How to Compare Savings Accounts: A Side-by-Side Checklist

1. Start with the APY, not the interest rate

Banks can quote two different numbers: the interest rate and the annual percentage yield (APY). The interest rate is the base rate. The APY folds in how often interest compounds, so it shows what a balance would earn over a full year.

The federal Truth in Savings rules (Regulation DD, 12 CFR part 1030) define APY that way, and they say that if a bank's ad states a rate of return, it has to state it as an "annual percentage yield." Credit unions follow a matching NCUA rule (12 CFR part 707). So for a fair comparison, always put APY next to APY. If one page only shows an "interest rate," look for the APY in the account disclosure before you compare.

If you want the details on compounding, see our guides on what APY means and APY vs APR.

2. Ask whether the rate can change

Most savings and money market account rates are variable. The bank can raise or lower them after you open the account. CDs usually lock a rate for the term in exchange for an early withdrawal penalty.

Regulation DD requires the account disclosure for a variable-rate account to say that the rate can change, how it is set, and how often it can change. That section is worth reading. A rate tied to a stated index behaves differently from one the bank changes at its own discretion.

3. Read the conditions attached to the rate

This is where two accounts with the same headline APY can pay very different amounts. Look for three common conditions:

• Balance tiers. The top APY may apply only to part of your balance, or only above or below a set amount. See how tiered rates work.
• Activity requirements. Some banks pay the top rate only if you set up direct deposit or keep a linked checking account. If you miss the condition, a lower rate applies. See our breakdown of the direct deposit requirement.
• Time limits. Promo rates, new-money rates and bonuses often have start and end dates.

Regulation DD requires the disclosure to state the minimum balance needed to earn the advertised APY, if there is one. Search the disclosure for words like "tier," "minimum," "qualify," "eligible" and "promotional."

4. Check fees and minimum balances

A fee can wipe out a rate advantage fast, especially on a small balance. The account disclosure has to list fees and the minimum balance needed to open the account or to avoid a fee. Check for:

• Monthly maintenance fees and how to avoid them
• Minimum opening deposit
• Minimum daily or average balance rules
• Fees for outgoing wires, paper statements, or excess transfers
• Inactivity or account-closing fees

Also note how often interest compounds and is credited (daily, monthly). Some disclosures say that if you close the account before interest is credited, you lose the accrued interest. That matters if you plan to move money soon.

5. Check how fast you can get your money

Before April 2020, federal Regulation D limited many withdrawals and transfers from savings accounts to six per month. The Federal Reserve removed that requirement in 2020, but banks are still allowed to set their own limits, and many do. So the limit, if any, is now a bank policy you have to look up.

Compare these access points side by side:

• Any monthly cap on withdrawals or transfers, and the fee or action if you go over
• How long a transfer to an outside bank takes, and the daily or monthly dollar limits
• Whether you get an ATM card, checks or same-day transfers
• Whether the bank has a linked checking account for instant moves

If this is your emergency fund, speed matters as much as the rate.

6. Verify the insurance and who holds your money

FDIC insurance covers deposits at insured banks. The standard amount is $250,000 per depositor, per insured bank, for each account ownership category. NCUA share insurance covers members of federally insured credit unions with the same standard amount, $250,000, per share owner, per insured credit union, per ownership category.

1. Find the legal name of the institution. It is usually in the footer or the account agreement, not the app's brand name.
2. Look it up. For a bank, search FDIC BankFind. For a credit union, search NCUA's Research a Credit Union.
3. If it is an app or fintech, find the partner bank. FDIC insurance protects you if an insured bank fails. It does not protect you if a nonbank company in the middle fails. Our guide on checking a fintech's FDIC claim walks through this.
4. Count your total at that institution. Money you already hold at the same bank counts toward the same limit in the same ownership category.

7. Your side-by-side checklist

Copy this table into a note or print it. Fill in one column per account using each bank's own rate page and account disclosure. Write the date next to every rate, because variable rates change.

Then turn the rate rows into one number: the interest you would earn on your own balance.