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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:

  • Full Name
  • Date of Birth
  • Social Security Number or EIN for businesses
  • Proof of Address
  • Phone number
  • Email address and tax identification number (such as a Social Security number)
  • Drivers License or Passport

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.

Comenity Direct Savings Rates and ReviewComenity Direct savings rates have gone down, but the bank’s savings rates are still very competitive when compared with other online rates available. Savings rates at Comenity Direct are currently at 1.88 percent with an APY of 1.90 percent. That savings rate from Comenity Direct places the bank 5th on our rate table. The current national average savings rate is at 0.88 percent, less than half of the rate from Comenity Direct. You can easily compare current online savings rates available with Comenity Direct savings rates. If you do want to open an account with Comenity Direct, you can do so here:

Comenity Direct Rates

Comenity Direct Savings Summary

  • Open Now
  • Type of Account: Savings Account
  • Online Savings Deal APY: 1.90%
  • Opening Balance: $100
  • Maximum Balance: $10 Million

Other Rates:

  • 1-YEAR CD APY 2.10%
  • 2-YEAR CD APY 2.15%
  • 3-YEAR CD APY 2.20%
  • 4-YEAR CD APY 2.20%
  • 5-YEAR CD APY 2.20%

Availability: (Online)

Comenity Direct Best Savings Rates

The online savings account from Comenity Direct is overall one of the best savings rates and deal available right now. The minimum opening balance is only $100 and the maximum amount is $10 million but you probably want to stay below the FDIC insured limit of $250,000 for an account. If you deposit $25,000, keep that amount in the account for 12 months and the rate stays at 1.90 percent you will earn around $475 in interest. Since rates are always changing, you might want to compare rates online to make sure you are always getting the highest savings rates available.

Comenity Direct Savings Account Features and Benefits

You might not have heard of Comenity Direct since it’s a relativity new bank which was created in 2018. The online bank is a division of Comentiy Bank, which has been in business for more than 30 years.

  • Interest accrued and compounded daily
  • Interest credited and posted monthly
  • No hidden fees, so you save more
  • Free monthly maintenance
  • Free ACH transfers
  • Free online statements
  • Free incoming wire transfers
  • Unlimited deposits via mobile check capture and ACH transfer
  • $25 outgoing wire transfer fee
  • $15 per official check request
  • $5 per statement copy request


Comenity Direct offers a high yield savings account and many CD account terms to choose from. All accounts have high interest rates if you’re looking to open a new account. You can open a Comenity Direct savings account if you want access to your funds at anytime and still earn a higher rate than most savings rates available these days. If you don’t mind locking up your funds in a CD account, you can earn an even higher interest rate. Overall, with Comenity Direct you are getting higher rates than the current national average rates available. You also are getting great features and benefits one would expect these days with online account. If you’re looking for more options, you can browse our list of Best Savings Rates to get the best deal.

Author: Brian McKay
February 16th, 2020

First City Bank Savings RatesFirst City Bank savings rates listed here are current as of January 2020. Savings rates at First Savings Bank on the bank’s First Savings account are currently at 0.25 percent. Savings rates from First City Bank on the bank’s Relationship Savings account are at 0.50 percent. As the name suggests, to earn the higher savings rate you need to also have a First City Bank checking account. To get the best savings rates compare online rates with First City Bank savings rates.

First City Savings Bank Savings Rates

  • First Savings Account Rates 0.25%
  • Relationship Savings Account Rates 0.50%

First City Savings Bank First Savings Account Fine Print

  • $100 minimum to open
  • Interest compounded daily and credited quarterly (If receiving combined statements, interest will be credited monthly)
  • 2 free withdrawals per monthly cycle
  • More than 2 withdrawals per monthly cycle $5 each
  • $500 minimum daily balance to avoid $5 monthly service charge

First City Savings Bank Relationship Savings Account Fine Print

  • $25 minimum to open
  • Automatic checking-to-savings account transfers
  • Monthly combined statement
  • No monthly service charge
  • No minimum balance requirement
  • Interest compounded daily and credited monthly
  • 2 free withdrawals per monthly cycle
  • More than 2 withdrawals per monthly cycle $5 each

Always search for and compare online savings rates to get the best deal when opening a savings account.


Author: Brian McKay
January 28th, 2020

Northpointe Bank Money Market RatesNorthpointe Bank money market rates are very competitive right now when compared to other online rates. In fact, money market rates at Northpointe Bank are in the top five rates available on our rate list. Current money market rates from Northpointe Bank are at 1.94 percent with an annual percentage yield of 1.95 percent. The minimum opening deposit to earn this rate and yield is $25,000.

Money market account rates from Northpointe Bank are tiered and based on the deposit amount. Accounts between $25,000 and 1 million earn the 1.95 percent APY. Account balances between $2,500 and $24,999.99 earn a rate of 1.04 percent and a yield of 1.05 percent. Account balances over 1 million only earn a rate of 0.50 percent. The rate for account balances under $2,500 is zero percent.

To get the best rate available compare online money market rates with Northpointe Bank money market rates.

Author: Brian McKay
January 5th, 2020

MySavingsDirect Savings RatesMySavingsDirect savings rates are very competitive when compared to other online savings rates. Savings rates at MySavingsDirect also blow traditional brick-and-mortar savings banks’ rates out the water. Current savings rates from MySavingsDirect are at 1.88 percent with an APY of 1.90 percent. That rate is currently 21 times higher than the current FDIC national average savings rate of 0.09 percent. MySavingsDirect is a division of Emigrant Bank which has been in business since 1850. To get the best savings rate on a savings account be sure to compare online rates with MySavingsDirect savings rates.

MySavingsDirect Savings Account Fine Print

To Open a Savings Account at MySavingsDirect:

  • Be at least 18 years of age
  • Be a U.S. citizen or Resident Alien
  • Have a valid social security number
  • Have a residential address in the United States

MySavingsDirect Savings Account Fees

  • No minimum balance fees
  • Balance Confirmation Letter/Verification of Deposit Fee $ 30.00
  • Additional Copies Fee $5.00
  • Legal Fee (for processing Subpoenas, Levies, etc.) $100

You can open a MySavingsDirect High Interest Savings Account or search for and compare online savings rates with MySavingsDirect savings rates.

Author: Brian McKay
December 18th, 2019

Customers Bank Money Market RatesCustomers Bank money market rates are the best money market rates on our rate list right now. Money market rates from Customers Bank are currently at 2.23 percent with an APY of 2.25 percent. Money market rates at Customers Bank is 15 times the FDIC national average money market rate this week. The minimum opening account balance is $25,000. This high yield is guaranteed thru June 30, 2020 and is on Customers Bank’s Ascent Money Market Account. To see how high this rate is compare online rates with Customers Bank money market rates.

Customers Bank Money Market Account Fine Print

  • 2.25% available online only, not available at any branch locations
  • High yield guaranteed thru June 30, 2020
  • $25,000 minimum opening deposit
  • $25,000 minimum balance to earn high yield
  • No monthly minimum balance fees
  • Debit card and checks are not available on this account
  • New money only, money already on deposit at Customers Bank isn’t eligible for high yield
  • FDIC insured Cert # 34444
  • Interest compounded monthly
  • Interest credited to your account monthly
  • If you close your account before interest is credited accrued interest will be paid

To get the best money market rates compare rates online with Customers Bank money market rates.

Author: Brian McKay
December 17th, 2019

TotalDirectBank Money Market Account RatesTotalDirectBank 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

  • Minimum daily balance needed to earn 2.05% APY is $5,000
  • Interest is compounded monthly
  • Transfer funds in the account using your external bank account
  • FDIC insurance up to the maximum allowable
  • Six withdrawals and transfers per month (Fed legal limit)
  • Exceed maximum legal limit of withdrawals per month, fee of $10 for each additional withdrawal
  • No maintenance fee(s)

Compare online money market rates with TotalDirectBank money market account rates.


Author: Brian McKay
December 12th, 2019 Money Market Account money market account rates are still one of the best variable rate accounts on our rate list. Current money market account rates at is at 2.03 percent with an APY of 2.05 percent. There is a minimum opening deposit of $10,000 to earn the money market account rates at 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 is one of best rates around. To make sure you’re getting the best deal you can search for and compare online rates with money market account rate.

Author: Brian McKay
December 8th, 2019

Presidential Bank Money Market RatesPresidential 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

  • Interest credited at month end
  • Also available to commercial accounts as Commercial Money Market Plus Checking
  • Visa® Debit Card or ATM card available
  • Free Personal Online Banking
  • Checking writing privileges
  • Check images (front) returned with statement
  • Check & Deposit images online
  • Monthly statements (Electronic statements available. Accounts opened online are provided electronic statements.)
  • Online Historical Statements
  • Email deposit notifications
  • Free Billpayer
  • FREE check supply
Author: Brian McKay
December 3rd, 2019

Barclays Savings RatesBarclays 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.

Author: Brian McKay
November 1st, 2019 money market’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 on all account balances over $10,000.

To give you an idea of how good’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.

Author: Brian McKay
October 6th, 2019