The right savings account can help you grow your money faster. Top accounts offer annual percentage yields up to 5% -- more than 12 times the national average rate of just 0.38%. And with a variety of banks competing for your business, there's no reason not to switch to one that pays you way more for keeping your money with them.
Our Picks
To make it easier for you to choose, we've narrowed down the top savings accounts we think are worth checking out.
Best savings accounts
It’s important to monitor savings account APYs, as they’re variable and can change at any time. Here’s a look at CNET’s top-ranked savings accounts.
| Bank | APY | Min. deposit to open | Branch access |
|---|---|---|---|
| Ally Bank | 3.50% | $0 | No |
| EverBank | 4.30% | $0 | No |
| Capital One Bank | 3.50% | $0 | Yes |
| TAB Bank | 4.15% | $0 | No |
| Newtek Bank | 4.35% | $0 | No |
| Discover | 3.50% | $0 | No |
| Laurel Road | 3.80% | $0 | No |
| Synchrony Bank | 3.80% | $0 | No |
| Varo Bank | 2.50% - 5.00% | $0 | No |
| Bask Bank | 4.20% | $0 | No |
| LendingClub | 4.40% | $0 | No |
| BMO Alto | 3.60% | $0 | No |
| Marcus by Goldman Sachs | 3.65% | $0 | No |
Ally’s online savings account pays a competitive APY on all balances, with no monthly fees or minimum balance requirements. We like Ally’s digital tools to help you reach your savings goals. Saving buckets allow you to organize your goals as sub-accounts, and savings boosters can help you automate savings.
While you can’t deposit cash with Ally, a fee-free network of more than 43,000 ATMs and a $10 per month ATM fee reimbursement make it easy to access your money when you need it.
- APY: 3.50%
- Minimum deposit to open: $0
EverBank, formerly TIAA, offers a high-yield savings account with a 4.30% APY on all balances. The bank has several physical branches in Florida, but its online tools and mobile app make opening and managing an account seamless from anywhere in the US. We also like that you can access your money from a network of 100,000 fee-free ATMs and get reimbursed for up to $15 per month in non-network ATM fees.
- APY: 4.30%
- Minimum deposit to open: $0
There are no monthly maintenance fees or minimum balance requirements for Capital One 360 Performance Savings. Because Capital One doesn’t offer ATM cards or checks, you’ll need to visit a physical branch to withdraw your cash or transfer money. This savings option may work best as a complement to your 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.
- APY: 3.50%
- Min. deposit to open: $0
TAB Bank, an online-only bank, caters to transportation industry employees such as truckers. There’s no minimum balance or deposit required, and you need only 1 cent in your account to start earning interest.
We like that you can sign up for mobile alerts and text messages about your account activity. For example, you can receive alerts about withdrawals when your account balance falls below a certain amount. TAB also has extended customer service hours — Monday through Friday from 6 a.m. to 7 p.m. MT and Saturdays from 9 a.m. to 3 p.m. MT, excluding federal holidays.
- APY: 4.15%
- Min. deposit to open: $0
Newtek Bank is an online-only subsidiary of Newtek One, a financial services business company. It offers an attractive APY for all balance levels, but you can make only six withdrawals per statement cycle. Like Capital One, this account doesn’t come with an ATM card, so you’ll need to be comfortable transferring money online.
You can open as many personal banking accounts as needed and manage them all through an online banking platform or mobile app. If you don’t want to manage your account online or need to make more than six withdrawals a month, it’s best to consider other options.
- APY: 4.35%
- Min. deposit to open: $0
Discover Bank offers a competitive APY on its online savings account. We like that Discover eliminated most fees on its deposit accounts in June 2019 — you won’t pay a fee for official bank checks, excessive withdrawals or closing the account.
Discover Bank is an online-only bank that doesn’t accept cash deposits or offer in-person assistance, so your account is managed entirely online. However, the mobile app, network of 60,000 fee-free ATMs and 24/7 live customer support make Discover Bank worth considering.
- APY: 3.50%
- Min. deposit to open: $0
Laurel Road, the digital arm of KeyBank, offers an online savings account with no minimum deposit or balance requirements to earn its competitive APY. Like most online banks, Laurel Road doesn’t accept cash deposits, so you’ll need to transfer money electronically to fund your account.
Laurel Road began as a student loan originator in 2013. In 2019, it was acquired by KeyBank and now offers checking, savings and loan products primarily geared toward health care and business professionals nationwide. Its digital platform merges technology with banking services to offer a high-yield rate that applies to the entire balance.
- APY: 3.80%
- Min. deposit to open: $0
Synchrony’s high-yield savings account has no monthly maintenance fees or minimum balance requirements and offers a higher-than-average yield. 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 you to use non-network ATMs and reimburses you up to $5 per month for other banks’ ATM fees.
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 you repeatedly break the maximum number of withdrawals.
- APY: 3.80%
- Min. deposit to open: $0
The Varo Online Savings Account has 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 account balance. Note that any amount over $5,000 earns only 2.50% APY.
Varo Online Savings includes no monthly maintenance fees or minimum balance requirements. If your account balance remains at zero for nine months, Varo reserves the right to close your account.
- APY: 2.50% - 5.00%
- Min. deposit to open: $0
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 account ownership.
- APY: 4.20%
- Min. deposit to open: $0
LendingClub recently launched a LevelUp Savings account that rewards consistent savers with competitive rates. You’ll qualify for the highest rate if you deposit at least $250 per month. Deposits from any source — such as direct deposit or electronic transfers — count towards the minimum monthly requirement.
If your monthly deposit drops below $250 after the first two months, then the standard APY will apply. Both rates apply to the entire balance. We also like that the LevelUp Savings account doesn’t charge a monthly fee or have a minimum balance requirement.
- APY: 4.40%
- Min. deposit to open: $0
BMO Alto is the online-only arm of BMO Financial Group. BMO Alto offers two deposit accounts: the BMO Alto online savings account and the BMO Alto online certificate of deposit. While the savings account earns a competitive APY, it ranks lower on our best list because it doesn’t provide a mobile app to manage account transactions. Account access is available only through the BMO Alto website.
However, the savings account is still worth considering because there are no monthly fees, minimum deposits required to open or minimum balances to maintain. The unlimited number of transfers and withdrawals permitted is an added benefit.
This account is best paired with other bank accounts because it doesn’t provide a debit card or ATM access. Money in this account can be accessed or deposited only through externally linked bank accounts.
- APY: 3.60%
- Min. deposit to open: $0
Marcus by Goldman Sachs is the online-only banking arm of the investment behemoth. If you’re looking to manage all of your savings and investment accounts in one place, Marcus might be the right fit. This bank offers competitive savings rates, along with several interest-earning deposit and investment accounts.
In addition to high-yield rates, there’s no minimum required to open a Marcus online savings account, no monthly maintenance fee and no minimum balance requirement. You can also contact a live customer service representative 24/7.
- APY: 3.65%
- Min. deposit to open: $0
What is a savings account?
A savings account is an interest-earning deposit account that's often linked to checking accounts at financial institutions but can also be opened separately. It's designed to help you save for future expenses goals.
This type of account gives you the freedom to access your money when you want, whether depositing or withdrawing. That's what makes it ideal for funds you'll need on a whim, like your emergency fund.
Savings accounts at federally insured financial institutions are covered in the case of loss for up to $250,000 per person, per institution, making them a safe and low-risk place to park your cash.
Choosing between a HYSA and a regular savings account
It may be convenient to keep your savings and checking accounts at the same local brick-and-mortar bank you use for your checking account, especially if you've been with the bank for years and your accounts are already linked. But you may be missing out on competitive interest rates that can grow your savings.
A high-yield savings account offers a higher APY than traditional savings accounts and can be found at online banks and credit unions.
“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, CNET Money expert and CEO of Save My Cents, a personal finance education platform. These large banks offer barely any interest on your savings, she said.
Online-only banks don’t have physical branches to maintain, which means lower overhead costs. Those banks can pass some of these savings down to customers through higher interest rates and fewer fees on savings accounts. Brick-and-mortar banks often charge a monthly service fee and often offer a lower APY. Credit unions return their profits to members in the form of higher savings rates and lower loan rates, allowing them to offer competitive savings accounts.
However, there are some cases when a traditional savings account at a physical bank may work better for you. For example, if you’re a restaurant server who gets cash tips, it might make sense to have a savings account at a bank with physical branches, said Anna N’Jie-Konte, a CNET Money expert and certified financial planner.
You don't have to move all of your money to a new bank. CNET Money expert and founder of Crush Your Money Goals, Bernadette Joy, suggests keeping your everyday spending in your checking account at your brick-and-mortar bank for convenience. Then, you may link the account to a high-yield savings account to regularly transfer money to your savings and earn interest.
"It’s a small shift that leads to greater long-term financial rewards," said Joy.
If you decide to switch to an online savings account, make sure the bank or credit union is insured by the Federal Deposit Insurance Corporation or National Credit Union Administration, said N'Jie-Konte. That way, your money is protected for up to $250,000 per person, per bank in case of bank failure. Another way to make sure the bank is insured is to look for the FDIC or NCUA certification number on the bank’s website, Saavedra said.
How to choose a savings account
When choosing a savings account, consider these factors.
The higher the APY, the more you can earn. Compare rates across multiple banks to determine 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.
Think about how you prefer to manage your money. If you’re regularly paid in cash, for example, you may choose a bank with a physical location. Some online-only savings accounts don’t offer ATM access or cash deposits , but you can transfer money between accounts when needed.
N’Jie-Konte notes that feeling comfortable with your financial institution is also important. If you feel safer with a bank you can walk into and don’t mind the trade-off of lower savings rates, a big bank, local credit union or neighborhood financial institution may be the right place to keep your savings.
Make sure you can meet any 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, for example. Before opening an account, read the fine print to understand the account’s terms and make sure you feel comfortable with any requirements to avoid any surprise fees.
How you manage your savings account matters. Most banks offer mobile check deposits to your savings account. 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 immediately from an ATM with a traditional savings account, Soledad said.
Pros and cons of opening a savings account
Savings accounts have plenty of benefits, but there are also some drawbacks to consider.
Pros and cons of opening a savings account
Savings accounts have plenty of benefits, but there are also some drawbacks to consider.
Pros
- Growing your savings: You can reach your savings goal faster by earning interest on your account balance.
- Federal protection: Balances at federally insured banks and credit unions are protected by FDIC or NCUA for up to $250,000 per person, per institution.
- Low risk: A savings account is considered a safe place to keep your money since it’s insured and doesn’t face market volatility.
Cons
- Other options may pay you more: Other low-risk savings options such as a CD may pay higher interest rates.
- Limited access to your funds: Some banks limit how many withdrawals you can make per month. If you need to access your money frequently, you could incur a fee.
- Fees: Some banks charge monthly maintenance fees that can eat into the interest you earn.
How to open a savings account
After you’ve narrowed down which account you want to open, complete the bank’s application process. While this varies from bank to bank, here’s what to expect.
- Choose a bank: Review different banks and credit unions to find the best option for your needs. Many financial institutions let you complete the application process online, but you can also open one in person if the bank has physical branches.
- Provide your information: Provide a government-issued form of ID to verify your identity. You’ll also be asked to include other personal information, such as your Social Security number or Individual Taxpayer Identification Number, physical address and contact information.
- Fund your account: 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 security features when completing the application to protect your information.
Alternatives to savings accounts
There are savings accounts designed for specific types of people, but you may be looking into other options for long-term savings or money you want to sock away to be less tempted to spend. Here are two options to consider.
Money market account: A money market account comes with checking account features, such as a debit card, ATM access and check-writing abilities, while also earning a competitive APY. However, you may be limited to a set number or withdrawals per month.
Certificate of deposit: A certificate of deposit offers a fixed interest rate on a one-time deposit for a set period. If you withdraw your money before the term ends, you’ll pay an early withdrawal penalty, which is usually a few weeks or months of interest, depending on the bank.
CNET reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions with nationwide services. Each account received a score between one (lowest) and five (highest). The savings accounts listed here are all insured up to $250,000 per person, per account category, per institution, by the Federal Deposit Insurance Corporation or National Credit Union Administration.
CNET evaluates the best savings accounts with a set of established criteria that compares annual percentage yields, monthly fees, minimum deposits or balances, and access to physical branches. None of the banks on our list charge monthly maintenance fees. An account will rank higher for offering any of the following perks:
- Account bonuses
- Automated savings features
- Wealth management consulting/coaching services
- Cash deposits
- Extensive ATM networks and/or ATM rebates for out-of-network ATM use
An account will rank lower if it doesn’t have a professional-looking website or doesn’t provide an ATM card or if it imposes restrictive residency requirements or fees for exceeding monthly transaction limits.
Alliant Credit Union, Ally, Amerant, America First FCU, American Express, Apple Federal Credit Union, Bank of America, BankPurely, Barclays, Bask Bank, Bellco Credit Union, Bethpage, BMO Alto, BMO Harris, Bread Savings, Capital One, Chase, CIBC Bank, CIT Bank, Citizens, Citizens Bank, Community Wide Federal Credit Union, Connexus Credit Union, Consumers Credit Union, Discover, Dollar savings Direct, First Internet Bank of Indiana, Forbright, Laurel Road, LendingClub, Marcus by Goldman Sachs, My Banking Direct, Newtek Bank, Panacea Financial, PenFed Credit Union, PNC, Popular Bank, Quontic Bank, RBMax, Rising Bank, SoFi, Synchrony, TAB Bank, TIAA Bank, U.S. Bank, UFB Direct, Upgrade Premier, Varo, Wells Fargo
