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Best savings accounts for March 2024

Updated March 11, 2024

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A savings account can be a great place to set aside money that you’re saving and want to earn a competitive APY on, even if you aren’t sure on the time horizon for the money. Bankrate’s top savings rates are much higher than the current national average savings yield of 0.57 percent.

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Current savings trends
Bankrate Partner average
4.83% APY
National average
0.57% APY

Best savings account rates for March 2024

Note: Annual percentage yields (APYs) shown are as of March 15, 2024. All other information is current as of March 11, 2024. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

UFB Direct

UFB Direct_logo
Rating: 4.5 stars out of 5
4.5

Overview

UFB Direct is known for its high-yield savings account and money market account. Both the UFB Secure Savings account and UFB Secure Money Market account have very competitive yields. One of the differences is that the UFB Secure Savings account doesn’t have a monthly service fee.
Invest Rate
5.25% APY
Loan
$0 min. deposit to open

Popular Direct

Popular Direct_logo
Rating: 4.8 stars out of 5
4.8

Overview

Popular Direct is known for having some of the highest savings yields and much higher minimum deposit requirements than most other online banks. A Popular Direct Select Savings account is opened through Popular Bank. You’ll need to deposit at least $100 to open the account, but there’s no monthly maintenance fee.  Popular Direct also offers mobile deposit.
Invest Rate
5.15% APY
Loan
$100 min. deposit to open

Bask Bank

Bask Bank_logo
Rating: 4.7 stars out of 5
4.7

Overview

Bask Bank is known for its Bask Interest Savings account. It’s also known for a unique account, the Bask Mileage Savings account, where you can earn American Airlines miles.  Bask Bank, a division of Texas Capital Bank, made its debut in early 2020 with its Mileage Savings Account. In February 2022, Bask introduced its Interest Savings Account, which offers a very competitive yield and doesn’t require a minimum opening deposit.
Invest Rate
5.10% APY
Loan
$0 min. deposit to open

CIT Bank

CIT Bank_logo
Rating: 4.2 stars out of 5
4.2

Overview

CIT Bank is known for offering multiple savings accounts. CIT Bank’s Savings Connect account can be opened with just $100. The bank offers a competitive APY and doesn’t charge a monthly service fee for this account. It also has a Savings Builder account, a checking account, a money market account and CDs.
Invest Rate
5.05% APY
Loan
$5,000 min. deposit to open

Salem Five Direct

Salem Five Direct_logo
Rating: 4.9 stars out of 5
4.9

Overview

Salem Five Direct is known for being the online division of Salem Five, a bank founded in 1855 in Salem, Massachusetts. The division was the first online bank, started in 1995. It’s also known for offering a high-yield savings account, checking account and CDs. Its eOne Savings account only requires a $10 opening deposit, and it doesn’t have a monthly service fee or minimum balance requirements.
Invest Rate
5.01% APY
Loan
$10 min. deposit to open

CIBC Bank USA

CIBC Bank USA_logo
Rating: 4.9 stars out of 5
4.9

Overview

CIBC Bank USA is currently known for offering a competitive yield on its CIBC Agility Online Savings Account, which charges no monthly service fee. The bank also is known for offering CDs that have a slightly higher yield with a deposit of at least $25,000. But its savings account has a much lower minimum opening deposit amount of $1,000.
Invest Rate
5.01% APY
Loan
$1,000 min. deposit to open

Citizens Access

Citizens Access_logo
Rating: 4.9 stars out of 5
4.9

Overview

Citizens Access is known for being the online bank division of Citizens Bank. Citizens Access offers a high-yield online savings account and CDs with terms between six months and five years. The online savings account doesn’t have a maintenance fee, and you only need 1 cent to open an account. Currently, all balances receive the bank’s competitive APY.
Invest Rate
4.50% APY
Loan
$1 min. deposit to open

Capital One

Capital One_logo
Rating: 4.9 stars out of 5
4.9

Overview

Capital One is known for having competitive yields on its savings accounts and CDs. It’s also known for its credit cards, and it offers a checking account. For saving, the Capital One 360 Performance Savings Account earns a competitive yield. It doesn’t have a monthly service fee, and you won’t need a minimum deposit to open this account. Capital One is one of the top 10 largest banks in the U.S.
Invest Rate
4.35% APY
Loan
$0 min. deposit to open

Bankrate's expertise

Bankrate’s trusted industry knowledge

Our banking editorial team regularly evaluates data from more than a hundred of the top financial institutions across a range of categories (brick-and-mortar banks, online banks, credit unions and more) to help you find the options that work best for you.

48 years

of industry experience

3 k

deposits rates tracked

120

banks reviewed

Recent news on savings account interest rates

Even though the Federal Reserve didn’t change rates in January, you can currently find savings accounts with high yields, greater than the rate of inflation.

Looking at savings yields through the lens of inflation, the returns on savings will continue to be among the best in the past two decades – even as yields pull back in 2024. — GREG MCBRIDE, CFA | BANKRATE CHIEF FINANCIAL ANALYST

Generally, the Fed’s rate decisions can impact the savings account yields at competitive FDIC-insured online banks.

It’s easy to find a savings account with a rate that outpaces the current inflation rate of 3.1 percent at online-only banks and credit unions. Currently, top-yielding savings accounts earn APYs above 5 percent.

A key factor that influences savings account yields are the 11 federal funds rate increases the Fed has made since March 2022. Savings account rates at competitive banks tend to fluctuate along with the fed funds rate, while savings account rates from large brick-and-mortar banks often remain at near-zero. The national average savings account rate is currently 0.57 percent, according to Bankrate’s most recent survey on Mar. 15, 2024.

What is a savings account and how does it work?

A savings account is a type of deposit account found at both banks and credit unions that generally offers a variable yield and it allows withdrawals generally when you need to make them without incurring a penalty.

These federally insured accounts typically pay interest, but often at lower rates than other interest-bearing financial products insured by the government, like certificates of deposit (CDs).

In exchange for lower rates, savings accounts offer more liquidity, allowing for up to six types of withdrawals or transfers per statement cycle (and potentially more). That makes savings accounts ideal for stashing money you may need access to if unexpected costs arise.

Savings accounts can play a crucial role in your financial health. Unlike a CD, which forces you to lock up your money for a specified period of time, there's no set term for maturity with a savings account. So, a savings account is a good spot to park your emergency fund. A CD isn't a good place for emergency savings since withdrawing your money before the CD term ends will likely result in a potentially costly fee.

What fees are associated with a savings account?

Earning a competitive APY and then having fees eat into your interest earning isn’t a good saving strategy.

Here are savings account fees to watch out for:

  • Monthly service fees
  • Out-of-network ATM fees
  • Early account closure fees
  • Overdraft fees

Best savings account terms to know

Compound interest
Method of calculating interest where interest earned over time is added to the principal. Compounding is usually done on a daily or monthly basis and the more frequently it is done, the faster your savings can grow.
Interest
Money that you earn for having your funds deposited with a bank.
Interest rate
A number that doesn't take into account the effects of compounding.
Annual Percentage Yield (APY)
A rate that takes into account the effects of compounding during the year. It's best to compare yields (APYs) rather than interest rates.
Minimum balance requirement
The minimum amount needed in a savings account to avoid a monthly maintenance fee.
Money market account
A type of savings account that may offer checks, and/or an ATM or debit card for teller machine withdrawals. Here are the best money market accounts right now.

Who should get a savings account?

Most consumers would benefit from having an emergency fund and additional savings. And having this at a competitive online bank with yields outpacing inflation makes sense in this current rate environment.

Opening a savings account will depend on one’s financial goals, age and current financial situation. Here are a few categories of people who may benefit from opening a savings account:

Moneybag
College savers

Saving for college is one of the biggest expenses parents face. Saving for students should be a marathon, not a sprint. An FDIC-insured savings account is a safe place to save for your child’s college education. 

Clock Wait
Future retirees

A savings account is one of the vehicles that should be used to prepare for retirement and should be a part of your retirement plan.

Calendar
Disciplined planners

It's crucial to have an emergency savings account. This account should be able to cover at least six months' worth of expenses. You never know what the future will hold, so it’s best to be prepared.

What is needed to open a savings account?

Whether opening an account online or in a bank or credit union, you'll likely be asked for similar information. That's because all banks have to comply with certain rules and regulations for new account openings.

Banks will likely have some slightly different requirements for opening a savings account online, though most require U.S. citizens to provide a form of ID and a social security number. You might also need to lift any credit freezes you have set in order to open the savings account.

Here are sample requirements at three of the largest banks in the U.S. for opening a bank account:

Do you need to scan/submit your driver's license/photo ID?

  • Bank of America: No.
  • Chase: The online application requires information provided on an ID.
  • Wells Fargo: ID information needs to be entered into Wells Fargo’s online application. You’ll need to go into a branch to open the account if your ID isn’t currently available on Wells Fargo’s online application, according to Wells Fargo.

Do you need to lift a credit freeze/security freeze? (If you have one)

  • Bank of America: No.
  • Chase: Yes.
  • Wells Fargo: Yes.

Do you need to fund the new account immediately using an existing routing number/account number?

  • Bank of America: No for checking and savings accounts, but yes for CDs.
  • Chase: No. You have 60 days to fund the account, and it will be closed if not funded within 60 days.
  • Wells Fargo: Yes, a deposit of at least $25 is required.

Online banks generally will have you input information from your drivers' license or government issued photo ID. You'll likely have to enter your social security number and you might have to lift a credit/security freeze, if you have one. Since online banks generally don't have physical locations, you likely won't have to provide this information in person.

How to choose the best savings account for you

You’ll want to find a savings account that earns a competitive yield. The account should also have a minimum opening deposit amount that fits your financial situation. But try to find an account that doesn’t have a monthly service fee; if there is a fee, check with the bank to see if it can be waived. Ultimately, your savings account, and bank, should have all the features and services to address your personal finance needs, including mobile deposit, a highly rated mobile app and ATM access.

Here are some steps to follow as you look for the best place to stash your savings:

  1. Determine what your money will be used for. To maximize the potential use of your money, it’s important to allocate it in the proper accounts. For example, funds that will be withdrawn to pay for more immediate expenses, such as bills, are better placed in a checking account, compared with stashing money in a savings account or a CD to build an emergency fund or save for a large expense.
  2. Figure out when you’ll need to access the funds. Money to purchase a major expense, such as a car in the next year, is best kept in a savings account that earns interest versus a checking account.
  3. Shop around. Research banks and credit unions and compare rates. Check to see if there are any minimum balance requirements or monthly maintenance fees that could negatively impact you down the line. Generally, rates are highest at online banks, but it’s possible for a brick-and-mortar bank or a credit union to offer competitive yields.
  4. Select an account at a federally-insured bank or credit union. Money that needs to be secure should be deposited in an account at either a federally-insured bank or credit union that’s a member of the Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA), respectively. The account should be protected within FDIC or NCUA limits and guidelines.

Pros and cons of a savings account

Savings accounts, like all financial tools, come with benefits and risks. It's wise to weigh the pros and cons to see if one of these accounts is ideal for your financial situation.

Pros

  • Checkmark

    FDIC protection: Savings accounts at an FDIC-insured bank are federally insured for up to $250,000, per depositor, per FDIC-insured bank, per ownership category, according to the FDIC.

  • Checkmark

    Liquidity: You can generally access your savings in your account when needed.

  • Checkmark

    Earnings: The money you keep in a savings account earns interest over time and compounds, offering a return on the principal.

  • Checkmark

    Higher interest: The best savings accounts usually earn more interest than a checking account — and some even have a higher yield than money market accounts.

  • Checkmark

    Low-fee options: There are many savings account options that either have a $1 minimum balance or no minimum. With these options, it’s easy to avoid a maintenance fee.

  • Checkmark

    Access: Most savings accounts allow you to access your savings at ATMs with an ATM card. Just make sure the ATM is in the network to avoid any fees.

Cons

  • Low interest: A CD – or other investments – might earn a higher yield/return.

  • Accessibility: Unlike checking accounts, savings accounts often have a limit on the number of withdrawals and transfers you can make each monthly statement cycle.

  • Fees: Some banks charge minimum balance fees. Those maintenance fees can eat into interest earned – and even your principal.

  • Variable APY: Yields for savings accounts can change based on fluctuations in interest rates made by the Federal Reserve.

  • Limited purchasing power: Economic factors such as long-term inflation could exceed the APY on a savings account.

Alternatives to savings accounts

A savings account might be the right account for you. But there are other options that you should consider — depending on your savings goals and time horizon for using your money.

Savings accounts vs. money market accounts

Money market accounts are savings deposit accounts that may allow limited check-writing privileges or access to a debit card.

Savings accounts and money market accounts are very similar. They're both savings deposit accounts. A money market account is a better choice if you'd like to write checks from your savings account, in which case you’ll want to make sure the bank offers that option.

Savings accounts vs. checking accounts

Checking and savings accounts serve different roles, but it's important to have both. Generally, checking accounts are used for ongoing cash flow needs, permitting as many transactions as needed. A checking account is typically where paychecks are deposited and where money to pay bills is kept. However, many pay very little interest or none at all. Some interest checking accounts may have high yields, but they might have caps and rate tiers limiting the balance that offers that competitive yield.

Savings accounts, on the other hand, are meant for stashing cash and typically don't offer check-writing abilities. Their liquidity is more limited, but they typically carry a higher APY.

Savings accounts vs. CDs

Savings accounts are intended to be liquid — you can add money to the balance or make a withdrawal whenever you want. Savings accounts generally earn a variable APY.

CDs (or certificates of deposit) are for money that you'd like to earn a fixed APY on. Generally, CDs have a term that you need to keep your money in the CD for. Your bank will likely charge an early withdrawal penalty if you take your money out before the CD's term ends.

A no-penalty CD can be the best of both worlds as generally you can withdraw your money from a no-penalty CD anytime after your first six days with the CD. 

Savings accounts vs. money market mutual funds

With a savings account, you deposit your money into an account and earn an APY. Your money is insured by the FDIC — up to at least $250,000 — if the bank is an FDIC bank.

Money market mutual funds (not to be confused with money market accounts) aren't FDIC insured, and you purchase shares when you deposit money into this product.

Savings account FAQs

Research methodology

Bankrate has been around since 1976. It is a leading publisher of rates and personal finance articles. It is also often cited by some of the most respected and well-known publications and websites. The Bankrate promise is that we strive to help our readers make smarter financial decisions, adhering to strict principles of editorial integrity and transparency.

Bankrate’s editorial team is made up of five banking experts. These experts have researched numerous banks and at least twice a month review bank websites to make sure readers stay up to date on the latest rates and bank products.

The banks and credit unions on this page are selected based on popularity, Bankrate’s review score and savings account APYs.

The listings are ordered based on Bankrate’s scoring system, and ties are broken through minimum balance requirements and then alphabetical order.

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