Earning Interest

The Best CD Rates – April 2020

Friday, April 3, 2020

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Nick Clements

Lauren Perez

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Updated April 3, 2020

The best CD rates are offered by online banks and credit unions. As of April 2020, the best CD rates offered by online banks out-yield average CD rates from brick-and-mortar institutions by as much as 0.75%. This can mean the difference of thousands of dollars in interest earnings over several years when comparing current rates.

If you’re looking for the highest yield on your savings and want the added safety of an FDIC-insured product, a high-rate CD from an online bank could be a great option.

Every week, MagnifyMoney’s elite team of financial experts compiles the best CD rates from hundreds of banks and credit unions nationwide. We’ve compared rates across the most popular CD terms – from as short as 3-months to as long as 5-years – as well as no-penalty CDs that offer extra liquidity.

Check out MagnifyMoney’s top picks for the best CD rates below.

MagnifyMoney’s best CD rates for April 2020

To find the best CD rates, we look for the banks that consistently offer competitive CD rates month over month. This list is updated weekly and the rates are organized by 1-year rates from highest to lowest. Here are the accounts from top banks with consistently competitive CD rates:

Summary of the Best CD Rates in April 2020 Overall
Bank	1 Year APY	3 Year APY	5 Year APY	Minimum Deposit
Goldman Sachs Bank	1.85%	1.85%	1.90%	$500
Barclays Bank	1.75%	1.70%	1.70%	No minimum deposit
Live Oak Bank	1.90%	1.50%	1.50%	$2,500
Discover Bank	1.75%	1.80%	1.80%	$2,500
Rising Bank	1.55%	1.20%	NA	$1,000
Ally Bank	1.50%	1.55%	1.60%	No minimum deposit
Citizens Access	1.50%	1.55%	1.65%	$5,000
Synchrony Bank	1.50%	1.55%	1.65%	$2,000
BrioDirect	1.25%	1.00%	1.00%	$500

6 months – 6 years: Goldman Sachs Bank USA – 0.60% APY – 1.90% APY; $500 minimum deposit to open

Our advertiser Marcus by Goldman Sachs is the online consumer bank of Goldman Sachs Bank USA (the large investment bank). Your funds are FDIC insured, and Goldman offers very competitive rates. Even better: there is only a $500 minimum deposit. So, if you don’t have enough money to meet the minimum deposit of the other banks on this list, or you are looking for another bank for your savings, GS is a good option. It also doesn’t hurt that they also offer some of the best CD rates in the market today. Here are their rates:

Goldman Sachs Bank USA’s CD Rates

CD Term	APY
6-months	0.60%
9-months	0.70%
12-months	1.85%
18-months	1.85%
2-year	1.85%
3-year	1.85%
5-year	1.90%
6-year	1.90%

1 year – 5 years: Barclays Bank – 1.75% – 1.70% APY, no minimum deposit to open

Barclays is one of the oldest banks in the world. Although they’re based in London, they do have a U.S. presence and offer competitive rates on their CDs and savings account. Currently, they’re offering some of the highest CD rates in the market, and they have an edge over the rest of the institutions on this list: they don’t require a minimum balance to earn the APY or open an account. Deposit as little or as much as you’d like into a term of your choice and you can start earning interest as long as the account is funded within 14 days of opening the CD. Additionally, your funds are insured through the FDIC.

Barclays’s CD Rates

CD Term	APY
1-year	1.75%
2-year	1.75%
3-year	1.70%
4-year	1.70%
5-year	1.70%

6 months – 5 years: Live Oak Bank – 1.40% APY – 1.50% APY; $2,500 minimum deposit to open

Live Oak Bank offers a variety of financial products including personal deposit accounts, business bank accounts and loans. It was established in 2008 and is headquartered in Wilmington, N.C.

Live Oak Bank offers competitive CD rates across the board, starting with its high-yield 6-month CD. Its 1 Year CD is among the most competitive as well, with its 1.90% APY. Live Oak Bank requires a minimum CD deposit of $2,500. You’ll lost 90 days of simple interest if you make an early withdrawal from a Live Oak CD less than 24 months and 180 days of simple interest on terms longer than that.

Live Oak Bank CD Rates

CD Term	APY
6-month CD	1.40%
1-year CD	1.90%
18-month CD	1.90%
2-year CD	1.50%
3-year CD	1.50%
4-year CD	1.50%
5-year CD	1.50%

3 months – 10 years: Discover Bank – 0.35% APY – 1.80% APY, $2,500 minimum deposit to open

Discover is best known for cash back credit cards. However, Discover has also quietly built a leading internet bank that offers checking accounts, savings accounts and CDs. Discover has invested in a mobile banking app and strong on-shore customer service.Although Discover does not always have the highest rate, it is very close (within basis points) across all durations. If customer service and digital tools (like apps) are important to you, Discover is an excellent consideration. Note: you can even get a CD rate with a duration as short as 3 months. However, you would be better off opening a high yield savings account if you plan on saving the money for less than a year.

Keep in mind that all CD terms come with an early withdrawal penalty if you choose to withdraw money before your maturity date. If your Discover CD is less than one year, the penalty is worth three months of simple interest. If the term is between one to three years, the penalty is worth six months of simple interest. Four-year CDs have a penalty that is worth nine months of simple interest. Five year CDs have a penalty that is worth 18 months of simple interest and seven to 10-year CDs have a penalty that is worth 24 months of simple interest.

Discover Bank’s CD Rates

CD Term	APY
3-months	0.35%
6-months	0.65%
9-months	0.70%
12-months	1.75%
18-months	1.75%
2-year	1.75%
30-months	1.75%
3-year	1.80%
4-year	1.80%
5-year	1.80%
7-year	1.80%
10-year	1.80%

1 Year – 3 Years: Rising Bank – 1.55% APY – 1.20% APY; $1,000 minimum deposit to open

Rising Bank launched in February 2019 as the online division of Midwest BankCentre. Midwest BankCentre has been around since 1906 in Missouri and has acquired over $1 billion in assets. This bank decided to assert itself as a top competitor in the online banking space by offering competitive rates.

While most online banks have pulled back on rate offerings, Rising Bank continues to offer a top 1.55% APY on its 1-year CD. However, unlike some of the top online banks like Ally Bank and Goldman Sachs, Rising Bank requires a minimum deposit of $1,000 and caps balances at $500,000 on its CDs. If you have less than $1,000 to deposit into a CD, you’re better off choosing another online bank. If you have more than $500,000 to deposit into a CD, you may also want to consider another online bank.

Aside from its rates, Rising Bank also distinguishes its CDs with the early withdrawal penalties. If you need to withdraw from the 1-year CD early, you’ll only incur a penalty that is 90 days’ worth of interest. If you need to withdraw early from the 18 to 36-month CDs, the penalty is 180 days’ worth of interest. One thing to be aware of is that Rising Bank compounds interest every three months. Other online banks compound interest monthly, so this is a bit of a downside. Once this CD matures, you can withdraw the full balance to close the account. If you don’t withdraw the full balance ten days after the maturity date, Rising Bank will automatically renew your CD. Rising Bank has a mobile app for your convenience.

Rising Bank’s CD Rates

CD Term	APY
1-year	1.55%
2-year	1.20%
3-year	1.20%

3 months – 5 years: Ally Bank – 0.50% APY – 1.60% APY; $0 minimum deposit to open (higher APY with higher deposit)

Ally is one of the largest internet-only banks in the country. Ally’s former advertising campaign made it very clear: no branches = higher rates. And Ally has consistently paid some of the highest rates in the country across savings accounts, money market accounts and CDs. For savers with fewer funds, Ally is unique. There is no minimum deposit to open a CD. However, if you have more money, you’ll earn more in interest and in some case, earn a higher APY.And one of our favorite features of Ally: they often (although not always) offer preferential rates on renewal. Far too often banks give the biggest bonuses to new customers, but Ally has done a good job of rewarding its existing customers. All deposits at Ally are FDIC insured up to the legal limit.

Ally Bank’s CD Rates

3-months: 0.50% APY (less than $5k) 0.50% APY ($5k minimum deposit) 0.50% APY ($25k minimum deposit)	18-months: 1.75% APY (less than $5k) 1.75% APY ($5k minimum deposit) 1.75% APY ($25k minimum deposit)
6-months: 0.75% APY (less than $5k) 0.75% APY ($5k minimum deposit) 0.75% APY ($25k minimum deposit)	3-year: 1.55% APY (less than $5k) 1.55% APY ($5k minimum deposit) 1.55% APY ($25k minimum deposit)
9-months: 1.00% APY (less than $5k) 1.00% APY ($5k minimum deposit) 1.00% APY ($25k minimum deposit)	5-year: 1.60% APY (less than $5k) 1.60% APY ($5k minimum deposit) 1.60% APY ($25k minimum deposit)
12-months: 1.50% APY (less than $5k) 1.50% APY ($5k minimum deposit) 1.50% APY ($25k minimum deposit)

1 year – 5 years: Citizens Access – 1.50% APY – 1.65% APY; $5000 minimum deposit to open

Citizens Access is the online division of Citizens Bank, N.A., aimed at providing more convenient access to better banking products. Both divisions are headquartered in Providence, R.I. Citizens Bank was founded in 1828 and as of September 2019, had $150 billion in assets.

Citizens Access’ online CD accounts require a pretty high opening deposit of $5,000. However, all its terms earn at premium rates, making your savings more worthwhile. Citizens Access also offers an easy opening process to build a CD ladder with them. You’ll need to deposit at least $5,000 in each new CD, though.

When you fund any new Citizens Access CD within 10 days after opening, the bank’s CD Rate Pledge will apply, snagging you the highest interest rate offered by the bank for that CD term within those 10 days. Here are their rates:

Citizens Access’ CD Rates

CD Term	APY
6 months	1.60%
12 months	1.50%
18 months	2.10%
2 years	1.50%
3 years	1.55%
4 years	1.60%
5 years	1.65%

3 months – 5 years: Synchrony Bank – 0.25% APY – 1.65% APY; $2,000 minimum deposit to open

Synchrony used to be a part of GE, and now has an online bank that pays competitive rates. The online deposits are used to fund their store credit card portfolio – and the company is publicly traded. If you have $2,000 or more to deposit into a CD, Synchrony will offer you some of the best CD rates. However, if you have less than $2,000, you’re better off going with one of the other online banks above. Your deposit will be insured up to the FDIC limit. In a rising rate environment, this is a great way to get a high interest rate without locking yourself into a long term.

Synchrony Bank’s CD Rates

CD Term	APY
3-months	0.25%
6-months	0.50%
9-months	0.75%
12-months	1.50%
15-months	1.50%
18-months	1.50%
24-months	1.50%
36-months	1.55%
48-months	1.60%
60-months	1.65%

30 days – 5 years: BrioDirect – 0.05% APY – 1.25% APY; $500 minimum deposit to open

BrioDirect is the online division of Sterling National Bank. While its parent bank has been around for quite some time, the online division only recently launched. Right now, BrioDirect is offering a 1.25% APY on its 12-month CD. You’ll need to deposit a minimum of $500 to open the account and start receiving the 1.25% APY. If you choose to withdraw any portion of the principal, you’ll incur an early withdrawal penalty of 90 days interest. This penalty will apply regardless of whether you’ve earned that amount of interest or not. Here are all of their rates:

BrioDirect’s CD Rates

CD Term	APY
30-days	0.05%
3-months	1.00%
5-months	1.95%
7-months	1.35%
9-months	1.20%
11-months	1.35%
12-months	1.25%
18-months	1.00%
24-months	1.00%
30-months	1.00%
36-months	1.00%
48-months	1.00%
60-months	1.00%

MagnifyMoney’s best no-penalty CD rates

No-penalty CDs are unique because these accounts allow customers to withdraw from their CD without incurring an early withdrawal penalty. These CDs are an attractive offer to customers as it provides no risk if they choose to withdraw their money early. Here are some of the best no-penalty CD rates that are available nationwide:

The Best No Penalty CD Rates in April 2020
Institution	APY	Minimum Deposit Amount
Goldman Sachs Bank	1.70% APY – 1.50% APY	$500
Ally Bank	1.40% APY – 1.55% APY	$25,000
Investors eAccess	1.15% APY	$500
Purepoint Financial	1.01% APY – 0.95% APY	$10,000

7 months – 13 months: Goldman Sachs Bank USA – 1.70% APY – 1.50% APY; $500 minimum deposit to open

Similar to its regular CDs, you only need a minimum of $500 to deposit into Goldman Sachs Bank USA’s no-penalty CDs. This makes these CDs highly attractive to customers with smaller deposits. If you choose to open one of these CDs, you’ll only be locked in for seven days after you fund the account. After the seventh day, you’re free to withdraw your funds, but keep in mind that you’ll need to withdraw the full amount.

These CDs are an excellent option if you want your money to remain liquid or if you want to invest your money into an interest-earning account for a short amount of time. One thing to note is that the 7-month no-penalty CD has a much higher rate than the regular 6-month CD (1.70% APY vs 0.60% APY). The high APY makes Goldman’s 7-month no-penalty CD a fantastic option if you want to earn interest in a short amount of time. Here is Goldman’s full list of no-penalty CD rates:

Goldman Sachs Bank USA’s no-penalty CD rates

Term	APY	Minimum balance to earn the APY
7-month	1.70%	$500
11-month	1.60%	$500
13-month	1.50%	$500

11 months: Ally Bank – 1.40% APY – 1.55% APY; $0 – $25,000 minimum deposit to earn APY

Unlike the other two banks that offer multiple terms, Ally Bank only offers one term on its no-penalty CD. While Ally doesn’t require a minimum deposit to open, it does reward higher balances with higher APYs. This no-penalty CD is great for low-balance individuals who want to keep their money liquid. However, if you’re okay with locking your money into a CD for 12 months, you’re better off going with Ally’s regular 12-month CD as it has a higher APY (1.50% APY vs 1.40% APY) and doesn’t have a certain balance requirement to earn that high rate.

If you still choose to open Ally’s 11-month no-penalty CD and you need to withdraw money before the terms ends, you’ll need to withdraw your funds in full and won’t be able to do so until seven days after funding the account. Here are the tiered rates for Ally’s no-penalty CD:

Ally Bank’s no-penalty CD rates

Term	APY	Minimum balance to earn the APY
11 months	1.40%	Up to $5,000
11 months	1.50%	$5,000
11 months	1.55%	$25,000

6 months: Investors eAccess – 1.15% APY; $500 minimum deposit to open

Investors eAccess is the online division of Investors Bank, a large bank headquartered in New Jersey that was established in 1926. The parent bank currently has over $26 billion in assets. The online division was launched earlier this year and decided to introduce itself by offering a strong rate on its inaugural product, the eAccess Money Market account. It seems this online bank is slowly offering different deposit accounts, but one thing that sticks out is that it’s offering these new products with high rates.

Currently, Investors eAccess is offering two types of CDs: a 6-month No-Penalty CD and a 10-month regular CD. The 6-month No-Penalty CD is comes with a strong 1.15% APY. You need at least $500 to open the account and you’re free to withdraw from the principal amount after the first seven calendar days from opening the account without incurring any penalties. If you choose to withdraw the full amount (including any interest earned) before the maturity date, you won’t incur any penalties, but the full withdrawal will close the account. Regardless of how much you choose to withdraw from the account, the bank will send you the funds via an official Bank Check. The check will be made out to the account owner and mailed First Class to the address on file.

Investors eAccess’s no-penalty CD rates

Term	APY	Minimum balance to earn the APY
6-month	1.15%	$500

11 months – 14 months: PurePoint Financial – 1.01% APY – 0.95% APY; $10,000 minimum deposit to open

PurePoint Financial is the online division of Union Bank. Both the parent bank and this online division are backed by financial giant, Mitsubishi UFJ Financial Group (MUFG). Under the MUFG Union Bank umbrella, this institution has acquired over $130 billion in assets. As its online division, PurePoint Financial has been able to offer its customers highly competitive rates not only in CDs, but in an online savings account.

Currently, PurePoint Financial is offering an extremely competitive rate of 0.95% on its 13-month no-penalty CD. It also offers an 11-month and a 14-month no-penalty CD, but those two accounts have lower rates than its 13-month no-penalty CD. Keep in mind that you’ll need at least $10,000 to deposit into any of these CDs. If you do choose to withdraw money from this CD before the term is up, you’ll need to withdraw the full amount. You’ll also have to wait seven days after you fund the account to withdraw any of the money. Here’s a full list of PurePoint Financial’s no-penalty CDs.

PurePoint Financial’s no-penalty CD rates

Term	APY	Minimum balance to earn the APY
11-month	1.01%	$10,000
13-month	0.95%	$10,000
14-month	0.90%	$10,000

MagnifyMoney’s highest CD rates from banks and credit unions by term

The following banks and credit unions are currently offering the highest CD rates for each term.

The Highest CD Rates by term in April 2020
Time Period	Institution	APY
1 Year	Inova Federal Credit Union	2.25% APY
1 Year	Banesco USA	1.50% APY
2 Year	MAC Federal Credit Union	1.25% APY
2 Year	Synchrony Bank	1.50% APY
3 Year	Keesler Federal Credit Union	2.04% APY
3 Year	Primary Bank	2.00% APY
4 Year	Credit Union of the Rockies	2.60% APY
4 Year	Primary Bank	2.00% APY
5 Year	Hiway Federal Credit Union	2.10% APY
5 Year	Home Loan Investment Bank, F.S.B.	1.75% APY

Best 1-year CD rates

Best 1-year CD rate from a Credit Union: INOVA Federal Credit Union – 2.25% APY, $200 minimum balance

INOVA Federal Credit Union was established in 1942 to serve the financial needs of Miles Laboratories employees. INOVA has branches in California and Indiana, where it is based, plus Shared Branches around the country. You can join INOVA through an immediate family member, your employer or other organization.

For a slightly longer wait but a much more competitive rate, open an INOVA 14 Month Certificate. It requires a low $200 minimum deposit to open and start saving at its 2.25% APY. The early withdrawal penalty equals 180 days’ dividends.

Best 1-year CD rate from a National Bank: Banesco USA – 1.50% APY, $1,500 minimum deposit

Look out for Banesco USA’s BaneSmart Certificates of Deposit and their competitive interest rates. For one, its 12-Month CD earns 1.50% APY on all balances under $250,000. You need at least $1,500 to open a new BaneSmart CD.

Part of Banesco International, Banesco USA is a Florida state-chartered bank founded in 2006. It maintains branches in South Florida and one in San Juan, Puerto Rico. You can access your Banesco USA accounts online, on mobile and over the phone.

Best 2-year CD rates

Best 2-year CD rate from a Credit Union: MAC Federal Credit Union – 1.25% APY, $1,000 minimum deposit

MAC Federal Credit Union was established in 1952 to serve active duty personnel and civil service members associated with Fort Wainwright. In 2001, the credit union expanded to serve the Fairbanks community. Now, they serve customers nationwide through online and mobile banking.

You can become a member a number of ways including residence, employment, and relation to an existing member. You can also become a member if you are part of, or choose to be part of, the Polar Bear Chapter of the Association of the United States Army. Once you’re a member, you can open the 24 Month CD with a minimum deposit of $1,000 and start earning the 1.25% APY. This CD has an early withdrawal penalty that is equal to 90 days of interest.

Best 2-year CD rate from a National Bank: Synchrony Bank – 1.50% APY, $2,000 minimum deposit

A common rate-leader in the best rate climates, Synchrony Bank stands out now for its competitive 2-year CD rate in a rocky rate climate. Synchrony CDs require at least $2,500 to open. The penalty for an early withdrawal will equal 80 days of simple interest at the current rate at the time of withdrawal.

Known for its credit card business, Synchrony holds its own in the deposits space, too, with its consistently competitive deposit account rates. Synchrony CD customers can access their accounts online and on the Synchrony mobile app, but Synchrony also offers ATM access for its money market and savings account customers.

Best 3-year CD rates

Best 3-year CD rate from a Credit Union: Keesler Federal Credit Union – 2.04% APY, $1,000 minimum deposit

Founded in 1947, Keesler Federal Credit Union is based in Mississippi. It has 34 branches throughout Alabama, Louisiana, Mississippi and the United Kingdom. You can join Keesler Federal if you’re an employee of select groups, a member of select Alabama/Louisiana/Mississippi communities, a Keesler Air Force Base or Royal Air Force Bases military or a family member of a current Keesler Federal member.

Keesler Federal’s 30 Month Step Certificate requires only $1,000 to open. It earns a 1.50% APR for the first 10 months, a 2.50% APR for the next 10 months and a 3.50% APR for the final 10 months, resulting in a blended 2.04% APY.

The early withdrawal penalty if your withdrawal drops your balance below $1,000 will equal either 180 days’ dividends on the entire amount of the certificate or all dividends on the entire certificate since the date of issuance or renewal, whichever is less. The certificate will also be closed. If your withdrawal doesn’t drop your balance below $1,000, the penalty will be the same, but your account won’t be closed.

Best 3-year CD rate from a National Bank: Primary Bank – 2.00% APY, no minimum deposit

Primary Bank was established in 2015 and is headquartered in New Hampshire. The bank has acquired over $255 million in assets. If you’re interested in opening a 3-year CD with this bank, you won’t need a specific deposit amount. The bank also doesn’t have a balance requirement to earn the 2.00% APY. The bank may impose an early withdrawal penalty if you choose to withdraw from the principal early, but you’ll have to contact the bank to learn about the penalty.

Best 4-year CD rates

Best 4-year CD rate from a Credit Union: Credit Union of the Rockies – 2.60% APY, $1,000 minimum deposit

Credit Union of the Rockies was established in 1937 to serve employees of the Farm Security Administration in Denver. With membership that extends to other government agencies, select companies, organizations and geographic areas, the credit union now serves 10,000 members nationwide. The credit union provides customers with Shared Branch and ATM access through the CO-OP network

Credit Union of the Rockies offers a few Promo CDs, including a 48 Month Promo CD, for its new customers. These require a $1,000 deposit, rather than the credit union’s usual $500 deposit. The early withdrawal penalty will equal 180 days of interest. I that’s more interest than you’ve earned, your principal will not be touched.

Best 4-year CD rate from a National Bank: Primary Bank – 2.00% APY, $0 minimum deposit

Primary Bank was established in 2015 and is headquartered in New Hampshire. The bank has acquired over $255 million in assets. If you’re interested in opening a 4-year CD with this bank, you won’t need a specific deposit amount. The bank also doesn’t have a balance requirement to earn the 2.00% APY. The bank may impose an early withdrawal penalty if you choose to withdraw from the principal early, but you’ll have to contact the bank to learn about the penalty.

Best 5-year CD rates

Best 5-year CD rate from a Credit Union: Hiway Federal Credit Union – 2.10% APY, $25,000 minimum deposit

Hiway Federal Credit Union was founded in 1931 to serve the financial needs of Minnesota Department of Transportation employees. Today, membership is extended to members of select communities, employees of select employer groups, relatives and roommates of eligible individuals and members of the Minnesota Recreation and Park Foundation or Association of the U.S. Army.

You’ll need a $25,000 minimum deposit to snag this top rate from Hiway Federal Credit Union. Smaller deposits as low as $500 will still earn interest, just at lower interest rates. The early withdrawal penalty for this range of CDs equals 365 days’ dividends.

Best 5-year CD rate from a National Bank: Home Loan Investment Bank, F.S.B. – 1.75% APY, $2,500 minimum deposit

Home Loan Investment Bank, F.S.B. is offering a high APY of 1.75% on a 5 Year e-CD. You’ll need $2,500 to open the account. The early withdrawal penalty is six months’ interest on the amount withdrawn. This penalty applies to all CD terms from this bank.

Home Loan Investment Bank, F.S.B. was built with the intention of offering home loans to residents of Rhode Island. However, it has grown to offer much more than home loans. The bank currently has over $301 million in assets and continues to innovate by offering new accounts like e-CDs.

The cities that are most likely to use CDs for their savings

We recently looked at the 100 largest U.S. metros to find the cities with the highest percentage of households that own certificates of deposit.

Among the 100 largest U.S. metros, San Francisco came out on top, with 25.4% of households owning certificates of deposit. That’s more a little more than twice as many households, on a percentage basis, than Greensboro, N.C., our bottom-ranked city, where only 12.5% of households own CDs.

Typically, households in large cities are more likely to sock money away in CDs. Chicago, Los Angeles, New York and Washington, D.C. — among the 10 largest metros in the U.S. — all make our list of top 10 cities where people own CDs. There are some exceptions: Odgen, Utah ranks No. 4 in the nation for CD saving: 21.9% of Ogden households have CDs.

Variability in local CD rates may explain some of the differences, as the highest rates available by state can vary by as much as one percentage point. In fact, in Jan. 2019, Utah had the highest average local 1-year CD yield in the country.

Questions to ask before you open a CD

1. How are CDs different from savings accounts?

With a CD, the saver and the bank make stronger commitments. The saver promises to keep the funds in the account for a specified period of time. In exchange, the bank guarantees the interest rate during the term of the CD. The longer the term, the higher the rate – and the higher the penalty for closing the CD early. With a savings account, you’re limited to six withdrawals or transfers per month. Otherwise, you can empty the account at any time without paying a penalty. You can’t lock in the interest rate on a savings account, though, since the bank can change the interest rate at any time.

2. Am I better off keeping my cash in savings?

CDs work best if you’re confident you won’t need to access a certain amount of money for a specified period of time. Let’s say you have $10,000 laying around that you can safely say you won’t need to use for two years. In a high-yield savings account earning 2.45%, you would earn $496.00 over two years with annual interest compounding — and potentially even more, if your bank compounds interest more frequently. If you put that money into a 2.90% 2-year CD, you would earn $588.41 (compounding yearly) once the account matures. The extra interest income is easy money, considering the ease of opening an account online. However, if you think you might need to use the money in the next couple of months, especially if your finances are already a little rocky, a savings account is a much better idea for its better flexibility.

It’s important to note that deposit rates are a bit in flux right now, due to the uncertainty surrounding the federal funds rate (more on that below). But we’re currently seeing some high, favorable interest rates on 1-year CDs, rates that outstrip savings account rates.

If you can afford to part with the funds, “choosing a 1-year CD now does make sense rather than keeping the money in a savings account,” says Ken Tumin, founder of LendingTree-owned DepositAccounts.com. “However, it is possible that 1-year rates could go below some savings account rates.”

That’s why it’s important to compare rates before you sign up for a certain account.

Tumin also notes that there is an added tax benefit to opening a 1-year CD now over a savings account. With a 1-year CD, you can choose to have interest paid at maturity, or in 2020 on accounts opened now. Taxes would be owed on that interest for 2020, but not paid until 2021. Savings accounts, on the other hand, pay out interest each month. So a savings account opened today will generate interest income for the 2019 tax year.

3. What CD term length should I select?

The early withdrawal penalties on CDs can be significant. On a 1-year CD, 90 days’ worth of interest is a typical penalty, although it can reach as high as 180 days. On 2- and 3-year CDs, a 6-month penalty is about average. The impact of the penalty on your return can be significant: if you opened a one-year CD with a 2.65% APY and closed it after six months, you would forfeit half of the interest and earn only 1.32%. You would have been better off with a savings account paying 2.25%.

The worst case scenario is with the longest CDs. 5-year CDs usually have a one-year penalty for taking out funds early. If you open a 5-year CD and close it quickly, you could actually end up losing money.

Given the risk of early withdrawal penalties, it’s important that you’re completely confident that you will not need to withdraw the money early. Check that you already have enough savings in a flexible emergency fund to cover you for the next few years in the event of an accident or surprise trip to urgent care. Ask yourself whether your deposit would be put to better use paying off any debts. If you’re not completely convinced you can sock away that much money for such a commitment, go for a shorter CD term or a savings account.

As of right now, if you’re trying to jump on the best rates and have cash to stash away for years, your best bet is to lock in a 5-year CD to get the best rates possible.

“It doesn’t look like we’ll see another Fed rate hike in the first half of the year,” says Ken Tumin. “In the last month or two, we’re seeing some drops in CD rates.”

However, this downward movement looks like more of a correction being made by banks who may have boosted their CD rates too far too fast, instead of signaling the start of an industry-wide drop in rates.

“We won’t see a big drop until we see signs that the Fed will start cutting rates,” Tumin notes.

Tumin suggests finding long-term CDs with small or mild withdrawal penalties, like Ally. That way, in the event you do need to break into your funds (whether for an emergency or to move to a new, higher rate), you won’t lose the majority of your savings. So while there are still 5-year CDs out there with 3% APY and higher, you’re going to want to lock those in for the long term.

4. Should I consider my local bank or credit union?

The interest rates shown in this article are all from credit unions and online banks that offer products nationally. However, our product database includes traditional banks, community banks and credit unions.

If traditional banks offered better rates, they would have been featured in this article. Internet-only banks have dramatically better interest rates. That should not be surprising — because internet-only banks do not have branches, they are able to pass along their cost savings to you in the form of higher interest rates and lower fees.

If you’re worried about early withdrawal penalties, credit union CDs might be your best bet; on average, they tend to have lower penalties than banks. Pair that with high credit union CD rates, and you’ve got a winning savings combo. (Interestingly, while internet banks tend to offer the best CD rates, they also tend to assess bigger early withdrawal penalties than brick-and-mortar banks.)

How to find the best CD for you

If you don’t find an account that meets your needs in this article, you can use the MagnifyMoney CD tool to find the best rate for your individual needs. Input your zip code, deposit amount and term. The tool will then provide you with CD options, from the highest APY to the lowest.

Even though CDs are traditionally pretty structured, you still have hundreds of options available to you. If your savings goal is years in the future, look closer at longer terms like 5- and even 10-year accounts. If you don’t quite have thousands of dollars to stash away, you can find a bank that requires a lower minimum deposit, if at all. You can also find select no-penalty CDs, which tend to be around one year long or less.

You can learn more about us and how we make money here.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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The Best High-Yield Online Savings Accounts in April 2020

Friday, April 3, 2020

Nick Clements

Lauren Perez

Start saving today with these high-yield bank accounts

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and I have $

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Updated April 3, 2020

The best online savings accounts provide consumers with interest rates that are, on average, 1.47 percentage points higher than the rates offered by traditional brick-and-mortar banks as of March 2020. Every week, MagnifyMoney’s elite team of financial analysts reviews and compiles the best savings account offers from dozens of online banks.

If you’re still skeptical about switching to an online bank, consider the facts:

Online savings accounts offer higher rates, and you often end up saving on the cost of the account. With lower overhead costs, online banks typically charge lower fees.
Your funds are just as safe stashed with an FDIC-insured online bank as they would be with the bank branch on Main Street.
Many online banks offer round-the-clock customer support and online chat features that make it easy to resolve issues 24/7, without ever needing to visit a branch.

Our weekly picks of the best online savings accounts with high yield rates are featured below:

1. High Rate: Goldman Sachs Bank USA – 1.70% APY, no minimum balance (but no ATM access)

High-yield Online Savings Account from Goldman Sachs Bank USA

Our advertiser Marcus by Goldman Sachs, the consumer bank of Wall Street giant Goldman Sachs, offers a 1.70% APY on deposits. There isn’t a minimum balance requirement to earn the APY and there are no transaction fees. Upon opening the account, you can deposit funds via electronic transfer, wire transfer, or deposit by check. You can get access to your funds via electronic transfer or wire transfer.

Goldman has been investing heavily in Marcus, its online consumer bank. Marcus is already offering some of the best savings accounts and personal loans in the market, and further expansion is expected. The savings account has consistently been paying one of the highest rates in the market. With a 1.70% APY, you can get one of the highest rates in the market from a well-known brand. The maximum deposit is $1,000,000 and deposits are FDIC insured up to the $250,000 limit.

Marcus is accessible both online and via the Marcus mobile app, available only in the Apple App Store.

2. High Rate: American Express National Bank – 1.60% APY, no minimum balance (and no fees)

Our sponsored advertiser, American Express National Bank, offers a Personal Savings account, which earns a 1.60% variable Annual Percentage Yield (APY) as of 3/25/2020. The account charges no monthly fees and requires no minimum deposit, making it an affordable account to open. You must fund your account within 60 days of applying for the account, and the FDIC insures your deposits up to $250,000. Overall, the account is a great option for anyone who wants the flexibility of earning a high interest rate on a sum of money you’ve stashed away, minus the withdrawal restrictions of a certificate deposit.

3. High Rate: Barclays Bank – 1.50% APY, no minimum balance

Barclays is a large, old British bank, based in London and with more than 325 years of history. Although Barclays is huge in the United Kingdom, it is a challenger brand in the US. Barclays offers savings products with highly competitive rates. These deposits are used to fund their rapidly growing American credit card business. The online savings account has a 1.50% APY with no minimum balance to open and no monthly fees. Your deposits are FDIC insured up to the legal limit. The Barclays website has a good look and feel. And you can have the confidence of keeping your money with one of the world’s largest and oldest universal banks.

4. Favorite Online Package: Ally Bank – 1.50% APY, no minimum balance and you can get a free checking account

Ally is a bank without branches that had been consistently paying high interest rates on savings accounts. While Ally is still offering rates way above what brick-and-mortar banks are offering, it seems this online bank no longer wants to be seen as the online bank with the most competitive rates. The current APY on Ally’s savings account is 1.50%. Although Ally has dropped its rate significantly, we still favor this online bank. It doesn’t require a minimum balance to earn the APY and, even better, you can open a free checking account (also with no minimum balance requirement). This makes access to your savings account incredibly easy – because you can transfer funds online (or via the app) and have immediate access via checks, debit cards and ATMs. With an Ally account, you will have access to their full suite of expanding (and market-leading) products such as CDs, money market account, checking account, and IRA accounts.

5. High Rate: Capital One – 1.50% APY, no minimum balance

A consistent rate leader for its deposit accounts, Capital One now offers its 360 Performance Savings. With a 1.50% APY on all balances and no monthly fee, you get a chance to boost your savings uninterrupted. There are no minimum balances required to open or maintain the account, either.

Capital One is able to offer higher rates and lower (to no!) fees on this online savings account compared to traditional in-branch offerings. Still, you can head to a Capital One branch or Capital One Café to open a new 360 Performance Savings account, if you prefer. You cannot use an ATM to withdraw or deposit funds, but you can visit a branch, call the bank or make your own online transfer. You can access all accounts on your mobile device through the Capital One app, as well.

6. High Rate: Discover Bank – 1.50% APY, no minimum balance

Discover Bank is famous for its credit cards. But it also has an online consumer bank. The savings account pays 1.50% APY. There is no minimum deposit or balance requirement, opening this savings opportunity to all kinds of savers. Discover doesn’t charge a monthly fee, either, nor an excessive transaction fee.
Discover provides customers with on-the-go access through its mobile app, which includes mobile check deposit.

7. High Rate: Vio Bank – 1.75% APY, $100 to open

Vio Bank is the online division of MidFirst Bank, a national private financial institution with over $16 billion in assets. Vio Bank was recently created and is not yet as established as Marcus, Barclays, American Express, Synchrony, and Ally Bank. However, this online bank launched its High Yield Online Savings account with a strong APY (at the time of its launch) and has been consistently competitive since it launched. It’s currently offering an outstanding 1.75% APY on all balances. You only need $100 to open the account. You can fund the account via ACH.

There are a few limitations to keep in mind: incoming ACHs take anywhere between two to five business days to post and the online bank may place a hold your ACH for two or three business days. When you’re ready to transfer funds out of the account, you’ll be limited to $5,000 per outgoing ACH. You’ll also be limited to transferring an aggregate monthly total of $20,000 via outgoing ACHs. As is with every other savings account, you’ll also be limited to making six withdrawals per monthly statement cycle. The good news (aside from the high APY) is that Vio Bank doesn’t charge a monthly maintenance fee. Vio Bank also has a mobile banking app where you can conveniently manage your accounts on-the-go. Also, its website is mobile friendly so it should be fairly easy to do your online banking from a smart phone, as well. We think this online bank is very promising and hope it continues to offer one of the best savings account rates in the nation.

8. High Rate: Live Oak Bank – 1.75% APY, no minimum to open, no minimum balance to earn APY

Founded in 2008, Live Oak Bank offers a great spread of financial products, including its high-yield Online Savings account. The Online Savings account earns 1.85% APY on all balances. Plus, interest is compounded daily for faster savings. There’ s no minimum deposit requirement to open, either, nor a monthly fee to worry about.
In addition to online access, Live Oak Bank offers a mobile app.

9. High Rate: CIT Bank – 1.70% APY, $100 to open

CIT is a very large bank that you probably never heard of. It has more than $50 billion of assets and makes loans (and leases) to middle market companies and small businesses. To fund those loans, CIT operates an internet-only bank that pays some of the highest interest rates in the country.

While CIT isn’t as big as other online banks, they’re currently offering a very healthy APY of 1.70% on their Savings Builder account. You only need $100 to open the account, but you’ll need to meet one of two requirements to earn the high rate. We really like the options that CIT Bank has put in place to earn this high APY. The two ways to continue earning this high rate are:

Make a monthly deposit of $100 or more into this account
Maintain a daily balance of $25,000 or more

Even better: there aren’t any monthly maintenance fees and interest compounds daily. Deposits are FDIC insured.

10. High Rate: Citizens Access – 1.70% APY, $5,000 minimum balance amount

Citizens Access is the online division of Citizens Bank. This division was recently created to provide the best savings rates to consumers. While the online division is brand new, the bank its backed by isn’t. Citizens Bank has been around for a while and has grown to have over $122 billion in assets. While you need to deposit and maintain a minimum balance of $5,000 to earn the 1.70% APY, you’ll be funding an account that comes with no fees. If your balance happens to fall below $5,000, the APY will drop to 0.25%. One downside to this online-only bank is that they don’t currently have a mobile banking app. This means that you’ll have to do all of your banking through their website. Luckily, their website is mobile-friendly.

11. High Rate: Synchrony Bank – 1.50% APY, no minimum balance, (and ATM access)

Synchrony Bank pays a healthy 1.50% APY. There is no minimum balance requirement and no monthly fee. In addition to the great rate, you can get an ATM card. Most internet-only banks require you to transfer funds electronically, which can take a few days. If you ever need quick access to your funds, the ATM card makes access easy. You might not recognize the Synchrony brand in the banking space, but it is a large, well-capitalized business. Synchrony used to be a part of General Electric (GE), and was spun out as a separate company. Unfortunately, the digital experience is not the best, but they now have a mobile banking app.

12. High Rate: CIBC Bank USA – 1.45% APY, $1,000 to open

CIBC Bank USA is the U.S. division of a Canadian based bank. This division was established in 1991 and has since acquired over $27 billion in assets. Currently, CIBC Bank USA is offering an online-only Agility Savings account with a competitive APY of 1.45%. You’ll only need $1,000 to open the account. While there isn’t a monthly maintenance fee, you may be charged $10 if you make more than six transactions per statement cycle. CIBC Bank USA does have a mobile banking app, but make sure that you download the app for the U.S., not Canada.

13. Unique Bank + Highest Overall Rate: Fitness Bank – 2.10% APY, $100 minimum to open

Fitness Bank is unique and new online bank. It’s a division of Affinity Bank, which has been around since 2002 and has acquired over $318 million in assets. Affinity Bank decided to launch a concept like no other to reward actively fit individuals with the highest APY currently available. While most institutions choose to offer tiered rates based on balance amounts, Fitness Bank offers tiered rates based on the average number of steps you take on a daily basis. To earn the high 2.10% APY, you’ll need to take an average of 12,500 steps or more per day. If you only take an average of 10,000 to 12,499 steps per day, you’ll earn an APY of 2.00% (which is still a great APY). You’ll earn 1.75% APY if you take an average of 7,500 to 9,999 steps per day. Taking an average of 5,000 to 7,499 steps per day will qualify you for an APY of 1.25%. Finally, if you take anywhere between 0 to 4,999 steps on average per day, you’ll only earn 0.50%.

Fitness Bank will track your steps by requiring you to download its Step Tracker app. The bank will then calculate your average steps from the previous month to determine which tier you qualify for. Once the bank determines which rate your activity qualifies you for, you will continue earning that rate for an entire month until the bank recalculates your activity. The activity requirement will be waived for the first month so that you can get your app all set up and start logging in some steps. For this first month, you’ll automatically earn the 2.10% APY.

In terms of actual money, you will need at least $100 to open the account and you’ll need to maintain this balance to waive the $10 monthly maintenance fee. The bank does impose a limit on the amount of money you’re able to transfer in and out of the account via ACH. You cannot transfer more than $15,000 per day in or out of the account. You also cannot exceed more than six certain withdrawals or you’ll incur an excessive withdrawal fee of $10 for each additional withdrawal. In addition to the Step Tracker app, Fitness Bank has a mobile banking app to manage your account.

14. High Rates on two savings accounts: CommunityWide FCU – 2.00% APY or 1.90% APY, $1 minimum to open

CommunityWide Federal Credit Union was established in 1967. Anyone can become a member of this credit union by joining Habitat for Humanity Helpers, Marine Corps. League of St. Joseph Valley, or Michiana Goodwill Boosters. You may also qualify through your employer or a relative who’s an existing member.

Once you become a member of CommunityWide FCU, you’ll be able to open one of two unique savings accounts: High Rate Account and Funds Account. These accounts act like a hybrid between a savings account and a CD since the credit union only allows you to withdraw from these accounts during a specific time period.

The High Rate Account currently earns 2.00% APY. You only need $1 to open the account and earn the APY. While you can deposit money into the account anytime, you’ll only be able to withdraw from the account within the first five (5) days of each quarter. If you withdraw money outside of this window, you’ll incur a withdrawal penalty that is equal to 30 days dividends.

If withdrawing money once a quarter isn’t feasible for you, you can open the Funds Account instead. This account allows you to withdraw money within the first five (5) days of each month. The minimum to open and earn the APY is still $1, but the APY drops to 1.90%. If you withdraw money from this account early, you’ll incur a penalty that is equal to 7 days dividends. These accounts are unique as they really help you save money while still giving you flexibility to withdraw within a certain timeframe.

15. High Rate: First Foundation Bank – 1.75% APY, $1,000 to open

First Foundation Bank officially launched in 2008, but its leadership has been in the financial services industry since 1990. This bank was established by the same group that leads the Keller Group, a wealth management firm. The bank has grown to acquire over $6 billion in assets. In October, this bank launched an Online Savings Account with a high APY of 1.75%. You’ll need to have a balance of at least $1,000 in order to open that account and you’ll need to maintain that amount in order to earn the high APY. If your balance falls below $1,000, the APY will drop to 0.10%. This account doesn’t have a monthly service fee.

While Regulation D applies to this account, First Foundation Bank will provide an ATM card if you request one from the bank. The bank will reimburse ATM fees from other banks and ATM operators up to $20. There is a limit to the amount of money that you can withdraw. If you’re withdrawing from an ATM, the bank sets a daily limit of $500. The daily point-of-sale limit is $1,500. If you’re transferring money online or via ACH, the daily limit is $5,000 and the monthly limit is $10,000. If you need to transfer more than the preset limits, you’re able to call the bank and request that they increase the limit. The bank allows you to maintain the account online and through their mobile banking app.

16. High Rate: SFGI Direct – 1.71% APY, $500 to open

SFGI Direct is Summit Community Bank’s online division. They currently have more than $2 billion of assets and is privately owned by Summit Financial Group, Inc. SFGI is FDIC insured through Summit Community Bank, so deposits are protected up to the legal limit. They are currently offering a good rate of 1.71% on balances of $1 or greater. You’ll have to deposit a minimum of $500 in order to open the account, but you can’t make an initial deposit greater than $25,000. After you make your initial deposit, you’re able to add as much money as you’d like to the account. While they do offer a good rate on an online savings account, their online experience is lacking. Their website feels dated and they don’t appear to have a mobile banking app.

17. High Rate: Prime Alliance Bank – 1.71% APY, $10,000 minimum balance amount

Prime Alliance Bank was established in 2004 to provide financial assistance to local businesses and residents. However, through its online banking platform, it’s now able to reach more customers while keeping that local bank service. Today, it’s grown to acquire over $455 million in assets.

While the bank’s Personal Savings Account doesn’t require a minimum amount to open the account, you will need to have at least $10,000 in the account to earn the high APY of 1.71%. If your balance is below the amount, you’ll earn 1.61% APY. This account doesn’t have a monthly service fee. You’re able to request an ATM card and withdraw as much as you need from an ATM, but the account is limited to six certain withdrawals and transfers due to federal regulations. You’re able to maintain the account online or through the bank’s mobile app.

18. High Rate: HSBC Direct – 1.70% APY, $1 minimum to open, no minimum balance to earn APY

HSBC Direct is the online division of financial giant, HSBC Bank. Based on the amount of assets HSBC Bank has acquired to date, it is the 14^th largest bank in the U.S. While HSBC Direct may sound like a new player to the online banking game, this division was actually around prior to the 2008 financial crisis and offered extremely competitive rates. After the financial crisis, the bank renamed the online division to HSBC Advance and slowly started to decrease its online savings account rates, much like other online banks were doing around that time.

Fortunately, HSBC has decided to reenter the online banking space. Since the initial launch in July of 2018, the bank has consistently increased its HSBC Direct Savings Account rate from 1.70% APY to 1.70% APY. You only need $1 to open the account and the APY will be applied to any balance below $2 million. You may fund the account via ACH transfer and the account can be opened online. You will have to deposit new money to the account, which means that you cannot be a member of the HSBC Group in the United States. The account doesn’t have a monthly maintenance fee and all deposits are FDIC insured.

19. High Rate: Popular Direct – 1.70% APY, $5,000 minimum to open

Popular Direct, the online bank of Banco Popular North America, is currently offering an outstanding APY of 1.70% on their Popular Direct Ultimate Savings Account. You’ll need $5,000 to open this account and you’ll have to maintain a daily end of day balance of $500 to avoid the $4 monthly service fee. This account does not come with an ATM card. In order to access your money, you would need to transfer funds to and from an existing checking account via an ACH transfer, which can take a few days. Your deposits are FDIC insured. Popular Direct has a mobile banking app and provides account holders with access to online banking.

20. For Small Balance Savers: Digital Federal Credit Union – 6.17% APY up to $1k

Digital Federal Credit Union (DCU) currently offers a nice account for people who are just starting to save. You can earn an APY of 6.17% with their Primary Savings Account. You will only earn that rate on deposits up to $1,000. Once you have more than $1k, you should consider other accounts on this list. It is a credit union – and your deposits are insured by the NCUA up to the legal limit. Anyone can join the credit union by donating to one of their participating organizations such as Reach Out for Schools, which has a membership fee of $10. You’ll be able to join one their participating organizations when you go to open your account with DCU. DCU is also part of a nationwide CO-OP network that allows their members to have access to shared branches and surcharge-free ATMs throughout the U.S.

MagnifyMoney’s Best Savings Accounts for April 2020

To recap, here are our top picks of the Best Savings Accounts for April 2020.

The Best Savings Accounts in April 2020 Overall
Institution	APY	Bank Review
Goldman Sachs Bank USA High Yield Online Savings	1.70% APY	Goldman Sachs Bank USA Review
American Express National Bank Personal Savings	1.60% APY	American Express Review
Barclays Bank Online Savings Account	1.50% APY	Barclays Bank Review
Ally Bank Online Savings Account	1.50% APY	Ally Bank Review
Capital One 360 Performance Savings	1.50% APY	Capital One 360 Review
Discover Bank Online Savings	1.50% APY	Discover Bank Review

The Best Online Savings Accounts in April 2020
Institution	APY	Bank Review
Vio Bank High Yield Online Savings Account	1.75% APY	Vio Bank Review
Live Oak Bank Savings Account	1.75% APY	Live Oak Bank Review
CIT Bank Savings Builder	1.70% APY	CIT Bank Review
Citizens Access Online Savings Account	1.70% APY	Citizens Access Review
Synchrony High Yield Savings	1.50%APY	Synchrony Review
CIBC Bank USA Agility Savings	1.45%APY	CIBC Bank USA Review

The Best High-Yield Savings Accounts and Rates in April 2020
Institution	APY	Bank Review
Fitness Bank Savings	2.10% APY	Fitness Bank Review
CommunityWide FCU High Rate and Funds Accounts	2.00% APY and 1.90% APY	CommunityWide FCU Review
First Foundation Bank Online Savings Account	1.75% APY	First Foundation Bank Review
SFGI Direct Savings Account	1.71%APY	SFGI Direct Review
Prime Alliance Bank Personal Savings Account	1.71% APY	Prime Alliance Bank Review
HSBC Direct Savings	1.70% APY	HSBC Direct Review
Popular Direct Ultimate Savings Account	1.70% APY	Popular Direct Review

What should I know about savings accounts?

What is a savings account?

The definition of a savings account is a deposit account that earns interest and allows six “convenient” withdrawals per statement cycle. This limit applies to telephonic transfers, preauthorized and automatic transfers and withdrawals and transfers made by check, debit card or another similar method. Savings accounts are offered by traditional brick-and-mortar banks, online banks, credit unions and other financial institutions.

Deposits held in savings accounts at banks are typically insured by the Federal Deposit Insurance Corporation (FDIC), while credit union deposits are insured by the National Credit Union Administration (NCUA). When looking for the best savings account, always choose an institution insured by either the FDIC or the NCUA. This protects your savings account with the backing of the U.S. Federal Government in the event that your bank fails.

How do savings accounts work?

Savings accounts are interest-bearing deposit accounts that hold your money safely and securely with a financial institution. They are liquid, meaning you can withdraw your money at any time you choose. However, due to the limitations of the Federal Reserve’s Regulation D, savings accounts only allow six convenient transfers and withdrawals per statement cycle. Exceeding this limit will typically result in a fee for each additional transaction.

While almost all savings accounts earn interest, the earnings may vary depending on what type of bank you choose. Historically, we’ve seen online savings accounts out-yield traditional brick-and-mortar banks.

When should I use a savings account?

Savings accounts are most often used for general savings, and they’re a much better choice than keeping all of your money in a checking account. A high-yield savings account lets your money grow by earning a strong interest rate. Still, it’s always best to keep a financial cushion in your checking account, to cover expenses and avoid overdrafts.

You can use a savings account to house your emergency fund as well as any cash you don’t need to cover your monthly spending habits. Savings accounts are highly liquid and easy to access when you need them — certificates of deposit (CDs) and investment accounts are much less liquid — but still earns more interest than regular checking accounts.
Separate savings accounts are a great way to meet multiple financial goals. For example, you could save funds for future college tuition costs in one high-yield savings account, and money for your next vacation in a separate online savings account.

How to find the right savings account for you

Compare offers to get the best savings rate. Use our savings account comparison tool to calculate how much you could earn with different accounts. You can filter by ZIP code and size, which can help large-balance savers find better options than no-minimum options.

Don’t forget about fees. Snagging the highest interest rate isn’t always your best bet. You also want to ensure the whole account helps you earn consistent returns. For example, a high-rate online savings account might reset to a lower APY after an introductory period. Perhaps the best rate requires a balance that’s too high or too low for your needs. And watch out for monthly fees that could eat into your savings.

Compare options beyond banks. It’s easy to keep a savings account with the bank your family has banked with for generations. But you could be missing out on incredible savings by ignoring online banks and even credit unions. Online banks traditionally offer substantially higher savings account rates than brick-and-mortar banks. They’re easier on fees, too. For their part, credit unions can also be competitive rate leaders, especially for CDs.

What are the different types of savings accounts?

Financial institutions offer a few different varieties of savings accounts. For instance, a money market account is technically a type of savings account under Regulation D, but it’s often marketed under its own name.

Certain labels are applied to savings accounts to differentiate features or ownership types. For example, an online savings account is just a standard savings account that’s available online. Likewise, a high-yield savings account is simply a standard savings account that earns a high interest rate.

Differences in account ownership do not change the way savings accounts function — withdrawal limits and interest rates remain the same. That said, there are a few details worth highlighting when it comes to savings account ownership types:

Individual savings account: This is a savings account for one person. No one else can access funds saved in the account unless the savings account holder authorizes it.
Joint savings account: With a joint savings account, two or more people share equal access to funds saved in the account.
Custodial account: These accounts let a designated custodian manage funds for the benefit of a minor, who then assumes ownership of the account when they turn 18 or 21 years old, depending on the state. Common custodial accounts are associated with UGMA (Uniform Gift to Minors Act) and UTMA (Uniform Transfer to Minors Act) agreements.
Payable on Death (POD) account: This type lets the account owner choose beneficiaries who inherit the funds saved in the account after the owner passes away.

Determining which is the best savings account for you can be a difficult decision and will depend on your individual needs. However, there’s no real limit to the number of savings accounts that you can open; take some time to shop around to find a savings account that combines the highest rates, greatest convenience and still fits your unique needs.

Should I get an online savings account?

An online savings account is your best bet for obtaining the highest interest rate available. Online banks lack the costs associated with maintaining brick-and-mortar branches, and they generally pass the savings onto you in the form of better interest payouts. And like we’ve said, if your money is going to sit in an account, you might as well make it worth your while by growing it at a competitive rate.

Online savings accounts generally feature superior accessibility. Online banks are laser focused on offering the best possible and most user-friendly app experiences. There’s often 24/7 customer service, and they tend to provide very good ATM access. When shopping for the best savings account to suit your needs, make sure you include a good mix of online banks offering high yields, brick-and-mortar banks and credit unions in your search.

Can savings accounts lose money?

If your account balance remains below the FDIC or NCUA deposit insurance threshold, there is virtually no way to lose money kept in a savings account. Federal deposit insurance guarantees that you will not lose money — up to the legal limit — in the event of bank or credit union failure. If your bank or credit union were to fail, federal deposit insurance guarantees that you get your money back, either in the form of a check or a new account at another insured bank.

You can, however, lose money to fees if you’re not careful. Many savings accounts, especially at traditional brick-and-mortar banks, charge a monthly fee that can dent your savings just for owning the account. For those looking to avoid fees, we’ve found that many online savings accounts have reduced or eliminated their fees entirely.

Do savings account interest rates change?

Savings account interest rates are variable, meaning they can change at the discretion of the institution offering them. This is in contrast to fixed-rate savings vehicles, like CDs, which have set rates for predetermined periods of time.

Institutions tend to reserve the right to change their rates at any time, without warning. Luckily, there are institutions that notify you of upcoming changes, especially if it’s a substantial rate change. Each institution’s level of transparency and communication is something to consider when shopping around for the best savings account.

What impacts savings rates?

Institutions typically alter their rates in response to changes in market interest rates, which are in turn driven by the federal funds rate set by the Federal Reserve. The federal funds rate influences the rates banks lend money to each other. When the Fed increases the federal funds rate, financial institutions respond by increasing the interest rates they offer on deposit accounts. When the federal funds rate falls, interest rates decrease.

If you’re not keen on tracking the federal funds rate, changes to the APY on your savings account may come as a surprise. Luckily, chances are that if you keep your deposits with an online bank, you’ll still get the most competitive rates regardless of a Fed pause or rate decrease. Online savings accounts outperform most brick-and-mortar rates any day.

What are the typical fees associated with savings accounts?

The main fee you should look out for when shopping for any bank account is the pesky monthly service fee. These fees are charged for simply owning an account, and can range from as little as $5 to as much as $25, depending on the institution and the account. Luckily, the industry-leading best online savings accounts are free of monthly service fees.

Another common fee associated with savings accounts is the excessive transaction fee. This fee is charged each time you go over the legal limit of six transfers per statement cycle, and usually runs around $10. Some institutions, like Synchrony, do not charge an excessive transaction fee; however, they will close the account if an account holder makes excessive transactions more than occasionally.

You should also watch out for a paper statement fee. Technically this is not a monthly service fee, but many institutions charge you on a monthly basis if you choose to receive paper statements in addition to electronic statements. Some online savings accounts have done away with paper statements altogether; check with your bank to confirm their terms and conditions.

Should I have a savings account at the same bank as my checking account?

You certainly could choose to keep your savings account at the same bank as your checking account for convenience’s sake, but that doesn’t mean you should. Your savings deserve the best interest rate available, which earns you the highest possible return. If you keep your checking account with a traditional brick-and-mortar bank, you’re not likely to find the best savings account rates at the same institution.

To get the best return on your savings possible, open a high-yield savings account. These accounts are most often found at online banks, but a handful of brick-and-mortar institutions have started offering high-yield online savings accounts that outearn their regular savings accounts by a mile.
It’s not that there aren’t any advantages to keeping a savings account at the same institution as your checking account — you do get slightly quicker transfers between the accounts, and you can see both accounts in a single app dashboard. If these benefits are important to you, check out Ally Bank, Discover Bank or Capital One 360. They offer competitive rates on both savings and checking, and Capital One 360 also has the benefit of branches in select states.

What other high-yield savings options do I have?

Money market account: A money market account features the same transaction limitations as a savings account, thanks to Regulation D. Money market accounts generally come with a debit card and checks, unlike most standard savings accounts. Money market accounts also tend to require higher minimum deposits and balances, and are more likely to charge a monthly fee than a savings account.
Checking account: A checking account is a highly liquid deposit account designed for handling your everyday expenses. They don’t typically earn any interest — when they do, they feature lower rates than savings accounts. Unlike savings accounts, there are no transaction limitations on checking accounts.
Certificates of deposit: CDs are a fixed-rate, fixed-term savings account. Each CD has a set term, typically between three and 60 months. Once you make your opening deposit, you cannot withdraw your money until the CD term ends. Should you make what is known as an early withdrawal, you’ll face a penalty — typically a portion of the interest earned on the account. The interest rate remains the same for the length of the term, unlike savings account rates, which are variable.
Mutual funds: A mutual fund is an investment vehicle, not a deposit account. Mutual funds invest in stocks, bonds or other assets, and allow you to diversify your investment portfolio.

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Important savings account definitions

A savings deposit is defined by the Federal Reserve’s Regulation D as having two distinct features: a reservation of right clause and a monthly limit on the number of “convenient” transfers or withdrawals.

Of these two features, the monthly limit on “convenient” transfers is most strictly observed. You are limited to six preauthorized and automatic transfers, telephone transfers and withdrawals and transfers made by check, debit card or a similar method. Going over this limit results in a fee per transaction.

Transfers and withdrawals that are not limited include those made in person at the bank, by mail, by using an ATM or over the phone when the withdrawal is disbursed via check mailed to the you.

Interest

Interest is the yield you earn on your savings deposit, otherwise known as the principal balance. It’s the profit given to you by the bank in exchange for your savings deposit, unlike the interest you owe on a loan.

Rate of interest

The rate of interest is the percentage your money earns in a savings account in one year. This is also referred to as the simple interest rate. Simple interest is different from annual percentage yield (APY), which is explained below.

Compound interest

Compound interest refers to the process by which interest earnings are added back into the principal balance in a savings account, which “compounds” the growth rate of your money. Interest can be compounded — or added back into the principal balance — daily, monthly, quarterly, semiannually or annually.

This process lets your interest earn interest. For example, daily compounding means your principal balance earns interest today, the interest is then added to the principal and that new higher balance earns slightly more interest tomorrow, and so on.

Annual percentage yield (APY)

Savings accounts are typically marketed by referencing their annual percentage yield rather than their simple interest rate. Annual percentage yield takes into account the extra impact of compounding interest over the course of one year. An account’s APY is always higher than the simple interest rate.

Yield rate

The yield rate is how much your savings balance will increase over a given period of time. Unlike simple interest, yield rate operates according to a specified time period. Unlike APY, yield rate is not tied to an annual calculation, so it can represent returns over a number of months or years, for example.

Minimum balance requirement

Many savings accounts have minimum balance requirements, or the amount of money you must keep in your account. Minimum balance thresholds are often required to earn interest or waive a monthly fee.

Savings Account FAQs

Is my money safe in a savings account?

Your money is safe in a savings account as long as you bank with a reputable, insured institution. Your money is protected in case of bank failure by the FDIC for bank deposits or by the NCUA for credit union deposits.Your money should also be protected by safety measures taken by each institution, like firewalls, encryption, antivirus and anti-fraud detection and more. If you want to know more about the systems your bank has in place, you can typically find the information on their website or by giving them a call. It’s a good idea to take safety and privacy into account when shopping for the best savings account.

Does having multiple savings accounts hurt my credit?

Deposit accounts aren’t listed on your credit report and they’re not subject to hard credit pulls, unlike when you apply for and use loans or credit cards. The activity in your savings account won’t affect your credit score, nor will the number of times you open a savings account.That doesn’t mean your deposit accounts go unmonitored. ChexSystems is a reporting system that tracks your banking activity. Most banks use ChexSystems to check your banking history for any previous overdrafts, negative balances, account closures and the like. If you do have a rocky banking history, this could make it more difficult for you to open future bank accounts. Still, opening multiple accounts won’t count against you.

Can I open two savings accounts at the same bank?

You usually can open two or more savings accounts at the same bank, depending on the bank’s own policies. Each account will have its own account number. This tactic can be good for separating different savings goals.Oftentimes, banks can offer more than one type of account which can fit different needs. However, this doesn’t mean that you’ll get the best rates at the same bank. It’s still a good idea to shop across multiple banks to find the best savings account that suits your needs.

Can I make payments from a savings account?

You can make ACH transfers and wire transfers from a savings account. If your account includes a debit/ATM card or checks, you can also make payments via those methods.Still, don’t forget that savings accounts are limited to six transfers and withdrawals per statement cycle. If you exceed these limits, you run the risk of incurring excessive withdrawal fees or having your savings account closed altogether.

Can I make purchases from my savings account?

Most savings accounts don’t include a debit or ATM card, which limits your ability to make in-person purchases. However, you can set up an ACH or wire transfer with your savings account number and bank routing number to send money for a purchase.

How many times can I withdraw from my savings account?

The federally imposed six-transaction limit on savings accounts applies to what are considered “convenient” transfers. These include preauthorized and automatic transfers, transfers made over the phone and withdrawals and transfers made by check or by debit or ATM card.You can withdraw money from your savings account an unlimited number of times when made at the bank in person, at an ATM or over the phone if the withdrawal is sent to you via check.

Should I open a savings account with a bank or a credit union?

The choice between bank and credit union is largely based on personal preference.
Credit unions tend to be more community-focused than banks. You’re a member of a credit union, not a customer, so credit union members often have a say in credit union governance matters and elections. Plus, credit unions are often based around a specific geographic area, so you can build relationships with employees and fellow members.If it’s high-interest savings accounts you’re after, an online bank is probably your best bet over a traditional bank or credit union. Online savings accounts typically offer the highest rates around and their digital presence makes it easy to access your funds at any time during the day.If you’re still looking for high-interest rates, and aren’t afraid to lock away your cash for long periods of time, take a look at our recommended selection of the best credit unions which tend to offer some of the most competitive CD rates across the board.

Do I have to pay taxes on my savings account?

You have to pay taxes on your savings account (and other deposit accounts) if you earned $10 or more in interest per year.Your bank will send you (and the IRS) a copy of Form 1099-INT if you meet or exceed this interest earnings threshold. If you don’t receive a 1099-INT from your bank, but earned $10 or more in interest, you’ll still need to report the earnings on your tax return.

Interest earnings are considered regular income for tax purposes. If you earned more than $1,500 in interest, you’ll need to detail the sources of that income on Schedule B of Form 1040.

Why do online banks pay more interest?

Online banks don’t incur the costs of maintaining brick-and-mortar branches. These costs include rent, building maintenance, staff salaries and the cost of keeping physical cash safe. Without these expenses weighing them down, online banks reap big savings — savings they then pass on to their customers in the form of high interest rates

How many savings accounts should I have?

You may wish to open multiple savings accounts if you’re an individual with over $250,000 in savings. The FDIC and NCUA insurance only cover your bank accounts at the institution level. If you have an amount that exceeds the $250,000 insurance limit, you should spread your money out between multiple banks.This means that even if you have multiple savings accounts at the same bank, they would all be subject to the same $250,000 insurance limit. However, if you were to open multiple savings accounts across different institutions, you would be guaranteed up to $250,000 at each bank. This would allow all your money to be FDIC- or NCUA-insured.

Technically, there’s nothing stopping you from opening as many savings accounts as you want. However, this can get pretty cluttered and you can lose track of all your finances easily if you’re not careful. Make sure you’re getting the best savings rates for each account you open by shopping around.

Online savings index February 2020

Our online savings index tracks the monthly performance of a basket of online savings rates relative to a basket of savings rates from brick-and-mortar institutions.

Despite four Fed rate increases in 2018, savings yields at brick-and-mortar banks were pinned at less than 0.1%. Meanwhile, average yields at online banks soared, peaking above 2% in early 2019.
The spread between rates at online banks and brick-and-mortar banks widened considerably in the period between August 2017 and June 2019, then compressed somewhat in late 2019.

March 2020 savings index

In the midst of the coronavirus (COVID-19) pandemic, we surveyed 1,520 American consumers about their savings habits in the month of March. Here’s what we found:

Overall, 31% of Americans added or plan to add money to their savings account this month. That’s the lowest number we’ve seen in the six months we’ve conducted this survey.

Our survey also found that a similar number of consumers didn’t take money out of their savings at all. Savings habits remain unchanged for 35% of respondents who neither added nor withdrew funds from their account.

The number of Americans saving for emergencies increased sharply. Nearly one-third (32%) indicated they’re working on an emergency savings fund, which is a 45% increase from last month’s numbers. Of course, consumers may not all be adding to their emergency fund, but it’s definitely a start.
About 1 in 6 Americans (16%) don’t have any savings, leaving their finances in a precarious state during the global health pandemic.
More millennials (ages 24 to 39) and Gen Z (ages 18 to 23) saved money this month compared to their older counterparts. Nearly 4 in 10 (38%) of millennials and Gen Z, respectively, added money to their savings, compared to 31% of Gen X and 23% of baby boomers.

“The importance of having an emergency savings fund has become especially clear as the global health emergency has started to cause massive job losses,” said Ken Tumin, founder of DepositAccounts.com. “However, it’s concerning that 1 in 6 Americans don’t have any savings, making them especially vulnerable during this time of economic uncertainty. It’s never too late to start saving, and consumers who have the ability [to], should strongly consider stashing any amount they can in an FDIC-insured online savings account during this unprecedented pandemic.”

Survey Methodology

MagnifyMoney commissioned Qualtrics to conduct an online survey of 1,520 Americans, with the sample base proportioned to represent the overall population. The survey was fielded March 18-19, 2020.

We defined generations as the following ages in 2020:

Gen Z are ages 18 to 23
Millennials are ages 24 to 39
Gen X are ages 40 to 54
Baby boomers are ages 55 to 74
Silent Generation are ages 75 and older

You can learn more about how our site is financed here.

Continue reading The Best High-Yield Online Savings Accounts in April 2020

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Wednesday, April 1, 2020

This site may be compensated through a credit card partnership.

Nick Clements

There are lots of free credit scores floating around, but most of them are not the true FICO^® score that lenders subscribe to and use as part of their decision.

However FICO^® is working to change that by allowing banks and credit unions to give you free ongoing access to the real score they use to make lending decisions as long as you are an account holder.

One of the easiest ways for anyone to get their free FICO^® score is via the Discover Credit Scorecard. You do not need to be a customer of Discover – anyone can register and get their official FICO^® score for free. The data is from the Experian credit bureau. You can also get a free Experian FICO^® 8 score by signing up directly with Experian.

To find out where to get your FICO^® score from the other credit bureaus, read on.

Every bank chooses at least one of three credit bureaus to calculate a FICO^® score: Equifax, Experian, and TransUnion. The FICO^® score one bank uses can be different than another depending on which credit bureau they pulled a report from.

You may be able to get a free FICO® score from your credit card issuer or bank. Financial institutions belonging to the FICO Score Open Access Program offer this service. Visit this page for a list of participating banks. FICO® itself charges monthly for you to see your scores ($19.95, $29.95 or $39.95, depending on which plan you go with) — though they also throw in full copies of your credit reports, which the free bank scores do not.

Be aware that FICO rolled out the FICO Score 10 Suite in the beginning of 2020. This includes FICO Score 10 and FICO Score 10 T — the latter of which looks at trended data for a historical view of a consumer’s behavior. Under FICO Score 10, credit card debt will have a bigger impact than it used to, so it’s more important than ever to keep your utilization ratio less than 30%.

Here’s where to find your real, free FICO^® scores from banks or credit unions anyone can join:

Equifax Scores

Citibank

Available with: Any Citibank branded credit card. This does not include Citibank cards with other brands like the American AAdvantage or Hilton HHonors cards.
Score updated: Monthly
Where to find it: On your online account or the Citi app
Learn more

DCU Credit Union

Available with: Any credit card, or a checking account with direct deposit
Score updated: Monthly
Where to find it: Look for an invitation in your online account
Learn more

Huntington Bank

Available with: The Huntington Voice credit card – you will get a FICO^® Bankcard Score 2 from Equifax
Where to find it: Log into your account and you’ll see a link

PenFed

Available with: PenFed members with active checking accounts, installment loans, and revolving lines of credit
Score updated: When PenFed refreshes – no set schedule
Where to find it: Login to your account and click ‘Your FICO^® Score is Ready’
Notes: PenFed uses a more advanced ‘Next Gen’ FICO^® score that has a different scale than traditional FICO^® scores, with 150 as the lowest score and 950 as the highest score. Most banks use a score with a scale of 300 to 850. Because of this the score you see on PenFed’s site may be higher or lower than what you see from others.
Learn more

State Employees Credit Union of North Carolina

Available to all credit card holders

Experian Scores

Capital One and American Express regularly use Experian’s FICO^® among others for credit decisions.

American Express

Available with: Any American Express credit card
Score updated: Monthly
Where to find it: On your online account

Discover

Available with: All Discover cards and if you are not a Discover cardholder, you can sign up to get your FICO^® score for free by visiting creditscorecard.com.
Score updated: Monthly
Where to find it: On your statement and online

First National Bank of Omaha

Available with: Any credit card account
Score updated: Monthly
Where to find it: On your online account
Learn more

USAA

Available with: Any USAA credit card
Score updated: Unknown
Where to find it: On your online account

Wells Fargo

Available with: Any Wells Fargo credit card
Score updated: Monthly
Where to find it: On your online account
Learn more

TransUnion Scores

Bank of America

Available with: Select credit card accounts
Score updated: Monthly, with history
Where to find it: Link available on your account summary page under the ‘Tools and Investing’ section

Barclays

Available with: Any credit card account
Score updated: Monthly
Where to find it: Link available on your account summary page

Unknown Bureau

Other, less open to the public free FICO^® providers include:

Ally, for auto loan holders.
Hyundai and Kia Motor Finance allow customers to view their FICO scores through their online accounts.
Sallie Mae offers a free, quarterly TransUnion score if you receive a new Smart Option Student Loan.
Merrick Bank doesn’t have open applications for its Platinum Visa, but does offer free scores to its cardholders.
Some credit unions with limited membership also offer scores, so check yours to see if it provides them.

Find the Best Credit Score for Your Needs:

The credit score that you are looking for varies, depending on what type of credit you are looking to apply for. Each credit score version has different benefits, and lenders pull certain scores in accordance with your application.

Below we will go over the best credit scores for various financial products — and where you can get them. Refer to our list above to see if you can access the credit score for free, as not all scores are available for free.

Credit Score Monitoring

The best options: All VantageScores and FICO^® scores

Where to get them: See above

If you’re simply looking to monitor your credit score and stay on top of your credit, either VantageScore or FICO^® score will suffice.

New Credit Card

The best options: FICO^® Bankcard Scores or FICO^® Score 8 primarily; FICO^® Score 3

Where to get them: Get your FICO^® Score 8 from Credit Scorecard by Discover or freecreditscore.com

When applying for a new credit card, these scores are most likely to be pulled by credit card issuers. Lenders may pull your score from one or all three bureaus.

Mortgage Loans and Mortgage ReFis

The best options: FICO^® Scores 2, 4, 5

Where to get them: Myfico.com for $19.95 a month

These scores are used in the majority of mortgage-related credit evaluations, with lenders pulling your score from all three bureaus. However, these scores are not free and can only be purchased at myfico.com.

Auto Loans

The best options: FICO^® Auto Scores 2, 4, 5, 8, 9

Where to get them: Myfico.com for $19.95 a month

Auto scores are industry-specific and used in the majority of auto-financing credit evaluations. Lenders may pull your score from one or all three bureaus. Unfortunately, these scores are not free and need to be purchased at Myfico.com.

Personal Loans, Student Loans, and Retail Credit

The best option: FICO^® Score 8

Where to get it: Credit Scorecard by Discover or freecreditscore.com.

For other financial products such as personal loans, student loans, and retail credit, FICO^® Score 8 is best. This is the credit score most widely used by lenders, and they may pull your score from one or all three bureaus when making a decision.

APR

As low as 3.49%

Credit Req.

Minimum 500 FICO^®

Terms

24 to 60

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Origination Fee

Varies

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Advertiser Disclosure

LendingTree is our parent company. LendingTree is unique in that you may be able to compare up to five personal loan offers within minutes. Everything is done online and you may be pre-qualified by lenders without impacting your credit score. LendingTree is not a lender.

A Personal Loan can offer funds relatively quickly once you qualify you could have your funds within a few days to a week. A loan can be fixed for a term and rate or variable with fluctuating amount due and rate assessed, be sure to speak with your loan officer about the actual term and rate you may qualify for based on your credit history and ability to repay the loan. A personal loan can assist in paying off high-interest rate balances with one fixed term payment, so it is important that you try to obtain a fixed term and rate if your goal is to reduce your debt. Some lenders may require that you have an account with them already and for a prescribed period of time in order to qualify for better rates on their personal loan products. Lenders may charge an origination fee generally around 1% of the amount sought. Be sure to ask about all fees, costs and terms associated with each loan product. Loan amounts of $1,000 up to $50,000 are available through participating lenders; however, your state, credit history, credit score, personal financial situation, and lender underwriting criteria can impact the amount, fees, terms and rates offered. Ask your loan officer for details.

As of 17-May-19, LendingTree Personal Loan consumers were seeing match rates as low as 3.49% (3.49% APR) on a $10,000 loan amount for a term of three (3) years. Rates and APRs were based on a self-identified credit score of 700 or higher, zero down payment, origination fees of $0 to $100 (depending on loan amount and term selected).

Other Scores and Their Value

FICO^® Score 9 is not as widely used as FICO^® Score 8. The benefits of this score are that it doesn’t penalize you for paid collections and reduces the ding you get from unpaid medical collections. See our review for more information.

The FICO^® NextGen score is used to assess credit risk, but only a small number of lenders use it due to its 150-950 scoring range and older model.

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Earning Interest

The Best CD Rates – April 2020

Start saving today with these high-yield bank accounts

In this article, we’ll cover:

MagnifyMoney’s best CD rates for April 2020

6 months – 6 years: Goldman Sachs Bank USA – 0.60% APY – 1.90% APY; $500 minimum deposit to open

1 year – 5 years: Barclays Bank – 1.75% – 1.70% APY, no minimum deposit to open

6 months – 5 years: Live Oak Bank – 1.40% APY – 1.50% APY; $2,500 minimum deposit to open

3 months – 10 years: Discover Bank – 0.35% APY – 1.80% APY, $2,500 minimum deposit to open

1 Year – 3 Years: Rising Bank – 1.55% APY – 1.20% APY; $1,000 minimum deposit to open

3 months – 5 years: Ally Bank – 0.50% APY – 1.60% APY; $0 minimum deposit to open (higher APY with higher deposit)

1 year – 5 years: Citizens Access – 1.50% APY – 1.65% APY; $5000 minimum deposit to open

3 months – 5 years: Synchrony Bank – 0.25% APY – 1.65% APY; $2,000 minimum deposit to open

30 days – 5 years: BrioDirect – 0.05% APY – 1.25% APY; $500 minimum deposit to open

MagnifyMoney’s best no-penalty CD rates

7 months – 13 months: Goldman Sachs Bank USA – 1.70% APY – 1.50% APY; $500 minimum deposit to open

11 months: Ally Bank – 1.40% APY – 1.55% APY; $0 – $25,000 minimum deposit to earn APY

6 months: Investors eAccess – 1.15% APY; $500 minimum deposit to open

11 months – 14 months: PurePoint Financial – 1.01% APY – 0.95% APY; $10,000 minimum deposit to open

MagnifyMoney’s highest CD rates from banks and credit unions by term

Best 1-year CD rates

Best 1-year CD rate from a Credit Union: INOVA Federal Credit Union – 2.25% APY, $200 minimum balance

Best 1-year CD rate from a National Bank: Banesco USA – 1.50% APY, $1,500 minimum deposit

Best 2-year CD rates

Best 2-year CD rate from a Credit Union: MAC Federal Credit Union – 1.25% APY, $1,000 minimum deposit

Best 2-year CD rate from a National Bank: Synchrony Bank – 1.50% APY, $2,000 minimum deposit

Best 3-year CD rates

Best 3-year CD rate from a Credit Union: Keesler Federal Credit Union – 2.04% APY, $1,000 minimum deposit

Best 3-year CD rate from a National Bank: Primary Bank – 2.00% APY, no minimum deposit

Best 4-year CD rates

Best 4-year CD rate from a Credit Union: Credit Union of the Rockies – 2.60% APY, $1,000 minimum deposit

Best 4-year CD rate from a National Bank: Primary Bank – 2.00% APY, $0 minimum deposit

Best 5-year CD rates

Best 5-year CD rate from a Credit Union: Hiway Federal Credit Union – 2.10% APY, $25,000 minimum deposit

Best 5-year CD rate from a National Bank: Home Loan Investment Bank, F.S.B. – 1.75% APY, $2,500 minimum deposit

The cities that are most likely to use CDs for their savings

Questions to ask before you open a CD

1. How are CDs different from savings accounts?

2. Am I better off keeping my cash in savings?

3. What CD term length should I select?

4. Should I consider my local bank or credit union?

How to find the best CD for you

Best of, Earning Interest

The Best High-Yield Online Savings Accounts in April 2020

Start saving today with these high-yield bank accounts

1. High Rate: Goldman Sachs Bank USA – 1.70% APY, no minimum balance (but no ATM access)

2. High Rate: American Express National Bank – 1.60% APY, no minimum balance (and no fees)

3. High Rate: Barclays Bank – 1.50% APY, no minimum balance

4. Favorite Online Package: Ally Bank – 1.50% APY, no minimum balance and you can get a free checking account

5. High Rate: Capital One – 1.50% APY, no minimum balance

6. High Rate: Discover Bank – 1.50% APY, no minimum balance

7. High Rate: Vio Bank – 1.75% APY, $100 to open

8. High Rate: Live Oak Bank – 1.75% APY, no minimum to open, no minimum balance to earn APY

9. High Rate: CIT Bank – 1.70% APY, $100 to open

10. High Rate: Citizens Access – 1.70% APY, $5,000 minimum balance amount

11. High Rate: Synchrony Bank – 1.50% APY, no minimum balance, (and ATM access)

12. High Rate: CIBC Bank USA – 1.45% APY, $1,000 to open

13. Unique Bank + Highest Overall Rate: Fitness Bank – 2.10% APY, $100 minimum to open

14. High Rates on two savings accounts: CommunityWide FCU – 2.00% APY or 1.90% APY, $1 minimum to open

15. High Rate: First Foundation Bank – 1.75% APY, $1,000 to open

16. High Rate: SFGI Direct – 1.71% APY, $500 to open

17. High Rate: Prime Alliance Bank – 1.71% APY, $10,000 minimum balance amount

18. High Rate: HSBC Direct – 1.70% APY, $1 minimum to open, no minimum balance to earn APY

19. High Rate: Popular Direct – 1.70% APY, $5,000 minimum to open

20. For Small Balance Savers: Digital Federal Credit Union – 6.17% APY up to $1k

MagnifyMoney’s Best Savings Accounts for April 2020

What should I know about savings accounts?

What is a savings account?

How do savings accounts work?

When should I use a savings account?

How to find the right savings account for you

Other, less open to the public free FICO^® providers include:

Minimum 500 FICO^®

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