dcsimg
Advertiser Disclosure: Many of the savings offers appearing on this site are from advertisers from which this website receives compensation for being listed here. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). These offers do not represent all deposit accounts available.

Choosing a Savings Account

It is hard to beat the savings account as a safe way to earn interest on the money you've set aside for a rainy day, but there are more reasons to love your savings account. It is an effective tool that can help you:

  • Budget and reach targeted savings goals
  • Cover unexpected expenses or self-insure purchases
  • Manage your investments or take advantage of an opportunity

Banking services and interest rates change all the time. So it is important to compare bank rates frequently to maximize your savings, but also to see if another bank would offer better terms or enhanced convenience. There's a lot to consider, but you can get the details here. Make sure your savings accounts perform for you.

Comparing Savings Accounts: Not All Are Created Equal

Of course you want the best interest rate for your savings account, but banks also compete for your business on the basis of services, account features, and monthly fees. Shop for banking services that add security and convenience

  • Look for accounts that minimize fees
  • Daily compounding and FDIC insurance for deposits
  • 24/7 mobile and online banking access
  • Easy mobile check deposit
  • Sub-accounts to track individual savings goals
  • Link accounts at another bank
  • No minimum deposit requirements to open
  • No monthly maintenance fees or direct deposit to avoid monthly maintenance fees
  • Free identity theft protection

Remember that traditional savings accounts are just one option. You might also consider money market accounts and certificates of deposit (CDs), which may offer higher interest rates. But these types of accounts may come with stricter limitations too.

What's the Best Way to Choose a Savings Account?

When selecting a savings account, keep in mind the features that are most important to you. For instance, you may decide that you will select a savings account based on:

  • Its interest rates
  • Its online banking features
  • Its fees (or lack thereof)
  • The bank's reputation

If the most important feature to you is that your new savings account offers a high interest rate, a great way to narrow the field is to compare savings rates online to find the highest rates available.

Are Online Savings Accounts Better?

Online savings accounts are an increasingly popular option with consumers. Here are a few things to note about them:

  • Fees. The costs to operate an online bank are typically much lower than those of traditional banks, which may translate to lower fees at online banks.
  • Savings interest rates. For the same reason, you can often find better interest rates with online banks.
  • Transferring money. When you use an online savings account, it can take a day or two to transfer funds to other accounts. While this can be inconvenient, it may also help to prevent impulse spending.

To determine whether an online account may be right for you, learn more about the pros and cons of online savings accounts.

How Does FDIC Insurance Protect Savings Accounts?

When choosing a bank for your savings account, you will want to check whether that bank has FDIC insurance. This is insurance offered to banks by the federal government in order to protect the money that you put into your savings.

The FDIC guarantees that your money (up to at least $250,000 per depositor at each banking institution) will be protected if the bank goes out of business. This protection is particularly valuable in poor economic times, when the last thing you want to worry about is losing your savings because your bank went belly-up. While individual banks do fail, FDIC insurance has not failed to cover a single bank customer since its inception in 1934.

With thousands of FDIC-insured banks to choose from, there's virtually no reason not to take the safe-and-secure route.

I Want to Open a Savings Account: What's Next?

Whether you're new to shopping for savings accounts online or an experienced rate chaser, you'll want to make sure the best interest rates on savings accounts are not leaving you in the dust. If you take a few minutes to compare savings rates from time to time, you'll sleep soundly knowing your deposits are safe and earning you a competitive yield.

SavingsAccounts.com aims to help you find an online savings account that fits your needs. This site is designed to help you compare high-yield online accounts to find the interest rate and features you want. The sooner you start saving, the sooner you can reach your savings goals, so review the tables on this page and others, to see what top banks are offering today.

FILTER

Advertiser Disclosure: Many of the savings offers appearing on this site are from advertisers from which this website receives compensation for being listed here. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). These offers do not represent all deposit accounts available. Editorial Disclosure: This content is not provided or commissioned by the bank advertiser. Opinions expressed here are author's alone, not those of the bank advertiser, and have not been reviewed, approved or otherwise endorsed by the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program. UGC Disclosure: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.