The Best Savings Accounts in South Dakota for 2024
South Dakota offers several options for consumers who want to maximize their savings by keeping funds in a savings account.
From local and regional banks and credit unions to national banks and online options, plenty of financial institutions are available to meet most banking needs.
Keep reading to learn which banks offer the best savings accounts for South Dakota residents.
The Best Savings Accounts in South Dakota
- Ally Online Savings
- CIT Bank Savings Connect
- Marcus by Goldman Sachs
- Varo Bank Savings
- First Dakota National Bank eSavings Account
- Consumer’s FCU Share Savings Account
Find Banks With the Best Savings Account Rates Fast
Compare the best savings accounts in South Dakota and find the top interest rates.
Online Savings Accounts Available in South Dakota
Online banks typically offer competitive rates, low or no fees, and convenient modern money management tools.
Here are some of the best online savings account options for South Dakota residents.
Ally Online Savings
Ally online savings offers competitive rates without the hassle of monthly fees. The online-only bank also provides tools to help customers save towards life and financial goals.
Key Features
- Competitive interest rate on all balances
- Savings “buckets” to separate your savings into different financial goals
- Roundup and surprise savings tools to help grow your savings
- Highly rated mobile app
- Online and mobile account access
- 24/7 customer service support
Pros
- Well-above-average APY on all balances
- No minimum balance requirements
- No monthly maintenance fees
Cons
- No branch access
CIT Bank Savings Connect
CIT Savings Connect offers one of the better interest rates around. You can open a nearly fee-free account for just a $100 deposit, plus access your account from almost anywhere, thanks to online and mobile banking access.
Key Features
- Highly competitive APY
- Open an account with a low $100 deposit
- Open an account within minutes online
- Mobile and online account access
- Remote check deposit
Pros
- Highly Competitive APY
- No monthly maintenance fees
- Low minimum deposit requirement
Cons
- No in-person banking
- No ATM access
Marcus by Goldman Sachs
Marcus by Goldman Sachs is the online banking branch of Goldman Sachs.
The Marcus savings account is a top choice among online savings accounts because of its competitive interest rates and saver-friendly features.
Key Features
- High-yield interest earning on all balances
- No minimum opening deposit requirements
- No minimum ongoing balance requirements
- Online and mobile account access
Pros
- Higher-than-average APY
- No monthly maintenance fees
- Same-day transfers to other banks
Cons
- No physical branches
- No ATM access or debit cards
- No mobile check deposit
Varo Bank
Varo Bank savings offers high-yield interest rates and an opportunity to receive higher rates by meeting monthly deposit and account requirements.
As an online-only bank, Varo offers several modern banking tools to manage your money and maximize your savings.
Key Features
- Competitive APY with an opportunity to earn an even higher rate
- No monthly fees
- Save part of your paychecks through the Save Your Pay feature
- Build savings through the Save Your Change round-up tools
Pros
- Competitive APY
- Automatic savings tools
- No minimum deposit requirements
- No monthly service fees
Cons
- No bank branches
- Must open a Varo bank account to open a Varo savings account
- Minimum balance required to earn interest
- Must meet several requirements to earn the highest interest rate tier
A Look at Local South Dakota Banks
If online banking isn’t ideal or you prefer banking locally, South Dakota is home to several banks and credit unions.
Here are two of the best South Dakota banks for savings accounts.
First Dakota National Bank eSavings Account
First Dakota National Bank is home to several interest-earning savings accounts along with money market accounts, CDs, and checking accounts.
The First Dakota National Bank eSavings Account is the bank’s online-only savings account, featuring one of the bank’s highest interest rates.
Key Features
- Competitive interest rates on all balances
- Interest is compounded and credited quarterly
- The account is opened and managed online
- Automatic payment tools
- Direct deposit
Pros
- APY is higher than average
Cons
- May be able to find a higher APY at an online bank
- Monthly service fee
- $100 minimum balance requirement
- Fee for excessive withdrawals
Consumer’s FCU Share Savings
Consumer’s Federal Credit Union (FCU) is a community-chartered credit union servicing individuals who live or work in Gregory County, South Dakota. While its reach isn’t state-wide, the credit union’s Share Savings account earns a respectable interest rate for qualifying members.
Key Features
- Competitive interest rate on all balances
- NCUA-insured
- The credit union offers several other savings vehicles, including CDs, youth savings accounts, IRAs, and Christmas Club accounts.
Pros
- APY is higher than average
- Full-service credit union
Cons
- May be able to find a higher APY at an online bank
- Must live or work in Gregory County to be eligible for membership
- Only one branch location
How We Picked: Methodology
The best savings accounts in South Dakota were chosen by analyzing savings accounts offered by online, national, regional, and local banks serving major cities, including Sioux Falls, Rapid City, and Pierre.
We focused our analysis on savings accounts with low monthly maintenance fees, opportunities to waive these fees, ATM network availability, excess withdrawal fees, ease of online and in-app banking, interest rates, and more.
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 South Dakota banks directly to see what savings accounts they currently offer.
How to Choose a Savings Account in South Dakota
Finding the right savings account depends on your banking needs. The best savings accounts typically offer convenience and high interest-earning potential without pesky bank fees that can cut into your earnings. Consider the following factors when looking for the best savings account in South Dakota for you.
Interest Rate
Earning a great rate will grow your money faster. Shop around to find the best interest rates.
Pay attention to any balance requirements to earn interest and whether an account earns the same rate across all balances or has tiered interest rates based on your balance.
Fees
Earning a higher interest rate doesn’t mean much if you have to pay monthly maintenance or service fees.
Some South Dakota banks charge customers a monthly fee to maintain their accounts.
Look for any fees that could potentially offset the interest earned on the account.
Opening Deposit
Some banks require a specific initial deposit amount to open a savings account.
You may see ongoing balance requirements to avoid paying monthly fees.
Determine how much you plan to deposit and keep in a savings account and find a bank that lines up with your needs.
Access
How you manage your money may be just as important as the rate you’ll earn.
If you are comfortable banking online or on your phone, online banks offer 24/7 access and modern banking tools.
A local or national bank may be a better fit if you prefer in-person support.
Other Accounts Available
Many of the banks listed above offer more than just savings accounts.
Full-service banks offer banking products for various needs, like money market accounts, CDs, checking accounts, loans, and credit cards.
Where Can You Open a Savings Account in South Dakota?
Like many states, South Dakota has three primary options for opening a savings account.
Here’s a snapshot of each financial institution type.
Online Banks
Online banks generally offer better interest rates and lower fees.
With those benefits come some drawbacks, especially if you are used to traditional banks.
Most online banks don’t operate local bank branches. Some, but not all, offer ATM access.
Banks
Traditional banks provide more personalized service than online banks, but often with lower interest rates.
But brick-and-mortar banks of better for in-person support and local banking.
Credit Unions
Credit unions offer similar products and services as a bank but are member-owned non-profit organizations.
Membership offer requires a common bond such as an employer, living or working in a specific region or city, or belonging to a group or organization.
South Dakota Savings Accounts vs. CDs
Savings accounts aren’t the only bank products that earn interest.
Certificates of deposit or CDs also earn interest in exchange for keeping your funds in the bank. However, they work differently than a savings account.
Check out how these two banking products compare.
Minimum Deposits
Savings accounts may carry lower minimum deposit requirements than CD accounts.
Some banks allow you to open a savings account with $1 or no deposit.
CD accounts often require $500 or more to open.
Minimum Balance
Savings accounts may have minimum balance requirements customers must meet to avoid monthly fees or to earn interest.
CDs always carry a minimum balance requirement to earn interest.
Interest Rates
Savings accounts carry variable interest rates and can change at any time as the benchmark rates change.
Online banks typically offer higher rates than brick-and-mortar banks.
CDs carry fixed rates, meaning the rate won’t change for the entirety of the CD term. Some CDs, like bump-up or step-up CDs, allow you to increase the rate periodically during the term.
Withdrawals
Federal rules used to limit you to six withdrawals per month from bank accounts, but restrictions were lifted recently in part due to the pandemic.
Banks may impose their own limitations, though. Exceeding monthly limits could result in a fee.
Banks may impose an early withdrawal penalty for withdrawing funds before the CD reaches maturity. The penalty fee is generally a portion of the interest earned.
Best Uses
Savings accounts offer accessibility while still allowing you to earn interest.
They are a great option for storing an emergency fund or savings for other short-term goals.
CD terms range from a few months up to five or ten years, making them a better fit for medium or long-term goals.
Frequently Asked Questions (FAQs)
Depending on the bank or financial institution, you may be able to open a savings account online.
In some instances, you may have to visit a bank or credit union in person to open an account.
Bank accounts that earn interest include savings accounts, money market accounts, and CDs.
High-yield savings accounts often carry higher interest rates than other savings products depending on the bank.
To open a savings account, banks require proof of identification like a driver’s license or government-issued ID and a social security number.
If the account carries a minimum deposit, you may need to provide funds once the account is established.
