The big name banks have big advertising budgets. Smaller FDIC-insured banks may not have glossy full-page ads or fancy television spots, but they can often provide their local and Internet customers with the best interest rates on savings.
Ultima Bank - 2.02 percent APY
Ultima Bank of Minnesota is offering young savers an opportunity to earn a high interest rate with the SMART Savings (School Money At Right Time) account. This account has no minimum balance requirement to earn the featured interest rate of 2.02 percent APY. SMART Savings is for young adults age 18 or younger.
Interest is calculated daily, then compounded and credited to the account quarterly. Withdrawals prior to the customer's 18th birthday may result in a penalty. On the 19th birthday, this account converts to a regular savings account. Ultima Bank is an FDIC member.
Dollar Bank - 2.00 percent APY
Dollar Bank Federal Savings Bank currently offers Pennsylvania and Ohio residents one of the best interest rates on savings with an APY of 2.00 percent on its FreeMoney Savings account. This rate is for balances below $20,000 and customer accounts must be linked with a Dollar Bank FreeMONEY Checking or e-Checking to earn this rate. No monthly service charges apply to this account and there are no minimum balance requirements, but there is a $50 minimum requirement to open the account.
The bank operates more than 60 branch offices and loan centers throughout the Pittsburgh and Cleveland metropolitan areas. Accounts can be opened online and forms can be mailed. The featured interest rate is only available in Pennsylvania and Ohio. Dollar Bank is FDIC-insured and provides 24-hour account access through its ATMs, push-button banking, online banking, mobile online banking, and text message banking.
Zions Bank - 1.11 percent APY
Headquartered in Salt Lake City, Utah, FDIC-insured Zions First National Bank has been in business since 1873. It is currently offering 1.11 percent APY on its Internet Savings Account. A minimum balance of $1,000 is required in order to earn this rate and a minimum $100 opening deposit is required. The APY is variable and can change once the account is opened.
Zions operates 130 full-service banking offices and 148 ATMs throughout Utah and Idaho. It also provides commercial, installment and mortgage loans; trust services; foreign banking services; electronic and online banking services; automatic deposit and nationwide banking and transfer services.
The above rates were current according to bank websites as of date of publication.