Top-yielding savings accounts remain competitive despite continuing recession fears and persistently high inflation (although that’s trending downward as of late). Savers can still reap the benefits of a well-designed savings strategy by leveraging interest rates no one has seen in at least a decade.
Over the past year, the Federal Reserve has raised its benchmark federal funds rate by 5%, sparking an increase in annual percentage yields at some banks and credit unions that indirectly tie their rates to changes initiated by the Fed. Savers have benefited from the increase in rates as APYs continue to inch closer to 5.00%. Keep in mind, however, that a savings account APY is variable and can change at any time.
Case in point: CIT Bank remains competitive this week offering a 4.85% APY with a balance of at least $5,000. Synchrony, Capital One and Ally are each large US banks with a significant online banking platform that have increased rates in the past two weeks, closing in on banks offering the highest rates.
Overall, the APYs for savings accounts on CNET’s list of best savings accounts remain consistent and competitive. Our list highlights savings accounts with APYs of up to 4.85% that don’t charge monthly maintenance fees.
Read on to discover our federally insured picks for best savings accounts.
Best savings accounts
Savings account APYs are variable. The estimated earnings displayed in the table below assume the APY remains constant for 12 months.
| Bank | APY | Minimum deposit | Estimated annual earnings on $1,000 | Estimated annual earnings on $10,000 | Branch access | Monthly fee |
| CIT Bank | 4.85% | $5,000 | $3* | $496 | No | $0 |
| Upgrade Premier | 4.81% | $1,000 | $49 | $492 | No | $0 |
| Bask Bank | 4.75% | $0 | $48 | $475 | No | $0 |
| Bread Savings | 4.65% | $100 | $46 | $459 | No | $0 |
| Synchrony | 4.30% | $0 | $44 | $439 | No | $0 |
| LendingClub | 4.25% | $100 | $43 | $433 | No | $0 |
| SoFi | Up to 4.20% | $0 | $43 | $428 | No | $0 |
| Dollar Saving Direct | 4.00% | $0 | $41 | $407 | No | $0 |
| Capital One | 4.00% | $0 | $41 | $407 | Yes | $0 |
| Ally Bank | 3.85% | $0 | $39 | $392 | No | $0 |
| Varo Online Savings | 3.00% to 5.00% | $0 | $30 | $304 | No | $0 |
* CIT Bank Platinum Savings accounts earn 0.25% APY on balances under $5,000
CIT Bank
- APY
- 4.85%
- Min. deposit to open
- $100
- No monthly fees
- Three savings account options available
- $5,000 balance required to earn the highest APY with the Platinum Savings account
- Rebates up to $30 per month in out-of-network ATM fees
CIT Bank is the online division of First Citizens Bank. It offers three types of savings accounts. The Platinum Savings account doesn’t charge a monthly maintenance fee but requires a $100 minimum deposit to open an account. A 0.25% APY applies to balances below $5,000, otherwise you’ll earn a competitive 4.85% APY on any balance of $5,000 or more. The app makes mobile check deposits and transfers easy. You can receive up to $30 per month in reimbursements for out-of-network ATM fees.
Monthly fees: $0
Upgrade
- APY
- 4.81
- Min. deposit to open
- $1,000
Overview
- No monthly or transfer fees
- $1,000 balanced required to earn APY
- Banking app supports mobile check deposits
Upgrade’s Premier Savings accounts are held at Cross River Bank, a federally-insured bank located in New Jersey. There are no monthly or transfer fees, but only accounts with balances of $1,000 or more will earn the competitive APY. This online-only financial institution offers personal loans and credit cards along with a high-yield savings and rewards checking account. All transactions can be managed through its secure mobile app. While the account doesn’t offer ATM or debit cards, you can initiate deposits or withdrawals through ACH transactions or wire transfers.
Monthly fees: $0
Bask Bank
- APY
- 4.65%
- Min. deposit to open
- $0
- No monthly fees, minimum deposit or balance requirements
- Two savings account options available -- Miles Savings and Interest Savings
- Doesn’t offer ATM or debit cards with savings account
Bask Bank, an online subsidiary of Texas Capital Bank, offers two different types of savings accounts. Its Mileage Savings Account gives American Airlines mileage back for every dollar saved annually, while its Interest Savings Account provides a competitive APY that’s at, or near, the top of the current bank savings account rates. The biggest limitation for Bask Bank savings is that the bank doesn’t allow joint ownership of accounts.
Monthly fees: $0
Bread Savings
- APY
- 4.50%
- Min. deposit to open
- $100
- No monthly fees
- Monitors and adjusts APYs based on market conditions to remain competitive
- Doesn’t offer ATM or debit cards with savings account
- Banking app supports mobile check deposits
Formerly Comenity Direct, Bread Financial offers certificates of deposit and a high-yield savings account through its consumer arm Bread Savings. Bread Savings only requires a minimum deposit of $100 to qualify for that high APY. There are no monthly maintenance fees and you’re allowed unlimited free deposits via mobile check, ACH transfer and wire transfer. Outgoing wire transfers cost $25, official check requests are $15 and paper statements are $5 per statement.
Monthly fees: $0
Synchrony Bank
Read Synchrony Bank Review- APY
- 4.30%
- Min. deposit to open
- $0
- No monthly fees, minimum balance or balance requirements
- Banking app supports mobile check deposits
- Optional ATM card available for savings accounts
- Rebates up to $5 per month in non-network ATM fees
Synchrony’s High-Yield Savings includes no monthly maintenance fees or minimum balance requirements and offers a competitive yield. Outgoing wire transfers cost $25. Synchrony users are still limited to six withdrawals per month. There are no listed fees for surpassing that limit, but the bank retains the right to close your account if the maximum number of withdrawals is repeatedly broken.
Synchrony account holders can withdraw money fee-free from thousands of ATMs featuring the Visa Plus or Accel logos. Synchrony doesn’t charge to use non-network ATMs and will provide $5 per month to reimburse other bank’s ATM fees.
Monthly fees: $0
LendingClub
Read LendingClub Review- APY
- 4.25%
- Min. deposit to open
- $100
- No monthly fees or balance requirements
- Mobile app with an integrated financial dashboard provides tools to create budget, track spending and allow mobile check deposits
- Accepts cash deposits at participating MoneyPass ATMs
LendingClub acquired Radius Bank in 2021 and began offering online banking services. This savings account earns competitive rates. There are no monthly fees to pay, an account can be opened online and free ATM cards are available. You don’t pay any ATM fees, with all fees reimbursed by LendingClub and don’t have a minimum balance requirement after the initial deposit is received.
Monthly fees: $0
SoFi Bank
Read SoFi Bank Review- APY
- Up to 4.20%
- Min. deposit to open
- $0
- No monthly fees, minimum balance or balance requirements
- Does not offer standalone checking or savings accounts
- Direct deposit required to earn the highest APY on savings accounts
- New account bonus ranges from $50 to $250 depending on your monthly direct deposit amount
The SoFi Checking and Savings Account offers a sizable APY on your balance. Members with direct deposit will earn up to 4.20% APY on a savings account; without direct deposit the savings account APY will be 1.20%.
There are no monthly maintenance fees or balance requirements with SoFi Checking and Savings, as well as no fees for using the roughly 55,000 ATMs supported by the Allpoint network. It doesn’t provide any reimbursement for non-network ATM fees from other banks. SoFi also provides paper checks at no cost.
Currently, SoFi is offering bonuses of $50 to $250 for new accounts with qualified direct deposits until Dec. 31, 2023. Direct deposits of $1,000 to $4,999 will earn $50 and direct deposits of $5,000 and up will earn $250. The qualifying period for these bonuses lasts 30 days from the date of your first direct deposit.
DollarSavingsDirect
- APY
- 4.00%
- Min. deposit to open
- $0
- No monthly fees, minimum balance or balance requirements
- Will only accept a check for the initial deposit
- Money can only be accessed with a linked account through ACH transfers
- No excess withdrawals fees
DollarSavingsDirect is an online bank that offers one savings account paying highly competitive yields and recently dropped the initial deposit requirement to $0. There’s no minimum balance required to avoid monthly fees. DollarSavingsDirect also doesn’t charge an excessive withdrawal fee (over six transactions per month) which gives you more flexibility when accessing your money.
Monthly fees: $0
Capital One Bank
Read Capital One Bank Review- APY
- 4.00%
- Min. deposit to open
- $0
- No monthly fees, minimum deposit or balance requirements
- Banking app supports mobile check deposits
- Doesn’t offer ATM of debit cards with savings account
There are no monthly maintenance fees for Capital One 360 Performance Savings, nor minimum balance requirements. Because there are no ATM cards or checks, Capital One 360 Performance Savings works best with a complementary checking account.
The Capital One mobile app makes it easy to snap pictures of checks to deposit them. Sending money to another bank account with ACH transfers is free, but the process may take one to three days. Outgoing wire transfers incur a $30 fee, and cashier’s checks purchased at physical locations cost $10.
Monthly fees: $0
Ally Bank
Read Ally Bank Review- APY
- 3.85%
- Min. deposit to open
- $0
- No monthly fees, minimum deposit or balance requirements
- Live support available 24/7
- Digital tools such as roundups and savings buckets help automate savings
Ally’s Online Savings account pays a competitive 3.85% APY without charging any fees for minimum balances. Ally offers tools to help you reach your savings goals. Saving buckets allow you to organize your goals as sub-accounts and boosters use strategies to automate savings. The APY paid is available on all balance levels. You will be pleased with the surcharge-free network of more than 43,000 ATMs and the $10 per month in ATM fee reimbursement available.
Monthly fees: $0
Varo Bank
- APY
- 3.00% to 5.00%
- Min. deposit to open
- $0
- No monthly fees, minimum deposit or balance requirements
- Banking app supports mobile check deposits
- Roundup tools to automate savings
- The highest APY available limited to balances up to $5,000
- A minimum of $1,000 in monthly direct deposits required to earn interest
Tiered APY structures allow you to earn different levels of interest depending on your account balance. The Varo Online Savings Account works on a tiered APY scale, earning you 5.00% APY for balances between $0 and $5,000 -- as long as you follow a few requirements. To earn that yield, you must have direct deposits coming in each month for a total of at least $1,000 and maintain a balance up to $5,000. Varo applies a 3.00% APY to any amount of your balance that exceeds $5,000.
Varo Online Savings includes no monthly maintenance fees nor minimum balance requirements. If your account balance remains at zero for nine months, Varo reserves the right to shut down your account.
Monthly fees: $0
How to choose a savings account
There are two questions to ask when evaluating a savings account. First, what is the highest APY available? If your bank doesn’t offer a competitive APY on a savings account, start researching rates available at other banks. There’s nothing to stop you from opening multiple savings accounts. Second, how would you prefer to access your account? Are you comfortable conducting all banking transactions digitally through mobile apps or websites? If so, opting for an online savings account will allow you to take advantage of the highest APYs available. Otherwise, selecting a bank with physical branches is a must.
Once you’ve narrowed down you list of options, compare the following features by answer the following questions:
- How much money is required to open the account?
- What is the minimum balance requirement and are there fees or penalties associated with balances dropping below that level?
- Are there any limitations on the number of transactions permitted each month?
How do savings accounts work?
Savings accounts work similarly to most banking accounts -- you can deposit and withdraw money, and you’ll earn compound interest on the balance in your account. You’ll need to fund your savings account in order to earn any interest, and most savings accounts will provide different interest rates based on your balance.
Some savings accounts will charge monthly maintenance fees, though they can usually be waived by maintaining a minimum balance or reaching a minimum threshold of direct deposits per month.
Your withdrawals from savings accounts are usually limited to six per month by federal law. If you break that rule you may face a fee or a conversion of the account into a checking account.
Are savings rates rising?
The Federal Reserve’s decision to raise the federal funds rate ten times since March 2022 has resulted in higher APYs for such deposit accounts as savings, checking and CDs. APYs are rising closer to 5.00% which is just below the 12-month inflation rate of 5% and interest rates on savings come with much less risk than the stock market or cryptocurrency.
The biggest increases on savings account APYs can generally be found at online-only banks, which typically offer higher interest rates since they don’t need to pay the expenses of maintaining physical branches. The banks with the most branches -- Chase, Bank of America and Wells Fargo -- are, unfortunately, still offering low savings account APYs that are below the national average. If earning higher interest and having access to physical branches is important to you, consider the savings accounts at Capital One or Citibank.
What are the different types of savings accounts?
There are savings accounts available for various types of people, be they students, seniors, veterans, small business owners or high-net-worth individuals. In general, however, there are three main types of savings accounts.
Standard deposit account: This type of account provides a standard rate of interest for your balance that’s usually higher than checking accounts while limiting your access to the money. It limits you to six withdrawals per month, although ATM withdrawals can sometimes be excluded from that restriction.
High-yield savings account: A high-yield savings account offers rates that are several times higher than the national average of standard savings accounts. These accounts are mostly found at online banks, credit unions and neobanks that don’t have overhead costs associated with traditional, brick-and-mortar banks, passing those savings to you in the form of higher APYs.
Money market account: A money market account can often bridge the gap between a checking and a savings account. While it usually requires a higher balance and bases its rate on the market, it gives you the ability to withdraw your funds through writing checks. The same six-withdrawal limit applies to money market accounts. Money market accounts aren’t mutual fund investments in money-market funds.
Certificates of deposit: A certificate of deposit, or CD, generally provides extra interest in return for committing your money to a specific period of time, or term (although you’ll be charged fees for taking your money out before the CD term’s maturity date). Most CDs have terms starting at three months and can run up to five years, some up to 10 years. CDs can be “laddered,” so that a one-year CD can be rolled over into a two-year CD, and then a three-year CD and so on.
Pros and cons of opening a savings account
Pros
Balances can earn a competitive APY in a low-risk, secure savings account.
There are many options to choose from, from traditional, online, and hybrid banks and credit unions.
Savings accounts are liquid. Money in the account can be accessed when you need it.
Balances at federally insured banks and credit unions are insured by the Federal Deposit Insurance Corporation and National Credit Union Administration, respectively, for up to $250,000 per person, per institution.
Cons
Interest rates on savings accounts are generally variable and can change at any time.
There are other low-risk savings options that pay higher interest rates on deposit accounts.
Some banks limit withdrawals or transfers to six per month free of charge.
How much should you keep in a savings account?
Balances on savings accounts are insured by the FDIC or NCUA up to $250,000. This generally includes all balances in accounts per bank. You should make sure that your combined balances do not exceed the insured amount. If so, consider moving the excess amount to another insured banking institution.
How to open a savings account
Opening a savings account is a simple process.
- Complete the application process at your chosen bank or credit union. Many financial institutions have features that allow you to complete the application process online.
- Provide a government-issued form of ID to verify your identity.
The bottom line
In this era of rising interest rates, parking some of your money in a savings account with no monthly fees or balance minimums is a wise decision. But remember, savings account rates are variable and can change at any time. Using a savings account with the most competitive rate as a part of your overall savings strategy to maintain an emergency fund or plan for short-term goals is an effective way to protect your money while maximizing interest growth. Review the banks and credit unions above before deciding where to house your savings.
FAQs
Most checking accounts are designed to facilitate transactions and payments, whether via a debit card, a mobile app such as Apple Pay or a paper check. Most checking accounts don’t offer interest; those that do usually provide a very low rate of 0.10% or less.
Savings accounts offer significantly higher interest rates and online-only banks typically offer the highest yields. These accounts provide a safe place to store money while keeping it accessible. Until recently, savings account holders were generally limited to making six transactions per month.
In normal times, the Federal Reserve limits account holders to six withdrawals a month (to preserve liquidity for financial institutions). In response to the pandemic, the Federal Reserve made a rule change to Regulation D allowing unlimited money withdrawals without a monthly fee penalty.
A high-yield savings account offers a higher interest rate than a traditional savings account. These accounts may have certain deposit requirements, monthly fees or be available only to people in certain states.
Traditional savings accounts at a bank will have interest rates ranging from 0.01% to 0.10% while high-yield accounts can go as high as 1.00%.
Interest rates in the US and around the world have been low for a long period, mostly since the economic crisis of 2008-2009. Interest rates are generally set low during times of economic downturn or uncertainty in order to spur investment and spending. Low interest rates tend to reward borrowers rather than lenders.
In the US, the Federal Reserve sets a target rate range, which influences the specific interest rates set by individual banks. Since March 2022, the Fed has raised the federal funds rate by 5% to combat rising inflation. This has prompted some banks -- mainly online-only banks -- to increase rates for savings accounts. However, the average interest rate for savings accounts is only 0.40%.
Banks that are adjusting APY with each Fed rate hike will offer a higher savings rate to attract new account holders. The market for high-yield savings accounts is competitive, with some banks offering particularly high rates for an introductory period of time. Because of this, interest rates at financial institutions may change regularly.
Yes. Your bank will send you a 1099-INT form each year when your savings account earns more than $10 in interest.
Online savings accounts from federally insured banks and credit unions are insured by up to $250,000 by the FDIC or NCUA, respectively. This makes such savings accounts low-risk savings options.
Rates on savings accounts are variable and can change at any time. While each bank has a unique process for determining APYs, most accounts are loosely connected to the federal funds rate -- the interest rate at which banks lend to each other. The Federal Reserve has continued to hike the federal funds rate since 2022 to counter soaring inflation.
As a result, APYs for deposit accounts like savings accounts and CDs have also risen over the past few months.
Methodology
CNET reviews savings accounts by comparing them across set criteria, including annual percentage yield, monthly fees, minimum deposits or balances and access to physical branches. Because APYs at individual accounts can vary, we look at the estimated annual interest on $1,000 and $10,000 levels of savings.
We reviewed more than two dozen leading traditional banks and online financial offerings to determine our best savings accounts. Along with the aforementioned criteria, we also considered sign-up bonuses and other rewards. All savings accounts must also be insured by the FDIC.
Savings accounts researched
- Affirm Savings
- Ally Online Savings Account
- American Express High Yield Savings Account
- Axos High Yield Savings
- Bank of America Advantage Savings
- Barclays Online Savings
- BrioDirect High-Yield Savings
- Capital One 360 Performance Savings
- Chime Savings Account
- Citi Accelerate
- Citizens Online Savings Account
- Consumers Credit Union Savings
- Discover Online Savings Account
- Lending Club High-Yield Savings
- Marcus High Yield Savings
- Nationwide My Savings
- PenFed Credit Union Premium Online Savings Account
- PNC High Yield Savings
- Popular Direct Select Savings
- Sallie Mae SmartyPig
- Synchrony High Yield Savings
- Schwab Bank High Yield Investor Savings
- Synchrony High Yield Savings
- Upgrade Premier
- Vio Bank High Yield Online Savings Account
- Wells Fargo Platinum Savings
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The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
