Citizens Bank's Savings Account Lineup
Citizens Bank does not currently offer a dedicated high yield savings account. The bank offers a standard savings account called the Savings Account, which pays a base interest rate that is typically lower than what you would find at online banks or credit unions specializing in high yield products. As of now, Citizens does not have a separate product marketed as a "high yield" option.
Citizens is a regional bank with branches across the Northeast and Midwest, plus some locations in other states. Like most traditional brick-and-mortar banks, their savings rates reflect the overhead costs of maintaining physical locations. If you already bank with Citizens for checking or other services, their savings account may be convenient, but the rate alone is unlikely to be competitive with online alternatives.
The actual rate Citizens pays on savings varies by state and changes with market conditions. You can check the current rate on Citizens' website or by calling a branch, since rates are not standardized across all their locations.
Key Takeaways
- Citizens Bank offers a standard savings account, not a high yield savings account, and rates are typically lower than online banks.
- Interest rates at Citizens vary by location and change over time, so you need to check directly with your branch or their website for the current rate.
- If earning the highest possible interest is your priority, online banks and some credit unions offer substantially higher rates on savings accounts.
- Citizens savings may make sense if you value branch access and already have other accounts there, but not if rate is your main concern.
How Citizens' Rate Compares to Online Banks
Online banks typically offer rates two to five times higher than what Citizens Bank pays on savings. This difference exists because online banks have no physical branches, lower staff costs, and pass those savings to customers through higher rates. A Citizens savings account might pay 0.01% to 0.05% APY, while online banks often pay 4% to 5% APY or more, depending on market conditions.
The gap matters most if you plan to keep a large balance in savings for a long time. On a $10,000 balance, the difference between 0.05% and 4.5% APY is roughly $450 per year. On $50,000, that gap widens to $2,250 annually. Even on smaller balances, the compounding effect adds up over months and years.
When a Citizens Savings Account Still Makes Sense
A Citizens savings account is worth considering if you already have a checking account with them and want to keep all your banking in one place. Some customers value the ability to walk into a branch to deposit cash, withdraw large amounts, or speak to someone in person about their account. If you use Citizens' checking account and earn relationship benefits or fee waivers, adding a savings account might preserve those perks.
Citizens also offers no monthly maintenance fees on their savings account (though this varies by state and account type, so confirm with your branch). If you maintain a very small balance and do not expect to earn much interest anyway, the convenience of one bank may outweigh the rate difference.
What to Look for in a High Yield Savings Account Elsewhere
If you decide to move your savings to a higher-rate account, look for banks or credit unions that offer FDIC insurance (for banks) or NCUA insurance (for credit unions) up to $250,000 per depositor. This protects your money if the institution fails. Most online banks and many credit unions offer this protection.
Check whether the account has a minimum balance requirement, whether the rate is may provide or variable, and whether there are any restrictions on how often you can withdraw money. Some high yield savings accounts limit withdrawals to six per month, though this rule has become less common. Read the account terms before opening to understand what you are signing up for.
Moving Money from Citizens to Another Bank
If you have a Citizens savings account and want to move your balance to a higher-rate account elsewhere, the process is straightforward. You can request an ACH transfer from Citizens to your new bank, which typically takes three to five business days. Alternatively, you can withdraw the money and deposit it into the new account yourself.
You do not need to close your Citizens account when ready. Many people keep a small balance at their original bank for convenience while moving the bulk of their savings to a higher-rate account. If you do decide to close the account, contact Citizens directly to confirm there are no outstanding checks or pending transactions.
Frequently Asked Questions
What is Citizens Bank's current savings account interest rate?
Citizens' rate varies by state and changes frequently. Check their website or call your local branch for the current rate. Rates are typically much lower than online banks, usually under 0.1% APY.
Can I earn more interest by keeping a larger balance at Citizens?
No. Citizens pays the same rate on all savings balances, regardless of size. A higher balance does not earn a higher rate. If you want tiered rates that reward larger deposits, you would need to look at other banks.
Does Citizens offer any other savings products besides the standard savings account?
Citizens offers certificates of deposit (CDs), which lock your money away for a set term in exchange for a fixed rate. CDs typically pay more than savings accounts, but you cannot withdraw the money early without a penalty. Check with Citizens for current CD rates and terms.
Is my money safe in a Citizens savings account?
Yes. Citizens Bank is FDIC-insured, so deposits up to $250,000 per account holder are protected if the bank fails. This protection applies to savings accounts, checking accounts, and CDs.
How long does it take to transfer money out of Citizens to another bank?
An ACH transfer from Citizens to another bank typically takes three to five business days. If you withdraw cash and deposit it elsewhere, the timeline depends on how quickly you can physically move the money and how fast the receiving bank processes the deposit.