Citizens Bank's Savings Account Options
Citizens Bank does not currently offer a dedicated high yield savings account. The bank's standard savings products — including their basic savings account and money market account — earn interest rates that are typically lower than what you would find at online banks or credit unions that specialize in high yield savings.
Citizens Bank is a traditional brick-and-mortar bank with physical branches in multiple states. Banks with physical locations often pay lower interest rates on savings because they have higher operating costs than online-only banks. If earning the highest possible interest on your savings is your main goal, you may want to compare Citizens Bank's rates against online alternatives before opening an account.
That said, Citizens Bank savings accounts do come with features that some people value: access to in-person banking, the ability to deposit cash at a branch, and integration with checking accounts at the same bank. The trade-off is typically a lower interest rate.
Key Takeaways
- Citizens Bank offers savings accounts and money market accounts, but neither is marketed as a high yield product.
- Interest rates at Citizens Bank savings accounts are generally lower than rates at online banks or credit unions.
- You can compare Citizens Bank's current savings rates against other banks on the Citizens Bank website or by calling a branch directly.
- If you want both high interest rates and in-person banking, ask Citizens Bank about money market accounts, which sometimes offer slightly higher rates than basic savings accounts.
How Citizens Bank Savings Accounts Work
Citizens Bank's standard savings account is a basic deposit account where you can store money and earn interest. You can open one online or at a branch. The account typically comes with a debit card, online banking access, and the ability to link it to a Citizens Bank checking account for transfers.
Interest is calculated daily and paid monthly. The exact rate depends on your account balance and the current market — Citizens Bank adjusts rates periodically, so the rate you see today may not be the same in three months. You can check the current rate on Citizens Bank's website or by visiting a branch.
Most Citizens Bank savings accounts have no monthly maintenance fee if you maintain a minimum balance, though the minimum varies by account type. Some accounts waive the fee automatically; others require you to set up direct deposit or maintain a linked checking account. Read the account terms before opening to understand what applies to you.
Money Market Accounts as an Alternative
Citizens Bank also offers money market accounts, which are a hybrid between a savings account and a checking account. These accounts sometimes pay slightly higher interest rates than basic savings accounts, though the difference is usually small.
Money market accounts typically come with a debit card and check-writing privileges, but they limit how many withdrawals you can make per month. If you need to access your money frequently, a regular savings account may be more practical. If you want to keep the money relatively untouched and earn a bit more interest, a money market account might be worth comparing.
Like savings accounts, money market account rates vary and are set by Citizens Bank. You can ask a branch representative or check online to see the current rate and any minimum balance requirements.
Comparing Citizens Bank to Online Banks
Online banks — such as Marcus, Ally, or Discover — typically offer savings rates that are two to five times higher than traditional banks like Citizens Bank. This is because online banks have no physical branches and lower operating costs. The trade-off is that you cannot deposit cash in person or speak to someone face-to-face at a branch.
If you have a Citizens Bank checking account and value the convenience of one bank for both checking and savings, staying with Citizens Bank may make sense even if the rate is lower. If you are opening a savings account purely to earn interest and do not need in-person banking, an online bank will likely earn you more money over time.
You can hold accounts at multiple banks at the same time. Some people keep a checking account at Citizens Bank for everyday banking and a high yield savings account at an online bank for long-term savings. This approach gives you both convenience and competitive interest rates.
What to Ask Citizens Bank Before Opening
Before opening a Citizens Bank savings account, contact a branch or check the website to find out the current interest rate, the minimum balance required, and any monthly fees. Interest rates change frequently, so the rate advertised today may be different next month.
Ask whether the account has any restrictions on how often you can withdraw money. Some savings accounts limit withdrawals to a certain number per month, while others do not. If you think you might need to access the money regularly, this matters.
Also ask whether Citizens Bank offers any promotional rates for new accounts. Some banks offer a higher rate for the first few months to attract new customers. If a promotion is available, ask how long it lasts and what the regular rate will be after the promotion ends.
How Interest Rates Work at Banks
Interest is money the bank pays you for letting them use your deposit. The interest rate is expressed as a percentage of your account balance per year. A savings account earning 0.01% interest on $10,000 would earn about $1 per year. A high yield savings account earning 4.5% on the same $10,000 would earn about $450 per year.
Banks set their own rates based on what the Federal Reserve does with its benchmark interest rate. When the Federal Reserve raises rates, banks usually raise savings rates too. When the Federal Reserve lowers rates, banks usually lower savings rates. This means the rate you earn today will not stay the same forever.
Interest compounds, meaning you earn interest on your interest. If you leave the money in the account, the interest gets added to your balance, and next month you earn interest on the larger balance. This is why even small differences in interest rates add up over years.
Frequently Asked Questions
Can I earn high interest at Citizens Bank if I keep a large balance?
No. Citizens Bank sets the same interest rate for all customers in a given account type, regardless of balance size. A larger balance earns more total dollars in interest, but the percentage rate stays the same. If high interest rates are your goal, you need to look at banks that specialize in high yield savings, not at keeping a larger balance at Citizens Bank.
Does Citizens Bank ever offer promotional rates on savings accounts?
Citizens Bank sometimes runs promotions for new savings accounts, but these are not may provide and change over time. Call a branch or check the website to see what is currently available. Promotional rates are usually higher than the regular rate but only last for a set period — often three to six months.
What happens to my interest rate if the Federal Reserve changes rates?
Citizens Bank will adjust your rate, but not necessarily on the same day the Federal Reserve acts. Banks usually change savings rates within a few weeks of a Federal Reserve change. You can check your current rate anytime by logging into online banking or calling a branch.
Can I move money from a Citizens Bank savings account to a checking account without penalty?
Yes. You can transfer money between your own Citizens Bank accounts online, by phone, or at a branch with no penalty. Some savings accounts limit how many transfers you can make per month, so check your account terms. If you exceed the limit, Citizens Bank may charge a fee for extra transfers.
Is my money safe in a Citizens Bank savings account?
Yes. Citizens Bank is a member of the Federal Deposit Insurance Corporation (FDIC), which means deposits up to $250,000 per account type are protected by the federal government. If the bank fails, the FDIC will return your money. This protection applies to savings accounts, checking accounts, and money market accounts separately.