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'll find at online banks or credit unions. As of now, Citizens Bank does not market a separate high yield savings product. If you bank with Citizens and want higher returns on savings, you'll need to look elsewhere or compare what Citizens offers against other institutions.

Citizens Bank does offer money market accounts, which sometimes carry slightly higher rates than basic savings accounts, but these are not the same as high yield savings accounts. The difference matters: a high yield savings account at an online bank might pay 4% to 5% annually, while Citizens Bank's money market account typically pays less than 1%.

Key Takeaways

  • Citizens Bank's standard savings account pays a low interest rate and is not marketed as a high yield product.
  • Money market accounts at Citizens Bank may pay slightly more than savings, but still fall well below rates offered by online banks.
  • If earning interest on savings is a priority, comparing Citizens Bank against online banks like Ally, Marcus, or Discover will show you the rate difference.
  • Citizens Bank customers who want high yield savings can open an account elsewhere while keeping their checking account at Citizens.

How Citizens Bank's savings products compare to high yield options

Citizens Bank operates as a traditional brick-and-mortar bank with physical branches. This business model—maintaining branch networks, employing tellers, and running physical locations—costs more than online-only banks. Those costs are reflected in lower interest rates on savings products. Online banks have no branches and lower overhead, so they can pass higher rates to depositors.

Citizens Bank's money market account is the closest product to a high yield savings account in their lineup. Money market accounts typically require a higher opening deposit than savings accounts and may limit the number of withdrawals per month. Even so, the interest rate remains modest compared to dedicated high yield savings accounts elsewhere.

What Citizens Bank savings accounts actually earn

Citizens Bank's savings account rates vary slightly by state and change over time, but they typically remain below 0.5% annual percentage yield (APY). This means on a $10,000 balance, you'd earn roughly $50 per year or less. The exact rate depends on your state and the current rate environment, so you should check Citizens Bank's website or visit a branch for the current figure.

Money market accounts at Citizens Bank may offer a marginally higher rate—sometimes 0.1% to 0.3% more—but still fall far short of high yield savings rates. The trade-off is that money market accounts often require a larger minimum balance to open and may charge fees if you fall below that minimum.

Where to find high yield savings if you want to leave Citizens Bank

Online banks consistently offer the highest savings rates because they operate without physical branches. Banks like Ally, Marcus by Goldman Sachs, Discover Bank, and American Express Personal Savings typically offer rates between 4% and 5% APY, though rates change as the Federal Reserve adjusts its benchmark rate. You can open a high yield savings account at any of these institutions in minutes, online, without visiting a branch.

Credit unions sometimes offer competitive rates on savings accounts as well, especially if you're a member. Some credit unions pay 3% to 4% on savings, though rates and terms vary widely by institution. If you belong to a credit union, it's worth checking what they offer before opening an account at an online bank.

Should you keep your Citizens Bank account and open a high yield savings elsewhere?

Many people maintain checking accounts at traditional banks like Citizens for convenience—to deposit cash, use ATMs, or visit a branch—while keeping savings at an online bank that pays higher interest. This strategy works well if you don't need to move money between accounts frequently. Transfers between banks typically take one to three business days, so it's not ideal if you need instant access to your savings.

If you prefer to keep all your accounts in one place, you'll need to decide whether Citizens Bank's convenience is worth the cost of earning almost no interest on your savings. For most people, the difference adds up: earning 4.5% instead of 0.4% on $25,000 means roughly $1,000 more per year in interest.

Federal deposit insurance and safety at Citizens Bank

Citizens Bank is a member of the Federal Deposit Insurance Corporation (FDIC), which means deposits up to $250,000 per account type are protected if the bank fails. This protection applies to savings accounts, checking accounts, and money market accounts. Online banks offering high yield savings are also FDIC-insured, so moving your money to earn higher interest doesn't sacrifice safety.

The FDIC insurance limit is per depositor, per bank, per account type. If you have a savings account and a money market account at Citizens Bank, each is insured separately up to $250,000. This matters if you're moving large balances around.

Frequently Asked Questions

Can I earn more interest by opening a Citizens Bank money market account instead of savings?

A money market account at Citizens Bank may pay slightly more than a savings account, but the difference is usually small—often less than 0.2% more per year. You'll still earn far less than a high yield savings account at an online bank. Money market accounts also typically require a higher minimum balance and may limit withdrawals.

If I open a high yield savings account elsewhere, will I lose my Citizens Bank checking account benefits?

No. You can keep your Citizens Bank checking account and open a savings account at another bank. Many people do this to earn higher interest on savings while keeping checking at a bank with branches and ATMs they use regularly. Transfers between banks take one to three business days.

What happens to my interest rate if the Federal Reserve changes rates?

Interest rates on savings accounts move with the Federal Reserve's benchmark rate. When the Fed raises rates, banks typically raise savings rates too—though online banks usually move faster than traditional banks. When the Fed cuts rates, savings rates fall across the industry. Citizens Bank rates will adjust, but they'll likely remain lower than online competitors.

Is Citizens Bank FDIC insured?

Yes. Citizens Bank is FDIC-insured, so deposits up to $250,000 per account type are protected. Online banks offering high yield savings are also FDIC-insured, so you don't sacrifice safety by moving your savings to earn higher interest.

How long does it take to transfer money from Citizens Bank to a high yield savings account?

Bank-to-bank transfers typically take one to three business days. Some online banks offer faster transfers if you link your Citizens Bank account and initiate the transfer from the online bank's side. You can also withdraw cash from Citizens and deposit it at another bank, though this is slower and less convenient.