Things may be picking up for savers, with the newly launched Popular Direct offering a savings account paying 1.26% APY — landing it in second place on our Savings Account Leaderboard.
It takes a minimum deposit of $5,000 to open a savings account with Popular Direct, but you don’t have to a keep a certain amount in your account to earn interest. However, if you don’t keep at least $500 in your account, you’ll pay a $4 monthly service fee.
Popular Direct is the new online division of Banco Popular North America, based in New York. It is a subsidiary of Popular Inc., a financial services firm serving the United States, Puerto Rico and the Caribbean.
Popular Direct’s rate is just below the 1.30% APY you can earn with The Palladian PrivateBank, which is paying 1.30% APY for the first six months after you open your account. After the promotional period ends, the rate returns to the regular rate, which currently is 0.90% APY. That gives you a combined annual return of 1.10%.
You need to deposit at least $1,000 to open an account with The Palladian PrivateBank, but you don’t need to keep a certain amount in your account to earn interest.
The Chicago-based bank is a division of PrivateBank and Trust Co., which has 34 offices, primarily in the Midwest.
Six other banks pay at least 1.05% APY on savings accounts:
Incredible Bank, which places third in our rankings by paying 1.17% APY on balances to $249,999.
You need to deposit at least $2,500 to open an account. While you don’t need to keep that much in your account to earn interest, you’ll pay a $15 monthly service fee if your balance drops below $2,500. Balances of $250,000 or more earn just 0.05% APY.
Incredible Bank is the online division of River Valley Bank, which has 16 branches in Wisconsin and Michigan.
Salem Five Direct, which is paying 1.10% APY, and the rate is guaranteed through Jan. 1. You earn 1.10% APY on your entire balance.
You only need to deposit $100 to open an eOneSavings account. There are no monthly fees. You’re eligible to open an account if you don’t already have a savings account with Salem Five Direct or a checking or savings account with its parent, Salem Five Cent Saving Bank in Salem, Massachusetts. The brick-and-mortar bank has about 30 locations around Boston.
SFGI Direct, which is paying 1.06% APY on your entire balance. You need to deposit at least $500 to open an account, but you don’t need to maintain a minimum balance in your account to earn interest.
There are no monthly service fees. SFGI Direct is the online division of Summit Community Bank in Moorefield, West Virginia.
Synchrony Bank, which is paying 1.05% APY on your entire balance. You don’t need to deposit a certain amount to open an account, and there’s no minimum balance required to earn interest. And you don’t pay any monthly service fees. The predominantly online bank has a single branch in Bridgewater, New Jersey.
GS Bank, which is also paying 1.05% APY. This is the former GE Capital Bank, which was purchased by Goldman Sachs. You don’t need to deposit a certain amount to open an account, and you earn interest on your entire balance. There are no monthly fees. The bank is based in New York.
AloStar Bank of Commerce is the third bank paying 1.05% APY. AloStar is an online bank based in Birmingham, Alabama. It takes just $50 to open an account with AloStar. There is no minimum balance required to earn interest, and you pay no monthly fees.
Finding the best savings account deals
These are all nationally available deals, open to all savers regardless of where they live.
But you must remember that, unless your rate is guaranteed for a certain period of time, banks can raise or lower savings account rates anytime they wish.
Can you find a higher return only available in your area? Search Bankrate’s database of the best money market and savings account rates offered by dozens of banks and thrifts near you.
Savings Account Leaders
|Bank||APY||Min Deposit||Min Balance|
|Palladian Private Bank||1.30%*||$1,000||None|
|Salem Five Direct||1.10%||$100||None|
|Alostar Bank of Commerce||1.05%||None||None|