Regions savings accounts do earn interest, but the rate depends on the account type and your balance

Regions Bank offers several savings account options, and most of them pay interest on the money you deposit. The amount of interest you earn changes based on which account you choose, how much money you keep in it, and the current interest rate environment. Interest rates are not fixed — they move up and down based on what the Federal Reserve does with its benchmark rate, so the rate you see today may be different in three months.

The key difference between savings accounts at Regions is that some accounts pay higher interest rates if you maintain a larger balance or meet other conditions. Before opening an account, you should know what rate each one currently pays and what balance level triggers that rate, because a savings account that pays 0.01% interest is essentially not earning anything.

Key Takeaways

  • Regions offers multiple savings account types, and nearly all of them earn interest, though rates vary significantly between account types.
  • Interest rates at Regions change regularly and depend on Federal Reserve policy, so the rate advertised today may be different next quarter.
  • Some Regions savings accounts pay higher rates only when you maintain a minimum balance, so you need to know both the rate and the balance requirement.
  • You can find current rates on the Regions website or by calling a branch, since rates are not published in a single straightforward-to-compare list.

The main Regions savings account options and their interest rates

Regions Bank's primary savings accounts are the Regions Savings Account, the Regions Premium Savings Account, and the Regions Money Market Account. Each one has a different interest rate structure. The Regions Savings Account is the basic option and typically pays the lowest rate. The Premium Savings Account usually pays a higher rate if you keep a larger balance — often $25,000 or more, though this threshold can change. The Money Market Account is a hybrid product that works like a savings account but sometimes offers higher rates in exchange for restrictions on how often you can withdraw.

Interest rates on all three accounts fluctuate based on market conditions. Regions does not lock in a rate for a set period the way a certificate of deposit (CD) does. This means your rate could go up or down without warning, and you have no control over when that happens.

How to find the current interest rate on your account type

Regions publishes current rates on its website, but they are not always straightforward to find in one place. The most reliable way to see what rate you would earn is to visit Regions.com, navigate to the savings accounts section, and look for the rate disclosure for each account type. The rate shown should include the annual percentage yield (APY), which is the total interest you would earn in a year including compounding.

If you already have an account with Regions, you can also log into your online banking portal and check your account details, which should show your current rate. If you have questions about why your rate is different from what the website shows, call your local Regions branch or the customer service number on the back of your debit card — rates sometimes vary based on your account history or the state where you bank.

What balance you need to earn the advertised rate

This is where many people get surprised. Regions' higher-paying accounts often require you to keep a minimum balance to earn the advertised rate. If your balance drops below that threshold, your rate may drop to a much lower tier. For example, a Premium Savings Account might pay 4.00% APY on balances of $25,000 or more, but only 0.10% APY on balances below that amount.

Before you open an account, ask what the minimum balance requirement is and what happens to your rate if you fall below it. If you cannot consistently maintain that balance, you may be better off with a different account type that does not have a high threshold.

How interest is calculated and added to your account

Regions calculates interest daily based on your account balance, but it typically credits (adds) the interest to your account monthly. This means if you have $10,000 in an account paying 4.00% APY, Regions figures out what one day's worth of that interest is, multiplies it by the number of days in the month, and deposits that amount into your account on a set date each month.

The interest you earn also earns interest in the following months — this is called compounding. Over time, compounding makes your money grow faster than straightforward interest would. However, the effect is small with savings accounts because interest rates are relatively low and most people do not keep money in savings for decades.

Comparing Regions savings rates to other banks

Regions' savings account rates are competitive with other large national banks, but they are often lower than online banks or credit unions. Online banks like Marcus, Ally, and Discover typically pay higher rates because they have lower overhead costs. Credit unions sometimes offer competitive rates to their members. If earning the highest possible interest is your priority, you should compare Regions' current rates to at least two or three other institutions before deciding where to open an account.

That said, if you already bank with Regions and have direct deposit set up there, the convenience of keeping everything in one place may be worth a slightly lower rate. The difference between 4.00% and 4.50% APY on a $10,000 balance is only about $50 per year — not nothing, but not a deal-breaker for everyone.

What happens to your interest if rates fall

When the Federal Reserve lowers its benchmark rate, banks like Regions typically lower the rates they pay on savings accounts within days or weeks. Your interest earnings will shrink, and there is nothing you can do to prevent it. This is the trade-off for having a savings account with no lock-in period and no penalty for withdrawals.

If you want to protect yourself against falling rates, you could move some of your money into a certificate of deposit (CD), which locks in a fixed rate for a set term — usually three months to five years. CDs pay slightly higher rates than savings accounts because your money is locked up, but the rate does not change during the term.

Frequently Asked Questions

Do I have to pay taxes on the interest I earn from a Regions savings account?

Yes. Interest earned on a savings account is considered taxable income by the IRS. Regions will send you a Form 1099-INT at the end of the year if you earned $10 or more in interest, and you must report that amount on your tax return. Even if you earn less than $10, you should still report it.

Can I move money between my Regions savings account and checking account without losing interest?

Yes. Moving money between your own accounts at Regions does not affect the interest rate on your savings account. However, federal rules limit you to six withdrawals or transfers per month from a savings account. If you exceed that limit, Regions may charge a fee or convert your account to a checking account.

What is the difference between APY and interest rate?

The interest rate is the percentage Regions pays on your balance. APY (annual percentage yield) is the total amount you would earn in a year if you left the money untouched, including the effect of compounding. APY is always equal to or higher than the interest rate, so it is the number you should use when comparing accounts.

If I open a Regions savings account, when will I start earning interest?

Interest typically begins accruing (building up) the day your deposit is credited to the account, which is usually the same day you make the deposit if you do it in person or via transfer. The interest is then credited to your account on the bank's regular interest posting date, which is usually the last day of the month or the first day of the next month.