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 earns interest but at rates well below what you will find at online banks or credit unions. As of now, Citizens pays around 0.01% APY on savings balances, though this rate can change and varies slightly by state.

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, they prioritize branch access and checking account products over competitive savings rates. If you are looking for a high yield savings account, you will need to look elsewhere — either at an online bank, a credit union, or a different institution altogether.

Key Takeaways

  • Citizens Bank's standard savings account earns around 0.01% APY, which is significantly lower than high yield savings accounts offered by online banks.
  • Citizens does not offer a separate high yield savings product, so there is no premium savings tier within the bank.
  • Online banks and some credit unions typically offer rates between 4% and 5% APY on savings, making them a better choice if interest earnings matter to you.
  • If you value branch access and in-person service, you may choose Citizens despite the lower rate, but you will sacrifice earning potential on your savings.

How Citizens' Rate Compares to Other Banks

The difference between Citizens' 0.01% APY and a high yield savings account at 4.5% APY is substantial. On a $10,000 balance, Citizens would earn you roughly $1 per year, while a high yield account would earn around $450 annually. Over time, that gap compounds — especially if you add to your savings regularly.

Online banks like Marcus, Ally, and American Express Personal Savings typically offer the highest rates because they have no physical branches to maintain. Credit unions, particularly those in the CO-OP network, also frequently offer competitive rates on savings accounts. If you are comparing options, check the current rates directly with each institution, as rates change based on Federal Reserve decisions and market conditions.

Why Citizens Keeps Rates Low

Citizens Bank's low savings rate reflects their business model. They operate hundreds of branches, employ thousands of tellers and loan officers, and maintain physical locations in expensive real estate markets. Those costs get passed along through lower deposit rates and higher fees on checking accounts. They make money primarily by lending out deposits at higher rates, not by competing aggressively for savings balances.

This is not unusual for regional or national banks with branch networks. Wells Fargo, Bank of America, and Chase all offer similarly low savings rates. The trade-off is convenience — you can walk into a Citizens branch, speak to someone in person, and handle transactions immediately. Online banks cannot offer that, which is partly why they can afford to pay more on savings.

What Citizens Does Offer Savers

Citizens' standard savings account has no monthly maintenance fee if you maintain a minimum balance (typically $100 to $300, depending on your state). You can open one online or at a branch. The account comes with a debit card, online access, and the ability to link it to a Citizens checking account for easy transfers.

If you keep most of your money in Citizens checking and only use savings as a holding account for short-term goals, the low rate may not matter much to you. But if you are trying to build an emergency fund or save for a major purchase, the interest you earn will be minimal. Many people use Citizens for checking and move savings to a higher-rate account elsewhere.

When a Citizens Savings Account Makes Sense

A Citizens savings account is practical if you are already a Citizens customer and value the convenience of managing everything in one place. Some people prefer having their emergency fund at the same bank where they get their paycheck, even if the rate is lower. The ease of transferring money between accounts can outweigh the interest difference for small balances or short time horizons.

Citizens also offers money market accounts and certificates of deposit (CDs), which pay higher rates than savings accounts. If you have money you will not need for a set period, a CD might earn you more. Check Citizens' current CD rates — they sometimes offer promotional rates on longer terms that beat their savings account rate by a significant margin.

Better Alternatives for High Yield Savings

If earning interest on your savings is a priority, open a high yield savings account at an online bank. You do not need to close your Citizens account — many people maintain both. Keep your checking at Citizens for convenience and move savings to an online bank for the rate. Transfers between banks take one to three business days via ACH, so it is not instantaneous, but it is straightforward.

Credit unions are another option, especially if you are a member or can join one through your employer or community. Some credit unions offer savings rates competitive with online banks and may also offer better terms on loans. The National Credit Union Administration (NCUA) insures deposits up to $250,000, just like the FDIC does for banks, so your money is equally protected.

Frequently Asked Questions

Can I earn more interest by opening a Citizens money market account instead?

Citizens money market accounts typically pay slightly more than savings accounts, but still well below high yield rates. Check Citizens' current rates directly, as they vary by state and change frequently. Money market accounts often require a higher minimum balance to avoid fees.

What if I want to keep everything at Citizens but earn better interest?

Citizens CDs pay higher rates than savings accounts, and rates increase with longer terms. A one-year or two-year CD will earn you more than a savings account, but your money will be locked up. If you need access to the funds, a CD is not the right choice.

Is my money safe in a Citizens savings account?

Yes. Citizens Bank is FDIC-insured, meaning deposits up to $250,000 per account type are protected by the federal government. Your savings account balance is fully covered as long as it does not exceed that limit.

Can I transfer money from Citizens to a high yield savings account easily?

Yes. You can link a Citizens account to an online bank account and transfer money via ACH, which typically takes one to three business days. Some online banks also allow you to transfer by check or wire, though wire transfers may cost money.

Will Citizens ever offer a high yield savings account?

Banks occasionally launch new products, but Citizens has not announced plans for a high yield account. Their strategy focuses on branch banking and lending, not competing on deposit rates. If this changes, Citizens would announce it publicly.