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- Best Savings Accounts
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A savings account is a smart -- and safe -- way to grow your wealth. Some of the best online savings accounts can have an APY (annual percentage yield) that is more than 12 times the national average APY of 0.05%. If you're interested in growing your savings, focus on the following features when searching for the best savings account:
Our best savings accounts all offer these essentials, as well as other market-leading benefits. Check out our picks below to get started and read further to learn if a high-yield, online, or traditional savings account is right for you.
Below you'll find quick reviews of our best online and high-yield savings account picks for this month. Click through to the full review to learn more.
The Discover Online Savings account is a top choice for customers looking for a quality online savings account with a high APY. Discover takes the no-fee approach to the next level with none of the monthly fees or hidden fees that you might see with other banks. Discover offers a top-rated mobile app that lets customers stay connected to their savings from almost anywhere.
The Marcus by Goldman Sachs Online Savings account is a newer entrant to the market, but it's already proven that it's here to stay with a competitive APY, low fees, and no minimum balance requirements.
You probably know American Express as a popular credit card issuer, but its savings account is garnering a lot of positive attention because of its low fees and high APY, available to anyone who maintains a balance of $1 or more.
The CIT Bank Savings Builder account employs a tiered APY system that can net you up to Up to 0.45% APY if you maintain a balance of $25,000 or more or have at least $100 in deposits every month. The latter qualification is likely what most savers can maintain, making the highest APY tier widely available.
Axos Bank packs in one of the highest current APYs. Importantly as well, the high APY doesn't come with any strings attached (all balances receive the same APY) and doesn't charge a monthly maintenance fee.
The Vio Bank High Yield Online Savings account offers among an industry-leading APY to all account holders, and it doesn't charge monthly maintenance fees. This makes it a great fit for anyone hoping to grow savings over time.
Importantly, Ally Online Savings includes a high APY. Not to be overlooked, it also includes no monthly maintenance fees, no minimum balance requirements, and includes useful desktop and mobile tools to make hitting your savings goals easier.
Synchrony's banking products share a common thread: Each tends to be among best-in-class, all while cutting fees. Synchrony High-Yield Savings is no different. Beyond a high APY and no monthly maintenance fee, accountholders can access a somewhat rare savings account perk, ATM access.
A savings account is a type of bank account that pays you interest. You'll earn more interest than you would with a checking account in exchange for limited access to your funds. You can put as much money as you'd like into a savings account, but by federal law (regulation D), you can only make up to six free withdrawals per month. Exceeding this amount could result in extra fees.
Banks use your savings to fund loans for their customers. Borrowers then pay interest on the loan, and your bank sends some of that interest to your savings account. A larger balance or a higher savings account interest rate results in more interest.
Some savings accounts may charge monthly maintenance fees. They're unlikely to include ATM cards or check-writing capabilities. So if you want to withdraw money from the account, you must do so via automatic bill pay or transfer the funds to a linked checking account.
Like other deposit accounts, traditional savings accounts and online savings accounts are usually backed by the Federal Deposit Insurance Corporation (FDIC). This protects your money, up to $250,000 per person per bank, against bank failure. So you won't lose your hard-earned cash even if your bank closes its doors.
A high-yield savings account is a savings account with an APY that's far higher than a traditional savings account. There is no clear boundary separating high-yield accounts from their lower-earning peers. But the APY on the best high-yield savings accounts can be up to 16 times higher than the national average.
High-yield savings accounts are most commonly found at online banks. Without a large branch network to maintain, they're able to pass their savings on to you in the form of higher APYs and lower fees.
Most online savings accounts carry the same FDIC insurance as a traditional bank. But because these banks don't have branches, you often have fewer options for accessing your funds. This shouldn't pose a serious issue for most people, though, as these accounts are intended for saving, not frequent spending.
Traditional savings accounts are usually offered by brick-and-mortar banks. Online savings accounts don't have the overhead of running physical branches and so can offer higher interest rates. As such, the best online savings accounts are often high-yield. Early on, many bank customers were concerned that hackers might gain access to their information. As a result, online banks attracted deposits by offering interest rates that brick-and-mortar banks couldn't match.
Now, the banking world has turned upside down. Many people prefer the convenience of online banking. Indeed, traditional brick-and-mortar banks have created online systems to give their customers the same online services.
Here are some of the key differences between savings accounts at online and brick-and-mortar banks:
The type of bank that's best for you depends on which features are most important to you. Unless you really need to be able to visit a branch and speak to a live person, an online bank should be able to satisfy your needs most of the time. Plus you can earn a higher APY in the process.
The best savings accounts have a high APY, no monthly maintenance fees, and FDIC insurance. Keep those things in mind as you compare your savings account options.
TIP
Every good savings account has to have deposit insurance from the FDIC. This protects covered deposits up to $250,000 against any problem your bank might have, up to and including the complete failure of the entire financial institution. Most online banks, including those that offer the best online savings accounts, are covered by the FDIC.
Here are a couple of key terms you should know before you open a savings account. These are important terms for online savings accounts, traditional savings accounts, and high-yield savings accounts.
APY. This stands for "annual percentage yield." People often use this term interchangeably with interest rate, but the two aren't the same. APY takes into account the actual interest rate as well as how often that interest compounds. A higher APY means more interest for you.
Monthly maintenance fee. A monthly maintenance fee is a fee your bank charges to maintain your savings account. Some banks, especially online banks, don't charge this fee, and others will waive it if you meet certain requirements.
Liquidity. Liquidity refers to how easy it is to turn your money into cash. Highly liquid accounts make this simple, while low-liquidity accounts make it a lot more challenging to get cash when you need it.
The best high-yield savings accounts, both online and traditional, will meet the following criteria:
TIP
You can get FDIC coverage beyond the $250,000 limit if you spread your money between multiple accounts or multiple banks. For instance, you could get $750,000 in coverage at a single bank by putting money into a joint savings account using your and your spouse's names, and an individual CD in just your name. That's because the $250,000 limit is per depositor, per account category. Spreading the funds across depositors and account categories increases coverage within a single bank.
A savings account is a good place for money you don't need for everyday spending but aren't willing to risk on the stock market. You should keep your emergency fund in a savings account, as well as money you're saving towards a large purchase in the next few years. Investing these funds is not usually a good idea. There's a chance you could earn a higher rate on your money, but there's also a risk your investments could lose money, particularly over the short term. You could be forced to sell your assets at a loss when you need money, and even then, it can take time to get the funds. With a savings account, your money's always right there when you need it.
Savings accounts aren't good places for cash you need to access on a day-to-day basis, because withdrawals in excess of six per month could bring fees. They're also not the best choice for money you don't plan to use for decades. That's because savings account interest rates are usually lower than the return you can get on the stock market.
One of these other bank accounts might suit you better if one of our best savings accounts doesn't sound like a good fit.
CD accounts. A certificate of deposit (CD) is a special type of savings account that offers a higher interest rate than a high-yield savings account. But it doesn't allow you to access your deposit plus earnings for a set number of months or years (your CD term). If you withdraw your money before this deadline, you'll pay a withdrawal penalty.
Money market accounts. A money market account offers the high interest rate you find with savings accounts and CDs as well as some checking account features. Some offer ATM cards, checks, or both so you can withdraw funds directly from this account. Be aware, you're still limited to six penalty-free withdrawals per month.
Checking accounts. Checking accounts rarely earn interest, and when they do, their rates are usually lower than high-yield savings accounts. But these accounts have no withdrawal restrictions, and most include an ATM card, debit card, and checks for easy access.
Choosing the right home for your money is essential if you want to minimize frustration and earn the most interest. This chart provides a quick overview of some of the key features of the best savings accounts, checking accounts, and CDs.
Features | Savings accounts | Checking accounts | CD account |
---|---|---|---|
Interest rates | Savings accounts offer higher APYs than most checking accounts and some CDs in exchange for restricted withdrawals | Typically offer a low interest rate, if any | Depending on the CD term and bank, a CD may offer a better rate than savings or checking accounts in exchange for withdrawal restrictions |
Variable or fixed interest rates? | Variable | Variable | Fixed for the CD term |
Liquidity | Fairly high, but there are fewer withdrawal options and penalties for excessive withdrawals | High -- several deposit options, and no restrictions on withdrawals | Depends on the CD type, but typically low, with penalties for early withdrawals |
ATM card? | Possible, but rare | Yes | No |
Check-writing capabilities? | No | Yes | No |
To open a savings account, visit a branch (if your chosen bank has them), or fill out an online application form. You will need to provide some personal information, including:
If you are opening a joint savings account, both parties will need to provide this information.
Your bank may also require a minimum deposit to open the account. This may be different than the ongoing minimum balance required to avoid monthly maintenance fees. If you're transferring the funds from another bank account, you'll need to know its routing and account number.
While our savings account picks are the best options for most people, we recognize that everyone's situation is unique, and other options may be worth reviewing. In addition to our top picks, here are several other savings accounts we considered for inclusion on this shortlist.
Savings accounts are a great way to earn interest over time on money you don't plan to spend immediately. How much depends on the balance in your savings account and the interest rate. In exchange for this interest, you agree to limit your monthly withdrawals from your savings account.
Yes. Savings account funds are FDIC-insured up to $250,000 per person per bank, so there's no risk of losing money if your bank goes under. The risk of losing money with a savings account is pretty slim. It could be possible if you incur a lot of fees, your identity is stolen, or a hacker gains access to your bank account.
As long as you are aware of the fees your bank charges (and ways to avoid them) and you protect your personal and account information, your savings account should only make you money.
The best savings accounts have:
A high-yield savings account is a savings account that offers a much higher APY than average. The national average savings account APY is currently 0.05%, but some high-yield savings accounts offer APYs that are 12 times that rate. This means your savings can grow more quickly.
Offer | APY | Best For |
---|---|---|
Discover Online Savings | 0.40% | No monthly maintenance fee |
Marcus by Goldman Sachs Online Savings Account | 0.50% | No monthly maintenance fee |
American Express National Bank | 0.50% | No monthly maintenance fee |
CIT Bank Savings Builder | Up to 0.45% | No monthly maintenance fee |
Axos High-Yield Savings | 0.61% | High APY |
Vio Bank High Yield Online Savings Account | 0.66% | High APY |
Ally Online Savings | 0.50% | No monthly maintenance fee |
Synchrony Bank High-Yield Savings | 0.60% | High APY |
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