The Best Savings Accounts in Alabama for 2024
Nearly 5 million Americans call Alabama home, and each of those Americans needs access to banking services in one form or another. Dozens of banks operate in the state, looking to serve the financial needs of Alabamians.
Because many banks offer savings accounts, they must compete for new customers. What that means for you is that you can get a great deal by shopping around.
The Best Savings Accounts in Alabama
Based on our evaluations of the savings accounts offered by the largest banks in Alabama, these are the options that stand out the most:
- ServisFirst Bank - ServisFirst Savings: Best for low fees
- Truist - Truist One Savings: Best for branch access
- Valley National Bank - Valley All Access Savings: Best for earning interest
Compare Savings Accounts
Be sure to look at other savings accounts that are worth considering:
Best Savings Accounts in Alabama Reviews
ServisFirst Bank - ServisFirst Savings
The ServisFirst Bank ServisFirst Savings account is a no-frills account with no monthly fee.
Once the account is open, there is no minimum deposit. You'll earn interest no matter what your account balance is.
The biggest downside of the account is that you are limited to two monthly withdrawals. Each withdrawal over the second will incur a fee.
Truist Bank - Truist One Savings
The Truist One Savings account is attractive due to the solid physical branch presence of Truist in Alabama. The report also has a low minimum opening deposit of just $50.
The account has a $5 monthly fee that can be waived by maintaining a daily balance of $100, a recurring incoming transfer of $25 or more, under age 18, or having a linked Truist checking account.
Valley National Bank - Valley All Access Savings
From a brick-and-mortar bank, the Valley All Access Savings account offers a much higher interest than what you'd find from other local Alabama banks that operate physical locations. It also comes with an ATM card for cash withdrawals.
The account has a $100 minimum opening deposit, and a $5 monthly fee applies if you do not maintain an average daily balance of $300 or more.
Methodology
MyBankTracker applied a methodology when choosing the best savings accounts in Alabama. Our top recommendations were selected based on a thorough analysis of savings accounts offered by the top 50 banks by deposit market share in Alabama (based on FDIC data)--covering significant cities including Huntsville, Birmingham, Montgomery, Mobile, and Tuscaloosa.
We focused on savings accounts with low monthly maintenance fees, the least demanding requirements to waive these fees, the bank's ATM network, excess withdrawal fees, and other convenience features.
Why You Should Consider Online Banks
Consider an online savings account once you've looked into local banks and credit unions. You can open an online savings account from anywhere in the U.S., and they offer a variety of benefits.
One benefit is that they are very convenient to use. Savings accounts generally don't require much maintenance. Just deposit your money, let it grow, and transfer money to your checking account as needed.
Having online and mobile access to do these things makes working with a savings account even more accessible.
Another benefit is that they offer much more interest and charge lower fees than brick-and-mortar banks. Online banks don't have to operate ATM networks or branches and save much money because of it. That means that they can offer a better deal to their customers.
High savings rates with lower fees
Low fees and high rates are why online savings are so much better than other savings accounts. Over a few years, the high-interest rate on an online savings account can be worth hundreds or thousands of dollars.
Don't forget that many brick-and-mortar banks charge monthly fees. Even a $1 monthly fee would wipe out all the interest you earned. That makes online savings accounts an even better deal.
Low minimum deposits
Online savings accounts also win out over traditional ones due to their low minimum deposits.
Many brick-and-mortar banks will require between $25 and $100 before you can open a savings account. Most online banks require $1 or less to open an account. That makes it easy to get started with saving.
FDIC insurance still applies
Online banks are just as safe as traditional banks, thanks to Federal Deposit Insurance Corporation insurance.
The FDIC offers up to $250,000 in insurance per account type per customer at a bank. If you never let your combined savings account balances exceed $250,000, you can't lose money by depositing it in an online bank. If the bank cannot return your money, the FDIC will reimburse you for the lost amount.
National Banks vs. Local Community Banks
Working with a local Alabama bank does have its benefits and downsides.
Pros
First, local banks excel at providing the services that local customers need.
National banks have to offer generic services that are useful to most consumers.
A local bank can offer services that are only useful to locals. For example, if you live in a more rural, farm-based community, your local bank might provide particular loans for agricultural equipment.
Another benefit is that local banks are better at providing personalized service.
The longer you bank with a local institution, the better the staff at that bank will get to know you.
They'll also get to know your financial situation. This will let the staff provide personalized advice that you can use. Local banks are also generally better at waiving fees here and there or cutting you a break occasionally. National banks tend to have more strict rules.
Cons
There is one apparent downside to working with a local bank. If you travel outside the region your bank serves, you'll have to rely on other bank's ATMs. That means you'll have to pay the ATM fees charged by those banks.
If you ever move outside of the region served by your bank, you'll be forced to open an account at an entirely new bank. You can find a new branch or ATM near a national bank.
Tips to Help Your Savings Grow Faster
Follow these tips to help your savings grow faster.
Limit access to your money
When you have money in a savings account, it can be very tempting to spend it on something fun. Try to resist that urge and let your money continue to earn interest.
Online savings accounts help with this by making your money more complicated. You might want to opt for a bank without ATM access, making spending your money frivolously even harder.
Set up automatic transfers
The best way to grow your savings is to add to it regularly. You can set up automatic savings transfers from your checking account to your savings account. If you do this, you won't have to consider saving because it will happen automatically.
Because your savings account will pay far more interest than your checking, you'll get a double boost in savings growth using this strategy.
Direct deposit directly into savings
Many employers will let you split your paycheck into multiple accounts. If you can set up direct deposit to your savings account, go for it.
Depositing money directly into your savings account with each paycheck means you won't see the funds in your checking account.
Instead, it will go right towards growing your savings.
If you have trouble with spending money before you can save it, this can help you avoid that temptation.
