The Best Savings Account Interest Rates 2021

Table of Contents:

1. An Overview to Savings Account

2. Why should I care about the best savings account rates?

3. 8 Best Savings Account Interest Rates 2021

4.  Conclusion

Worried about lower interest rates on a savings account? In this article, we will discuss some best savings accounts interest rates that you will find in 2021. Many banks are now offering a higher interest rate on saving accounts. Let’s check them out…

An Overview

What is the point of having a savings account? 

When it comes to finding safe instruments for parking surplus funds, Savings Account and Fixed Deposits offer guaranteed returns. The purpose of a savings account is to hold your money in a secure location and you also get a fixed amount of interest rate. Though you get some interest on your savings, it might not appear a good choice if you’re paying back debts that have higher interest rates. However, when it comes to an emergency fund, a savings account is worth having.

Why should I care about the best savings account rates?

A savings account gives you a place to maintain liquidity and pay for an unexpected financial situation. Think about it, if you were to invest all your money and don’t have anything in savings, how would you manage to pay for an emergency expense? This is where a savings account proves to be a great choice and the biggest reason you need to care about the best savings account rates.

Offered by banks and credit unions, savings account allow you to deposit or withdraw money quickly and conveniently. Even with all the financial options, savers can choose from, a savings account is a popular choice.

Here’s what should you use a savings account for…

- Emergency fund - It is always good to have some money saved for challenging financial situations that may arise anytime.

- Large Purchases - For expenses such as buying a car or going on vacation need a good amount of money and savings can serve the purpose.

- House Down Payment - For making down payments for your dream home, you may need some money.

- Fees for College - A savings account can be a good option if you are planning to collect some money for your college fees.

8 Best Savings Account Interest Rates 2021

A savings account is a good place to keep money safe but not a great one to earn money as interest rates are pretty low. However, with some research and know-how, you can earn a good interest rate on your savings. Today, a lot of reputable banks and credit unions offer good interest rates that make savings account worth considering.

In this section, we’ve reviewed some popular banks and credit unions to find the best interest rates on a savings account. These banks offer good interest rates to customers nationwide and you can earn a good return with low minimum deposit requirements. We’ve also included some money market accounts that function like savings accounts.

We’ve considered the Annual Percentage Yield (APY) offered by these banks to help you compare the options available. Please note that APYs keeps on changing and you should take into account the most recent ones for a better idea.  

Check out the list…

1. Varo Savings: Founded in 2015, the U.S.-based fintech company, that has received a national bank charter, offers a basic bank account as well as an online checking account and savings account. There is no minimum opening deposit or ongoing balance requirements and it has an automatic savings feature. However, the option may not be suitable for those who need a more robust suite of services.

2. Customers Bank: Formed in 2009, this bank is known for its account offerings including savings, checking, loans, and money market accounts. You can access the Money Market Savings Account online in selected regions with no monthly fees. However, it requires a minimum of $25,000 to open and you don’t get any interest if the balance drops below that amount. As far as the interest compounds are concerned, it is credited monthly.   

3. Sallie Mae SmartyPig Savings: An online savings account by Sallie Mae Bank and it lets you create as well as track savings goals. There is no minimum deposit or ongoing balance and the interest rates are also competitive to grow your money faster. If you have deposits greater than $10,000, you can earn the highest interest rates, and the interest rate is compounded daily and credited monthly.

4. CFG Bank: Founded in 1927, the bank pays a good amount of APY in the online CFG High Yield Money Market Account. Though the website is not functional enough to offer an outstanding user experience, you will get high-interest rates. There is a minimum requirement of $1,000 to open the money market account to avoid a monthly fee. However, you need to maintain a minimum daily balance of at least $25,000.  

5. MutualOne Bank: Founded in 1889, this is one of the oldest banks and allows anyone to join regardless of their location. However, the bank has only three ATM locations that are based in Massachusetts. You will find a full suite of bank accounts and loans including an Online Savings Account. As far as the minimum deposit limit is concerned, you need to maintain a minimum deposit of $500 and the interest is credited monthly.   

6. Fitness Bank: An online division of Newton Federal Bank, the bank is based on your fitness activity. This is a kind of new concept where you get the max APY when you Lon an average of at least 12,500 septs daily with your Fitbit, Garmin, Apple Health, or Google Fit Fitness tracker. You must open the FitnessBank app at least monthly to log your stops to earn interest and the account requires a minimum of $100 to open.   

7. SFGI Direct: An online division of Summit Community Bank that believes in keeping things simple by offering just an Online Savings account. You need $500 to open the account and earn that rate on balances of at least one $1. There is no monthly maintenance charge for this account and the interest is compounded daily and credited monthly. Also, there are no fees or lower rates if you draw down your account.

8. Vio Bank: The online division of MidFirst Bank, this bank requires $100 to open but there are no monthly fees for using online statements. In case you need to withdraw all your money from your account and the balance fall to zero, you still don’t have to pay monthly fees. As far as the interest is concerned, it is compounded daily and credited monthly. The best thing is, the customer service is available till evening and seven days per week.  

9. Affirm Savings: A fintech company known for issuing point-of-sale loans for retail purchases through Cross River Bank. The bank offers high-yield savings account that you can access via a companion app. As far as the minimum deposit is concerned, there is no minimum requirement or monthly fees. Interest is compounded daily and credited monthly with no ongoing balance requirements.                      

10. ConnectOne Bank: Founded in 2005, the bank allows you to open accounts online such as a high yield online savings account. As far as the minimum requirement is concerned, the account requires $2,00 to open and you need to maintain the same amount to earn the advertised interest rate. Also, there is no monthly fee and the interest is compounded daily and credited monthly. You can also find an array of products and services at ConnectOne.     

11. TAB Bank: Began its operations in 1998 with a focus on the transportation industry, the bank has no minimum initial deposit for opening the high-yield savings account. With just $1 in your account, you can earn the highest rates and there are no monthly fees. Also, you can open a variety of other accounts at the bank such as checking, money market, business bank accounts, CDs, etc. A full range of accounts is available to choose from.          

12. American Express: Opening a high yield savings account with this bank gives you 0.50% APY and there are no minimum and no monthly fees. Also, you can enjoy 24/7 customer service along with customer-friendly features. The bank offers features like up to 9 withdrawals or transfers per month, FDIC insured, round-the-clock access to money, simple transfers, and auto deposits. The interest is compounded daily and credited monthly.

13. Marcus: This bank by Goldman Sachs offers a fixed rate and no fee personal loan to its customers. The bank offers unsecured personal loans from $3,500 to $30,000 with rates ranging from different 6.99% to 23.99% APR and period ranging from 36 to 72 months. As far as opening a savings account is concerned, there is no minimum requirement and it gives you 0.50% APY.    

14. Alliant: Opening high-yield savings account with this credit union means you get 0.55% APY $0 monthly service fees if you choose eStatements. You can access your Alliant accounts 24/7 and deposit checks from your smartphone. Some of the features include high savings rates, rich reward cards, low loan rates, and fewer fees. It provides an APY of 0.55% and the interest is paid on the last day of month if you’ve maintained a daily balance of $100 or more.      

15. Nationwide: The bank offers 0.40% APY when you open a savings account and there are no minimum balance requirements. Also, you don’t have to pay any maintenance fees and the interest is compounded daily and credited monthly. The bank provide a complementary suite of digital banking tools and a $100 deposit to open your account. The digital banking toolbox include free mobile deposit, online bill pay, mobile banking, and a no-hassle switch kit.  

16. Purepoint: Opening a high-yield savings account with this bank gives you 0.40% APY on online savings but you need a minimum balance of $10,000. The main products include a savings account, CDs, and no-penalty CDS. As far as customer service is concerned, you can enjoy it online or by phone via the Client Support Centre.

17. CiTBank: With a savings builder, you can get up to 0.45% APY by maintaining a balance of $25,000 or a $100 monthly deposit. For opening a savings account, you need $100 as the minimum opening deposit. There are no account opening or maintenance fees and the interest is compounded daily. It gives a limit of six transactions per statement cycle.

18. FNBO Direct: The online savings account gives you 0.40% APY and you can open an account with as little as $1. Also, you can access your money anytime with easy transfer options and receive money using your FNBO Direct accounts. There is no monthly minimum and no monthly fees. The minimum deposit to open is $1.00 and a minimum balance for APY $0.01%.

Conclusion 

A high-interest savings account or high-yield savings account helps you grow your money by opening a savings account. The interest rates on a savings account may vary from bank to bank and as you earn interest on your savings, your money grows. However, there are several factors that you need to consider while looking for a high-yield savings account such as…

- Low fees are crucial to earn as much as possible

- Select a bank that is convenient and safe to work with.

- Banks should be FDIC-insured and provide enough safety.            

As the interest rate on savings accounts changes over time, make sure you know the most recent rates before opening an account.