What is the best bank to open a savings account? EXPLAINED
Selecting an optimal bank for your savings account is vitally important if you want to maximize the return on your savings. Key factors to take into account include annual percentage rate (APY), fees and minimum deposit requirements so you can open an account even with little money in hand.
Shop around to find a bank with competitive savings accounts to meet your needs; there are both online banks specializing in savings as well as traditional banks and credit unions offering accounts that fit. Use an online tool to compare rates and select an account suitable to you.
What Are the Best Banks for Savings?
The ideal banks for savings accounts are those offering competitive APYs with no fees attached, along with various services to help save more, such as text and email alerts and mobile apps to track savings goals more closely. Furthermore, some provide IRAs while others offer checking or money market accounts.
You can open multiple savings accounts at the same bank if you prefer keeping your funds separated for different purposes, such as emergency or vacation savings accounts. By keeping these separate, you can avoid overdrafting your checking account and incurring overdraft fees when spending beyond what is in your savings accounts.
Ally, Discover, CIT Bank and Marcus by Goldman Sachs are among the leading banks offering savings accounts. Ally stands out for its high-yield savings account which offers an extremely competitive annual percentage yield (APY), without requiring a minimum deposit to begin earning this rate. Ally also provides competitive CD rates without monthly service fees and provides access to various other deposits such as IRAs and money market accounts.
CIT Bank stands out for its extensive array of savings products, particularly its four types of certificates of deposit. Their Savings Connect account boasts one of the highest APYs on our list and you can open one with just $100! They also offer money market accounts as well as custodial accounts for minors.
American Express may be best known for their credit cards, but they also provide an extremely cost-effective savings account that can be linked with existing bank accounts. American Express National Bank features no transaction or official check fees and 24/7 live customer service via phone or online.
PenFed stands out with its competitive annual percentage yields and range of savings products, such as high-yield savings accounts, IRAs and money market accounts backed by the FDIC. Transferring funds can be done electronically or depositing paper checks; you can even connect it with your checking account for both inbound and outbound transfers.
You can continue to check out with us!
