December 2019 Best Savings Rates
Use our savings rates list below to search for and compare the best savings rates from banks and credit unions. Our list of savings account rates are the highest savings rates around from both local banks and credit unions. We also list the best savings rates from national banks. There is no need to search for savings rates elsewhere since we maintain the best list of rates.
Why are Savings Accounts Better?
Online savings accounts are very mainstream these days and have been around for about two decades now. There are many features about an online savings account that make banking so much easier than a traditional brick and mortar savings account. Plus, the interest rate earn on an online account is so much higher than an account offered by a brick and mortar bank.
Savings accounts in general earn a lower rate than certificate of deposit accounts but you have access to your money when you need it. You can access your money in a certificate of deposit but you will pay an early withdrawal penalty if you do so.
Savings accounts are a good way to save for unexpected expenses or can be used for an emergency account. Experts recommend having at least six months of expenses stashed away in an emergency account.
Savings Account Features
Federal law, Regulation D, only allows for 6 withdrawals from a savings account per billing cycle. If you constantly go over that amount your bank or credit unoin is allowed to switch your account to a checking account. Most checking accounts earn a lower rate than savings accounts.
We actually recommend having a savings account, checking account and also certificates of deposit, each is designed for a particular need.
Online savings accounts earn a much higher interest rate than regular savings accounts. The reason being, with traditional brick and mortar banking there are higher costs to maintain branch locations. If a bank only has an online presence the savings are tremendous and they can pass the savings onto depositors in the form of higher interest rates.
Why Use an Online Savings Account?
The ease and convenience of online banking is the second reason to stick with online accounts. You can access your accounts online to view balances, pay bills, transfer money between accounts. One of the greatest features is mobile deposit. You can take a photo of a check to deposit it into your account.
Traditional Savings Accounts vs. Online Savings Account
There are many reasons to choose an online savings account over a traditional savings account. Many reasons we mention above.
Right now, the best online savings rate is more than 10 times the best brick and mortar savings rate. We don't expect this to ever change because online banks have lower costs.
Compound Interest on a Savings Account
If you haven't heard of compound interest you really need to read this next paragraph. Compound interest is interest calculated on the savings account principal and interest already earned. Compound interest is the most powerful aspect of a savings account.
When you open a savings account make sure to see when a bank or credit union "compounds the interest." Finanical institutions greatly differ on when the compound interest. The more frequently interest is compounded the more money you make. Some finanical institutions will do it daily, some compound monthly, some compound quarterly or even annually.
Do you pay income tax on interest earned on a savings account?
The answer is yes, interest earned on a savings account is taxable. The finanical institution you have an account with will send you a 1099-INT with the amount of interest you earned. The tax rate you pay will depend on your tax rate which depends on how much income you had any given year.
How to Open a Savings Account
The best and easiest way to open a savings account is online. You will need several pieces of information to open an account. There are Federal laws designed to prevent money laundering which drive most of the process these days.
Information you will need to provide a bank or credit union to open a savings account include:
Should I Designate Beneficiaries when I open a Savings Account?
Most banks or credit unions require you to designate a beneficiary when you open an account. The person(s) you name as the beneficiaries will inherit the money in the account.
Funding a Savings Account
If the savings account has a minimum deposit requirement, you’ll need to deposit at least that much money in the account. You can do this by initiating a bank transfer, sending or depositing a check or using a wire transfer.
Not all banks require a minimum deposit but for the banks that do you might also be able fund the account for some period after the account has been opened.
TotalDirectBank money market account rates are currently some of the best money market rates available on the rate list. Current money market account rates from TotalDirectBank are at 2.03 percent with an APY of 2.05 percent. The minimum opening account balance is only $5,000 and the maximum amount you can deposit is $500,000. This high yield money market account rate from TotalDirectBank is more than 8x the FDIC national average rate. To get the best deal on a money market account compare rates online with TotalDirectBank money market account rates.
TotalDirectBank is a division of City National Bank of Florida which was founded in Miami more than 70 years ago. The bank has more than $15 billion in assets. Deposits are insured with the FDIC under Certificate # 20234.
Money Market Account from TotalDirectBank Fine Print
Compare online money market rates with TotalDirectBank money market account rates.
earn.bank money market account rates are still one of the best variable rate accounts on our rate list. The current money market account rate at earn.bank is at 2.03 percent with an APY of 2.05 percent. There is a minimum opening deposit of $10,000 to earn this great money market account rate at earn.bank. There is one caveat, if you don’t maintain a minimum monthly account balance of at least $10,000 there is a $10 a month fee on the account. Be sure to also switch estatements to avoid a $25 paper statement fee. If you avoid this pitfalls, the 2.05 percent money market account rate at earn.bank is one of best rates around. To make sure you’re getting the best deal you can search for and compare online rates with earn.bank money market account rate.
Presidential Bank money market rates are offering the best money market rates available on our rate table right now. Current money market rates at Presidential Bank are at 2.23 percent with an APY of 2.25 percent. This rate and yield are on Presidential Bank’s Money Market Plus Checking account. The minimum opening deposit to earn that money market rate from Presidential Bank are on the high end. The average daily balance for the month needs to be at least $100,000 if the day’s balance is under $250,000. To get the highest rate and best deal on a money market account, compare other banks’ rates with Presidential’s Bank money market rates.
Presidential Bank Money Market Plus Checking Account Features
Barclays savings rates are still some of the best savings rates available today. The current savings rate at Barclays is at 1.88 percent with an APY of 1.90 percent. There is no minimum opening deposit for a savings account at Barclays. The highest savings rates available online have been moving lower since the Federal Reserve started lowing the fed funds rate. The Fed is widely expected to decrease the rate one more time this year which might lead to lower savings rates from Barclays and other banks.
earn.bank’s money market rate is currently one of the best money market rates available on our rate list. Their current money market rate is at 2.23 percent with an APY of 2.25 percent. You can earn that rate and yield from earn.bank on all account balances over $10,000.
To give you an idea of how good earn.bank’s money market rate is right now, the current FDIC’s national average money market rate is considerably lower at 0.18 percent.
When you sign up, make sure you choose to receive eStatements. Otherwise, you’ll have a $25 monthly fee for paper statements. You need to keep your account balance above $10k or there will be a $10 monthly fee. If you end up with $35+ in monthly charges, you could cause the rate and yield to fall considerably, or quite possibly be a negative return, depending on your account balance. Simple enough, though – balance over 10k and receive eStatements and enjoy one of the best rates available today.
WauBank, a new online bank, is currently offering competitive money market rates that are much higher than traditional brick and mortar banks’ money market rates. The current money market rate at WauBank is at 2.18 percent with an APY of 2.20 percent. To give you an idea of how good this rate is at WauBank, the current FDIC national average rate is only at 0.18 percent. WauBank’s money market rate is more than 12 times the FDIC average rate. The minimum opening balance for a money market account at WauBank is only $5,000.
Savings account rates at CIT Bank are very competitive right now, especially on the bank’s Savings Builder savings account. In fact, the Savings Builder savings rate places CIT Bank in the top 10 savings rates on the rate list. Current CIT Bank Savings Builder savings rate is at 2.27 percent with an APY of 2.30 percent. The account is FDIC insured and the minimum opening deposit is only $100.
To earn the 2.30% APY, you have to either have $25,000 or more on deposit or make a monthly deposit of $100 or more. If you don’t make deposits of $100 or more each month or have a balance of less than $25,000 the savings rate is 1.26% APY for the first month. Each month after the savings rate drops to 1.00% APY.
Savings Builder Benefits and Features
CIT Bank is also offering their Premier High Yield Savings Account. The current savings rate is at 1.53 percent with an APY of 1.55 percent. All account balances earn that savings rate and yield. The minimum opening deposit is only $100.
Vio Bank savings rates for July 2019 are currently the best savings rates available on our rate table. Savings rates from Vio Bank are currently at 2.49 percent with an APY of 2.52 percent. Besides being the highest online savings rate right now, this rate is also 25 times the current FDIC National Average Rate at 0.10 percent.
Vio Bank regularly monitors the competitions’ online savings rates to ensure that they always offer one of the best rates available. This ensures you are always getting a top savings rate even after opening an account. Another benefit of having a savings account from Vio Bank is that you only need $100 to open an account. Opening a Vio Bank savings account is done online and it’s very easy.
Interest is compounded daily, giving the savings account an overall higher APY. There are no monthly fees on the account. Vio Bank is a division of MidFirst Bank, and Vio Bank deposits are considered MidFirst Bank deposits for purposes of FDIC coverage of up to $250,000.
BMO Harris Bank money market rates were recently increased and are very competitive right now. Today’s money market rate at BMO Harris Bank is at 2.03 percent with an APY of 2.05 percent. This high yielding money market rate is on the Platinum Money Market Account offered by BMO Harris Bank. The minimum opening deposit for a money market account at BMO Harris Bank is $5,000.
BMO Harris Bank Money Market Account Fine Print
To get the best money market rate, see how other banks’ rates compare with BMO Harris Bank money market rate.
Comenity Direct savings rates are now the best savings rate on our list at 2.45 percent with an APY of 2.48 percent. Comenity Direct, the new online banking division of Comenity Capital Bank, just launched their High Yield Savings Account with the new top rate. The minimum opening deposit for a savings account at Comenity Direct is $100.
Comenity Direct Savings Account Fine Print
You can open an account line on the bank’s website at Comenity Direct Savings Account Application.
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