Consumer Advocacy
What you need to know
Savings Accounts
  • Online savings accounts typically have higher yields.
  • APY can vary from month to month.
  • Most online savings accounts do not provide an ATM card.
  • Federal Reserve Regulation D limits the number of withdrawals from a savings account.
Our Approach

How we analyzed the best Savings Accounts

Rates & fees
Higher APYs mean higher returns for account holders, while fewer bank fees mean more money staying in the account.
Balance Requirements
We considered the balances required for opening and maintaining a savings account and determined whether those minimum balances affected a customer’s ability to open the account.
Availability & Type of Financial Institution
Is it an online bank or is it brick-and-mortar? Is it a credit union or a national bank? We looked at all types of financial institutions to find the ones with the best savings accounts.
Financial Stability & Ratings
A financial institution’s stability is essential when you’re trusting it with your savings. We looked at FDIC membership and insurance, as well as the ratings from the main credit rating agencies.
Customer Support
24/7 customer service, mobile banking (including check deposit), and an easy-to-navigate website with educational material, are just some of the features we looked at when ranking companies.
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Online Banks

A convenient way to bank without having to set foot in a branch, online financial institutions can offer much higher APYs and fewer fees due to their lower operating costs. Accounts are also easier to open, needing only several clicks from a mouse to complete the process.   

Beneficial returns notwithstanding, online savings accounts also have their drawbacks. For the most part, they don’t offer ATM access. When considering that they generally don’t have physical branches where customers can go and make withdrawals in person, access to the funds becomes of paramount importance. 

Luckily, all of the following accounts allow customers to electronically transfer to and from them, either by ACH or wire transfer. Likewise, some online banks have a mobile app that allows mobile check deposits into the account. At the very least, online banks accept check deposits through mail, although the amount of time it takes to process the deposit can be burdensome.

This site does not include all companies or all available offers. Companies listed below are listed in alphabetical order.

Barclays Online Savings

Best with No Minimum Deposit - Visit page

Screenshot barclays.com. Taken October 2019.

Promoted as having rates 22 times the national average, Barclays Online Savings stands out as a high-yield account with no minimum balance requirements for opening the account. There is also no minimum balance required to keep the account open, but the fine print on their webpage states that “for interest to post to your account you must maintain a minimum balance that would earn you at least $0.01.” For practical purposes, that’s less than a dollar.  

Although Barclays’ website is sparse and does not contain informational material, a noteworthy feature is the Savings Assistant. Many other company websites prominently display savings calculators, but Barclays offers one that also lets customers set several savings goals and keep them up-to-date, which comes in handy if you want to save for a car, a vacation, and for home improvements.

 

Minimum Deposit

Minimum Balance

Monthly Fees

Mobile Deposit

ATM Withdrawal

Online Savings

$0

$0

$0

Yes

No

CIT Bank Savings Builder

Best High-Yield Account - Visit page

Screenshot cit.com. Taken February 2023

CIT Bank’s Savings Builder is a tiered interest rate account that boasts one of the highest APYs on the market. The account consists of a base tier (balance < $25,000) and an upper tier (balance ≥ $25,000 or monthly deposits of $100). The tier determines the APY applied.

Although the requisite minimum balance for the upper tier is substantial, customers who can afford to deposit $100 monthly can bypass that requirement and enjoy the same high-yield APY. Even so, account holders who cannot meet the requirements for the upper tier may still receive a reasonable rate in the base tier.

CIT Bank also offers another attractive savings account, the Premier High Yield Savings, with a competitive APY for customers that cannot comply with the Savings Builder’s deposit requirements

 

Minimum Deposit

Minimum Balance

Monthly Fees

Mobile Deposit

ATM Withdrawal

Savings Builder

$100

$0

$0

No

No

Discover™ Online Savings

Least Amount of Fees - Visit page

Screenshot discover.com. Taken February 2024.

Better known for its credit card products, Discover™ Bank also offers online deposit accounts, including a high-yield savings instrument. Besides its competitive APY, the account’s strongest characteristic is having no account fees.  

Zero monthly maintenance fees are standard practice in the online savings account industry, but Discover takes it further by having no charges for official bank checks, deposit items returned, excessive withdrawals, stop payments, insufficient funds, or account closures. Wire transfers do carry a $30 charge, though that’s in line with most other banks. 

In contrast to some of its other competing, exclusively online financial institutions, Discover provides 24/7 customer service over the phone by U.S.-based banking specialists, a welcome benefit from a bank with no physical locations. 

 

Minimum Deposit

Minimum Balance

Monthly Fees

Mobile Deposit

ATM Withdrawal

Online Savings

$0

$0

$0

Yes

No

 

Other Online Bank Options

Vio Bank High Yield Online Savings:

Vio Bank is the online division of MidFirst Bank, and offers far and away the highest APY of all the companies we reviewed. The account does require a minimum deposit of $100 and can charge some fees (such as $10 for every withdrawal in excess of six), but none of them are monthly service fees and the high returns make these inconveniences easy to bear.

Betterment Everyday Savings:

Betterment is, strictly speaking, not a bank, but rather acts as an agent that manages customer’s accounts through other “deposit banks”. In this way, it provides the same services as a regular online bank, and its Everyday Savings account checks off the expected features customers look for: high APY, no fees, access to the funds by way of electronic transfer, and FDIC insurance.  

American Express High-Yield Savings:

The AMEX brand is known worldwide as a pioneer in the creation of the modern credit card. However, it also manages deposit accounts through its online bank. Featuring savings instruments in the form of CDs and the High-Yield Savings account, AMEX provides an above-average APY, no maintenance fees, and a straight-forward but helpful webpage.  

Marcus by Goldman Sachs Online Savings:

Even though Goldman Sachs is a financial behemoth with 150 years of existence, it has only recently begun to explore the online banking arena. Launched in 2016, Marcus by Goldman Sachs is an online platform that specializes in non-secure loans and a high-yield savings account that offers stellar returns and no maintenance fees.

Account Name

Vio Bank High Yield Online Savings

Betterment Everyday Savings

American Express High Yield Savings

Marcus by Goldman Sachs Online Savings

Minimum Deposit

$100

$10

$0 (must be funded within 60 days after opening)

$0 (must be funded within 60 days after opening)

Minimum Balance

$0

$0

$0

$0

Monthly Fees*

$0

$0

$0

$0

Mobile Deposit

Yes

No

No

No

ATM Withdrawal

No

No

No

No

* Monthly fees refer to maintenance or service fees. Additional fees, such as overdraft, stop payments, wire transfers, and others will vary depending on the financial institution.

Brick-and-Mortar Banks

Brick-and-mortar banks are simply those that have physical locations outside of their online platforms. All of the following financial institutions do offer online savings accounts, but they also manage branches or regional offices. Brick-and-mortar banks are a good option for customers who prefer direct, in-person contact with tellers and representatives and those who prefer conducting their transactions in the material world.

In most cases, brick-and-mortar banks offer traditional savings accounts, the kind of accounts with low interest rates but with the benefit of ATM withdrawals. Their high-end savings accounts (those with greater APYs) tend to require either large initial deposits or considerable minimum balances. 

They also offer savings accounts geared towards specific goals, such as saving for college and buying a car, or for specific consumer types, such as students, parents with small children, and retirees. 

Nowadays, however, more and more brick-and-mortar banks are promoting high-yield savings accounts as a way to compete with online banks and draw in customers with higher APYs and fewer fees.

North American Savings Bank 

Best Product Variety - Visit page

Screenshot nasb.com. Taken October 2019.

Owning a high-yield savings account should be a priority, but having other types of savings accounts can serve different purposes as well. North American Savings Bank (NASB) has a varied savings account offering to meet most savings needs. 

Although NASB only has branches in the Kansas City metro area, they provide online enrollment for their product line, including their numerous savings accounts. These include:

  • Deposit the Difference Savings - For use in conjunction with an NASB checking account, every purchase made with an ATM gets rounded up to the next dollar and the difference is deposited directly into this account. 

  • Statement Savings - A savings account with hassle-free access to the funds just like a checking account, but gaining some interest along the way.

  • Stepping Stones Savings - Designed for young customers aged 18 and under, as a way of learning the basics of saving responsibly and managing their finances.

  • Smart Saver Savings - For customers beginning their financial journeys, with required monthly deposits as a way to foster a savings habit.

  • Performance Savings - Tiered savings account with higher-than-average APYs.

As an additional feature, the NASB website promotes their financial education platform, the NASB University. Here, customer will find tools and resource material to better understand the financial world with all its intricacies. 

PenFed Premium Online Savings

Best Credit Union - Visit page

Screenshot penfed.org. Taken October 2019.

The nation’s third-largest credit union, PenFed offers a high-yield account called Premium Online Savings that holds its own against any online savings account on the market, with a high APY, low minimums, and no monthly fees. 

But what sets PenFed apart is that it offers both the convenience of an online account and branch locations across the United States. To open an account you need to be a member of the credit union, but anyone can apply for membership by meeting certain criteria and it's as easy as completing an online form. 

Since PenFed is a credit union, its accounts are not insured by the FDIC but by the National Credit Union Administration (NCUA); up to $250,000 for each account holder.

Nonetheless, customers with high deposit balances might consider other alternatives, since the account does not earn interest for daily balances over $250,000.

 

Minimum Deposit

Minimum Balance

Monthly Fees

Mobile Deposit

ATM Withdrawal

PenFed Premium Online Savings

$5

$0

$0

Yes

No

PNC Bank Virtual Wallet Student

Best for Students - Visit page

Screenshot pnc.com. Taken October 2019.

Although not exclusively a savings account, PNC’s Virtual Wallet Student offers qualifying customers checking, short-term savings, and long-term savings sections all in the same instrument. 

The three sections are:

  • the Spend account: a non-interest bearing checking account with ATM included.

  • the Reserve account: an interest-bearing savings account designed for short-term goals, such as a trip 

  • the Growth account: also an interest-bearing savings account, but for long-term financial goals, such as a down-payment on a home. 

In addition, PNC partners with dozens of universities across the country that offer unique benefits and features for students that open the account. 

PNC also provides tools and educational material to help students who are just starting their financial journey. This can include everything from personal finance lessons, to budgeting and spending tips, and easily accessible calendars and alerts, so that account holders can stay on top of their finances at all times.   

 

Minimum Deposit

Minimum Balance

Monthly Fees

Mobile Deposit

ATM Withdrawal

Virtual Wallet Student

$0*

$0

$0

Yes

Yes

*If opened online

Other Brick-and-Mortar Options

Capital One 360 Performance Savings:

Capital One not only provides an easy-to-navigate and practical online experience (via their web banking tools and mobile app), but they’ve also innovated physical banking. In addition to its full-service branches, the company has also opened Capital One Cafes all across the country. 

These spaces provide wifi, power outlets, no-fee ATMs, and in-person help from financial coaches. Taking the place of traditional bank tellers, Capital One’s ambassadors can assist any customer requiring assistance in opening accounts such as the high-yield 360 Performance Savings account. 

Alliant Credit Union High-Rate Savings:

With a high APY and the ability to withdraw money from ATMs, Alliant Credit Union’s High-Rate Savings account is a balanced mix of everything a customer might look for in a savings account. The only drawback, if you can call it that, is the $100 minimum daily average needed to earn interest. Although other financial institutions offer $0 minimum balances, $100 is still a reasonable amount to maintain.

HSBC Everyday Savings:

For customers that wish to have access to their funds via ATM, physical branch or online, and who don’t require a high rate of return, HSBC offers several savings accounts. We highlighted their Everyday Savings account because it’s easy to open and doesn’t require previous account ownership in HSBC, as opposed to their Premier and Advanced Savings accounts, which do require an existing HSBC checking account. HSBC also has an online-only, high-yield savings account called HSBC Direct Savings, but it works separately from their branches. 

Account Name

Capital One

360 Performance Savings

Alliant Credit Union High-Rate Savings 

HSBC Everyday Savings

Minimum Deposit

$0

$5

$0

Minimum Balance

$0

$5 to keep open; $100 daily average to earn interest.

$500 to avoid the monthly service fee

Monthly Fees*

$0

$0 if you receive eStatements; $1 for each paper statement

$5 if Average Ledger Balance is below $500

Mobile Deposit

Yes

Yes

Yes

ATM withdrawal

No

Yes

Yes

* Monthly fees refer to maintenance or service fees. Other fees, such as overdraft, stop payments, wire transfers, and others will vary depending on the financial institution.

Our Research

More insight into our methodology

Rates & fees

Understandably, we favored financial institutions that had high rates of return, meaning APYs greater than 1.00%, with some as high as 2.00%. Even so, accounts with lower APYs could still provide other advantages, such as ATM withdrawals or easy access to the funds, which could make up for the lower returns.

Balance Requirements

Accounts that did not have a minimum initial deposit were preferred, although accounts that required low sums (such as $10 or even up to $100) were also rated highly due to their accessibility.

Availability & Type of Financial Institution

We considered all types of financial institutions, with an emphasis on both online entities and brick-and-mortar banks. However, as we’ve found, brick-and-mortar institutions are also heavily concentrating on their online services and features.

Customers who want in-person service and ATM access would do well to choose a brick-and-mortar bank, while those that prefer to do things electronically can get by with online banks.

We also looked at credit unions as an alternative to traditional large banks.

Financial Stability & Ratings

Of course, one of the primary goals of owning a savings account is to generate interest with the money you’re setting aside. But that can’t happen if the financial institution you choose is not on the up and up. 

To verify the stability and transparency of the financial institutions we reviewed, we made sure that each of them could secure your funds and could guarantee their protection. For this, we looked at their ratings from principal financial agencies such as Moody’s and Standard & Poor’s. 

Being a member of the Federal Deposit Insurance Corporation (FDIC) was also an important factor. Institutions that we chose that are not members of the FDIC at least offer FDIC insurance on the deposited funds. Credit unions can’t belong to the FDIC but they have their own federally-administered insurance from the National Credit Union Agency (NCUA).

Customer Support

Financial institutions with streamlined processes and accessibility are always going to score high on our ratings. 24/7 customer service is preferred, but having at least extended business hours (either by phone or online) is a plus. We highly valued mobile and online banking, particularly for mobile check deposit, a tried-and-true time-saving feature. 

Helpful information about Savings Accounts

Surveys have shown that more than half of Americans do not have enough in savings to cover a $1,000 emergency, such as car trouble or medical bills. It’s a hard truth that many people in the United States are living paycheck-to-paycheck. Under this stark reality, it’s no wonder that personal savings rates are at a 10-year low.

But why should we save? And, more importantly, how do we save?   

Benefits of a Savings Account

Saving can serve many purposes, both in the short-term and in the long run. It can help you set aside some money as an emergency fund for life’s unexpected expenses. It can help you reach your goal of building up enough funds for a home’s down payment. And it can generate additional wealth so that you can eventually retire.

We spoke with Dr. Barbara O’Neill, Distinguished Professor at the Rutgers School of Environmental and Biological Sciences, to get a sense of what consumers can do to kick start their saving habits and how savings accounts play a role in that.

Keeping your money under the mattress is not an option, because it doesn’t generate any returns and it’s not insured. The importance of a savings account, Dr. O’Neill says, is that it keeps your money safe and generates at least some interest. It is for these reasons that the mere act of saving is a positive in and of itself.

Dr. O’Neill also provides us with an additional factor to consider: by opening a savings account you’re entering into a relationship with a financial institution. If, at some point, you want to take out a loan or make use of credit services, having an already established relationship can lead to better rates and offers.

Having a Financial Plan

Savings accounts are an integral part of your overall financial plan but they’re not the only component. It all depends on your financial situation and goals. 

Short-term goals require accessible funds in cash-equivalent assets such as savings accounts, money market accounts, and CDs. These instruments also take care of practical issues, like maintaining an emergency fund and what Dr. O’Neill calls ‘holding money.’

Emergency funds are there to take care of unplanned expenses. That can range from medical emergencies to car problems to uninsured losses. Emergency funds would ideally also cover you for several months in the event of sudden unemployment. 

Your holding money, explains Dr. O’Neill, is money you save to cover recurring, but not necessarily monthly, expenses. Say you have bills that come due every couple of months such as insurance premiums or property taxes. By setting aside the funds on a monthly schedule, you’re preparing yourself for the upcoming payment and won’t have to fork over a large and sudden lump sum.

Long-term goals, on the other hand, require investments. You’re trying to save enough to live off of that investment after you retire, so you want an instrument that can deliver high returns, like stocks, bonds, mutual funds, ETFs, and others. Savings accounts are not an ideal instrument for long-term goals of this kind because of their low returns.

How to Save When You Think You Can’t 

Dr. O’Neill advices that we should “take advantage of sources of free money” in order to maximize our savings potential. For people who have employer matching on retirement savings accounts, this includes contributing to their 401ks or 403(b) plans.

Low-income families and individuals can take advantage of programs such as Individual Development Accounts (IDAs), which are run by community non-profit organizations and which function as matched savings accounts. IDAs can help people save so they can reach certain goals such as going to school, buying a home, or starting a small business.

But there are many other savings strategies that low-income households can adopt. Many websites have budgeting calculators and provide tips and guidance, for instance. Dr. O’Neill herself has developed several savings challenges where individuals put away a prescribed amount per day or per week, depending on the challenge, and at the end of the month they have some money saved.

The challenges don’t need to be followed to a tee, said Dr. O’Neill, as they are more of a roadmap towards saving. Each person’s cash flow and financial reality will vary, but the important step is to save what you can, when you can, and turn it into a habit. In order for the challenges to work, having a savings account is essential.

In fact, they can make saving that much easier by integrating automation. Programming an automatic transfer from checking to savings or enrolling in services that round up your ATM transactions to the next dollar, and then deposit the difference in a savings account, can help you save without even thinking about it. 

In the current economic climate, it can seem as if saving is an uphill battle. And in many cases, it’s justifiable to think that way. But when we look at the benefits of owning a savings account, the ways in which it can help us reach financial security even if it’s little by little, and the options we have to get our foot in the door, Dr. O’Neill’s words ring true: “the biggest mistake is not saving at all.”

Consider This

Read the fine print

When opening a deposit account or savings instrument, financial institutions are required to provide the terms and conditions under which you enter into an agreement. Since these disclosures are lengthy and monotonous, most consumers don’t actually bother reading them through.

However, as with any contract, understanding the terms in advance prevents any future surprises, such as unexpected fees, charges, or changes in your accounts.   

Additionally, not reading the fine print can keep you from reaping the full array of benefits a savings account can offer. Some accounts require a minimum balance before the APY kicks in. Others charge fees if those same minimum balances are not maintained. This is important because if your money isn’t generating enough interest, and fees are being taken out of your available balance, you’ll end up losing money instead of making it.

Shop around and compare at least three accounts

The experts we consulted were unanimous in their assessment that consumers can gain a lot by comparison shopping, and online savings accounts have made this part of the process much easier. Instead of having to visit banks personally, consumers can now use online resources to view each financial institution’s offerings and their characteristics.

By taking a good, side-by-side look at the different APYs, fees, minimum balances, and other features that competing accounts offer, consumers can pick and choose what works for them. As with most products and services we review on this site, we find that consumers always benefit when comparing at least three (but preferably more) companies before making a final decision. Having all the information at hand makes for a more informed purchasing process.

Whenever possible, manage more than one type of savings instrument

A healthy and prosperous savings strategy should include the use of many different savings instruments. What kinds of instruments to use will entirely depend on the long- and short-term goals of the consumer, as well as their current financial situation.

Long-term savings goals such as retirement necessitate different investment options -IRAs, bonds, stocks, annuities, and others- to produce wealth. Although riskier by nature, they generate sufficient returns to achieve lofty goals, such as retiring at 65 without having to worry (that much) about money. 

For long-term goals, only having a savings account will simply not do. But that doesn’t diminish their usefulness. Savings accounts are, in fact, quite necessary for short-term financial goals and everyday living. 

Since investments are meant to be left alone doing their thing, they can’t be counted on as readily available funds for emergencies or large purchases. On the other hand, savings accounts are useful for setting some money aside as a rainy day fund or as easily accessible cash, while at the same time generating modest gains.

Other instruments, such as Money Market Accounts or Certificates of Deposit (CDs) work in similar ways as savings accounts and can be useful for specific goals, such as saving for a home’s down payment, a dream wedding, or a much-needed vacation.

Diversity in savings instruments and sound financial planning can prepare consumers for any curveballs life throws at them. 

FAQs about Savings Accounts

What is the APY

The Annual Percentage Yield (APY) is the return you earn on your money over a year, including compounded interest. 

Although commonly confused with the interest rate, the APY rate is higher because it includes the interest generated during the compounding periods (365 occasions if it’s daily, 12 if it’s monthly). That is, the interest generated on your interest. Huh? Yeah, I know, math is hard. 

Let’s try an example: if you start with an initial deposit of $1,000 with a 2.00% simple interest rate (which means it’s not compounding interest) at the end of the first year you would have a balance of $1,020. 

However, if the interest is compounded daily and you have a 2.00% APY, at the end of the year the available balance would be $1,020.20. Not much, right? Over longer periods, and with larger amounts, the interests quickly add up.

What are the fees associated with savings accounts?

Savings account fees vary depending on the financial institution and can come in many forms and for varying amounts. The most common fees associated with savings accounts are monthly maintenance fees, though many online savings accounts waive them. 

However, other fees related to the account’s balances or its use can occur. For example, not maintaining a predetermined minimum balance on the account can lead to a charge at the end of the statement period. 

Account inactivity can also lead to bank fees. When an account is not used — if there are no deposits, withdrawals, or payments made in, say, two years — banks can levy inactive fees. These can continue and consume the deposited money until the account is reactivated by the customer.

Furthermore, transfer fees are issued when customers move money from their accounts to another bank or vice versa. 

Account-holders are encouraged to read the terms and conditions before opening an account, as these documents must always state the types of fees that may be incurred. 

How often can I withdraw from my savings?

You can only withdraw from your savings account up to 6 times per month, due to a federal reserve rule known as Regulation D. If you go over the withdraw limit, banks can sanction you by charging you certain fees, converting your savings account into a checking account, or even closing your account entirely. However, Regulation D only applies to specific forms of withdrawals that include online, phone, automatic, or pre-authorized transactions. Other transactions, such as ATM withdrawals, do not count to the withdrawal limit, although some online banks might also have limits for these as well. To know about specific withdraw limits, research the bank’s website or ask them directly through email, phone or chat.

What is an ACH transfer?

An ACH transfer is an electronic method for moving money between accounts in different banks. These transactions are processed through the Automated Clearing House (ACH) network. ACH transfers are used to process bill payments and direct deposits such as payroll, tax refunds, governmental benefits, and interest payments, but they can also be used to transfer money from one bank to another. Compared to wire transfers, which are processed individually and, in most cases, carry incoming or outgoing transfer fees, ACH transactions are processed in batches and are therefore more cost-effective (some banks don’t charge for these types of transactions). ACH transfers may take between two to five business days to complete, depending on the financial institution. As such, customers are encouraged to read each bank’s policies regarding ACH transfers to understand the terms and conditions that apply.

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