Introduction: Best Banks for a Savings Account and Best Online Banks for Savings
Is it really possible to find the best bank for a savings account? It seems like every street corner has at least one or two banks or credit unions, and every one of them offers some sort of savings account.
With the hundreds of online banks that have made their way on to the financial scene in recent years, can there really be a best bank to open s savings account with?
Without a doubt, savings accounts are one of the most oft utilized and popular accounts that financial institutions offer.
Despite the sheer number of savings accounts offered by different banks, there are solid and important differences that need to be taken into account. The best bank for savings may be your hometown bank where your grandparents did their banking, or it may be the online division of some mega bank located on Wall Street.
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In this brief article, Advisory HQ will look at why everyone should take the time to search for the best bank to open a savings account.
We will also offer five tips on what to look for in the best banks for savings accounts.
We will end this article by reviewing three of the best bank accounts that you can find online for all your savings needs.
See Also: The Best Savings Accounts | Ways to Find & Open a Top Savings Account
Why Everyone Needs to Find the Best Bank to Open a Savings Account
A savings account is a savings account, right? Many of us believe that there are no best banks for savings, because as long as the bank holds on to our money and offers us some sort of FDIC protection, then there really isn’t anything to be worried about.
When you go shopping for a car, however, you most likely visit several dealerships to find the best price, the best financing option, and the best perks that different companies will offer you. All of us should do the same when looking for the best bank to open a savings account.
According to CNN, “the average savings account has a measly 0.06% APY (annual percentage yield, or interest), and many of the nation’s biggest banks pay rates as low as 0.01%.” The best banks for a savings account should offer you a decently competitive interest rate.
When you put your money into a savings account, you are basically giving the bank money to play with. While they do hold your money for you in a safe place, they are also lending out that money for car loans, mortgages, and personal loans and charging quite a heavy interest rate for those loans.
The best banks for savings should recognize that part of the interest they make from loans should be given back to those who help them build their capital through savings accounts.
Furthermore, while most of us put our money into a savings account with the intention of building up a sizeable chunk of savings for future financial needs, sometimes life can be unpredictable. The best banks for savings accounts should allow flexibility in how you access your money.
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What to Look for in the Best Banks for Savings Accounts
With thousands of options to choose from, how do you know which is the best bank for savings? Since much of the banking world is going online, are the best online banks for savings any different than the traditional brick and mortar banks?
Below you’ll find five tips for what to look for in the best banks for savings accounts.
- Find the Best Bank for Savings that Will Help You with Automatic Transfers
Saving money is hard to do, especially in our consumer-driven world where we are bombarded day and night with advertisements.
While most of us dream of putting away a good amount of cash to one day put a sizeable down payment on a car, a home, or some other big purchase, it can be difficult to find the financial discipline needed to be an effective saver.
The best bank to open savings accounts should be open to helping you develop savings habits and abilities. Automatic transfers are offered by many of these best bank accounts and will automatically transfer a certain amount of money from your checking to your savings account each month.
The best banks for a savings account may even offer you the support of a financial counselor to help you determine how much you can potentially save each month. There is a huge difference between saving $15 and $50 dollars each month.
If you feel that you don’t have the discipline needed to build up money in your savings account, finding the best bank for a savings account that offers free automatic transfers is an important thing to be on the lookout for.
- The Best Banks for Savings Accounts Should Offer Mobile Check Deposits
If you hate waiting for 15 minutes in the bank drive-thru just to deposit a $50 dollar check, then you will want to start looking for the best bank for savings that also offers mobile check deposits.
This convenient feature allows you to deposit a check into your account simply by taking a picture of the check with your smartphone and depositing the funds with a mobile banking app that these best bank accounts offer.
If you’re away from home visiting family and your grandma slipped you a $100 check for your belated birthday, mobile check deposit offered by the best bank for a savings account can allow you instant access to those funds.
- The Best Banks for Savings Should Allow You Access to Your Funds Without Heavy Penalties
With any savings account, liquidity is key. If you can’t access your money without being charged heavy fees, then something is wrong with your account. While even the best banks for a savings account have monthly limits on withdrawals, there is a huge difference between being allotted one withdrawal per month and six per month.
According to Bankrate.com, “federal regulations limit savings withdrawals to six per month. To be sure, some banks permit even fewer withdrawals and add fees, too. For example, one community bank only allows three withdrawals per month. After that, they’re $10 apiece.”
While the best banks for savings should help you save for the future, emergencies do happen and you should search for the best bank accounts that won’t charge you an arm and a leg for accessing your money in an emergency.
- Look Online for the Best Bank to Open Savings Accounts
Everyday, more and more people take their banking needs to the Web. With the explosion of online banking, mobile banking apps, and other online features that make it easier to manage your money, you need to consider looking online for the best bank to open savings accounts.
While the best online banks for savings don’t necessarily offer the same level of familiarity and friendliness that your hometown bank will offer, they do have a number of features and characteristics that may make them a better option for your savings needs.
Since the best online banks for savings don’t have any costs associated with maintaining brick and mortar branches, and since they usually employ fewer people, they usually can offer higher interest rates and other perks to their clients.
If garnering a high interest rate is what you’re most interested in, then the best bank to open a savings account may very well be an online bank. It may be strange at first to work with a best bank for savings located in Albuquerque if you live in New York, but once you see those interest rates add capital to your monthly bank balance, you should get used to it pretty quickly.
- The Best Bank Accounts Should Offer You a Competitive Interest Rate
Of course, what most people are looking for in the best bank to open a savings account is competitive interest rates. The best bank for a savings account is most likely the one that will pay you best for giving them your money.
While interest rates can change unexpectedly, many of the best banks for a savings account are found online and offer 1% annual percentage rate on these accounts.
While 1% may not seem like much, especially compared to the greater possible income from other, riskier investments, the best bank to open a savings account that offers 1% interest can earn you hundreds of dollars more in interest than your typical 0.06% interest rate.
If you were to maintain an average of $10,000 over a year in a savings account at a normal bank that offered 0,06% APR, you would earn a measly six dollars in interest. If you were to invest that savings into one of the best banks for a savings account that offers 1% interest rate, your earning from interest would be $100 dollars.
As you gradually build up more and more savings over time, finding the best bank to open a savings account is an important step that could earn you money over time.
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The Top Three Best Banks for a Savings Account
If you are not ready to invest your savings in a high-risk, high-reward investment in the stock market, then a safe alternative is finding the best bank for a savings account. Below we review three of the best banks for savings that you can find online. 
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This exclusively online bank is one of the best banks for a savings account because they routinely offer the highest APR on the market. They offer a 1.05% interest rate as well as no minimum balance requirement and no monthly service fee.
With this best bank for a savings account you can be sure that the interest you earn won’t be eaten up by excessive fees. You will also benefit from easy online withdrawals or from ATMs around the country.
Furthermore, this best bank for a savings account also offers a calculator to help you calculate you potential earnings from your initial savings deposit and other monthly deposits you may make.
Ally Bank is another of the best banks to open a savings account because of their highly competitive interest rates and mobile check deposit service. Furthermore, there is no monthly service fee at this best bank for a savings account.
Interest is compounded daily instead of monthly at this best bank for savings, which will allow you to earn interest quickly. They also offer the maximum of six transactions per month thus giving you the maximum liquidity for a savings account.
Barclays is a well-known bank that is also one of the best banks for a savings account. They offer a 1% annual percentage rate and have no monthly fees. Furthermore, you can also set up direct deposit and easily transfer funds to and from other accounts you may have. This best bank to open a savings account thus allows you to enjoy a variety of extra services for no extra cost while still giving you one of the best APRs available.
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Why Searching for the Best Bank for a Savings Account Is Worth the Effort
Taking the time to search for the best bank for a savings account can help earn you lots of money in interest. Furthermore, the best online banks for savings can also offer you a number of extra perks and services that can make money management work better for you.
Read More: How to Find The Best Banks with Free Checking and No Minimum Balance
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