Editor's Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC Select will update as changes are made public.
That traditional, big bank you're used to seeing advertised in commercials and in sports arenas may be your loyal bank of choice since you were a teenager. But if you're looking to maximize your return on your cash, you should look elsewhere.
Large, national brick-and-mortar banks, as opposed to online-only banks, may offer perks like physical branch access and thousands of no-fee ATMs, but their savings rates are dismal.
In fact, the national average annual percentage yield (APY) on savings accounts is already a low 0.46% at the time of writing, but most brick-and-mortar savings account rates fall below that.
The savings accounts that earn the least money
CNBC Select found that the brick-and-mortar savings accounts offering the lowest return on your money are those with just 0.01% APY — earning savers just 1 cent per $100 a year. Plus, these accounts often have extra fees, such as monthly maintenance fees, that could reduce your returns further.
This includes basic savings accounts from traditional banks like Bank of America and Chase.
Bank of America Advantage Savings
Bank of America, N.A. is a Member FDIC.
Annual Percentage Yield (APY)
0.01%, with option to increase if aPreferred Rewards member
Minimum balance
$100 to open
Monthly fee
$8 per month, with options to waive. New account holders get the first six months with no monthly fees
Maximum transactions
Up to 6 free withdrawals or transfers per statement cycle
Excessive transactions fee
$10 when you makeover 6 withdrawals in a month
Overdraft fees
Overdraft protection when you link your savings account to your checking account
Offer checking account?
Yes
Offer ATM card?
Yes, if have a Bank of America checking account
Terms apply.
Read our Bank of America Advantage Savings review.
Chase Premier Savings℠
Chase Bank is a Member FDIC.
Annual Percentage Yield (APY)
0.01%, with option to increase up to 0.05%
Minimum balance
$0
Monthly fee
$25 per month, with options to waive
Maximum transactions
Up to 6 free withdrawals or transfers per statement cycle
Excessive transactions fee
$5 when you makeover 6 withdrawals in a month
Overdraft fees
N/A
Offer checking account?
Yes
Offer ATM card?
Yes, if have a Chase checking account
Terms apply.
Now, we don't want to knock these savings accounts entirely. There's a reason traditional banks are the most popular with consumers: People prefer face-to-face service. In addition to the in-person one-on-one attention, savers can also count on broad ATM networks for convenience, as well as access to many other types of banking products like auto andpersonal loans, mortgages andcertificates of deposit (CDs).
And if your first bank account ever was with one of these big banks, your loyalty could pay off. Sometimes, a good banking relationship can help you score a better interest rate or lower fees on their other products.
The savings accounts that earn the most money
Now that we've pointed out the savings accounts with the lowest APYs, let's talk about the ones with the highest. Typically, online-only, high-yield savings accounts offer the best returns on your cash. Since they have less overhead costs from not having to operate physical branches, they can pass these savings onto their customers in the form of better interest rates.
High-yield savings accounts are just as accessible as your brick-and-mortar savings accounts and also offer FDIC insurance so your deposits up to $250,000 are safe. Best of all, many high-yield savings accounts stand out for having no hidden fees — think zero monthly maintenance fees, zero excessive transactions fees, zero overdraft fees and zero or low minimum balance requirements.
Some of the top high-yield savings accounts offer APYs above 5% (some even around 6% APY):
UFB Secure Savings
UFB Secure Savings is offered by Axos Bank ® , a Member FDIC.
Annual Percentage Yield (APY)
Up to 5.25%APY on any savings balance; add a UFB Freedom Checking and meet checking account qualifications to get an additional up to0.20%APY on savings
Minimum balance
$0, no minimum deposit or balance needed for savings
Fees
No monthly maintenance or service fees
Overdraft fee
Overdraft fees may be charged, according to the terms; overdraft protection available
ATM access
Free ATM card with unlimited withdrawals
Maximum transactions
6 per month; terms apply
Terms apply.
Read our UFB Secure Savings review.
Western Alliance Bank High-Yield Savings Account
Western Alliance Bank is a Member FDIC.
Annual Percentage Yield (APY)
5.24% APY
Minimum balance
$1 minimum deposit
Monthly fee
None
Maximum transactions
Up to 6 transactions each month
Excessive transactions fee
The bank may charge fees for non-sufficient funds
Overdraft fee
No overdraft fee
Offer checking account?
No
Offer ATM card?
No
Terms apply.
Newtek Bank Personal High Yield Savings
Newtek Bank is a Member FDIC.
Annual Percentage Yield (APY)
5.25% APY
Minimum balance
$0.01 to earn interest
Monthly fee
None
Maximum transactions
Up to 6 free withdrawals or transfers per statement cycle; transaction amount limits apply; withdrawals from your account can only be transferred to the original external funding source
Excessive transactions fee
None
Overdraft fee
None
Offer checking account?
Only a business checking account
Offer ATM card?
Yes, if have a Newtek checking account
Terms apply.
The biggest drawback of traditional and high-yield savings accounts is that the APYcan change at any time since these ratesfluctuatein accordance with changes to the Federal Reserve's benchmark interest rate.
If you'd rather have a fixed rate and don't mind locking up your money into an account for a specified amount of time, consider certificates of deposit (CDs). By guaranteeing a specific APY for a period of time, you may earn a higher return in the long run. Rates may vary based on term lengths and deposit amounts, but there are CDs offering APYs of over 5% from banks like Synchrony Bank and Quontic Bank.
Synchrony Bank CDs
Synchrony Bank is a Member FDIC.
Annual Percentage Yield (APY)
From 0.25% to 5.15% APY
Terms
From 3 months to 60 months
Minimum balance
None
Monthly fee
None
Early withdrawal penalty fee
There may be an early withdrawal penalty if you withdraw funds from the principal prior to the CD maturity date (the last day of the CD term). The penalty is applied to the amount of principal withdrawn (there's no penalty on interest). For the No-Penalty CD, early withdrawals are not permitted within the first 6 days after account funding. Following that, only withdrawal of the entire balance is allowed.
Terms apply.
APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For CD accounts, a penalty may be imposed for early withdrawals. After maturity, if your CD rolls over, you will earn the offered rate of interest for your CD type in effect at that time.
Quontic Bank CDs
Quontic Bank is a Member FDIC.
Annual Percentage Yield (APY)
From 4.30% to 5.30% APY
Terms
From 6 months to 5 years
Minimum balance
$500 minimum deposit
Monthly fee
None
Early withdrawal penalty fee
Withdrawals before the maturity date are subject to penalties. For time deposits up to 12 months, the penalty will be equal to the interest for the full length of the stated term. For time deposits 12 months to under 24 months, the penalty equals one year interest. For time deposits 24 months and over, the penalty equals two years interest. If the accrued interest exceeds the penalty amount, the excess accrued interest over the penalty amount will be paid to you. If the accrued interest is less than the penalty amount, a reduction of the principal balance may result.
Terms apply.
Compare offers to find the best savings account
FAQs
Which type of savings account typically has the lowest interest rate?
The savings account that often has the lowest interest rate is any savings offered by a large, brick-and-mortar bank. Unlike online-only banks, these national banks have physical locations that cost money to run and so the big-name banks aren't able to pass on high savings rates to their customers.
Do savings accounts have low returns?
Some savings accounts have lower returns than others. Your traditional savings account will offer a return closer to the national savings average, while a good high-yield savings account offers an APY with a range from 3% to 6%.
What is a low-risk savings account?
A low-risk savings account is one where your money is safe and secure, which is really any savings account through a bank that is FDIC-insured. FDIC insurance protects and reimburses your deposits up to the legal limit of $250,000 in the event your bank goes under.
What happens if I have zero dollars in my savings account?
If you have zero dollars in your savings account, your bank may start charging a monthly maintenance fee since you're not meeting a minimum balance requirement — or the bank may end up closing the account entirely if it remains unfunded for a certain amount of time.
Bottom line
Traditional savings accounts from large, brick-and-mortar banks usually earn the least money. If making a good return on your cash is important to you, consider an online-only, high-yield savings account or CD instead.
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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
