Savings Account Comparison | The Best Savings Accounts
There are a lot of savings accounts out there. So many that your head can start to hurt by comparing them all.
But at the end of the day, all you need are the best savings accounts to consider.
I did the work for you and narrowed the list down to a handful.
I’ve weeded out the ones that tricked me into a teaser high interest rate and then dropped it a month later. I’ve omitted the ones that have horrible customer service or websites so poorly designed you can’t figure out how to do anything.
What you are left with are the absolute best savings accounts out there.
Be sure to scroll down past the savings account comparison as there is important information about bank savings accounts in general you need to know.
This information will help you make the best decision for you.
Top Pick – CIT Bank Savings Builder
With one of the highest paying interest rates in the U.S. CIT Bank stands out as the best high yield savings account. Add in ease of use and great customer service, and you have a clear winner.
Other Top Savings Accounts
I know the best option isn’t best for everyone.
So here are a few more top picks to help you make saving money more easy and fun.
Savings Account Features | What You Need To Know
Before you open a savings account, you need to know some key terms and features so there aren’t any surprises.
Here are the basics to get you started.
- Savings account: A savings account is a dedicated account for you to deposit money into and keep for the long term. Whereas a checking account has you make deposit and withdraws frequently, savings accounts should only have deposits on a regular basis. And due to federal regulations, most banks limit withdraws from savings accounts to 6 per statement cycle.
- Interest: This is the money you earn on your savings balance. In most cases, the interest accrues, or adds up, over the course of the month and is then credited to your account at month end.
- Compound Interest: Compound interest is the money you earn based on your savings balance. It is called compound interest because you also earn interest on the interest you earn. In other words, as your balance grows larger, the amount of interest you earn will grow in size as well.
- Compounding Period: There are different compounding periods banks use to accrue interest. Most accrue interest daily or monthly. The more frequently interest is compounded, the more interest you will earn. The best banks compound interest daily. Be sure to read the fine print so you understand the compounding period of any savings account you are considering. If two banks are paying the same interest rate, but one is compounding daily while the other is compounding monthly, you will earn more interest with the account that compounds daily.
- Annual Percentage Yield (APY): This is amount of interest you can expect to earn in a year and is expressed as a percent. It is based on the interest rate and how often interest is paid out during the year.
Frequently Asked Questions
Below are the most asked questions I get when it comes to savings accounts.
If you have a question, it is most likely answered here.