- Overview of the 11 best banks for savings accounts
- Marcus by Goldman Sachs
- Ally Bank
- American Express National Bank
- Capital One
- CIT Bank
- Synchrony Bank
- VIO Bank
- Axos Bank
- Discover Online Savings
- Online savings accounts summary
- Online savings account FAQs
- Pros and cons of online checking accounts
- The bottom line
Overview of the 11 best banks for savings accounts
|Marcus by Goldman Sachs||No-fees|
|Ally Bank||High-APY CD options|
|American Express National Bank||Existing AMEX members|
|Capital One||Replacing traditional bank|
|CIT Bank||High-yield savings for frequent depositors|
|Synchrony Bank||ATM access|
|VIO Bank||High-yield, no-frills|
|Axos Bank||High-interest money market accounts|
|Barclays||Sign up bonuses|
|Discover Online Savings||Checking + savings combo|
Marcus by Goldman Sachs
Marcus Online Savings Account
Ally Online Savings
American Express National Bank
American Express National Bank High-Yield Savings
Capital One 360 Performance Savings
CIT Savings Builder
Synchrony Bank High-Yield Savings Account
VIO Bank High-Yield Savings Account
Axos High-Yield Savings Account
Barclays Online Savings
Discover Online Savings
Discover Online Savings Account
Online savings accounts summary
|Bank||Minimum Deposit||Monthly Fee||APY%||Sign Up Bonus|
|Marcus by Goldman Sachs||$0||$0||0.60%||No|
|American Express National Bank||$0||$0||0.60%||No|
|CIT Bank||$100||$0||0.30% - 0.50%||No|
|VIO Bank||$100||$0 ($5 if you opt to be receive statements by mail)||0.66%||No|
|Discover Online Savings||$0||$0||0.60%||No|
|Varo||$0||$0||0.81 - 2.80%||No|
Online savings account FAQs
Pros and cons of online checking accounts
- Better interest rates. Online banks don’t have the same overhead as brick-and-mortar banks, which means they’re able to channel these savings directly into your wallet. Without the high costs of running a traditional bank, online banks can offer some of the most competitive savings account interest rates on the market.
- Fewer account fees. Traditional banks often charge a monthly fee to maintain your account and may even charge fees or suspend benefits if you do not meet balance requirements. I’m a big fan of using online banks, particularly for savings accounts, because you can find options with absolutely no fees and minimum balance requirements.
- Easy signup process. Another plus for opening an online savings account is how quickly you can sign up for a new account. Most online banks have very quick online applications and sign-up processes, allowing you to take advantage of your new account within minutes. VIO Bank is a great example of a bank with fast savings account sign-up options.
- Top-of-the-line mobile apps. Opening an online savings account gains you access to online banking mobile apps, which often have great features you can use to boost your savings. You might find some of these features require an online checking account to gain full access. Varo, for instance, allows you to round up when spending from your checking account and automatically moves the difference into your savings account for you.
- Customer support drawbacks. I love that online banks often offer phone, email, and live chat support, but sometimes these forms of communication are not quite as effective as visiting a physical branch to explore your options. Out of these online banks, the only one with in-person branches is Capital One, though most locations remain closed due to the pandemic.
- Additional bank accounts may be needed. On the downside, some online banks still make it difficult to get your money into your account. Many require you to transfer your money from an existing bank account, which can be difficult if the online bank does not allow ATM deposits and does not offer a checking account. If you’re looking to switch to an online banking model, opt for an account with checking services like Ally Bank, CIT Bank, or Axos, or opt for a savings account that offers ATM services like Synchrony Bank.
- Withdrawal limits. One limitation most online savings accounts have is a set number of times you can withdraw funds from your savings account (typically 6 to 9 times per month). While this can be frustrating, if you’re using your savings account to grow your money, I don’t think these limits will hinder you very often.
The bottom line
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