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Savings accounts are a great place to deposit money that you’re planning to save for the future. These accounts aren’t meant for making frequent transactions. The main purpose of a savings account is to grow your money over time and keep the funds accessible when they’re needed the most.
If you are looking for a low-risk way to save money over a long period of time, high yield savings accounts may be a good option for you. Banks that offer online savings accounts tend to have higher rates for a better return on your deposited funds, as long as you can follow any minimum balance and monthly fee rules. Keep in mind that savings rates are subject to change over time.
Note: Annual percentage yields (APYs) shown are as of Nov. 30, 2022. Bankrate's editorial team updates 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.
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Best available rates across different account types for December 7, 2022
Savings accounts are a great place to deposit money that you’re planning to save for the future. These accounts aren’t meant for making frequent transactions. The main purpose of a savings account is to grow your money over time and keep the funds accessible when they’re needed the most. Read more
If you are looking for a low-risk way to save money over a long period of time, high yield savings accounts may be a good option for you. Banks that offer online savings accounts tend to have higher rates for a better return on your deposited funds, as long as you can follow any minimum balance and monthly fee rules. Keep in mind that savings rates are subject to change over time.
Note: Annual percentage yields (APYs) shown are as of Nov. 30, 2022. Bankrate's editorial team updates 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.
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict , this post may contain references to products from our partners. Here's an explanation for .
The following accounts can be found at most banks and credit unions. They’re federally insured for up to $250,000 and offer a safe place to put your money while earning interest.
CDs are best for individuals looking for a guaranteed rate of return that’s typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.
Checking accounts are best for individuals who want to keep their money safe while still having easy, day-to-day access to their funds. ATM and other transactional fees may apply.
Savings and MMAs are good options for individuals looking to save for shorter-term goals. They’re a safe way to separate your savings from everyday cash, but may require larger minimum balances and have transfer limitations.
Citizens - 3.75% APY, $5,000 minimum balance to earn APY (no ATM access)
Citizens is the online bank division of Citizens Bank. It 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, but you’ll need at least $5,000 to open one.
CIT Bank - 3.60% APY, no minimum balance needed for APY
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.
Bread Savings - 3.50% APY, $100 minimum to open account (no ATM access)
Bread Savings is an online bank that offers a high-yield savings account and five terms of CDs. Bread Savings requires at least $100 to open this account.
Popular Direct - 3.35% APY, $5,000 minimum balance to earn APY (no ATM access)
A Popular Direct High-Rise Savings account is opened through Popular Bank. You’ll need to deposit at least $5,000 to open the account, but there’s no monthly maintenance fee. Popular Direct also offers mobile deposit.
Citibank - 3.25% APY, $1 minimum for APY (ATM access)
Citibank’s high-yield savings account pays well above the national average as well as higher than many of the savings rates offered by some of the nation’s largest banks. There’s no minimum balance requirement to earn the APY and no minimum to open an account. But the APY is only available in select markets.
Synchrony Bank - 3.25% APY, no minimum balance needed for APY (ATM access)
Synchrony Bank’s High Yield Savings account earns a competitive yield, and it has ATM access. There are no monthly fees, no minimum deposit to open, and no minimum balance required.
Ally Bank - 3.00% APY, no minimum balance needed for APY and a free checking account (no ATM access)
Ally Bank’s Online Savings Account has a competitive APY, doesn’t require an opening deposit, and there are no monthly service fees. Ally Bank also has 24/7 live customer care available.
American Express National Bank - 3.00% APY, no minimum balance needed for APY (no ATM access)
American Express is best known for its credit cards. But it also offers a competitive savings account. The account also has no fees and lets you link your external bank account. The company also offers a variety of CDs.
Barclays Bank - 3.00% APY, $0.01 minimum balance needed for APY (no ATM access)
Currently, you’ll earn a competitive yield with the Barclays Online Savings Account. You don’t need to make a minimum opening deposit, and it doesn’t charge a monthly service fee. Products from Barclays are only available online in the U.S.
Capital One - 3.00% APY, no minimum balance needed for APY (no ATM access)
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.
Discover Bank - 3.00% APY, no minimum balance needed for APY (no ATM access)
Discover is best known for its credit cards, but it also offers a savings account, money market account, checking account and CDs. The Discover Bank Online Savings Account doesn’t have a minimum deposit requirement. And it doesn’t have a monthly service fee.
Marcus by Goldman Sachs - 3.00% APY, no minimum balance to earn APY (no ATM access)
The high-yield savings account from Marcus requires no minimum deposit to open and no minimum to earn the competitive APY. There are no monthly fees and the account opening process is easy.
Savings accounts are a good option for achieving your money-saving goals. You’ll want to choose a savings account that offers a competitive annual percentage yield (APY) on your money. It can pay to choose one that either doesn’t have a monthly service fee or has a minimum balance requirement that you can meet to waive the fee.
Here are some steps to follow as you look for the best place to stash your savings:
A savings account is a type of financial account found at both banks and credit unions. 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.
Most consumers would benefit from having an emergency fund and additional savings. Some banks make it easy by allowing consumers to open multiple savings accounts for different savings goals.
A savings account should be a part of a diverse portfolio that could also include CDs for locking away money for longer terms, as well as the best investments to build your retirement nest egg. As a general rule, savings accounts are for money that you may need in the short term and that you don’t want to expose to any risk that could cause you to lose principal. CDs are generally better suited for money that can be left untouched for one, three or five years, since CDs typically charge penalties for early withdrawals.
Savings accounts aren’t for everyone, including those who aren’t able to maintain any minimum balance requirement that may result in fees.
Here’s who may benefit from opening a savings account:
Savings accounts may charge a service fee if the minimum balance requirement isn’t maintained. Some savings accounts, however, don’t require a minimum balance or only require a nominal amount — and still pay competitive APYs. If the account’s minimum balance requirement is too high, consider finding a bank offering a similar APY with no minimum balance requirement — or at least a lower one. Finding a savings account with no monthly fee is the easiest way to avoid having surcharges eat into your interest earnings or principal.
Out-of-network ATM fees are another charge to watch out for, as are fees for closing a savings account before a specified period, typically three to six months. An overdraft fee is what a bank charges you any time you withdraw more money from your account than what you have in it. Banks may also charge fees for sending wire transfers, or purchasing cashier’s or official bank checks, utilizing funds in a savings account.
Money deposited in a savings account at an FDIC bank or at an NCUA credit union is safe. The standard FDIC deposit insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category. At NCUA credit unions, the standard share insurance amount is $250,000 per share owner, per insured credit union, for each account ownership category.
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 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 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’s more on the best money market accounts.
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.
To open an account online, you’ll typically need your social security number, address, date of birth, as well as contact information. And you might need to scan a copy of a government issued photo ID. A bank will also likely ask for your occupation.
And you might need a routing number and account number or debit card number to make an initial deposit – especially if the bank requires a minimum opening deposit.
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?
Do you need to lift a credit freeze/security freeze? (If you have one)
Do you need to fund the new account immediately using an existing routing number/account number?
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.
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.
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.
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.
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.
Here are some of the biggest differences between checking and savings accounts:
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.
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 aren’t FDIC insured and you purchase shares when you deposit money into this product.
With a savings account, you can generally withdraw your money whenever you want, and without a penalty.
With a no-penalty CD, you can also generally withdraw your money anytime – without a penalty – after having the CD for six days. However, the yield on no-penalty CDs is usually much less than a regular CD.
Some savings accounts – especially at online banks – are known to have high yields.
Some interest checking accounts may have high yields also. But they might have caps and rate tiers that limit the balance that offers that competitive yield.
To recap, here are top online banks offering the best online savings accounts for December 2022:
At Bankrate, we regularly survey approximately 4,800 banks and credit unions in all 50 states to provide you with one of the most comprehensive comparisons of interest rates. All of the savings accounts below are insured by the FDIC at banks or the NCUA at credit unions. When selecting the best savings account for you, look for the highest yield while also considering introductory rates, minimum balances and accessibility.
We strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. The top banks listed below are based on factors such as APY, minimum balance requirements and broad availability.
Bankrate’s editorial team regularly updates rates featured on this page about every two weeks. We mainly look for the highest APYs and break ties using the minimum balance to open a CD. Bankrate’s editorial team has reviewed nearly all of the banks and credit unions that it tracks, and researches rates weekly for more than 70 popular banks and credit unions. These institutions were selected because they offer competitive APYs, are larger (based on the amount of deposits or assets), frequently appear in internet searches or other possible factors. These banks and credit unions typically offer accounts that are available nationwide. All of these banks are insured by the Federal Deposit Insurance Corp. (FDIC) and all of the credit unions are National Credit Union Administration (NCUA) credit unions, insured by the National Credit Union Share Insurance Fund (NCUSIF). Choosing an FDIC-insured bank or NCUA-backed credit union ensures your money is safe as long it’s within insurance limits and guidelines.
These financial institutions are featured in our savings rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank 5 Connect, Bank of America, Bank of the West, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Credit One Bank, Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, Limelight Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Morgan Stanley Private Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, PurePoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, SoFi Bank, State Employees' Credit Union, Suncoast Credit Union, Synchrony Bank, TD Bank, TIAA Bank, U.S. Bank, UFB Direct, Union Bank (California), USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.