|
You might be using an unsupported or outdated browser. To get the best possible experience please use the latest version of Chrome, Firefox, Safari, or Microsoft Edge to view this website. |
SCROLL TO SITE
The best online savings accounts complement your financial goals and habits. At the very least, this means finding an account that offers a decent return for your money, charges very few fees and has easy-to-meet minimums. Account features like automated savings tools and ATM cards are a helpful bonus.
We’ve compared 73 savings accounts at 53 nationally available banks and credit unions to find some of the best accounts available. See below to learn more about why we picked each account, the pros and cons, and to access individual bank reviews.
Annual percentage yields (APYs) and account details are accurate as of April 5, 2022.
0.50% to 5.00%
$0
$0
In 2020, Varo became the first U.S. consumer fintech company to receive a national bank charter, allowing it to offer FDIC insurance and expand its banking services.
Varo Bank pays 0.50% APY on all balances—a competitive rate. And savers who meet certain requirements each qualifying period can earn up to 5.00% APY, a rate that’s far above what most other online savings accounts pay. You can learn how to earn the 5.00% APY in Details below.
This account charges no monthly fees or minimum balance requirements. It also comes with automated savings tools, including Save Your Change and Save Your Pay, to help make saving easier.
Plus, Varo gets excellent customer service ratings. It has a robust FAQ section on its website that addresses a number of common issues. Customers can also email support directly or call to speak with a representative seven days a week. And the bank’s mobile app is highly rated.
Read our full Varo Bank Review.
To earn 5.00% APY, customers must receive total direct deposits of $1,000 or more within each qualifying period, maintain a daily savings account balance of $5,000 or less for the entire calendar month and maintain balances above or equal to $0.00 in both savings and bank accounts for the entire calendar month.
0.25% to 1.50%
$5
$0
The Smart Saver account is designed not only to help you save but to maximize your savings. It pays up to 1.50% APY on deposits from $50 to $1,000 each month. This means that the maximum you can deposit each month is $1,000—deposits over that threshold are automatically transferred to a Membership Savings account at the credit union. But there’s no restriction on the total balance you can accrue in the account, allowing you to build your savings balance over time continuously.
Along with keeping your deposits within range, you’ll have to jump through some other hoops to earn the highest dividend rate (see Details), but it could be well worth it for those who can meet the requirements. This can be a good account for those who plan to save in the $50 to $1,000 range monthly and want a savings account at a full-service credit union.
You can join Consumers Credit Union by making a one-time donation of $5 to the Consumers Cooperative Association.
Read our full Consumers Credit Union Review.
Yields earned on credit union accounts are referred to as dividends rather than interest. Dividends are compounded and credited monthly. Consumers allows you to earn 1.50% APY on your existing balance and on deposits of up to $1,000 per month. Consumers transfers any deposit amounts exceeding $1,000 in a given month into your Membership Share Savings account at the end of the day the transaction occurs. The Membership Share Savings account pays 0.03% APY.
To earn 1.50% APY, you have to meet the following requirements:
If you don’t meet the minimum qualifications during a given month, the dividend rate drops to 0.25% APY. There is no maximum total balance you can accumulate, so long as you make monthly deposits of $1,000 or less and meet the other requirements.
0.45% to 0.70%
$0
$0
Aside from the competitive APY range, the SmartyPig online savings account from Sallie Mae provides savers with tools to create and track savings progress for specific goals—just like an online piggy bank.
It doesn’t require a minimum deposit or ongoing balance, and it doesn’t charge a monthly fee.
This account also can help savers with smaller balances build up their savings faster.
You’ll earn the best yield on balances of $10,000 or below. Notably, the SmartyPig Account’s tiered rate structure, which pays higher yields on lower balances, is the opposite of what you’ll find at many other banks. Typically, higher balances earn higher yields.
Read our full Sallie Mae Bank Review.
The SmartyPig account pays 0.70% APY on balances from $0.01 to $2,500, 0.70% APY on balances from $2,500.01 to $10,000, 0.45% APY on balances from $10,000.01 to $50,000 and 0.45% APY on balances of $50,000.01 and above. Interest is compounded daily and credited monthly.
0.61%
on balances of less than $25,000
$250
$0
Axos Bank’s High Yield Saving Account pays a very competitive rate and has a relatively low minimum deposit requirement. And there’s an ATM card with this account upon request. Customers who take advantage of this offer have access to approximately 91,000 surcharge-free ATMs throughout the U.S. That’s one of the most extensive ATM networks available among online banks.
The bank also offers 24/7 customer service and a highly rated mobile app.
Read our full Axos Bank Review.
Interest is compounded daily and credited monthly. The High Yield Savings Account earns 0.61% APY for balances under $25,000. Balances between $25,000 and $100,000 earn 0.25% APY. Balances of more than $100,000 earn 0.15% APY.
0.75%
$100
$0
Quontic’s savings account ranks well in all of the categories it needs to for it to make our list—it offers a decent APY, low fees and easy-to-meet minimums.
But Quontic is also a good bank for those interested in more than a savings account. It earned the top spot on our list of the Best Online Banks Of 2022, offering competitive rates and terms on all of its banking products. The bank also offers excellent customer service and a decent mobile app.
Read our full Quontic Bank Review.
Interest is compounded daily and credited monthly. There is a $10.00 excess transaction fee for certain transactions over six from the account per account statement cycle.
0.50%
$0
$0
Marcus offers an attractive APY on its High-Yield Online Savings Account with no minimum deposit requirement to open an account. There are no monthly fees or fees for domestic wire transfers. And it allows for same-day transfers of $100,000 or less to or from other banks.
Since it’s an online bank, Marcus doesn’t have a branch network, but customers can access their account via the bank’s website, mobile app and by phone.
Read our full Marcus By Goldman Sachs Review.
Interest at Marcus is compounded daily and credited monthly. Marcus is the consumer division of Goldman Sachs, one of the biggest names in banking.
0.60%
$5
$100 required to earn dividend
$0
with eStatements
Alliant Credit Union’s High-Rate Savings account offers a competitive dividend rate and, so long as you elect or eStatements, you won’t pay a monthly fee (see Details). There’s a $5 initial deposit to open an account, but the credit union reimburses you for that deposit.
Once you’re an Alliant member and have a High-Rate Savings account, you can open up to 19 supplemental savings accounts, allowing you to save for specific goals under one roof. You can open these accounts with a $0 balance and add funds at a later date.
The credit union’s app, available on iOS and Android, allows you to manage money, deposit checks, make payments and use budgeting tools.
You can join Alliant Credit Union by becoming a member of Foster Care to Success (FC2S) for a $5 fee that is credited back to your account, once it’s set up.
Read our full Alliant Credit Union Review.
Dividends are compounded monthly and credited on a monthly basis. You must maintain a $5 minimum to keep the account open and a $100 minimum balance to earn dividends. Alliant charges a $1 monthly fee to receive paper statements.
0.60%
$0
$0
Synchrony Bank’s High Yield Savings account has very few fees and a competitive 0.60% APY. The optional ATM card comes with access to ATMs that display the Plus or Accel logos in the U.S. or abroad, allowing you to withdraw your cash easily around the globe. The bank reimburses up to $5 per month for domestic out-of-network ATM charges, although it doesn’t reimburse for conversion fees or access fees charged by ATMs overseas. Withdrawals made at ATMs do not count toward your monthly transaction limit (see Details).
You can also make electronic transfers to and from accounts at Synchrony and other banks and make wire transfers.
There’s no minimum balance requirement to open the account, nor is there a monthly fee.
Read our full Synchrony Bank Review.
Interest is compounded daily and credited monthly. Certain kinds of withdrawals and transactions from your Synchrony High Yield Savings account are limited to six per statement cycle, but withdrawals made at automated teller machines do not count toward that limit.
0.50%
$100
$0
There are a lot of features to like about Vio’s savings account. It pays a competitive interest rate, charges no monthly fee and only requires $100 to open.
Customer service support is available—both by phone and by chat—seven days a week, with slightly shorter hours on the weekend. Both Vio online banking and the Vio app support online transfers and other banking tasks 24/7.
Notably, this account doesn’t come with an ATM card or check-writing capability. And Vio has no ATM or branch network. These may be negative traits for those who need frequent access to cash. But it’s a potential boon for savers looking to keep their hands off the cash they set aside—the temptation to withdraw a little cash from savings is reduced.
Read our full Vio Bank Review.
Interest is compounded daily and credited monthly.
0.50%
$0
$0
Ally Bank offers a competitive APY on its savings account, with low fees and no monthly maintenance fee or minimum balance requirement. Plus, savers have access to several automated savings tools.
Ally’s savings “buckets” allow you to specify up to 10 different savings goals within a single savings account. With the “Round Ups” feature, Ally tracks purchases from your checking account for transactions it can round up to the nearest dollar and transfer to your savings account. And the bank’s “Surprise Savings” feature analyzes your linked checking account for money that’s safe to save and transfers it to your savings automatically.
Ally Bank’s customer service department is available by phone 24/7, but you can also contact the bank by live chat, email and regular mail. And this online bank’s mobile app gets high scores both on the App Store and Google Play.
Read our full Ally Bank Review.
Interest at Ally is compounded daily and credited monthly.
Online savings accounts are opened and maintained primarily online.
These accounts stand out from regular savings accounts in that they tend to pay significantly more than the average savings account rate, which is 0.06% APY as of March 21, 2022, according to the FDIC.
You’ll find that the best online savings accounts are frequently offered by online banks and credit unions, which don’t typically have the costs associated with operating traditional brick-and-mortar banks. Without the expense of physical branches, online banks can pass those savings on to their customers in the form of higher yields and lower fees. But some banks offer both online and brick-and-mortar savings options.
Keep in mind that the bank or credit union offering an online savings account may have only a few products, which means your checking account may be separate from your savings account. Fortunately, digital technology makes it easy to transfer money and automate your finances.
APY may be what catches your eye when shopping for a savings account, and rightfully so. It’s crucial to find an account that helps you get the most for your money.
Still, there are other important criteria to keep on your comparison checklist. One account may suit your financial goals and banking habits better than another, even if it offers a slightly lower APY. In addition to APY, here are some other features to pay attention to when shopping around:
It’s also important to consider your financial goals and needs to figure out which savings account features are most valuable to you.
For example, if you need help setting and tracking financial goals, choose an account that offers savings tools. If you often need to bank while on the go, find an account with a highly rated mobile app. Your needs and behaviors can help guide you toward the savings account that’s right for you.
The process to open a savings account online differs slightly by bank and credit union.
Generally, you can fill out an application online via the bank or credit union’s website. You’ll provide your name, Social Security number, date of birth and other contact information. Once you’ve chosen your account type and get approved, you can start funding the account. Funding options may include bank transfer, check or wire transfer.
You may open more than one savings account. It can be helpful to have different accounts for different savings goals.
Financial Institution | Best For |
---|---|
Varo Bank | Best Overall Savings Account |
Consumers Credit Union | Best Credit Union Savings Account |
Sallie Mae Bank | Best for Savings Goals |
Axos Bank | Best for ATM Access |
Quontic Bank | Best for Full-Service Banking |
Marcus by Goldman Sachs | Best for Same-Day Transfers |
Alliant Credit Union | Best for Supplemental Savings Accounts |
Synchrony Bank | Best for Access to Cash Worldwide |
VIO Bank | Best for Parking Cash |
Ally Bank | Best for Savings Tools |
To create this list, Forbes Advisor analyzed 73 online savings accounts at 53 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each institution on 12 data points within the categories of APY, fees, customer experience, digital banking experience and minimum requirements. All of the accounts on our list are online-based accounts.
Here’s the weighting assigned to each category:
We also considered whether there were complex tier structures or requirements to earn the APY or stipulations to earn the APY. To be on this list, the online savings account must be nationally available.
Yes, so long as the account is insured by the FDIC (Federal Deposit Insurance Corporation) at a bank or the NCUA (National Credit Union Administration) at a credit union.
Online financial institutions have the same protections as savings accounts opened at a bank or credit union with branches. They are insured up to $250,000 per depositor, per bank, for each account ownership category, in the event of a bank or credit union failure. Before opening a savings account, confirm that the financial institution is FDIC or NCUA insured.
Rates on savings accounts tend to be variable. Banks and credit unions adjust interest rates for various reasons. Typically, financial institutions change their rates when the Federal Reserve adjusts the federal funds rate.
In the current environment, savings APYs are low. However, this doesn’t necessarily mean that switching banks to get a better interest rate makes sense for you.
Online savings account customers generally have several options for making deposits and withdrawals. These include online funds transfer with another bank account, wire transfer, phone transfer or depositing a physical check. Some online accounts also offer ATM or debit cards.
Interest earned from your savings account is generally considered taxable by the IRS. If you earn $10 or more in interest in a year, your bank or credit union will provide you with a 1099-INT to include in your tax filings.
Even if you don’t receive a 1099-INT from your financial institution, you still must report all earned interest income.
Mitch Strohm is the Assistant Assigning Editor for Banking and Personal Finance. He has more than a decade of experience as personal finance editor, writer and content strategist. Before joining Forbes Advisor, Mitch worked for several sites, including Bankrate, Investopedia, Interest, PrimeRates and FlexJobs.