Best Savings Account Interest Rates In Rhode Island: June 2024 (2024)

Vault’s Viewpoint: Overview of the Best Savings Interest Rates In Rhode Island

Best Online Savings

Forbright Bank Growth Savings

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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

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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.

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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

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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

See Also

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Best Local Credit Union

Westerly Community Credit Union Diamond Savings Account

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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

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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.

How to Open a Savings Account in Rhode Island

1. 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.
2. 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.
3. 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.
4. 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.