PNC does not offer a dedicated high yield savings account

PNC Bank's standard savings accounts earn interest rates well below what you would find at online banks or credit unions focused on savings rates. As of early 2024, PNC's 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 PNC savings account would earn roughly $1 to $5 per year.

If you want a savings account that actually pays meaningful interest, you would need to look outside PNC. Online banks like Marcus, Ally, and American Express Personal Savings currently offer rates between 4% and 5% APY on savings accounts with no minimum balance requirements. The difference matters: that same $10,000 would earn $400 to $500 per year at those rates instead of a few dollars at PNC.

Key Takeaways

  • PNC's savings accounts pay less than 0.1% APY, making them unsuitable if earning interest is your goal.
  • Online banks and some credit unions offer savings rates 50 to 100 times higher than PNC's standard accounts.
  • PNC does offer money market accounts, which pay slightly more than savings accounts but still lag far behind online options.
  • If you need PNC checking for daily banking, you can keep savings elsewhere and transfer money between institutions when needed.

PNC's money market accounts pay more, but still lag

PNC offers money market accounts as an alternative to savings accounts. These accounts typically pay a higher rate than regular savings, but the difference is small. PNC money market rates vary by balance tier, and higher balances earn more, but even the top tier usually stays below 0.5% APY.

Money market accounts also come with check-writing privileges and a debit card, which regular savings accounts do not have. However, you are limited to six withdrawals per month before PNC charges a fee. If you need frequent access to your money, this restriction matters. For someone who wants to save and rarely touch the account, the slightly higher rate might be worth the trade-off, but you would still earn far less than an online savings account.

Why PNC's rates are so low

PNC is a traditional brick-and-mortar bank with physical branches in 19 states. It has overhead costs that online banks do not: building leases, teller salaries, security, and branch maintenance. Those costs mean PNC cannot afford to pay competitive rates on deposits. Instead, PNC makes money by charging fees for services and lending out customer deposits at higher rates.

Online banks have almost no physical infrastructure, so they can pass savings on to customers through higher deposit rates. They make their money differently—often through partnerships, advertising, or by being owned by larger financial institutions that cross-sell other products. The business model difference explains why PNC will never match online savings rates.

How to use PNC for checking while saving elsewhere

Many people keep a PNC checking account for convenience—direct deposit, bill pay, ATM access—while maintaining savings at a different institution. This is a practical approach if you value PNC's branch network or already have payroll set up there.

You can transfer money between PNC and an online bank in one to two business days using an external transfer. Most online banks let you link your PNC checking account and move money back and forth without fees. Some people keep a small emergency fund at PNC for quick access and move larger amounts to a high-rate savings account elsewhere. The process is straightforward and costs nothing.

PNC's CD rates are also below market

If you have money you do not need for a set period, PNC offers certificates of deposit (CDs) with terms ranging from three months to five years. However, PNC's CD rates are similarly uncompetitive. A one-year CD at PNC might pay 0.5% to 1% APY, while online banks offer rates between 4% and 5% for the same term.

The penalty for early withdrawal at PNC also varies by term—shorter CDs have smaller penalties, but longer terms can cost you months of interest if you need the money before maturity. Before locking money into a PNC CD, compare rates at online banks and credit unions. The difference over a year or five years can be hundreds of dollars.

When PNC's savings products might make sense

PNC's low-rate accounts are rarely the best choice for saving, but they do serve a purpose for some customers. If you need a savings account primarily for holding money temporarily while you wait for a check to clear or before paying a bill, the rate does not matter much. A few dollars in interest over a month is not worth the hassle of managing multiple banks.

PNC also offers relationship discounts on other products—lower mortgage rates, waived fees on checking accounts—if you maintain savings with them. If you are already a PNC customer getting those benefits, the low savings rate might be an acceptable trade-off for the overall package. But if your goal is to earn meaningful interest on savings, PNC is not the right place.

Frequently Asked Questions

Can I get a higher rate if I keep a large balance at PNC?

PNC does offer slightly higher rates on money market accounts with larger balances, but the increase is minimal. A $100,000 balance might earn 0.3% to 0.5% instead of 0.1%, which is still far below what online banks pay regardless of balance. The relationship discount on other products is often more valuable than the rate bump on savings.

Does PNC offer any promotional rates on savings accounts?

PNC occasionally runs limited-time promotions on new savings or money market accounts, offering slightly higher rates for a few months. These promotions are worth checking, but they are temporary and usually revert to standard rates after the promotional period ends. Even promotional rates at PNC rarely match standard rates at online banks.

What if I need my money quickly—is a PNC savings account better than an online bank?

Both PNC and online banks allow you to withdraw money the same day or next business day. PNC has the advantage of when ready access at a branch or ATM, but online banks transfer money to your linked checking account overnight. If you need cash in hand, PNC wins. If you need the money in your checking account, the difference is one day at most.

Can I move money from PNC to an online savings account without fees?

Yes. Both PNC and online banks allow external transfers between accounts, and neither charges a fee for outgoing transfers. The transfer takes one to two business days. You can set up recurring transfers if you want to move money regularly, or make one-time transfers as needed.

What happens to my PNC savings account interest if rates go up?

PNC adjusts savings rates when the Federal Reserve changes interest rates, but the adjustments are usually small and lag behind what online banks offer. If rates rise, PNC will pay slightly more, but you will still earn far less than you would at an online bank. Switching to a higher-rate account when rates rise is worth considering.