Savings accounts have long been a reliable and secure way to park money while earning interest. But in today’s digital age, traditional brick-and-mortar banks are no longer your only option. With the rise of online banking, there are now high-yield savings accounts, like the one Beem offers, that come with attractive interest rates, flexibility, and convenience.
According to data from the Iowa Division of Banking, there has been a consistent decline in the number of banks in Iowa since 2005. However, despite this trend, there remain numerous options for individuals to save their money and earn competitive interest rates on their deposits. In this article, we’ll explore the concept of a high-yield savings account in Iowa and take a closer look at Beem, one of the notable options available to residents of the state.
The Best Savings Account in Iowa
High-yield savings accounts are financial products designed to help you grow your savings more effectively than traditional savings accounts. These accounts typically offer interest rates significantly higher than those found at brick-and-mortar banks. The primary difference lies in the lower operating costs of online banks, which allow them to pass on higher interest rates to their customers.
- Barclays
- Marcus by Goldman Sachs
- CIT Bank
- American Express® National Bank, Member FDIC
- Bread Savings™
- Grinnell State Bank
- Community 1st Credit Union
Online High-yield Savings Accounts in Iowa
While Iowa offers various local banks and credit unions that provide high-yield savings accounts, online banks have gained popularity for their competitive interest rates and accessibility. Some of the well-known online high-yield savings accounts available in Iowa include:
Ally Bank: Ally offers a high-yield savings account with a competitive interest rate and no monthly fees. Their user-friendly online platform allows you to manage your money with ease.
Marcus by Goldman Sachs: Marcus provides a high-yield online savings account with competitive rates and no fees. They are known for their excellent customer service.
Discover Bank: Discover’s high-yield savings account offers competitive interest rates and a variety of banking products, including checking accounts and certificates of deposit (CDs).
Beem: High-yield Savings
One noteworthy high-yield savings account option available to Iowa residents is Beem. It is a smart online bank and wallet that has garnered attention for its attractive interest rates and user-friendly features. Here’s what makes Beem an excellent choice for those in Iowa looking to maximize their savings:
- Competitive Interest Rates: Beem offers competitive interest rates that can outperform many traditional banks. These rates make it an attractive option for individuals looking to earn more on their savings.
- No Monthly Fees: Beem does not charge monthly maintenance fees. This means that you can enjoy the benefits of a high-yield savings account without worrying about recurring costs eating into your earnings.
- Easy Online Access: Beem provides a user-friendly online platform, making it simple to access and manage your account. With features such as mobile apps and web banking, you can easily check your balance, transfer funds, and set up automatic savings plans.
- FDIC Insurance: Beem accounts are FDIC-insured up to the maximum limit, ensuring the safety of your funds.
- Customer Service: Beem prioritizes customer satisfaction and offers responsive customer support to assist with any questions or concerns.
How to Get Started with Beem
Opening a Beem high-yield Savings Account is a straightforward process:
- Visit the Beem website or download the mobile app.
- Click on the “Open an Account” or “Get Started” button.
- Provide the required personal information, including your name, address, Social Security number, and employment details.
- Fund your account, either by linking an external bank account or making a deposit via check or wire transfer.
- Begin earning high-yield interest on your savings!
Barclays
Barclays is a British multinational investment bank and financial services company headquartered in London, England. Barclays is one of the largest banks in the world, and it offers a variety of financial products and services, including savings accounts, checking accounts, credit cards, loans, and mortgages.
Barclays Savings Pros & Cons
| Pros | Cons |
| Competitive interest rates | Limited physical branch presence |
| Established, reputable institution | No cash deposits |
| Online access and mobile app | Limited bonus promotions |
| No monthly maintenance fees | May have account minimums |
| FDIC insured | Limited account types |
Marcus by Goldman Sachs
Marcus by Goldman Sachs is the online consumer banking division of Goldman Sachs, one of the world’s leading investment banks. Marcus by Goldman Sachs offers a variety of financial products and services, including savings accounts, high-yield certificates of deposit (CDs), and personal loans.
Marcus by Goldman Sachs Savings Pros & Cons
| Pros | Cons |
| High-yield savings accounts | No physical branches |
| No fees | Limited account types |
| No minimum deposit requirements | Limited banking services |
| Online access and mobile app | No ATM access |
| FDIC insured | No cash deposits |
CIT Bank
CIT Bank is a division of CIT Group, a financial holding company that provides financing and advisory services to the middle market. CIT Bank offers a variety of financial products and services, including savings accounts, CDs, and money market accounts.
CIT Bank Savings Pros & Cons
| Pros | Cons |
| Competitive interest rates | No physical branches |
| Range of savings account options | Limited account types |
| No monthly maintenance fees | No ATM access |
| No minimum deposit requirements | Limited banking services |
| High-yield CDs available | No cash deposits |
| FDIC insured | Limited bonus promotions |
American Express National Bank
American Express National Bank, Member FDIC, is the issuer of American Express credit cards. American Express National Bank also offers a variety of other financial products and services, including savings accounts, CDs, and personal loans.
American Express National Bank Savings Pros & Cons
| Pros | Cons |
| High-yield savings accounts | No physical branches |
| No fees | Limited account types |
| No minimum deposit requirements | No ATM access |
| Online access and mobile app | No cash deposits |
| Competitive interest rates | Limited banking services |
| FDIC insured | Limited bonus promotions |
Bread Savings™
Bread Savings™ is a high-yield savings account offered by Bread Financial, a fintech company that provides credit and payment solutions to consumers and merchants. Bread Savings™ offers a competitive interest rate and no monthly fees.
Bread Savings Pros and Cons
| Pros | Cons |
| Competitive APY | Low introductory rate |
| Online and mobile banking | No physical branches |
| No monthly maintenance fees | ATM fees may apply |
| FDIC insured | Limited account options |
Grinnell State Bank
Grinnell State Bank is a community bank headquartered in Grinnell, Iowa. Grinnell State Bank offers a variety of financial products and services, including savings accounts, checking accounts, loans, and mortgages.
Grinnell State Bank Pros and Cons
| Pros | Cons |
| Community bank | Limited branch network |
| Excellent customer service | Lower APY compared to online banks |
| Various savings account options | Minimum balance requirements |
| Online banking and mobile app | Potential fees for certain services |
Community 1st Credit Union
Community 1st Credit Union is a credit union headquartered in Waterloo, Iowa. Community 1st Credit Union offers a variety of financial products and services to its members, including savings accounts, checking accounts, loans, and mortgages.
Community 1st Credit Union Pros and Cons
| Pros | Cons |
| Member-owned cooperative | Limited branch network |
| Competitive savings account rates | Potential membership requirements |
| No or low fees | Fewer account options |
| Community-focused | Limited accessibility outside the community |
Hills Bank
Hills Bank is a community bank headquartered in Hills, Iowa. Hills Bank offers a variety of financial products and services, including savings accounts, checking accounts, loans, and investments. Hills Bank is known for its customer service and commitment to the community.
Hills Bank Pros and Cons
| Pros | Cons |
| Local bank with physical branches | Lower interest rates compared to online banks |
| Active in the community | Some fees may apply |
| Various account options | Limited online banking features |
| Personalized service | Limited accessibility outside their region |
United Bank of Iowa
Great Western is a community bank headquartered in Grinnell, Iowa. Great Western offers a variety of financial products and services, including savings accounts, checking accounts, loans, and investments. Great Western is known for its customer service and commitment to the community.
United Bank of Iowa Pros and Cons
| Pros | Cons |
| Local Community Bank | Limited branch and ATM network |
| Personalized Service | May offer fewer online features |
| Strong Customer Base | Potentially lower interest rates |
| Likely familiar with local market | Limited nationwide access |
| Potential for better customer relationships | Limited account options |
Great Western Bank
United Bank of Iowa is a community bank headquartered in Des Moines, Iowa. United Bank of Iowa offers a variety of financial products and services, including savings accounts, checking accounts, loans, and investments. United Bank of Iowa is known for its customer service and commitment to the community.
Great Western Bank Pros and Cons
| Pros | Cons |
| Larger branch and ATM network | May offer fewer personalized services |
| Online Banking Features | Less local and community focus |
| Potentially competitive interest rates | May not be as familiar with local markets |
| Nationwide presence | Possible limited customer service |
| Diverse account options | Could be more focused on profits than community |
How We Picked: Methodology
Selecting the right savings account is a crucial financial decision, and it’s particularly important to choose one that aligns with your financial goals and needs. With numerous options available, it can be challenging to identify the best savings account in Iowa. To help you make an informed decision, we’ve developed a methodology that considers various factors to find the account that’s right for you.
1. Interest Rates (APY)
The first and perhaps most critical factor to consider when choosing a savings account is the Annual Percentage Yield (APY). The APY determines the interest your savings will earn over time. Generally, the higher the APY, the more your money will grow. Online banks often offer more competitive rates compared to traditional brick-and-mortar institutions due to their lower overhead costs. As a result, we prioritize accounts with competitive APYs.
2. Fees and Minimum Balances
No one likes to pay unnecessary fees, and that’s why we take a close look at the fee structure of savings accounts. Some accounts may charge monthly maintenance fees, excessive withdrawal fees, or low balance fees. We consider accounts with minimal or no fees and reasonable minimum balance requirements, making it easier for you to keep more of your savings.
3. Accessibility and Convenience
Accessing your savings is an essential aspect of any savings account. Consider the convenience of banking, including online access, mobile apps, and ATM access. Online savings accounts may offer excellent interest rates, but if you prefer in-person banking, you may want to choose a local institution with branches in Iowa.
4. FDIC Insurance
Safety is paramount when choosing a savings account. We prioritize accounts offered by banks that are members of the Federal Deposit Insurance Corporation (FDIC). This insurance protects your deposits up to $250,000 per account, ensuring the safety of your funds.
5. Customer Reviews and Reputation
Understanding the experiences of current and former customers can provide valuable insights. We take into consideration customer reviews, ratings, and the overall reputation of the bank. Positive feedback often indicates good customer service and satisfaction, which can be a significant factor in your decision-making process.
6. Special Promotions and Bonuses
Many banks offer special promotions to attract new customers. These promotions may include cash bonuses or higher interest rates for a limited time. We factor in these promotions to provide a comprehensive view of what each savings account offers.
7. Account Options
Consider your specific needs when choosing a savings account. Some accounts may offer specialized options such as high-yield savings, money market accounts, or certificates of deposit. We explore a range of account types to help you find the one that aligns with your goals.
8. Local vs. National Institutions
Decide whether you prefer a local community bank or a national banking institution. Local banks often offer a more personalized approach and may be more in tune with the local market. National banks, on the other hand, may provide a broader range of services and a more extensive ATM network.
Choosing the best savings account in Iowa involves careful consideration of various factors, including interest rates, fees, accessibility, safety, customer satisfaction, and account options. We recommend that you thoroughly research your options, read the fine print, and compare different savings accounts to ensure you select the one that best suits your financial goals and preferences. By following our methodology, you can make an informed decision that will help your savings grow and meet your financial objectives.
How to Choose a Savings Account in Iowa
Choosing a savings account is a crucial financial decision that can impact your ability to save and grow your money over time. In Iowa, as in any other state, you’ll find a variety of banks and credit unions offering savings accounts. To help you make an informed choice, we’ll walk you through on how to choose the right savings account in Iowa.
1. Account Options
The first step in selecting a savings account in Iowa is to consider your specific financial needs and goals. Determine the type of account that suits you best. Standard savings accounts are a common choice, but you may also want to explore other options like money market accounts or certificates of deposit (CDs). Money market accounts often offer higher interest rates than regular savings accounts, while CDs provide fixed, higher interest rates for a specified term.
2. Fees
Fees can eat into your savings, so it’s essential to be aware of them. Look for a savings account with minimal or no monthly maintenance fees. Some accounts may charge fees if your balance falls below a certain minimum, so make sure to understand these requirements. Additionally, check for fees associated with excessive transactions or ATM usage.
3. Opening Deposit
Consider your initial deposit. Some banks require a substantial amount to open a savings account, while others may allow you to open an account with a more modest sum. It’s essential to find an account that aligns with your financial situation.
4. Access
Think about how you’ll access your savings. Many people prefer online banking for its convenience, but if you want the option of in-person visits to your bank, consider this when choosing your bank or credit union. In Iowa, you’ll find both large national banks with extensive ATM networks and smaller community banks with a more localized presence.
5. Customer Service
Customer service is a crucial aspect of any banking relationship. Read reviews and gather information about the customer service reputation of the banks you’re considering. Some banks and credit unions are known for their exceptional customer service, which can be a significant advantage, especially if you value personalized assistance.
6. Interest
Interest rates are a primary factor in choosing a savings account. Look for a high annual percentage yield (APY) as it will directly impact the growth of your savings. Online banks often offer competitive rates because they have lower overhead costs compared to brick-and-mortar institutions. Keep in mind that interest rates can change, so it’s essential to monitor your account’s rate over time.
7. Account Management
Consider how you plan to manage your savings account. Most banks offer online banking, mobile apps, and other tools to help you monitor and manage your account. Check for features like mobile check deposit, automatic transfers, and bill payment options to make managing your savings as convenient as possible.
Where Can You Open a Savings Account in Iowa?
Opening a savings account in Iowa is a fundamental step in securing your financial future. But with a variety of options available, it’s essential to choose the right type of institution for your savings needs.
In Iowa, you have three primary choices for opening a savings account: traditional banks, online banks, and credit unions. Each option has its own set of advantages and considerations.
Traditional Banks
Traditional banks, often referred to as brick-and-mortar banks, are the institutions that most people are familiar with. They have physical branches you can visit, and they offer a range of financial services, including savings accounts.
Here are some of the pros and cons of choosing a traditional bank in Iowa:
Pros
- Local Presence: Traditional banks like Wells Fargo, US Bank, and Bankers Trust have branches across Iowa, making it convenient for in-person transactions and customer support.
- In-Person Service: You can visit your local branch for face-to-face interactions with bank representatives, which can be reassuring for many customers.
- ATM Network: Traditional banks often have a more extensive ATM network, providing easy access to cash.
Cons
- Lower Interest Rates: Traditional banks typically offer lower interest rates on savings accounts compared to online banks and credit unions.
- Higher Fees: They may charge higher fees for account maintenance, overdrafts, or other services.
- Limited Convenience: While they offer in-person service, traditional banks may not have the same level of online and mobile banking features that online banks provide.
Online Banks
Online banks operate entirely over the internet, without physical branches. They have become increasingly popular due to their competitive interest rates and modern banking features.
Consider these factors when thinking about online banks:
Pros
- High-Interest Rates: Online banks are known for offering some of the best interest rates on savings accounts, thanks to their reduced overhead costs.
- Lower Fees: Many online banks have minimal or no fees for account maintenance and transactions.
- Convenience: Online banks provide easy access to your accounts via web and mobile apps, making banking more convenient.
Cons
- Lack of In-Person Service: You won’t have face-to-face interactions with bank representatives, which can be a drawback for those who prefer in-person service.
- No ATM Network: Online banks often do not have physical ATMs, but they may reimburse ATM fees incurred at other banks’ ATMs.
- Less Personalized Service: Online banks may not provide the same level of personalized service you’d find at a local branch.
Credit Unions
Credit unions are not-for-profit financial cooperatives that are owned and operated by their members. They often offer competitive rates and a focus on community involvement.
Here are the pros and cons of choosing a credit union in Iowa:
Pros
- Community Focus: Credit unions are often deeply rooted in the local community, offering a personalized approach to banking.
- Competitive Rates: Credit unions frequently provide competitive interest rates on savings accounts.
- Member-Centric: As a member, you have a say in how the credit union is run, and you may benefit from profit-sharing.
Cons
- Limited Branch and ATM Network: Credit unions typically have a smaller branch and ATM network, which can be less convenient for those who travel frequently.
- Membership Requirements: You may need to meet specific eligibility criteria to join a credit union.
- Online Services Vary: The quality and breadth of online services can vary among credit unions.
In Iowa, where to open a savings account ultimately depends on your preferences and financial goals. Traditional banks are suitable for those who prefer face-to-face interactions and access to a physical branch, while online banks are ideal for those seeking higher interest rates and convenient online access.
Credit unions are a great choice for those who value community involvement and a more personalized approach to banking. Regardless of your choice, remember to compare account features, interest rates, and fees to find the savings account that best suits your needs.
Conclusion
In conclusion, choosing a high-yield savings account in Iowa is a crucial financial decision that can have a significant impact on your financial well-being. The right savings account can help your money grow, provide financial security, and offer your desired convenience.
Ultimately, the best high-yield savings account for you in Iowa will depend on your specific needs, preferences, and financial objectives.
Notably, Beem high-yield savings account offers you an opportunity to improve your savings and make your money work hard for you. It’s essential to conduct thorough research, compare the available options, and consider your personal financial circumstances.
By doing so, you can make an informed decision that sets you on the path to financial success, allowing your savings to grow and work for you.
