Citizens Bank does not 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 products. As of now, Citizens Bank does not market or maintain a separate high yield savings product line. If you hold a savings account with Citizens, the rate you earn depends on your account type and balance tier, but it typically falls in the range of 0.01% to 0.05% annual percentage yield (APY)—well below the 4% to 5% APY that online banks currently offer on high yield savings accounts.

Citizens Bank is a traditional brick-and-mortar bank with physical branches across the Northeast and Mid-Atlantic regions. Their business model prioritizes checking and lending products over savings rates. If you are looking for the highest possible return on money you are setting aside, Citizens Bank's savings options will not be competitive.

Key Takeaways

  • Citizens Bank savings accounts earn between 0.01% and 0.05% APY, which is substantially lower than high yield savings accounts offered by online banks.
  • Citizens Bank does not offer a separate high yield savings product; their standard savings account is their primary savings vehicle.
  • If you want to earn significantly more interest on savings while keeping your money accessible, you would need to open an account at a different institution.
  • Citizens Bank's strength is in branch access and checking accounts, not in savings rates, so the choice depends on whether convenience or yield matters more to you.

Why Citizens Bank's savings rates lag behind competitors

Online banks and some credit unions can offer much higher yields because they have lower overhead costs. They do not maintain physical branch networks, do not employ as many staff, and do not spend on in-person customer service. Those savings get passed to depositors as higher interest rates. Citizens Bank, by contrast, operates hundreds of branches and invests heavily in physical infrastructure and staffing. That cost structure means they cannot compete on rate alone.

Citizens Bank makes money primarily through lending—mortgages, auto loans, credit cards, and business loans. Savings accounts are a way to gather deposits to fund those loans, not a profit center in themselves. They price their savings products to attract enough deposits to meet lending demand, not to offer the best rates in the market.

What Citizens Bank savings accounts actually offer

Citizens Bank offers a basic savings account with no monthly maintenance fee if you maintain a minimum balance (typically $100 to $500, depending on your state and account type). You can withdraw money without penalty, and the account is FDIC insured up to $250,000. The account comes with online and mobile banking, and you can manage it through Citizens Bank's app or website.

If you already have a checking account with Citizens Bank, opening a savings account is straightforward—you can do it online or at a branch. The convenience of having both accounts at the same institution may appeal to you if you value simplicity and one-stop banking. However, that convenience comes at the cost of earning almost nothing on your savings.

When Citizens Bank savings might still make sense

If you keep a small emergency fund or short-term savings goal at Citizens Bank purely for convenience—to move money between checking and savings quickly, or because you use Citizens Bank's branch network regularly—the low rate may not be a dealbreaker. The difference between 0.02% and 4.5% APY on $1,000 is roughly $44 per year, which is meaningful but not transformative if your savings balance is small.

Citizens Bank also offers money market accounts, which sometimes carry slightly higher rates than savings accounts, though still well below high yield alternatives. If you are considering keeping money at Citizens Bank, ask about their current money market rate and compare it to what online banks are offering before you decide.

Better alternatives if you want high yield savings

Online banks like Marcus, Ally, American Express Personal Savings, and Discover Bank currently offer APY rates between 4% and 5.35% on savings accounts with no minimum balance requirement and no monthly fees. Credit unions, particularly those that participate in shared branching networks, sometimes offer competitive rates and may give you access to physical locations even if your local credit union is small. You can search for credit unions in your area through the CO-OP Network or Alliant Credit Union's shared branching locator.

If you want to keep a checking account at Citizens Bank for convenience but earn real interest on savings, you can open a high yield savings account elsewhere and transfer money between the two institutions. Most online banks process transfers within one to three business days, so the friction is minimal. This approach lets you use Citizens Bank for everyday banking while your savings work harder at a different institution.

How to compare savings rates across banks

When you are shopping for a savings account, look at the APY, not just the interest rate. APY accounts for compounding and gives you the true annual return. Check whether the rate is promotional (temporary) or standard (permanent). Many online banks offer high introductory rates that drop after a few months, so read the fine print.

Also verify that the bank is FDIC insured (or NCUA insured if it is a credit union). All the banks mentioned here carry that protection, which means your deposits up to $250,000 are may provide even if the institution fails. Once you have narrowed your choices to banks with solid insurance and competitive rates, open the account that fits your banking habits—whether that is pure online, a hybrid with branch access, or a credit union.

Frequently Asked Questions

Can I move money from Citizens Bank savings to a high yield account at another bank?

Yes. You can transfer money from Citizens Bank to another bank using an external transfer (also called an ACH transfer). Most transfers take one to three business days. You will need the receiving bank's routing number and your account number there. Citizens Bank's app and website both allow you to initiate outgoing transfers.

Does Citizens Bank offer any savings product with a competitive rate?

Citizens Bank's money market accounts sometimes offer slightly higher rates than their standard savings accounts, but rates remain well below high yield alternatives. Contact Citizens Bank directly or check their website for current money market APY. Even their best savings products will not match what online banks are offering.

What if I want to keep all my accounts at one bank?

If convenience and simplicity matter more to you than maximizing interest, keeping savings at Citizens Bank is a valid choice. You trade yield for the ease of managing everything in one place. Just be aware that you are giving up significant interest income—roughly $40 to $50 per year on every $1,000 saved.

Is Citizens Bank FDIC insured?

Yes. All Citizens Bank deposit accounts, including savings accounts, are FDIC insured up to $250,000 per account holder per institution. This protection applies regardless of the interest rate the account earns. Your money is safe at Citizens Bank; the question is whether the rate is worth staying there.

Can I open a high yield savings account online without visiting a branch?

Yes. Most online banks that offer high yield savings allow you to open an account entirely online using your computer or phone. You will need a valid ID and a Social Security number. The process typically takes 10 to 15 minutes, and the account is usually ready to use within one business day.