The best savings accounts offer competitive interest rates on your entire account balance. They also offer tools to help you grow your savings and reduce the number of fees that make it harder to reach your financial goals.
While many online banks offer high-yield savings accounts -- a type of savings option that earns well above the national average savings rates of 0.45% -- big banks like Capital One offer conveniences such as in-person customer service and cash deposits.
Best savings accounts
Whether you’re choosing a traditional or high-yield savings account, your annual percentage yield is variable -- meaning it could change at any time, and sometimes without notice. Here’s a look at where rates stand right now.
| Bank | APY | Minimum deposit | Branch access | Monthly fee |
| Upgrade Premier | 5.07% | $1,000 | No | $0 |
| CIT Bank | 5.05% | $5,000 | No | $0 |
| Bask Bank | 5.00% | $0 | No | $0 |
| Dollar Saving Direct | 5.00% | $1,000 | No | $0 |
| Bread Savings | 5.00% | $100 | No | $0 |
| Synchrony | 4.75% | $0 | No | $0 |
| LendingClub | 4.50% | $100 | No | $0 |
| SoFi | Up to 4.50% | $0 | No | $0 |
| Capital One | 4.30% | $0 | Yes | $0 |
| Ally Bank | 4.25% | $0 | No | $0 |
| Varo Online Savings | 3.00% to 5.00% | $0 | No | $0 |
Upgrade
- APY APY = Annual Percentage Yield.
- 5.07%
- Min. deposit to open
- $1,000
Overview
- No monthly or transfer fees
- $1,000 balance 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
Overview
- No monthly or transfer fees
- $1,000 balance 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
CIT Bank
- APY APY = Annual Percentage Yield.
- 0.25%-5.05%
- Min. deposit to open
- $100
- No monthly fees
- Three savings account options available: Platinum Savings, Savings Connect and Savings Builder
- $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. You’ll earn a competitive 5.05% APY on any balance of $5,000 or more, but only 0.25% APY if your balance is less than that. The app makes mobile check deposits and transfers easy.
If you don’t have a large initial deposit, the Savings Connect savings account offers a competitive 4.65% APY. You’ll only need $100 to open the account and qualify for this rate. Similar to the Platinum Savings, there are no fees and you have access to all the same services. Once your savings balance grows to $5,000 or more, you can transfer the balance to a Platinum Savings account to earn the higher APY.
The bank offers two other savings accounts, the Savings Connect account and the Savings Builder account. At the time of writing, these two accounts have lower APYs than the Platinum Savings accounts but they may have different features that make them a better fit for certain consumers.
Monthly fees: $0
- No monthly fees
- Three savings account options available: Platinum Savings, Savings Connect and Savings Builder
- $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. You’ll earn a competitive 5.05% APY on any balance of $5,000 or more, but only 0.25% APY if your balance is less than that. The app makes mobile check deposits and transfers easy.
If you don’t have a large initial deposit, the Savings Connect savings account offers a competitive 4.65% APY. You’ll only need $100 to open the account and qualify for this rate. Similar to the Platinum Savings, there are no fees and you have access to all the same services. Once your savings balance grows to $5,000 or more, you can transfer the balance to a Platinum Savings account to earn the higher APY.
The bank offers two other savings accounts, the Savings Connect account and the Savings Builder account. At the time of writing, these two accounts have lower APYs than the Platinum Savings accounts but they may have different features that make them a better fit for certain consumers.
Monthly fees: $0
Bask Bank
- APY APY = Annual Percentage Yield.
- 5.00%
- 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
- 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 APY = Annual Percentage Yield.
- 5.00%
- 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
- 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
DollarSavingsDirect
- APY APY = Annual Percentage Yield.
- 5.00%
- 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 with no minimum deposit requirements. There’s no minimum balance required to avoid monthly fees. DollarSavingsDirect also doesn’t charge an excessive withdrawal fee for exceeding a certain number of transactions each month, which gives you more flexibility when accessing your money.
Monthly fees: $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 with no minimum deposit requirements. There’s no minimum balance required to avoid monthly fees. DollarSavingsDirect also doesn’t charge an excessive withdrawal fee for exceeding a certain number of transactions each month, which gives you more flexibility when accessing your money.
Monthly fees: $0
LendingClub
- APY APY = Annual Percentage Yield.
- 4.50%
- 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 and you can open an account online. You’ll get a free ATM card for easy cash access and no ATM fees when using in-network ATMs. The account doesn’t have a minimum balance requirement after the initial deposit is received.
Monthly fees: $0
- 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 and you can open an account online. You’ll get a free ATM card for easy cash access and no ATM fees when using in-network ATMs. The account doesn’t have a minimum balance requirement after the initial deposit is received.
Monthly fees: $0
Synchrony Bank
- APY APY = Annual Percentage Yield.
- 4.50%
- 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 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 get an ATM card and 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
- 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 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 get an ATM card and 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
SoFi Bank
- APY APY = Annual Percentage Yield.
- Up to 4.50%
- 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 of any amount will earn up to 4.50% 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 and 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 during the evaluation period will earn $50 and direct deposits of $5,000 and up will earn $250. The evaluation period for these bonuses lasts 25 days from the date of your first direct deposit.
Monthly fees: $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 of any amount will earn up to 4.50% 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 and 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 during the evaluation period will earn $50 and direct deposits of $5,000 and up will earn $250. The evaluation period for these bonuses lasts 25 days from the date of your first direct deposit.
Monthly fees: $0
Capital One Bank
- APY APY = Annual Percentage Yield.
- 4.30%
- 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
- 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
- APY APY = Annual Percentage Yield.
- 4.25%
- 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 4.25% APY without any monthly fees or minimum balance requirements. 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. A surcharge-free network of more than 43,000 ATMs and the $10 per month in ATM fee reimbursements make it easy to access your money when you need it.
Monthly fees: $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 4.25% APY without any monthly fees or minimum balance requirements. 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. A surcharge-free network of more than 43,000 ATMs and the $10 per month in ATM fee reimbursements make it easy to access your money when you need it.
Monthly fees: $0
Varo Bank
- APY APY = Annual Percentage Yield.
- 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 totaling $1,000 each month and end the month with a positive balance in your account. Note that any amount of your balance that exceeds $5,000 only earns 3.00% APY.
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
- 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 totaling $1,000 each month and end the month with a positive balance in your account. Note that any amount of your balance that exceeds $5,000 only earns 3.00% APY.
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
What experts are saying about savings accounts
For most people looking to grow their savings, the best option is a high-yield savings account, which you’ll often find with an online bank.
“Some people assume they’re going to get the best rates with brick-and-mortar banks like Bank of America, J.P. Morgan and Wells Fargo,” said Shang Saavedra, founder and CEO of Save My Cents, a personal finance education platform. But these large banks offer barely any interest on your savings, she said.
Online-only banks tend to offer higher rates and fewer fees compared to brick-and-mortar banks, because they don’t have physical branches to maintain. With lower overhead costs, online banks can pass some of these savings down to customers through higher interest rates on savings accounts.
Right now some online-only banks are offering over 5.00% for savings accounts, compared to near 0% rates that many big banks are offering. That’s why Saavedra recommends turning to an online bank to grow your savings.
But moving your funds to a fully online bank can feel daunting -- particularly if you’re not familiar with some of the financial institutions offering the best APYs right now.
“Not having access to a branch location can feel unfamiliar,” said Rita-Soledad Fernández Paulino, a personal finance coach and founder of Wealth Para Todos, who goes by Soledad. But there are ways to feel more comfortable before opening an online savings account.
First, make sure the bank is FDIC-insured, said Anna N’Jie-Konte, a certified financial planner. That way, your money is protected for up to $250,000 per person, per bank in case of bank failure. You can also check the bank’s Better Business Bureau rating for the bank and online reviews, she added. Another way to make sure the bank is insured is to look for the FDIC certification number on the bank’s website, said Saavedra.
There are some cases when a traditional savings account at a physical bank may work better for you. If you’re a restaurant server who gets cash tips, it might make sense to have a savings account at a brick-and-mortar bank, said N’Jie-Konte. But she stresses that unless you need a perk only a big bank can offer, like in-person assistance, an online bank with better savings rates is generally the better option.
How to choose a savings account
Annual percentage yield
Your savings account’s annual percentage yield can help you earn more on your savings. The higher the APY, the more you can earn. Compare rates across multiple banks to figure out which accounts offer the best return on your money.
If your bank doesn’t offer a competitive APY, compare rates among banks you feel comfortable with. There’s no harm in opening multiple savings accounts, but make sure you can meet any minimum balance or deposit requirements.
For instance, you may keep your traditional savings account if it’s linked to your checking account. But you can also open a high-yield savings account to earn better interest on your money.
Online vs. brick-and-mortar bank
Think about how you prefer to manage your money. If you’re teaching a kid or teenager financial literacy, you may choose a bank with a physical location.
Banks with branch access can come in handy if you need to deposit or withdraw cash, said N’Jie-Konte. Some online-only savings accounts don’t offer ATM access or cash deposits, but you can transfer money between accounts when you need to.
If you aren’t worried about access to cash, an online bank generally offers lower fees and better savings rates. But N’Jie-Konte notes that feeling comfortable with your financial institution is also important. If you feel safer having a bank you can walk into and don’t mind the tradeoff of lower savings rates, a big bank, local credit union or neighborhood financial institution may be the right place to keep your savings.
If earning higher interest and having access to physical branches is important, consider a savings account at a bank that offers both, like Capital One or Citibank.
Savings account requirements
Aside from choosing a bank that offers a competitive return and how you want to manage your money, make sure you can meet minimum balance or deposit requirements. Also watch out for APY thresholds -- some banks may offer a high rate, but only for the first $5,000 of your savings. After that, your APY may drop.
“I prefer to work with a bank that gives me an interest rate that’s the same for all my money,” said Soledad. Before opening an account, she suggests reading the fine print to understand the account’s terms and make sure you feel comfortable with any requirements and avoid any surprise fees.
Account features and perks
How you manage your savings account matters. Most banks offer mobile check deposits to your savings account. However, online-only banks tend to have longer transfer times when moving money between accounts. So, you may have to wait around three days instead of withdrawing money from an ATM with a traditional savings account, said Soledad.
What to know about savings accounts
How do savings accounts work?
Savings accounts work similarly to most bank accounts -- you can deposit and withdraw money, and you may earn compound interest on your balance. Some savings accounts provide different interest rates based on your balance. Traditional savings accounts typically offer between 0.01% and 0.15%, while the average high-yield savings account APY is closer to 5.00%.
However, some savings accounts will charge monthly maintenance fees -- usually traditional, brick-and-mortar banks. These fees can usually be waived by maintaining a minimum balance or reaching a minimum threshold of direct deposits per month.
And some banks limit you to six withdrawals per month from your savings account before charging an excessive withdrawal fee.
Different types of savings accounts
There are savings accounts available for various types of people, including students, seniors, veterans, small-business owners or high-net-worth individuals. In general, however, there are four main types of savings accounts.
Traditional savings account: Usually, you’ll find a traditional savings account at a brick-and-mortar bank or local credit union. And oftentimes, this account is connected to a checking account. You won’t earn much interest compared to high-yield savings accounts. You’ll have ATM access to make cash deposits and withdrawals. Most of these accounts are still limited to six monthly withdrawals, although ATM withdrawals can sometimes be excluded from that restriction.
High-yield savings account: A high-yield savings account works just like a traditional savings account, but offers rates several times higher than the national average of savings account APYs. These accounts are mostly at online banks, credit unions and neobanks. You won’t have in-person access, so you must be comfortable managing your account online. There may also be a limit on the number of withdrawals you can make per month, and some may not be linked to ATM networks, which means you’ll pay an ATM fee if you need to withdraw or deposit money from an out-of-network ATM.
Money market account: A money market account bridges the gap between a checking and savings account. This account usually requires a higher balance to earn interest and keep your account in good standing. And you may only be able to make a limited number of withdrawals per month. However, many money market accounts come with more checking account features, such as a debit card, ATM access and check writing abilities.
Note: Money market accounts aren’t the same as money market funds.
Certificates of deposit: A certificate of deposit, or CD, offers a fixed interest rate for a set period of time. But if you withdraw your money before the CD term ends, you’ll pay an early withdrawal penalty, which is usually a few weeks or months of interest -- depending on the bank. And CDs only allow a one-time deposit. Most CDs have terms from three months to five years.
Specialty CDs give you more flexibility, such as an add-on CD, which lets you make additional deposits after the first one, and a no-penalty CD, which lets you withdraw money without paying a fee.
Pros and cons of opening a savings account
Pros
You can earn interest on your savings account balance.
Balances at federally insured banks and credit unions are protected by the Federal Deposit Insurance Corp. or National Credit Union Administration for up to $250,000 per person, per institution.
A savings account is considered low risk since your money is insured and doesn’t face market volatility.
Cons
Other low-risk savings options may pay higher interest rates on deposit accounts.
Limited withdrawals, depending on the bank.
Some banks charge monthly maintenance fees that can tap into the interest you earn.
How much should you keep in a savings account?
The FDIC or NCUA insures balances on savings accounts 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
After you’ve narrowed down which account you want to open, complete the bank’s application process. Here’s what to expect.
- Complete the application process at your chosen bank or credit union. Many financial institutions let you complete the application process online.
- Provide a government-issued form of ID to verify your identity. You’ll also be asked to include other personal information, such as your physical address and contact information.
Follow the prompts to complete the application and make the minimum deposit if your bank requires one. It’s best to follow security practices and enable features when completing the application to protect your information.
The bottom line
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.
FAQs
Most checking accounts are used to manage routine financial transactions such as rent or utilities, whether via a debit card, paper check or mobile app. And most checking accounts don’t offer interest; those that do usually provide a very low rate of 0.1% or less.
While traditional savings accounts offer rates that are normally well below the national average, online-only banks typically offer the highest yields for savings accounts. These accounts provide a safe place to store money while keeping it accessible to withdraw penalty-free when needed. However, savings accounts don’t have debit card access or check-writing privileges.
In the past, the Federal Reserve limited account holders to six withdrawals a month (to preserve liquidity for financial institutions). In response to the pandemic, the Federal Reserve suspended Regulation D, allowing unlimited money withdrawals without a monthly fee penalty. However, some financial institutions may continue to limit the number of withdrawals.
In the US, the Federal Reserve sets a target rate range, which may influence the specific interest rates set by individual banks. When the Fed raises the federal funds rate to combat rising inflation, mainly online-only banks increase rates, too, allowing them to attract new depositors and grow their lending operations. But large banks with traditional savings accounts may not change the rates with the same frequency.
Yes. Your bank will send you a 1099-INT form each year when your savings account earns more than $10 in interest, which you’ll need to include in your tax return.
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. Since the Fed continues to push rates higher, APYs for deposit accounts like savings accounts and CDs have also risen over the past few months.
Our 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
- Ally
- American Express
- Axos
- Bank of America
- Barclays Bank
- Bask Bank
- Bread Savings
- BrioDirect
- BMO Alto
- Capital One
- Chime
- CIBC Bank
- CIT Bank
- Citi
- Citizens Access
- CommunityWide Federal Credit Union
- Consumers Credit Union
- Discover
- Dollar Savings Direct
- EverBank
- Laurel Road
- Lending Club
- Marcus by Goldman Sachs
- My Banking Direct
- Nationwide
- Newtek Bank
- PenFed Credit Union
- PNC
- Popular Direct
- Quontic Bank
- RBMax
- Rising Bank
- Sallie Mae SmartyPig
- Schwab Bank
- Synchrony
- Upgrade Premier
- Varo
- Vio Bank
- Wells Fargo
- UFB Direct
- Upgrade Premier
- TAB Bank
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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.
