We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more. Savings accounts are an essential part of your finances, but the best banks for savings accounts allow you to do more than park your money somewhere safe. They also allow you to earn a decent amount of interest on your balance. Choosing the right account helps you grow your savings and avoid fees, maximizing the amount you have for spending. So, where should you open an account? Lots of banks have excellent savings accounts, and we’ve highlighted some of the best offerings below. The banks on this list pay competitive annual percentage yields (APYs), keep fees low, and provide FDIC insurance on your deposits. We partnered with the following banks to bring you the savings account offers in the table below. Under that, you'll find additional details on our editors' picks for the best savings accounts and why we chose them. All of the banks and credit unions listed are insured by the Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA). We also included some money market accounts if they act like savings accounts—in other words, if they pay a high yield and don't allow you to write checks. Best Banks for Savings Accounts Best Banks for Savings Accounts FAQs Key Terms to Know Bask Bank offers a high-yield savings account that lets customers earn 5.10% APY. In addition to its generous APY, the Bask Interest Savings Account has other customer-friendly features, including no minimum balance requirements, earning caps, or monthly maintenance fees. Bask also offers another savings product, its Mileage Savings Account, which lets customers earn two American Airlines AAdvantage miles for each dollar saved annually. Bask Bank is the online arm of Texas Capital Bank. SmartyPig has just one product: an online savings account offered through Sallie Mae Bank. The innovative account lets you create and track savings goals and requires no minimum deposit or ongoing balance. Competitive interest rates help you grow your money even more quickly. Interest is compounded daily and credited monthly. Live Oak Bank pays your business 4.15% APY in an easy-to-understand online bank account. There are no monthly fees, and there’s no minimum balance requirement to open an account or keep an ongoing relationship with Live Oak Bank. You cannot deposit cash, but you can fund your account with electronic transfers, paper checks, and deposits with your mobile device. Live Oak Bank, founded in 2008, also offers personal savings accounts, CDs, and other banking services. There’s nothing worse than dealing with bank errors or struggling to get access to cash when you need it. Ally Bank ranked in the top three of the J.D. Power 2023 Direct Banking Satisfaction Study, and the bank has competitive rates, as well. Ally Bank pays 4.35% APY, with no minimum balance requirement and no monthly fees. Customer service at Ally is available by phone 24/7, and the bank displays an estimated wait time online so you know what to expect. You also can use Ally for online checking, CDs, and more. Discover® Bank offers a wide variety of accounts, including an Online Savings Account that pays 4.30% APY. There’s no minimum deposit required, and you pay no monthly fees with that account. In fact, the only fee you should pay is an outgoing wire fee, if you choose to wire money. Official checks, returned deposits, and excess withdrawals are all fee-free, too. While you can potentially earn more elsewhere, higher rates really only matter when you have a substantial account balance. If you don’t keep a large amount in your savings account, you might prefer having access to a robust set of features. Discover® offers more than a good savings account. Its Cashback Debit account provides a rare opportunity to earn rewards on debit card spending, and its money market and CD accounts have competitive rates, too. Discover® also offers credit cards, free FICO credit scores, home equity loans, personal loans, and other financial services. Alliant Credit Union caters to young people of all ages, and those aged 13 years or older can use a standard Alliant savings account. Rates are good at 3.10% APY. These accounts require $5 to get started (though Alliant will pay it for kids 12 and younger), $100 to earn the stated APY, and there are no monthly fees. Alliant also has a teen checking account, which earns 0.25% APY—pretty good when you consider that most banks don't offer interest checking. The account has no minimum balance or monthly service fee, and the credit union reimburses up to $20 of out-of-network ATM fees per month. To be eligible for these accounts, you may need to join Foster Care to Success, and Alliant pays the membership fee for you. Parents who are joint account holders of minor accounts also must be Alliant members. This is an excellent way to teach children about money. They can see how interest helps their account grow, and they can practice saving for specific goals while watching their progress. Savings accountsgive customers the flexibility to deposit money, earn interest, and withdraw funds as needed. They also keep money safe—savings accounts are federally insured, which means that the governmentcovers up to $250,000if your bank fails. Online savings accounts provide flexibility and security, with additional advantages over traditional brick-and-mortar banks and credit unions. For starters, customers can manage money via smartphone or computer without depending on local branch hours and tellers. But most notably, they tend to offer higher rates and lower fees. Online bank accounts can be as safe as brick-and-mortar accounts. That’s true for deposit insurance and other forms of security. The most popular banks (including those listed here) benefit from FDIC insurance (for banks) or NCUSIF coverage (for credit unions) up to $250,000 per depositor, per account. When banking online, you might face unique risks associated with cybersecurity—but your brick-and-mortar accounts are probably online as well. Here’s how to reduce risk: If you notice any signs of fraud, contact your bank immediately. You may be protected from fraud and errors in your account, but you need to act quickly for the highest levels of protection. Banks also monitor your accounts and employ sophisticated analytics to help detect fraud, regardless of whether you bank online or in a branch. Yes, you can open as many savings accounts as you want. Multiple savings accounts can help you separate money for certain goals, stay below deposit insurance limits, or move your money where it serves you best. However, it might not make sense to keep multiple accounts if you have to pay fees for each account. Keeping track of numerous accounts can cause confusion, but there’s nothing wrong with having a manageable number of savings accounts. Money market accounts and CDs are similar to savings accounts, but there are some important differences. Whilemoney market accountspayinterest like savings accounts, they typically offer check-writing and debit card options. You can see what these kinds of accounts have to offer in our round-up of thebest money market accounts and rates. CDs offer higher rates than savings accounts, but require you to keep your savings in the bank for months or years. Time commitments vary, but you might have to pay a penalty if you take out your money early. The amount your bank pays you based on your account balance. This is typically expressed as an annual rate, but may be paid monthly. For example, if your bank pays a 1.20% annual interest rate, you would receive 0.10% per month. On a balance of $100, that translates to $1.20 per year, although the amount could be higher due to compounding. When you earn interest in a savings account, you might leave those interest earnings in the account. Your bank adds money to your account, and that new money generates additional interest earnings. In other words, you earn interest on the interest you previously earned. That process, known as compounding (or earning compound interest), helps your account balance grow at an increasing rate. APY is the amount you earn on your savings when you take compounding into account. If your bank pays interest more often than yearly (banks often calculate interest daily), you earn more than the stated annual interest rate. That higher amount, known as the APY, is a more accurate way of understanding how much banks pay. Savings accounts are designed to hold your funds for extended periods. You can withdraw money occasionally, but frequent withdrawals may be problematic. Financial institutions usually limit certain types of withdrawals to no more than six per month. When your withdrawals exceed those maximums, you may have to pay fees, and your bank might close your account if you make a habit of it. As you compare accounts, note any minimums. (Some banks do not set minimum balance requirements.) You may see several different types: Article Sources Bask Bank. "High Interest Account." Live Oak Bank. "Business Savings Accounts From Live Oak Bank | Member FDIC." Live Oak Bank. "Financing for Educational Services Businesses Nationwide." J.D. Power. "Higher Interest Rates, Ease of Moving Money Drive Higher Customer Satisfaction with Online-Only Banks, J.D. Power Finds." Ally. "Online Savings Account - Ally." Discover Bank. "Online Savings Account - Discover." Alliant Credit Union. "High Interest Rate Online Savings Account - Alliant Credit Union." Alliant. "Kids Saving Accounts." Alliant Credit Union. "Teen Checking Account | Debit Card for Teenagers." Alliant. "Does Alliant Rebate Fees if I Use an Out-of-Network ATM?" Federal Deposit Insurance Commission. "Deposit Insurance - FDIC." National Credit Union Administration. "How Your Accounts Are Federally Insured."Best Banks for Savings Accounts of February 2024
Best for High Rates : Bask Bank
Runner-Up for High Rates : SmartyPig
Best for Business Accounts : Live Oak Bank
Best for Customer Service : Ally Bank
Best for All-in-One Banking : Discover® Bank
Best for Kids & Teens : Alliant Credit Union
Frequently Asked Questions
What Is a Savings Account?
Should You Get an Online Savings Account?
Are Online Banks Safe?
What Makes a Good Savings Account?
Can I Have More Than One Savings Account?
What Are the Differences Among Savings Accounts, Money Market Account, and CDs?
Key Terms to Know
Interest
Compounding
Annual Percentage Yield (APY)
Excess Withdrawals
Minimum Balance
FAQs
Which bank is giving 7% interest in savings accounts? ›
Currently, no banks are offering 7% interest on savings accounts, but some do offer a 7% APY on other products. For example, OnPath Federal Credit Union currently offers a 7% APY on average daily checking account balances up to and under $10,000.
Where can I get 7% interest on my money online? ›- As of May 2024, no banks are offering 7% interest rates on savings accounts.
- Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.
According to the Summary of Economic Projections, the Fed may implement up to three 25-basis point interest rate cuts in 2024—bringing the federal funds rate closer to 4.60%. If this happens, it won't be surprising to see banks following suit and decreasing their savings account rates.
Where can I get 5% interest on my savings account? ›Account Name | APY (Annual Percentage Yield) Accurate as of 5/21/2024 |
---|---|
Western Alliance Bank High-Yield Savings Premier | 5.36% |
NexBank High Yield Savings Account | 5.26% |
UFB Secure Savings | 5.25% |
CIT Bank Platinum Savings | 5.00% (with $5,000 minimum balance) |
- BrioDirect, 5.35% APY.
- Ivy Bank, 5.30% APY.
- TAB Bank, 5.27% APY.
- Jenius Bank, 5.25% APY.
- UFB Direct, 5.25% APY.
- Upgrade, 5.21% APY.
- Bread Savings, 5.15% APY.
- EverBank, 5.15% APY.
- My Banking Direct – 5.55% APY.
- Poppy Bank – 5.50% APY.
- BrioDirect – 5.35% APY.
- Vio Bank – 5.30% APY.
- Ivy Bank – 5.30% APY.
- TAB Bank – 5.27% APY.
- TotalDirectBank – 5.26% APY.
- Jenius Bank – 5.25% APY.
Banks | Highest FD rate (% p.a.) | Additional interest rate for senior citizens (% p.a.) |
---|---|---|
RBL Bank | 8.00 | 0.50 |
AU Small Finance Bank | 8.00 | 0.50 |
IDFC First Bank | 7.90 | 0.50 |
Bandhan Bank | 7.85 | 0.50-0.75 |
DCB Bank savings account interest rates
This private sector lender is offering an interest rate of 8% for savings account customers maintaining balances ranging from Rs 10 lakh to Rs 2 crore.
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"CD rates will most likely drop and drop substantially in 2024," says Robert Johnson, professor of finance at Heider College of Business at Creighton University. "The biggest reason is the likelihood of Federal Reserve rate cuts later this year."
What will the interest rates be in 2024 for savings accounts? ›
However, the Federal Reserve maintains their projection that there will be three interest rate cuts in 2024, reducing the federal funds rate to a range of 4.5% to 4.75%. Our new comparison tool — in partnership with Bankrate — will help you find the best rates available now.
Are CDs a good investment for 2024? ›If you don't need access to your money right away, a CD might be a good savings tool for you in 2024 while average interest rates remain high. CD interest rates are high in 2024 — higher nationally, on average, than they've been in more than a decade, according to Forbes Advisor.
Which bank is better for savings accounts? ›Salary-based Savings Account
Banks like HDFC, ICICI, and SBI frequently offer bonuses such as no minimum balance restrictions, attractive interest rates, and other privileges.
There are not any banks offering 7% interest on a savings account right now. However, two financial institutions are paying at least 7% APY on checking accounts: Landmark Credit Union Premium Checking Account, and OnPath Rewards High-Yield Checking.
Who has the highest 12 month CD rate? ›- Best for high APY: CIBC Bank USA - 5.66% APY.
- Best from a big bank: Marcus by Goldman Sachs® - 5.50% APY.
- Best for no minimum deposit: BMO Alto - 5.50% APY.
- Best for a large deposit: Popular Direct - 5.45% APY.
- Best from a credit union: Lafayette Federal Credit Union (LFCU) - 5.56% APY.
IDFC FIRST Bank offers interest rate up to 7% on balances more than Rs 10lac to less than Rs 5 crore. The new rates are effective from July 1, 2023.
Can you get 7% interest? ›One of the best deals is the First Direct Regular Saver which has an interest rate of 7%. This account has a maximum monthly deposit of £300 but, could earn you an additional £136.50 in a year if you were to put £300 into the account each month over a 12 month period.”