Here’s why you should never settle for just any savings account: The very best pay nine times more than the average (0.25 percent APY).
Skip your corner bank and look to the best nationally available accounts, which could really boost your earning power.
The best savings account rate available to all savers is 2.25 percent APY. But there are more than two dozen banks that offer either savings or money market account rates as high as 1.6 percent APY. Here are Bankrate’s picks for the best savings account:
Best savings accounts – August 2018
- Northfield Bank: 2.25% APY – Best for high yield
- Customers Bank: 2.25% APY – Best for high yield for super savers
- Salem Five Direct: 2.05% APY – Best for high yield
- Utah First Federal Credit Union: 2.00% APY – Best for high yield for credit union customers
- Citizens Access: 2.00% APY – Best for high yield
- Popular Direct: 2.00% APY – Best for high yield
- Quorum Federal Credit Union: 2.00% APY – Best for high yield
- Northpointe Bank: 1.95% APY – Best for competitive yield for super savers
- Vio Bank: 1.90% APY – Best yield for competitive yield, low minimum deposit
- CIBC Bank USA: 1.90% APY – Best for competitive yield
Compare the best savings accounts and pick the one that offers the right minimum balance and interest rate for your financial situation.
Differences among the best savings accounts
Notice many of these top offers come from online banks. Without the brick-and-mortar overhead, these banks may be able to offer more competitive rates.
At the top of the list is Northfield Bank. Its Platinum Savings account:
- Pays 2.25 percent APY.
- Requires a minimum balance of $0.01 to open an account.
- Charges a $8 monthly fee when balances fall below $2,500.
Northfield Bank is based in Staten Island, New York. It was founded in 1887. It earned five out of five stars in the latest review of its financial health.
Customers Bank offers savers a high yield, too. Its Ascent Money Market Savings Account:
- Pays 2.25 percent APY.
- Requires a $25,000 minimum deposit to earn interest; smaller balances earn nothing.
- Charges no fees for falling below the minimum balance.
Customers Bank is a community, full-service bank based in Wyomissing, Pennsylvania with offices throughout the northeast and midwest. Founded in 1997, Customers Bank earned a five-star rating in Bankrate’s latest review of its financial health.
Salem Five Direct
Next is Salem Five Direct. Its eOne Savings account:
- Pays 2.05 percent APY.
- Requires a $100 minimum deposit.
- Charges no monthly fees.
Salem Five Direct is based in Salem, Massachusetts. Its parent company, Salem Five Cents Savings Bank, earned four out of five stars in Bankrate’s latest review of its financial health.
Calculate how much you stand to make with all these offers using our simple savings calculator.
Watch for changing savings account rates
Some banks have been gradually increasing interest rates in response to the Federal Reserve, which has increased its benchmark interest rate multiple times in recent months. The Fed last hiked rates in June by a quarter percentage point. It’s anticipated that the central bank’s rate-setting committee will increase rates two more times in 2018.
Though this could mean you’ll pay more interest on credit cards and auto loans, it also could mean higher interest rates on savings accounts. Keep an eye out for the ripple effects of the Fed’s decisions.
In the meantime, if you’re looking for a guaranteed return, compare the best savings rates with the top CD rates.
Compare: Best savings accounts and rates
|Bank/Institution||APY||Minimum deposit to open|
|Salem Five Direct||2.05%||$100|
|Utah First Federal Credit Union||2.00%||$50|
|Quorum Federal Credit Union||2.00%||$10,000|
|CIBC Bank USA||1.90%||$1,000|