Savings accounts are a symbol of the safest way to let your money grow. Since it’s such low-risk, it’s not going to return high profits in the same way as the stock market or real estate investments. But as long as you choose a top bank savings account, you can expect a generous APY %. You’ll also know that your money is in a safe place as long as the FDIC backs the bank.
You could also take it a step further and put your money into a CD or Money Market Account. There will be restrictions on how much you’ll have access to the account to make withdrawals without a penalty fee. These are all offered by traditional banks, online banks, and credit unions. An online bank or financial institution is the best option since they give out higher APY %s.
The APY is the Annual Percentage Yield, which is the amount of interest a savings or CD account earns in a year. You can calculate it by the interest rate and the number of interest payments by the bank during the year. A top bank savings account also comes with compound interest. This is the interest that you earn not only on the initial money but on the interest as it accumulates as well.
Which online bank should you be putting your money in? How can you pick the top bank savings account?
Top Bank Savings Account Rates
Here are a few recommendations to help you get started. Keep in mind that due to the pandemic, the APY %s are a bit lower than usual:
• VIO Bank – 1.04% on all balances
• CIBC Bank USA – 1.05%
• American Express National Bank – 1%
• CF Bank Online – 1.05% (requires $20,000)
• Citizens Bank – 1% – (requires $5,000)
• CIT Bank – 0.85%
How do you open up an account with one of these? Usually, it involves providing your information. For example, contact info, social security number, and some form of identification, such as a photo ID. If it’s going to be a joint account, the other person must provide the same information. You’ll likely have to make a deposit right away. Depending on which account tier you choose, there may be a minimum deposit.
Out of all online banks that offer a top bank savings account, CIT Bank may be the best, or at least close to it. It does not offer a high interest as others. But the customer service and tech support more than make up for anything else. Choose the type of savings account you want: Savings Builder and Premier High Yield Savings.