Not all banks are created equal. In the world of high-yield savings accounts, online banks outshine traditional brick-and-mortar banks on both rates and fees. It’s not even a close call.
The ideal savings account has a higher than average interest rate (the national average is 0.06% as of May 2020, according to the FDIC), reliable customer service and low or no fees. Some accounts can even let you skip a minimum balance requirement or minimum deposit amount.
Our survey of the best online savings accounts found that online banks—that is, banks with no physical branches—offer the best deals. The banks below all have higher interest rates than the national average. Our survey focused on banks available nationally, not local or community banks.
More importantly, each bank below is FDIC insured. If your bank fails, the government will typically reimburse you for up to $250,000.
When shopping for the best savings account, make sure you pay close attention to the minimum deposit requirement, monthly maintenance fees, minimum balance requirement and the annual percentage yield, to find the best option for your financial goals.
Below are some of the best savings accounts at online and national banks, with a quick review of each bank.
In this Post
CIT Bank
- Minimum deposit requirement: See below
- Monthly maintenance fee: $0
- Minimum balance required to avoid fee: $0
- Annual percentage yield: Up to 1.25%
The CIT Savings Builder Account does come with some requirements. You must maintain a $25,000 balance or deposit $100 per month. The rewards, however, may just be worth it. The CIT Savings Builder Account pays one of the highest rates available today.
SFGI Direct
- Minimum deposit requirement: $500
- Monthly maintenance fee: $0
- Minimum balance required to avoid fee: $0
- Annual percentage yield: 1.36%
SFGI Direct is a division of Summit Community Bank, and it offers one of the highest rates for online savings accounts.
American Express National Bank
- Minimum deposit requirement: $0
- Monthly maintenance fee: $0
- Minimum balance required to avoid fee: $0
- Annual percentage yield: 1.30%
The American Express personal savings account offers a competitive interest rate with 24/7 online access, requires no minimum deposit or ongoing balance and charges no monthly maintenance fees.
Marcus by Goldman Sachs
- Minimum deposit requirement: $0
- Monthly maintenance fee: $0
- Minimum balance required to avoid fee: $1
- Annual percentage yield: 1.30%
The Marcus by Goldman Sachs online savings account has one of the highest savings account APYs, while requiring no minimum deposit to open an account and no transaction fees. On the other hand, Marcus by Goldman Sachs does not offer an ATM network or checking account (although one is planned for 2021). Therefore, you will need an outside bank to transfer money in and out. The Marcus mobile app is currently available only for iOS.
Barclays US
- Minimum deposit requirement: $0
- Monthly maintenance fee: $0
- Minimum balance required to avoid fee: $0
- Annual percentage yield: 1.15%
The high interest rate of Barclays Online Savings account is also accompanied with online transfers, direct deposit and 24/7 access to your money. Opening an account requires no minimum deposit and no monthly maintenance fees. Customer service is available by phone and mail.
Ally Bank
- Minimum deposit requirement: $0
- Monthly maintenance fee: $0
- Minimum balance required to avoid fee: $0
- Annual percentage yield: 1.25%
Ally Bank’s online savings account offers one of the best savings rates, charges no monthly maintenance fees and requires no minimum balance in the account. The app also offers real-time chat support. For this reason, Ally has long been a favorite among online savings account options.
Discover Bank
- Minimum deposit requirement: $0
- Monthly maintenance fee: $0
- Minimum balance required to avoid fee: $0
- Annual percentage yield: 1.15%
Discover online savings requires no minimum balance to start earning interest and has no monthly maintenance charges. Plus, customers benefit from Discover’s 100% U.S.-based customer service, which is available 24/7.
Synchrony Bank
- Minimum deposit requirement: $0
- Monthly maintenance fee: $0
- Minimum balance required to avoid fee: $0
- Annual percentage yield: 1.30%
Synchrony Bank‘s high-yield savings account offers a good interest rate, easy access to your money, easy ways to deposit funds, no minimum balance requirements and no fees. The bank does not have any branches, so customer service is conducted over the phone, email or chat. Still, you can withdraw money online or with an ATM card (although fees may apply).
PurePoint Financial
- Minimum deposit requirement: $10,000
- Monthly maintenance fee: $0
- Minimum balance required to avoid fee: $0
- Annual percentage yield: 1.25%
There is a $10,000 minimum deposit required to open an account. PurePoint Financial, however, offers one of the more competitive APYs available today.
Frequently Asked Questions
Are online savings accounts safe?
Online savings accounts with FDIC-insured financial institutions come with the same protections as savings accounts opened at a bank with branches. Both are insured up to the FDIC maximum amount. Before opening a savings account at any bank, make sure to confirm that the bank is FDIC insured.
How frequently do interest rates on savings accounts change?
Rates on savings accounts can change daily. Typically, rates change when the Federal Reserve changes the rate on what is called the federal funds rate. The federal funds rate is the “interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight.” When the Federal Reserve lowers this rate, banks typically respond by lowering the rates on deposit accounts. When the federal fund rate goes up, banks often follow suit by raising the rates they pay on deposit accounts. On March 15, 2020, due in part to concerns about the coronavirus (COVID-19) and its effect on the U.S. economy, the Federal Reserve lowered its target range for the federal funds rate to zero to one quarter percent.
How do I make deposits and withdrawals to an online savings account?
With an online savings account, customers can make deposits and withdrawals in several ways. These include online funds transfer with another bank account, wire transfer, phone transfer or by requesting a physical check. Some online accounts also offer ATM debit cards.