Savings Accounts

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Savings Account Fulton Bank.

These accounts are typically offered online, whether by an internet-only bank or a brick-and-mortar institution, based on the idea that it makes good money sense to hold your savings wherever it can earn a competitively high yield rather than limit yourself to your primary bank or local institutions. This doesn't mean you need to change where you hold your checking account. It's true that Americans have typically held both their checking and savings accounts at the same bank or credit union, and the majority still do, since the ease and speed of moving money between two accounts at the same institution can't be beat. But that model is being increasingly challenged by high-yield savings accounts, which offer dramatically higher interest rates in exchange for holding your savings at a separate bank.

Minimum initial deposit: Any Minimum ongoing balance: $0 Monthly fee: None ATM card: No Mobile check deposit: Yes Checking accounts available: Yes CDs available: Yes

Are High-Yield Savings Accounts Safe?

One reason is that the banks offering high-yield savings accounts are often a different breed of bank. Many are internet-only operations, which have lean budgets due to their not having any physical branches to build, staff, operate, and maintain. They may also offer an extremely limited product line. Indeed, some online banks offer only a high-yield savings account as their sole product. This differs from the full-service brick-and-mortar model many are used to, where you can get checking and savings accounts, certificates of deposit (CDs), a credit card, auto and home loans, and more—all from the same institution.But traditional banks are also moving into the high-yield savings account market. Most commonly, they do this by operating a separate online-only spinoff to serve customers nationwide, though a few simply offer a high-yield savings account within their regular array of products. A second reason high-yield savings account rates are possible is that these accounts offer limited features. Electronic statements will often be mandatory or a fee-charged if you opt for paper statements. And an ATM card often isn't available. While some will have an app offering mobile check deposit, others will limit all inflows and outflows to electronic transfers to and from an external bank.