What Truist offers in high-yield savings

Truist does not currently offer a dedicated high-yield savings account. The bank's standard savings products—including its basic savings account and money market accounts—carry interest rates that are substantially lower than what you will find at online banks or credit unions specializing in high-yield products.

As of early 2024, Truist's savings account rates typically range from 0.01% to 0.05% annual percentage yield (APY), depending on your account type and balance. Online banks and some credit unions regularly offer rates between 4% and 5% APY on savings accounts with no minimum balance requirements. The difference compounds quickly: on a $10,000 balance, Truist's rate would earn roughly $1 to $5 per year, while a 4.5% account would earn $450.

If you hold a Truist checking account and want to keep your money in one place, the bank does offer money market accounts that pay slightly higher rates than savings accounts—but these rates still lag behind dedicated high-yield products elsewhere. Money market accounts also typically require a higher minimum balance to open and may limit the number of withdrawals you can make per month.

Key Takeaways

  • Truist's savings accounts pay between 0.01% and 0.05% APY, which is significantly lower than high-yield savings accounts at online banks.
  • Online banks and credit unions offer savings rates between 4% and 5% APY with no minimum balance or monthly fees.
  • Truist's money market accounts pay slightly more than savings accounts but still fall short of high-yield rates and require higher minimum deposits.
  • The rate difference means you could earn 50 to 100 times more interest by moving your savings to a high-yield account elsewhere.

How Truist's savings rates compare to other banks

The gap between Truist and high-yield competitors is substantial. A typical online bank like Marcus, Ally, or American Express Personal Savings offers rates in the 4% to 5% range with no monthly maintenance fees, no minimum balance, and no restrictions on how often you withdraw. Credit unions, particularly those in the CO-OP network, often match or exceed these rates for members.

Truist's rates reflect the bank's traditional brick-and-mortar model: physical branches, tellers, and customer service staff cost money, and those costs are passed along through lower deposit rates. Online banks eliminate most of that overhead, which allows them to pay depositors more. If you are keeping money in Truist primarily for convenience—because you use the branch network or have a checking account there—you are paying for that convenience through lost interest.

Regional and national banks like Bank of America, Wells Fargo, and Chase offer savings rates similar to Truist's, typically under 0.10% APY. If you are comparing Truist to other traditional banks, the rates are competitive. If you are comparing Truist to the broader savings market, the rates are not.

When a Truist savings account might still make sense

A Truist savings account is worth keeping if you need frequent access to a physical branch, use Truist's checking account for direct deposit or bill pay, or want to avoid managing accounts at multiple institutions. The convenience of one-bank banking—seeing all your accounts in one login, making deposits at a branch, speaking to a teller in person—has real value for some people, even if it costs you in interest earnings.

If you are saving for a short-term goal (a few months) or keeping only a small emergency fund in savings, the interest rate difference may not matter much in dollar terms. On $1,000, the difference between 0.05% and 4.5% is roughly $44 per year—meaningful, but not transformative. On $50,000, that same difference is $2,225 per year, which is substantial enough to warrant moving your money.

Truist also offers promotional rates on new savings accounts from time to time. These promotions typically last three to six months and offer rates closer to 1% or 2% APY. If you see a Truist promotion, check the terms carefully: most require a minimum deposit, limit how long the rate lasts, and revert to the standard rate once the promotion ends.

How to move money to a high-yield account

Opening a high-yield savings account at an online bank takes 10 to 15 minutes and requires your Social Security number, address, and a government-issued ID. Most online banks verify your identity instantly and let you begin depositing money the same day. You can transfer funds from your Truist account using the online bank's transfer tool (which typically takes one to three business days) or by having your employer deposit directly into the new account.

You do not have to close your Truist account. Many people keep a small balance in their primary bank for checking and bill pay while moving savings to a high-yield account elsewhere. This approach gives you the convenience of a physical bank plus the interest earnings of an online bank.

If you want to move a large balance, do it in stages over a few weeks rather than all at once. This protects you against fraud or account lockout issues: if something goes wrong with the first transfer, you still have most of your money in a place you know is secure.

What to look for in a high-yield savings account

When comparing high-yield accounts, focus on three things: the current APY, whether the rate is may provide or promotional, and the bank's Federal Deposit Insurance Corporation (FDIC) coverage. All deposits up to $250,000 per depositor per bank are insured by the FDIC, so your money is protected even if the bank fails.

Check whether the rate is a promotional offer or the standard rate. A bank advertising 5% APY might only pay that rate for the first three months, then drop to 0.50%. Read the fine print or call the bank to confirm how long the rate lasts and whether it applies to your account type.

Look for accounts with no monthly fees, no minimum balance, and no restrictions on withdrawals. Some high-yield accounts limit you to six withdrawals per month or charge a fee if your balance drops below a certain level. The best accounts have none of these restrictions.

Frequently Asked Questions

Can I earn interest on my Truist checking account?

Most Truist checking accounts earn little to no interest. Some premium checking products may offer rates between 0.01% and 0.10% APY if you meet balance or deposit requirements. For interest-bearing checking, you would typically earn more at an online bank or credit union.

Does Truist offer any savings products with higher rates?

Truist's money market accounts pay slightly more than savings accounts, but rates still fall well below high-yield products at online banks. Certificates of deposit (CDs) offer higher rates than savings accounts, but your money is locked up for a set term (typically three months to five years), and you pay a penalty if you withdraw early.

What happens to my interest if I move my money to another bank?

Interest accrues daily and is paid monthly. When you close your Truist account or transfer money out, you receive all interest earned up to the day the account closes. There is no penalty for moving your savings to another bank.

Is my money safe in an online bank's high-yield savings account?

Yes, as long as the bank is FDIC-insured. Check the bank's website or the FDIC's bank search tool to confirm coverage. Your deposits are protected up to $250,000 per depositor per bank, the same as at Truist.

How often do high-yield savings rates change?

Banks adjust rates based on the Federal Reserve's interest rate decisions. When the Fed raises rates, high-yield accounts typically increase their rates within days or weeks. When the Fed cuts rates, online banks usually lower their rates as well. Rates can change multiple times per year.