Banking » Compare Banks » The Best Savings Accounts (February 2024)
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The Best Savings Accounts (November 2024)

The best savings account lets you earn interest on your money while keeping it safe & secure. Here are The Smart Investor's top picks
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: October 20, 2024
The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.
Author: Baruch Mann (Silvermann)
Baruch Mann (Silvermann)

Writer, Contributor

Experience

Baruch Silvermann is a financial expert, experienced analyst, and founder of The Smart Investor.  Silvermann has contributed to Yahoo Finance and cited as an authoritative source in financial outlets like Forbes, Business Insider, CNBC Select, CNET, Bankrate, Fox Business, The Street, and more.
Interest Rates Last Update: October 20, 2024

The banking product interest rates, including savings, CDs, and money market, are accurate as of this date.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

By their technical nature, savings accounts are akin to time deposits. Technically, the bank can require the depositor to notify the bank before withdrawing the funds or charge a penalty when the account holder withdraws the money before a specified date.

While banks do not usually exercise this right, some institutions restrict the number of transactions that a depositor can make in and out of a savings account per month.  They also charge fees that depend on the average balance an account holder keeps in his account.  Banks do not provide checks for a savings account as a general practice.

It is relatively easy to transfer funds to and from a savings account but a depositor must observe the federal limits on the number and types of withdrawals he can make per statement cycle.

While deposits are without limits (you can make as many as you wish), the law restricts some types of telephone and electronic withdrawals (exclusive of ATM withdrawals) and transfers to only six per statement cycle.

Here are The Smart Investor Select’s picks for savings account:

Bank/institution
APY Savings
Min Deposit
Monthly Fee
Marcus
4.10%
$0
$0
Capital One
4.10%
$0
$0
Discover
4.10%
$0
$0
American Express Savings
4.10%
$0
$0
Ally Bank Online Savings
4.00%
$0
$0
Chime
2.00%
$0
$0
Varo Bank Savings
3.00% – 5.00%
$0
$0
Bank/institution
APY Savings
Min Deposit
Monthly Fee
Marcus logo
Marcus Savings Account
4.10%
$0
$0

capital one bank logo

Capital One 360 Performance Savings
4.10%
$0
$0

discover bank logo

Discover Bank Online Savings Account
4.10%
$0
$0
american-express-bank-logo
American Express High Yield Savings
4.10%
$0
$0
ally bank logo
Ally Bank Online Savings
4.00%
$0
$0
CIT-Bank-Logo
CIT Bank Savings Connect
Up to 4.70%
$100
$0

citi bank logo

Citi Accelerate Savings
4.45%
$0
$4.50/$10 per month Can be waived if you maintain an average combined monthly balance of $500/$1,500 in your eligible accounts, make one enhanced direct deposit or one qualifying bill payment per statement period

Marcus Online Savings Account

Marcus logo
Marcus logo

Marcus Online Savings Account

APY

4.10%

Fees:

$0

Minimum Deposit

$0

Current Promotion

None

Marcus' savings account offers an impressive 4.10% APY with no minimum deposit or fees. You can also make same-day transfers to and from other banks of up to $100,000. This makes it an excellent option for storing funds while deciding whether or not to invest in a long-term strategy.

Marcus is a subsidiary of Goldman Sachs, which is reflected in its banking products. Marcus provides high-yielding savings and CDs, as well as investment options and a variety of loans. This does not, however, include a checking account.

So, obviously, the bank's goal is for newbie investors who want to start managing their money and taking their first steps into investing.  The Marcus app is rated 4.9/5 on the Apple Store and 4 out of 5 on Google.

  • Can I open a Marcus savings account online?

It is possible to open a savings account online. You’ll need to provide some basic personal and financial information. The Marcus team will then review your application and contact you with your approval details.

  • Does Marcus work for Joint accounts?

It is possible to open up a Marcus savings account with two account holders. This means that both parties can enjoy co-ownership of the account and make decisions independently. So, if one account holder informs the bank of an action, Marcus will not check with the other party to confirm the action.

However, you need to open a new joint account, as it is not possible to convert a sole account into a joint account.

  • Is Marcus worth for Millenials?

The general trend with millennials is to show interest in non traditional banks. Marcus has a specialized product line that could help customers to become familiar with investments and very competitive APY. The bank has a great app that can help you to manage your money on the go.

However, if you need an account to manage your day to day transactions, this is not the bank for you, as there is no checking account option.

  • Is Marcus worth it if I have bad credit?

Marcus has a great savings account that is suitable for anyone, but if you want a lending product, you may need to work on your credit score. Marcus does not disclose the minimum credit score requirements, but it is likely that you will need a score of 660 or more to qualify for a loan.

  • Do Marcus Offers Car Loans?

While it does not offer specific car loans, the bank does offer personal loans. These are fixed rate, no fee loans for $3,500 to $40,000, which you can use for any purpose. The specific rate will depend on your creditworthiness with a term of up to six years.

  • Can you close Marcus bank account over the phone/online?

You can close your Marcus account by calling the bank’s helpline or by sending an email to the bank. The phone method is likely to be the easiest, as the Marcus team will guide you through the closure process.

Capital One 360 Performance Savings

Capital One
Capital One

Capital One 360 Performance Savings

APY

4.10%

Fees:

$0

Minimum Deposit

$0

Current Promotion

A Capital One 360 performance savings account can be opened with no minimum amount, no monthly fee, and a 4.10% APY. This is a top-rated mobile application that allows you to have access to your savings account 24/7 and track your progress and celebrating your savings. It has easy account transfers, which helps you access and move your money between any linked Capital One accounts.

Capital One began as a credit card company, but has developed its line of banking products to create a product line to rival a traditional bank. In addition to checking and saving accounts, you can access loan refinancing, auto finance, and kids’ accounts.

What Does Capital One Worth if I'm a Student?

While Capital One does not have an exclusive student checking account, the main 360 account is a great option for students as there are no account maintenance fees. However, where Capital One stands out is that it has several student credit card options.

The Savor Rewards for Students card offers up to 3% cash back on purchases, with 8% cash back if you purchase Vivid Seats tickets. The Quicksilver Rewards for Students offers an Unlimited 1.5% cash back on all purchases and unlimited 5% cash back on hotels and rental cars booked through Capital One Travel (terms apply) with no spending categories. There is also the Journey Rewards for Students, which offers earn 1% cash back and another 0.25% if you pay on time, so you can boost your cash back to a total of 1.25%.

  • Can I open a Capital One checking account online?

Yes, in fact, the Capital One 360 checking account is an online account, which requires online access. Capital One states that you can open most of its accounts online and generally, the process takes less than five minutes. If you already have a Capital One account login, the process will be even quicker.

  • Does Capital One offer a free checking account?

Yes, the Capital One 360 checking account is a fee free account. There are no account minimums or monthly maintenance fees. There is even a choice of overdraft options in case you inadvertently overspend, which includes Next Day Grace, so there are no fees if you can bring your account balance back up within one full business day.

  • Is Capital One ready/can fall for recession?

Past recessions have been difficult for Capital One. During the 2001 recession, the stock price fell almost 70% and the bank had similar share issues in the 2007 recession.
However, Capital One does seem to be taking the prospect of another recession seriously.

The bank has a number of resources to help its customers, particularly small businesses get recession ready. After all, if its customers can remain financially strong during a recession, the bank should weather the storm well.

  • Is my money safe on Capital One ?

While the share price may have fluctuated a great deal during turbulent financial times, Capital One has remained a safe bank for your funds. The bank is FDIC insured, so customers are protected for up to $250,000 in deposits.
Capital One did receive a $3.5 trillion federal bail out in 2008, but the bank has repaid these funds in full.

Capital One savings account
(Screenshot taken by our team from Capital One, rates are not updated)

Discover Online Savings Account

discover logo

Discover Online Savings Account

APY

4.10%

Fees:

$0

Minimum Deposit

$0

Current Promotion

$150 – $200 Minimum deposit of $15,000 / $25,000

For customers who want the familiarity of banking with a well-known financial institution and want to perform all their banking in one location, the Discover Online Savings Account is a suitable option.

It provides a very attractive APY of 4.10%. Both a minimum deposit and minimum balance are not necessary to start an account, and there is no monthly fee for the account.  Also, from time to time Discover offers a promotion for new savings account. 

In addition to having ATM access, users can receive cash back on their debit card transactions and have mobile access to their savings. Money transfers in and out of the account between your bank and Discover are quick and easy to complete.

What Discover products are inflation-proof?

Discover has a decent product lineup, but the products are not particularly inflation-proof. The only exception to this is the lending products. You can access personal and home loans with a fixed rate that can help you tackle increasing inflation and interest rates.

You can lock in your rate for the duration of your loan term, so you don’t need to worry about your monthly payments increasing along with all your other household expenses as higher inflation hits. Your monthly repayments will remain the same until the end of your loan.

How's Discover's physical coverage?

Discover is a purely online bank, so it does not have a physical branch network. You can manage your transactions online or using the Bank’s app. So, you will need to be comfortable with the concept of not having face-to-face support for managing your account.

What is required to open a Discover account?

Discover must comply with federal banking regulations, so you must verify your ID and address to open an account. When you complete your application, you will need to provide your full name, a valid postal address, and your Social Security number. You will also need a valid government ID, such as a passport, driver’s license, or state ID, to support your application.

Is Discover worth it if I'm a student?

Although Discover does not have a dedicated student checking account, the bank is exceptionally student-friendly. The bank has a fee-free checking account, so you won’t need to worry about a monthly maintenance fee or a minimum balance requirement.

However, where the bank excels is that it offers student loan options, and there are two student credit card options. The Student Cash Back card offers 5% cash back on activated rotating category purchases (up to $1,500 in purchases each quarter, then 1%) and 1% on all other purchases. While the Chrome for Students card offers 2% cashback at gas and restaurants (up to $1,000 every quarter) and 1% on groceries and other student related products. This makes Discover worthy of consideration if you’re a student.

Does Discover offer a free checking account?

Discover’s checking account is free of monthly maintenance fees, and there are no minimum balance requirements. There are no charges if you have insufficient funds or have a deposit item returned.

What’s more, you’ll earn 1% cash back on debit card purchases, making it a desirable option for those who want the best value checking account.

Can you get denied by Discover?

All banks assess account applications to determine applicant suitability. Discover is quite flexible with its criteria for its checking account, but there is still the possibility that a red flag on your application may trigger a decline notification.

In this case, you may need to discuss your application with a member of the support team to find out if there is anything you can do to have your application reassessed.

American Express Savings

APY

4.10%

Fees:

$0

Minimum Deposit

$0

Current Promotion

None

American Express Personal Savings offers an online-only bank where you can store your savings at a competitive rate without any complicated features or maintenance fees.  To use your savings account all you need to do is apply and once it is operational you can move your funds in and out through an electronic transfer. 

You can link any major United States bank account to an American Express Personal Savings account using your account or routing numbers.  There are no monthly service fees or minimum balance requirements to avoid a charge.  Because there is no debit or ATM card, there are also no ATM or overdraft fees.  The only fee you can accumulate is a five-dollar fee for a returned deposit.

The benefit of having a savings account through American Express is a simple way to open and maintain your savings account.  It is easy to navigate and organize your savings plans that offer a high-end rate that is one of the highest available from both online and offline banks.

What are the requirements for opening a savings account?

To open an American Express account, no minimum balance is required. Simply go to the product page for the account you want to open and click the “Open Account” button.

You will be required to provide some personal information as well as financial information. After your application is approved, American Express will send you an email.

You can also apply by phone or downloading and mailing the application form.

Can you open a checking account with American Express?

Starting in 2022, American express bank is now offering also a checking account. You can get 1.00% APY on your account balance, as well as no monthly fees and advanced digital features.

How much time do I have to make the first deposit?

Your account will be closed if you do not fund your High Yield account within 60 days of receiving application approval.

To lock in your CD interest rate, you must fund your Certificate of Deposit account within 30 days of receiving application approval. Your CD account will be closed if you do not fund it within 60 days of receiving application approval.

Can I combine my savings account statement with my American Express Card statements?

American Express Savings statements are distinct from American Express Card account statements and will be delivered separately.

You can, however, link your American Express accounts to switch between your American Express Card and Savings accounts without having to log in and out each time. There will still be two sites with separate login credentials for your Card and Savings accounts, but once connected, you can easily navigate from one account to the other.

When I open a Savings account, do I receive an ATM card, a debit card, or checks?

Savings accounts are not intended for day-to-day spending. There are no ATM cards, debit cards, or checks available.

Amex savings overview on app
Amex savings overview on app (Screenshot taken by our team from Amex app)

Ally Bank Online Savings

APY

4.00%

Fees:

$0

Minimum Deposit

$0

Current Promotion

None

On its online savings account, Ally Bank offers an APY of 4.00%, which is more than ten times higher than the national average. Interest compounds daily. The account has no minimum balance requirement and no monthly maintenance cost.

There are no fees associated with online withdrawals or transfers up to six times a month for Ally account users. The account also stands out for its robust online and mobile management tools, as well as its integrated budgeting features that assist you in saving for your financial goals. 

You can move money between your savings account and other Ally accounts or to outside bank accounts as well. You may also schedule transfers up to a year in advance. You can manage your savings account over the phone, online, or on a mobile device.

What is required to open an Ally account?

There is no minimum balance to open an Ally account. All you need to do is visit the product page for the account you would like to open and click on the “Open Account” button.

You’ll need to provide some personal details and financial information. Ally will send you an email after your application is approved.

Alternatively, you can apply by phone or download the application form and mail it in.

How Do Ally Savings Buckets Work?

Your Online Savings Account includes tools called buckets that allow you to categorize the savings in your account. Buckets are not independent accounts; even if you create up to 10 of them, the account will still receive interest on the entire balance.

What steps must I take to withdraw money from my online savings account?

Four methods of withdrawal are available:

  • Transfer online
  • Wire
  • Telephone
  • Check

Federal law permits a combined maximum of six of a particular sort of withdrawals and transfers from savings accounts every statement cycle. Each transaction that exceeds this cap is subject to a $10 excessive transaction fee.

How Do Ally Bank  Roundups Work?

With Ally online savings account, one of the tools for saving is called a round up.

This booster automatically transfers funds from your Ally Bank Interest Checking account into your Online Savings Account once you have accumulated at least $5. It rounds up your purchases to the next dollar.

What types of CDs Ally Bank offers?

Ally Bank offers a variety of CD options to meet your needs:

  • High Yield CD: terms range from 3 to 60 months.
  • Raise Your Rate CD: 2- and 4-year terms available. Start with a great rate, plus have the opportunity to increase your rate once over the 2-year term or twice over the 4-year term if our rate for your term and balance tier goes up.
  • No Penalty CD: 11-month term that allows you to withdraw all of your money any time after the first 6 days following the date you funded the account, and keep the interest earned with no penalties.
  •  
Ally savings boosters
(Screenshot from Ally app)

Chime

Chime logo

Chime

On Chime Secure Website

Chime

APY

2.00%

Fees:

$0

Minimum Deposit

$0

Current Promotion

None
On Chime Secure Website

Chime offers a savings account feature that offers a high annual percentage yield of 2.00%.  This is an optimal savings account program with its lack of monthly fees or minimum balance requirements.  There is no cap on the amount of interest you can earn in your savings account as long as you have at least one penny in your account you are eligible to earn interest.

Another added benefit to opening a savings account is the lack of minimum deposit requirement for opening an account.  To open a savings account you need to have at least one chime spending account to open a savings account.  This promotes loyalty and using the added features within the Chime checking system. 

Chime uses two optional programs to improve your ability to save money.  The program is Save When You Spend.  This program allows you to save small amounts when you make purchases.  Whenever you make a Chime debit card purchase, Chime rounds the transaction up to the nearest dollar and transfers the difference to your savings account. 

  • Savings Accounts
  • Checking Accounts
  • Debit Card
  • Credit Cards
  •  
  • What Chime products are inflation proof?

Chime does not have a traditional product line of banking products as this bank specializes in products that help you to build your credit. For this reason, the Chime products are not particularly inflation proof.

The exception to this is that there are no hidden fees or charges, so even if your other expenses are increasing, you don’t need to worry about getting stung with banking fees.

  • How's Chime physical coverage?

Chime is an online only bank, so it does not actually have any physical branches. This means that the coverage area of the bank is nationwide, but if you are looking for a bank where you can visit a local branch, this is not the bank for you.

  • What is required to open a Chime account? 

Since Chime is an online only account, the only way to open the account is on the Chime website. To start the process, you will need to complete a screen Captcha. The website will then walk you through the application process.

As with most banks, you will need to provide some basic personal information and financial details. This includes a valid home address, your Social Security number and confirmation that you are a U.S citizen or resident aged 18+. The entire application process should take approximately two minutes.

  • Is Chime worth it if I'm a student?

One of the difficulties for students is a lack of credit history and this is where Chime excels. The entire Chime product line is designed to assist those who are looking to build or rebuild their credit.

Although Chime does not offer any loan products, you can enjoy a fee free checking account with up to a $200 fee free overdraft, a great savings rate and a secured credit card. This can be a great way to establish a credit history, which may make getting other finance products easier in the future.

  • Is my money safe on Chime ?

Chime has FDIC insurance, so up to $250,000 deposit funds are federally protected. The bank also has two factor authentication and supports fingerprint authentication for your data protection.

The Chime debit cards are also protected with Visa Zero Liability. So, you don’t need to worry about unauthorized charges and can shop worry free with millions of merchants.

Citi Accelerate Savings

APY

4.45%

Fees:

$4.50/$10 per month Can be waived if you maintain an average combined monthly balance of $500/$1,500 in your eligible accounts, make one enhanced direct deposit or one qualifying bill payment per statement period

Minimum Deposit

$0

Current Promotion

$100 – $5,000 Minimum deposit of $10,000 – $1,000,000+ needed. Expired on 07/07/2023

The Citi Accelerate Savings account is a popular choice for many people and is typically used as part of Citi's banking packages. These packages offer a comprehensive suite of banking, lending, and investing services, making it an all-in-one solution for those who need it.

Even if you don't want to use Citi for all your banking needs, the Accelerate Savings account still has great benefits, such as a competitive interest rate and relatively low fees. Therefore, it's definitely worth considering as an option to help you save and grow your money.

Can you direct deposit into a Citi savings account?

Yes, Citi allows its customers to set up direct deposits to their Accelerate Savings account. This is a great way to automate your savings.

Does Citi Accelerate offer promotions?

Citi offers $100 – $5,000 bonus if you open a savings account and deposit $10,000 – $1,000,000+. This specific promotion expired in $10,000 – $1,000,000+.

How much can I withdraw from Citi Accelerate Savings?

Citi does not place any limits on how much you can withdraw from your savings account. However, there is a daily limit on ATM withdrawals. The limit is $2,000 for people with the Citigold or Citi Priority account packages and $1,500 for everyone else.

Can I open a Citi Accelerate Savings joint account?

Yes, Citi allows customers to open joint savings accounts. It offers a fee waiver if one of the account holders is a minor or over 65.

How to close Citi Accelerate Savings account

To close any account at Citi, including an Accelerate Savings account, you’ll need to contact your account manager. As part of the process, you’ll need to fill out an account closure form and transfer all funds out of the account.

CIT Bank Savings Connect

CIT-Bank-Logo
CIT-Bank-Logo

CIT Bank Savings Connect

APY

Up to 4.70%

Fees:

$0

Minimum Deposit

$100

Current Promotion

None

The CIT Bank savings account offers a plethora of benefits and features that will make saving simple. CIT Bank has one of the highest interest rates in the country, offering customers Up to 4.70%. You can also sit back and watch your money grow because there are no account opening or maintenance fees.

Even if you don't have enough money to earn the top interest rate right away, CIT Bank offers a variety of competitive interest rates to get you started. And, regardless of how much money you start with, they provide a great introductory interest rate for new customers.

CIT Bank's interest compounded daily to maximize your earning potential. You can easily deposit funds into your CIT Bank savings account using their mobile app, eliminating the need to visit the bank every time you want to deposit.

How's CIT Bank physical coverage?

CIT Bank is an online only bank, which means that it has no physical branches. This should not be confused with the CIT subsidiary CIT Bank NA, which has a regional branch network of 80 branches.

This means that if you want to use CIT Bank, you will need to be comfortable with performing all your account management online or using the phone helplines.

What is required to open a CIT Bank account?

As with all major banks, whether they are online or have a physical branch network, you will need to provide some personal details including a valid home address, your Social Security number, and contact information.

You will also need to verify your identity with a government ID, such as a passport, driver’s license, or state ID.

Can I open a CIT Bank checking account online?

As an online bank, opening an account online is your only option with CIT Bank. Fortunately, this is a very simple process that CIT has broken down into three simple steps.

When you click on the “Open Account” button on the product page, you will be directed to a form to provide your details. Next, you will need to fund your account for the appropriate minimum, and then CIT will send you a confirmation email to let you know the account is now active.

Savings Accounts Reviews

How Do Savings Accounts Work?

Before you start looking into starting a new savings account, you will want to be sure that you know exactly what they are for. Savings accounts are essentially a place for you to store your money and earn interest, safely.

A savings account is one of the many services offered by banks. They allow you to keep your funds safe and earn annual yields from interest. Some accounts can reach 1% in those yields.

Additionally, these accounts are federally insured up to $250,000. That means you will not lose your money if the banks fail.

Savings are a crucial part of financial stability. Whether you have an emergency fund or investment funds, savings can provide security against unforeseen events or situations. As you can see in this chart using FED Survey of Consumer Finances data, Americans are saving more. 

 

Many people use them as ways to set aside money, as it takes more steps to spend it than it would with a checking account. For example, you could use it to prepare funds for emergencies, a vacation, a big planned expense, and more.

When you open a savings account at a bank, your next step would be to deposit some money into it. All funds in the account earn interest, which is added into the account by the bank.

Most banks allow you to transfer money between your checking and savings accounts as you please, as long as they are opened with the same bank.

Top Savings Accounts From Our Partners

Chime Banking App

  • 2.00% APY on Chime Savings 
  • Build Credit History
  • No Monthly Fees

Quontic High Yield Savings

  • 4.50% APY on savings
  • Interest is compounded daily
  • No Monthly Service Fees

CIT Savings Connect 

  • Up to 4.70% APY on savings
  • No monthly service fees.
  • Zelle, Samsung & Apple Pay

Advertiser Disclosure

The product offers that appear on this site are from companies from which this website receives compensation. 

Top Offers From Our Partners

UpgradeLogo

Savings Rate: 4.69% APY
CIT-Bank-Logo
Savings Rate: Up to 4.70% APY
Quontic bank logo
Savings Rate: 4.50% APY

valley direct logo

Savings Rate: 4.25% APY

consumers credit union logo

CD Rate: 5.00% – 5.20% APY