Best Bank for Savings Account

This list of 10 best bank for savings account will be of invaluable help when you learn that online banks offer way higher interest rates than conventional brick and mortar banks. It will be of much help especially if you are looking to keep your money in a safe place where it will earn a considerable amount of interest. It wouldn’t hurt if you would get several other value addition services from the bank. Everything is now going digital and banks are not being left behind. There is a group of companies, some of them with massive resources, operating online only banks.

Ally Bank
Out of all online banks, Ally probably deserves more airtime than the rest. The bank has all its operations online and it has provided many avenues through which people can make deposits. You can make deposits to this bank by conventional mail which is surprising given its seemingly non-existent physical form. Highly advanced mobile apps can also be used to conduct business with the bank. The bank provides its customers with ATM cards to access their money from any cash dispensing machine. What’s more, any ATM charges by other banks are refunded by Ally Bank.
American Express Bank
Many people know American Express Bank as a credit card company. Even with its credit card business, the bank has a whopping $21 billion in deposits. The banking activities of the American Express Bank are conducted exclusively over the Internet and only one physical location. It is one of the best banks for savings accounts interest and the deal only gets sweeter the higher the amount you deposit. This bank has among the best interest rates at 0.86% — 0.2% higher than Ally Bank.
Sallie Mae Bank
This bank has less in terms of deposits compared to both Ally and American Express banks. However, it has a more diverse product range than the two. In addition to deposit accounts, the bank also offers student loans as well as insurance services. Sallie Mae Bank has its specialty in online banking services just like the two. To do some nit-picking, Sallie Mae’s website is not nearly as user-friendly as that of Ally bank. However, it still has all the functionality. The interest rates on money saved at the bank isa tad lower than American Express at 0.85%.
Barclays Bank
This article is primarily meant to compare banks savings accounts and one of the main points of saving money at a bank is to benefit from the interest paid. Interest rates are extremely important especially to people who save large sums of money. A new entrant in the online banking scene is Barclays bank and its entry into the market has caused some ripples. The bank offers 1% interest on deposits and its accounts have no minimum deposit and no maintenance fee. Barclays is still quite new however unlike the rest that have a proven track record.
FNBO Direct
It is one of the banks that offer online banking services and it also has an attractive interest rate on savings. The interest rate on savings is 0.85%. This bank gets additional credit because it was named by the Money Magazine as the best place to put cash that you are going to need in a hurry. The company is FDIC insured which means that you cannot lose your money even if the company becomes insolvent. This is because the government reimburses all customers of FDIC-insured companies to the tune of $250,000. The bank has a minimum deposit which is set at a paltry $1.
Discover Bank
Yet another best bank to open a savings account is Discover Bank, an FDIC-insured bank. it has a minimum opening deposit of 500 dollars and no charges whatsoever. There is no minimum balance charged for savings accounts held at this bank and no maintenance fee is charged. The interest paid on savings at the bank is at a rate of 0.80% per annum. There are several ways to fund an online bank account held at Discover Bank including bank transfer from other bank accounts. The online account can be accessed via a dedicated mobile application.
CapitalOne 360
Capital One offers savings account which earn interest at the rate of 0.75% per annum. The bank has absolutely no charges on transactions. There is no minimum fee charged by the bank no matter what type of account you open. The bank has conducted its online banking business since 2000 and it was renamed in 2013. Previously it operated as ING Direct. The account can be operated from anywhere with an Internet browser and an Internet connection. Also on the list of products are home equity loans and mortgages. You can only make deposits up to $1 million.
SmartyPig
It is an online savings vehicl that offers a savings account and many incentives to open accounts. Savings goals can be converted into gift cards which earn you bonuses on your savings. Accounts held at SmartyPig earn interest at the rate of 1% per annum – one of the highest in the industry. SmartyPig is not a bank per se but provides highly competitive savings account that rival many online banks in the market. This grants it a place on this list.
CIT Bank
Back to banks now and we dive straight to CIT Bank. It is one of the best banks for savings accounts.It was founded in 1908 in St. Louis and it has been providing financial services for over a century. CIT is an institution that serves both consumers and small businesses. It provides savings accounts, custodial accounts, and certificates of deposit. Online savings accounts with CIT bank earn interest at the rate of 0.80% per annum if they are between 100 and 24,999 dollars. Amounts over 25,000 dollars earn 0.9% interest per annum.
Bank of Internet USA
This bank operates online accounts with no monthly fee. There is no minimum balance for accounts held at the Bank of Internet USA. The bank offers customers with several avenues through which to fund their accounts. One avenue that is a favorite to many people is to deposit checks to the account. Interest paid on money saved at the bank is 0.61% per annum. The bank has a minimum deposit which is set at $100 and no upper limit.
Emigrant Bank
To complete this list is a bank with a patriotic spirit. The Emigrant Direct orAmerican dream savings account is operated by the Emigrant Bank. Any person can open an account at this online bank. The savings account has no minimum balance and there is no monthly fee charged on the savings held at the bank. Savings held at the bank earn interest at the rate of 0.50% per annum.
Conclusion
Banking online is a very convenient way to keep money safe and access it any time of day or night. The institutions featured above offer savings accounts with varying interest rates. Competition and the state of the economy have driven interest rates paid by the banks to within fractions of each other. This makes it difficult to choose the best bank for savings account.