February 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.
Vio Bank savings account rate was recently increased and is now at a new high for 2019. The current online savings rate from Vio Bank is at 2.38 percent with an APY of 2.41 percent. The old savings rate from Vio Bank was 2.36 percent with an APY of 2.39 percent. The minimum opening deposit for a savings account at Vio Bank is only $100.
Vio Bank’s savings rate is currently almost 27 times better than the FDIC’s National Average Savings Rate of 0.09 percent. Vio Bank’s savings rate is also the best savings rate available on our rate list today.
Vio Bank Savings Account Benefits
Vio Bank is a division of MidFirst Bank, and Vio Bank deposits are considered MidFirst Bank deposits for purposes of FDIC coverage. As with any savings account there is a maximum of 6 withdrawals per monthly billing cycle as per Federal regulations. A $10 fee will be charged for each withdrawal in excess of 6 per monthly statement cycle. Excessive withdrawals may also result in savings account being closed.
You can open a savings account online or by calling Vio Bank at 888-999-9170.
Ally Bank savings rates, which were already were competitive for online banks, recently increased their rate. Current savings rates at Ally Bank are at 2.18 percent with an APY of 2.20 percent, up from 1.98 percent with an APY of 2.00 percent. With this increase, savings rates at Ally Bank are at a new high for 2019. This increase also puts Ally Bank’s savings rate in the top 10 rates on our list.
There is no minimum opening deposit for a savings account at Ally Bank but you have to fund your account within 30 days of opening it or the account will be closed.
Ally Bank Savings Account Benefits
Ally Bank Savings Account Fees
Ally Bank Savings Account Features
The easiest way to open an account is online at Ally.com. You can also call customer support 24 hours a day at 1-877-247-ALLY (2559). See how Ally Bank savings rates compare to other savings account rates by viewing our rate list at Online Savings Accounts.
Online savings rates continue to move higher during the first week of 2019 as several banks increased rates. The best online savings rate for the first week of 2019 goes to CIT Bank with a rate of 2.45 percent on their Savings Builder savings account. The minimum opening deposit is $25,000.
The second best online savings rate goes to MySavings Direct at 2.40 percent with minimum opening deposit of only $1.00.
The third highest online savings rate is at 2.36 percent from Popular Direct and VirtualBank. Vio Bank and PurePoint Financial are tied with the fourth best savings rate at 2.35 percent. Rounding out the top 5 savings rates is earn.bank with a rate of 2.31 percent.
The Federal Reserve is widely expected to increase the fed funds rate two or three more times in 2019 if there isn’t a recession. Each fed funds rate increase is 25 basis points or 0.25 percent. After each rate increase online banks usually follow with higher savings rates and other variable rates.
If there are more rate increases in 2019, we could see the best online savings rates move up to 2.75 percent, or possibly as high as 3.00 percent. It’s been about a decade when online banks were offering variable deposit rates as high as 3.00 percent.
E*TRADE Bank Premium Savings Account which already had one of the best online savings rates available was upped to a new higher rate. The current savings rate on the Premium Savings Account from E*TRADE Bank is now at 2.08 percent with an APY of 2.10 percent.
The old Premium Savings Account savings rate was at 1.88 percent with an APY of 1.90 percent. E*TRADE Bank says their Premium Savings Account savings rate is 20 times the national average rate. The minimum opening deposit account is only $1.00.
There is a $10 monthly fee on this account but there is criteria you can meet to avoid the charges.
To open an E*TRADE savings account you will need to provide the following information.
Bank deposits are insured by the FDIC for up to $250,000 per depositor. You can compare E*TRADE savings rate with other online savings rates to get the best deal today.
Synchrony Bank savings rates which were already some of the best savings rates available online were increased. Current savings rates on Synchrony Bank’s High Yield Savings Accounts are at 2.18 percent with an APY of 2.20 percent. The savings rate from Synchrony Bank was increased from 2.03 percent with an APY of 2.05 percent. The minimum opening deposit is only $1.00. See how Synchrony Bank savings rates compare with other online rates today.
CIBC Bank savings rates are one of the highest savings rates available right now but you have to act fast because this is a limited time offer. Savings rates on CIBC Bank’s eAdvantage® Savings Account are at the very high rate of 3.00 percent. There are some restrictions to earn this incredibly high savings rate from CIBC. The 3.00 savings rate is for new money only, meaning money that isn’t already deposited at CIBC. Your savings account balance has to also be over $5,000. To get the best savings account deal, search for and compare other bank rates with CIBC Bank savings rates.
Radius Bank savings rates were increased yesterday and are now above the 2.00 percent level. The old savings rate at Radius Bank was 1.94 percent with an APY of 1.96 percent. The new savings rate from Radius Bank is at 2.03 percent with an APY of 2.05 percent. This high savings rate is for account balances of $25,000 or more. The savings rate from Radius Bank falls to 1.50 percent for account balances under $25k. See how Radius Bank savings account rates compare with other rates to get the best rate.
The best savings rates in December 2018 are hovering just below 2.50 percent and are poised to move higher before the end of the year. The current best savings rate for December 2018 is still at 2.40 percent from MySavingsDirect. That bank has been holding the stop spot for the best savings rate for all of December 2018. Savings rates will probably move higher before the end of the year if the Fed increases the fed funds rate. If a rate increase happens, we could see the best savings rates move hit 2.50 percent or even higher before the end of December. The second best savings rate in December is currently at 2.35 percent from PNC Bank. Rates change all the time, to get the best savings rates compare rates below today.
Robinhood Savings Account and Checking Account Important Update: These accounts are not traditional bank account protected with FDIC Insurance. These Robinhood accounts are brokerage accounts meant for investors to hold cash until it can be invested in securities, the account are covered by SIPC Insurance.
Robinhood savings rates are now the best savings rates available. Robinhood Markets Inc has just launched Robinhood Checking & Savings Accounts with incredibly high rates. Checking rates and savings rates at Robinhood are at 3.00 percent right now, probably the best savings rate or checking rate around. There are no fees on these accounts and you have access to over 75,000 free ATMs. Robinhood is the company has a smart phone app which allows individuals to invest in publicly traded companies and ETFs without paying a commission. See how Robinhood savings rates and checking rates compare with other rates below.
E*Trade savings rates are competitive right not but are not the best savings rates available. Current savings rates at E*TRADE are at 1.88 percent with and APY of 1.90 percent. To earn this great savings rate from E*TRADE you only need one $1 to open and fund an account. Compare E*TRADE savings rates with other bank rates below to get the best rate today.
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