:34 PM
<p>All America Bank offers 1.50%....</p>
Friday, 18 Aug 2017 9:40 AM
<p>Why don't you ladder CDs open 12 one year cds staggered to mature every month that should blow away any saving rates.</p>
Sunday, 13 Aug 2017 4:13 PM
<p>Where are you getting 1.4? Best I see is Cit bank at 1.3 and I haven't found any others offering even that.</p>
Friday, 11 Aug 2017 11:53 PM
<p>Ever heard of a Credit Union"</p>
Wednesday, 26 Jul 2017 7:25 PM
<p>What a horrible site. I have online Savings with a rate of 1.40% and there are lots of 1.30% ones out there. Yet, they're not listed here.</p>
Saturday, 29 Apr 2017 8:48 PM
<p>Hi. Do you think you can help with my son's college tuition. I will pay you back and work for free a few hours a week. </p>
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>
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=";cuid=15643" rel="nofollow noopener" title=""></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>
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>
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>
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>
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>
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>
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>
Tuesday, 30 Jun 2015 7:37 PM
<p>What is the miniumum to open a Chase savings?</p>