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New York Savings Rates 2016

If you have your savings dollars in a bank with low savings rates, then you are losing real money. With the magic of compounding interest, even an interest rate difference under 1% can really add up over time. See our Savings Booster Calculator to see why you should seek out a higher interest rate. The table below has an unbiased list of the savings and money market account rates of FDIC-insured banks that are near your current location (if they aren’t, then change the zip code above). Take a few minutes to explore these options and see how you can boost your savings by more than 6X the national average rate. You may also want to check credit unions near you or online banks by navigating through the tabs above. There is competition for your money. Take advantage of it!

NY - December 4, 2016

Savings Account National Average Rate: 0.12% ?

BANKS APY Vs. Nat'l Av. MIN MILES ?
HSBC Bank USA, National Association 1.01% 8.28x $10,000 -
Spring Bank 0.85% 7.00x $1,000 -
Spring Bank 0.85% 6.97x $1 -
Massena Savings and Loan 0.76% 6.23x $25,001 -
Apple Bank for Savings 0.75% 6.15x $25,000 -
Spring Bank 0.75% 6.15x $25,000 -
MERCANTIL COMMERCEBANK, NATIONAL ASSOCIATION 0.70% 5.74x $25,000 -
The Westchester Bank 0.65% 5.33x $1,000 -
MERCANTIL COMMERCEBANK, NATIONAL ASSOCIATION 0.65% 5.33x $10,000 -
Greater Hudson Bank 0.60% 4.92x $1 -
The North Country Savings Bank 0.60% 4.92x $25,000 -
First American International Bank 0.60% 4.92x $10,000 -
First Central Savings Bank 0.55% 4.51x $25,000 -
Amerasia Bank 0.51% 4.18x $25,000 -
Hamlin Bank and Trust Company 0.50% 4.10x $25 -
Capital One, National Association 0.50% 4.10x $100,001 -
Indus American Bank 0.50% 4.10x $5,000 -
Customers Bank 0.50% 4.10x $10,000 -
Esquire Bank, National Association 0.50% 4.10x $5,000 -
Cross County Savings Bank 0.50% 4.10x $15,000 -
The North Country Savings Bank 0.45% 3.69x $10,000 -
Victory State Bank 0.45% 3.69x $25,001 -
NewBank 0.45% 3.69x $25,000 -
Carver Federal Savings Bank 0.40% 3.28x $10,000 -
Bank of Utica 0.40% 3.28x $250 -
Alma Bank 0.40% 3.28x $100 -
Emigrant Bank 0.40% 3.28x $100 -
NorthEast Community Bank 0.40% 3.28x $1 -
BNB Hana Bank, National Association 0.40% 3.28x $2,500 -
Customers Bank 0.40% 3.28x $50 -
Savoy Bank 0.40% 3.28x $25 -
The Bank of Greene County 0.35% 2.87x $25,000 -
Bank of Utica 0.35% 2.87x $1,000 -
First Central Savings Bank 0.35% 2.87x $10,000 -
Empire State Bank 0.35% 2.87x $25,000 -
Alma Bank 0.35% 2.87x $25,000 -
ConnectOne Bank 0.30% 2.46x $2,501 -
Medina Savings and Loan Association 0.30% 2.46x $2,500 -
NewBank 0.30% 2.46x $300 -
Apple Bank for Savings 0.30% 2.46x $25,000 -
The Delaware National Bank of Delhi 0.30% 2.46x $25,000 -
Ridgewood Savings Bank 0.30% 2.46x $25,000 -
BNB Hana Bank, National Association 0.30% 2.46x $25,000 -
Community Federal Savings Bank 0.30% 2.46x $1 -
Amerasia Bank 0.30% 2.46x $200 -
Alma Bank 0.30% 2.46x $10,000 -
Eastbank, National Association 0.30% 2.46x $10,000 -
Catskill Hudson Bank 0.30% 2.46x $25,000 -
The Upstate National Bank 0.30% 2.46x $10,000 -
Gouverneur Savings and Loan Association 0.30% 2.46x $10,001 -
The Citizens National Bank of Hammond 0.30% 2.46x $50 -
Amerasia Bank 0.26% 2.13x $1,000 -
Wallkill Valley Federal Savings and Loan Association 0.26% 2.13x $25,000 -
Spring Bank 0.25% 2.05x $1 -
Carver Federal Savings Bank 0.25% 2.05x $300 -
Carthage Federal Savings and Loan Association 0.25% 2.05x $10,000 -
MERCANTIL COMMERCEBANK, NATIONAL ASSOCIATION 0.25% 2.05x $50 -
Massena Savings and Loan 0.25% 2.05x $1 -
Cross County Savings Bank 0.25% 2.05x $10,000 -
The Upstate National Bank 0.25% 2.05x $1 -
New Millennium Bank 0.25% 2.05x $100 -
Berkshire Bank 0.25% 2.05x $50,000 -
Gouverneur Savings and Loan Association 0.25% 2.05x $10 -
Country Bank 0.25% 2.05x $2,500 -
Ponce De Leon Federal Bank 0.25% 2.05x $25,000 -
Genesee Regional Bank 0.25% 2.05x $25,000 -
Citizens Bank of Cape Vincent 0.25% 2.05x $10 -
Cattaraugus County Bank 0.25% 2.05x $2,500 -
Watertown Savings Bank 0.25% 2.05x $10 -
Medina Savings and Loan Association 0.25% 2.05x $200 -
ConnectOne Bank 0.25% 2.05x $2,500 -
Apple Bank for Savings 0.25% 2.05x $10,000 -
The Delaware National Bank of Delhi 0.25% 2.05x $10,000 -
First Citizens Community Bank 0.25% 2.05x $25,000 -
BNB Hana Bank, National Association 0.25% 2.05x $200 -
Quontic Bank 0.25% 2.05x $100 -
Northfield Bank 0.25% 2.05x $15,000 -
Indus American Bank 0.25% 2.05x $1 -
Kearny Bank 0.25% 2.05x $25,000 -
TrustCo Bank 0.25% 2.05x $200 -
Seneca Federal Savings and Loan Association 0.25% 2.05x $25,000 -
The Westchester Bank 0.25% 2.05x $100 -
NorthEast Community Bank 0.25% 2.05x $500 -
Signature Bank 0.25% 2.05x $1 -
Wallkill Valley Federal Savings and Loan Association 0.21% 1.72x $10,000 -
Chemung Canal Trust Company 0.20% 1.64x $25,000 -
Cathay Bank 0.20% 1.64x $10,000 -
Jeff Bank 0.20% 1.64x $25,000 -
Community Bank, National Association 0.20% 1.64x $25,000 -
Catskill Hudson Bank 0.20% 1.64x $1 -
Cayuga Lake National Bank 0.20% 1.64x $10 -
Banco Popular North America 0.20% 1.64x $1 -
Victory State Bank 0.20% 1.64x $1 -
Empire State Bank 0.20% 1.64x $2,500 -
Ridgewood Savings Bank 0.20% 1.64x $100 -
Eastbank, National Association 0.20% 1.64x $250 -
The Delaware National Bank of Delhi 0.20% 1.64x $5 -
PCSB Bank 0.20% 1.64x $2,501 -
BCB Community Bank 0.20% 1.64x $10,000 -
Cross County Savings Bank 0.20% 1.64x $1 -
TD Bank, National Association 0.20% 1.64x $25,000 -
United Orient Bank 0.20% 1.64x $100 -
Carver Federal Savings Bank 0.20% 1.64x $10,000 -
The Bank of Greene County 0.20% 1.64x $10 -
Global Bank 0.20% 1.64x $1 -
Country Bank 0.20% 1.64x $2,500 -
Rondout Savings Bank 0.20% 1.64x $10 -
Watertown Savings Bank 0.20% 1.64x $100 -
TrustCo Bank 0.20% 1.64x $15,000 -
Astoria Bank 0.20% 1.64x $25,000 -
Sawyer Savings Bank 0.20% 1.64x $25,000 -
NewBank 0.20% 1.64x $2,000 -
MERCANTIL COMMERCEBANK, NATIONAL ASSOCIATION 0.20% 1.64x $100 -
Indus American Bank 0.20% 1.64x $1 -
Abacus Federal Savings Bank 0.15% 1.23x $500 -
Fairport Savings Bank 0.15% 1.23x $25,000 -
Bank of Akron 0.15% 1.23x $25,000 -
Industrial and Commercial Bank of China (USA), National Association 0.15% 1.23x $25,000 -
Carver Federal Savings Bank 0.15% 1.23x $1 -
Victory State Bank 0.15% 1.23x $2,501 -
Cathay Bank 0.15% 1.23x $10,000 -
Gouverneur Savings and Loan Association 0.15% 1.23x $2,501 -
Savannah Bank National Association 0.15% 1.23x $25 -
SussexBank 0.15% 1.23x $25,000 -
Alma Bank 0.15% 1.23x $1,000 -
USNY Bank 0.15% 1.23x $1 -
ConnectOne Bank 0.15% 1.23x $1 -
Genesee Regional Bank 0.15% 1.23x $10,000 -
Valley National Bank 0.15% 1.23x $25,000 -
Modern Bank, National Association 0.15% 1.23x $15,000 -
Bank of the Ozarks 0.15% 1.23x $25,000 -
Seneca Federal Savings and Loan Association 0.15% 1.23x $2,500 -
Gibraltar Private Bank & Trust Co. 0.15% 1.23x $1 -
Empire State Bank 0.15% 1.23x $2,500 -
TrustCo Bank 0.15% 1.23x $15,000 -
Webster Bank, National Association 0.15% 1.23x $25,000 -
Saratoga National Bank and Trust 0.15% 1.23x $25,000 -
Ulster Savings Bank 0.15% 1.23x $2,500 -
Wallkill Valley Federal Savings and Loan Association 0.15% 1.23x $10 -
Rondout Savings Bank 0.15% 1.23x $2,500 -
Hometown Bank of the Hudson Valley 0.15% 1.23x $25,000 -
Geddes Federal Savings and Loan Association 0.15% 1.23x $1,000 -
TD Bank, National Association 0.15% 1.23x $10,000 -
Five Star Bank 0.15% 1.23x $25,000 -
Ponce De Leon Federal Bank 0.15% 1.23x $10,000 -
Northfield Bank 0.15% 1.23x $10,000 -
Amalgamated Bank 0.15% 1.23x $25,000 -
Generations Bank 0.15% 1.23x $25,000 -
CTBC Bank Corp. (USA) 0.15% 1.23x $10,000 -
Customers Bank 0.15% 1.23x $50 -
Catskill Hudson Bank 0.15% 1.23x $100 -
Pathfinder Bank 0.15% 1.23x $25,000 -
New Millennium Bank 0.15% 1.23x $1,000 -
Salisbury Bank and Trust Company 0.15% 1.23x $25,000 -
Flushing Bank 0.15% 1.23x $5,000 -
Northwest Bank 0.15% 1.23x $5,000 -
Banco Popular North America 0.15% 1.23x $25,000 -
Glens Falls National Bank and Trust Company 0.15% 1.23x $25,000 -
Berkshire Bank 0.15% 1.23x $25,000 -
Berkshire Bank 0.13% 1.07x $25,000 -
Hometown Bank of the Hudson Valley 0.12% 0.98x $250 -
Apple Bank for Savings 0.11% 0.90x $25,000 -
Webster Bank, National Association 0.10% 0.82x $10,000 -
The Berkshire Bank 0.10% 0.82x $300 -
Apple Bank for Savings 0.10% 0.82x $1 -
The Adirondack Trust Company 0.10% 0.82x $1 -
Bank of Akron 0.10% 0.82x $10,000 -
Flushing Bank 0.10% 0.82x $1 -
Champlain National Bank 0.10% 0.82x $1 -
TrustCo Bank 0.10% 0.82x $1 -
Ballston Spa National Bank 0.10% 0.82x $1 -
Jeff Bank 0.10% 0.82x $1 -
Berkshire Bank 0.10% 0.82x $10 -
Wayne Bank 0.10% 0.82x $2,500 -
City National Bank of New Jersey 0.10% 0.82x $25 -
Carthage Federal Savings and Loan Association 0.10% 0.82x $10 -
Chemung Canal Trust Company 0.10% 0.82x $25,000 -
Amalgamated Bank 0.10% 0.82x $1 -
The Lyons National Bank 0.10% 0.82x $100 -
Salisbury Bank and Trust Company 0.10% 0.82x $1 -
Walden Savings Bank 0.10% 0.82x $50 -
The First National Bank of Groton 0.10% 0.82x $1 -
Cattaraugus County Bank 0.10% 0.82x $2,500 -
Cathay Bank 0.10% 0.82x $1 -
Gibraltar Private Bank & Trust Co. 0.10% 0.82x $10,000 -
Genesee Regional Bank 0.10% 0.82x $25 -
BBCN Bank 0.10% 0.82x $1 -
Hometown Bank of the Hudson Valley 0.10% 0.82x $2,500 -
Pioneer Savings Bank 0.10% 0.82x $2,500 -
Astoria Bank 0.10% 0.82x $10,000 -
East West Bank 0.10% 0.82x $10,000 -
Alden State Bank 0.10% 0.82x $10,000 -
Kearny Bank 0.10% 0.82x $100 -
Saratoga National Bank and Trust 0.10% 0.82x $10,000 -
Glens Falls National Bank and Trust Company 0.10% 0.82x $10,000 -
PCSB Bank 0.10% 0.82x $25 -
Geddes Federal Savings and Loan Association 0.10% 0.82x $25 -
Banco Popular North America 0.10% 0.82x $10,000 -
First Citizens Community Bank 0.10% 0.82x $10,000 -
The First National Bank of Dryden 0.10% 0.82x $10,000 -
Industrial and Commercial Bank of China (USA), National Association 0.10% 0.82x $2,500 -
First National Bank of Scotia 0.10% 0.82x $25,000 -
Ridgewood Savings Bank 0.10% 0.82x $10,000 -
Ponce De Leon Federal Bank 0.10% 0.82x $500 -
Rhinebeck Bank 0.10% 0.82x $10,000 -
The Bank of Greene County 0.10% 0.82x $1 -
Tioga State Bank 0.10% 0.82x $25,000 -
USNY Bank 0.10% 0.82x $1 -
Savannah Bank National Association 0.10% 0.82x $2,500 -
Wallkill Valley Federal Savings and Loan Association 0.10% 0.82x $2,500 -
Valley National Bank 0.10% 0.82x $5,000 -
Sawyer Savings Bank 0.10% 0.82x $1,000 -
Capital One, National Association 0.10% 0.82x $1 -
Ulster Savings Bank 0.10% 0.82x $250 -
Northfield Bank 0.10% 0.82x $300 -
New York Community Bank 0.10% 0.82x $1 -
Northwest Bank 0.10% 0.82x $1 -
Adirondack Bank 0.10% 0.82x $25,000 -
CTBC Bank Corp. (USA) 0.10% 0.82x $1 -
Generations Bank 0.10% 0.82x $10,000 -
SussexBank 0.10% 0.82x $10,000 -
Peoples Security Bank and Trust Company 0.10% 0.82x $25,000 -
Citizens & Northern Bank 0.10% 0.82x $200 -
Maple City Savings Bank, FSB 0.10% 0.82x $10 -
NBT Bank, National Association 0.10% 0.82x $5,000 -
BCB Community Bank 0.10% 0.82x $100 -
First Central Savings Bank 0.10% 0.82x $250 -
Sterling National Bank 0.10% 0.82x $2,500 -
Investors Bank 0.10% 0.82x $15,000 -
Pathfinder Bank 0.10% 0.82x $10,000 -
Five Star Bank 0.10% 0.82x $10,000 -
Cross County Savings Bank 0.10% 0.82x $2,500 -
Bank of the Ozarks 0.10% 0.82x $10,000 -
The Suffolk County National Bank of Riverhead 0.10% 0.82x $100 -
Solvay Bank 0.08% 0.66x $1 -
Evans Bank, National Association 0.08% 0.66x $10,000 -
Tompkins Trust Company 0.08% 0.66x $2,500 -
Tioga State Bank 0.08% 0.66x $25,000 -
Berkshire Bank 0.08% 0.66x $25 -
Orange County Trust Company 0.08% 0.66x $2,500 -
Community Bank, National Association 0.07% 0.57x $25,000 -
City National Bank 0.07% 0.57x $25,000 -
Berkshire Bank 0.06% 0.49x $10 -
Webster Bank, National Association 0.05% 0.41x $1 -
Evans Bank, National Association 0.05% 0.41x $100 -
Chemung Canal Trust Company 0.05% 0.41x $250 -
The Bridgehampton National Bank 0.05% 0.41x $1 -
Bank of Akron 0.05% 0.41x $1 -
Tompkins Trust Company 0.05% 0.41x $25,000 -
Generations Bank 0.05% 0.41x $100 -
Manufacturers and Traders Trust Company 0.05% 0.41x $25,000 -
Industrial and Commercial Bank of China (USA), National Association 0.05% 0.41x $1,000 -
Champlain National Bank 0.05% 0.41x $1 -
Alden State Bank 0.05% 0.41x $100 -
Seneca Federal Savings and Loan Association 0.05% 0.41x $50 -
New York Commercial Bank 0.05% 0.41x $200 -
Jeff Bank 0.05% 0.41x $2,500 -
Adirondack Bank 0.05% 0.41x $100 -
Bank of the Ozarks 0.05% 0.41x $100 -
Fairport Savings Bank 0.05% 0.41x $1 -
First American International Bank 0.05% 0.41x $500 -
SussexBank 0.05% 0.41x $100 -
Sawyer Savings Bank 0.05% 0.41x $2,500 -
Rhinebeck Bank 0.05% 0.41x $1 -
Woodforest National Bank 0.05% 0.41x $1 -
Astoria Bank 0.05% 0.41x $1 -
East West Bank 0.05% 0.41x $1 -
KeyBank National Association 0.05% 0.41x $2,500 -
NBT Bank, National Association 0.05% 0.41x $25 -
New York Community Bank 0.05% 0.41x $200 -
Investors Bank 0.05% 0.41x $1 -
Pathfinder Bank 0.05% 0.41x $100 -
TD Bank, National Association 0.05% 0.41x $1 -
Community Bank, National Association 0.05% 0.41x $1 -
The First National Bank of Dryden 0.05% 0.41x $50 -
Northfield Bank 0.05% 0.41x $2,500 -
Fulton Savings Bank 0.05% 0.41x $100 -
Modern Bank, National Association 0.05% 0.41x $5,000 -
Chinatown Federal Savings Bank 0.05% 0.41x $10,000 -
First National Bank of Scotia 0.05% 0.41x $50 -
Ridgewood Savings Bank 0.05% 0.41x $1 -
Greater Hudson Bank 0.05% 0.41x $25 -
Valley National Bank 0.05% 0.41x $1,000 -
First Citizens Community Bank 0.05% 0.41x $1 -
Five Star Bank 0.05% 0.41x $1 -
Pioneer Savings Bank 0.05% 0.41x $50 -
City National Bank 0.05% 0.41x $25,000 -
CTBC Bank Corp. (USA) 0.05% 0.41x $1,000 -
Orange County Trust Company 0.05% 0.41x $20,000 -
BBCN Bank 0.05% 0.41x $1 -
Peoples Security Bank and Trust Company 0.05% 0.41x $100 -
Wayne Bank 0.05% 0.41x $50 -
Northwest Bank 0.05% 0.41x $1 -
Lake Shore Savings Bank 0.05% 0.41x $10 -
Glens Falls National Bank and Trust Company 0.05% 0.41x $1,000 -
Saratoga National Bank and Trust 0.05% 0.41x $100 -
Citizens & Northern Bank 0.05% 0.41x $1 -
Abacus Federal Savings Bank 0.05% 0.41x $500 -
KeyBank National Association 0.04% 0.33x $2,500 -
Five Star Bank 0.04% 0.33x $300 -
Tompkins Trust Company 0.03% 0.25x $2,500 -
New York Commercial Bank 0.03% 0.25x $5,000 -
Elmira Savings Bank 0.03% 0.25x $200 -
Tioga State Bank 0.03% 0.25x $250 -
Sterling National Bank 0.03% 0.25x $2,500 -
Valley National Bank 0.03% 0.25x $100 -
City National Bank 0.03% 0.25x $1 -
Santander Bank, N.A. 0.03% 0.25x $2,000 -
Community Bank, National Association 0.03% 0.25x $1,000 -
Chinatown Federal Savings Bank 0.03% 0.25x $100 -
Rhinebeck Bank 0.03% 0.25x $1 -
Manufacturers and Traders Trust Company 0.03% 0.25x $2,500 -
Bank of America, National Association 0.03% 0.25x $1 -
Mahopac Bank 0.03% 0.25x $2,500 -
Orange County Trust Company 0.03% 0.25x $2,500 -
Wells Fargo Bank, National Association 0.03% 0.25x $1 -
The Canandaigua National Bank and Trust Company 0.03% 0.25x $1 -
Lake Shore Savings Bank 0.03% 0.25x $2,500 -
NBT Bank, National Association 0.03% 0.25x $1,000 -
Solvay Bank 0.03% 0.25x $1 -
New York Community Bank 0.03% 0.25x $5,000 -
New York Commercial Bank 0.02% 0.16x $2,500 -
Steuben Trust Company 0.02% 0.16x $1 -
Manufacturers and Traders Trust Company 0.02% 0.16x $1 -
Webster Bank, National Association 0.02% 0.16x $1 -
KeyBank National Association 0.02% 0.16x $2,500 -
New York Community Bank 0.02% 0.16x $2,500 -
People's United Bank, National Association 0.02% 0.16x $250 -
JPMorgan Chase Bank, National Association 0.01% 0.08x $1 -
Steuben Trust Company 0.01% 0.08x $200 -
Wells Fargo Bank, National Association 0.01% 0.08x $2,500 -
Citizens Bank, National Association 0.01% 0.08x $2,500 -
Bank of America, National Association 0.01% 0.08x $1 -
Patriot Bank, National Association 0.01% 0.08x $1 -
HSBC Bank USA, National Association 0.01% 0.08x $1 -
City National Bank 0.01% 0.08x $500 -
Banco Popular North America 0.01% 0.08x $1 -
Sterling National Bank 0.01% 0.08x $500 -
Citibank, National Association 0.01% 0.08x $1 -


BestCashCow strives to maintain the most accurate rates. If you find a rate that is not accurate, please let us know by commenting below so that we can update it. Thank you for your help.

PRODUCT INFORMATION


Local Savings Accounts 2016

Savings accounts offer depositors flexibility along with the stability of FDIC insurance (assuming your deposit amounts are within FDIC limits – see below). Savings accounts are a good place to keep money for unforeseen expenses, as well as money that you may be preparing to use and want to keep safe. Individuals often use savings accounts for a home down payment, a vacation, a wedding, a car, an emergency fund, or other near-term expenditures. However, if you have cash that you do not believe you will need for at least a year, you may want to consider investing in a certificate of deposit.

While online savings account have grown in popularity and usage dramatically over the past fifteen years, some consumers prefer opening an account in a branch and having a personal relationship with the people who safeguard their money. Physical branches also provide an easy way to get cash instantly, to deposit checks, to access to notaries, and sometimes to get free coffee and donuts.

You will find a map with all banks that are close to you here.

FDIC Insurance

BestCashCow strongly recommends that when depositing money, you stay within the insured limits of the Federal Deposit Insurance Corporation (“FDIC”). You should not deposit over $250,000 at a single bank across all products (savings or share certificates, certificates of deposit or time deposits, etc.) unless these deposits are made across different product types (individual, joint, etc). Learn more about FDIC insurance and different product types here. If you are still uncertain whether you are within FDIC limits, you should visit the FDIC's website to determine your coverage limits based on your circumstances.

Advantages of Local Savings or Money Market Accounts:

  • Higher interest rate than a checking account, usually.
  • Personal service and interaction. Unlike an online account you are building a relationship with your banker by opening it in a branch.
  • Online access. Often, depending on the size of the bank, banks enable transactions and deposits to be performed online or through a mobile application.
  • Liquidity. Depositors can withdraw their money at any time.

Disadvantages:

  • A variable interest rate. Rates can change at any time. In a falling rate environment, this is a negative. In a rising rate environment, this is a positive.
  • A lower rate than an online bank. Branches are expensive and non-online banks often can't afford to pay as much interest as an online bank.

FREQUENTLY ASKED QUESTIONS ABOUT LOCAL SAVINGS RATES


Why do savings rates vary so much?

Even though rates are at levels that are historically very low, there is competition for your money. Like any active marketplace, there are buyers and sellers of goods and services at different prices. Banks have different cost structures and they also have different needs for capital. This leads to different rates.

BestCashCow’s surveys show that online banks offer higher savings and CD rates because they have lower expenses from not having to maintain brick-and-mortar locations. Therefore, we strongly recommend that all depositors consider the rates at online banks as savings and money market accounts online can easy be set up to enable quick transfers to your favorite local bank.

What is the difference between a savings account and a money market account?

The differences between a savings account and a money market account are largely arcane. Some money market accounts offer more ways access deposits by issuing checks and debit cards, but prudent consumers will compare the two interchangeably, focusing primarily on rates and service among FDIC-insured banks (or NCUA-insured, for credit unions). Most savvy consumers who plan their expenses and financial needs ahead find the additional functionality offered by money markets to be of little value and will choose whichever account (savings or money market) has the higher rate.

What does annual percentage yield (APY) mean?

Savings rates are displayed in terms of APY to indicate the effective annual-interest return, including the compounding of interest, of the course of a single year. $100,000 deposited in a savings or CD account with a 1.20% APY will earn $1,200 in the course of the year, but monthly interest in the first few months may be less than $100 a month (this also depends on the number of days in the month). Hence, the APY rate is ordinarily a couple of basis points above the real interest rates. Unlike with a Certificate of Deposit, your actual APY in a savings may vary if the rate changes.

How do I choose the right savings account and should I consider CDs?

Begin your search with the table here on BestCashCow.com that you have found. In addition to checking online savings rates, you should also check local bank rates and local credit union rates. If you are unlikely to require access to your cash for some time, you may also consider certificates of deposit (CDs). While CDs have penalties for early withdrawal that may even eat into your principal, the rates on 2, 3, 4 and 5 year CDs are ordinarily significantly higher than savings rates. Several other sections and articles on BestCashCow can also help you to identify your proper cash allocation between savings and CDs. Access these below. You should also familiarize yourself with our Savings Booster Calculator in order to understand the importance of compounding interest at higher rates on your savings over time.

8 POINT CHECKLIST FOR A GREAT BANKING RELATIONSHIP WITH YOUR LOCAL BANK

  • Find a bank with a location convenient to you. Location counts.
  • Choose a bank with good rates. Rates are important to get continued growth of your capital.
  • Choose a bank with an extensive network of fee-free ATM machines or which reimburses out-of-network ATM fees, if you still need to regularly access cash.
  • Avoid fees. Choose a bank which doesn’t have service fees provided you maintain a certain balance, which doesn’t charge for ACH inbound and outbound transfers, and which has low fees for things like international wire transfers and bounced checks.
  • Choose a healthy bank. If you click on a bank above, you’ll be taken to the bank’s financial detail. A healthy bank has happy employees and provides loyal service to its customers. No matter how healthy your bank is, stay within FDIC insurance limits.
  • Find something of value to offset what may be slightly lower rates than online accounts offer. Develop personal relationship with your bankers. Personal relationships can help you to get appropriate financial advice, and to navigate financial challenges and needs in the future. (Be careful with the financial advice you and be sure it is appropriate. Inappropriate financial advice is worth a lot less than no financial advice.) They can also put you in touch with others in your community who could be valuable personally and professionally to know. If you don't use your local savings account as an opportunity to build these relationships, you may find that you are better of banking online.
  • Choose a bank that is going to let you access your cash when you need. The great benefit of savings accounts over any other financial product (including CDs) is that you have absolute liquidity. If your bank in creating impediments to accessing your cash (paperwork, fees, etc.), then you need another bank.
  • Be aware that you can have more than one account. Having a great local savings account at a large or small bank near you can be great, but it doesn't need to stop you from opening one or more online savings accounts, or even developing a relationship with another local bank or credit union.

SAVINGS & CD BOOSTER CALCULATOR

Find out how much extra money you can earn by moving your bank money into an account that pays more.

Input the numbers

  • george koshefsky

    April 21, 2015

    Where is the list of the worst online banks to bank with or the States to avoid

  • ctyank January 19, 2015

    January 19, 2015

    Liberty Bank...Hamden, CT...new branch opening...special savings rate, 1.50% up to $100,000.00 through 2016...do not beleive it is available to om-line customer(s)...checking account linked, free...

  • Sol @ Travis

    September 29, 2013

    @ Travis

    In many cases we do provide this information. For example, the Belmont Savings Bank rate you list above comes with a clear disclaimer if you click the Learn more button. We're always trying to improve though and will certainly continue to gather additional information. Thanks for your comment.

  • Travis MacDonald

    September 29, 2013

    I find the numbers decieving. Some of your banks listed with the highest APR have many restrictions and requirements. I feel that these should be listed on your site in the "details" section to avoid any "bait-and-switch" claims. For instance, Belmont Savings Bank in Belmont, MA is listed as having a 1.00% APR, but the savings account requires a companion checking account with a daily average balance of 250,000. Another example is Salen Five cents Bank under the online banks. The account listed is not available on their website. When I inquired about it, they told me that particular savings product was reserved as an add-on for accounts with daily balances in excess of $10,000. It seems alot of research went into the details pages in terms of company financials and whatnot. Seems like a little more research could be done on the savings and checking products themselves.

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