case for saving money in the Best Bank for savings account

Best Bank for savings account in September 2022

A savings account is a great way to grow your money while keeping it accessible. But with so many banks and credit unions to choose from, it can be hard to know where to start. That’s why we’ve compiled a list of the best bank savings account for September 2022. Whether you’re looking for the highest interest rates, the lowest fees, or the best customer service, one of these banks is sure to meet your needs.

But before giving you the list to choose from, you need to know that there are various factors to take into account when selecting the Best Bank for savings account.

How to choose the Best Bank for Savings Account?

Ask yourself these queries to determine which one is the Best Bank for savings account for you:

Percentage of yield yearly. What is their interest rate? Keep an eye out for accounts with greater yearly percentage yields and regularly compounded interest.

Fees for maintenance. Exists a monthly maintenance cost, and is it refundable? Monthly account fees are imposed by some banks, but they are typically avoidable by maintaining minimum balances or having multiple accounts.

Limitations on transactions. Exists a transactional cap? Despite the suspension of the federal rule limiting transaction limitations, many banks still place monthly limits on the number of transfers and withdrawals you can make.

Minimum standards. Exist any minimum deposit or balance requirements? Banks may impose minimum balance requirements or require a minimum deposit to create a savings account.

Other elements. The length of the application process and whether you need to have other accounts with that bank are possible additional factors.

Here is Loanqsua’s list of the best banks for savings account rates:

Best Bank for savings account and rates in September 2022

Important: You should be aware that some banks prefer to refer to their savings accounts as “money market” accounts. 
Checks can typically be written on money market accounts but not on savings accounts. 
Even though the names might imply differently, none of the accounts you’ll discover in our rating below act like checking accounts and all operate like savings accounts.

Bread Savings (formerly Comenity Direct)

  • Initial down payment minimum: $100
  • Minimum continuous balance: Any amount
  • Monthly cost: None
  • ATM card: No
  • Mobile check deposit: Yes
  • Available checking accounts: No
  • Available CDs: Yes

TotalDirectBank, Money Market Account – 2.60% APY

  • Initial down payment minimum:$2,500
  • Minimum continuous balance: $2,500 to earn stated APY
  • Monthly cost: None
  • ATM card: No
  • Mobile check deposit: Yes
  • Available checking accounts: No
  • Available CDs: Yes
  • Note: Except for Florida citizens, TotalDirectBank is accessible to consumers nationwide.
  • Note: Despite having the term “money market” in its name, this account does not permit check writing and instead functions as a savings account.

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

  • Initial down payment minimum: $1,000
  • Minimum continuous balance:$1,000 to earn stated APY
  • Monthly cost: None with a $1,000 ongoing balance; otherwise, $10/month
  • ATM card: No
  • Mobile check deposit: Yes
  • Available checking accounts: No
  • Available CDs: Yes
  • Note: Despite having the term “money market” in its name, this account does not permit check writing and instead functions as a savings account.

Bask Bank, Interest Savings Account – 2.53% APY

  • Initial down payment minimum: Any amount
  • Minimum continuous balance: Any amount
  • Monthly cost: None
  • ATM card: No
  • Mobile check deposit: Yes
  • Available checking accounts: No
  • Available CDs: No

USAlliance Financial Credit Union, High Dividend Savings – 2.50% APY

  • Initial down payment minimum: Any amount
  • Minimum continuous balance: $500 to earn interest
  • Monthly cost: None
  • ATM card: No
  • Mobile check deposit: Yes
  • Available checking accounts: Yes
  • Available CDs: Yes

Fitness Bank, Savings Account – 2.50% APY*

  • Initial down payment minimum: $100
  • Minimum continuous balance:$100 to avoid a maintenance fee
  • Monthly cost: None with a $100 ongoing balance; otherwise, $10/month
  • ATM card: No
  • Mobile check deposit: No
  • Available checking accounts: No
  • Available CDs: No
  • Note: Fitness Bank demands an average daily step count of 12,500, which is monitored through its app, in order to earn its highest rate. Lower step counts, however, are eligible for higher APY rates. When this account is combined with a Fitness Bank checking account, the interest rate is increased.

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

  • Initial down payment minimum: $2,500
  • Minimum continuous balance:$2,500 to earn stated APY
  • Monthly cost: None
  • ATM card: No
  • Mobile check deposit: Yes
  • Available checking accounts: No
  • Available CDs: Yes

Prime Alliance Bank, Personal Savings Account – 2.26% APY

  • Initial down payment minimum: Any amount
  • Minimum continuous balance: Any amount
  • Monthly cost: None
  • ATM card: No
  • Mobile check deposit: Yes
  • Available checking accounts: Yes
  • Available CDs: Yes

First Foundation Bank, Online Savings Account – 2.25% APY

  • Initial down payment minimum:$1,000
  • Minimum continuous balance:$0
  • Monthly cost: None
  • ATM card: No
  • Mobile check deposit: Yes
  • Available checking accounts: Yes in Calif., Nev., and Hawaii
  • Available CDs: Yes in Calif., Nev., and Hawaii

Valley Direct, Online Savings Account – 2.20% APY

  • Initial down payment minimum: $1
  • Minimum continuous balance: Any Amount
  • Monthly cost: None
  • ATM card: No
  • Mobile check deposit: Yes
  • Available checking accounts: No
  • Available CDs: No

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

  • Initial down payment minimum: $500
  • Minimum continuous balance:$0
  • Monthly cost: None
  • ATM card: No
  • Mobile check deposit: Yes
  • Available checking accounts: Yes
  • Available CDs: Yes

TAB Bank, High Yield Savings Bank – 2.16% APY

  • Initial down payment minimum: Any amount
  • Minimum continuous balance: $1
  • Monthly cost: None
  • ATM card: No
  • Mobile check deposit: Yes
  • Available checking accounts: Yes
  • Available CDs: Yes

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

  • Initial down payment minimum: $25
  • Minimum continuous balance: Any Amount
  • Monthly cost: None
  • ATM card: No
  • Mobile check deposit: Yes
  • Available checking accounts: Yes
  • Available CDs: Yes
  • Note: Despite having the term “money market” in its name, this account does not permit check writing and instead functions as a savings account.

BankPurely, PurelyMoneyMarket – 2.15% APY

  • Initial down payment minimum: Any amount
  • Minimum continuous balance:$25,000 to earn interest
  • Monthly cost: None
  • ATM card: Yes
  • Mobile check deposit: Yes
  • Available checking accounts: Yes
  • Available CDs: Yes

Northpointe Bank, Ultimate Savings – 2.15% APY

  • Initial down payment minimum: $100
  • Minimum continuous balance:$25,000 to earn stated APY
  • Monthly cost: None
  • ATM card: No (only with a checking account)
  • Mobile check deposit: Yes
  • Available checking accounts: Yes
  • Available CDs: Yes

iGObanking, iGOmoneymarket – 2.15% APY

  • Initial down payment minimum: $25,000
  • Minimum continuous balance:$25,000 to  earn interest
  • Monthly cost: None
  • ATM card: No (only with a checking account)
  • Mobile check deposit: Yes
  • Available checking accounts: Yes
  • Available CDs: Yes

What is a savings Account?

Savings accounts, which are provided by banks and credit unions, offer a secure location to keep money while also earning a modest amount of interest. You add to or deduct from them by making deposits and withdrawals promptly and conveniently.

What are the benefits and drawbacks of creating a savings account and depositing your money there, then? These questions will be addressed in this overview, which will also direct you in choosing wisely how to spend your hard-earned cash.

How do savings accounts operate?

Savings accounts are readily accessible, liquid bank accounts that often offer a greater APY than checking accounts. Their ease of access sets them apart from certificates of deposit, which demand that account holders lock up savings for a predetermined period of time, generally months or years, and which typically impose early withdrawal penalties for doing so.

Although it is possible to take money out of a savings account, doing so reduces the interest that is generated. The power of compound interest will work to your advantage more the greater the account balance and the longer it is open. Compound interest, also known as gaining interest on top of interest, enables even modest deposits to grow over time into larger sums.

It is essential to weigh APYs while selecting a savings account because of that feature (because APYs include the compound interest you earn during the year). APYs are the most effective approach to compare the amount of interest you are or could be receiving.

Savings account withdrawals and purchases are more difficult than those from a checking account. Savings accounts, unlike checking accounts, frequently do not include a debit card for use, for instance, at physical or online point-of-sale locations.

Is there a maximum amount of how much I can put in my savings account?

The Consumer Financial Protection Bureau says no.  Additionally, you don’t need to worry about your insurance coverage if you have total of $250,000 or less in all of your deposit accounts at the same insured bank or credit union because your deposits are completely protected by the federal government.

Is there maximum withdrawal from savings account?

Regulation D, also known as “Reg D,” is federal regulation that places restrictions on transactions. You are only permitted to make six transfers or withdrawals from your savings account each month.  Reg is still being used by some banks even though the government has stopped it since the COVID-19 epidemic.
The cap applies to frequent transfers including debit card payments, automatic or preauthorized transfers, bill payments, and other recurring transfers. The good news is that withdrawals made in person at a bank branch or transfers made at ATMs are exempt from the rule.

In a savings account, is my money secure?

Yes. Savings accounts, unlike investment accounts, are insured against loss as long as your funds are protected by the Federal Deposit Insurance Corporation or the National Credit Union Administration. Unless your account charges fees, whatever you deposit in an FDIC- or NCUA-insured account will remain there (and, of course, unless you withdraw money).

Do the interest rates on Best Bank for savings account fluctuate over time?

Yes, rates are erratic and subject to fluctuation. Consider obtaining a certificate of deposit if you want a fixed-rate account and can lay money down for a defined amount of time without taking it out. The greatest CD rates are featured on NerdWallet’s list.

When do interest rates fluctuate?

Savings rates at financial institutions often don’t alter hourly, daily, or even monthly. In fact, it’s typical for APYs to stay the same for several months under normal circumstances.
However, it’s crucial to remember that rates are flexible and might theoretically alter at any time. Additionally, a lot of providers will alter their prices in response to what their rivals are doing. Particularly if the Federal Reserve just increased or decreased rates, you will frequently see groups of providers change their APYs at roughly the same time.
At least once a month, it’s a good idea to compare the best savings rates to ensure you’re getting the most return on your money.

What various kinds of savings accounts are there?

There is only one kind of savings account, generally speaking. Even though certain savings accounts are referred to as high-yield savings accounts, this does not always mean that they provide greater rates. Additionally included in the official definition of savings deposit accounts are money market accounts.

While some financial institutions may offer one account for everyone and allow accounts to be named as custodial savings accounts, other financial institutions may offer specific savings accounts for kids.

Here are a few alternatives for naming a savings account to indicate its owner(s):

  • A single person’s account is referred to as an individual account. This account is only accessible to you. (If the individual account holder has granted someone power of attorney, this rule may be altered.)
  • Joint account with survivorship rights: If two persons share a savings account and there are no other beneficiaries listed, and one of the joint owners passes away, the account is paid to the account holder who is still alive.
  • Payable on death (POD): The balance of an individual savings account that is designated as payable on death (POD) will be distributed to the designated beneficiaries upon the death of the account owner. A death certificate or other appropriate documentation is required. A beneficiary identified as POD on a joint account would not be entitled to this account until the final account owner passed away.
  • The Uniform Transfers to Minors Act (UTMA): or the Uniform Gifts to Minors Act (UGMA) usually specify one custodian and one minor for these kinds of accounts. Until the juvenile reaches the age of 18, or 21, depending on the state, the custodian is in charge of managing the account.

Savings accounts are not all created equal. For instance, many internet banks offer better rates than their traditional equivalents. Think about the APY, the minimum deposit requirements, and your financial objectives when selecting a savings account. While offering a competitive APY, Best Bank for savings account should also enable you the freedom to safely withdraw or move funds each statement cycle.

Best Bank for Savings Account: Pros and Cons

Pros:

  • Interest can be earned.  Your money can grow and earn interest in savings accounts.
  • Your funds are safe. Your funds in savings account are legally insured by the FDIC or the NCUA. Aids in saving money for the future. 
  • You may store money safely in savings accounts, and many checking accounts let you set up automatic deposits into your savings accounts.

Cons:

There might be a withdrawal cap.  Even though Regulation D, which restricted transactions, has been suspended, many banks still impose monthly withdrawal and transfer caps on savings accounts. Maybe with low interest rates. The interest rates on savings accounts can vary, and some account rates might not be as high as those on other savings options like investing.

Alternatives and complements to savings accounts

  • Money market accounts: Money market accounts are savings deposit accounts that may grant access to a debit card or a limited number of check-writing powers.
  • Checking accounts: Typically, checking accounts don’t offer yields that are competitive. There are some high-yield checking accounts available, but they typically have additional conditions you must fulfill, such as direct deposit or a minimum quantity of debit card transactions, in addition to a minimum balance. Additionally, the high yield could be restricted to a specific sum of money.
  • Certificates of Deposit: For the duration of the CD, a fixed-APY CD offers the same yield. A CD is a technique to earn a fixed APY over the course of a term as most savings accounts offer fluctuating returns. However, if money is withdrawn too soon from a CD, there is typically an early withdrawal penalty.
  • CDs with no penalty: No-penalty CDs may give up additional freedom for a lower APY than a standard CD: Money removed prior to the term’s end is normally not subject to fees.
  • Money market mutual funds don’t have government insurance, but they do pay interest and may let you write checks.

What Are Some Uses for a Savings Account?

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

  • A reserve account. As a general rule, save enough money for three to six months’ worth of spending. Even while saving so much money can seem difficult, making tiny weekly contributions will help you achieve your goal, and a savings account is a terrific location to do it.
  • Down payment on a home. According to ATTOM Data Solutions, the median down payment for a home in the first quarter of 2022 was $25,200.
  • Major purchases like a car or trip.Similar to how they were in the 1960s and 1970s, when banks frequently provided “holiday club” voucher booklets to assist savers in staying on track with their objectives, these are still common applications for savings accounts.
  • College start-up capital A savings account can serve as a central repository for all of your college earnings if you’re just starting to collect them from multiple sources, such as family or summer jobs.

Savings accounts, however, become less appealing when your financial objectives become more long-term because they are designed to hold money rather than grow it. For instance, you might wish to invest your college money in a tax-advantaged investment vehicle called a 529 plan.

This brings up a crucial point: Although some individuals consider storing money in a savings account to be an investment, Warren Buffet, a millionaire investor, once observed, “The worst investment you can have is cash.” And a savings account is just a place to keep the cash.

Savings accounts have been likened by some financial gurus to stuffing cash into a shoebox. Savings accounts are, after all, federally insured, so it’s not really that horrible. However, the interest a savings account typically receives does not keep up with inflation, thus putting money in a savings account over an extended period of time is equivalent to losing money.