January 2020 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:

  • 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.

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

earn.bank Money Market Account Rateearn.bank money market account rates are still one of the best variable rate accounts on our rate list. Current money market account rates 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 the money market account rates 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.

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

earn.bank money market ratesearn.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.

Author: Brian McKay
October 6th, 2019

WauBank Money Market RatesWauBank, 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.

Author: Brian McKay
September 23rd, 2019

Savings Account Rates CIT BankSavings 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

  • No account opening or maintenance fees
  • Daily compounding interest to maximize your earning potential
  • A limit of six transactions per statement cycle (Federal Law)
  • Deposit checks remotely and make transfers with the CIT Bank mobile app

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.

Author: Brian McKay
July 20th, 2019