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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 - September 27, 2016

Savings Account National Average Rate: 0.12% ?

BANKS APY Vs. Nat'l Av. MIN MILES ?
HSBC Bank USA, National Association 1.01% 8.35x $10,000 -
NorthEast Community Bank 1.00% 8.26x $5,000 -
Spring Bank 0.85% 7.06x $1,000 -
Spring Bank 0.85% 7.02x $1 -
Capital One, National Association 0.80% 6.61x $100,001 -
Massena Savings and Loan 0.76% 6.28x $25,001 -
Apple Bank for Savings 0.75% 6.20x $25,000 -
Spring Bank 0.75% 6.20x $25,000 -
MERCANTIL COMMERCEBANK, NATIONAL ASSOCIATION 0.70% 5.79x $25,000 -
MERCANTIL COMMERCEBANK, NATIONAL ASSOCIATION 0.65% 5.37x $10,000 -
First Central Savings Bank 0.65% 5.37x $25,000 -
The Westchester Bank 0.65% 5.37x $1,000 -
The North Country Savings Bank 0.60% 4.96x $25,000 -
Greater Hudson Bank 0.60% 4.96x $1 -
Amerasia Bank 0.51% 4.21x $25,000 -
Capital One, National Association 0.50% 4.13x $1,000,001 -
Hamlin Bank and Trust Company 0.50% 4.13x $25 -
Cross County Savings Bank 0.50% 4.13x $15,000 -
Customers Bank 0.50% 4.13x $10,000 -
Indus American Bank 0.50% 4.13x $5,000 -
Esquire Bank 0.50% 4.13x $5,000 -
The North Country Savings Bank 0.45% 3.72x $10,000 -
Victory State Bank 0.45% 3.72x $25,001 -
First Central Savings Bank 0.45% 3.72x $10,000 -
NewBank 0.45% 3.72x $25,000 -
Emigrant Bank 0.40% 3.31x $100 -
Bank of Utica 0.40% 3.31x $250 -
BNB Hana Bank, National Association 0.40% 3.31x $2,500 -
NorthEast Community Bank 0.40% 3.31x $1 -
Carver Federal Savings Bank 0.40% 3.31x $10,000 -
Customers Bank 0.40% 3.31x $50 -
Alma Bank 0.40% 3.31x $100 -
Savoy Bank 0.40% 3.31x $25 -
Bank of Utica 0.35% 2.89x $1,000 -
The Bank of Greene County 0.35% 2.89x $25,000 -
First American International Bank 0.35% 2.89x $10,000 -
Empire State Bank 0.35% 2.89x $25,000 -
Alma Bank 0.35% 2.89x $25,000 -
The Delaware National Bank of Delhi 0.30% 2.48x $25,000 -
The Upstate National Bank 0.30% 2.48x $10,000 -
The Citizens National Bank of Hammond 0.30% 2.48x $50 -
Ridgewood Savings Bank 0.30% 2.48x $25,000 -
Eastbank, National Association 0.30% 2.48x $10,000 -
BNB Hana Bank, National Association 0.30% 2.48x $25,000 -
Amerasia Bank 0.30% 2.48x $200 -
Medina Savings and Loan Association 0.30% 2.48x $2,500 -
Gouverneur Savings and Loan Association 0.30% 2.48x $10,001 -
Catskill Hudson Bank 0.30% 2.48x $25,000 -
Community Federal Savings Bank 0.30% 2.48x $1 -
ConnectOne Bank 0.30% 2.48x $2,501 -
NewBank 0.30% 2.48x $300 -
Alma Bank 0.30% 2.48x $10,000 -
Amerasia Bank 0.26% 2.15x $1,000 -
Wallkill Valley Federal Savings and Loan Association 0.26% 2.15x $25,000 -
The Delaware National Bank of Delhi 0.25% 2.07x $10,000 -
First Citizens Community Bank 0.25% 2.07x $25,000 -
Citizens Bank of Cape Vincent 0.25% 2.07x $10 -
Cattaraugus County Bank 0.25% 2.07x $2,500 -
The Upstate National Bank 0.25% 2.07x $1 -
Watertown Savings Bank 0.25% 2.07x $10 -
MERCANTIL COMMERCEBANK, NATIONAL ASSOCIATION 0.25% 2.07x $50 -
Berkshire Bank 0.25% 2.07x $50,000 -
Genesee Regional Bank 0.25% 2.07x $25,000 -
BNB Hana Bank, National Association 0.25% 2.07x $200 -
Country Bank 0.25% 2.07x $2,500 -
Northfield Bank 0.25% 2.07x $15,000 -
Kearny Bank 0.25% 2.07x $25,000 -
Carthage Federal Savings and Loan Association 0.25% 2.07x $10,000 -
NorthEast Community Bank 0.25% 2.07x $500 -
Seneca Federal Savings and Loan Association 0.25% 2.07x $25,000 -
Cross County Savings Bank 0.25% 2.07x $10,000 -
Carver Federal Savings Bank 0.25% 2.07x $300 -
Massena Savings and Loan 0.25% 2.07x $1 -
Medina Savings and Loan Association 0.25% 2.07x $200 -
Gouverneur Savings and Loan Association 0.25% 2.07x $10 -
Ponce De Leon Federal Bank 0.25% 2.07x $25,000 -
TrustCo Bank 0.25% 2.07x $200 -
New Millennium Bank 0.25% 2.07x $100 -
Signature Bank 0.25% 2.07x $1 -
Quontic Bank 0.25% 2.07x $100 -
ConnectOne Bank 0.25% 2.07x $2,500 -
Indus American Bank 0.25% 2.07x $1 -
The Westchester Bank 0.25% 2.07x $100 -
Spring Bank 0.25% 2.07x $1 -
Wallkill Valley Federal Savings and Loan Association 0.21% 1.74x $10,000 -
Chemung Canal Trust Company 0.20% 1.65x $25,000 -
Cayuga Lake National Bank 0.20% 1.65x $10 -
Community Bank, National Association 0.20% 1.65x $25,000 -
The Delaware National Bank of Delhi 0.20% 1.65x $5 -
Jeff Bank 0.20% 1.65x $25,000 -
Rondout Savings Bank 0.20% 1.65x $10 -
Watertown Savings Bank 0.20% 1.65x $100 -
Putnam County Savings Bank 0.20% 1.65x $2,501 -
Ridgewood Savings Bank 0.20% 1.65x $100 -
Sawyer Savings Bank 0.20% 1.65x $25,000 -
TD Bank, National Association 0.20% 1.65x $25,000 -
Cathay Bank 0.20% 1.65x $10,000 -
The Bank of Greene County 0.20% 1.65x $10 -
MERCANTIL COMMERCEBANK, NATIONAL ASSOCIATION 0.20% 1.65x $100 -
United Orient Bank 0.20% 1.65x $100 -
Eastbank, National Association 0.20% 1.65x $250 -
Country Bank 0.20% 1.65x $2,500 -
Astoria Bank 0.20% 1.65x $25,000 -
Cross County Savings Bank 0.20% 1.65x $1 -
Carver Federal Savings Bank 0.20% 1.65x $10,000 -
TrustCo Bank 0.20% 1.65x $15,000 -
Catskill Hudson Bank 0.20% 1.65x $1 -
Victory State Bank 0.20% 1.65x $1 -
Banco Popular North America 0.20% 1.65x $1 -
BCB Community Bank 0.20% 1.65x $10,000 -
Empire State Bank 0.20% 1.65x $2,500 -
Indus American Bank 0.20% 1.65x $1 -
NewBank 0.20% 1.65x $2,000 -
Global Bank 0.20% 1.65x $1 -
Bank of the Ozarks 0.15% 1.24x $25,000 -
Amalgamated Bank 0.15% 1.24x $25,000 -
Five Star Bank 0.15% 1.24x $25,000 -
Glens Falls National Bank and Trust Company 0.15% 1.24x $25,000 -
Valley National Bank 0.15% 1.24x $25,000 -
Bank of Akron 0.15% 1.24x $25,000 -
Savannah Bank National Association 0.15% 1.24x $25 -
Rondout Savings Bank 0.15% 1.24x $2,500 -
Ulster Savings Bank 0.15% 1.24x $2,500 -
First Niagara Bank, National Association 0.15% 1.24x $15,000 -
Generations Bank 0.15% 1.24x $25,000 -
Webster Bank, National Association 0.15% 1.24x $25,000 -
TD Bank, National Association 0.15% 1.24x $10,000 -
Salisbury Bank and Trust Company 0.15% 1.24x $25,000 -
Cathay Bank 0.15% 1.24x $10,000 -
CTBC Bank Corp. (USA) 0.15% 1.24x $10,000 -
SussexBank 0.15% 1.24x $25,000 -
Modern Bank, National Association 0.15% 1.24x $15,000 -
Berkshire Bank 0.15% 1.24x $25,000 -
Industrial and Commercial Bank of China (USA), National Association 0.15% 1.24x $25,000 -
Genesee Regional Bank 0.15% 1.24x $10,000 -
Saratoga National Bank and Trust 0.15% 1.24x $25,000 -
Northwest Bank 0.15% 1.24x $5,000 -
Hometown Bank of the Hudson Valley 0.15% 1.24x $25,000 -
Northfield Bank 0.15% 1.24x $10,000 -
Kearny Bank 0.15% 1.24x $100 -
Wallkill Valley Federal Savings and Loan Association 0.15% 1.24x $10 -
Seneca Federal Savings and Loan Association 0.15% 1.24x $2,500 -
Fairport Savings Bank 0.15% 1.24x $25,000 -
Carver Federal Savings Bank 0.15% 1.24x $1 -
Geddes Federal Savings and Loan Association 0.15% 1.24x $1,000 -
Gouverneur Savings and Loan Association 0.15% 1.24x $2,501 -
Ponce De Leon Federal Bank 0.15% 1.24x $10,000 -
TrustCo Bank 0.15% 1.24x $15,000 -
Gibraltar Private Bank & Trust Co. 0.15% 1.24x $1 -
Abacus Federal Savings Bank 0.15% 1.24x $500 -
Catskill Hudson Bank 0.15% 1.24x $100 -
Customers Bank 0.15% 1.24x $50 -
Victory State Bank 0.15% 1.24x $2,501 -
Banco Popular North America 0.15% 1.24x $25,000 -
New Millennium Bank 0.15% 1.24x $1,000 -
Pathfinder Commercial Bank 0.15% 1.24x $25,000 -
Empire State Bank 0.15% 1.24x $2,500 -
ConnectOne Bank 0.15% 1.24x $1 -
Alma Bank 0.15% 1.24x $1,000 -
USNY Bank 0.15% 1.24x $1 -
Flushing Bank 0.15% 1.24x $5,000 -
Hometown Bank of the Hudson Valley 0.12% 0.99x $250 -
Apple Bank for Savings 0.11% 0.91x $25,000 -
Bank of the Ozarks 0.10% 0.83x $10,000 -
Chemung Canal Trust Company 0.10% 0.83x $25,000 -
Amalgamated Bank 0.10% 0.83x $1 -
Five Star Bank 0.10% 0.83x $10,000 -
The Adirondack Trust Company 0.10% 0.83x $1 -
Wayne Bank 0.10% 0.83x $2,500 -
Capital One, National Association 0.10% 0.83x $1 -
Ballston Spa National Bank 0.10% 0.83x $1 -
The First National Bank of Dryden 0.10% 0.83x $10,000 -
Glens Falls National Bank and Trust Company 0.10% 0.83x $10,000 -
The First National Bank of Groton 0.10% 0.83x $1 -
Jeff Bank 0.10% 0.83x $1 -
The Lyons National Bank 0.10% 0.83x $100 -
NBT Bank, National Association 0.10% 0.83x $5,000 -
The Suffolk County National Bank of Riverhead 0.10% 0.83x $100 -
The National Bank of Delaware County 0.10% 0.83x $2,500 -
Champlain National Bank 0.10% 0.83x $1 -
Peoples Security Bank and Trust Company 0.10% 0.83x $25,000 -
First Citizens Community Bank 0.10% 0.83x $10,000 -
Citizens & Northern Bank 0.10% 0.83x $200 -
Valley National Bank 0.10% 0.83x $5,000 -
Tioga State Bank 0.10% 0.83x $25,000 -
Alden State Bank 0.10% 0.83x $10,000 -
First National Bank of Scotia 0.10% 0.83x $25,000 -
Cattaraugus County Bank 0.10% 0.83x $2,500 -
Bank of Akron 0.10% 0.83x $10,000 -
Savannah Bank National Association 0.10% 0.83x $2,500 -
Ulster Savings Bank 0.10% 0.83x $250 -
Walden Savings Bank 0.10% 0.83x $50 -
Putnam County Savings Bank 0.10% 0.83x $25 -
First Niagara Bank, National Association 0.10% 0.83x $1 -
New York Community Bank 0.10% 0.83x $1 -
Ridgewood Savings Bank 0.10% 0.83x $10,000 -
Rhinebeck Bank 0.10% 0.83x $10,000 -
Sawyer Savings Bank 0.10% 0.83x $1,000 -
Generations Bank 0.10% 0.83x $10,000 -
Apple Bank for Savings 0.10% 0.83x $1 -
Webster Bank, National Association 0.10% 0.83x $10,000 -
Salisbury Bank and Trust Company 0.10% 0.83x $1 -
Cathay Bank 0.10% 0.83x $1 -
CTBC Bank Corp. (USA) 0.10% 0.83x $1 -
Pioneer Savings Bank 0.10% 0.83x $2,500 -
City National Bank of New Jersey 0.10% 0.83x $25 -
The Bank of Greene County 0.10% 0.83x $1 -
SussexBank 0.10% 0.83x $10,000 -
Berkshire Bank 0.10% 0.83x $10 -
Industrial and Commercial Bank of China (USA), National Association 0.10% 0.83x $2,500 -
Genesee Regional Bank 0.10% 0.83x $25 -
BBCN Bank 0.10% 0.83x $1 -
Saratoga National Bank and Trust 0.10% 0.83x $10,000 -
The Berkshire Bank 0.10% 0.83x $300 -
Northwest Bank 0.10% 0.83x $1 -
Hometown Bank of the Hudson Valley 0.10% 0.83x $2,500 -
Adirondack Bank 0.10% 0.83x $25,000 -
Maple City Savings Bank, FSB 0.10% 0.83x $10 -
Northfield Bank 0.10% 0.83x $300 -
Kearny Bank 0.10% 0.83x $2,500 -
Wallkill Valley Federal Savings and Loan Association 0.10% 0.83x $2,500 -
Investors Bank 0.10% 0.83x $15,000 -
Carthage Federal Savings and Loan Association 0.10% 0.83x $10 -
Astoria Bank 0.10% 0.83x $10,000 -
Fairport Savings Bank 0.10% 0.83x $10,000 -
Cross County Savings Bank 0.10% 0.83x $2,500 -
Sterling National Bank 0.10% 0.83x $2,500 -
Geddes Federal Savings and Loan Association 0.10% 0.83x $25 -
Ponce De Leon Federal Bank 0.10% 0.83x $500 -
East West Bank 0.10% 0.83x $10,000 -
TrustCo Bank 0.10% 0.83x $1 -
Banco Popular North America 0.10% 0.83x $10,000 -
First Central Savings Bank 0.10% 0.83x $250 -
BCB Community Bank 0.10% 0.83x $100 -
Pathfinder Commercial Bank 0.10% 0.83x $10,000 -
USNY Bank 0.10% 0.83x $1 -
Flushing Bank 0.10% 0.83x $1 -
Tompkins Trust Company 0.08% 0.66x $2,500 -
Capital One, National Association 0.08% 0.66x $10,001 -
Evans Bank, National Association 0.08% 0.66x $10,000 -
Tioga State Bank 0.08% 0.66x $25,000 -
Orange County Trust Company 0.08% 0.66x $2,500 -
Solvay Bank 0.08% 0.66x $1 -
Berkshire Bank 0.08% 0.66x $25 -
Community Bank, National Association 0.07% 0.58x $25,000 -
City National Bank 0.07% 0.58x $25,000 -
Berkshire Bank 0.06% 0.50x $10 -
Bank of the Ozarks 0.05% 0.41x $100 -
Manufacturers and Traders Trust Company 0.05% 0.41x $25,000 -
Chemung Canal Trust Company 0.05% 0.41x $250 -
Tompkins Trust Company 0.05% 0.41x $25,000 -
Five Star Bank 0.05% 0.41x $1 -
Wayne Bank 0.05% 0.41x $50 -
Evans Bank, National Association 0.05% 0.41x $100 -
The Bridgehampton National Bank 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 -
Glens Falls National Bank and Trust Company 0.05% 0.41x $1,000 -
Jeff Bank 0.05% 0.41x $2,500 -
NBT Bank, National Association 0.05% 0.41x $25 -
The National Bank of Delaware County 0.05% 0.41x $50 -
Champlain National Bank 0.05% 0.41x $1 -
Peoples Security Bank and Trust Company 0.05% 0.41x $100 -
First Citizens Community Bank 0.05% 0.41x $1 -
Citizens & Northern Bank 0.05% 0.41x $1 -
Valley National Bank 0.05% 0.41x $1,000 -
Alden State Bank 0.05% 0.41x $100 -
First National Bank of Scotia 0.05% 0.41x $50 -
Orange County Trust Company 0.05% 0.41x $20,000 -
Bank of Akron 0.05% 0.41x $1 -
Fulton Savings Bank 0.05% 0.41x $100 -
First Niagara Bank, National Association 0.05% 0.41x $500 -
New York Community Bank 0.05% 0.41x $200 -
Ridgewood Savings Bank 0.05% 0.41x $1 -
Rhinebeck Bank 0.05% 0.41x $1 -
Sawyer Savings Bank 0.05% 0.41x $2,500 -
Generations Bank 0.05% 0.41x $100 -
City National Bank 0.05% 0.41x $25,000 -
KeyBank National Association 0.05% 0.41x $2,500 -
Webster Bank, National Association 0.05% 0.41x $1 -
TD Bank, National Association 0.05% 0.41x $1 -
CTBC Bank Corp. (USA) 0.05% 0.41x $1,000 -
Israel Discount Bank of New York 0.05% 0.41x $5,000 -
Pioneer Savings Bank 0.05% 0.41x $50 -
SussexBank 0.05% 0.41x $100 -
Modern Bank, National Association 0.05% 0.41x $5,000 -
Woodforest National Bank 0.05% 0.41x $1 -
Industrial and Commercial Bank of China (USA), National Association 0.05% 0.41x $1,000 -
BBCN Bank 0.05% 0.41x $1 -
Saratoga National Bank and Trust 0.05% 0.41x $100 -
Northwest Bank 0.05% 0.41x $1 -
Adirondack Bank 0.05% 0.41x $100 -
Northfield Bank 0.05% 0.41x $2,500 -
Investors Bank 0.05% 0.41x $1 -
Seneca Federal Savings and Loan Association 0.05% 0.41x $50 -
Astoria Bank 0.05% 0.41x $1 -
Fairport Savings Bank 0.05% 0.41x $50 -
Lake Shore Savings Bank 0.05% 0.41x $10 -
East West Bank 0.05% 0.41x $1 -
Chinatown Federal Savings Bank 0.05% 0.41x $10,000 -
Abacus Federal Savings Bank 0.05% 0.41x $500 -
New York Commercial Bank 0.05% 0.41x $200 -
First American International Bank 0.05% 0.41x $500 -
Greater Hudson Bank 0.05% 0.41x $25 -
Pathfinder Commercial Bank 0.05% 0.41x $100 -
Five Star Bank 0.04% 0.33x $300 -
KeyBank National Association 0.04% 0.33x $2,500 -
Manufacturers and Traders Trust Company 0.03% 0.25x $2,500 -
Tompkins Trust Company 0.03% 0.25x $2,500 -
Bank of America, National Association 0.03% 0.25x $1 -
Wells Fargo Bank, National Association 0.03% 0.25x $1 -
The Canandaigua National Bank and Trust Company 0.03% 0.25x $1 -
Community Bank, National Association 0.03% 0.25x $1,000 -
Mahopac Bank 0.03% 0.25x $2,500 -
NBT Bank, National Association 0.03% 0.25x $1,000 -
Valley National Bank 0.03% 0.25x $100 -
Tioga State Bank 0.03% 0.25x $250 -
Orange County Trust Company 0.03% 0.25x $2,500 -
Solvay Bank 0.03% 0.25x $1 -
Elmira Savings Bank 0.03% 0.25x $200 -
New York Community Bank 0.03% 0.25x $5,000 -
Rhinebeck Bank 0.03% 0.25x $1 -
City National Bank 0.03% 0.25x $1 -
Santander Bank, N.A. 0.03% 0.25x $2,000 -
Sterling National Bank 0.03% 0.25x $2,500 -
Lake Shore Savings Bank 0.03% 0.25x $2,500 -
Chinatown Federal Savings Bank 0.03% 0.25x $100 -
New York Commercial Bank 0.03% 0.25x $5,000 -
Manufacturers and Traders Trust Company 0.02% 0.17x $1 -
Steuben Trust Company 0.02% 0.17x $1 -
New York Community Bank 0.02% 0.17x $2,500 -
KeyBank National Association 0.02% 0.17x $2,500 -
Webster Bank, National Association 0.02% 0.17x $1 -
People's United Bank, National Association 0.02% 0.17x $250 -
Gibraltar Private Bank & Trust Co. 0.02% 0.17x $10,000 -
New York Commercial Bank 0.02% 0.17x $2,500 -
JPMorgan Chase Bank, National Association 0.01% 0.08x $1 -
Bank of America, National Association 0.01% 0.08x $1 -
Wells Fargo Bank, National Association 0.01% 0.08x $2,500 -
Citibank, National Association 0.01% 0.08x $1 -
Steuben Trust Company 0.01% 0.08x $200 -
City National Bank 0.01% 0.08x $500 -
Sterling National Bank 0.01% 0.08x $500 -
Patriot National Bank 0.01% 0.08x $1 -
Banco Popular North America 0.01% 0.08x $1 -
HSBC Bank USA, National Association 0.01% 0.08x $1 -
Citizens Bank, National Association 0.01% 0.08x $2,500 -


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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.

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  • 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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