Opening a savings account is a great way to put aside those hard-earned pennies for a rainy day. A savings account is a specific form of bank account offered by credit unions and banks. Insured by the federal system, these accounts generally pay out interest, but at a lower rate when compared to other monetary products that are government-insured.
One of, if not the main, thing to look for when browsing for a savings account is the interest rates. The interest rates associated with savings account are notoriously low, with some even offering as little as 0.01%. That said, savings accounts are generally more of a place to put aside money that is easy to withdraw in case of an emergency, and not as a place for your finances to grow rapidly.
These are the best savings accounts currently on the market today, according to research by Investopedia.
Virtual Bank - 1.25% APY
Known as an eMoney Market, Virtual Bank's savings account offers a low minimum opening deposit of $100, interest earnings paid month, minimum to earn interest at $0.01, and free online and mobile banking, including free mobile deposits.
n.b. You'll need to maintain a daily minimum balance of $100 to avoid a $5 monthly service charge, which might help keep you from dipping into your savings.
SmartyPig - 1.25% APY
Touted as "one of the best interest rates in the country," SmartyPig is a free online savings bank created for those looking to save for financial goals, such as vacations, first home and even retirement. The tiered interest rates, the more you save, the better rates you can earn.
CFG Bank - 1.25% APY
With a growing national presence, CFG Bank is headquartered in Baltimore, Maryland. Their Money Market Account offers competitive interest rates without high risks. A solid option for helping your savings grow. The initial minimum deposit is towards the higher end at $1000, but if you maintain at least this sum, you'll avoid the $10 a month maintenance fee.
Vio Bank - 1.21% APY
Vio Bank is the online bank division of one of the largest privately-owned banks in the U.S. and offers a High Yield Savings accountants. They pride themselves on regularly monitoring the competition, ensuring their rates are some of the best on the market. The minimum initial deposit is $100 and with 6 free withdrawals per monthly statement cycle, this is a great option if you want the option of easier access to your money.
Citi - 1.20% APY
Citi offers an Accelerated Savings Account which gives you the ability to earn interest along with setting up automatic transfers. Easy to access and simple to manage. Citi's Accelerated Savings Account has no minimum initial deposit amount and no monthly maintenance fee as long as you keep a balance of at least $500 otherwise, it's $4.50.