OpenBank's rates are competitive but come with trade-offs you should know

OpenBank is an online bank owned by Banco Sabadell, a Spanish bank, and it offers a high yield savings account through its U.S. platform. The account pays a variable APY that changes with market conditions — you can check the current rate on their website before opening. The account has no monthly fees, no minimum balance requirement, and FDIC insurance up to $250,000, which means your money is protected if the bank fails.

Whether it's "good" depends on what you're comparing it to. OpenBank's rate is usually competitive with other online banks like Marcus, Ally, and American Express Personal Savings, but it's not always the highest available. The real question is whether the account fits your banking habits — specifically, whether you're comfortable banking entirely online and whether you need access to a physical branch.

Key Takeaways

  • OpenBank's high yield savings rate is variable and competitive with other online banks, but you should compare it to at least two others before opening because rates shift weekly.
  • The account has no fees, no minimum balance, and FDIC insurance, making it safe to hold money in, but you cannot deposit cash in person or visit a branch.
  • Transfers out take one to two business days through ACH, so this account works best for money you don't need to access immediately.
  • OpenBank is owned by a Spanish bank, which some people worry about, but the account is FDIC-insured and regulated by U.S. banking authorities.

How OpenBank's rate compares to other online banks

OpenBank's APY moves with the federal funds rate, so when the Federal Reserve raises rates, OpenBank typically raises its savings rate within days or weeks. When rates fall, the same happens in reverse. This is normal for online banks — they all follow the same pattern because they're competing for the same deposits.

To know if OpenBank's current rate is good, you need to check it against Marcus, Ally, American Express Personal Savings, and Discover Bank on the same day. Rates can differ by 0.25% to 0.50% APY depending on market conditions and how aggressively each bank is competing for deposits that week. Over a year, that difference matters: on $10,000, a 0.25% gap costs you $25 in interest.

OpenBank does not offer tiered rates or promotional bonuses — you get the same rate whether you deposit $100 or $100,000. Some competitors occasionally offer higher rates for new customers for a limited time, so check whether anyone is running a promotion before you decide.

What makes OpenBank different from traditional banks

OpenBank is entirely online. You cannot walk into a branch, deposit cash, or speak to someone face-to-face. All deposits come through ACH transfer from another bank account, and all withdrawals go back to another account via ACH. This usually takes one to two business days.

If you need to move money quickly — say, to cover an unexpected expense today — OpenBank is not the right tool. The account is designed for money you're saving and don't need to touch often. If you need same-day access to cash, you need a bank with branches or ATM access, or you need to keep a smaller emergency fund in a checking account at your main bank.

OpenBank does offer a checking account as well, but it has no physical locations and no ATM network. You would need to transfer money to another bank's checking account to withdraw cash. This makes it impractical as your primary bank unless you're comfortable with that workflow.

FDIC insurance and the Spanish ownership question

OpenBank's savings account is FDIC-insured up to $250,000 per account holder per bank. This means if OpenBank fails, the federal government guarantees your money up to that limit. The FDIC insurance applies regardless of who owns the bank — Spanish ownership does not change this protection.

OpenBank operates under a U.S. banking charter and is regulated by the Office of the Comptroller of the Currency (OCC), the same regulator that oversees other national banks. The Spanish parent company does not override U.S. banking rules. That said, if you're uncomfortable with foreign ownership for any reason, you can choose a U.S.-owned online bank instead — there are many with similar rates.

When OpenBank makes sense and when it doesn't

OpenBank works well if you have money you want to save for six months or longer and you don't need to access it frequently. The lack of fees and the competitive rate mean your money grows without being eaten by charges. It also works if you already have a checking account elsewhere and you just want a separate place to park savings.

OpenBank does not work if you need to deposit cash regularly, if you want to speak to someone by phone (they offer email and chat support only), or if you need same-day access to your money. It also doesn't work if you're comparing it only to your current bank's savings account — most traditional banks pay 0.01% APY or less, so OpenBank will look dramatically better by comparison, but that doesn't mean it's the best choice available.

How to compare OpenBank to your other options

Before opening an account, visit OpenBank's website and write down the current APY. Then check the current rates at Marcus, Ally, American Express Personal Savings, and Discover Bank. Look at the rates, not the promotional language. Write down whether each bank charges fees (most don't), what the minimum balance is (most have none), and how long transfers take (most say one to two business days).

If OpenBank's rate is within 0.10% of the highest rate you found, it's competitive. If it's 0.25% or more below the highest, another bank is paying better right now. Rates change frequently, so this comparison is only valid for the day you do it. You can check again in a few weeks if you're not ready to open an account yet.

Also consider whether you'll actually use the account. If you're the type of person who opens savings accounts and forgets about them, any online bank works equally well. If you think you might need to move money around or access it quickly, choose a bank with better access options, even if the rate is slightly lower.

Frequently Asked Questions

Can I deposit cash into an OpenBank savings account?

No. OpenBank is online-only, so you cannot deposit cash in person. All deposits must come from another bank account via ACH transfer. If you need to deposit cash, you would have to deposit it at your main bank first, then transfer it to OpenBank.

How long does it take to transfer money out of OpenBank?

ACH transfers out usually take one to two business days. If you need the money faster, you'll have to wait or keep your emergency fund in a bank with faster access. Some banks offer same-day transfers, but OpenBank does not.

Is OpenBank FDIC insured?

Yes. Your savings account is FDIC-insured up to $250,000. This protection applies even though OpenBank is owned by a Spanish bank. The FDIC may provide is backed by the U.S. government and does not depend on the bank's ownership.

What happens if OpenBank goes out of business?

The FDIC takes over and pays out deposits up to $250,000 per account holder. You would receive your money, though it might take a few weeks. This has happened to other banks before, and FDIC-insured customers were paid in full.

Should I move my savings from my current bank to OpenBank?

If your current bank pays less than 0.50% APY and you don't need frequent access to the money, moving to OpenBank or another online bank will earn you significantly more interest. If your current bank already pays a competitive rate, compare the two before moving. The difference in interest might not be worth the hassle if rates are similar.