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The Best Savings Accounts in Kentucky

Find out which local Kentucky banks provide the best savings options to residents and compare them to online savings accounts, which have higher savings rates.

Kentucky is home to nearly 4.5 million Americans and each of those Americans needs some type of bank account. To meet the banking needs of Kentuckians, dozens of banks operate in the state.

Of the many banking services that are available to residents of Kentucky, the savings account is the second most popular.

Only the checking account is more popular than the savings account. What this popularity means is that nearly every bank in the state will offer at least one type of savings account.

The popularity of savings accounts also means that banks have to compete with each other to attract new customers. This is good for consumers because it means they can get a great deal on an account if they take the time to shop around.

If you live in Kentucky and want to open a savings account, this article will cover the options available to you.

Largest Banks in Kentucky

The largest banks in Kentucky, by deposits, are:

This list includes a mixture of local and national banks. If you live in Kentucky and want to open a savings account, we recommend one of these local banks:

  • Republic Bank
  • Stock Yards Bank and Trust
  • Traditional Bank

However, local banks aren’t the only option that you have. Take the time to look into local credit unions and online banks. Each will bring its own unique benefits and drawbacks.

Local Kentucky Banks to Consider for Savings Accounts

There are a number of arguments in favor of working with a local bank.

One argument is that local banks are more able to meet the needs of local consumers than national banks.

National banks have to appeal to customers across the country, so they offer account features that are generically useful but cannot truly target specific groups of consumers.

Local banks don’t have to worry about drawing a national audience, and can aim to provide huge value to locals.

For example, a bank in an agricultural community might decide to offer special business loans for the purchase and maintenance of farm equipment.

Another argument in favor of local banks is their ability to offer personalized service.

As you work with a local bank, the staff there will get to know you and your personal financial situation. That will let them offer more useful advice and account service because they know exactly what your needs are.

Local banks also tend to have more freedom to waive fees or cut you a deal now and then. Larger, national bank chains tend to have stricter rules surrounding such things.

There is one downside of local banks that is worth remembering.

If you ever travel outside the region that your bank serves, you’ll have trouble finding an ATM or branch that you can use.

You might be forced to use an ATM owned by another bank, which means you’ll have to pay fees. If you ever move, you’ll probably have to close your account and find an entirely new bank to use.

Advantages and Disadvantages of Savings Accounts from Local Banks

Benefits Drawbacks
  • Lower fees than national banks (but not always)
  • Personal service for account management
  • Smaller branch and ATM networks
  • Interest rates are not the highest available

Republic Bank Easy Savings Account

The Republic Bank Easy Savings Account offers an easy-to-use, basic savings account experience.

To open the account, you’ll need to make a $10 minimum deposit. Once the account is open, you can let the balance fall below that amount. There’s no minimum to worry about. There’s also no monthly fee to pay.

You can make unlimited in-person or ATM withdrawals, and up to 6 electronic transfers per month. Each electronic transfer after the sixth will incur a $6.

The biggest downside of the account is that the interest rate that you’ll earn is very low, even for a brick and mortar bank.

Stock Yards Bank and Trust Statement Savings Account

The Stock Yards Bank and Trust Statement Savings Account is a no-frills savings account without any fancy features.

There is a $50 minimum opening deposit to open the savings account, which may make it hard for people who are just starting to save. Once the account is open, there is no minimum balance requirement, so you can let the balance fall below the $50 mark without fear.

You will be somewhat restricted in how often you can access your money. You may make up to three withdrawals each month without paying any fees. Each withdrawal after the third will cost $2. There are no monthly fees for the account.

Traditional Bank Simply Savings Account

The Traditional Bank Simply Savings Account is a great choice for people who are just starting to save.

The minimum opening deposit for the account is $1, making the account very easy to open. Once the account is open there is no minimum balance requirements and no monthly fee. You may make up to three withdrawals each month without paying fees. Each withdrawal after that will incur a $3 charge.

As a bonus, you can get access to free online banking and e-statement services with the account.

Savings Accounts at Online Banks

After you’ve taken the time to look into local banks and credit unions, consider opening an online savings account. You can open an online account from anywhere in the United States and their benefits make them worth looking into.

Two of the biggest reasons to open an online savings account are their low fees and high-interest rates.

Online banks cost much less to run than brick and mortar banks do. They save a lot of money by not running branches or operating an ATM network. They then use those savings to give their customers a better deal.

Online banks are also easy to use. You can manage your account from anywhere, so long as you have a computer or smartphone. Usually, all you need to do is transfer money to your savings account and let it sit, earning interest.

Better savings rates without the high fees

The interest rate that you earn and the fees that you pay have a huge effect on the value of your savings.

Given a few years, you could wind up with hundreds or thousands of dollars less if you choose an account that pays low interest or charges hefty fees.

Online banks often deliver much higher savings rates along with lower (and fewer) fees so that you can maximize your savings growth.

Start saving with little

Another major benefit of online savings accounts is their low minimum deposit requirements. You can often open an account with a deposit as low as a dollar. Some will let you open an account with just a penny.

Compare that to brick and mortar banks which may require an opening deposit of $25-$100. It’s much easier to get started when you use an online savings account.

Just as safe as a big bank

Many consumers worry about the safety of online banks. The good news is that they’re just as safe as brick and mortar banks. The Federal Deposit Insurance Corporation insures online banks like any other.

The FDIC offers $250,000 in insurance per account type, per customer at a bank. If you never let your combined account balances at a bank exceed $250,000, you cannot lose money by depositing it at a bank.

If the bank goes under, the FDIC will reimburse you for the full amount you lost.

Tips to Help Your Savings Grow Faster

Follow these tips to help your savings grow faster.

Less access, more savings

It can be easy to be tempted to spend money on fun things, especially if you have a balance in your savings account.

Making it more difficult to get to your savings can reduce this temptation, making it easier to grow your savings.

Recurring monthly transfers

If your problem is with remembering to save, set up automatic transfers from your checking account.

Each month, the money will be moved from your checking account automatically.

Use partial direct deposits

The best way to grow your savings is to constantly add more money to it. If your employer lets you split your paycheck into multiple bank accounts, set up a direct deposit into your savings account.

That will make the process of saving completely automatics.