Regions Bank does not currently offer a dedicated high-yield savings account

Regions Bank's standard savings accounts earn interest rates well below what you will find at online banks or credit unions. As of early 2024, Regions' regular savings accounts typically earn between 0.01% and 0.05% annual percentage yield (APY), depending on your account type and balance. That means on $10,000, you would earn roughly $1 to $5 per year.

If you are looking for a savings account that compounds faster, you will need to look outside Regions. Online banks like Marcus, Ally, and American Express Personal Savings currently offer rates between 4% and 5% APY on savings accounts with no minimum balance and no monthly fees. Credit unions sometimes offer competitive rates as well, particularly if you are a member.

Regions does offer money market accounts, which occasionally pay slightly higher rates than savings accounts, but these still lag behind what online competitors provide. The trade-off is that money market accounts may require a higher opening balance and limit how many withdrawals you can make per month.

Key Takeaways

  • Regions Bank's savings accounts earn 0.01% to 0.05% APY, which is significantly lower than online banks offering 4% to 5% APY.
  • Regions does not market a high-yield savings product, though money market accounts pay slightly more than regular savings.
  • If earning meaningful interest is your goal, comparing rates at online banks or credit unions will show you the difference in annual earnings on the same balance.
  • Regions savings accounts may still make sense if you value in-person branch access or already have other accounts there, but not for interest income.

Why Regions' rates are lower than online competitors

Regions operates a large network of physical branches across the Southeast and Midwest, which costs money to maintain. Those branch locations, staff, and ATM networks are funded partly through lower interest rates on deposits. Online banks have no branches and no tellers, so they can pass savings directly to customers through higher rates.

This is not unique to Regions—traditional banks with branch networks generally pay less on savings than online-only institutions. You are paying for convenience and service, not for interest income. If you rarely visit a branch, that trade-off may not be worth it.

Regions' money market accounts as an alternative

Regions offers money market accounts that typically pay more than their savings accounts, though still less than online alternatives. These accounts usually require a higher opening deposit—often $2,500 to $10,000—and may limit you to three to six withdrawals per month before charging a fee.

The higher rate on a money market account at Regions might be 0.10% to 0.20% APY, which is still a small fraction of what online banks pay. Unless you need the withdrawal flexibility or want to keep money at Regions for other reasons, a high-yield savings account at an online bank will serve you better.

How to compare Regions against other banks

Start by listing what matters to you: interest rate, minimum balance, monthly fees, branch access, and ease of transfers. Then check the current rates at three to five online banks (Marcus, Ally, American Express Personal Savings, and Discover are common starting points) and one or two credit unions if you are a member or can join.

Use a straightforward spreadsheet to calculate what you would earn in a year on your actual balance at each institution. On $25,000, the difference between 0.05% at Regions and 4.5% at an online bank is roughly $1,100 per year. That gap widens with larger balances and narrows with smaller ones, but it is real money worth considering.

Also check whether Regions charges monthly maintenance fees on savings accounts. Some accounts waive fees if you maintain a minimum balance or set up direct deposit, which can offset some of the rate disadvantage.

When Regions savings might still make sense

If you already have a checking account at Regions and value the convenience of managing everything in one place, keeping a small emergency fund in a Regions savings account is reasonable. The rate difference matters less on smaller balances, and the simplicity of one bank may be worth the trade-off.

Regions also offers other products—mortgages, auto loans, investment services—and some customers find value in having a relationship with one institution. That is a legitimate choice, even if it means earning less on savings.

However, if your goal is to maximize interest income on money you are not spending, opening a high-yield savings account elsewhere and keeping only what you need at Regions is the more efficient approach.

Moving money between Regions and a high-yield account

If you decide to open a high-yield savings account elsewhere, you do not have to close your Regions account. Many people keep a small balance at their traditional bank for convenience and move larger sums to online savings accounts for interest.

Transfers between Regions and online banks typically take one to three business days using ACH (automated clearing house) transfers. You can set these up online through either bank's website. Some online banks also offer a service where they pull money directly from your Regions account, which can speed up the process.

There is no penalty for moving money between banks, and you can move it back anytime. This flexibility means you can test an online bank's platform and customer service without committing permanently.

Frequently Asked Questions

Does Regions have any savings account that earns more than 0.05% APY?

Regions' money market accounts may earn slightly more, typically 0.10% to 0.20% APY, but this is still far below online banks. If earning meaningful interest is your priority, you will need to look outside Regions.

Can I open a high-yield savings account at an online bank if I do not have a checking account there?

Yes. Most online banks let you open a savings account without a checking account. You will need a Social Security number, proof of address, and a way to fund the account (usually a transfer from another bank).

Will moving money to an online bank affect my credit score?

No. Opening a savings account and moving money between banks does not trigger a hard credit inquiry and does not affect your credit score. Only credit applications (loans, credit cards) do that.

What happens to my money if an online bank fails?

Deposits at banks insured by the FDIC are protected up to $250,000 per depositor per bank. Most online banks are FDIC-insured. Check the bank's website for their FDIC certificate number to confirm coverage.

Is there a penalty for closing my Regions savings account?

Regions does not typically charge a fee to close a savings account, but check your account agreement or call your local branch to confirm. Some banks charge a fee if you close within a certain period, though this is uncommon.