Citizens Bank does not offer a dedicated high yield savings account
Citizens Bank's standard savings account earns interest, but the rate is not competitive with what you will find at online banks or credit unions. As of now, Citizens Bank does not market a separate high yield product. Their regular savings account rate varies by branch location and account type, and you should check with your local branch or their website for the current rate in your area.
If you are looking for a savings account that compounds interest faster, you have two paths: open a high yield account elsewhere while keeping your checking at Citizens, or explore what Citizens Bank's money market account offers. A money market account sometimes pays more than a basic savings account, though it usually requires a higher minimum balance and limits your monthly withdrawals.
Key Takeaways
- Citizens Bank's standard savings account does not compete with online banks on interest rates, which currently range much higher at dedicated high yield providers.
- Citizens Bank offers a money market account that may pay more than savings, but requires a higher opening balance and limits withdrawals to six per month.
- You can keep your Citizens Bank checking account and open a high yield savings account at another bank to earn more on deposits without switching entirely.
- Interest rates at Citizens Bank vary by location and change over time, so call your branch or log into online banking to see your current rate.
How Citizens Bank's savings account works
Citizens Bank's savings account is a basic deposit product. You deposit money, the bank holds it, and you earn interest on the balance. The rate is set by Citizens Bank and changes at their discretion—usually when the Federal Reserve adjusts its benchmark rate, though banks do not always pass the full change to customers.
The account typically has no monthly fee if you maintain a minimum balance, though that minimum varies. You can withdraw money at any time, and Citizens Bank does not restrict the number of withdrawals per month the way some accounts do. You access your money through their branches, ATMs, or online banking.
Interest compounds daily and posts to your account monthly. That means each day's interest earns interest the next day, which adds up over time—but only if the rate is high enough to matter. At Citizens Bank's current rates, the difference between a $10,000 balance and a $10,000 balance at a high yield online bank can be $50 to $150 per year, depending on the specific rates.
Citizens Bank money market account as an alternative
Citizens Bank does offer a money market account, which is a hybrid between a savings account and a checking account. It typically pays more interest than their savings account, but requires a higher opening deposit—often $2,500 or more—and limits you to six withdrawals per month under federal rules.
The money market account comes with a debit card and check-writing privileges, so you can access your money more flexibly than a savings account. However, if you exceed the six-withdrawal limit, the bank may charge a fee or convert the account to a regular savings account. This makes it better for money you want to earn interest on but do not plan to touch often.
Like the savings account, the money market rate varies by location and changes over time. You should contact Citizens Bank directly to compare the current money market rate against their savings rate and against what online banks are offering.
Why online banks and credit unions pay more
Online banks and credit unions typically offer higher interest rates than Citizens Bank because they have lower overhead costs. They do not maintain physical branches, so they spend less on rent, staff, and operations. They pass some of that savings to customers through higher rates on savings products.
A high yield savings account at an online bank might currently pay 4% to 5% annual interest, while Citizens Bank's savings account may pay less than 1%. Over a year, that difference compounds significantly. A $10,000 deposit earning 0.5% at Citizens Bank grows to $10,050. The same $10,000 at 4.5% grows to $10,450—a difference of $400 in one year.
Credit unions sometimes offer competitive rates too, especially if you are a member. Credit unions are member-owned cooperatives, so they return profits to members rather than shareholders. If you have access to a credit union through your employer or community, it is worth checking their rates.
How to compare Citizens Bank against other options
Start by finding Citizens Bank's current rate. Log into your online account, call your local branch, or visit their website. Write down the rate and the minimum balance required. Then check the current rates at three to five online banks—Ally, Marcus, Discover, and American Express are common starting points. Look at the rate, the minimum to open, and any fees.
Do not assume the highest rate is the best choice. Some banks offer a promotional rate for the first few months, then drop it. Read the fine print to see whether the rate is permanent or temporary. Also check whether the bank is FDIC insured (for banks) or NCUA insured (for credit unions). This insurance protects your deposit up to $250,000 if the institution fails.
If you want to stay with Citizens Bank for convenience—because you use their branches or ATMs regularly—you can open a high yield savings account at another bank and transfer money between them. Most online banks allow transfers from external accounts, and the money usually arrives within one to three business days. This way you keep your Citizens checking account and earn more on savings elsewhere.
What happens if Citizens Bank adds a high yield product
Citizens Bank has not announced plans to launch a high yield savings account, but the banking landscape changes. If they do introduce one in the future, it would likely be available online and through their app, not just at branches. You would see it listed on their website under savings products.
If you are waiting to see whether Citizens Bank launches a competitive product, remember that rates change constantly. An account that pays well today may not pay well in six months. The safest approach is to open a high yield account now at a bank offering a strong rate, then move your money if Citizens Bank introduces something better later. Switching between banks is free and takes a few days.
Frequently Asked Questions
Can I keep my Citizens Bank checking and open a high yield savings elsewhere?
Yes. You can maintain your Citizens Bank checking account and open a savings account at any other bank. Most online banks allow you to link your Citizens checking account and transfer money between them. Transfers usually take one to three business days and cost nothing.
Does Citizens Bank charge fees on savings accounts?
Citizens Bank's savings account typically has no monthly maintenance fee if you meet the minimum balance requirement. However, fees vary by account type and location, so confirm with your branch. Overdraft fees, ATM fees outside their network, and other charges may apply depending on your account.
What is the current interest rate at Citizens Bank?
Citizens Bank's savings rate changes over time and varies by location. You can find the current rate by logging into online banking, calling your branch, or visiting their website. Rates are usually posted under their savings account product page.
Is my money safe in a Citizens Bank savings account?
Yes. Citizens Bank is FDIC insured, which means deposits up to $250,000 are protected if the bank fails. This protection applies to savings accounts, checking accounts, and money market accounts held in your name.
How often does Citizens Bank change its savings rate?
Citizens Bank can change rates at any time, though they typically adjust when the Federal Reserve changes its benchmark rate. You will not receive advance notice of a rate cut, but the bank should notify you of changes to your account terms. Check your statements or online account regularly to see if your rate has changed.