Fifth Third does not offer a dedicated high yield savings account

Fifth Third Bank's standard savings accounts earn interest rates well below what you can find at online banks or credit unions. As of early 2024, their regular savings accounts typically earn between 0.01% and 0.05% annual percentage yield (APY), depending on your account type and balance. That means $10,000 in a Fifth Third savings account earns roughly $1 to $5 per year in interest.

If you bank with Fifth Third for other reasons—checking, loans, or convenience—keeping savings there costs you money compared to accounts that pay 4% to 5% APY at online banks. The gap widens the longer your money sits. On $10,000 over a year, you lose roughly $400 to $500 in interest by staying with Fifth Third's savings product instead of moving to a high yield account elsewhere.

Key Takeaways

  • Fifth Third's savings accounts pay less than 0.1% APY, while high yield accounts at online banks currently pay 4% to 5% APY.
  • Fifth Third offers Money Market accounts as an alternative, but these also pay rates far below what online banks offer for the same product.
  • You do not have to close your Fifth Third checking account to move savings to a higher-paying bank—you can keep both.
  • The real cost of staying with Fifth Third savings is the interest you do not earn, which compounds over months and years.

Fifth Third's Money Market account is also low-paying

Fifth Third does offer a Money Market account, which is sometimes confused with a high yield savings account. Money Market accounts typically come with check-writing privileges and a debit card, but Fifth Third's version still pays minimal interest—usually between 0.01% and 0.10% APY depending on your balance tier.

The structure is similar to their savings accounts: higher balances may earn slightly more, but the rates remain far below what you can earn at online banks. A Money Market account at an online bank might pay 4.5% APY on the same balance that earns 0.05% at Fifth Third.

Why Fifth Third's rates lag behind online banks

Fifth Third is a traditional brick-and-mortar bank with physical branches, staff, and overhead costs. Those expenses get passed along to customers through lower interest rates on deposits. Online banks have no branches, no tellers, and no physical infrastructure, so they can afford to pay depositors more of the interest they earn on loans.

This is not a Fifth Third problem specifically—it is how retail banking works. Every major bank with branches (Chase, Bank of America, Wells Fargo, Citibank) pays similarly low rates. The trade-off is convenience: you can walk into a Fifth Third branch, speak to a person, and deposit cash. Online banks cannot offer that, so they compete on rate instead.

Where to move savings if you want higher rates

Online banks and credit unions currently offer high yield savings accounts paying 4% to 5% APY. These include Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, and many credit unions. You can open an account at any of these without closing your Fifth Third checking account—the two can coexist.

The process is straightforward: open the account online, link it to your Fifth Third checking account, and transfer money electronically. Transfers between banks typically clear within one to three business days. You keep your Fifth Third account for checking, bill pay, and branch access, and use the online account purely for savings.

If you belong to a credit union, check their rates first. Some credit unions offer high yield savings accounts that rival or beat online banks, and you may already have access through your employer or membership group.

What to consider before moving your savings

The main reason to keep savings at Fifth Third is if you need frequent access to a physical branch—for example, if you deposit cash regularly and do not want to use ATMs. Fifth Third has thousands of branches across the Midwest and South, which can be valuable if you travel or move frequently within their footprint.

Another reason is simplicity: if you prefer to keep all your money in one place and do not mind the cost, consolidation has value. But that value is real money out of your pocket. A $25,000 savings balance earning 0.05% at Fifth Third versus 4.5% at an online bank costs you roughly $1,100 per year.

FDIC insurance covers deposits up to $250,000 at both Fifth Third and online banks, so safety is not a factor in the decision. The only meaningful trade-off is branch access versus interest rate.

How to set up transfers between Fifth Third and an online bank

Once you open a high yield savings account elsewhere, linking it to Fifth Third takes minutes. Log into your Fifth Third online banking, find the "Transfer" or "Link Account" section, and enter the routing number and account number of your new savings account. Fifth Third will send two small test deposits (usually under $1 each) to verify the account is yours, which you confirm by logging into the online bank and reporting the amounts back.

After verification, you can transfer money between the accounts whenever you want. Most transfers clear within one business day. Some people set up automatic transfers—for example, moving $500 from Fifth Third checking to their online savings account every payday—to build savings without thinking about it.

Frequently Asked Questions

Can I keep my Fifth Third checking account and move only savings to another bank?

Yes. You can keep your Fifth Third checking account for bill pay, direct deposit, and branch access while moving savings to a higher-paying bank. The two accounts do not depend on each other, and you can link them for transfers.

Will moving my savings hurt my credit score?

No. Opening a savings account at another bank does not trigger a hard credit inquiry and does not affect your credit score. Transfers between your own accounts also have no impact on credit.

What if I need to withdraw money quickly from an online bank?

Online banks process withdrawals the same way as Fifth Third—usually within one to three business days. If you need cash when ready, you can transfer to your Fifth Third checking account first, then withdraw from a branch or ATM.

Are online banks safe if they have no branches?

Online banks are insured by the FDIC up to $250,000 per account, the same as Fifth Third. The FDIC insurance is what protects your money, not the physical building. As long as the bank is FDIC-insured, your deposits are equally safe.

What if Fifth Third raises its savings rates in the future?

Fifth Third could raise rates, but historically they lag behind online banks even when rates rise across the industry. If rates do improve significantly, you can always move money back. For now, the gap is large enough that the interest you earn elsewhere will likely outpace any future Fifth Third increase.