- What is an online savings account?
- Types of online savings accounts
- How to open an online savings account
- 10 best high-yield online savings accounts
- Smarty Pig by Sallie Mae - 1.05% APY
- Citibank Accelerate Savings Account - 0.70% APY
- Vio Bank - 0.76% APY
- Ally Bank - 0.60% APY
- Axos Bank - 0.61% APY
- Discover Online Savings Account – 0.60% APY
- Capital One 360 – 0.50% APY
- American Express National Bank – 0.60% APY
- Synchrony High Yield Savings – 0.65%
- Chime High Yield Savings – 1.00%
- Costs and fees of online savings accounts
- Pros and cons of online savings accounts
- The bottom line
What is an online savings account?
Types of online savings accounts
Traditional Savings Accounts
Money Market Accounts
Certificates of Deposit
How to open an online savings account
10 best high-yield online savings accounts
Smarty Pig by Sallie Mae - 1.05% APY
|1.05%||$0.01 - $2,500|
|0.95%||$2,500.01 - $10,000|
|0.75%||$10,000.01 - $50,000|
|0.65%||$50,000.01 - $250,000|
Citibank Accelerate Savings Account - 0.70% APY
Vio Bank - 0.76% APY
Ally Bank - 0.60% APY
Axos Bank - 0.61% APY
Discover Online Savings Account – 0.60% APY
Capital One 360 – 0.50% APY
American Express National Bank – 0.60% APY
Synchrony High Yield Savings – 0.65%
Chime High Yield Savings – 1.00%
Here's a side-by-side comparison of the banks:
|Capital One 360||0.50%||$0|
Costs and fees of online savings accounts
Pros and cons of online savings accounts
- Higher interest rates and lower fees. One major perk to switching to an online savings account is taking advantage of higher interest rates and lower account fees. Many online savings accounts have no monthly fees and no hidden fees to worry about and offer a high APY on all balance tiers.
- Top-of-the-line digital tools. Since online banks are in the digital business, their online tools and mobile apps tend to be more robust, intuitive, and faster than traditional banks. You can manage all of the features of your savings account from anywhere, round the clock.
- Free checking services. One of the main benefits I love about online banks is that many also offer free checking services (with debit card access) that allow you to fully switch your banking accounts to a digital platform. Since free checking accounts are hard to come by when banking with a traditional brick-and-mortar bank, this is a real advantage digital banks have over the competition.
- No need to switch banks. Are you nervous about making the transition from your current bank to an online institution? Opening an online savings account is a great first step if you choose an online bank with no fees or deposit requirements. This allows you to test out your new account with no commitment to stay if you decide you prefer your current bank.
- No physical branch locations. Since many online savings accounts are offered by online banks, you won’t be able to sign up for an account or get answers to questions by visiting a physical location. Instead, you’ll call a customer service line, email, or reach out via chat.
- No ATM service. Although some online banks like Axos do offer ATM service for traditional and high-yield savings accounts, most online banks do not. Some, like Ally, offer ATM services for checking accounts that you can then link to your savings account, to move money easily for your phone or computer.
- Additional services may be limited. If you love using one financial institution for all of your banking needs, it’s important to know that not all online banks can offer the same suite of services. While Ally and Axos both provide checking, savings, money market savings, auto loans, mortgages, personal loans, and investing services, this is not the norm for all online banks. Vio Bank and Chime, two popular online banks, only offer checking and savings accounts, while Smarty Pig is only an all-in-one savings account.
The bottom line
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