Regions savings accounts do earn interest, but the rate depends on the account type and your balance
Regions Bank offers several savings account options, and most of them pay interest. The amount you earn varies by account: their basic savings account pays a lower rate, while their money market accounts and high-yield savings products pay more. The actual rate Regions pays changes based on the Federal Reserve's actions and market conditions, so what you earn today may differ in three months.
Interest accrues daily on your balance and is typically deposited monthly. You do not have to do anything to earn it—Regions calculates and adds it automatically. However, the rate you receive depends on factors like your account type, your opening balance, and sometimes your total relationship with the bank.
Key Takeaways
- Regions offers multiple savings products with different interest rates: basic savings accounts earn less, while money market and high-yield options earn more.
- Interest rates change regularly and are set by Regions based on Federal Reserve policy, so comparing rates across banks matters if you want the highest return.
- Interest compounds daily but is usually added to your account once per month.
- Some Regions savings accounts require a minimum opening deposit or minimum balance to earn the advertised rate.
What Regions savings account types earn interest
Regions offers a basic savings account that earns interest on any balance you hold. This account typically has no monthly fee and no minimum balance requirement, though the interest rate is modest compared to other options. If you maintain a small balance or prefer simplicity, this account works, but you will earn very little interest on smaller amounts.
Regions also offers money market accounts, which pay higher interest rates than basic savings but usually require a larger opening deposit and minimum balance. These accounts often come with a limited number of checks or transfers per month. If you have several thousand dollars to deposit and want a better return without taking on investment risk, a money market account is worth comparing.
Regions occasionally promotes special savings products or high-yield options, though availability and terms change. Check directly with Regions or visit a branch to see what products are currently available in your state, since offerings vary by location.
How to find the current interest rate Regions is paying
Regions publishes its current rates on its website under the savings or deposit section. You can view rates for each account type without logging in. Rates are listed as an annual percentage yield (APY), which shows you the total return you would earn in a year if you left the money untouched.
The rate shown online is usually the standard rate for new accounts. If you already have a Regions account, log in to see the specific rate on your account, since existing customers sometimes receive different rates than new customers. You can also call Regions at the number on your debit card or visit a local branch to ask about current rates and any promotions.
Compare Regions rates to other banks before opening an account. Online banks and credit unions sometimes pay significantly higher rates on savings accounts, especially on money market accounts. A few percentage points difference may not sound like much, but on a $10,000 balance over a year, it can mean hundreds of dollars in additional earnings.
What happens to your interest if you withdraw money
Interest accrues on your balance every day. If you withdraw money before the end of the month, you still earn interest on the amount you held during that time. For example, if you had $5,000 in the account for 20 days and then withdrew $2,000, you earn interest on the full $5,000 for those 20 days, then on the remaining $3,000 for the rest of the month.
Some Regions savings accounts limit how many withdrawals or transfers you can make per month without a fee. If you exceed that limit, Regions may charge a fee per extra transaction. Check your account terms to see if withdrawal limits apply to your specific account type.
Minimum balance requirements and how they affect your rate
Regions' basic savings account typically has no minimum balance requirement. However, money market accounts and some promotional products do require you to maintain a certain balance—often $2,500 to $25,000 or more—to earn the advertised rate. If your balance falls below the minimum, Regions may pay you a lower rate or charge a monthly fee.
The minimum opening deposit is separate from the minimum balance. You might need to deposit $500 to open an account but maintain $2,500 to keep earning the higher rate. Read the account disclosure carefully before opening, or ask a Regions representative to explain the exact requirements for the account you are considering.
How interest rates change and what to expect
Regions adjusts its savings rates in response to changes in the Federal Reserve's benchmark interest rate. When the Fed raises rates, Regions typically raises its rates within days or weeks. When the Fed cuts rates, Regions usually cuts its rates as well. This means the interest you earn can go up or down without warning.
If rates drop significantly, you may want to move your money to a bank offering higher rates. Regions will not penalize you for closing a savings account or moving funds to another bank. However, if you have a promotional rate that is locked in for a specific period, that rate may be protected even if Regions lowers rates for new customers.
Frequently Asked Questions
Do I have to pay taxes on the interest I earn from a Regions savings account?
Yes. Interest earned on a savings account is taxable income. Regions will send you a Form 1099-INT at the end of the year if you earned $10 or more in interest. You report this amount on your tax return. The interest is taxed at your ordinary income tax rate, not as a capital gain.
Can I earn interest on a Regions checking account?
Some Regions checking accounts do earn interest, but the rate is typically very low or zero. Money market checking accounts may pay interest if you meet balance requirements. Ask Regions directly about which checking products earn interest, since most standard checking accounts do not.
What if I keep my money in a Regions savings account instead of investing it?
A savings account is safer than investing because your money is insured by the FDIC up to $250,000. However, savings account interest rates are usually lower than investment returns over time. If you do not need the money for several years and can tolerate risk, investing may grow your money faster, but a savings account is the right choice if you need the money soon or want to avoid risk.
How often is interest added to my Regions savings account?
Interest is calculated daily but usually deposited to your account once per month. The exact date depends on your account type and Regions' processing schedule. You can see the interest deposit in your account history each month.
Can I move my money between Regions accounts without losing interest?
Transferring money between your own Regions accounts does not affect interest accrual. However, if you move money out of Regions entirely to another bank, you stop earning Regions' interest rate. The new bank will begin paying interest based on its own rate and terms.