Citizens Bank does not offer a dedicated high yield savings account

Citizens Bank's standard savings account earns interest, but the rate is not competitive with accounts marketed as "high yield." As of now, Citizens Bank offers a regular savings account with a rate that typically sits well below 1% annual percentage yield (APY). Banks that advertise high yield savings accounts—often online-only institutions—currently offer rates between 4% and 5% APY, depending on the market and the bank.

If you have money sitting in a Citizens Bank savings account expecting high yield returns, you are earning significantly less than you could elsewhere. The difference matters: on $10,000, the gap between 0.01% and 4.5% is roughly $450 per year in lost interest.

Citizens Bank does offer other products that may interest you if you are looking for better returns on deposits, though none are traditional high yield savings accounts. Understanding what Citizens Bank actually has, and what it does not, helps you decide whether to move money or keep it where it is.

Key Takeaways

  • Citizens Bank's savings account earns less than 1% APY, which is substantially lower than high yield savings accounts offered by other banks.
  • High yield savings accounts from online banks and some credit unions currently pay between 4% and 5% APY, making them a better choice for money you want to grow.
  • Citizens Bank offers money market accounts and certificates of deposit (CDs) that may pay higher rates than the savings account, though rates vary by term and deposit amount.
  • If you keep money at Citizens Bank for convenience or because you have other accounts there, the savings account rate is a trade-off you are making for that convenience.

What Citizens Bank's savings account actually pays

Citizens Bank calls its basic savings product a "Savings Account." The rate changes based on market conditions and your balance, but it has historically remained below 0.5% APY. You can check the current rate on Citizens Bank's website or by calling a branch, since rates shift and vary slightly by region.

The account has no monthly maintenance fee if you maintain a minimum balance—typically $100 to $500 depending on your account type. You can make up to six withdrawals per month before facing a fee, which is a standard Federal Reserve rule that applies across most banks.

The low rate reflects Citizens Bank's business model: it is a traditional brick-and-mortar bank with physical branches, staff, and overhead costs. Those costs get passed along as lower deposit rates. Online banks, by contrast, have minimal physical infrastructure and can afford to pay depositors more.

How Citizens Bank's other deposit products compare

Citizens Bank offers money market accounts that sometimes pay slightly higher rates than the savings account, though the difference is usually small—perhaps 0.10% to 0.25% more. Money market accounts come with a debit card and check-writing privileges, but they also carry the same six-withdrawal limit per month.

Certificates of deposit (CDs) are where Citizens Bank's rates improve noticeably. A CD locks your money away for a set term—typically three months, six months, one year, or longer—and in exchange, the bank pays a higher rate. Citizens Bank's CD rates vary by term length and current market conditions, but they are generally higher than the savings account rate. The trade-off is that you cannot touch the money without paying an early withdrawal penalty, usually equal to a few months of interest.

If you have $25,000 or more, Citizens Bank offers premium accounts with slightly better rates and lower fees. These accounts are designed to keep larger depositors from moving their money elsewhere, but the rates still lag behind what high yield savings accounts pay.

Why high yield savings accounts pay so much more

High yield savings accounts are offered primarily by online banks and some credit unions. They pay more because they have lower operating costs: no branches, no tellers, no physical real estate. They also compete aggressively for deposits by offering the highest rates the market allows.

The current high yield savings market is driven by the Federal Reserve's interest rate decisions. When the Fed raises rates, banks that depend on deposits to fund loans—including online banks—raise what they pay depositors. When the Fed cuts rates, those rates fall. Right now, the Fed's rates are higher than they have been in years, which is why high yield accounts are paying 4% to 5%.

This situation can change. If the Fed cuts rates significantly, high yield savings rates will fall too. But even in lower-rate environments, online banks typically pay more than traditional banks like Citizens Bank because their cost structure is fundamentally different.

Moving money from Citizens Bank to a high yield account

If you decide to move savings to a high yield account, the process is straightforward. Most online banks allow you to link your Citizens Bank account and transfer money electronically. The transfer usually takes one to three business days.

You do not have to close your Citizens Bank account. Many people keep a checking account at Citizens Bank for everyday use and move savings to a high yield account elsewhere. This approach gives you the convenience of a local branch for deposits and withdrawals while earning better interest on money you are saving.

Before you move, check whether Citizens Bank charges a fee for closing the account or for maintaining a low balance. Most do not, but it is worth confirming. Also verify that your new high yield account is FDIC insured (or NCUA insured if it is a credit union) so your deposits are protected up to $250,000.

When it makes sense to keep money at Citizens Bank

If you have a Citizens Bank checking account and use the branch network regularly, keeping some savings there has a real convenience value. You can deposit checks in person, withdraw cash without fees, and manage everything in one place. That convenience is worth something, even if it costs you in interest.

For money you need to access frequently—an emergency fund, for instance—the difference between 0.01% and 4.5% matters less than having when ready access. If you are the type of person who will actually move money to a high yield account and leave it there, the math favors moving. If you will second-guess yourself or find the separate account annoying to manage, keeping it at Citizens Bank might be the right choice for your situation.

Citizens Bank also offers other products—credit cards, loans, investment services—that may have value to you as a customer. If you are getting a good deal on a mortgage or credit card rate, the savings account rate is one piece of a larger relationship.

Frequently Asked Questions

Does Citizens Bank have any account that pays high yield rates?

No. Citizens Bank's savings accounts, money market accounts, and standard CDs all pay rates well below what high yield savings accounts offer. If earning the highest possible interest is your goal, you will need to open an account at a different bank.

Can I move my Citizens Bank savings to a high yield account without closing my checking account?

Yes. You can transfer your savings to another bank and keep your Citizens Bank checking account open. Most online banks let you link your Citizens Bank account and move money electronically in one to three business days.

What happens to high yield savings rates if the Federal Reserve cuts interest rates?

High yield savings rates will fall, but they typically remain higher than traditional bank rates. Online banks compete on rates, so even in a lower-rate environment, they usually pay more than Citizens Bank because their costs are lower.

Is my money safe in a high yield savings account at an online bank?

Yes, as long as the bank is FDIC insured. Your deposits are protected up to $250,000 per account, the same as at Citizens Bank. Check the bank's website to confirm FDIC insurance before you open an account.

How much more interest would I earn by moving $10,000 to a high yield account?

The difference depends on the current rates, which change frequently. If Citizens Bank pays 0.01% and a high yield account pays 4.5%, you would earn roughly $450 more per year on $10,000. Check current rates at both Citizens Bank and the high yield bank you are considering to calculate the exact difference.