How The Pandemic Has Affected Bank Branches
With the coronavirus pandemic forcing millions of Americans to do their banking online, banks’ physical branches have been noticeably left empty.
As a result, many of the major financial institutions have closed branches nationwide to save on operating costs and encourage customers to start using their mobile and web services.
Though you will likely see more banks curtailing their physical footprint in the years ahead, these branch closures shouldn’t deter you from opening an account with a brick-and-mortar bank. The ones with the most physical locations still have a presence and you can count on their massive ATM networks to still be largely available.
Which Do You Think Is Best
First Tennessee Bank Review: Account Good for You?
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Experts’ Advice On Choosing The Best Bank
To learn more about what makes a good online bank and how to choose the best fit, four experts weighed in:
- Tania Brown, certified financial planner at SaverLife
- Roger Ma, certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life“
- Mykail James, MBA, certified financial education instructor, BoujieBudgets.com
- Laura Grace Tarpley, associate editor of banking, Personal Finance Insider
We’re focusing on what will make a bank most useful, including fees, interest rates, accessibility, and more. Here’s what they had to say about banking online.
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Who Should Have A Savings Account
Most consumers would benefit from having an emergency fund and additional savings. Some banks make it easy by allowing consumers to open multiple savings accounts for different savings goals.
A savings account should be a part of a diverse portfolio that also includes CDs for locking away money for longer terms, as well as the best investments to build your retirement nest egg. As a general rule, savings accounts are for money that you may need in the short term and that you dont want to expose to any risk that could cause you to lose any principal. CDs are generally better suited for money that can be left untouched for one, three or five years, since CDs typically charge penalties for early withdrawals.
Savings accounts arent for everyone, including those who arent able to maintain any minimum balance requirement that may result in fees.
What Is A Savings Account
A savings account is a type of financial account found at both banks and credit unions. These federally insured accounts typically pay interest, but often at lower rates than other interest-bearing financial products insured by the government, like certificates of deposit .
In exchange for lower rates, savings accounts offer more liquidity, allowing for up to six types of withdrawals or transfers per statement cycle . That makes savings accounts ideal for stashing money you may need access to if unexpected costs arise.
Savings accounts can play a crucial role in your financial health. Unlike a CD, which forces you to lock up your money for a specified period of time, theres no set term for maturity with a savings account. So, its a good spot to park your emergency fund.
Savings accounts are insured up to at least $250,000 at banks backed by the Federal Deposit Insurance Corp. and at credit unions backed by National Credit Union Administration , which operates and manages the National Credit Union Share Insurance Fund .
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Certificates Of Deposit : Regions Cd
A regular CD comes with most of the same features as a Promotional CD, outlined above. This includes automatic renewals, flexible interest disbursements and interest compounded daily. Again, having a Regions checking account can qualify you for Relationship Pricing rates. To find out the Standard Pricing rates in your area, youll need to contact a customer service representative at the bank.
The main difference between a Promotional CD and a regular CD is the interest rates. The Promotional CDs earn at much higher rates for similar term lengths. However, another difference is that youll have to deposit at least $10,000 into a Promotional CD to start earning at those high rates. A regular Regions CD has two much lower deposit requirements, depending on the CD term.
Average Money Market Account Rates
The rate on money market accounts tends to be somewhat higher than the rates offered on regular savings accounts. Banks attach better APYs to these accounts because they generally require more money to open and more money to waive the monthly maintenance fees. Many banks also encourage customers to open multiple deposit accounts by offering boosted “relationship” rates on the money market accounts.
As with standard savings accounts, you can find online-only banks offering much better interest rates on money market accounts compared to those offered brick-and-mortar institutions. Typically, online money market rates average around 0.30% for all balances, which is much better than the national average of 0.09% APY.
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Pensacola Florida Savings Rates 2022
Certain rates on this table are from BestCashCow.com advertisers. Compensation may impact the order in which rates appear.
This is to inform our readers that BestCashCow has received compensation for the placement of this bank offer.
If you have your savings dollars in a big bank or a bank with low savings rates, then you are losing money. We’ve found FDIC insured banks that will pay you more. Take a few minutes to explore the options below and see how you can boost your savings by more than 6X the national average rate. There is competition for your money. Take advantage of it!
Pensacola, FL – September 10, 2022
Savings Account National Average Rate: 0.10%?
BestCashCow strives to maintain the most accurate rates.If you believe a rate is not accurate, please .
Advantages Of Local Savings Or Money Market Accounts:
- Higher interest rate than a checking account, usually.
- Personal service and interaction. Unlike an online account you are building a relationship with your banker by opening it in a branch.
- Online access. Often, depending on the size of the bank, banks enable transactions and deposits to be performed online or through a mobile application.
- Liquidity. Depositors can withdraw their money at any time.
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Regions Bank Lifegreen Preferred Checking Account
- APY: 0.01% on all balances
- Minimum opening deposit: $50
- Monthly fee: $18
- ATM access: Two free non-Regions ATM withdrawals per month
Although the LifeGreen Preferred Checking account pays interest, its hardly worth opening for that reason. The APY currently sits at a meager 0.01%, and in exchange for that low rate, customers are asked to pay a whopping $18 monthly fee. To avoid this fee, you must have a $5,000 daily balance, an aggregated Regions deposit or loan balance of $25,000 or have a Regions home mortgage.
However, paper statements are free with this account, and it includes perks such as unlimited check writing a 50% discount on one safe deposit box rental with an additional 10% discount for auto debit from a Regions checking, money market or savings account and no fee for cashiers checks and money orders.
Regions Bank charges overdraft fees of $36 for its checking accounts, up to a maximum of five times per day.
- Monthly fee: $11
- ATM access: No Regions fee at two non-Regions ATMs per month with military ID
The LifeGreen Preferred Checking account sets a pretty high bar when it comes to the amount needed to avoid a monthly fee. For those with lower deposit balances, the LifeGreen Checking account might be the better choice. This account has a lower monthly fee and requires either a $1,500 account balance, $1,000 in combined direct deposits or at least one direct deposit of $500 or more to avoid the fee.
What Other Savings Options Does Regions Bank Offer
- LifeGreen Savings. This account has no or minimum balance requirement and lets you earn an annual 1% savings bonus if you set up recurring deposits, but theres a monthly fee if you dont have a Regions checking account.
- Regions Savings. This no-frills savings account requires a minimum opening deposit of $50, and theres a $5 monthly fee if you dont maintain a minimum daily balance of $300.
- Regions Now Savings. This free savings account has no minimum balance requirement, but its only an option for customers who have a prepaid Regions Now debit card.
- Regions CDs. Open a Regions CD with terms ranging from 7 to 89 days for $2,500, or get terms ranging from 3 to 72 months with deposits of $500 or more. But APYs arent impressive, and you cant open a certificate online.
- Regions Promotional CDs. Earn up to with this CD, but you must have a Regions checking account and a $10,000 minimum opening deposit is required.
- Regions Money Market Account. This basic money market account only requires $100 to open, but youll need to maintain a minimum daily balance of $2,500 to avoid the $12 monthly fee.
- Regions Premium Money Market Account. Earn a better interest rate than Regions Money Market account, but youll need to either maintain a minimum daily balance of $15,000 or open a LifeGreen Preferred Checking account to avoid the $15 monthly fee.
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What Should Someone Look For In A Brick
Tania Brown, CFP:
“How can that bank grow with you? If you are 25, single or newly married, and all you need is a checking account, that’s going to look very different 15 years from now when you may have had a couple of jobs, you may have an IRA roll over, or you may want a financial adviser.”
Mykail James, CFEI:
“How accessible it is. So where are the branches? And if I am to go out of town or something, how accessible is my money to me?”
What Are The Different Types Of Savings Accounts
Generally speaking, there is only one type of savings account. Some savings accounts may be called high-yield savings accounts but that doesnt necessarily mean that they offer higher yields. Money market accounts also fall under the official definition of savings deposit accounts.
Some banks may also offer special savings accounts for children, while other institutions may one one account for everyone but allow accounts to be titled as custodial savings accounts.
Here are some possible titling options to designate the owner of a savings account:
Not all savings accounts are created equal. Many online banks, for example, pay higher yields than their brick-and-mortar counterparts. When choosing a savings account, consider APY, minimum deposit requirements and your financial goals. The best savings accounts should provide a competitive APY, but also give you the flexibility to securely withdraw or transfer money each statement period.
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Compounding And Crediting Interest
Interest is compounded daily and paid monthly, quarterly, semi-annually, annually, or at maturity, depending on your term. If a certificate is 1 year or more, interest is credited quarterly back into it unless youve asked for these payments to be disbursed to another checking or savings account in which case you may choose the disbursement frequency.
How Regions Banks Cd Rates Compare To Other Banks
When you compare CD rates from other banks, youll find that interest rates at Regions Bank are quite low. Rates do compare favorably to other regional banks like Fifth Third Bank, but that doesnt change the fact that they are low. You can get the most competitive rates from Regions Bank by opening a promotional CD, but the $10,000 minimum is prohibitive for many.
A bank like Capital One has no minimum deposit for its CDs and has higher interest rates than Regions Bank. Capital One has physical locations, which means you can still visit a local branch if you have any questions or issues. One important note is that Capital One only offers CDs ranging from six months to five years in term length.
is another bank with high rates and an account minimum of just $500. Marcus also has a six-year CD offering. This is not as long as Regions Banks longest CD, but the interest rate is about four times higher.
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Regions Bank Account Features
Regions Bank offers a wide variety of bank accounts from a simple savings account to a Promotional CD with competitive interest rates. Unfortunately, the banks other accounts offer some of the lowest rates out there. If you do open an account with Regions, youll have access to online and mobile Banking as well as over 1,500 branches and just under 2,000 ATMs. The website even has an Insights section to provide customers with tools and tips for money management.
The bank also offers the opportunity to participate in a couple rewards programs, Relationship Rewards® and the Cashback Rewards® programs, when you have a checking account. These programs allow you to earn cash and points rewards through your everyday spending.
We Hope To See You Again Soon
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Regions Lifegreen Savings Features
This account comes with most of the usual features youd expect in a savings account.
That includes online and mobile account management, which is convenient.
You can also link your savings account to a Regions checking account as overdraft protection.
If you need to keep documents secure, a LifeGreen Savings account can come in handy.
You can get a 30% discount on one safe deposit box rental per account.
There’s an extra 10% discount when you set up auto-debit of the annual fee through your Regions checking account.
Checking Account For Students
If youre 25 or younger, you can open a LifeGreen Checking account specifically designed for students. The account is exactly the same as the standard LifeGreen Checking account but has no monthly fee.
Just keep in mind that once you turn 26, the account automatically converts from the student checking account to the standard account, and youll be subject to fees.
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Saving For Something Extra Special
You might want to open an Additional Personal Savings Account that allows you to save for something outside your normal realm of savings. And we invite you to call it whatever you want, like your Beach Within Reach Account or your University of Savings Account or your Brand Spanking New Car Account. With an Additional Personal Savings Account, youll be able to keep the funds for the special things youre saving for in their own special place. And just like our regular Personal Savings Account, it earns the same competitive dividends and is accessible through Online Banking and through our many .
Check to see just how close you are to that beach vacation or new car with our free Savings Calculators.
Regions Bank Relationship Benefits
Regions Bank offers a variety of perks to customers who open more than one account with the bank. These include:
- Discounts on safe deposit boxes at Regions Bank branches
- Relationship rates on CDs
- Discounts on loans
- Cash back rewards on some purchases
This is a wider array of benefits than you normally see, so Regions Bank could be a good fit if you want to be rewarded for doing all your banking in the same place.
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Which Is Better A Brick
It depends on your priorities. If you value face-to-face banking, you’ll want a brick-and-mortar bank. Physical banks are also better for anyone who needs to deposit cash regularly with an online bank, you can usually deposit checks with your phone, but there’s no way to deposit cash.
Online banks are typically better for low fees and higher APYs, though. Because online banks don’t have to pay for physical branch locations, they can afford to charge less and pay more.