New York Banking Rates

Five New York City Savings Account Options that Offer High Interest

New York Savings Account

Looking to start a New York savings account may seem a daunting task when you consider the sheer number of banks and the options they have available. Choosing the first option available to you may not always be the wisest course of action, as the interest rates vary based on type of account.

Here is a brief look at some of the most common types of savings accounts in New York City and what interest rates you can expect to pay on each.


Current New York Savings Account Options

There are five types of savings accounts for New York City residents that you’ll want to pay attention to most. Each has its own set of benefits and its own set of limitations.

Most financial institutions in the city will be able to offer you any of the types of accounts, though savings rates may vary from bank to bank, and depending on your credit history and the amount of money you’re looking to invest:

1. Basic New York Savings Account

A basic savings account in New York City usually pays the lowest interest of the savings choices available to you, but does have some advantages that other accounts might not offer. Savings accounts are safe and liquid — they don’t offer risks like some of the other types of accounts do, and are easy to make withdrawals from when you need the money. They usually don’t carry monthly fees and have low minimum balances (and in some cases may have none).

Usually, online banking and direct deposit are available with savings accounts, and they are insured by the FDIC or NCUA. However, if you do go below the minimum balance or your account goes inactive, there may be associated fees. Typical New York City savings accounts will earn between .70% and .90% interest.

2. High-Yield Checking Account

Though the rates are much higher than standard checking accounts, and even than some savings accounts, banks in New York City that offer these types of accounts will have some restrictions. You will have to keep a minimum balance, may have to use online banking and may have to have a credit or debit account associated with it. You may have to make a certain number of debits to avoid fees also. A typical high yield checking account in New York City will earn around 2% interest.

3. CD (Certificate of Deposit)

Most banks and credit unions in New York City will offer better interest rates on CDs than on savings accounts. However, they are less liquid than traditional savings accounts.

When you open a certificate of deposit, you usually have to agree not to touch the money for at least six months, and as long as five or six years. Usually, the longer term you agree to, the more money you make.

Like savings accounts, they are usually insured by the FDIC or NCUA. However, if you decide to withdraw the money before the CD matures, you will probably have to pay pretty high fines. The good news is that some New York City banks will offer CDs without penalty, as long as you are willing to accept a lower interest rate. Average CD rates in New York City are between .80% and 1%.

4. Individual Retirement Account (IRA)

Investing in individual retirement accounts in New York City is a great way to prepare for your family’s future. These types of accounts usually have higher interest rates and both long and short term options, depending on what your specific situation is.

As with certificates of deposit, there may be penalties for withdrawing money early, but knowing that you can rely on the money years down the road is often a good trade-off. If you’re looking to retire comfortably some day, investing in an IRA is a good option. Average IRA interest rates in New York City run right around 1%.

5. Money Market Account (MMA)

New York money market accounts are great for people who have high balances and are looking to get rewarded for tucking away larger sums. Higher balances earn higher interest rates in a tiered interest system. Normally, you must deposit a higher sum to start with, but the rates may be as good as CD interest rates.

New York City bankers will often recommend these types of accounts because they are more fluid than CDs or IRAs. You are limited in the number of withdrawals you can make each month, but you can use the account as a checking account because you are able to write checks or transfer money without penalty. In New York City, MMAs earn an average of .70% to 1% interest.

In addition to his other activities, Chad Fisher blogs for the team at, who believe that financial literacy is universally important.