How To Select The Best Savings Account? And Why Do You Need

The highest annual percentage yield (APY) on a savings account currently offered in the country is 2.61%, provided by UFB Direct. This is one of the top rates you can discover in the rankings below, and it’s 20 times higher than the national savings account average of 0.13% APY set by the FDIC.

Even the tenth-best rate on the list, drawn from our weekly rate analysis on more than 200 banks and credit unions that provide nationwide savings accounts, pays 2.15% APY. The top savings account rates offered by our partners are listed below, followed by a list of all the greatest savings account rates available countrywide.

	List Of Best Savings Account:
1	UFB Direct – 2.61% APY
2	TotalDirectBank – 2.60% APY
3	CFG Bank – 2.55% APY
4	Fitness Bank – 2.50% APY*
5	Ivy Bank – 2.30% APY
6	Prime Alliance Bank – 2.26% APY
7	Bask Bank – 2.20% APY
8	My Banking Direct – 2.20% APY
9	TAB Bank – 2.16% APY
10	BrioDirect – 2.15% APY

List Of Best Savings Accounts:

This week’s highest savings rates in the country are listed below in order of APY. In cases where more than one institution has the same rate, we have classified the accounts with the lowest minimum current balance requirements.

Table of Contents

UFB Direct, High Yield Savings Account – 2.61% APY

Minimum initial deposit: $0
Minimum ongoing balance: $0
Monthly fee: None
ATM card: Yes
Mobile check deposit: Yes
Checking accounts available: No
CDs available: No

Total DirectBank, Money Market Account – 2.60% APY

Minimum initial deposit: $2,500
Minimum ongoing balance: $2,500 to earn stated APY
Monthly fee: None
ATM card: No
Mobile check deposit: Yes
Checking accounts available: No
CDs available: Yes
Note: Customers can access TotalDirectBank anywhere in the country, with the exception of Florida.
Note: Despite having the term “money market” in its name, this account doesn’t allow check writing and instead functions like a savings account.

CFG Bank, High Yield Money Market Account – 2.55% APY

Minimum initial deposit: $1,000
Minimum ongoing balance: $1,000 to earn stated APY
Monthly fee: None with a balance of $1,000 or more; otherwise, $10 each month
ATM card: No
Mobile check deposit: Yes
Checking accounts available: No
CDs available: Yes
Note: Even though the account is called a “money market,” checks cannot be written on it; instead, it functions as a savings account.

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Ivy Bank, High-Yield Savings Account – 2.30% APY

Minimum initial deposit: $2,500
Minimum ongoing balance: $2,500 to earn stated APY
Monthly fee: None
ATM card: No
Mobile check deposit: Yes
Checking accounts available: No
CDs available: Yes

Fitness Bank, Savings Account – 2.50% APY*

Minimum initial deposit: $100
Minimum ongoing balance: $100 to save money on upkeep
Monthly fee: None with a balance of $100 or more; otherwise, $10 each month
ATM card: No
Mobile check deposit: No
Checking accounts available: No
CDs available: No
*Note: Your daily step total must average 12,500 to receive the greatest rate according to the Fitness Bank app. However, lesser step counts are available in higher APY categories. When this account is combined with a Fitness Bank checking account, the rate is increased.

Bask Bank, Interest Savings Account – 2.20% APY

Minimum initial deposit: Any amount
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card: No
Mobile check deposit: Yes
Checking accounts available: No
CDs available: No

Prime Alliance Bank, Personal Savings Account – 2.26% APY

Minimum initial deposit: Any amount
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card: No
Mobile check deposit: Yes
Checking accounts available: Yes
CDs available: Yes

My Banking Direct, High Yield Savings Account – 2.20% APY

Minimum initial deposit: $500
Minimum ongoing balance: $0
Monthly fee: None
ATM card: No
Mobile check deposit: Yes
Checking accounts available: Yes
CDs available: Yes

TAB Bank, High Yield Savings Bank – 2.16% APY

Minimum initial deposit: Any amount
Minimum ongoing balance: $1
Monthly fee: None
ATM card: No
Mobile check deposit: Yes
Checking accounts available: Yes
CDs available: Yes

BrioDirect, High-Yield Money Market Account – 2.15% APY

Minimum initial deposit: $25
Minimum ongoing balance: Any amount
Monthly fee: None
ATM card: No
Mobile check deposit: Yes
Checking accounts available: Yes
CDs available: Yes
Note: Despite having the term “money market” in its name, the High-Yield Money Market account does not permit check writing and instead functions as a savings account.

What Benefits Come With a Bank Savings Account?

By opening a savings account, you can maximize the returns on the money you keep in a bank or credit union. The majority of checking accounts do not offer interest, and those that do only offer a small amount. However, some checking accounts do.

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Anyone who has more money in the bank than is necessary to sustain their checking account’s daily transactions has the option to transfer excess funds to an account generating a competitive interest rate through a savings account.

Another benefit of opening a savings account is the freedom to organize your finances according to your needs and goals. A savings account, for instance, can be used to manage your emergency fund or to set aside funds for a major purchase like a home or a far-off vacation. You can easily distinguish this money from the ones available in your checking account for routine needs like bills and groceries by keeping them separate in a savings account.

What Are Some Uses for a Savings Account?

Savings accounts serve as a safe place to save cash that is also accessible when you need it; this is referred to as high liquidity in the financial world. These qualities make savings account perfect for short-term monetary requirements and objectives like:

Emergency fund: An emergency fund is a savings account or other financial account that can be used in case of unexpected expenses. A rule of thumb is to store enough money to cover three to six months of living expenses. While saving a large sum of money may seem difficult, making small contributions each week can help you reach your goal. A savings account is a good place to stockpile your money.

House down payment: In the first quarter of 2022, the average down payment for a home was $25,200, according to ATTOM Data Solutions.

Large purchases such as a car or vacation: Similar to how they were in the 1960s and 1970s when banks frequently provided “holiday club” voucher booklets to assist savers in staying on track with their objectives, these are still common applications for savings accounts.

Seed money for college. A savings account can serve as a central repository for all of your college earnings if you’re just starting to collect them from multiple sources, such as family or summer jobs.

As your financial goals shift from short-term to long-term, savings accounts lose their appeal because they are meant to hold money, not grow it. For example, you may want to put your college savings into a 529 plan, a tax-advantaged investment vehicle.

Some people believe that putting their money in a savings account is a form of investing, butBuffet has said that this is actually the worst type of investment you can make. And a savings account is more or less a place where you store cash.

Some investment experts have said that saving money in a regular savings account is like putting money in a shoebox. There are some risks associated with savings accounts, but they are covered by federal insurance. But, as a rule, interest earned on savings accounts doesn’t keep up with inflation, so over time, keeping money in a savings account will result in a loss.

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How Do You Open a Savings Account?

Three typical procedures are used by savers to open accounts:

In-person. Opening a savings account in person at a bank or credit union branch is still the most common way to do it. In fact, a lot of customers still favor this choice since it gives them the chance to speak with a bank or credit union staff in person.

You’ll need to bring enough money to open your account, either in cash, a check, or a debit card, to satisfy the bank’s minimum balance requirement. To avoid wasting time, check ahead of time.

Ensure that you have your Social Security number on hand and bring valid photo identification with you, such as a driver’s license or passport. When opening a joint account, both partners must be present and in possession of valid identification. You must have an adult present to sign in as the account custodian if you are under the age of 18.

Online. You can open a savings account online at both traditional banks and banks that exclusively operate online. You will need to supply information from an authentic government ID and your Social Security number, just like you would in person. Use a debit card or supply the routing and account details from another account if you need to make an opening deposit.

Through phone. The process is quite similar to opening an account online. However, a customer service agent will guide you through it. One benefit of applying over the phone as opposed to online is that you can ask questions and receive immediate responses as you go.

You may be denied a savings account even when you are bringing your money to the bank. Unpaid fines, poor credit, overdrafts on other accounts, a fraud conviction, and rejected checks are a few of the causes.

Insufficient identification is another reason prospective account users are denied, although this is simple to prevent if you carry your certified photo ID.

Conclusion

A savings bank account is designed to help people form the habit of saving while also providing them with access to their funds when they need them. The primary benefit of a savings account is its high liquidity and security. You can also earn a moderate interest rate on a savings account that is also heavily loaded with savings.

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