Best Savings Accounts for Increasing Your Net Worth
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Savings accounts offer a great way to store your money, earn interest, automate savings, and prevent you from overspending. While traditional and online banks offer savings account options, online banks typically have better savings account rates.
I’ll walk you through some of the best savings account options currently available on the market so you can find the right solution.
In this article
Overview of the 10 best savings accounts
Bank Name | Who’s it for? |
Ally Bank | High-interest CDs |
Marcus by Goldman Sachs | Online-only basic savings |
American Express National Bank | Frequent transfers |
Capital One | High rates and in-branch services |
Discover Bank | Savings with traditional checking |
Synchrony Bank | ATM access |
CIT Bank | Frequent deposits |
Barclays | Signup incentives and bonuses |
Varo | Overall savings account rates |
Better banking is here.
- No account fees
- Earn up to 4.20% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
10 best savings accounts
Ally Bank
Ally Bank has been one of the top names in savings accounts since it opened online in 2009. This online bank offers a high-yield savings account, certificates of deposit (CDs), and a money market account.
Ally’s savings account boasts a annual percentage yield (APY) (on all balance tiers) and is completely free (no minimum deposit requirements, monthly maintenance fees, or minimum balance requirements). Ally does not offer debit card service accounts, but if you sign up for online checking (which also earns interest), you’ll receive ATM access and be able to transfer money back and forth.
I love that Ally’s savings rates are competitive, and I am a big fan of its intuitive online banking platform and mobile app. Its no-penalty CD is a huge advantage over competitors, but this bank is a great option for anyone looking for high APY.
Read a full review on Ally Bank.
Marcus by Goldman Sachs
Marcus by Goldman Sachs offers online savings options with competitive interest rates. It has a high-yield savings account and various CD products.
Marcus’s high-yield savings account boasts a APY and is completely free. There are no monthly fees or deposit requirements, but it caps off same-day transfers at $100,000. However, there is no checking option or debit card access, so you must transfer from direct deposit or another account.
I like how easy Marcus is to use and how transparent this bank is about fees and limitations. What you see is what you get with Marcus, and it would make a perfect savings option for anyone not looking to withdraw money frequently.
American Express National Bank
American Express offers great online savings options, particularly for existing credit card customers. It offers a high-yield savings account and a CD option.
American Express’s high-yield savings account offers APY, a standard rate for most online banks. This online option has no monthly fees, minimum balance, or deposit requirements. On the downside, there’s no checking account option or ATM network, so you’ll need another account to transfer deposits.
Capital One
Capital One’s innovative 360 banking options offer great online and in-branch savings products. It offers a high-yield savings account, kids' savings account, and CDs.
Capital One’s primary savings account is its 360 Performance Savings. This savings account boasts a APY for all balance tiers) and is completely free (no monthly fees or minimum deposit requirements). It also offers a high-interest savings option for minors. Capital One does offer a checking option with ATM access that you can use to transfer money between your checking and savings accounts.
Capital One’s rates for savings accounts are solid compared to a few of its online competitors and offer in-branch services. Capital One might be a good option if you’re looking for an online bank but still want in-person service.
Discover Bank
Discover offers online savings account options, including a high-yield savings account, CDs, and money market account options.
Discover’s online savings account boasts a APY and is free (no monthly fees or minimum deposits). While it does not offer ATM access to this savings account, it does offer online checking with debit card access so that you can transfer funds between the two accounts.
Discover offers online checking and savings so you can more easily deposit cash and transfer funds.
Synchrony Bank
Synchrony Bank is an online banking solution that offers a top-notch high-yield savings account, two IRA savings options, CDs, and a money market account.
Synchrony Bank’s high-yield savings account offers a competitive rate — APY (for all balance tiers) — higher than most online banks. Like most online banks, this account is free, with no minimum deposit or balance requirements. Synchrony Bank offers ATM access, which is great for anyone looking for online savings options that don’t require checking accounts.
I like that Synchrony Bank has some of the highest rates available and offers you ATM access. Though some ATMs might charge you usage fees, it has no fees to worry about.
CIT Bank
CIT Bank offers online banking options, including savings products. It provides two online savings accounts, a large selection of CDs, and a money market account.
CIT Bank’s Savings Connect offers an APY of . You’ll need $100 to open a savings account and must meet $25,000 balance requirements or deposit $100+ monthly to earn the higher APY. It does not provide ATM access to a savings account but does offer a checking account that can be linked to transfer funds.
I wish CIT Bank did not have a deposit requirement to open an account, but I’m glad it’s only a $100 requirement (lower than Axos Bank’s requirement). I also like that you can earn higher savings by depositing regularly.
Barclays
Barclays is a UK-based bank that offers online savings solutions to U.S. customers. Its savings options include an online savings account and a CD.
Barclays’ online savings account has a APY (on all balance tiers) and is completely free (no monthly fees or deposit/balance requirements). It does not offer ATM access to savings accounts, so you need a separate account to transfer funds.
Varo
Varo is an online bank offering simple, transparent savings options. It offers a high-interest savings account.
Varo’s savings account has a APY, is completely free, and comes with a Visa card. However, if you meet certain conditions, your APY can be as high as 5.00%. There are no monthly fees or minimum balance requirements. On top of that, you get unlimited savings transfers and withdrawals, an option that's hard to come by in online banking.
Read a full review on Varo Bank.
Better banking is here.
- No account fees
- Earn up to 4.20% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Savings accounts summary
Bank | Type | Minimum Deposit Requirement | Monthly Fee (lowest charge) | Savings account APY% | ATM card access |
Ally Bank | Online only | $0 | $0 | ATM access through checking account | |
Marcus by Goldman Sachs | Online only | $0 | $0 | No | |
American Express | Online only | $0 | $0 | No | |
Capital One | In-branch and online | $15 | $0 | ATM access through checking account | |
Discover Bank | Online only | $0 | $0 | ATM access through checking account | |
Synchrony Bank | Online only | $0 | $0 | Yes | |
CIT Bank | Online only | $100 | $0 | ATM access through checking account | |
Barclays | Online only | $0 | $0 | No | |
Varo | Online only | $0 | $0 | Yes |
FAQs
Should I keep all of my money in one savings account?
This will depend on your savings goals. Some savings accounts offer higher APYs for lower balances, so if you’re saving for a certain goal that’s under this balance limit, it might make sense to take advantage of this higher interest rate and keep additional savings in another high-yield account. If you will be saving for a set period and do not need access to your funds, a high-rate CD like Ally Bank’s might make sense, while still maintaining a separate savings account as an emergency fund. If you do choose to keep only one savings account, make sure you choose one that fits your lifestyle and offers you access to the account as frequently as you’ll need it with an APY that will earn you additional money in interest.
How much money should you keep in your savings account?
It’s ideal to stow away 3-6 months worth of expenses in a savings account. If you need $2,000 per month to pay all of your expenses and bills, you’ll want to have $6,000 to $12,000 kept in a savings account. There’s no one rule for how much money to keep in savings and you might have multiple savings accounts for multiple reasons (emergency fund, vacation fund, college fund, new car fund, holiday fund, etc).
Can you lose money in a savings account if a bank closes?
Your money is federally insured up to $250,000. This means if your bank closes, you’ll still be reimbursed whatever was in your account (under this amount).
Is it safe to keep money in a savings account during a recession?
Yes, during a recession or economic crisis, it is safe to keep your money in a savings account, whether with an online bank or traditional bank. Since your money is federally insured up to $250,000, there’s no need to panic during times of economic recession or uncertainty.
Where can I put my money to earn the most interest?
Savings accounts are an excellent option for earning interest. To earn the most interest in a savings account, you should look for an online bank with a high-yield savings account, CD, or money market account option. These banks typically have the highest interest rates since their overhead is much smaller than traditional brick-and-mortar banks. You can also invest your money, which is riskier, but can yield higher savings.
Is my money safe?
Yes. The financial institutions listed here are all FDIC (Federal Deposit Insurance Corporation) insured. By being a member FDIC, the banks are federally protected to cover account holder funds most often up to $250,000.
Pros and cons of savings accounts
Pros
- Earn money for free. One of the best benefits of opening a savings account is earning money by letting a bank hold your deposits. If you find a free account, it’s a win/win situation. The bank can grow larger by holding your deposits, and you can earn a little extra with interest.
- Easy to open. Unlike a credit card or loan, opening a savings account is simple and does not require a huge time investment. You can easily open an account online and often do not even need to have funds available to deposit. If you’d prefer to open one in person, you can do so at a traditional bank, though the interest rates will often be lower than online banks.
- Insured by the federal government. Savings accounts are also a safe place to keep your money. They’re insured up to $250,000 by the federal government through either the FDIC insurance (traditional and online banks) or the NCUA (credit unions). This means you don’t have to worry about losing your funds, even if a bank closes or suffers financial hardships.
Cons
- Withdrawal limits. Many savings accounts, particularly online savings account options, have withdrawal limits. Most banks only allow you to withdraw from your account six times per month (though others offer more access). This may not be a problem if you’re not touching your savings account often, but it can be if you need frequent access.
- Variable interest rates. Whether opening a savings account at a traditional bank or a high-yield online savings account, it’s important to understand that interest rates fluctuate with the market. So, if you open a high-yield savings account at 2.5% APY, there’s no guarantee that this rate will be the same the next day. However, while these rates fluctuate, online banks can still typically offer higher rates than their brick-and-mortar counterparts.
- Harder to access. Most savings accounts do not come with access to a debit card, which can make it slightly more difficult to access your funds. If you bank at a traditional bank, you can often visit a branch to withdraw from or deposit into your savings account. You can also use an ATM to access checking funds and transfer to and from a linked savings account. While some online savings accounts offer debit card access, not all do. This means you’ll either need to open a checking account to transfer funds (if available) or transfer from a separate account at another bank.
Better banking is here.
- No account fees
- Earn up to 4.20% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
The bottom line
Savings accounts are a great way to store money, save for events and large purchases, and build an emergency fund. Opening a savings account with an online bank will offer you the best interest rates available. However, not all online banks offer checking accounts, debit card access, or additional savings products like CDs and money market accounts.
I love that you don’t have to close your existing bank accounts to use online savings account rates. If you want to earn extra interest or curb spending, I highly recommend looking into an online savings account option.
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Writer
Courtney Johnston is a freelance writer, specializing in finance, travel, and health. She has written for The Chicago Tribune, Benzinga, BestReviews, Mashvisor, Fundera, MoneyGeek, and The Culture Trip. She also teaches writing instruction at the University of Indianapolis. Courtney currently resides in Indianapolis.
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