Which bank has best savings account?
As of January 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts. Eligibility for these credit unions is limited according to geographic location and other narrow criteria.
| Bank | Interest Rate of Savings Bank Account |
|---|---|
| State Bank of India | 2.70% - 3.00% |
| Union Bank of India | 2.75% - 3.55% |
| HDFC Bank | 3.00% - 3.50% |
| ICICI Bank | 3.00% |
| Provider | Account name | Interest rate (AER) |
|---|---|---|
| United Trust Bank Sponsored | UTB 6 Month Bond * | 4.91% |
| This listing is sponsored by United Trust Bank | ||
| Investec | 1 Year Fixed Rate Saver | 5.15% |
| Allica Bank Ltd | 12 Month Fixed-Term Personal Savings Account (Issue 55) | 5.15% |
As of January 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts. Eligibility for these credit unions is limited according to geographic location and other narrow criteria.
- Milli Savings Account: 5.50% APY.
- UFB Secure Savings: Up to 5.25% APY.
- Bread Savings High-Yield Savings Account: 5.15% APY.
- Bask Interest Savings Account: 5.10% APY.
- BMO Alto Online Savings Account: 5.10% APY.
| Bank | Forbes Advisor Rating | Products |
|---|---|---|
| Chase Bank | 5.0 | Checking, Savings, CDs |
| Bank of America | 4.2 | Checking, Savings, CDs |
| Wells Fargo Bank | 4.0 | Savings, checking, money market accounts, CDs |
| Citi® | 4.0 | Checking, savings, CDs |
- Discovery Bank. Get up to 9.5% monthly interest when you deposit a large sum into a fixed-deposit savings account at Discovery Bank. ...
- Capitec Bank. ...
- FNB. ...
- Investec Private Bank. ...
- Nedbank.
You can use a savings account to build an emergency fund, save for large purchases, or set aside money for future needs. They're not good for regular transactions, however, as many are limited to six withdrawals per month, though you can withdraw as much as you'd like with each withdrawal.
At least 20% of your income should go towards savings. Meanwhile, another 50% (maximum) should go toward necessities, while 30% goes toward discretionary items. This is called the 50/30/20 rule of thumb, and it provides a quick and easy way for you to budget your money.
Traditional savings account: Best if you want to bank in person. High-yield savings account: Best if you want to bank digitally. Money market account: Best if you want a debit card or paper checks tied to your savings. CD: Best if you're comfortable not touching your money for a long time.
Where can I get 5% interest on my savings account?
| Account | Forbes Advisor Rating | Annual Percentage Yield |
|---|---|---|
| Milli Savings Account | 4.6 | 5.50% |
| M1 High-Yield Savings Account | 4.3 | Up to 5.00% |
| Bask Interest Savings Account | 4.2 | 5.10% |
| UFB Secure Savings | 4.1 | Up to 5.25% |
There's nothing wrong with keeping $10,000 in a savings account. But it might not earn you the highest yields. CDs and brokerage accounts could be better homes for your cash in some situations.
- Savings Accounts.
- High-Yield Savings Accounts.
- Certificates of Deposit (CDs)
- Money Market Funds.
- Money Market Deposit Accounts.
- Treasury Bills and Notes.
- Bonds.
While reaching the $100,000 mark is an admirable achievement, it shouldn't be seen as an end game. Even a six-figure bank account likely won't go far enough in retirement, which could last as long as 30 years.
Over a few weeks in the spring of 2023, multiple high-profile regional banks suddenly collapsed: Silicon Valley Bank (SVB), Signature Bank, and First Republic Bank. These banks weren't limited to one geographic area, and there wasn't one single reason behind their failures.
Following one of the most successful years in United's long history, United Bank has been named the Most Trustworthy Bank in America by Newsweek for 2023.
The FDIC insures nearly all banks up to $250,000 per depositor, per bank. Your savings could be at risk if your account is compromised, though federal law does offer you some protection. Amassing a lot of money in your account can also be risky, especially if you're trying to save for long-term goals.
- Stocks.
- Real Estate.
- Private Credit.
- Junk Bonds.
- Index Funds.
- Buying a Business.
- High-End Art or Other Collectables.
At a 4.25% annual interest rate, your $100,000 deposit would earn a total of $4,250 in interest over the course of a year if interest compounds annually. Annual total: $104,250.
| Banks | Interest rate for General Citizens Tenure (7 days to 10 years) | Interest rate for Senior Citizens Tenure (7 days to 10 years) |
|---|---|---|
| HDFC | 3.00% – 7.00% | 3.50% – 7.75% |
| Post Office | 6.90% – 7.50% | 6.90% – 7.50% |
| Axis Bank | 3.00% – 7.00% | 3.50% – 7.75% |
| ICICI Bank | 3.00% – 6.90% | 3.50% – 7.50% |
Can I lose money in a high-yield savings account?
Your money is invested, so the balance can go up and down with regular market activity. High-yield savings accounts, on the other hand, are not tied to the stock market. As such, the risk of losing money is extremely low. Even if your financial institution fails, FDIC insurance can cover a large portion of your losses.
Simply put, no, opening a savings account does not impact your credit score because you're not borrowing money. Financial institutions don't generally run any type of credit report nor do they report your history to a credit agency.
If your current savings account isn't offering competitive rates, opening a second account at a different bank or credit union could be a smart option. Multiple accounts can offer you additional FDIC coverage, and help you achieve specific savings goals.
Having $20,000 in a savings account is a good starting point if you want to create a sizable emergency fund.
The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals. Let's take a closer look at each category.
