Saving money is important — as is where you choose to keep it. Finding the best savings account can ensure your funds are safe while earning a competitive interest rate on the balance.
For some people, an online savings account is the best choice, while others prefer a traditional in-person banking experience.
Whatever your preference, shopping for the best savings account rate is critical for maximizing your returns. You should also look for fees, transaction limits or minimum balance requirements that could potentially affect your interest earnings.
Methodology
Our team of experts analyzed hundreds of data points and then used data-driven methodology and thorough fact-checking to come up with the best savings accounts. We heavily emphasized APY because maximizing earnings is the most important feature of savings accounts. You can read more about our methodology below.
Show summary
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UFB Secure Savings
: Best for high APY
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TAB Bank High Yield Savings
: Best for no balance caps
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Varo Savings Account
: Best for direct deposit
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Bask Bank Interest Savings Account
: Best for no monthly fees
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Revolut Savings Vaults
: Best for comprehensive financial tools
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Bread Savings High-Yield Savings Account
: Best for free transfers
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Synchrony Bank High Yield Savings
: Best for no minimum balance
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Betterment High Yield Cash Account
: Best for high insurance limit
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SoFi Checking and Savings
: Best for automated savings tools
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LendingClub Bank High-Yield Savings
: Best for ATM fee rebates
UFB Secure Savings
Best for high APY
APY
5.25%
Monthly maintenance fee
$0
Minimum deposit requirement
$0
5/5
The CNN Underscored Money editorial team scores financial services products objectively. We weigh several factors consumers should consider when creating our methodologies.
On UFB’s Website
Why we picked it
With an impressive 5.25% APY, UFB Direct offers the best savings account rate on this list. Its high-yield savings account has no monthly maintenance fee, balance requirements or minimum deposits. It comes with a complimentary ATM card and free withdrawals at 91,000 ATMs nationwide. UFB Direct also has easy-to-use digital banking tools, such as check deposits with your smartphone and account access via SMS messaging. Both the Google and Apple apps are highly rated. If you prefer to do your banking in person, be aware that UFB Direct only has one physical branch. You can contact UFB Direct via online chat during regular business hours or speak to a Direct Banker by phone 24/7.
Pros
- Excellent APY
- Unlimited transactions
- 24/7 phone support
Cons
- Only one physical branch
- Can only deposit cash at cash-accepting ATMs (may be hard to find)
- $35 fee for domestic wire transfer
Who should use it
UFB Direct is ideal for someone looking for a high-yield savings account with a top-tier APY, user-friendly digital banking tools and around-the-clock customer support.
TAB Bank High Yield Savings
Best for no balance caps
APY
5.27%
Monthly maintenance fee
$0
Minimum deposit requirement
$0
5/5
The CNN Underscored Money editorial team scores financial services products objectively. We weigh several factors consumers should consider when creating our methodologies.
Why we picked it
Transportation Alliance Bank originally catered to truckers and the transportation industry but now services individuals, families and businesses. Along with its competitive 5.27% APY, TAB Bank has no minimum deposit, balance requirements or monthly maintenance fees (though there are some other miscellaneous fees). It also doesn’t have a balance cap, so you can earn the highest rate on large balances. While the bank only has one physical branch, the TAB Bank mobile app allows you to access your account to pay bills and perform other banking actions. You can sign up for custom alerts for account information, such as a high balance, low balance or new withdrawals.
Pros
- Competitive APY
- No balance cap
- Highly rated mobile apps
Cons
- No overdraft program
- Charges miscellaneous fees, such as stop payment fee or outgoing wire transfer fee
- Only one physical branch
Who should use it
TAB Bank is an excellent choice for someone who wants to keep a large amount of savings in one place while still earning a great rate.
Varo Savings Account
Best for direct deposit
APY
5.00%
Monthly maintenance fee
$0
Minimum deposit requirement
$0
4.9/5
The CNN Underscored Money editorial team scores financial services products objectively. We weigh several factors consumers should consider when creating our methodologies.
Why we picked it
We chose Varo as one of the best savings accounts because of its 5.00% APY, $0 initial deposit requirement and no minimum required balance. To earn the highest interest rate, you’ll have to set up direct deposits of at least $1,000 monthly, and your checking and savings account must be positive at the end of each month. Furthermore, you only receive the 5.00% APY up to $5,000. Any amount above that will receive 3.00% APY. Varo offers excellent account features, like the option to cash your paycheck early, automated savings and unlimited transfers. You can also send or receive money from friends and family with Zelle for no charge.
Pros
- Can get access to your paycheck funds early
- Excellent mobile app ratings
- Free debit card
Cons
- Requirements to receive the highest APY
- Fees for cash deposits
- No wire transfers
Who should use it
A Varo savings account may be a good fit for you if you can set up a direct deposit of at least $1,000 monthly. Because of fees of around $5, it may not be ideal for people who want to deposit cash into their accounts.
Bask Bank Interest Savings Account
Best for no monthly fees
APY
5.10%
Monthly maintenance fee
$0
Minimum deposit requirement
$0
4.8/5
The CNN Underscored Money editorial team scores financial services products objectively. We weigh several factors consumers should consider when creating our methodologies.
Why we picked it
As a division of Texas Capital Bank, an FDIC member, Bask Bank is an online-only financial institution. Its interest savings account earns a competitive APY of 5.10%. Bask Bank has no minimum balance or initial deposit requirements. However, you must fund your account with at least a penny within 15 business days; otherwise, Bask Bank can close your account. Although there isn’t a physical branch you can visit, Bask Bank has extended business hours (from 7 a.m. to 7 p.m. Central Time) if you need to speak with someone about your account. It also offers an online banking website and mobile app.
Pros
- Competitive APY
- Extended business hours
- No monthly fee or minimum balance
Cons
- Transaction and withdrawal limits
- No ATM or debit card
- No cash deposit
Who should use it
The Bask Interest Savings Account is best for people looking for somewhere to park their money and leave it. Transaction limits, a lack of ATM network and no cash deposit may make it inconvenient for those needing regular access to their funds.
Revolut Savings Vaults
Best for comprehensive financial tools
Annual Percentage Yield
up to 4.25%*
Monthly maintenance fee
as low as $0
Minimum deposit requirement
$0
4.8/5
The CNN Underscored Money editorial team scores financial services products objectively. We weigh several factors consumers should consider when creating our methodologies.
Why we picked it
Revolut strives to be an all-in-one app for your finances. You can conveniently save, invest, book travel accommodations, donate to charity and more with Revolut. Depending on the plan you choose, you can earn up to 4.25% APY. However, if you sign up for the standard plan, you can expect up to 3.25% APY. The highest-tiered membership includes stock trading advantages, lounge access and travel coverage. Revolut has excellent ratings with Trustpilot, and its Google and iOS apps are also highly rated.
*The Annual Percentage Yield (APY) is a variable rate and may change at any time. These APYs are accurate as of February 18, 2023. Monthly fees apply for Premium and Metal plans. Terms and Conditions Apply.
*Standard customers can earn up to 3.25%, while Premium and Metal customers can earn up to 4.25%
*No minimum amount required
Pros
- Comprehensive financial app
- Travel perks
- Excellent ratings
Cons
- Subscription required to unlock highest APY
- No phone customer support
- Better APYs at other banks
Who should use it
If you’re looking for a one-stop shop for your finances, Revolut may be for you. It also offers travel perks that may be worthwhile for the frequent traveler.
Bread Savings High-Yield Savings Account
Best for free transfers
APY
5.15%
Monthly maintenance fee
$0
Minimum deposit requirement
$100
4.7/5
The CNN Underscored Money editorial team scores financial services products objectively. We weigh several factors consumers should consider when creating our methodologies.
Why we picked it
Bread Financial’s high-yield savings account offers an excellent 5.15% APY. The bank regularly monitors top APYs to ensure it offers competitive rates. Interest is compounded daily and credited to your savings account monthly. With Bread Savings, you receive free Automated Clearing House (ACH) transfers, incoming wire transfers and unlimited check deposits using your smartphone camera. There’s no fee for monthly maintenance or minimum balance requirement. However, Bread Savings requires a $100 initial deposit to open your account. Bread Savings charges $5 per paper statement, but you can receive free electronic statements online.
Pros
- Excellent APY
- No monthly maintenance fees
- No balance requirements (either minimum or to get the top interest rate)
Cons
- $100 minimum deposit
- Can’t directly withdraw cash
- $5 per paper statement
Who should use it
If you’re searching for a savings account with a competitive APY, Bread Financial may be a good fit if you don’t need paper bank statements. Like many online accounts, there’s no way to withdraw directly from the bank, so you’ll need to transfer the money to another financial institution if you need cash.
Synchrony Bank High Yield Savings
Best for no minimum balance
APY
4.75%
Monthly maintenance fee
$0
Minimum deposit requirement
$0
4.7/5
The CNN Underscored Money editorial team scores financial services products objectively. We weigh several factors consumers should consider when creating our methodologies.
Why we picked it
We picked Synchrony as one of the best banks to open a savings account because of its solid 4.75% APY and lack of balance requirement, minimum deposit and monthly fees. You can easily access your money with an optional ATM card, electronic transfer or wire transfer. Synchrony offers up to $5 in rebates for out-of-network ATM fees per statement cycle. Synchrony is FDIC-insured and won’t hold you liable for any unauthorized activity on your account.
Pros
- ATM fee rebates
- No fees or minimum balance
- Excellent mobile app ratings
Cons
- No checking account
- Higher rates at other banks
- Low Trustpilot rating
Who should use it
Synchrony may be a good fit for those looking for a standalone savings account at a secure online bank with a solid rate and no monthly fees or balance requirements.
Betterment High Yield Cash Account
Best for high insurance limit
APY
4.75%
Monthly maintenance fee
$0
Minimum deposit requirement
$10
4.7/5
The CNN Underscored Money editorial team scores financial services products objectively. We weigh several factors consumers should consider when creating our methodologies.
Why we picked it
Betterment’s high-yield cash account normally provides a competitive 4.75% APY; however, with qualifying deposits, new customers can earn a variable APY of 5.50% for the rest of 2023. A cash account is inherently more liquid than a traditional savings account, so you won’t encounter limits or fees for transferring money. Withdrawals are unlimited and usually only take one to two business days. Funds in an individual Betterment Cash Reserve account are FDIC-insured up to $2 million.
Pros
- High intro APY (variable)
- Insured up to $2 million
- No transaction limits or fees
Cons
- Lower APY after the intro period
- No check deposit
- No physical branch
Who should use it
Betterment is ideal for someone who wants a more liquid account than traditional savings while still earning a decent interest rate. It may also be an excellent option for those with a large balance (up to $2 million) because of its extensive FDIC insurance.
SoFi Checking and Savings
Best for automated savings tools
APY
4.60%
Monthly maintenance fee
$0
Minimum deposit requirement
$0
4.7/5
The CNN Underscored Money editorial team scores financial services products objectively. We weigh several factors consumers should consider when creating our methodologies.
Why we picked it
SoFi Checking and Savings has many helpful features, including tools to automate your savings, an overdraft program and potential to get your paycheck up to two days early. There is also a cash bonus of $50 or $250 when you open your account, depending on your direct deposit amount. Although it has a slightly lower APY than its competitors (4.60%), SoFi has the best Trustpilot and mobile app ratings on our list. It also has no monthly maintenance fee, deposit requirement or required minimum balance. When you sign up for a savings account, you automatically get a checking account with 0.50% APY.
Pros
- Automated savings tools
- Up to $300 bonus for direct deposit
- Excellent ratings
Cons
- Fees for cash deposit
- No physical branch
- No standalone savings account
Who should use it
SoFi is an excellent choice for someone looking for a bank with strong ratings and customer service. It may also be a good fit if you want features like automated savings, goal-based savings accounts and round-ups on debit card purchases deposited into your Vault.
*SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found athttp://www.sofi.com/legal/banking-rate-sheet
LendingClub Bank High-Yield Savings
Best for ATM fee rebates
APY
4.50%
Monthly maintenance fee
$0
Minimum deposit requirement
$0
4.6/5
The CNN Underscored Money editorial team scores financial services products objectively. We weigh several factors consumers should consider when creating our methodologies.
Why we picked it
LendingClub offers a 4.50% APY on its high-yield savings account, which is substantially better than the national average, according to FDIC data.
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Although it requires a $100 initial deposit, LendingClub has no required minimum balance or monthly maintenance fees. It also allows free internal and external transfers (however, there may be a limit to the dollar amount).
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You receive a free ATM card with your account, which you can use at over 37,000 ATMs, free of charge. LendingClub also offers rebates to cover fees when you use out-of-network ATMs.
Pros
- Competitive APY
- Free ATM card
- Rebates for ATM fees
Cons
- $100 minimum deposit
- Only one physical branch
- Lower APY than other banks
Who should use it:
Its expansive ATM network, free ATM card and rebates for out-of-network fees make LendingClub ideal for the online bank user who needs frequent access to cash.
Our picks at a glance
| APY | Monthly maintenance fee | Minimum deposit requirement | |
|---|---|---|---|
UFB Direct | 5.25% | $0 | $0 |
TAB Bank | 5.27% | $0 | $0 |
Varo | 5.00% | $0 | $0 |
Bask Bank | 5.10% | $0 | $0 |
Revolut | 4.25% | $0 | $0 |
Bread Savings | 5.15% | $0 | $100 |
Synchrony Bank | 4.75% | $0 | $0 |
Betterment | 4.75% | $0 | $10 |
SoFi | 4.60% | $0 | $0 |
LendingClub Bank | 4.50% | $0 | $0 |
Why is now a good time to open a savings account?
- Earn interest: Right now, the best savings account annual percentage yields (APYs) are 5.00% or higher, giving you a strong opportunity to earn plenty of interest on your deposit.
- Keep your money safe: Savings accounts are very safe because you can’t lose money on your deposit, as long as your financial institution is insured by the Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA).
- Flexible access: With a savings account you can deposit more money and withdraw money any time, though be sure to check if your account has withdrawal limits.
What is a savings account?
A savings account is a place where you can deposit money for safekeeping and earn interest on the principal.
The FDIC and NCUA insure savings accounts held at many banks and credit unions up to $250,000 in the event of a bank run or closure. Savings accounts are generally considered safe, low-risk investments, although they’re subject to fluctuating rates, and there’s a risk of inflation outpacing them.
Traditional savings accounts are typically more liquid than other investments, like certificates of deposit (CDs) or bonds. Many financial institutions allow you to withdraw your funds anytime; however, some banks may limit transactions or charge you a fee if your balance falls below their minimum requirement.
What to look for when choosing a savings account
One of the most important things to look for is that the bank or credit union is FDIC or NCUA-insured. This insurance protects your money if the institution has financial troubles. For banks, check the FDIC’s tool. For credit unions, check the NCUA’s tool.
You should also look for minimum balance requirements before choosing a savings account. The financial institution may charge a fee if your account falls below the required balance.
Additionally, watch out for any other fees for monthly maintenance, ATM use, transfers, etc. You should also inquire whether the bank limits the number of transactions you can make per month.
Different types of savings accounts
While there are several types of savings accounts available, the following are some of the most common options:
- Traditional savings account: A traditional or regular savings account is a basic deposit account you can open at a bank or credit union.
- High-yield savings account (HYSA): A HYSA is like a traditional savings account but usually offers much higher interest rates than the national average.
- Certificate of deposit (CD): A CD is an interest-earning deposit account, but you usually can’t touch the funds for a set amount of time without penalty.
- Money market account (MMA): An MMA is another type of deposit account that earns interest. MMAs often have transaction limits but may also come with a debit card and checkbook.
Online bank vs. traditional bank savings accounts
Like traditional banks, online banks with FDIC or NCUA insurance protect funds up to $250,000. If the financial institution fails, you can typically expect payment from the FDIC or NCUA within a few days.
Without the expenses of running a physical branch, online banks can often provide higher interest rates and lower fees than traditional banks. They may also have more comprehensive digital banking tools, making managing your account more accessible and convenient.
However, with traditional banks, you can directly access your funds at a local branch. You can also speak with a banking associate in person about any questions or concerns.
Requirements for opening a savings account
After choosing a savings account, you’ll have to contact the financial institution. The bank may allow you to apply online, or you may have to call or visit the branch in person.
It will also likely require the following:
- Name
- Birthdate
- Address
- A valid government-issued ID (like a driver’s license)
- Social Security or other identification number, like an ITIN
You will also need funds if the bank requires a minimum deposit, which typically ranges from $25 to $100.
Maximizing your savings account
There are many strategies you can use to maximize your savings account to keep your funds growing and safe.
One way to ensure greater returns is to look for the highest rates when shopping for the best savings account. You should choose an account with minimal fees and balance requirements.
You might also consider opening multiple accounts with different financial institutions. This strategy can help protect your funds if they exceed the FDIC’s or NCUA’s insurance limit of $250,000. It can also help you optimize different yields and banking bonuses.
Methodology
CNN Underscored Money analyzed 65 savings accounts from 54 financial institutions to come up with the rankings for the best savings accounts. This included accounts from a mix of traditional banks, online banks and credit unions that are available nationally. We ranked each account on nine data points across six categories.
Here are the categories we analyzed and how we weighted each:
APY (50%)
The amount of interest you earn on your savings is the most important part of choosing a savings account for many consumers, so we weighted this highest of any factor.
Fees (30%)
Fees are a critical factor to consider with your savings account because they can eat away at any interest earnings, especially if an account has a high monthly maintenance fee.
Customer experience (5%)
While you’ll likely deal with your bank less often with a savings account than you will with a checking account, it’s still important to have a bank that’s trustworthy and easy to reach when you need help.
Digital experience (5%)
You’ll want a bank with a usable app and plenty of online features so that it’s easy to bank from anywhere.
Minimum deposit requirement (5%)
A high minimum deposit makes a savings account less accessible, so we rewarded accounts that more people can use.
Minimum balance to avoid a monthly fee (5%)
A high minimum balance to avoid monthly fees limits flexibility with your savings account because you’re limited in how much you can transfer or use for unexpected expenses without being penalized by fees.
We also considered several other factors like welcome bonuses and tier structures to earn APY.
Frequently asked questions (FAQs)
Not always. Depending on the bank, there may be a fee for monthly maintenance if your account balance falls below a certain amount. Banks may also charge fees for using out-of-network ATMs, transferring funds or inactivity.
Online savings accounts can be secure as long as they’re insured by the FDIC or NCUA. They should also have security measures like encryption and multi-factor authentication to secure your information.
You can open a savings account online, depending on the bank. Many traditional banks let you apply online, but some may require you to call or visit the branch in person.
Compound interest is when you earn a return on both the initial principal and previously accrued interest. The more frequent the compounding (for example, daily compounding vs. monthly compounding), the higher yields you will receive.
There are some drawbacks to using savings accounts, such as lower returns than other investments, variable rates and possible fees or balance requirements.
