Utah is home to more than 3 million Americans. The vast majority of those Americans will need access to some type of banking service. To that end, dozens of banks operate in the state seeking to meet the needs of Utah residents.
The savings account is the second most common type of bank account in the U.S. Only the checking account is more prevalent. The popularity of savings accounts means that consumers have plenty to choose from. That forces banks to compete to offer the best account to draw new customers.
Taking the time to shop around for the right savings account can help you get a great deal.
If you live in Utah and need to open a savings account, this article will give you the advice you need to find the best one available.
Largest Banks in Utah
This list includes a mixture of local and national banks. If you’re looking to open a savings account, we recommend that you use one of these local banks:
- Rock Canyon Bank
- Capital Community Bank
- First Utah Bank
You should also look into local credit unions and online banks. Each brings its own unique benefits and drawbacks.
Why to Use a Local Utah Bank
There are a few reasons that you may want to work with a local bank.
One is that local banks only work with local customers. That means that they can focus on offering the services that are most needed by locals.
National banks have to offer account features that are useful for anyone, no matter where they live. A Utah bank can offer benefits that are specifically useful to customers in Utah.
Another benefit of local banks is their personalized service. As you spend more time at your bank the staff of the bank will get to know you. They’ll also learn about your unique financial situation and your personal goals.
They can use this information to provide customized service and personalized advice when you need it. Local banks are also more able to give you a break on fees or to help you out in other ways once in a while. National banks tend to have more rigid rules that prevent this.
There is one major downside to local banks. If you ever travel outside of the region served by your bank, you might have trouble accessing bank services. You’ll have to use an ATM that’s owned by another bank. That means you’ll have to pay ATM fees. If you ever move outside of your bank’s area, you’ll probably have to open an account at a new bank.
Advantages and Disadvantages of Savings Accounts from Local Banks
Rock Canyon Bank Savings Account
The Rock Canyon Bank Savings Account offers a no-frills, no-fee savings account.
There is a $25 minimum deposit to open the account. Once the account is open there is no minimum balance that you have to maintain and there’s no monthly fee to worry about.
One of the account’s benefits is that you can manage your account online. You get free access to online banking services and eStatements, making it easy to check your account’s balance and transaction history from anywhere.
Capital Community Bank Savings Account
The Capital Community Bank Savings Account offers easy access to your cash with no fees.
To open the account, you’ll need to make a $25 opening deposit. Once the account is open you can withdraw as much as you’d like: there’s no minimum balance requirement. There are also no monthly fees.
You will get a free ATM card that you can use to make withdrawals at any ATM on the MoneyPass Network. There are no fees to use the ATM card. Interest will be deposited to your account once every quarter.
First Utah Bank Kasasa Saver
The First Utah Bank Kasasa Saver Account gives you the chance to earn a great interest rate by meeting a few requirements.
To open the account, you’ll need to also open a free Kasasa checking account and make a $100 minimum deposit. Once the account is open there are no monthly fees and no minimum balance requirements.
You’ll earn a low rate of interest on the account no matter what. If you meet a few requirements in your Kasasa checking account, you’ll earn a significantly higher rate. The requirements you must meet each statement period are:
- Make 12 debit card purchases
- Receive one automatic payment or direct deposit
- Be enrolled in and view your eStatement
Online Savings Accounts are Available Nationwide
After you’ve taken the time to look into local banks and credit unions, you should look at online savings account. You can open an online savings account from anywhere in the US and they offer a number of benefits.
Perhaps the greatest argument in favor of online savings accounts is their high interest rates and low fees. Online savings account cost much less to run than their brick and mortar brethren. The banks don’t need to pay to operate ATMs or expensive branches. Instead, they can centralize their operations and pass the savings on to their customers.
Interest and fees on your savings growth
The fees that you pay and the interest that you earn is hugely important.
Over the course of a few years, even a small difference in interest rate can be worth hundreds of dollars. This example will illustrate how interest rates and fees affect the balance of your savings account.
Your plan is to open a savings account and to add $100 to the account each month. Four years from now, you’ll withdraw the balance of the account and use it to fund a luxury vacation.
A typical savings account from a traditional bank may offers 0.10% APY. If you follow your plan, you’ll wind up with $5,813.42 after four years. You’ll have earned just $13.42 in interest over the four years.
Some online savings accounts offer interest rates as high as 1.60% APY. This makes a major difference in your ending balance. After four years, you would have $6,019.57 in the account if you used an online savings account.
That’s an extra $200 just for choosing a different account.
Don’t forget that the brick and mortar bank might charge a monthly fee to keep your savings account open. If you pay even $1 per month in fees, that will completely wipe out the interest that you earned. This is why finding a no-fee, high-interest account is so important.
Low deposit requirements
Another reason to work with an online savings account is that they offer low minimum deposits.
Brick and mortar banks typically require that you have as much as $50 or $100 before you can open a savings account. If you’re just getting started with saving, you might have trouble getting that much money together at once.
Online banks can leverage the fact that they’re cheaper to run to allow people to open accounts with a lower balance. Many online banks let customers open accounts with as little as a penny. That makes them a great place to start saving.
Safe like all banks
Many people wonder if online banks are truly safe. In fact, they are, because the Federal Deposit Insurance Corporation treats them just like any other bank.
The FDIC offers up to $250,000 in insurance per account type, per customer at a bank.
What that means is that you cannot lose the money you deposit at a bank, so long as you don’t let your combined savings account balance exceed $250,000.
If the bank is ever unable to return the money you deposited, the FDIC will reimburse you for the amount lost.