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The best online savings accounts offer more than safety and a substantial rate of return. They complement your financial goals and habits while lacking hefty fees, keeping minimum deposit and balance requirements low, offering easy-to-reach customer service and providing innovative online and mobile banking technology.
We’ve compared 70 online savings accounts at 56 nationally available banks and credit unions to find some of the best accounts available. See below to learn more about why we picked each account, the pros and cons, and to access individual bank reviews.
Annual percentage yields (APYs) and account details are accurate as of August 30, 2021.
0.20% to 3.00%
$0
$0
Varo Bank pays 0.20% APY on all balances—a competitive rate. But savers who meet certain requirements each qualifying period can earn up to 3.00% APY, a rate that’s far above what most other online savings accounts pay. You can learn how to earn the 3.00% APY in Details below.
This account charges no monthly fees or minimum balance requirements.
Plus, Varo gets excellent customer service ratings. It has a robust FAQ section on its website that addresses a number of common issues. Customers can also email support directly, or call to speak with a representative seven days a week.
Read our full Varo Bank Review.
Details
In July 2020, Varo became the first challenger bank (generally, challenger banks or neobanks are fintechs that compete with long-established bigger banks) to receive a national bank charter, enabling it to offer a broader range of products and services in the future. Varo calculates interest daily.
To earn 3.00% APY, customers must receive total direct deposits of $1,000 or more within each qualifying period, maintain a daily savings account balance of $5,000 or less for the entire calendar month and maintain balances above or equal to $0.00 in both savings and bank accounts for the entire calendar month.
0.45% to 0.70%
$0
$0
Aside from the competitive APY, the SmartyPig online savings account from Sallie Mae provides savers with tools to create and track savings progress for specific goals—just like an online piggy bank.
It doesn’t require a minimum deposit or ongoing balance, and it doesn’t charge a monthly fee.
This account also can help savers with smaller balances build up their savings faster. You’ll earn the best yield on balances of $10,000 or below. Notably, the SmartyPig Account’s tiered rate structure, which pays higher yields on lower balances, is the opposite of what you’ll find at many other banks. Typically, higher balances earn higher yields.
Read our full Sallie Mae Bank review.
Details
The SmartyPig account pays 0.70% APY on balances from $0.01 to $2,500, 0.70% APY on balances from $2,500.01 to $10,000, 0.45% APY on balances from $10,000.01 to $50,000 and 0.45% APY on balances of $50,000.01 and above. Interest is compounded daily and credited monthly.
0.40%
$0
$0
Capital One 360’s savings account ranks well across the board in key areas like APY, fees and minimum deposit requirements. But it shines in the category of digital banking experience. Its top-rated mobile app is available on iOS and Android and offers features including mobile check deposit, custom alerts and access to account statements. Savers also have the ability to use digital savings tools—such as automatic transfers—to automate saving.
Read our full Capital One 360 Bank review.
Details
Interest is compounded daily and credited on a monthly basis.
0.40%
$0
$0
Along with its competitive interest rate, the American Express National Bank high-yield savings account allows up to nine free withdrawals or transfers per statement cycle. That’s an advantage for those who frequently need access to funds in their savings accounts—many banks limit transfers and withdrawals from savings to six per statement cycle.
You can access your account 24/7 online or by calling customer service. And American Express requires no minimums or monthly fees to maintain this account.
Read our full American Express National Bank review.
Details
The Federal Reserve Board revised Regulation D in April 2020 to permit banks to allow for more than six withdrawals or transfers per statement cycle. Even so, many banks still limit and charge for excess transactions beyond six. Interest is compounded daily and deposited monthly.
0.40%
$0
$0
Discover’s savings account offers a competitive interest rate and it largely lacks fees—there’s no monthly fee or non-sufficient funds fee. It also doesn’t charge for official bank checks, stop payment orders, returned items or excessive withdrawals.
There’s no minimum deposit requirement or minimum to earn the APY. And Discover stands out for convenience as well. Customers can access their account online or via its highly rated mobile app, which is available on iOS and Android.
Read our full Discover Bank review.
Details
Interest at Discover is compounded daily and credited monthly. If you exceed transaction limits more than occasionally, Discover may close your account.
0.50%
$0
$0
Marcus offers an attractive APY on its high-yield Online Savings Account with no minimum deposit requirement to open an account. There are no monthly fees or fees for domestic wire transfers. And it allows for same-day transfers of $100,000 or less to or from other banks.
Since it’s an online bank, Marcus doesn’t have a branch network, but customers can access their account via the bank’s website, mobile app and by phone.
Read our full Marcus by Goldman Sachs review.
Details
Interest at Marcus is compounded daily and credited monthly. Marcus is the consumer division of Goldman Sachs, one of the biggest names in banking.
0.50%
$0
$0
Ally Bank’s customer service department is available by phone 24/7, but you can also contact the bank by live chat, email and regular mail. And this online bank’s mobile app gets high scores both on the App Store and Google Play.
Ally also offers a very competitive APY on its savings account, with low fees and no monthly maintenance fee or minimum balance requirement. Savers have access to automated savings tools as well. Ally’s savings “buckets” allow you to specify up to 10 different savings goals within a single savings account.
Read our full Ally Bank review.
Details
Interest at Ally is compounded daily and credited monthly.
0.15%
$0
$0
nbkc bank’s Everything Account is a combined savings account and checking account. This hybrid account allows you to spend and save from a single account, without limitations on the number of transactions you can make. There’s no monthly maintenance fee, minimum deposit requirement or minimum balance requirement. It also lacks overdraft fees and foreign transaction fees.
Savers also get access to tools for creating savings goals.
Read our full nbkc bank review.
Details
Interest is compounded daily and credited monthly.
0.61%
on balances of less than $25,000
$250
$0
Axos Bank’s High Yield Saving Account pays a very competitive rate and has a relatively low minimum deposit requirement. And there’s a free ATM card with this account upon request. Customers who take advantage of this offer have access to approximately 91,000 fee-free ATMs throughout the U.S. That’s one of the most extensive ATM networks available among online banks.
Axos is also a good bank for those interested in more than a savings account. It earned the top spot on our list of the Best Online Banks 2021 for its low fees, competitive APYs and reasonable minimum deposit requirements. The bank also offers 24/7 customer service and a highly rated mobile app.
Read our full Axos Bank review.
Details
Interest is compounded daily and credited monthly. The High Yield Savings Account earns 0.61% APY for balances under $25,000. Balances between $25,000 and $100,000 earn 0.25% APY. Balances of more than $100,000 earn 0.15% APY.
0.40%
$10
$0
Salem Five Direct’s eOne Savings account pays a competitive rate on balances up to $1 million. Just as important, it insures your balance up to $1 million through a combination of insurance safeguards. This differs from many other banks, which generally limit deposit insurance to the FDIC maximum.
Savers have the option of bundling their eOne Savings account with an eOne Checking account at Salem Five Direct. There’s a single application for opening both accounts. And you can opt to use this savings account as overdraft protection for your eOne checking account.
Salem Five Direct doesn’t charge monthly fees and requires no minimum balance after opening an account.
Read our full Salem Five Direct review.
Details
This account is limited to customers who apply online and those who don’t have an existing checking or savings account with Salem Five Bank. Customers with an existing eOne Checking Account can apply. Interest is compounded monthly and credited monthly. This account pays 0.40% APY on balances from $0.01 to $1 million. Deposits in excess of the $250,000 covered by the FDIC (Federal Deposit Insurance Corporation) are insured by the Depositors Insurance Fund (DIF).
The APY may be what catches your eye when shopping for a savings account, and rightfully so. It’s crucial to find an account that helps you get the most for your money.
But there are other important criteria to keep on your comparison checklist. One account may suit your financial goals and banking habits better than another, even if it offers a slightly lower APY. In addition to APY, here are some other features to pay attention to when shopping around:
It’s also important to consider your financial goals and needs to figure out which savings account features are most valuable to you.
For example, if you need help setting and tracking financial goals, choose an account that offers savings tools. If you often need to bank while on the go, find an account with a highly rated mobile app. Your needs and behaviors can help guide you toward the savings account that’s right for you.
Bank | Best For |
---|---|
Varo Bank | Best for High Yields |
Sallie Mae Bank | Best for Savings Goals |
Capital One 360 | Best for Digital Banking |
American Express | Best for Access to Funds |
Discover Bank | Best for Avoiding Fees |
Marcus by Goldman Sachs | Best for Same-Day Transfers |
Ally Bank | Best for Customer Experience |
nbkc bank | Best for Combined Savings and Checking |
Axos Bank | Best for Full-Service Banking |
Salem Five Direct | Best for High Balances |
To create this list, Forbes Advisor analyzed 70 online savings accounts at 56 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each institution on 11 data points within the categories of APY, fees, minimum requirements, customer experience, digital banking experience and availability. All of the accounts on our list are online-based accounts.
Here’s the weighting assigned to each category:
We also considered whether there were complex tier structures or requirements to earn the APY or stipulations to earn the APY. Minimum deposit requirements of $10,000 or higher affected scores negatively, as did high minimum balance requirements to avoid fees. To be on this list, the online savings account must be nationally available.
Online savings accounts are opened and maintained primarily online.
These accounts stand out from regular savings accounts in that they tend to pay significantly more than the average savings account rate, which is 0.06% APY as of August 16, 2021, according to the FDIC.
You’ll find that the best online savings accounts are frequently offered by online banks and credit unions, which don’t typically have the costs associated with operating traditional brick-and-mortar banks. Without the expense of physical branches, online banks can pass those savings on to their customers in the form of higher yields and lower fees. But some banks offer both online and brick-and-mortar savings options.
Keep in mind that the bank or credit union offering an online savings account may have only a few products, which means your checking account may be separate from your savings account. Fortunately, digital technology makes it easy to transfer money and automate your finances.
The process to open a savings account online differs slightly by bank and credit union.
Generally, you can fill out an application online via the bank or credit union’s website. You’ll provide information including your name, Social Security number, date of birth and other contact information. Once you’ve chosen your account type and get approved, you can start funding the account. Funding options may include bank transfer, check or wire transfer.
You may open more than one savings account. It can be helpful to have different accounts for different savings goals.
Yes, so long as the account is insured by the FDIC (Federal Deposit Insurance Corporation) at a bank or the NCUA (National Credit Union Administration) at a credit union.
Online financial institutions come with the same protections as savings accounts opened at a bank or credit union with branches. They are insured up to $250,000 per depositor, per bank, for each account ownership category, in the event of a bank or credit union failure. Before opening a savings account, confirm that the financial institution is FDIC or NCUA insured.
Rates on savings accounts tend to be variable. Banks and credit unions adjust interest rates for various reasons. Typically, financial institutions change their rates when the Federal Reserve adjusts the federal funds rate.
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, where it has remained ever since. Even in the current very low interest rate environment, savings APYs are still being reduced. However, this doesn’t necessarily mean that switching banks to get a better interest rate makes sense for you.
Online savings account customers generally have several options for making deposits and withdrawals. These include online funds transfer with another bank account, wire transfer, phone transfer or physical check. Some online accounts also offer ATM or debit cards.
Interest earned from your savings account is generally considered taxable by the IRS. If you earn $10 or more in interest in a year, your bank or credit union will provide you with a 1099-INT to include in your tax filings.
Even if you don’t receive a 1099-INT from your financial institution, you still must report all earned interest income.
Mitch Strohm is the Assistant Assigning Editor for Banking and Personal Finance. He has more than a decade of experience as personal finance editor, writer and content strategist. Before joining Forbes Advisor, Mitch worked for several sites, including Bankrate, Investopedia, Interest, PrimeRates and FlexJobs.