Overview of the 11 best savings accounts
|Bank Name||Who’s it for?|
|Ally Bank||High interest CDs (rates up to 1% APY)|
|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|
|Axos Bank||High-interest money market account (rates up to 0.60% APY)|
|CIT Bank||Frequent deposits|
|Barclays||Signup incentives and bonuses|
|Varo||Overall savings account rates (0.81% - 2.80% APY)|
|VIO Bank||Alternative to traditional savings|
11 best savings accounts
Marcus by Goldman Sachs
American Express National Bank
Savings accounts summary
|Bank||Type||Minimum Deposit Requirement||Monthly Fee (lowest charge)||Savings account APY%||ATM card access|
|Ally Bank||Online only||$0||$0||0.60%||ATM access through checking account|
|Marcus by Goldman Sachs||Online only||$0||$0||0.60%||No|
|American Express||Online only||$0||$0||0.60%||No|
|Capital One||In-branch and online||$15||$0||0.50%||ATM access through checking account|
|Discover Bank||Online only||$0||$0||0.60%||ATM access through checking account|
|Synchrony Bank||Online only||$0||$0||0.65%||Yes|
|CIT Bank||Online only||$100||$0||0.30% - 0.50%||ATM access through checking account|
|Varo||Online only||$0||$0||0.81% - 2.80%||Yes|
|VIO Bank||Online only||$100||$0, if you enroll in e-billing||0.66%||No|
Pros and cons of savings accounts
- Earn money for free. One of the best benefits of opening a savings account is earning money by simply 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’re able to earn a little bit 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 by either the FDIC insurance (traditional and online banks) or through the NCUA (credit unions). This means you don’t have to worry about ever losing your funds, even if a bank closes or suffers financial hardships.
- Withdrawal limits. Many savings accounts, particularly online savings account options, have withdrawal limits. Most banks only allow you to withdraw from your account 6 times per month (though others offer more access). This may not be a problem if you’re not touching your savings account often, but can be if you need frequent access.
- Variable interest rates. Whether you’re opening a savings account at a traditional bank or a high-yield online savings account, it’s important to understand that interest rates are variable and fluctuate with the market. So, if you open a high-yield savings account at 0.70% APY, there’s no guarantee that this rate will be the same the next day. However, while these rates can 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.
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