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The Best Credit Union CD Rates in February 2020

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Certificates of deposit (CDs) are a great way to safely store your savings at a financial institution, as they offer a guaranteed rate of return, and CD rates tend to be higher than those on traditional savings accounts. Maybe you’ve even heard that credit union CD rates offer higher returns—but is that really the case?

On average, yes. As of June 2019, the average one-year credit union CD had a 1.42% annual percentage yield (APY), compared to the 1.11% APY average among one-year bank CDs.

Using data from DepositAccounts.com, another LendingTree company, we identified the top one-year credit union CD rates, as of February 3, 2020. We then eliminated any credit union with a health rating lower than a B and a minimum deposit no larger than $5,000 identified the top offerings in three categories: restricted, no cost, and best banking app. If there was a tie by APY, we went with the product with the lower minimum deposit. Here are the best one-year credit union CD rates.

Best credit union CD rates with restricted memberships or membership fees

Each of these credit unions have restricted membership criteria, but don’t let that scare you away. If you don’t meet their membership criteria, it’s often possible to make a small donation to their charity of choice in order to become eligible for membership. Furthermore, these credit union CD rates offer some of the highest-returning share certificates out of any category.

INOVA Federal Credit Union – 14-Month Share Certificate, 2.25% APY, min. Deposit $200

14 Month CD from INOVA Federal Credit Union
INOVA Federal Credit Union was originally established in 1942 to serve the employees of Miles Laboratories. Now, the credit union boasts a membership of over 38,000 members, with seven branch locations in two states. Membership to INOVA is open to any U.S. citizen or resident who joins the Elkhart River Restoration Association or Tru Direction.

For its 14-month share certificate, INOVA is currently offering an APY that is leaps and bounds above its peers, at 2.25%. INOVA’s 14-month share certificate requires a minimum deposit of just $200, and there are no set-up or service charges. Like most CDs, early withdrawals are subject to a penalty – and for terms longer than one year, that penalty is equal to 180 days worth of dividends.

SEE DETAILS Secured

on INOVA Federal Credit Union’s secure website

NCUA Insured

Andrews Federal Credit Union – Special 13-Month Share Certificate, 2.15% APY, min. deposit of $1,000

13 Month Certificate Special from Andrews Federal Credit Union

Established in 1948, Andrews Federal Credit Union boasts locations in Washington D.C., Maryland, Virginia and New Jersey, as well as internationally in the Netherlands, Belgium and Germany. Membership to Andrews FCU is open to anyone through the American Consumer Council.

Andrews’ Federal Credit Union has a slew of share certificates, ranging from a 3-month with an APY of 3.01% to an 84-month with a 3.05% APY. The credit union is currently offering a special, 13-month share certificate with a minimum deposit of $1,000 and an APY of 2.15%. This product has a maximum balance of $250,000, and members are allowed only one 13-month certificate per person.

SEE DETAILS Secured

on Andrews Federal Credit Union’s secure website

NCUA Insured

USALLIANCE Financial — 12-Month certificate account, 2.15% APY, min. deposit $500

12 Month CD from USALLIANCE Financial
USALLIANCE Financial is offering a 12-month certificate account with a competitive APY of 2.15%.

Membership in USALLIANCE Financial is open to residents of certain localities in Massachusetts, Connecticut and New York, as well as members of the American Consumer Council and a raft of other professional associations.

SEE DETAILS Secured

on USALLIANCE Financial’s secure website

NCUA Insured

MAC Federal Credit Union – 12-Month Share Certificate, 2.10% APY, min. deposit of $1,000

12 Month CD from MAC Federal Credit UnionThe MAC Federal Credit Union offers a slew of share certificates with varying term lengths, and its 12-month share certificate rate of 2.10% APY is certainly worth highlighting. This account requires a minimum deposit of $1,000.

The MAC Federal Credit Union is open to anyone who lives, works, worships, attends school or uses services in certain areas of Alaska. However, membership is also open to anyone who also becomes a member of the AUSA Polar Bear Chapter.

SEE DETAILS Secured

on MAC Federal Credit Union’s secure website

NCUA Insured

Communitywide Federal Credit Union — 12-Month CD, 2.10% APY, min. deposit $1,000

12 Month Share Certificate from Communitywide Federal Credit UnionFor over 50 years, Communitywide Federal Credit Union has provided banking services to the citizens of northern Indiana, and now a completely revamped online and mobile portal brings its great rates to you, wherever you are. Membership in Communitywide FCU is open to members of the Michiana Goodwill Boosters or the Marine Corps League of St. Joseph Valley, as well as employees of over 40 companies in the central Midwest region.

In exchange for a $1,000 minimum deposit, Communitywide’s 12-month share certificate earns a 2.10% APY. One great feature is flexibility regarding your dividends, which may be compounded in the certificate, deposited to another share certificate, or transferred to another account. Another feature to understand is that there is no automatic renewal of Communitywide’s share certificates, which could be a good thing for savers who like to be reminded to survey the best rates available before rolling over their investments.

SEE DETAILS Secured

on Communitywide Federal Credit Union’s secure website

NCUA Insured

Veridian Credit Union – 12-Month CD, 2.10% APY, min. deposit $1,000

12 Month CD Special from Veridian Credit Union
The Veridian Credit Union is currently offering a special, 12-month CD with an attractive APY of 2.10% and a minimum balance of $1,000. If you have more cash you’re looking to stash, Veridian is also offering a special 12-month jumbo CD with a minimum balance of $100,000 and an APY of 2.20%.

The Veridian Credit Union is open to anyone who lives or works within its field of membership, which consists of all 99 Iowa counties and a select number of counties in Nebraska. Additionally, membership is open to registered users of the business payment app Dwolla.

SEE DETAILS Secured

on Veridian Credit Union’s secure website

NCUA Insured

Interior Federal Credit Union – 12-Month CD, 2.07% APY, min. deposit $500

12 Month Share Certificate from Interior Federal Credit Union
The Interior Federal Credit Union offers a plethora of certificates of deposit, with its 12-month CD offering a decent APY of 2.07% and a minimum deposit of just $500. For those looking to make a larger deposit, Interior Federal Credit Union also offers a 12-month CD with a minimum deposit of $100,000 and a slightly higher APY of 2.12%.

Membership to the Interior Federal Credit Union is open to those who are employees, contractors and volunteers of the Department of Interior, those who have volunteered at a National Park, members of the New Mexico Wildlife Federation and employees and volunteers of select employer groups.

SEE DETAILS Secured

on Interior Federal Credit Union’s secure website

NCUA Insured

Fort Knox Credit Union – 14-Month Share Certificate, 2.05% APY, min. deposit $500

14 Month CD Special from Abound Credit Union
The Fort Knox Credit Union is currently featuring an attractive, 14-month share certificate product with a 2.05% APY. That’s leaps and bounds better than the credit union’s regular, 12-month certificate rate of 1.00% APY and its regular 18-month certificate rate of 1.30% APY. The 14-month share certificate requires a minimum deposit of $500. Dividends are paid and compounded quarterly.

Eligibility to the Fort Knox Credit Union is restricted to the following people: Those who are employed by select employer groups, those who work, worship, go to school or do business in certain designated areas of Kentucky, those who are active duty military, Reserve Guard, or civil service employees, those who are retired military or civil service employees and contractors attached to the post.

SEE DETAILS Secured

on Abound Credit Union’s secure website

NCUA Insured

Best CD rates for credit unions with no cost to join

The thing about credit unions is that they’re not usually just open to anyone. You usually need to meet some membership criteria in order to get in and get access to all of their really nice products. These credit unions, however, will let you in for free regardless of your personal details. (Note: Only two credit unions met our criteria for this list.)

NASA Federal Credit Union – 1-Year Share Certificate, 2.00% APY, min. deposit $1,000

NASA Federal Credit Union
If the rigid inflexibility of CDs makes you leery, NASA FCU might be your best bet. They have a lot of flexible certificates, such as add-on certificates that let you start with as little as $250, and bump-rate certificates that let you opt for a one-time interest rate increase if rates go up. You can even take out a loan from your certificate should you need the cash before it’s matured. You can join NASA FCU with a complimentary membership to the National Space Society.

If you do need to make an early withdrawal, you will face a penalty of 180 days’ worth of interest.

SEE DETAILS Secured

on NASA Federal Credit Union’s secure website

NCUA Insured

Unify Financial Credit Union – 1-Year Share Certificate, 1.58% APY, min. deposit $1,000

UNIFY Financial Credit Union
Unify FCU offers decent interest rates on CDs (which it calls share certificates) for a credit union with no cost to join. The interest rate on their 12-month CD, for example, is 1.58%. You’ll need to deposit a minimum of $1,000 to open this CD. If you withdraw your money early, however, you’ll face a substantial penalty.

SEE DETAILS Secured

on UNIFY Financial Credit Union’s secure website

NCUA Insured

 

Best CD rates for credit unions with the best mobile apps

By their very nature, CDs aren’t something that require constant attention, poking, and prodding. It’s a set-it-and-forget-it kind of a deal, so you won’t need any spiffy banking apps to use CDs.

But, if you’d like to switch all of your banking to the same institution that holds your CDs, it might be a wise idea to consider one of these credit unions if you’re a digital junkie. Most credit unions lag behind their bank compatriots in terms of mobile banking apps, but these credit unions offer top-notch mobile apps, according to MagnifyMoney’s 2018 mobile banking app analysis.

Eastman Credit Union – 1-2 Years Certificate , 2.00% APY, min. deposit $1,000

1 to 2 Year Investment Certificate from Eastman Credit UnionEastman Credit Union has pretty restrictive membership requirements. You’ll have to be an employee (or a family member of an employee) of one of their select employers, or live in certain parts of Tennessee, Texas, or Virginia. This product yields 2.00% APY for a 1-2 Years Certificate deposit, with a minimum deposit of $1,000. If you withdraw your money before the CD matures, you’ll owe a penalty fee of 90 days’ worth of dividend earnings.

SEE DETAILS Secured

on Eastman Credit Union’s secure website

NCUA Insured

Delta Community Credit Union – 1-Year Certificate, 1.99% APY, min. deposit $1,000

Delta Community Credit Union
There are many ways to join Delta Community CU, such as living in certain parts of Georgia, being a member of one of their select employers, or being a member of one of their partner organizations. Interestingly, citizens of many countries like Argentina, France, and Peru are also eligible to join.

Delta Community CU used to be the lowest-earning credit union on our list, but recently increased the APY on this product from 1.10% to 1.99%. The early withdrawal penalty is 90 days’ worth of interest on a 12-month CD.

SEE DETAILS Secured

on Delta Community Credit Union’s secure website

NCUA Insured

SECU – 1-Year CD, 2.00% APY, min. deposit $500

SECU
The State Employees Credit Union of Maryland (SECU) is the largest credit union in the state of Maryland and is among the largest credit unions in the United States. Membership is open to employees, retirees and contractors of the state of Maryland, employees of Anne Arundel County, alumni, students, faculty and staff of University System of Maryland Schools, employees of organizations located in Maryland that receive federal, state or local funding, and over 500 local Select Employer Groups. SECU offers a decent rate of 2.00% on its 1-year CD.

SEE DETAILS Secured

on SECU’s secure website

NCUA Insured

Wright-Patt Credit Union – 12 to 17-Month Certificate, 1.51% APY, min. deposit $500

Wright-Patt Credit Union
Unlike many credit unions, you can’t just make a simple donation to join Wright-Patt CU if you fail to meet their membership criteria. You need to live in certain areas of Ohio, be associated with Wright-Patterson Air Force Base, or be an employee of their select employer group, among other options.

Wright-Patt offers an 12 to 17-month certificate yielding a decent return of 1.51% APY.withdrawal penalties vary depending on the original term of your CD, however they’ll be anywhere between 5-12 months’ worth of dividends.

SEE DETAILS Secured

on Wright-Patt Credit Union’s secure website

NCUA Insured

Redstone Federal Credit Union – 12 Month Share Certificate, 1.51% APY, min. deposit $1,000

Redstone Federal Credit Union
You can’t just make a simple donation to join to Redstone Federal Credit Union if you fail to meet their membership criteria. You need to be a government employee or contractor, a member of the military, reserve, or National Guard, or affiliated with a number of organizations listed on their website among other options.

However, if you do qualify for membership, you could earn an APY of 1.51% with a minimum deposit of $1,000. Redstone FCU has compounding and non-compounding certificates, which allow you to have the option to withdraw interest earned or not throughout the term of the certificate.

SEE DETAILS Secured

on Redstone Federal Credit Union’s secure website

NCUA Insured

3 questions to consider before opening a credit union CD

Banks are more likely to call their products certificates of deposit, while credit unions often refer to them as share certificates. Aside from the name, the biggest difference between the two is that credit unions have higher average annual percentage yields (APYs) than traditional banks, as of September 2018. That’s good news: It means more money back in your pocket when the CD matures (i.e., reaches the end of its term and is available for withdrawal).

There really is no difference in safety between depositing money in a CD with a credit union versus a bank, as long as they participate in either the National Credit Union Administration (NCUA) for credit unions, or the Federal Deposit Insurance Corporation (FDIC) for banks.

According to Neal Frankle, a Los Angeles-based Certified Financial Planner with Wealth Pilgrim, deposits of up to $250,000 per financial institution are “backed by the full faith and credit of United States Government, so it’s pretty solid.”

For the most part, choosing a CD at a bank or a credit union boils down to your preference as a consumer: Do you want to be a bank customer or a member of a credit union? Here’s a primer on the differences.

The biggest advantage of credit union CDs over bank CDs is that you can likely earn more interest. But with both products, the longer the CD term, the more interest you will earn. And with a CD laddering strategy, you can have the best of both worlds: frequent access to your money, yet you can still keep it locked away in high-interest, long-term CDs.

Beyond that, the disadvantages of opening a credit union CD are the same as if you’re opening a CD with a bank. You can’t access that money without paying an early withdrawal penalty until the CD matures. While CDs do offer some of the highest rates for any financial product you’re likely to come across at a bank or credit union, they still don’t really earn great interest. If you’re investing for the long-term (like retirement savings), your money is better invested in the riskier (but higher-earning) stock or bond market.

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Best of

Best Savings Account Bonus Offers of February 2020

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

There’s no shortage of checking account bonus offers, with everyone from small local banks to the big household names offering hundreds of dollars to new customers. Banks know it’s hard to get you to leave your old bank, especially when you’re comfortable with the accounts you have. But what better way to entice you than with a big cash bonus?

You’ll find these bonus offers attached to more checking accounts than savings accounts. After all, checking accounts are a crucial part to banking, as they allow you to easily access your money for purchases and transfers.

That’s not to say there aren’t any opportunities to earn money with a new savings account. We’ve found six of the best savings account bonus offers as of the date of publishing. It’s easy to go straight for the highest amount, but pay attention to the bank and the account you’re getting ready to open. Make sure it’s a bank you actually want to do business with.

Further, double check that you’ll be happy with the new account for months to come. It can take months to meet the offer requirements and even longer to actually receive the bonus. If there’s a monthly fee on the account, you could be stuck paying that unnecessary fee, especially if you can’t meet the balance requirements to waive it. You may not even be happy with the interest rate on the account, which might make the savings account bonus offer not entirely worth it.

The best savings account bonus offers in February 2020

Methodology

To find the best savings account bonus offers, we looked for the highest bonus amounts offered. Below, you’ll find the six biggest bonus offers on savings accounts being offered. Offers are current as of this publication date and we will update the article periodically to show the freshest ranking.

Chase — $2,000 bonus with $250,000 minimum deposit

Offer ends 3/06/2020

Offer rules: Become a Chase Private Client customer and get a chance to earn this $2,000 bonus. You’ll need to transfer a total of $250,000 or more in qualifying new money or securities to a combination of eligible personal checking, savings and/or investment accounts within 45 days of opening and maintain the balance for at least 90 days. Eligible accounts excludes any You Invest, J.P. Morgan retirement accounts and CDs.

Who’s eligible: Only new Chase customers in 32 select states and Washington D.C. may qualify for this offer. You can visit your nearest CPC branch or email an upgrade code to yourself to redeem this offer.

Account details: Chase Private Client requires you to maintain an average daily balance of $250,000 or more between qualifying personal or business deposits and investments. Chase Private Client extends the perks and benefits you can receive on your Chase accounts, including banking, credit cards, loans and investments.

Chase Private Client does not charge monthly fees on Chase Private Client Checking or Chase Private Client Savings accounts. Private Client Savings Accounts earn a minimal 0.01% APY.

SEE DETAILS Secured

on Chase Bank’s secure website

Member FDIC

Chase — $1,000 bonus with $75,000 minimum deposit

Offer ends 3/06/2020

Offer rules: Become a Sapphire Banking customer by transferring $75,000 or more in qualifying new money or securities to a combination of eligible personal checking, savings and/or investment accounts (excluding any J.P. Morgan retirement accounts and CDs). You must also maintain that balance for 90 days.

Who’s eligible: This offer is available only to customers in 32 select states and Washington D.C. You can open a Sapphire Banking account online and email yourself a code to redeem this offer.

Account details: Despite its premier placing, Chase Sapphire Checking earns only 0.01% APY. Linking a Chase Sapphire Checking account to a Chase Premier Savings account (and meeting other requirements), offers a small boost to your Premier Savings rates. It also unlocks higher rates for higher balances.

SEE DETAILS Secured

on Chase Bank’s secure website

Member FDIC

Citi — $700 bonus with $50,000 minimum deposit

Offer ends 3/31/2020

Offer rules: Open a new checking and savings accounts in the Citi Priority Account Package and deposit at least $50,000 in new-to-Citibank money within 30 days of account opening. Your funds can be shared between the new checking and savings accounts. Maintain at least $50,000 between the accounts for 60 days to qualify for the bonus.

Who’s eligible:New Citibank customers are eligible for this offer. This means those who have not been a signer on a Citibank checking account within the past 180 days.

Account details:The Citi Priority Account Package is a premium account, including investment resources and on-demand access to Citi Personal Wealth Management. The account costs $30 each month to own. You can waive the fee by maintaining a combined average monthly balance of at least $50,000 in eligible linked accounts.

With the Citi Priority Account Package, you can earn 0.03% APY on the Interest Checking account and 0.04% – 0.15% APY on the Citi Savings account, depending on your balance.

LEARN MORE Secured

on Citi’s secure website

Citi — Up to $500 bonus with $15,000 minimum deposit

Offer ends 3/31/2020

Offer rules: You must be a new Citibank customer and open a Citibank Account Package, which includes a checking and savings account. Within 30 days of opening these accounts, you must deposit at least $15,000 in either of these two accounts with money new to Citibank, and maintain a minimum balance across both accounts of $15,000 for 60 days.

After meeting the above requirements, you’ll get $400 in bonus money deposited into your checking account (or savings account if you’ve closed the checking account). If you make at least one qualifying direct deposit each month for two consecutive months within 60 days of opening the account, you’ll receive an additional $100, boosting your total bonus to $500.

Who’s eligible:You must be a new customer to Citibank and enroll in the offer through the offer page or in person at a branch.

Account details: There’s a $25 monthly maintenance fee, which you can avoid be keeping a minimum of $10,00 deposited across both accounts (which you’ll want to do anyone in order to qualify for the bonus, which requires a minimum of $15,000). You may not want a checking account and are free to close it, but keep in mind in order to get the $100 bonus (to bring the total amount to $500) you need to make the ACH deposits into a checking account, not a savings account.

The Citibank Account Package earns 0.01% APY on the Interest Checking account and between 0.04% and 0.13% APY on the Citi Savings account, depending on your balance.

LEARN MORE Secured

on Citi’s secure website

Citi — $200 bonus with $5,000 minimum deposit

Offer ends 3/31/2020

Offer rules: Citibank’s $200 bonus is available when you open a new Basic Banking Package. Qualify for the offer when you deposit at least $5,000 in new money into the package within 30 days after account opening. You can split the funds between the checking and savings accounts. Then maintain at least $5,000 in the package for 60 days to fully qualify.

Who’s eligible:You must be a new Citibank checking customer to be eligible for this bonus offer, which means you must not have been a signer on a Citibank checking account within the past 180 days.

Account details: The Citibank Basic Banking Package does not include a checking account that earns interest, but its Citi Savings account does earn interest between 0.04% and 0.06%, depending on your balance.

The Basic Banking Package charges a $12 monthly fee, which you can waive by make one qualifying direct deposit and one qualifying bill payment per statement period or maintaining a combined average monthly balance of at least $1,500 in eligible linked accounts. Account holders who are 62 or older can also have the fee waived.

The Citibank Account Package earns 0.01% APY on the Interest Checking account and between 0.04% and 0.13% APY on the Citi Savings account, depending on your balance.

LEARN MORE Secured

on Citi’s secure website

Capital One — Up to $500 bonus with up to $50,000 minimum deposit

Offer ends 3/31/2020

Offer rules: There’s the opportunity to snag up to $500 in bonus cash by opening a new 360 Performance Savings account. Deposit $10,000 or more in new money within 10 days of account opening, known as the Initial Funding Period. You then need to maintain the required balance for 90 days following the Initial Funding Period. The balance you maintain will determine your bonus, calculated as follows:

  • $100 bonus: $10,000-$19,999.99 daily balance
  • $200 bonus: $20,000-$29,999.99 daily balance
  • $300 bonus: $30,000-$39,999.99 daily balance
  • $400 bonus: $40,000-$49,999.99 daily balance
  • $500 bonus: $50,000+ daily balance

Who’s eligible: To redeem this offer, start by using the promo code NEW500 at account opening. You are not eligible if you have or had a savings and/or money market account (excluding CDs) with Capital One on or after January 1, 2016, even if you were a secondary accountholder.

Account details: Capital One 360 offerings are a constant presence in MagnifyMoney’s best account roundups. This 360 Performance Savings earns 1.70% APY on all balances. Aside from this bonus, there is typically no minimum deposit or balance requirement. There is no monthly fee on the account.

SEE DETAILS 

Member FDIC

CIBC Bank USA — up to $400 bonus with $25,000+ minimum deposit

Offer ends 3/16/2020

Offer rules: CIBC Bank USA offers the opportunity to earn either a $200 bonus or a $400 bonus when you open a new online Agility Savings account. To earn the $400 bonus, make a deposit of at least $50,000 within 15 days after account opening and maintain at least that amount for the following 120 days.

To earn a $200 bonus, deposit at least $25,000 within 15 days after opening and maintain at least that much for the following 120 days.

Who’s eligible: Only new CIBC US clients are eligible for this offer.

Account details: The CIBC Agility Savings account is a high-yield online savings account with a 1.85%There is no monthly fee.

SEE DETAILS Secured

on CIBC USA’s secure website

Member FDIC

Associated Bank — $400 bonus with $25,100 minimum deposit

Offer ends 6/30/2020

Offer rules: This offer requires you to open both an Associated Choice Checking account and an Associated Relationship Savings account. Open the checking account with at least $100 and make three payments through Associated Bank Online Bill Pay or at least one direct deposit of $300 or more within 45 days of account opening. You must open the savings account with at least $25,000. Together, you must maintain a $25,000 minimum combined balance in those accounts for 90 days to receive the reward, 120 days after account opening.

Email yourself a coupon code from the offer page and bring that coupon into a branch to redeem.

Who’s eligible: You must fund the new accounts with money not already held with the Bank. The offer is not available to Associated Bank employees and those who already have or have had a checking account or Associated Relationship Savings account at Associated Bank within the last six months.

Account details: A heavy-hitting account, the Associated Choice Checking account earns interest between 0.01% and 0.02% APY, depending on your balance (higher balances earn higher rates). It charges a high $25 monthly fee, which you can waive with at least $10,000 in combined deposit accounts or either an HSA or investment account.

The Associated Relationship Savings account earns between 0.10% and 1.30% APY, where higher balances earn more.

SEE DETAILS Secured

on Associated Bank, NA’s secure website

Member FDIC

Discover — $200 bonus with $25,000 minimum deposit

Offer ends 3/02/2019

Offer rules: Discover customers can benefit from a $200 bonus by opening a Discover Online Savings account for the first time by March 2, 2019, which is the date this offer ends. You’ll then need to deposit at least $25,000 into the account by March 16, 2019.

If you can’t meet that minimum amount, you can earn a $150 bonus instead by depositing at least $15,000 into the new account by March 16, 2019.

Bonuses will be credited to your account by March 30, 2019.

Who’s eligible: You must be a new Discover savings customer to qualify for this savings account bonus offer. You must not have had a savings account that was co-branded or an affinity account provided by Discover either.

You can apply for the offer with the code “MM220” either online or by phone.

Account details: Discover’s Online Savings Account earns at a competitive interest rate of 1.60% on all balances. There’s no monthly service fee and Discover promises no hidden fees. You’ll only face a charge for excessive withdrawals, stop payments, insufficient funds and outgoing wire transfers. Discover will waive the first excessive withdrawal, insufficient funds or stop payment fee you encounter each calendar year. Keep in mind that these bonuses are considered interest and will be reported on a 1099-INT form.

SEE DETAILS Secured

on Discover Bank’s secure website

Member FDIC

CIT Bank — up to $300 bonus with $25,000+ minimum deposit

Offer ends 5/30/2020

Offer rules: You can earn up to $300 from CIT Bank depending on your deposit when you open a new Savings Builder account. After enrolling in the offer (more on that below), make your opening deposit within 15 calendar days. Deposits from $25,000 to $49,999 will earn a $150 bonus, while deposits of $50,000 and over will earn the $300 bonus.

You have 15 days to fund the account after opening. Once those 15 days are up, you must maintain your balance for 90 days to fully qualify for the bonus.

Who’s eligible: Both new and existing CIT Bank customers can redeem this bonus offer. New customers must open a Savings Builder account with a minimum of $100. Existing customers can enroll in the promotion by logging on through the link provided below. Existing customers’ must make their deposits with new money, or money held at an external financial institution.

Account details: The Savings Builder account from CIT Bank is its competitive savings offering at a 1.75% APY. This APY applies to accounts with a $25,000 minimum balance or those with a monthly deposit of at least $100. If you don’t meet those requirements, your balance will earn 1.15% APY. There is no monthly fee on the account.

SEE DETAILS Secured

on CIT Bank’s secure website

Member FDIC

Chase — $150 bonus with $10,000 minimum deposit

Offer ends 4/20/2020

Offer rules: In another bonus offer from Chase, you can get $150 when you open a new Chase Savings account. You’ll need to deposit at least $10,000 in new money (not previously held with Chase or its affiliates) within 20 business days and maintain at least that minimum balance for 90 days.

Want to do more banking with Chase and open a Chase Total Checking account, too? Opening both a new checking and savings account can get you a $350 bonus, as long as you follow the above savings account rules and set up direct deposit on your new checking account.

Who’s eligible: You’re eligible for the Chase Savings account bonus offer if you are not already a Chase savings customer. You also cannot have had an account that was closed within 90 days or with a negative balance.

If you close this new savings account within six months after opening, Chase will deduct the bonus amount from the account at closing.

Account details: The Chase Savings account earns interest at a nominal rate of 0.01% APY, which isn’t ideal for savings growth. There is a $5 monthly fee on the account. You can waive the fee with one of the following, each statement period:

  • A daily balance of at least $300
  • At least one repeating automatic transfer of $25 or more from your personal Chase checking account or Chase Liquid® Card
  • An account owner who is younger than 18
  • Linking this account to a Chase Premier Plus Checking, Chase Sapphire Checking or Chase Private Client Checking account

You could also face a $5 fee for each excessive transaction you make over the six-transfer limit per statement cycle.

LEARN MORE Secured

on Chase Bank’s secure website

Associated Bank — $100 bonus with $10,000 minimum deposit

Offer ends 6/30/2020

Offer rules: Opening a new Associated Bank Money Market account can get you a $100 bonus. You’ll need to deposit at least $10,000 in new money (held outside Associated Bank) at opening and maintain at least that much in the account for 90 days to receive the bonus.

The bonus will be paid within 120 days of account opening if you meet the requirements. The account must be open at that time. You must also keep the account open for at least 12 months.

Who’s eligible: You can redeem this offer online or by taking a coupon sent via email to an Associated Bank branch. This offer is limited to one per household. Households who have or have had an Associated Bank Money Market account within the last six months do not qualify. You must be 18 years or older to apply for the bonus. If you close the new account within 12 months of opening, Associated Bank can deduct the bonus amount from your funds at closing.

Account details: The Associated Bank Money Market account is a true money market account, with the ability to write convenience checks and access Associated Bank and MoneyPass ATMs. It earns interest, too, between 0.03% and 0.03% APY. You can earn at higher rates by having a higher balance and a qualifying Associated checking account.

The money market account does charge a $16 fee, which you can waive by maintaining a $1,000 minimum balance.

SEE DETAILS Secured

on Associated Bank, NA’s secure website

Member FDIC

How do these accounts compare to the best online savings accounts?

When looking for the best online savings accounts, you won’t find much overlap here. Bonus offers tend to come from brick-and-mortar banks, as incentives for you to place your deposits with them.

Online banks still win by and large. But don’t let these financial carrots mislead you into thinking they are the best on the market — many of the best accounts are being offered by online banks these days. Online accounts tend to have the highest interest rates and the lowest fees — what more could you want? That’s why you’ll find most sign-up bonuses being offered by brick-and-mortar banks.

Know the pros and cons. You should figure out whether it’s worth it for you to open a new account with a traditional bank just for a bonus offer. Don’t forget, you can’t open a new account for a bonus offer and close it immediately. Qualifying for and receiving the bonus takes months. You could even lose your bonus offer if you close the account too soon. Plus, a savings account bonus offer is a short-term boost in savings, rather than the ongoing growth of a high-yield account. It won’t help your savings situation if your new account charges a monthly fee that you can’t waive, either.

Factor in fees. If you do desperately want to snag a couple hundred dollars by opening a new account, make sure you won’t be paying a monthly fee for the months you have the account. That way, you won’t lose any of that bonus right off the bat. Again, double check the account’s closing terms to ensure you won’t lose the bonus at closing, either. It’s also important to be able to meet the account’s minimum balance requirements. It may not make sense for you to keep $10,000 in a low-earning account just to earn a $200 bonus, for example.

Do the math. Let’s say you do deposit and maintain $10,000 in a new savings account that has an interest rate of 0.01%, which is typical of brick-and-mortar savings accounts. After a year, you’ll have earned $1 in interest. Add that to your $200 bonus and you can add a whopping $201 to your savings. Now, if you were to forgo the bonus offer and deposit your $10,000 into a high-yield savings account with a 2.25% APY, you’ll earn just over $227 after a year (with monthly compounding) — a better savings boost than the savings account bonus offer.

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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Best of, Earning Interest

The Best High-Yield Online Savings Accounts in February 2020

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Start saving today with these high-yield bank accounts

Updated February 20, 2020
There are no excuses for sticking with a low-rate savings account these days. Online savings accounts provide consumers with interest rates that are way above those offered by conventional banks. The best online savings accounts can easily earn you an APY of 1.70% or greater, while the average rate offered by a traditional brick-and-mortar bank remains at a paltry 0.27%.

If you’re still skeptical about switching to an online bank, consider the facts. Your funds are just as safe stashed with an FDIC-insured online bank as they would be with the bank branch on Main Street, and you’re likely to get better technical support with an online-only bank website and app. Many offer round-the-clock customer support and online chat features that make it easy to resolve issues without needing to visit a branch in person. Along with higher rates, you may end up saving on the cost of the account. With lower overhead costs, online banks typically charge lower fees.

Every month we review and compile the best savings account offers from online banks. Our ranking factors in features such as a higher-than-average interest rate, no minimum balance requirement, and superior ATM access.

1. High Rate: Capital One – 1.70% APY, no minimum balance

360 Performance Savings from Capital OneA consistent rate leader for its deposit accounts, Capital One now offers its 360 Performance Savings. With a 1.70% 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.

SEE DETAILS 

Member FDIC

2. High Rate: American Express National Bank – 1.70% APY, no minimum balance (and no fees)

High Yield Savings Account from American Express National BankOur sponsored advertiser, American Express National Bank, offers a Personal Savings account, which earns a 1.70% variable Annual Percentage Yield (APY) as of 12/11/2019. 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.

SEE DETAILS Secured

on American Express National Bank’s secure website

Partner Offer

Member FDIC

3. 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.

SEE DETAILS Secured

on Goldman Sachs Bank USA’s secure website

Member FDIC

4. High Rate: Barclays Bank – 1.70% APY, no minimum balance

Online Savings Account from BarclaysBarclays 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 1.70% 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.

SEE DETAILS Secured

on Barclays’s secure website

Member FDIC

5. High Rate: Synchrony Bank – 1.70% APY, no minimum balance, (and ATM access)

High Yield Savings from Synchrony BankSynchrony Bank pays a healthy 1.70% 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.

SEE DETAILS 

Member FDIC

6. Favorite Online Package: Ally Bank – 1.60% APY, no minimum balance and you can get a free checking account

Online Savings Account from Ally BankAlly 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 1.60%. 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.

SEE DETAILS Secured

on Ally Bank’s secure website

Member FDIC

7. High Rate: Vio Bank – 1.85% APY, $100 to open

High Yield Online Savings Account from Vio BankVio 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 1.85% 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.

SEE DETAILS Secured

on Vio Bank’s secure website

Member FDIC

8. High Rate: CIBC Bank USA – 1.85% APY, $1,000 to open

CIBC Agility Savings - Online Only from CIBC USACIBC 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 savings account with a competitive APY of 1.85%. 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.

Now until 3/16/2020, new CIBC customers can snag a cash reward up to $400 when opening a new Agility Savings account. To earn the $400 bonus, you’ll need to deposit at least $50,000 into the account within the first 15 calendar days after opening. You must also maintain at least that much for 120 days after those 15 days. If you don’t have $50,000 to deposit, you can earn a $200 bonus instead by making a $25,000 minimum deposit within 15 days after opening. Again, you must maintain at least that much in the account for the following 120 days.

SEE DETAILS Secured

on CIBC USA’s secure website

Member FDIC

9. High Rate: Citizens Access – 1.85% APY, $5,000 minimum balance amount

Online Savings Account from Citizens AccessCitizens 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 1.85% 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.

SEE DETAILS Secured

on Citizens Access’s secure website

Member FDIC

10. High Rate: Live Oak Bank – 1.85% APY, no minimum to open, no minimum balance to earn APY

Savings Account from Live Oak BankFounded 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.

SEE DETAILS Secured

on Live Oak Bank’s secure website

Member FDIC

11. High Rate: Betterment – 1.83% APY, $10 minimum to open

Betterment Everyday Cash Reserve - Promo Rate from BettermentBetterment is an investment company and one of the best robo-advisors. Since its creation, the mission of this company has always been to empower its customers to make the most of their money. With this mission in mind, the online brokerage decided to offer a high-yield savings account with an outstanding rate. While this account is not like your typical online savings account, it does come up with an outstanding rate. How is it different from other savings accounts? For one, Betterment is not a bank and is not FDIC insured. Fortunately, the company has partnered with a number of banks to offer FDIC insurance to accountholders. Essentially, your funds are deposited with the partner banks and will be insured up to $250,000 at each partner bank. One big benefit that Betterment is currently offering is the ability to opt out of depositing your money at a specific bank.

If you’re comfortable with the way this account is structured, you’ll be rewarded with a 1.83% APY. You only need $10 to open the account and there isn’t a minimum balance amount to earn the APY. This account doesn’t come with any maintenance fees and you can transfer money from the Betterment Everyday Cash Reserve account as many times as you want. If you choose to withdraw money from this account, it’ll be transferred to your linked checking account within 1 to 2 business days. While these types of emerging cash management accounts may not be for everyone, we do feel like they deserve a place on this list due to their outstanding rates.

SEE DETAILS Secured

on Betterment’s secure website

FDIC Insured

12. High Rate: CIT Bank – 1.75% APY, $100 to open

Savings Builder from CIT BankCIT 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 1.75% 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:

  1. Make a monthly deposit of $100 or more into this account
  2. 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.

Now until 5/30/2020, CIT Bank is offering all customers — both new and existing — the chance to earn up to $300 in bonus cash. When you open a new Savings Builder account with a deposit between $25,000 and $49,000, you’ll snag a $150 bonus. The bonus increases to $300 if your deposit is $50,000 or more. You can earn only one bonus. New customers can enroll with the promo code Spring20, while existing customers can enroll through their CIT login.

SEE DETAILS Secured

on CIT Bank’s secure website

Member FDIC

13. Unique Bank + Highest Overall Rate: Fitness Bank – 2.20% APY, $100 minimum to open

Fitness Savings (12,500+ Steps) from FitnessBankFitness 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 2.20% 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 2.20% 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.

SEE DETAILS Secured

on FitnessBank’s secure website

Member FDIC

14. High Rate: Elements Financial – 2.10% APY, $2,500 minimum balance amount

Helium Savings 1 year Promo - New Money from Elements FinancialElements Financial was established in 1930 and currently has over $1.6 billion in assets. Its success is most likely attributed to its ability to reach customers nationwide. Anyone can become a member of this credit union just by opening a checking or savings account, or by applying for a loan or credit card. Regardless of the account you choose to open, Elements Financial will open a savings account for you and deposit $5 into the account to get you started.

If you choose to open a savings account with this credit union, you should consider opening the Helium Savings account. The credit union is currently running a promotion on this account with a 2.10% APY that is guaranteed for one year (or 12 statement cycles). Once the promotional period ends, the rate will drop to 1.30% (or whatever the rate is at the time the promotional period ends for you). The account requires a minimum deposit of $2,500 of new money to earn the APY, but you only need a minimum of $100 to open the account. However, you won’t earn interest if you have less than $2,500 in the account. Existing customers don’t qualify for the promotional APY. There aren’t any monthly maintenance fees associated with this account. You’ll be given an Elements ATM card to withdraw money from the credit union’s surcharge-free network. The credit union also has a mobile app that allows you to manage and maintain the account on-the-go.

SEE DETAILS Secured

on Elements Financial’s secure website

NCUA Insured

15. High Rate: BrioDirect – 2.00% APY, $25 minimum balance amount

High-Yield Savings from BrioDirectBrioDirect is powered by Sterling National Bank, which is a large bank in New York with over $29 billion in assets. This online brand recently launched with a high 2.00% APY. You only need $25 to open the account and you’ll need to maintain at least this amount on a daily basis to earn the APY. This account doesn’t have a monthly service fee and can be funded via ACH, wire transfer, or check. There are limitations to the amount of money you can transfer in and out via ACH. BrioDirect limits incoming ACH transfers to $500,000. The bank limits outgoing ACH transfers to $25,000 per transaction and a total of $125,000 per month. You are able to link as many external bank accounts as you’d like to this account. You can also initiate ACH deposits and withdrawals from other banks. You can manage this account online or from Sterling National Bank’s mobile app.

SEE DETAILS Secured

on BrioDirect’s secure website

FDIC Insured

16. High Rate: First Foundation Bank – 2.00% APY, $1,000 to open

Online Savings Account - New Money Only from First Foundation BankFirst 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 2.00%. 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 1.00%. 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.

SEE DETAILS Secured

on First Foundation Bank’s secure website

Member FDIC

17. High Rate: Prime Alliance Bank – 1.96% APY, $10,000 minimum balance amount

Personal Savings Account from Prime Alliance BankPrime 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 1.96%. If your balance is below the amount, you’ll earn 1.86% 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.

SEE DETAILS Secured

on Prime Alliance Bank’s secure website

Member FDIC

18. High Rates on two savings accounts: Customers Bank – 1.95% or 1.95% APY, $5,000 or $25,000 to open depending on account

High-Yield Savings Account from Customers BankCustomers Bank was established in 1997 and has grown to be known as a “super-community bank” in Pennsylvania, Washington D.C., Illinois, New York, New Jersey, and New England. The bank has over $9 billion in assets, making it a mid-sized bank. Currently, Customers Bank is offering two outstanding rates on two different accounts. Its Digital Savings Account requires a minimum deposit and balance of $5,000 to earn a high rate of 1.95%. This account doesn’t have any monthly fees. You can open this account here.
If you have $25,000 to deposit, the High-Yield Savings Account is a better fit for you. If you can deposit and maintain a minimum of $25,000 into the account, this bank will reward you with a 1.95% APY. You’ll have to maintain this balance to continue earning the high rate. You must fund the account within 30 days of receiving application approval. This account doesn’t come with any monthly fees.
A few items to be aware of: these accounts don’t come with checks or a debit card. Customers Bank does have ACH transfer limitations of $5,000 per day and $50,000 per statement cycle. You can easily open these accounts online and manage the account via Customer Bank’s website or mobile banking app. Deposits are FDIC-insured.

SEE DETAILS Secured

on Customers Bank’s secure website

Member FDIC

19. For High Balance Savers: Digital Federal Credit Union – 1.92%APY, $25,000 minimum to earn APY

DCU Ltd Savings from Digital Federal Credit Union (DCU) Digital Federal Credit Union was chartered in 1979 and today, serves over 800,000 members in 50 states. Membership is open to employees and retirees from over 700 companies, members of select organizations and communities and eligible family members. DCU has branded branches in Massachusetts and New Hampshire, in addition to thousands of CO-OP Shared Branches nationwide.

While there is no minimum deposit requirement, DCU offers its competitive 1.92% APY on Ltd Savings balances of $25,000 and over. Any balances under that do not earn interest, making this a better choice for higher-balance savers. There is no monthly fee.

It’s best to keep your money in this account without much movement, as you’re allowed only one free transfer per month. Each transfer out of the account after that will cost you $25.

SEE DETAILS 

NCUA Insured

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

Primary Savings from Digital Federal Credit Union (DCU)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.

SEE DETAILS 

NCUA Insured

How to find the right savings account for you

  • Focus on rates, but 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, compare, compare. 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.
  • Carefully consider CDs. CDs allow savers to earn more on their savings by agreeing to lock up their funds for a set period of time. With CDs, you make your initial deposit at a set APY and wait for the CD term to mature. With most CDs, you can’t touch the original deposit amount before maturity without paying a penalty. Since CDs are less liquid than a standard savings account, they’re good for setting aside money you won’t need to access in the near term. Typically, we recommend using CDs for long-term goals, like accumulating a down payment for a home.

January savings index

We asked 1,041 Americans about their savings habits during the month of January. Here’s what we found:

  • Overall, 39% of Americans increased their savings in January 2020, while 17% of Americans withdrew money from their savings.

  • The number of Americans who added money to savings in January dropped to its lowest point since October 2019.

  • Men increased savings at a higher rate than women: Forty-six percent of men added to their savings account in December, compared with just 33% of women. Meanwhile, 27% of women said they don’t have any savings, versus just 15% of men.

  • Nearly 3 in 10 Gen Zers withdrew money from their savings account in January, a higher rate than all other generations.
  • Consumers with a household income surpassing $100,000 are more than 13 times as likely to have a savings fund than those earning less than $25,000. Additionally, only a quarter of those earning under $25,000 per year saved money during December.
  • Top 3 things Americans saved for in December: general savings (32%), emergencies (26%) and vacation (23%).

Survey Methodology

MagnifyMoney commissioned Qualtrics to conduct an online survey of 1,041 Americans, with the sample base proportioned to represent the overall population. The survey was fielded Jan. 15-20, 2020. Generations are defined as: Generation Z ages 18-22, millennials ages 23-38, Generation Xers ages 39-53, baby boomers ages 54-73 and Silent Generation ages 74 and older.

How the Fed impacts online savings rates

The interest rates offered by banks are tied to the federal funds rate, which is set by the Federal Reserve’s Federal Open Market Committee (FOMC). This includes the deposit account rates that grow your money in savings and other deposit accounts.

When the Fed hikes rates, online banks are far quicker than traditional banks to raise their rates in response. This is clear when you compare average rates from December 2018, just after the Fed ended its two-year-long rate hike streak. The average APY offered by big banks at that time was a paltry 0.26% vs. 2.10% on average for online banks.

We’re well past that rate hike trend in 2020. The Fed delivered three rate cuts in the second half of 2019, followed by a continuing pause on monetary policy. The odds of a rate hike these year are nonexistent, as its more likely we’ll see a rate cut at the end of this pause. The Fed did nothing at its January meeting, and didn’t give much of a clue as to what would cause them to make a change to their current policy stance.

Still, the average APY for online savings accounts continues to tower over brick-and-mortar rates: 1.73% APY for online accounts vs. the stagnant 0.27% at traditional bands.

Unfortunately, the bleak federal funds rate outlook doesn’t bode too well for deposit account rates overall. Banks started dropping their rates when the Fed took a pause at the start of 2019, slashed them even more when actual rate cuts were announced and continue to cut on through 2020. Luckily for consumers, online banks are extremely competitive and need to remain so if they want to maintain their edge.

In the January 2020 Ally Financial earnings call, Ally CFO Jennifer LaClair acknowledged that Ally rates dropped from the peak online savings average rate of 2.20% down to a significantly lower 1.60%. Additionally, they expect CDs to be rolling off around 1.80%. Still, Ally Bank saw record customer growth in the 4th quarter of 2019, despite “increased competition.”

Certainly, more and more online banks or online-only offerings from big banks are popping up. In their earnings call, Discover said much of the same, adding that they have their “product set and the ability to compete,” which is backed up by their high-yield accounts.

Meanwhile, big banks like JP Morgan Chase and Wells Fargo remain uncompetitive. JP Morgan Chase didn’t boost their rates even when the Fed was raising rates, so there was little to do when rates began to go down and they remain low. Wells Fargo expects retail banking deposit costs to decline as their promotional rates expire.

As for what that all means for you, 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. You might see an overall decrease in online savings rates (moreso in the competitive rate-chasing CD space), but they’ll still outperform most brick-and-mortar rates any day.

The bottom line

So what’s a saver to do? At the end of the day, you want the account that makes the most sense for you. Choose the one that lets you save and manage your money in the best ways possible. The most efficient way to consistently grow your money is to open an online savings account. These accounts will offer the best interest rates compared to brick-and-mortar banks, no matter where the federal funds rate goes this year — plus, they’re easily accessible in case of emergency. If you don’t need immediate access to your money and you have some extra cash lying around, open a high-yield CD as a more long-term savings alternative.

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