Now is a better time than ever to lock down a robust savings account. Compared to the 2010s, interest rates are high. For residents of Alabama, identifying accounts with the highest annual percentage yield (APY) can significantly enhance financial growth and stability.
Using data from the FDIC, we’ve been going state to state, identifying the best savings account rates in each state. This time around we’re looking at Alabama. By examining both regular savings and high-yield products, we hope to guide Alabamians towards making informed decisions that maximize their savings potential, ensuring their money works as hard as they do.
5 Best Savings Accounts Rates in Alabama
In order to get a list of banks in Alabama, we utilized the FDIC to generate a list of banks in every state, ranked by the amount in deposits they have. From there, we zeroed in on the banks that were local or regional to Alabama. With these banks, we then evaluated which ones had the best savings account rates.
Headquartered in Birmingham, Alabama, First US Bank offers a tantalizing high-yield savings account: But there’s a catch. With the NextGEN Savings account, you can get an APY of 5.12% — though on balances up to $500. Beyond that, it earns 0.05%, a fairly standard APY. Still, the account requires only $5 to open and there’s no minimum balance requirements nor monthly fees.
With over $323 million in deposits in Alabama alone, Investor Bank is medium sized. But it still manages to have the second highest APY of local and regional banks in Alabama. The bank’s E-Star savings account sports a 1.65% APY, with a minimum balance requirement of $2,501 to earn this. Less than that, you earn 0.01% APY. But above $25,000, you’ll earn 3.75% APY; and with a balance of $50,000.01 or more, you’ll earn a fantastic 4% APY. The minimum to open is $100, with a quarterly service charge of $15 if your balance falls below $200.
Based in Pell City, Alabama, Union State Bank has over $222 million in deposits. Founded in 1903, Union State is one of the oldest banks on our list of the best savings accounts in Alabama. With its basic savings accounts — Regulars Savings — you’ll earn an outstanding 0.5% APY. The Christmas Club account also earns 0.5% APY, as do its Silver Select, Checking with Interest, and Business Checking with Interest. With a standard Money Market account from Union State Bank, you can earn 0.75%.
Headquartered in Fort Collins, Colorado, the Bank of Colorado has three offices in Alabama, with a combined $493.3 million in customer deposits. With the savings account offered by Bank of Colorado, you’ll earn 0.25% APY, which is better than most savings accounts offered by the big banks. It takes only $25 to open this Noble Interest Savings account, plus no minimum balance requirement or monthly fees.
First Southern State Bank is headquartered in Stevenson, Alabama. This bank is on the larger side of banks catering solely to Alabama, having more than $720 million in customer deposits. With the bank’s Savings, you can get 0.25% APY, with a minimum deposit of $100. To avoid the $1 monthly service fee, make sure to maintain a minimum balance of $50. If you want to highest APY account, check out the 6-month CD account, which requires $500 to open and earn 5.06%.
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