ElitePersonalFinance found the Best Savings Accounts of December 2025

For anyone looking to put their money in a safe place, savings accounts are one of the best places to start. Today, many savings accounts offer an APY of 4% (digital-only banks), providing greater flexibility than traditional banks like Chase and Wells Fargo. Plus, innovative and easy-to-use financial tools, flexible account structures, and other incentives make it even easier to turn to savings accounts.

Why You Should Trust ElitePersonalFinance?

At ElitePersonalFinance, we’re dedicated to educating consumers on how to manage their finances effectively. Although traditional banks offer minimal interest rates, today’s top savings accounts provide quick access, useful budgeting tools, FDIC insurance up to $250,000, and an excellent way to park your money towards building an emergency fund or saving for a future expense.

If you’re risk-averse (and prefer not to hold your funds in stocks, ETFs, or index funds), then savings accounts may be right for you. All of our recommended options come with no hidden fees and (almost) no minimum balances, offering the power of compounding interest for both new and experienced savers.

Keep reading to learn more about the best savings account opportunities available today, key features, comparisons versus other savings vehicles, and how to choose the correct account for your personal financial situation.

Chase

One of the oldest banking institutions in the country, Chase offers a savings and premium savings program that provides a base APY and higher rates when pairing your account with a Chase Premier Plus Checking or Chase Sapphire Checking account, which can be kept active as long as you meet specific requirements, such as making at least five transactions a month.

However, one downside to this traditional bank is that it does not offer any high yield savings programs. As of August 2025, you can earn an APY of 0.01%, which is pretty much rock bottom. However, if you want to take advantage of in-person support, access to over 94,700 branches and 15,000 ATMs nationwide, and full integration into the larger Chase ecosystem, a Chase savings account is a worthwhile option.

What We Like:

• FDIC-insured up to $250,000
• One of the largest branch and ATM networks in the country
• Integration into the Chase ecosystem
• Additional perks with Chase Premier Plus Checking or Chase Sapphire Checking
• Excellent mobile and online banking features

What We Don’t Like:

• Extremely low APY of 0.01%
• $100 minimum opening deposit
• Monthly service fees apply
• Lower than average rates
• High balance requirement to avoid the monthly fee

Eligibility & Next Steps:

• 18 years of age or older
• Valid government-issued ID
• Valid Social Security number or ITIN
• Have a U.S. residential address
• Minimum opening deposit at account setup
• Completed application through the Chase portal or branch

Terms: Chase Savings is a savings account that offers tiered interest rates depending on account balance and eligibility. For example, if you maintain a balance of $10,000, you could earn interest according to the applicable APY tier. There are no monthly maintenance fees if you meet certain requirements, such as maintaining a minimum balance or linking to a Chase checking account. Actual yield on any Chase savings account depends on several factors, including balance tiers, compounding frequency, and any available promotions.

Wells Fargo

Wells Fargo customers can participate in the Way2Save Savings account, which offers a base APY of 0.01%. Like Chase and Bank of America, Wells Fargo requires a $25 minimum deposit and a $5 monthly service fee. However, you can waive it if you maintain a $300 minimum daily balance or set up recurring automatic transfers with a minimum of $25. Do you have a Wells Fargo Campus ATM or a Clear Access Banking account? That will waive it as well.

Plus, Wells Fargo has over 4,400 branches and more than 11,000 ATMs nationwide, making it a suitable option for existing Wells Fargo customers who already hold checking accounts or other financial products. Plus, when you link savings, you can enjoy instant transfers and one-stop shopping for financial management.

What We Like:

• Excellent starter account
• $25 minimum opening deposit
• Over 4,400 branches and 11,000+ ATMs nationwide
• Ability to waive the $5 monthly service fee

What We Don’t Like:

• No bonus APY tiers
• APY of just 0.01% (vs. 4%+ online accounts)
• $5 monthly fee

Eligibility & Next Steps:

• 18 years of age or older
• Valid government-issued ID
• Valid Social Security number or ITIN
• Have a U.S. residential address
• Minimum opening deposit at account setup
• Completed application through the Wells Fargo portal or branch

Terms: Wells Fargo Way2Save Savings is a savings account that offers interest based on your account balance and eligibility. For example, if you maintain a balance of $10,000, you could earn interest according to the applicable APY tier. Monthly maintenance fees can be avoided by meeting certain requirements, such as a minimum daily balance or automatic transfers from a linked account. Actual yield on any Wells Fargo savings account depends on balance tiers, compounding frequency, and any available promotions.

Bank of America

Another one of the nation’s most revered banks, Bank of America, offers Advantage Savings, which earns a base APY of 0.01%. If you participate in its higher-tier Preferred Rewards program, you can earn up to a 0.04% APY, which is still lower than that of all online banks.

Plus, you’ll need to pay a monthly maintenance fee and a $100 minimum deposit, which typically eats up your earnings. However, if you become a Preferred Rewards member and maintain at least $500 in your account or in a qualifying checking account, you can be exempt from this requirement. Like all banks, funds are also FDIC insured, up to $250,000.

In short, you’ll also consider the Bank of America for its extensive branch network and nationwide presence (over 3,800 branches and 15,000 ATMs). Like Chase, it is also best for existing Bank of America customers who have multiple products, such as checking or credit cards. Additionally, there’s an element of working with a large institution, which can instill more trust, depending on the person.

What We Like:

• APYs up to 0.04% with Preferred Rewards
• FDIC insured up to $250,000
• $100 minimum deposit to open
• One of the nation’s largest ATM networks

What We Don’t Like:

• Standard APY of just 0.01%
• Preferred Rewards APYs paltry compared to online banks
• $500 balance required for no monthly fee

Eligibility & Next Steps:

• 18 years of age or older
• Valid government-issued ID
• Valid Social Security number or ITIN
• Have a U.S. residential address.
• Minimum opening deposit at account setup
• Completed application through the Bank of America portal or branch

Terms: Bank of America Advantage Savings is a savings account that offers tiered interest rates depending on account balance and eligibility. For example, if you maintain a balance of $10,000, you could earn interest according to the applicable APY tier. Monthly maintenance fees can be avoided by meeting certain requirements, such as maintaining a minimum daily balance or linking to a Bank of America checking account. Actual yield on any Bank of America savings account depends on balance tiers, compounding frequency, and any available promotions.

Raisin

Raisin offers one of our favorite aggregation tools, providing more than 35 savings account options from federally insured US banks and credit unions in one place.

Choose from multiple competitive interest rate offers, which may or may not include promotional balances for new savers depending on the amount and deposit.

One significant advantage is the low fees and a small minimum deposit requirement. As of this writing, it’s offering a $1,000 bonus by using code EASY at signup (as of Sept 2025), as long as you make qualifying deposits. Its interface is straightforward to use, with comparative tables offering bank name, product, APY, and an annualized earnings estimate.

What We Like:

• Review more than 75 high-yield savings products
• No minimum balance requirements
• Up to $1,000 bonus for qualifying deposits
• Low minimum deposit
• Top-notch compliance and security standards
• Promo code offers for first-time customers

What We Don’t Like:

• Only SMS-based two-factor authentication (2FA)
• Not the best external bank linking
• It may take 1-3 business days for linked account bank transfers
• No debit card or check writing

Eligibility & Next Steps:

• 18 years of age or older
• U.S. resident with Social Security number
• U.S.-based checking account
• Completed application through the Raisin website

Terms: Raisin Checking is an online marketplace that allows you to compare savings accounts and how they compare to each other. APYs offered depend on account balance tiers and eligibility, with no monthly maintenance or minimum balance requirements applying to most. Actual yield on any savings account or high-yield savings account depends on several factors, such as balance tiers, the amount you spend, and any available promotions.

CIT Bank

CIT is well-known for its flexible savings account options, which offer competitive APYs and a beginner-friendly interface. It’s most popular for its Platinum Savings Account, which provides a 4% APY (as of this writing) on balances of $5,000 or more, with no minimum opening deposit required. This rate is 10 times the national average and offers data compounding interest with no opening or maintenance fees.

However, that does require a $1,000 minimum opening deposit. However, keep in mind that if you have a balance of less than $5,000, then you’re only eligible for a 0.25% APY.

Additionally, all deposits are FDIC insured, backed by First Citizens Bank, which has been in operation for over 125 years. If you’re ready to open an account, it only takes as little as five minutes to get started.

What We Like:

• Platinum Savings for 4% APY
• Higher rates than traditional banks
• Easy-to-use digital platform
• No monthly maintenance fees
• FDIC insurance through First Citizens Bank

What We Don’t Like:

• $1,000 minimum opening deposit required
• Only eligible for a 0.25% APY with a <$5,000 deposit
• No physical branch for in-person banking
• Not the best product variety
• 1–3 business days for the first terminal account transfers

Eligibility & Next Steps:

• 18 years of age or older
• U.S.-based checking account
• Minimum opening deposit
• Completed application through the CIT Bank website

Terms: CIT Bank High-Yield Savings is a savings account. It offers APYs as high as 4.65%. For example, if you have $10,000, you could earn up to $465 in interest per year. There are no monthly maintenance fees and no minimum balance requirement to open an account. Actual yield on any CIT Bank savings account or high-yield savings account depends on several factors, such as balance tiers, daily/monthly/quarterly compounding interest, and any available promotions.

SoFi

With more than 11 million members, SoFi’s online savings account program offers up to a 3.80% APY (nearly nine times the national average savings account rate) and no account fees. Plus, you’ll qualify for deposits and can earn up to a $300 bonus.

Arguably, SoFi has the best front-facing interface. We find it helpful to use the savings calculator (enter an initial deposit, monthly contribution, and number of years saved) to get a total breakdown of interest earned over time versus Chase and Bank of America. We also appreciate its financial insights tool, which lets you navigate to the app to view all your financial accounts in one place, complete with credit monitoring, spending insights, and more.

What We Like:

• More than 11.7 million members
• $12 billion in rewards earned
• Up to 3.80% APY
• Earn bonuses up to $300
• Insightful financial insights tool

What We Don’t Like:

• No physical branch locations
• Savings APY lower than CIT Bank and Ally (depending on tiers)
• Up to several business days for external account transfers
• Overwhelming homepage at times

Eligibility & Next Steps:

• 18 years of age or older
• U.S. resident with a valid Social Security number
• No minimum deposit required
• Completed application through the SoFi website

Terms: SoFi Savings is a savings account. It offers APYs as high as 4.60%. For example, if you have $5,000, you could earn up to $230 in interest in a year. There are no monthly maintenance fees and no minimum balance requirement to open an account. Actual yield on any SoFi savings account or high-yield savings account depends on several factors, such as balance tiers, daily/monthly/quarterly compounding interest, and any available promotions.

American Express

With more than 170 years in the game, American Express’ online savings account offers up to 3.50% APY with no monthly fees and no minimum balance requirements. This beats the national average of 0.39% (as of August 2025). One of the most appreciated things about American Express’s savings program is that interest compounds daily, allowing you to maximize returns on your deposit.

Like SoFi, American Express offers a helpful calculator that allows you to enter an initial deposit amount to see the total estimated balance after one year, based on its current rate. Note, rates are subject to change at any time.

What We Like:

• More than 170 years in business
• Competitive APY up to 3.50%
• No monthly maintenance fees or minimum deposit
• Daily compounding interest
• Intuitive online savings calculator

What We Don’t Like:

• Not the highest APYs compared to other bank
• 1–3 business days for transfers to complete
• No physical in-person branches
• No debit card access

Eligibility & Next Steps:

• 18 years of age or older
• Valid Social Security number
• U.S.-based checking or savings account
• No minimum deposit required
• Completed application through the American Express website

Terms: American Express High-Yield Savings is a savings account. It offers APYs as high as 4.25%. For example, if you have $10,000, you could earn up to $425 in interest in a year. There are no monthly maintenance fees and no minimum balance requirement to open an account. Actual yield on any savings account or high-yield savings account depends on several factors, such as balance tiers, the amount deposited, and any available promotions.

Barclays

The Barclays Online Savings program is a solid performer, offering a rate five times the national average (3.70% APY) with no monthly maintenance fees and no minimum balance required to open an account. Its Tiered Savings program also incentivizes depositors with higher rates based on balance.

For example, those who deposit anywhere from $25,000 to $49,999 will enjoy a 3.90% APY, whereas those depositing $250,000 or more will earn 4.10% APY.

Like SoFi and American Express, Barclays also offers a term savings calculator, which allows you to enter an amount and duration in months to calculate how much your savings can grow over time. By providing all these tools to borrowers, one can be better informed about the true compounding power.

What We Like:

• Competitive base rate of 3.70% APY
• Tiered Savings Program for higher balances
• No minimum balance requirements and no maintenance fees
• Helpful savings calculator

What We Don’t Like:

• Highest APYs for larger balances only
• Rates subject to change
• No checking account option
• Customer service primarily online or phone-based

Eligibility & Next Steps:

• 18 years of age or older
• Valid Social Security number
• U.S.-based checking or savings account
• No minimum deposit required
• Completed application through the Barclays website

Terms: Barclays Online Savings is a savings account. It offers APYs as high as 4.35%. For example, if you have $10,000, you could earn up to $435 in interest in a year. There are no monthly maintenance fees and no minimum balance requirement to open an account. Actual yield on any savings account or high-yield savings account depends on several factors, such as balance tiers, the amount deposited, and any available promotions.

Axos Bank

Online-only Axos Bank offers two types of savings accounts: Axos One and Summit Savings. Customers can earn up to 4.46% APY on savings and 0.51% APY on checking, whereas Summit Savings offers a rate of 0.51% APY on checking. However, I was able to earn a straight 4% APY on all balances, which is a much better deal than Barclays. Additionally, there’s no minimum deposit required to open an account, and no monthly maintenance fees apply.

Additionally, note that its deposits are protected by FDIC insurance up to $250,000 or up to $500,000 for joint accounts. There’s also the option to participate in Axos Bank’s InsureGuard+ program, which allows you to access up to $265 million, but virtually nobody reading this guide will take advantage of it.

One of the best features of Axos Bank is its mobile app, which combines investing and planning tools into a single interface, making it easy for anyone to track savings, transfer money, and utilize Evo, its in-app virtual financial system that provides answers to all account-related questions.

What We Like:

• Earn up to 4.46% APY on savings
• Summit Savings offers a flat 4.00% APY
• FDIC insurance up to $250,000
• Intuitive mobile app
• Optional InsureGuard+ program with FDIC insurance up to $265MM

What We Don’t Like:

• Inconsistent app load times
• Required pairing of savings and checking account
• No physical branch access

Eligibility & Next Steps:

• 18 years of age or older
• Valid Social Security number
• U.S.-based checking or savings account
• No minimum deposit required
• Completed application through the Axos Bank website

Terms: Axos Bank High-Yield Savings is a savings account. It offers APYs as high as 4.25%. For example, if you have $10,000, you could earn up to $425 in interest in a year. There are no monthly maintenance fees and no minimum balance requirement to open an account. Actual yield on any Axos Bank savings account or high-yield savings account depends on several factors, such as balance tiers, the amount deposited, and any available promotions.

Capital One

Capital One’s Savings program offers 0.50% APY, which is 0.75% lower than the 1.25% APY on all balances. There are no minimums or monthly maintenance fees, making it an excellent choice for beginners. Plus, you’re earning the same APY no matter what your balance is, unlike others, who participate in tiered programs.

One of the best things about Capital One is that it is FDIC-insured up to $250,000 per depositor ($500,000 for joint accounts), making it a very safe place to park your money. If you’re okay with no tiered APYs, like those offered by Barclays or Axos, then Capital One could be a worthwhile option for you.

What We Like:

• Solid 4.25% APY (all balances)
• No monthly maintenance fees and no minimum balance
• Easy-to-use Capital One mobile app
• Physical branches available (albeit limited)

What We Don’t Like:

• Lower than Axos One’s 4.46% APY
• No tiered APY program
• Not as much in-branch access as Chase, Bank of America, and Wells Fargo

Eligibility & Next Steps:

• 18 years of age or older
• Valid Social Security number
• U.S.-based checking or savings account
• No minimum deposit required
• Completed application through the Capital One website

Terms: Capital One 360 Performance Savings is a savings account. It offers APYs as high as 4.25%. For example, if you have $10,000, you could earn up to $425 in interest in a year. There are no monthly maintenance fees and no minimum balance requirement to open an account. Actual yield on any savings account or high-yield savings account depends on several factors, such as balance tiers, the amount deposited, and any available promotions.

Discover

Discover interest over 5 times the national savings average. Consumers can earn a straight 3.50% APY, with no monthly fees and no minimum opening deposit required for greater flexibility. They also have no fees for excessive withdrawals, expedited bank check delivery, insufficient funds, and others, which makes the bank user-friendly.

Like many banks we’ve mentioned, it has an online savings account calculator, which allows you to see the total interest earned based on the sample deposit amount and duration. This transparency makes it easier to plan for both short-term and long-term goals, leveraging the power of compounding interest. Plus, we appreciate the recognition as a U.S. News & World Report Editor’s Choice Award winner.

What We Like:

• Trusted national brand
• Straight 3.50% APY
• Early Pay for paychecks up to 2 days early
• Online calculator for easy growth calculations

What We Don’t Like:

• 3.50% APY lower than many banks
• No tiered rate structure
• $1,000 minimum balance required for Growth CDs
• No branches or in-person support available

Eligibility & Next Steps:

• 18 years of age or older
• Valid Social Security number
• U.S.-based checking or savings account
• No minimum deposit required
• Completed application through the Discover website

Terms: Discover Online Savings is a savings account. It offers APYs as high as 4.30%. For example, if you have $10,000, you could earn up to $430 in interest in a year. There are no monthly maintenance fees and no minimum balance requirement to open an account. Actual yield on any savings account or high-yield savings account depends on several factors, such as balance tiers, the amount deposited, and any available promotions.

Forbright

If you want to enjoy more than 10 times the national average savings rate, look no further than Forbright. Its Growth Savings program offers a 4.25% APR, one of the highest on our list, with daily compounding interest.

In addition to high-yield savings accounts, Forbright also offers a Growth CD for consumers to earn up to 4% APY based on the term selected, with no monthly fees. However, a $1,000 minimum balance is required, with early withdrawal penalties applying, which is not an issue with your savings accounts.

What We Like:

• 4.25% APY
• No fees and minimum deposits
• Daily compounding interest
• Recipient of the U.S. News & World Report Editor’s Choice Award

What We Don’t Like:

• Not as well-known as the other brand
• $1,000 minimum balance for Growth CD
• Limited to branch locations (mainly in Washington, D.C.)

Eligibility & Next Steps:

• 18 years of age or older
• Valid Social Security number
• U.S.-based checking or savings account
• No minimum deposit required
• Completed application through the Forbright website

Terms: Forbright Bank High-Yield Savings is a savings account. It offers APYs as high as 4.00%. For example, if you have $10,000, you could earn up to $400 in interest in a year. There are no monthly maintenance fees and no minimum balance requirement to open an account. Actual yield on any savings account or high-yield savings account depends on several factors, such as balance tiers, the amount deposited, and any available promotions.

What Are Savings Accounts?

Also, referred to as a safe deposit account; savings accounts allow consumers to put away their cash while earning compounded interest, making them an excellent tool for emergency funds and short-term savings goals.

APYs typically offer between 0.01% and 0.05%, which is far lower than the 3%-5% range of your savings account, thanks to lower overhead. Benefits of savings accounts include low to no hidden fees, easy account management, liquidity (easy access to cash), and safety with FDIC- or NCUA-insured deposits up to $250,000 per depositor, per institution.

Note that savings accounts differ from checking accounts, as they act as deposit accounts versus accounts designed for frequent transactions, such as paying utility bills or making purchases on Amazon. For example, as a veteran, I could deposit $5,000 in an Axos Bank savings account to save for an emergency fund while earning compounding interest.

Today, savings accounts also offer additional perks, such as automatic transfers, budgeting tools, intuitive mobile banking apps, and tiered rates based on qualifying balances.

In our guide, we cover everything you need to know about savings accounts, including the strength of APY, fees, minimum balances, accessibility, and FDIC/NCUA coverage.

Are Savings Accounts FDIC-Protected?

Yes! In short, the Federal Deposit Insurance Corporation (FDIC) for banks and the National Credit Union Administration (NCUA) are responsible for guaranteeing deposits up to $250,000 per depositor for an institution.

For example, if you have deposited $160,000 in a bank that collapses, the entire amount is returned by the FDIC, making it an excellent option for large balances.

Another benefit to understanding FDIC/NCUA coverage is better financial planning. Depositors can diversify their accounts based on short-term objectives without worrying about coverage limits. For example, one account could be intended for a rainy day fund while another works towards securing a future home down payment. By strategically balancing accounts, you can help maximize your returns while continuing to be protected under the FDIC/NCUA.

One of the best ways savers can maximize FDIC/NCUA protection is to strategically distribute the process across two or more banks, reaching below the $250 threshold on each one. Say, if you have $500,000 in savings, you could split it across three different banks, including $200,000 in Barclays, $150,000 in Ally Bank, and $150,000 in Forbright, allowing you to enjoy complete coverage.

Is It Worth Putting Money Into a Savings Account?

Yes, putting into a savings account is worth the effort. However, consider it more than just earning compounded interest. All the benefits include peace of mind and quick access without incurring penalties. Remember, savings accounts are federally insured by the FDIC (for banks) or the NCUA (for credit unions) up to $250,000 per depositor, per institution, offering greater protection than funds deposited into the market.

Additionally, it is an excellent way to keep your emergency fund, travel fund, or future down payment funds separate from your checking account. Note that there are disadvantages, such as interest rates not keeping pace with inflation. However, consider using savings accounts as part of a diversified strategy that also includes certificates of deposit and stock investments for a neat combination of growth and safety.

In short, don’t expect huge returns with savings accounts, but rather a safer place to park your money.

Pros and Cons of Savings Accounts

Here are the pros and cons of savings accounts:

Pros

FDIC/NCUA Coverage

One of the drawbacks of savings accounts is the risk of losing your money. Be sure to look for banks or credit unions insured by the FDIC (for banks) or the NCUA (for credit unions), as your money is guaranteed up to $250,000 per depositor, per bank/credit union. Rest assured that your money is secure, even if the institution collapses or goes bankrupt, which is an advantage that investing in the general market, stocks, bonds, and crypto may not offer.

Please note that all our recommended banks, including American Express, Barclays, Capital One, and Axos, are fully insured. Additionally, Raisin only recommends multiple FDIC or NCUA-insured institutions, which provides an excellent way to find new opportunities to distribute deposits across various accounts and maximize coverage.

Easy Access to Money

A second benefit of savings accounts is the quick access to cash, unlike certificates of deposit (CDs) or investment accounts, which may incur a loss in value due to early withdrawal penalties. Savings accounts allow the same speed of access as checking accounts. Savings account funds have multiple withdrawal options, such as ATM withdrawals or bank transfers, making it easier.

For example, if you’ve recently been in a car accident and need $3,500 for car repairs, withdrawing it from a Discover or Axos savings account can work for you.

That’s why we highly recommend using savings accounts for building emergency funds, covering unexpected late payments, medical bills, or even lost wages.

Easy to Use

Savings accounts are straightforward investment vehicles, where you deposit money and earn interest that compounds over time. Online banks like American Express and Discover are doing an excellent job of providing an easy interface on mobile and web for automatic transfer options, showing users dozens of APY offers side by side to make more informed decisions.

For any user, simplicity aims to provide a hassle-free management experience. Managing your money using these tools requires minimal effort. Consider it one of the better beginner-friendly financial tools available.

Earn APYs

Either you cannot expect the same returns as investing in HIMS or ASTS stock in early 2025, or high-yield options offer competitive APYs. For example, regarding your savings accounts, Raisin has a long list of institutions providing rates over 4%, with most achieving rates higher than the national average of 0.05%.

Basis for Financial Planning

Savings accounts are a high-yield way to save money in reputable institutions, such as Capital One, SoFi, or American Express. You can then focus on managing riskier funds elsewhere, such as investing in the stock market or starting your dream business. Financial cushioning creates peace of mind and reduces financial stress.

Digital-focused banks like Axos also reward savers by offering extra features, such as automatic savings tools, making them an excellent place to manage daily spending and track progress towards a goal.

Cons

Inflation Beats Interest Rates

Unfortunately, savings accounts do not offer the same percentage gain as stocks, bonds, ETFs, and other mainstream investment vehicles. For example, you would have enjoyed a 40% plus gain on HIMS stock if you had started investing in early 2025, versus collecting only a couple of hundred dollars on a $10,000 Axos Bank deposit.

Another thing to keep in mind is that banks consider savings accounts as safe havens, not necessarily for compounded returns. Unlike investment accounts or CDs, which offer 4%+ growth, savings accounts are designed for easy access. That means there’s a significant opportunity cost in not moving your deposit into a higher-yield option, such as index funds or bonds. Therefore, we encourage you to understand the return rates on savings accounts before making a commitment.

Additionally, there’s the risk of inflation, eroding your purchasing power over time. For example, if your account earns 0.5% APY but inflation runs at 3%, you are essentially losing money, making it work less as a wealth-building tool. In turn, keeping large amounts in a savings account will not protect you against the rising costs of goods and services; therefore, we encourage using savings accounts for short-term expenses rather than direct investment—number of withdrawals.

A last weak point with savings accounts is institution limits or fees after completing a certain number of transfers. Although the Federal Reserve has lifted Regulation D’s six-withdrawal-per-month rule, these restrictions could limit access if you plan to withdraw money frequently, offering far less flexibility than checking accounts.

Fees and Minimum Balance Requirements

Many savings accounts come with minimum balance requirements. Below the thresholds, may force institutions to charge maintenance fees that can cut into your little compounded interest. Keep in mind that costs can gradually erode your balance. Over the course of a single year, fees can cut into the total interest earned, so this should be kept in mind.

Opportunity Cost

If you have money parked in a savings account with a low 0.05% APY, then you are not enjoying the returns of the broader stock market. Do not confuse safety with productivity, as a cautious approach could be detrimental in the long run.

How to Choose the Best Savings Account Rates

Even 1% difference in your APY can make a lot of impact when it comes to how much interest your money will earn in a year.

In short, look to online banks for the most competitive APYs, which often straddle the 0% to 4% range. In turn, brick-and-mortar banks like Chase and Bank of America will only offer roughly 0.01%. However, keep in mind that you also need to check whether the account charges monthly maintenance fees or requires minimum balances to avoid any penalties. If there are many restrictive conditions, then you may opt for an account with lower returns but greater flexibility.

What Is the Difference Between a Savings Account and a High Yield Savings Account?

For starters, traditional savings accounts usually earn 0.01%–0.10% APY. In contrast, high-yield savings accounts offer an APY of 4.00% or higher, allowing you to gain greater returns over time, thanks to daily, monthly, or quarterly interest compounding. Plus, keep in mind that both accounts are federally insured, meaning up to $250,000 per depositor per institution, so that you can have peace of mind.

Outside of yield, keep in mind that how you’ll access these accounts is typically online only, with no physical branches. However, their mobile apps and other digital tools are highly robust, making it even easier to manage your money. If you can stomach this trade-off, then high-yield accounts are worth it.

In short, when deciding between the two, think about convenience versus growth potential.

Alternatives to Savings Accounts

Alternatives to savings accounts that may be worth exploring include certificates of deposit (CDs), which typically require locking your money for an extended period. From 3 months to 5 years, often with higher guaranteed interest rates. However, there’s the issue of liquidity, where any withdrawals will incur penalties.

Another alternative to savings accounts are money market accounts, which offer a nice hybrid of savings and checking features, albeit with higher minimum balance requirements, and no interest earnings.

If you’re looking for a more risk-free route, then you may also want to turn to government-backed securities and short-term bond funds. With rising interest rates, these generally perform better, but short-term bond funds have a little higher risk than your typical savings products. You may also want to strategize on how to use brokerage accounts with money market funds to keep your cash safe, offering flexible withdrawals and steady growth at the same time.

What Are the Benefits of the Best Savings Account Rates?

Their numerous benefits include the best savings account rates. For starters, consumers can enjoy security and growth, allowing easy access to money while enjoying compounded growth (more so with high-yield savings accounts with 4%+ APYs). For example, ISIN aggregates over 75 savings accounts and CDs at rates higher than the national average.

For example, suppose you deposit $20,000 into Axos Bank’s savings program at a 4.6% APY. In that case, you can earn approximately $1,000 in yearly interest, an excellent way to work towards short- to medium-term savings goals, such as a rainy day fund after job loss, an all-expenses-paid trip, or an unexpected medical expense.

Plus, many high-rate opportunities come with no fees. Expect monthly maintenance fees or minimum balance requirements with Discover, CIT Bank, and others, offering peace of mind that unnecessary charges do not reduce your gains.

What Are the Best Savings Accounts?

The best savings accounts mean different things to different people. For example, suppose you’re looking for the highest yield possible. In that case, you should turn to online banks and fintech platforms like American Express and Forbright, which offer 4% APYs (much more than traditional banks like Chase and Wells Fargo, which only provide ~0.01% APYs).

Others, like Raisin, allow users to compare multiple banks and credit unions in one shot for a clear view of how APYs, fees, and other terms compete.

If you’re looking for convenience and branch access, then Chase, Bank of America, and Wells Fargo are the way to go. Combined, they have more than 10,000 branches and ATMs nationwide, as well as a range of credit, checking, and other products. Consider a Wells Fargo Way2Save account or a Chase Savings account if you’re looking to manage frequent in-person cash deposits.

However, for higher yields, online and digital-first banks like American Express, Forbright, Ally, and Axos Bank offer APYs of 4% or higher to lower overhead costs. Additionally, they are known for their ease of use, featuring intuitive mobile apps and online platforms. For example, Ally offers data compounding interest, whereas Axos Bank is well-known for its early direct deposit and cash-back opportunities. Plus, unlike the legacy banks, they require no monthly maintenance fees or low minimum deposits.

(In short, look to online banks if you’re looking for maximum yield, convenience, and innovative savings tools, and branch-based banks if you’re looking for in-person support and ATM access.)

How to Open an Account With the Best Interest Rates

Opening a savings account or a high-yield savings account does not require rocket science. It is a relatively straightforward process. As long as you meet promotional requirements and understand account terms and conditions, you can maximize returns while keeping your cash in a safe place.

Whether it’s CIT Bank, SoFi, American Express, Barclays, or any one of our recommended options, there’s a step-by-step guide on how to open an account with the best interest rates:

What Are Your Goals?

Before filling out an online application, try to understand what you need from a savings account. Are you looking to establish a rainy-day fund or save towards a long-term goal, such as a down payment on a new home? Depending on the goals, it’ll help you understand which accounts are best for you.

For example, if you’re looking to earn maximum interest on a $10,000 deposit, you may refer to Raisin. This aggregator showcases high-yield savings accounts with APYs exceeding 4% and additional perks, including first-time user promotions of up to $1,000 for qualifying deposits. At the same time, you may also require flexibility and quick access to funds, taking advantage of rapid withdrawals from banks like Discover and Axos Bank.

Additionally, consider features such as automatic savings tools and mobile apps that are easy to use. For example, SoFi and American Express are well-known for their user-friendly interfaces, which enable you to perform a range of tasks, from tracking deposits to setting up automatic transfers.

In short, determine if you have short-term, medium-term, or long-term goals, consider APY/promo opportunities, and extra perks such as ease of mobile access.

Compare Rates

Once you’ve learned your goals, do thorough research and comparison of savings accounts. In particular, you want to consider APY, minimum deposit requirements, fees, and special offers. Turn to aggregators like Raisin, which offer helpful side-by-side comparisons from leading banks like Barclays, CIT Bank, and Axos.

In addition to interest rates, you’ll be able to see breakdowns of estimated annual earnings (based on hypothetical examples).

Do not fall for every promotional offer. Know that APYs or cash bonuses are often tied to qualifying deposits. For example, a $20,000 deposit with a $2,000 qualifying bonus can yield a quick 10% return, whereas other banks are known for offering promotional deals with no minimum balance requirement.

Lastly, you want to check the interest compounding frequency. Is interest compounded daily, monthly, or quarterly? The more frequent, the better, as long as you’re not subject to hidden fees or account restrictions.

Complete Identity Verification

To comply with federal regulations, savings accounts require identity verification. You will be required to provide your Social Security number and a valid, government-issued photo ID (e.g., a passport or other supporting documentation).

One of the best aspects of digital-only banks is that all these documents can be uploaded digitally, thereby reducing the need for in-person interactions. In addition to compliance, it also protects your deposits, transfers, and withdrawals from types of fraud. Kudos to Axos Bank for offering two-factor authentication (2FA) as a second layer of security. By completing the authentication process accurately, you can expect to have a new account in short order.

Link External Bank Account

After completing an application, you will be required to link an external checking or savings account, which enables you to withdraw and transfer funds. Banks like CIT Bank, SoFi, Axos, and Discover offer instant transfers, provided you have a verified external account.

Sometimes you’ll be required to confirm small verification deposits. Once you become fully verified, expect to be eligible for promotional bonuses, as long as you meet the minimum balance requirements to earn the promotional APY. For example, if you meet the $5,000 deposit requirement in Raisin-partnered accounts, then you can expect to earn interest immediately.

How to Find Legit Savings Accounts and Are They Safe?

One of the best things about savings accounts is that they help park your money in a safe place while earning OK returns (not to the level of the stock market).

However, there are hundreds of competing banks and credit unions out there. How do you know which ones are legitimate from the riskier ones? Here’s a step-by-step guide on how to proceed:

Understand Interest Rate Structures

With the understanding that savings accounts earn lower yields than ETFs, index funds, and similar investment products, it’s essential to understand how promotional APYs are structured. Often, teaser rates are available for a limited period (up to several months) before reverting to a baseline figure. In contrast, other accounts offer a tiered system where the higher the balance, the higher the APY.

For instance, a bank might offer a 4.20% APY on balances up to $10,000, but only 0.50% APY above that. If you understand proper structure earlier in the process, you’d better understand how your money is working for you.

Check for Fee Transparency

Not all fee terms and conditions are considered equal. Legit savings accounts offer detailed upfront information about fee policies. In addition to no monthly maintenance fees, look for dormancy, paper statement, and excessive withdrawal fees.

Dormancy fees are assessed for leaving an account inactive, whereas paper statement fees issue a small charge if you do not receive electronic statements. Excessive withdrawal fees can also occur if you transfer money out of the account more frequently than the account allows.

Look into Access and Flexibility

Another area where our recommendations shine is with access and flexibility.

Legitimate savings accounts will typically deposit your money within one to three business days via ACH transfers or instant or same-day transfers, subject to a nominal fee. Take more than five business days to receive money? Avoid like the plague.

Additionally, you should have multiple ways to manage your money. At a basic level, via a desktop or mobile app, with additional options like ATM access or integration within your checking accounts.

Watch Out for Marketing Language

When it comes to finding legit savings accounts, it is essential to avoid falling into fraudulent claims. For example, if a savings account promises returns of 6% plus APY or comparable performance to the stock market, then you should proceed with caution.

Remember, savings accounts are not intended to drive growth in return. Instead, they work more to provide security and liquidity for your funds. Always be cautious of any marketing language that promises guaranteed or risk-free rates.

It’s not uncommon to find promotions of 8% APY or higher in a savings account. However, realize that it is likely a marketing ploy that only applies for the first two months without an outrageous minimum balance requirement. Once you’ve deposited all your money into the account, the APY may drop significantly.

Other platforms are outright scams, especially from ‘cryptocurrency-backed platforms.’ Scam artists are known to impersonate financial services providers that collect deposits and then vanish without a trace.

Remember, legit accounts will always let you know how interest is calculated (whether it’s monthly, daily, or quarterly), where the rates are promotional, which deposit tiers qualify for specific APYs, and any requirements that you may need to fulfill to achieve them, e.g., linked checking accounts.

All in all, understanding interest rate structures, checking for fee transparency, examining access/flexibility, and being aware of language or terms can help you avoid non-legitimate savings accounts altogether.

How Often Do Interest Rates Change?

Interest rates on savings accounts change very frequently. All of it is influenced by Federal Reserve actions and microeconomic conditions that guide banks and credit unions in adjusting their rates. For example, if there is high inflation, and the Federal Reserve raises the federal funds rate, then you can expect your savings rate to remain competitive in return.

Remember the Federal Reserve usually meets eight times a year to raise, cut, or hold benchmark rates steady. Not only does it impact the savings and APYs of your savings account, but it also affects mortgage rates and credit card APRs. One of the most notable instances of this occurred in 2022 and 2023, with 104 aggressive rate increases aimed at curbing inflation. As a result, many online savings accounts offering 1% ballooned up to 3%+.

Please note that interest rate variability varies among banks. For example, digital-first banks like Ally or Marcus by Goldman Sachs update the rates more frequently than traditional brick-and-mortar institutions (as often as multiple times in a quarter). However, the larger players, such as Wells Fargo and Chase, can adjust rates three or four times a year.

All in all, interest rates on savings accounts vary widely depending on whether it’s a digital-only or traditional bank, in response to Federal Reserve activity, inflation, and other macroeconomic factors. Always be prepared to regularly compare interest rates and transfer money from one bank to another if you find a better opportunity.

What to Do if You Can’t Open a Savings Account

Can’t open a Forbright Growth Savings account with its 4.25% APY? Nowadays, there are screening tools such as ChexSystems that verify your past financial history, such as unpaid fees or any fraudulent activity. If your history comes to light, expect your application to be denied.

Here are the steps you can take if you can’t open a savings account:

Review Your ChexSystems Report

The first step is to visit ChexSystems to obtain your free report. From there, make sure that no errors appear, such as duplicate entries. For example, a previous overdraft might be marked as unpaid, which may not be true at all. If you see anything erroneous, then file a dispute. Consider this a similar process to checking your credit report from each of the three major reporting bureaus: Equifax, TransUnion, and Experian.

Look into Second Chance Accounts

Suppose you have a less-than-perfect banking history. Then, traditional banks like Wells Fargo cut off accounts that are heavily restricted, limiting the number of withdrawals or assessing higher fees. If you have a positive payment history, then you can upgrade to a standard savings account or a high-yield savings account, as long as you make on-time payments over the course of a few months.

Look Online

Digital-only banks like SoFi and Ally have alternative means of assessing eligibility with a reliance on digital verification. Instead, they tend to look more towards your credit score and not whatever past banking issues you might have had at a traditional bank. No wonder online banks are generally seen as more accessible than traditional banks.

Start with a Secured Credit Card or a Prepaid Account

Secured credit cards or prepaid accounts are a responsible first step in building a positive banking track record. After you handle the situation successfully, banks may reconsider your eligibility toward a high-yield savings account.

Look into Credit Union Share Accounts

Understanding that credit unions put people over profit, reputable options offer “share accounts,” which represent your ownership stake in the credit union. It’s not out of the question to get a share account at 2.5% APY. Although it’s not how you yield as Axos Bank or Ally Bank, it’s a good way to start a foundation before reapplying at a higher-yield bank.

All in all, getting denied for a savings account doesn’t mean you hit the end of the road. By checking for ChexSystems reporting errors, considering Second Chance programs, digital banks, and credit union share accounts, you can eventually work towards a savings account or a high-yield savings account, one of our preferred options.

How Much Will $10,000 Earn in a Savings Account?

How much you will earn on $10,000 depends on the APY offer and how frequently compounding occurs. For example, if you take out a 4.5% APY high-yield savings account at SoFi Bank, you can earn roughly $450 in one year. With Discover Online Savings and American Express Savings, you’re earning roughly $430 annually and $350 annually, respectively.

Note, all of these returns are much higher than the national average of 0.5% APY. Plus, with the benefit of FDIC or NCUA insurance, all of your funds remain safe.

Historical Savings Account Interest Rates

For a better understanding of why 4–5% APY high-yield savings accounts are a reasonable offer, it’s essential to understand that high yield has appeared in the past. We all know that Federal Reserve activity, inflation, and other macroeconomic conditions affect rates.

Here’s a brief rundown of how savings account interest rates have looked at key periods:

1980s

In the 1980s, consumers enjoyed 8–10% APY, in part thanks to double-digit inflation numbers, which forced rates to go higher. For example, in 1981, inflation peaked at 13.5% versus the average savings rate of 11%.

1990s

By the 1990s, the Federal Reserve had adopted a more conservative monetary policy, where savings account rates dropped to the 3 to 5% APY range, in part due to lower inflation at a 2 to 3% level. That means a $100,000 deposit in Barclays, collecting roughly $500 a year in returns, saw its value drop to around $200, which is still a respectable return. When compared to today’s 4.25–4.75% APY at banks like Forbright, Ally, or SoFi, seeing 3% to 4% inflation, the return is a bit less, albeit still respectable.

2000s

During the dot-com era, savings accounts offered anywhere between 2% and 3% APY, before creeping up to 4% or 5%, made popular by online-only banks.

2008

Famously known as the financial crisis, this era saw rates by the Federal Reserve go down to zero in a move to save the economy. As a result, major players like Wells Fargo, Chase, and Bank of America paid as little as 0.01–0.05% APY for a paltry return of only $1 for every $10,000 invested. In turn, the online banks offered slightly higher rates upwards of 1%, but nothing compared to today.

With that said, many people diversified away from savings accounts and turned to certificates of deposit, bonds, and even stock.

Early to Mid-2015

Savings account interest rates continued to hover near zero, with 0.01–0.10% APY being the norm for national banks, and 0.90–1.25% APY being offered by online-only banks. For example, a $10,000 deposit in Chase would have returned you a dollar for the year, versus $100 using Barclays Online Savings.

2020 Pandemic

During the pandemic, the Federal Reserve cut rates to near zero, sending the national average below 0.10% APY. Online banks didn’t do much better, going around 0.40–0.50% APY.

2022 to Now

Following the pandemic, inflation reached a record high, prompting the Federal Reserve to implement aggressive interest rate hikes. At this time, SoFi offered up to 4.60% APY (with direct deposit), compared to 4.25% APY (Forbright) and rates ranging from 4.35% APY to 4.50% for Barclays and CIT Bank. At the same time, traditional banks continue to offer close to no return with averages around 0.01–0.05% APY.

In short, historical cycles dictate yields. That’s it. It’s always essential to shop around, consider the inflation factor, and avoid any bank that offers close to no return on your parked cash. Whether it’s SoFi, Barclays, Ally, Forbright, or any of our other non-traditional bank top picks, your money is in safe hands.

How We Picked These Accounts

When narrowing down the best savings accounts, we considered several factors, including but not limited to insurance, transparency, reputation, customer experience, and how fees are structured.

FDIC or NCUA Insurance

As a backbone to any savings institution, the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) are responsible for providing deposit insurance of up to $250,000 per person per institution. That means your money is fully protected in case the bank fails. All of our recommendations are listed here and carry this protection.

This is critical because there are plenty of fintechs out there that work with third-party institutions to offer accounts. However, these apps usually partner with banks, so it’s unclear if insurance is even offered or if there is any liability at all. Strictly ensure that you have a single or multiple accounts with FDIC or NCUA coverage to prevent any headaches later.

Transparent Rates

In the savings account business, there’s plenty of marketing by banks to attract new customers.

One of the most essential go-to rates is promotional teaser rates, which offer a high APY for the first couple of months before reverting downward. These are often rife with extra conditions such as the required setting up of direct deposit, maintaining a minimum balance, or linking another account.

Always prioritize banks that offer simplicity in how their interest rates work. For example, Ally Bank offers a simple standard APY, regardless of your balance, without any unnecessary requirements. SoFi works in a similar way (where achieving the highest APY depends on whether or not you have direct deposit), but at least the requirements are clearly stated, allowing customers to make their own informed decisions.

In contrast, there are many “up to 5% APY” offers (especially popular with regional banks) that are full of fine print. Avoid bait-and-switch tactics altogether and prioritize transparency over any 5% APY, as you may not even have it for long.

Reputation

When evaluating savings accounts, we ensure that the institution has a reputable past. Barclays and American Express National Bank have more than 100 years of experience. Although they do not carry the highest rates, name recognition alone can attract a significant number of people.

However, it’s essential not to overlook some of the newer names on the market. For example, SoFi launched in the early 2010s and has already acquired millions of customers thanks to its transparent digital-first approach and engaged consumer base.

Customer Feedback

One of the best ways to evaluate a savings account is by reviewing third-party sites like Trustpilot, the Better Business Bureau (BBB), and Reddit, checking for specific feedback on banks’ handling practices.

For example, Ally Bank earns a ton of praise these days for its easy-to-use mobile app, lightning-fast transfers, and smooth interface, which makes it highly competitive versus traditional banks. However, some users express that this may be offset by Axos Bank’s long customer service wait times (although it does offer some of the best yields in the business).

When deciding where to park your money, it’s always worth considering the customer experience as well.

Watch Out for Hidden Costs

Always ensure that you read the fine print and learn about any hidden or recurring fees. This is especially true of traditional banks like Jason Wells Co., where you can expect charges for everything from account activity to receiving paper statements.

One of the best ways to avoid hitting costs is by relying on online-first banks. Almost all of them offer no monthly maintenance fees and no minimum balance requirements, with rare inactivity charges. Have consistently low balances? No problem. Capital One 360 Performance Savings does not charge that.

Remember, choosing the correct savings account isn’t all about going after the highest APY. Instead, it’s all about making sure your money is easily accessible with quick liquidity—it’s about ensuring your money is secure, accessible, and working for you in the long run. By considering FDIC/NCUA availability, transparency, the bank’s reputation, easy fee policies, and customer feedback from legitimate sources, you’ll be on your way to choosing the correct account for your needs.

Frequently Asked Questions

Are savings accounts safe?

Yes. Since they are FDIC-insured up to $250,000 per depositor, per bank, this means that your funds will be protected, regardless of what happens to the bank. All of our recommendations above offer this type of insurance.

Do these accounts have monthly fees or minimum balance requirements?

Some accounts may have monthly fees or minimum balance requirements. For example, Ally and American Express Savings have no monthly fees, while Forbright Growth Savings requires a $1 minimum deposit. Always review a bank’s terms and conditions carefully before signing any agreement.

How quickly can I get my money?

It depends on the transfer method. If you have a linked checking account, you can expect to wait 1–3 business days for the ACH transfer to be processed. However, some banks offer instant transfers between accounts, provided they are within the same bank.

Can I open more than one savings account?
Yes, it is possible to have more than one savings account, either with the same bank or across different banks. This makes it a worthwhile endeavor, especially if you’re looking to establish multiple rainy-day funds or separate funds for other goals, such as vacations or larger purchases.

Should I have more than one savings account?

It’s very easy to have more than one savings account, but it should depend on your needs. For example, establish an emergency rainy-day fund at Ally while keeping separate funds at Chase for everyday liquidity. This approach will enable you to separate your goals better. Just know that you have to work with tracking multiple logins and terms and conditions across different banks. However, it shouldn’t be an issue as long as you remain organized.

Are there any transaction limits?

Yes, there are transaction limits, but the rules have shifted over time. In the past, Regulation D limited people to six withdrawals per month. However, it started to change in 2020, when banks began to adjust their rules. For example, Capital One 360 Performance Savings allows for unlimited transfers, while others may enforce monthly limits or charge a fee if consistently above a certain amount. Be sure to read your bank’s fine print to understand the terms and conditions.

How much will $100,000 make in a savings account?

How much $100,000 earns in a savings account depends on the APY and compounding frequency. For example, traditional banks like Chase and Wells Fargo will give you only about $10 if you deposit $100,000. However, digital-only banks like Ally or SoFi can help you generate anywhere from $4,250–$4,600 a year on a $100,000 deposit. No wonder high-yield savings accounts at digital banks are the preferred option over legacy banks.

Savings Accounts vs. Market CDs: Which Is Better?

Whether a savings account or market CDs are better depends on what your financial goals are.

In general, savings accounts offer more flexibility, allowing you to deposit and withdraw funds as you wish. In turn, market CDs require that you lock up your money for a set period—anywhere from six months or longer—in exchange for a higher APY. For example, if you know you won’t need $25,000 within the next 12 months, then you can achieve a better return on a CD than a savings account.

How often do interest rates change on these accounts?

Interest rates can change at any time on these accounts. As they’re known as variable rates tied to macroeconomic conditions, traditional banks tend to adjust rates less than online banks like CIT Bank, which are more responsive to Federal Reserve changes. For example, it would not be surprising to see your account shift from a 3.6% to a 3.8% APY a month or two after a Federal Reserve rate hike. Since rates are never guaranteed, we always encourage you to check the latest APY before opening an account.

Conclusion

In short, savings accounts offer one of the more reliable ways to save and grow your money. Whether you’re considering a traditional bank like Chase or a digital bank like Axos, deciding on either one mainly comes down to your financial goals and the type of flexibility you need.

Remember, your savings accounts will often offer better APYs than traditional banks, making them an excellent choice for larger balances. However, if you prefer convenience or in-person support, conventional institutions like Wells Fargo may be better for you.

At the end of the day, there’s no one-size-fits-all when it comes to the best savings accounts. Always compare APYs, fees, balance requirements, and account features carefully side by side before making a decision.