Citizens Bank does not currently offer a dedicated high yield savings account
Citizens Bank's standard savings account earns interest, but the rate is significantly lower than what you would find at online banks or credit unions that specialize in high yield savings. As of now, Citizens Bank does not market a separate high yield product — their savings accounts fall into the conventional category, with rates that typically range from near zero to a fraction of a percent depending on your balance and account type.
If you are looking for a high yield savings account, you will need to look elsewhere. Online banks like Marcus, Ally, and American Express Personal Savings, or credit unions in your area, often offer rates that are several times higher than what Citizens Bank provides. The difference matters: on a $10,000 balance, a 0.01% rate at a traditional bank earns $1 per year, while a 4% rate at a high yield account earns $400 per year.
Key Takeaways
- Citizens Bank's savings accounts earn minimal interest and are not positioned as high yield products.
- Online banks and credit unions typically offer rates three to five times higher than Citizens Bank's standard savings rates.
- If you already bank with Citizens Bank, you may keep a small emergency fund there for convenience while holding larger savings elsewhere for better returns.
- High yield savings accounts are most useful if you have money you need to keep liquid and accessible but do not plan to spend soon.
What Citizens Bank's savings accounts actually offer
Citizens Bank offers a basic savings account that requires a minimum opening deposit (typically $100) and charges a monthly maintenance fee if your balance falls below a certain threshold, usually $300 to $500 depending on the account type. The interest rate is set by Citizens Bank and changes at their discretion — it is not competitive with the market.
Citizens Bank also offers money market accounts, which sometimes carry slightly higher rates than savings accounts but come with restrictions on the number of withdrawals you can make per month. These accounts are still not considered high yield by industry standards and do not compete with dedicated high yield products offered by online institutions.
Where to find high yield savings accounts if you want better rates
Online banks consistently offer the highest rates because they have lower overhead costs than brick-and-mortar banks. These institutions do not maintain physical branches, so they pass the savings to customers through higher interest rates. You can open an account with most online banks entirely through their website or mobile app, and transfers between your Citizens Bank account and a high yield account at another bank typically take one to three business days.
Credit unions in your area may also offer competitive rates on savings accounts, especially if you meet membership requirements. Credit unions are member-owned, not shareholder-owned, so they often prioritize member returns over profit margins. You can search for credit unions near you through the CO-OP Network or Alliant Credit Union's branch locator.
Why the rate difference matters for your money
The gap between Citizens Bank's rates and high yield rates has widened significantly in recent years. When the Federal Reserve raises interest rates, online banks tend to pass those increases to customers quickly, while traditional banks like Citizens Bank move more slowly. This means your money grows faster at a high yield account, especially if you plan to keep the balance untouched for months or years.
For money you need to access quickly — an emergency fund, a down payment you are saving for, or a buffer for unexpected expenses — a high yield savings account makes sense because the money stays liquid (you can withdraw it anytime) while earning meaningful interest. A traditional savings account at Citizens Bank does not offer this advantage.
How to move money between Citizens Bank and a high yield account
If you decide to open a high yield account elsewhere, you do not have to close your Citizens Bank account. Many people keep a small amount at their primary bank for convenience and move larger balances to high yield accounts for better returns. To transfer money between banks, you can use ACH (Automated Clearing House) transfers, which are free and typically take one to three business days.
Most online banks allow you to link your Citizens Bank account and initiate transfers directly from their website or app. You will need your Citizens Bank account number and routing number, which you can find on the bottom left of any check or by logging into your Citizens Bank online banking portal. Some online banks also allow you to deposit checks by taking a photo with your phone, which can be faster than mailing a check.
What to consider before switching or splitting your savings
If you have a Citizens Bank checking account and use their mobile app or ATM network regularly, keeping a small savings account there for convenience makes sense — you avoid transfer delays when you need cash quickly. However, money you do not plan to touch for several months should go into a high yield account where it earns more.
Before opening a high yield account, check whether the bank is FDIC-insured (most online banks are). FDIC insurance protects your deposits up to $250,000 per account type per bank, so your money is safe even if the bank fails. Also read the fine print about minimum balances, monthly fees, and withdrawal limits — some high yield accounts charge fees if your balance drops below a certain amount, though many online banks have eliminated these fees.
Frequently Asked Questions
Can I keep my Citizens Bank checking account and open a high yield savings account somewhere else?
Yes. You can have accounts at multiple banks. Many people keep a checking account at a traditional bank for bill pay and everyday spending, then maintain a high yield savings account at an online bank for money they want to grow. Transfers between the two accounts take one to three business days and are free.
Will moving money to another bank affect my credit score?
No. Opening a savings account or moving money between banks does not affect your credit score. Credit scores are based on borrowing and repayment history, not on where you keep your savings. Transfers between your own accounts at different banks are not reported to credit bureaus.
What happens if the online bank that holds my high yield savings fails?
Your deposits are protected up to $250,000 per account type by FDIC insurance, which covers most online banks. If the bank fails, the FDIC will transfer your money to another insured bank or send you a check. Check the bank's website to confirm FDIC coverage before you open an account.
How often do high yield savings rates change?
Rates can change at any time and vary by bank. Most online banks adjust rates when the Federal Reserve changes its benchmark rate, but some move faster than others. You can check current rates on comparison websites, though rates listed there may not reflect the most recent changes — call or check the bank's website directly for the current rate.
Is there a penalty for withdrawing money from a high yield savings account?
Most high yield savings accounts have no withdrawal penalties. However, some accounts limit the number of withdrawals you can make per month (often six) before charging a fee. Read the account terms before opening to understand any restrictions on how often you can access your money.