What Savings Account Is Best for Retirement?
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The best savings account for retirement depends on what you're actually trying to accomplish. If you're still building up a nest egg, you'll want a 401(k), IRA, or brokerage account where your money can be invested and grow.
If you're already retired or close to it, a high-yield savings account is the best home for the cash you'll spend soon.
The best account for building retirement savings is a 401(k) or IRA
If your goal is to grow money for retirement, standard checking or savings accounts won't cut it. You need to invest your money to grow and compound over decades.
Two of the best places to start are your workplace 401(k) or opening an IRA. These accounts come with tax breaks, and they let you invest for real long-term growth.
Outside of tax-advantaged accounts, regular brokerage accounts are also a great home for retirement savings.
Start with your workplace 401(k) if you get a company match, then open an IRA for more control. I've maxed out my Roth IRA nine years running, and it's the best money habit I've built.
Fidelity, Schwab, and SoFi® are the best places to open a retirement account
The best retirement account brokers keep fees at a minimum and have a wide investment lineup. My favorite two low-cost brokers are Fidelity and Charles Schwab.
Fidelity earned our award for the Best Stock Broker Overall for 2026, with a massive fund selection and no account minimums. My own IRA lives there, and our Fidelity review has the full breakdown.
Schwab is right there with it, especially for retirement savers. It won our 2026 award for the Best Stock Broker for IRA Investors, backed by strong research tools and support. My wife keeps her IRA at Schwab -- here's our Charles Schwab review.
If you'd rather keep your bank and brokerage in one app, SoFi® does both -- and it won our 2026 award for Best Online Bank. It's a smart pick if you don't want accounts scattered across companies, and SoFi®'s automated investing can run the investing side for you.
2026 Award Winner
= Best
= Excellent
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= PoorThis brokerage is a clear standout for its well-rated mobile app and also has unique investment offerings like IPOs, options, and fractional shares.
$0 for stocks, $0 for options contracts
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Get up to $3,000 in stock when you fund a new account between 9/28-10/18.
On SoFi Active Investing's Secure Website.
It's worth comparing a few options among the best IRA accounts and the best stock brokers before you open anything.
A high-yield savings account is the best savings account for retirees
If you're retired or close to it, the best savings account for your cash is a high-yield savings account (HYSA). It keeps the cash you'll spend soon safe, FDIC insured, and easy to reach -- while paying far more than a standard account.
The average savings account pays just 0.37% APY, according to Motley Fool Money research. That's not enough to keep pace with inflation, so you're losing value each year.
Meanwhile, top high-yield accounts pay between 3.00% and 4.00% APY right now.
For a home base, I like Barclays. It offers a high-yield savings account and CDs in a range of terms, so some cash stays liquid while the rest is locked in.
On Barclays' Secure Website.
Member FDIC.
Barclays Tiered Savings
On Barclays' Secure Website.
= Best
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= Best
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To earn a $200 bonus, new customers can open a savings account; deposit $25,000 or more within 30 days; and maintain at least that balance for 120 consecutive days. The bonus will be credited to your account within 60 days of meeting these requirements. Offer ends Oct. 31, 2026. Terms apply.
- Competitive APY
- No monthly account fee
- Unlimited number of external transfers (up to daily transaction limits)
- FDIC insured
- No minimum deposit to open an account
- Balance requirement for maximum APY
- No ATM access
- No wire transfers (inbound or outbound)
- No branch access; online only
Barclays Tiered Savings rewards savers with a tiered APY structure, offering higher rates as your balance grows. No monthly fees and no minimum balance to open mean it's accessible to everyone, while unlimited transfers and withdrawals let you manage your savings your way.
CDs shine for money you won't touch for a set stretch, like next year's travel budget. You give up access to the money, but in return you lock in your rate for the entire term. Laddering a few CDs across different lengths keeps cash freeing up on a schedule.
To find a rate that fits, compare the best high-yield savings accounts and the best CD rates.
Keep about one to two years of expenses in cash
Most retirees should hold roughly one to two years of living expenses in cash. That cushion means you won't have to sell investments during a market dip just to pay the bills. Selling low turns a paper loss into a real one.
Everything past that cushion can stay invested, where it has room to grow through a retirement that could last 30+ years. Cash is for spending soon; your portfolio is for the long haul. Your HYSA holds the first bucket, and your brokerage holds the second.
Match the account to the job
There's no single best account for all of your retirement savings. It's best to have money spread across different account types, built for different jobs.
Use a 401(k), IRA, or regular brokerage for long-term investing, and a high-yield savings account to hold the short-term cash you'll spend soon. Get both working together, and your money is set up to grow now and be ready when you need it.
FAQs
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An IRA savings account is a low-risk IRA that holds cash or CDs instead of investments, usually offered by a bank. It earns interest and stays FDIC insured, but it won't grow like an IRA invested in stocks or funds. Most people building a nest egg want an invested version from a stock broker, not a bank.
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Yes, but it usually triggers taxes and maybe a penalty. Pulling money out of an IRA into a regular savings account counts as a withdrawal, so you'll likely owe income tax -- plus a 10% penalty if you're under 59 1/2. To hold cash inside the IRA, ask about a money market option.
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No. A Roth IRA is a retirement account you fund with after-tax money, then invest for tax-free growth. Some banks offer a Roth "savings" version that just holds cash, but the real power of a Roth comes from investing it for the long haul.
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Yes. High-yield savings accounts at FDIC-insured banks protect up to $250,000 per depositor, per bank. This is the same protection as any traditional bank account.
Our Research Expert
Joel O’Leary is a full-time Personal Finance Writer at Motley Fool Money, covering credit cards, bank accounts, investing, mortgages, and other personal finance topics. Joel has been writing about personal finance since 2018, previously leading editorial content for the How To Money podcast and serving as a resident writer at Budgets Are Sexy. He bought his first rental property at age 18, funding the down payment with savings from his high school job at McDonald’s -- a testament to his lifelong passion for smart money decisions. His work aims to make personal finance accessible and actionable for everyday readers. When he’s not writing, Joel enjoys surfing and spending time with his family.
Motley Fool Stock Disclosures
Charles Schwab is an advertising partner of Motley Fool Money. Joel O'Leary has no position in any of the stocks mentioned. The Motley Fool recommends Barclays Plc and Charles Schwab and recommends the following options: short September 2026 $95 calls on Charles Schwab. The Motley Fool has a disclosure policy.