Top 3 Savings Accounts of 2020
Emergency expenses have a way of surprising us and causing chaos in our budgets when we least expect them.
If you don’t have a savings account, now is a great time to start building a nest egg or emergency fund.
There is no shortage of banks and financial institutions offering deals on savings accounts, and with the many online banking solutions that are now available, banks are competing more than ever for your business.
This means better more value, better features, fewer fees, and more perks, just to get you to choose their bank over the thousands of others that are available.
However, it can be complicated trying to decide which bank to go to, especially with so many out there to choose from.
Although online banks offer their own perks, it’s no secret that they also offer some of the best benefits and services.
Further, online banks pay up to 100 times more than national banks, which is the primary feature to look for when choosing a savings account. Our picks for the best savings accounts include the following.
1. Barclays Savings Account
Barclays offers a savings account with rates that are more than 12x the national average. There are no monthly maintenance fees, and no minimum deposit is required to open a savings account.
Barclays savings accounts include secure access to your funds any time of the day or night, online transfers to and from other banks, and direct deposit.
Further, Barclays offers a number of tools, such as the Savings Assistant and Dream Assistant, that could be helpful in building your savings account faster.
2. Capital One 360 Performance Savings Account
Although well-known for its line of credit cards, Capital One actually offers other competitive financial products such as its Capital One 360 Performance Savings Account.
There are no fees for opening a savings account and no minimum deposit is required. Capital One 360 Performance Savings Accounts include some features you may not find with other banks.
For instance, you can open multiple accounts, name them, and then track specific savings goals. You can also create and automatic savings plan to conveniently build your savings account.
3. Ally Savings
Ally Bank also offers savings accounts with a competitive APY . There are no fees, and no minimum deposit is required to open a savings account.
You can make deposits with Ally eCheck Deposit or ACH transfers. Further, you can access your account anytime, and if you have questions or concerns, Ally customer service is available 24/7.
It’s easy to manage this account thanks to Ally’s well-designed mobile and online platform and you can even separate accounts into different savings goals.
What to Look For in a Bank
When you choose a bank for a savings account, it could be helpful to consider whether or not you need other financial products such as checking accounts, mortgages, and auto loans.
Many times, you can get much better service and better features if everything you need is with one bank.
On the other hand, you could find you benefit more if you look at each type of account individually and consider which bank is best for each. Some of the features you should consider which bank to hold your savings include the following:
- APY. How much interest will you earn on your savings account?
- Minimum deposit required. How much of a deposit is required and do you have it available to start the savings account?
- Fees. Are there extra fees or hidden fees that are going to cancel out any interest you earn? When it comes to bank accounts, free is always good.
- Convenience. How easy (or difficult) is it to reach customer service and get help? Can you deposit and withdraw easily? What kind of features are included with the account?
Online Savings Accounts vs. National Banks
|Bank||APY||Minimum to Earn APY|
|Capital One 360||1.00%||$10,000|
|Bank of America||0.03%||$0|
Choosing the Right Savings Account
Although it can seem overwhelming, choosing the right savings account is just a matter of focusing on the features that are most important to you.
Obviously, a savings account with a high APY, such as the Barclays and Ally savings accounts, can be beneficial because you are able to earn more and you can build your savings account faster.
However, in some instances, such as the Capital One 360 Performance Savings Account, which offers a slightly lower APY, considering the other benefits and features you get could be worth a lower APY.
In any event, the APY is still higher than the rate you will get with many other banks, with many accounts paying significantly lower rates.
In fact, even large and well-known financial institutions are offering rates as low as 0.01% for their savings accounts.