Top Savings Account With High Interest Rate
If growing your savings is your key motivator for opening an account, then a high-interest savings account might be what you’re looking for. We analyzed around 250 savings accounts from the top traditional banks, online banks, and credit unions to uncover the ones that deliver the highest interest rates, helping you grow your savings faster than other options.
Our Pick: Goldman Sachs Bank USA Online Savings
- Best Feature: No transaction fees
- A competitive interest rate without worrying about fees
The Goldman Sach Bank USA Online Savings account keeps it simple when it comes to saving. In addition to one of the top interest rates, the account comes with no monthly fees and no transaction fees at all. So, you can just focus on growing your savings.
Goldman Sachs Bank USA Savings Account Pros & Cons
Online Savings Account With Consistently Good Rates
A high-interest rate is great, but not if you can’t count on it remaining at that level. That’s why we keep track of banks that offer the most consistent interest rates on savings accounts. The winners are the banks that change their interest rates the least of all others in the industry, giving customers a reliable savings rate.
Our Pick: Synchrony Bank High-Yield Savings Account
- Best Feature: Consistently high rates
- Optional ATM Card
- No monthly maintenance fee
Synchrony Bank is hyper-focused on helping customers build savings and its savings account is designed for that common financial goal. Since its inception in 2014, the online bank kept its savings rate among the top ranks. Moreover, the account comes with no monthly fee and there's the option for an ATM card -- a handy benefit for those who want the ability to withdraw their cash in an emergency.
Synchrony Bank Savings Account Pros & Cons
Best Low-Fee Savings Account
Savings won’t mean much if you’re constantly losing it to high fees. Whether the fee is for excessive withdrawals or monthly maintenance, we scoured banks to find out which keep fees at a minimum. See our winners for this quarter below.
Our Pick: Radius Bank High-Yield Savings Account
- Best Feature: Free ATM card for cash withdrawals
- High yield savings
- Free ATM access worldwide
Radius Bank is big on providing easy and free access to your money - and its savings account is no exception to this. With this account, you can access your savings through a large network of ATMs, there’s no monthly fee, and you get a chance to earn a high APY.
Radius Bank Savings Account Pros & Cons
Best Money Market Savings Account
When it comes to savings accounts, money markets are the big players in high interest rates. If you have a large sum to put into savings and want to see it grow faster, a money market account can be the best way to save more by doing nothing. See our winners for this quarter below.
Our Pick: Capital One 360 Money Market Account
- Best Feature: Great interest rate
- Low Fees
- Simple money market account with no fees
The Capital One 360 Money Market account is one of the best savings account packages out there, thanks to its combination of more earnings and more convenience. With this account, you can earn one of the highest interest rates on the market for no monthly fee. You can also access your money easily (through Capital One’s top-tier mobile app) and as often as you’d like (a rarity for a savings account of any kind).
Capital One 360 Money Market Account Pros & Cons
How We Picked
Fees and Minimums
Other Important Features
Why Online Savings Accounts Tops Our Picks?
View Our Best Picks by Category
How We Picked
How did we decide what makes a great savings account? We researched around 250 savings accounts from the top banks for this guide.
The Best Savings Account picks are based on the consistency of high-interest rates, fees, minimum balance requirements, and account features. The overall rank for each institution within a specific category is dependant on how many days in the quarter that institution’s score was among the top 10.
On the surface, savings accounts seem simple, but there are a number of things you need to pay attention to when picking a savings account:
The interest rate is one of the most important aspects of a savings account. It can be the difference between losing to inflation and keeping pace with it. It can also accelerate your progress towards long-term savings goals.
Compounding, or the ability to earn interest on interest, is what makes interest so powerful. Imagine you’re trying to save $15,000 for a down payment on a home. Your plan is to put $100 a month into a savings account each month until you reach your goal. If you’re earning no interest, it will take you 150 months, or 12.5 years to reach your goal. If you’re earning 5% interest, it will take you less ten years. You’ll have contributed $12,000 and earned more than $3,000 in interest after 10 years. More than 20% of the money for your down payment will have come from interest.
Why high interest rates important
|After X Years...||Average Savings APY at Top National Banks: 0.026% APY||Average Savings APY at Top Online Banks: 1.21% APY|
|Total Interest Earned||$26||$1,278|
Related: Try our Savings Calculator to find out how much you can save
Many online banks offer savings interest rates with higher APYs than national banks. Some credit unions may also offer higher rates on limited amounts if you meet balance and transaction requirements.
Savings accounts rates at the top national banks
|Bank of America||0.03%|
You might be willing to put up with the occasional fee if you have a big chunk of change in your savings account and that tasty interest rate makes it worth your while. However, that interest rate you signed up for might not be the one you’re getting a year, six months, or even three months down the road. And then, your account choice might not look like as nearly a good of choice anymore.
This is commonly called a teaser rate or an introductory rate, and the difference between what you get going in and what it changes to can be drastic, with your interest payments at times being cut nearly in half.
To be sure, a lot of banks won’t be completely forthright about how much you’ll be charged for certain services. We read the fine print to ensure you’re getting the best and most consistent rates for your savings account.
Fees and Minimums
Fees and minimums are the other major aspect of savings accounts that you need to watch out for. The entire idea of a savings account is for it to be a safe place for your money. You can hardly call a savings account safe if your bank will take the money from you with fees.
Unfortunately, many banks are now charging fees for even the most basic accounts. Bank of America®, for example, has a $5 monthly fee on its basic savings account. Chase has the same fee for its Chase Savings account. Since the interest rate at both banks is so low, those fees can easily outpace the interest you can earn.
There are usually ways to avoid fees on savings accounts. Bank of America® will waive its savings account fee if you maintain a $300 minimum balance. You can also avoid the fee if you have a checking account with Bank of America®. Similarly, Chase will remove the fee with a minimum balance of $300, or a monthly repeating transfer of $25 from a Chase checking account. Banks use fees to encourage their customers to act in specific ways.
Savings accounts minimum balances to avoid monthly fees
|Bank||Fee||Minimum Balance to Avoid Fee|
|Bank of America||$8||$500|
|Capital One 360||$0||$0|
|Marcus by Goldman Sachs||$0||$0|
|American Express Bank, FSB.||$0||$0|
If you don’t hit the minimum balances, some institutions will charge you if you don’t have another account at the same bank, like a checking account. This can limit your options when it comes to diversifying your banking.
The ability to set up recurring transfers is a very useful feature for a bank account to have.
Recurring transfers can be used to send money to an investment account, move it to a vacation account, or otherwise automate your financial life. If you’re saving up for multiple financial goals at once, recurring transfers make it easy to do without having to spend hours entering transfer requests.
Setting up a recurring transfer should be a free feature at banks that offer it. Savings accounts are designed to make your financial life easier, and recurring transfers take that a step further.
You have the best of intentions to build larger savings, but we all know reality creeps in when you’re not expecting it. There may be times when you'll have to access those funds for urgent matters. It could be once a month or several times a month.
What you might not have read in the fine print is that too many withdrawals in a month can cost you. It is federal law for banks to limit withdrawals to a maximum of six per month for savings accounts.
Banks could charge an excess withdrawal fee for each withdrawal after reaching the limit. Some banks will start charging after three or four withdrawals per month. If these excess withdrawals become frequent, the bank could automatically convert your savings account to a checking account or close your account entirely.
Excess withdrawal fees at the top banks
|Bank||Excess Withdrawal Terms|
|Bank of America||$3 after the 3 allowed|
|Wells Fargo||$15 after the 6 allowed|
|Chase||$5 after the 6 allowed (max. of 3)|
|Citibank||Does not charge|
|U.S. Bank||$25 after the 6 allowed|
|PNC Bank||$3 after the 3 allowed|
|Capital One||$10 after the 6 allowed|
|TD Bank||$9 after the 6 allowed|
|BB&T||$15 after the 6 allowed|
|SunTrust||$4 after the 2 allowed|
|Ally Bank||$10 after the 6 allowed|
|Capital One 360||Does not charge|
|Marcus by Goldman Sachs||Does not charge|
|Discover Bank||$15 after the 6 allowed|
|American Express Bank, FSB.||Does not charge|
|Synchrony Bank||Does not charge|
Overdraft fees are big business for banks. The banks, in turn, often offer a way for you to use your savings accounts to "protect" you from these fees. But the reality is they don't complete protect you, and only lessen the burn.
The way overdraft protection works by linking your savings account to your checking, and will automatically transfer funds to cover should you accidentally overdraft your checking. Sounds like a nice enough feature, and it makes sense. After all, you had the money -- just not in the right account. Anything to avoid that pricey $35 overdraft fee.
The problem is, this service often isn’t free. You’re being protected from overdraft, to be sure, but you’re still paying something for the service. Overdraft transfer fees cost about one-third of your typical overdraft fee. So while you are paying less than normal, you're still being charged -- making this one important feature. This is one feature to inquire about when evaluating your top savings account options.
Other Important Features
There are some other features we look for in savings accounts that can enhance an account:
The Ability to Open and Nickname Sub-accounts
Some banks let you separate your savings account into multiple pools of cash. You can then add a nickname like “vacation fund” or “down payment” to those sub-accounts. That makes it easy to track multiple goals at once.
Debit Card Access
Savings accounts might also offer debit cards so that you can withdraw your cash more easily. If yours does, be sure to keep track of what ATM network the bank is part of so that you can avoid fees.
A high quality mobile banking app can also make or break the savings account experience. Being able to transfer money or check your balance in a pinch is a useful tool. Once you get used to it, it’s difficult to not have those options.
Automatic Savings Programs
Other features, like Bank of America®’s Keep the Change program, can help you save in other ways. Knowing all of the miscellaneous features a savings account offers can help you decide on the right account for you.
The FDIC insures every savings account in the United States for up to $250,000. Even if the bank that your savings account is at closes, you’ll get your money back (up to the covered amount).
The FDIC is backed by the full faith and credit of the U.S. government. That means you can don’t have to worry about the FDIC running out of money. Every dollar you put in a savings account is completely safe.
Why Online Savings Accounts Tops Our Picks?
Online banks don’t have to charge fees to stay afloat due to their low overhead costs. By avoiding the need to rent buildings and hire tellers for physical locations, online banks can centralize their operations. This greatly reduces the cost of running the bank. Online banks also understand that it can be difficult not to have a physical location to visit when you need to withdraw or deposit cash. That’s why most online banks refund ATM fees, within reason.
Online banks are also able to offer high-interest rates because of their lower costs. As a bonus, online banks tend to have great mobile and online apps, since they’re the main interface customers will use.
Credit unions can also offer low fees and high-interest rates, but for a different reason than online banks. Credit unions are, in fact, owned by the people who open accounts with them. That means that they will always be run to try to maximize the benefit of account holders. However, credit unions have eligibility requirements that must be met before you can become a member.
An online savings account can be a great way to stash away your cash and earn interest. It’s certainly a better option than putting your extra money in a buried coffee can in the front yard or its bank equivalent, the interest-free checking account.
Many people do not realize that certain types of savings accounts can end up costing you money while earning a negligible interest rate. The associated fees could more than cancel out the money that you’re going to earn. So, your balance could actually get smaller with each passing month. A coffee can isn’t looking too bad now.
When opening a savings account, there are several little tricks banks can use to keep you from noticing discrepancies. This is a type of deposit account can be a virtually risk-free place to sock away cash until you figure out what else to do with it. But, you need to make sure you’re not going to get blindsided by hidden fees or other costs.
View Our Best Picks by Category
Best Savings Accounts
|Goldman Sachs Bank USA||Online Savings||Best High-Yield|
|Synchrony Bank||High Yield Savings||Best High-Yield|
|Radius Bank||Premium Savings||Best High-Yield|
|Synchrony Bank||High Yield Savings||Most Consistent Rate|
|Ally Bank||Online Savings Account||Most Consistent Rate|
|Capital One 360||360 Savings||Most Consistent Rate|
|Goldman Sachs Bank USA||Online Savings||Low-Fee|
|Radius Bank||High-Yield Savings||Low-Fee|
|Capital One 360||360 Savings||Low-Fee|
Best Money Market Accounts
|Capital One 360||Money Market Account|
|Ally Bank||Money Market Account|
|BBVA Compass||ClearChoice Money Market Account|