Vault’s Viewpoint: Overview of the Best Savings Interest Rates In Rhode Island
Savings Account | Superlative | APY | Minimum Deposit | Monthly Fees |
Forbright Bank Growth Savings | Best Online Savings | 5.30% | $0 | $0 |
Jenius Savings | Best for Daily Compounded Interest | 5.25% | $0 | $0 |
SoFi Checking and Savings | Best Combined Checking and Savings | 4.60% | $0 | $0 |
Westerly Community Credit Union Diamond Savings Account | Best Local Credit Union | 3.75% | $25 | $0 |
Washington Trust High-Rate Savings | Best Local Bank | 3.00% | $25 | Not disclosed |
Best Online Savings
Forbright Bank Growth Savings
Vault Verified
Why We Chose It
If an ultra-high interest rate is a top priority for you, Forbright Bank’s Growth Savings account is an excellent choice. This online savings account offers a 5.30% APY, which is among the highest we’ve seen.
Pros
- No monthly fees
- No minimum balance requirement to avoid fees
- Very high APY compared to competitors
Cons
- Accounts with a $0 balance will be closed after 21 days
- No local branches
Best for Daily Compounded Interest
Jenius Savings
Vault Verified
Why We Chose It
Banks can choose the intervals at which they compound interest, but daily compounding results in higher interest earnings than monthly or quarterly compounding. With its impressive 5.25% rate, the Jenius Savings account is our top pick for daily compounding interest.
Pros
- No monthly fees
- No minimum balance requirement
- Interest compounds daily
Cons
- No local branches
- Newer bank that launched in 2023
Best Combined Checking and Savings
SoFi Checking and Savings
Vault Verified
Why We Chose It
SoFi offers a convenient combined checking and savings account, and both let you earn interest on your balances. Its savings account has a generous 4.60% APY, while its checking account earns 0.50%. Considering most checking accounts don’t earn interest at all, this is an impressive rate.
Pros
- No monthly or overdraft fees
- No minimum balance requirements
- Can save for specific goals using the account Vaults feature
Cons
- Not a standalone savings product
- No local branches
Best Local Credit Union
Westerly Community Credit Union Diamond Savings Account
Vault Verified
Why We Chose It
If you prefer in-person banking and the community feel of a credit union, Westerly Community Credit Union is worth considering. Its Diamond Savings account offers generous rates of up to 3.75% APY on balances under $25,000, one of the best high-yield savings rates in Rhode Island.
Pros
- No minimum balance requirements or monthly fees
- Low initial deposit requirement ($25)
- Good APY
Cons
- Low APY (0.10%) for balances of $25,000 or more
- Fewer local branches and ATMs than some competitors
Best Local Bank
Washington Trust High-Rate Savings
Vault Verified
Why We Chose It
Washington Trust also offers one of the best high-yield savings rates in Rhode Island. This long-standing bank has a strong presence in Rhode Island, Massachusetts and Connecticut, including dozens of ATMs in the Ocean State. Its High-Rate Savings Account offers an APY of up to 3.00%.
Pros
- Low initial deposit requirement ($25)
- Relatively high APY
- Many ATMs and local branches in Rhode Island
Cons
- Doesn’t disclose potential fees or other features online
- APY isn’t the highest
How Much Can You Earn With a Savings Account in Rhode Island?
Interest earnings can really add up if you secure an account with the best high-yield savings rates in Rhode Island. But as you compare options, don’t consider rates in a vacuum; instead, look at potential savings account fees, too. High fees can negate any interest earnings you might get from a relatively high-rate savings account.
Here’s a look at what you can potentially earn from our best savings accounts in Rhode Island. Our examples assume you make a $10,000 deposit, and estimated earnings are calculated over one year with interest compounding annually (unless otherwise noted). Note that estimated earnings will vary depending on how frequently your bank compounds interest.
Bank Name | Savings Account | APY | Estimated Earnings |
Forbright Bank | Growth Savings | 5.30% | $530 |
Jenius Bank | Savings Account | 5.25% | $539* |
SoFi | Checking and Savings | 4.60% | $460 |
Westerly Community Credit Union | Diamond Savings Account | 3.75% | $375 |
Washington Trust | High-Rate Savings | 3.00% | $300 |
How to Open a Savings Account in Rhode Island
- Narrow down your options: Since savings account rates, features and requirements vary by bank and credit union, you’ll want to compare several options and decide on the best account for your goals.
- Gather required information: You’ll need to provide some basic personal information to open a new savings account, including your name, email, home address, phone number and Social Security number or Individual Tax Identification Number (ITIN.) You’ll usually need a photo of a government-issued ID, such as a passport or driver’s license, and you may need to provide proof of your address, such as a recent mortgage statement or utility bill.
- Complete an application: Many banks and credit unions let you apply for a savings account online, which is both simple and convenient. Have your required documents handy to streamline the application process.
- Await approval: While some financial institutions may approve your account within minutes, some take a few days to verify your information.
Tips for Choosing the Best Savings Account for You in Rhode Island
Everyone’s financial picture and goals are unique, so savings accounts—even those with 5%+ APYs—aren’t one-size-fits-all. Here are some tips for choosing the best savings account for you in Rhode Island.
Consider Your Needs
Before you compare accounts, decide what’s important to you. Some questions you should consider include:
- Do you want to bank online or in person?
- Does the bank have a mobile app and support mobile deposits?
- Is ATM accessibility important to you?
- How would you prefer to contact customer support?
Compare Rates
Rates vary widely across individual banks and credit unions. In general, online banks usually offer the highest rates, but this isn’t true in all cases. Local banks and credit unions may have high-yield savings account options, too.
For context, the average rate for savings accounts as of June 3, 2024 is 0.61%, per Bankrate data. Keep in mind that this is just an average, and many accounts offer rates of 4% or above. In rare cases, even savings accounts that earn 7% APY exist.
Research Potential Fees
As you compare different accounts, you’ll want to look into any potential fees that might apply. Common savings account fees include money maintenance, minimum balance, wire transfer and inactivity fees if you don’t use your account for a long period of time.
Ensure you read available data on rates and fees before proceeding with opening a new savings account. Not all banks clearly advertise this information online, but a bank’s or credit union’s customer service team should be able to give you these details if you call.
Look at Initial and Ongoing Deposit Requirements
Many banks and credit unions require a small initial deposit to open a new savings account, often $25 or $50. While initial deposits might be small, ongoing minimum balance requirements might also apply if you want to avoid monthly maintenance fees. For instance, your bank might require you to maintain an average daily balance of $500 or $1,000 to waive your monthly account fees.
Alternatives to a Savings Account
Savings accounts offer security and flexible access to your money, but they aren’t necessarily the best choice for everyone. Fortunately, you have other options if a savings account doesn’t sound like the right account for your situation.
Certificates Of Deposit
A certificate of deposit (CD) account is an excellent choice if you’re saving for a long-term goal. These accounts require that you deposit funds for a set time period, often a few months to a few years. In return, your bank or credit union will give you a fixed interest rate that’s often higher than you’d get with a typical savings account.
While CD accounts can be a smart long-term savings vehicle, they often have early withdrawal penalties. Ensure you understand account terms and potential penalties before opening a new CD.
Checking Account
Checking accounts may offer even more flexibility than savings accounts. While monthly transaction limits might apply with certain savings accounts, you generally won’t be subject to the same limits with a checking account. These accounts are an excellent choice if you’re seeking an account for your day-to-day expenses, as they often come with debit cards and check-writing privileges.
Checking accounts generally aren’t interest-bearing, though, so they aren’t a great option for growing your money. Fees might also apply, including overdraft or non-sufficient funds fees if you spend more than you have in your account.
Money Market Account
Money market accounts have some features in common with both savings and checking accounts. They have rates comparable to—and sometimes higher than—savings accounts, meaning you can earn decent interest on your balance. High minimum balance requirements and monthly transaction limits might apply as well.
Like checking accounts, money market accounts often come with check-writing privileges or debit card access. Just be careful not to exceed any transaction limits or fall below ongoing minimum balance requirements, though, as fees could apply. In general, a money market account could be a good alternative to a savings account for short- or medium-term savings goals.
Frequently Asked Questions
How Do Local Rhode Island Credit Unions Compare to National Banks for Savings Rates?
In general, local Rhode Island credit unions offer comparable deposit rates to national banks; the best high-yield savings rates in Rhode Island reach 3.00% APY or higher. However, it’s important to compare rates across different financial institutions if you’re thinking about opening a new account. Deposit rates vary by individual bank or credit union, with online banks offering some of the highest rates available.
Are There Specific Tax Benefits or Regulations for Savings Accounts in Rhode Island With High-Yield Interest Rates?
There are no specific tax benefits for high-yield savings accounts in Rhode Island. You should receive a 1099 from your bank or credit union detailing interest earnings for a given tax year, and those will be reportable when you file your taxes.
How Often Do Interest Rates Change for Savings Accounts in Rhode Island?
Even the accounts with the best savings interest rates in Rhode Island can change at any time. The same is true for deposit accounts in all states; there is no specific interval at which they fluctuate.