The Best Savings Accounts in Iowa for 2024
Opening a savings account can help you to get closer to your goals. If you live in Iowa, you may be wondering what options you have for finding the best savings accounts.
The Iowa Division of Banking reports that since 2005, the number of banks in Iowa has been on the decline. Still, there are still plenty of places to save and earn a great interest rate on deposits.
Keep reading to learn where to find the best savings accounts in Iowa, including traditional banks, credit unions, and online banks.
The Best Savings Accounts in Iowa
- Barclays
- Marcus by Goldman Sachs
- CIT Bank
- American Express® National Bank, Member FDIC
- Bread Savings™
- Grinnell State Bank
- Community 1st Credit Union
Find Banks With the Best Savings Account Rates Fast
Explore savings accounts at online and traditional banks and find the best rate and terms for you. Compare rates, fees, and ATM access at some of the top banks below.
Online Savings Accounts Available in Iowa
Opening a savings account online has its advantages, including the opportunity to earn competitive rates with low fees. If you’re interested in online savings accounts, here are five banks that offer accounts in Iowa.
Barclays
Barclays is headquartered in Wilmington, Delaware, but it offers online savings accounts nationwide, including in the state of Iowa. The bank itself has a long history stretching back over three centuries.
Key features:
- Savers earn a competitive APY and interest rate
- Direct deposit makes it easy to add funds automatically
- No minimum balance is required to open an account
- No monthly maintenance fees
- Barclays Savings Assistant can help you reach your goals
- FDIC-insured savings
What we like: Opening a Barclays savings account online is quick and easy. You can also open CD accounts online if you’re setting aside money for more than one goal.
Pros
- Some of the top rates for savers
- No minimum balance requirement
- No monthly maintenance fee
Cons
- No ATM access for savings accounts
- Checking accounts not offered
Read More About Barclays Savings
Marcus by Goldman Sachs
Marcus is the online banking brand of Goldman Sachs. It’s established itself as one of the top online savings account options for savers who want to take advantage of high rates.
Key features:
- No fees and no minimum balance requirements
- Earn a competitive rate on savings balances
- Same-day transfers of up to $100,000 from other banks
- Customer support is available 24/7
- No minimum deposit or credit check is required to open an account
- FDIC-insured savings
What we like: In addition to high-yield savings accounts, Marcus offers CD accounts. You can also apply for a credit card or loan or open an investment account with Marcus.
Pros
- Competitive interest rates
- Multiple savings account options
- No monthly maintenance fee
Cons
- No mobile check deposit
- No ATM access for savings accounts
Read More About Marcus by Goldman Sachs Savings
CIT Bank
CIT Bank is an online banking division of First Citizens Bank. CIT offers high-yield savings accounts to Iowa savers along with certificate of deposit (CD) accounts.
Key features:
- Competitive rates
- Mobile check deposit for added convenience
- Online and mobile banking access
- No monthly service fees
- FDIC-insured savings
What we like: CIT stands out in terms of how rates compare to the national average savings rate and what’s offered at other online banks. And since you can open multiple account types, it’s possible to do your banking in one place.
Pros
- Competitive rates for savers
- Low minimum balance requirements
Cons
- No ATM access for savings account holders
- Online banking only
Read More About CIT Savings Accounts
American Express® National Bank, Member FDIC
American Express is perhaps best known as an issuer of charge cards and credit cards. But the bank also offers online savings accounts to Iowa savers.
Key features:
- Earn a competitive rate across all balances
- No monthly maintenance fees
- $0 to open
- Link up to three accounts for external transfers
- Online and mobile banking access
- Customer service is available 24/7 if you need help
- FDIC-insured savings
What we like: Iowa residents who have an American Express credit card or charge card might consider opening a savings account here for added convenience. You can also open CD accounts or an Individual Retirement Account (IRA) with American Express for more savings options.
Pros
- Highly competitive savings interest rate
- Open an account online in minutes in most cases
- No monthly fees or minimum balance requirements
Cons
- No ATM or debit cards are offered with savings accounts
- No checking account option
Read More About the American Express National Bank Savings Account
Bread Savings™
Bread Savings is designed for people who want a simple savings account option that earns a great rate. Iowa savers may know Bread by its former name, Comenity Bank.
Key features:
- Earn some of the best rates on savings and CDs of any online bank
- No hidden fees
- Low minimum opening deposit
- Online and mobile banking access
- Mobile check deposit
- FDIC-insured savings
What we like: A Bread Savings account could be a fit for Iowa residents who want to get the best rate possible on savings. You’ll need at least $100 to open an account online.
Pros
- Well above average interest rates for savers
- No monthly maintenance fees
- Convenient online and mobile banking access
Cons
- Limited options for other bank accounts
- No ATM or debit card is offered with the savings account
Read More About the Bread Savings Account
A Look at Local Iowa Banks
In addition to online banks, Iowa residents may consider traditional banking options for saving. Local banks and credit unions can often be hidden gems, with some offering high rates to savers.
Here are two local banking options for Iowa.
Grinnell State Bank
Grinnell State Bank is headquartered in Grinnell, Iowa, and is the 60th largest bank in the state. The bank has four branch locations in Grinnell, Johnston, Marengo, and Polk City.
Key features:
- Earn a highly competitive rate that’s well above the national average
- No monthly fees on balances over $100
- Low $100 minimum deposit requirement
- Rates are tiered by balance
- Open an account online or at a branch
- FDIC-insured savings
What we like: In addition to personal savings accounts, Grinnell State Bank offers business savings accounts. You can also open checking accounts, CD accounts, investment accounts, and loans.
Pros
- Competitive rates
- Branch banking access
- No monthly fees on balances over $100
Cons
- Limited branch availability
- Fee applies to lower balances
Community 1st Credit Union
Community 1st Credit Union is a credit union based in central Iowa. The credit union has numerous branch locations across the Des Moines and Cedar Rapids areas.
Key features:
- Low minimum balance requirements
- Multiple savings account options to help you reach different goals
- Competitive rates
- Link your account to rewards checking for easy transfers
- Online and phone banking
- NCUA-insured deposits
What we like: In addition to savings accounts, Community 1st Credit Union offers rewards checking accounts, money market accounts, CDs, and IRAs.
Pros
- Low minimum deposit to open an account
- Great interest rates for savers
- Multiple branch locations
Cons
- Online account opening not available
- Membership requirements apply
How We Chose: Methodology
MoneyRates chose the best savings accounts in Iowa by analyzing savings accounts at online banks, local credit unions, national banks, regional banks, and local banks in the state. We looked at the most recent APYs being offered on savings accounts at over 25 banks, along with accessibility, requirements for opening and maintaining an account, fees, ATM access, flexibility, availability, and ease of use of mobile banking.
The best savings accounts reflect market conditions and bank APYs at the time of our analysis. Banks can and do change their rates and terms on a regular basis, so you should check with banks directly to see what they currently offer.
How to Pick a Savings Account in Iowa
Finding the right savings account comes down to what you need. As you’re looking for savings accounts in Iowa, here are some of the most important things to keep in mind.
Interest Rate
Getting a great rate on savings can help your money grow faster. One of the first things to consider is what rate you can earn and whether that rate is tiered or applies to all savings balances.
Fees
Savings accounts can have monthly fees or maintenance fees, not to mention excess withdrawal fees. Finding a savings account with as few fees as possible can ensure that you hold on to more of your interest earnings.
Opening Deposit
Some savings accounts can be opened with as little as $1, while others might require $100 or more to open. Looking at the opening deposit requirement can help you find savings accounts that fit your financial situation.
Other Accounts Available
In addition to a savings account, you might also be interested in opening a checking account, money market account, or CD account. Looking at everything a bank provides can help you decide if it’s a good fit for what you need.
Access
How you can access your money also matters. Your savings might be just for emergencies, but it helps to know that you can get your money when you need it. So consider whether a bank offers ATMs, branches, online banking, or mobile banking services.
Customer Service
When you need help or have questions, it’s good to know how you can get in touch with customer service. When comparing banks, look for options like phone support, email support, and live chat.
Account Management
Last, but not least, it’s important to consider what options you have for managing your savings. For example, does the bank offer a robust mobile banking app? Is the website easy to navigate? Can you bank by phone if necessary? All of those are good questions to ask when comparing savings accounts in Iowa or anywhere else.
Where Can You Open a Savings Account in Iowa?
There’s more than one banking option available for opening savings accounts in Iowa. You might consider online banks, traditional banks, and credit unions when deciding where to keep your money.
Online Banks
Online banks are banks that offer accounts online and typically have no or very few branch locations. You can open FDIC-insured savings accounts from your mobile device or laptop, and many online banks have low initial deposit requirements. Online banks can offer competitive rates to savers while charging fewer fees than traditional banks.
Banks
Traditional brick-and-mortar banks can offer savings accounts as well as other types of bank accounts and loans. These accounts can be FDIC-insured and earn interest, though the APY may be less than what you’d get at an online bank. You’re also more likely to pay a monthly fee for a savings account at a traditional bank.
Credit Unions
Credit unions are financial institutions that are owned by their members. There are usually membership requirements you have to meet to join. Credit unions can offer savings accounts as well as CD accounts, money market accounts, and checking accounts.
Iowa Savings Accounts vs. CDs
A savings account can be used to fund your short- or long-term financial goals, but you might consider a certificate of deposit account instead. CDs are time deposit accounts that earn interest over a set maturity term.
Iowa Savings Accounts vs. CDs
Minimum Deposits
Some high-yield savings accounts don’t have any minimum balance requirements, or they may set the minimum deposit at just $1. Others may require $100 or more to open.
CDs, on the other hand, almost always have minimum deposit requirements to earn interest. The minimum deposit may be $100, $500, $1,000 or more.
Withdrawals
Previous rules limited withdrawals from savings accounts to six per month. The federal government lifted that restriction, but banks may still limit savers to six withdrawals per month.
CDs require you to keep your money in the account for the full length of the maturity term. If you withdraw money early, you may trigger an early withdrawal penalty. This penalty may be equal to some or all of the interest earned.
Interest rates
Savings accounts usually have variable interest rates. That means the rate can go up or down over time, following changes in an underlying benchmark or index rate.
CDs, meanwhile, typically have fixed rates. So, you know how much interest you can earn at the time you open the CD based on the rate, the amount you deposit, and the CD term.
Best Uses
Savings accounts offer flexibility since you can access them at virtually any time. That makes a savings account a good option for holding your emergency fund or a vacation fund. Keep in mind that making excessive withdrawals from savings might result in a fee.
With CDs, your money is locked in for the full maturity term. You may want to reserve CDs for long-term savings goals when you don’t think you’ll need the money any time soon.
Minimum Balance
Some savings accounts have no minimum balance requirements. Those that do may allow people to begin earning interest with $100 or less.
CDs, however, usually have some type of minimum deposit requirement you need to meet before you can earn interest.
Frequently Asked Questions (FAQs)
The best savings account in Iowa is the one that checks off all your boxes for interest rates, fees, and minimum balance requirements. Generally, online banks can offer the best combination of high rates and low fees. But don’t count out traditional Iowa banks if you’d like to have branch banking access.
There are plenty of online banks that allow you to open savings accounts online in the state of Iowa. To open an online savings account, you’ll need to provide some basic information about yourself. You’ll also need to link an external bank account to make your initial deposit.
A bank and a credit union can both offer savings accounts, but you may prefer one over the other. With banks, there are no membership requirements to open an account. With credit unions, there are. Both can offer the same types of accounts, though credit unions may offer better rates on savings than traditional banks.
