Best savings accounts for January 2022

Bankrate's guide to choosing the right savings rate

Online banks tend to offer higher rates than brick-and-mortar banks. They are able to do this because they usually have fewer overhead costs. Online banks also need a way to attract your money, so they tend to offer higher yields than banks with branches.

Banking with an online bank that’s a member of the Federal Deposit Insurance Corp. (FDIC), can be a great way to earn a higher rate and ensure your money stays protected. Just make sure you’re within the FDIC’s limits and guidelines.

Bankrate's experience on financial advice and reporting

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.

Best online savings accounts & rates of January 2022

Here are Bankrate's selections for the best widely available savings account rates from top online banks:

*Minimum balance of $25,000 or a monthly deposit of $100 required for APY.

Note: Annual percentage yields (APYs) shown are as of Jan. 4, 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.

1. Best Overall Rate: Comenity Direct - 0.55% APY, $100 minimum to open account (no ATM access)

Overview: Comenity Direct was created in 2018 and launched its High-Yield Savings Account in April 2019. Comenity Direct is a brand of Comenity Capital Bank. Comenity Bank is best known for its co-branded, private label and business credit card programs. Comenity Bank and Comenity Capital Bank partner with more than 160 retailers worldwide on those credit cards.

Perks: Comenity Direct has one of the highest APYs available. Comenity Direct also has customer care representatives available on the phone Monday through Friday from 7 a.m. to 11 p.m. Central. On weekends and most holidays, the phone hours are 9 a.m. to 5 p.m. Central. Comenity Direct also has the Comenity Direct mobile app. This allows you to make deposits and withdrawals. The app, which is available for iOS and Android, also lets you contact customer service and check your balance.

What to watch for: The account doesn’t offer an ATM card or a debit card for ATM access. But you are able to initiate free ACH transfers.

2. High Rate: Vio Bank - 0.51% APY, $100 minimum balance to open (no ATM access)

Overview: Vio Bank, established in 2018, is the national online division of MidFirst Bank. MidFirst Bank has been an FDIC-insured bank since 1934 and was established in 1911, according to the FDIC. Vio Bank offers both a High Yield Online Savings account and CDs.

Perks: Vio Bank’s High Yield Online Savings account has one of the top yields around, and all balances receive this APY. It also has a low minimum requirement of $100 to open the account. The account has no monthly fee. There is no charge for incoming domestic or international wire transfers. There also aren't any fees for outgoing or incoming external transfers. But the cost of sending a domestic wire transfer is $30.

What to watch for: You’ll be charged $5 each month for opting to receive paper statements for your account. After you make six withdrawals during your monthly statement cycle, you’ll incur a $10 fee for every withdrawal after that.

3. High Rate: Ally Bank - 0.50% APY, no minimum balance needed for APY and a free checking account (no ATM access)

Overview: Ally Bank started in 2004 and is headquartered in Sandy, Utah. In 2009, GMAC Bank was transformed into Ally Bank. It has 2.3 million deposit-account customers, according to its 2020 annual report.

Perks: You can deposit checks remotely with Ally eCheck Deposit. The Online Savings Account also has no monthly maintenance fees. Ally Bank also has 24/7 live customer care.

What to watch for: Like many online banks, you won’t be able to deposit cash into this account. If you only have the Online Savings Account you won’t be able to get an ATM or debit card. You’re only able to deposit $50,000 in a day and up to $250,000 every 30 calendar days via eCheck Deposit.

4. High Rate: American Express National Bank - 0.50% APY, no minimum balance needed for APY (no ATM access)

Overview: 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.

Perks: The online high yield savings account from American Express provides a competitive rate. It doesn't charge any monthly fees, and it doesn't require a minimum balance. The ability to link current bank accounts offers an easy solution if you have outside accounts that you'd like to view on one platform.

What to watch for: American Express doesn’t have a checking account, so you’ll need to bank elsewhere to get one. Similar to other online banks, American Express does not have any branch locations. And there's no mobile check deposit option — American Express reserves mobile apps for its credit card customers.

5. High Rate: Barclays Bank - 0.50% APY, no minimum balance needed for APY (no ATM access)

Overview: Barclays is often known for its credit cards, but it also offers a consistent high yield on its savings products. Products from Barclays are only available online in the U.S. Barclays offers a competitive, high yield on its savings account.

Perks: Among the perks of an online savings account at Barclays, you'll find a very competitive interest rate, no minimum to open, 24/7 access to funds, online transfers to and from other banks and direct deposit. Additionally, Barclays has a mobile savings app that also allows you to deposit/transfer funds.

What to watch for: If you're looking for a full-service banking institution, Barclays isn't a great option. The bank doesn't offer a checking account option, an ATM network, or branch locations. It's best for those who like to bank online and want an outside institution for its savings options.

6. High Rate: Citibank - 0.50% APY, $0 minimum opening deposit/$1 minimum for APY (ATM access)

Overview: Citibank, the retail banking arm of Citigroup, launched a high-yield savings account called Citi Accelerate in 2019. The 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.

Perks: If you’re already a Citi customer or you’re looking for an account at a bank that has a large national presence, this high-yield savings account may be worth considering. The APY is among the top yields you’ll find at a big bank, and the no minimum balance required to earn the APY makes it easy for anyone to start saving.

What to watch for: The account carries a monthly service charge fee of $4.50 if you open the You won't find any branches at Marcus. There's also no checking account option at Marcus, limiting your liquidity options. Citi Accelerate Savings account in a Basic or Access Account package. If you choose one of those packages, the fee can be waived by keeping at least a $500 average monthly balance.

7. High Rate: Marcus by Goldman Sachs -  0.50% APY, no minimum balance to earn APY (no ATM access)

Overview: The well-known investment firm Goldman Sachs opened Marcus as its consumer banking arm. Marcus has built a reputation for having a competitive APY. In addition, Marcus has an easy account opening process and it’s also simple to transfer money to accounts at other banks.

The savings account option from Marcus requires no minimum deposit to open and no minimum to earn the APY. In addition to savings products, Marcus also offers a range of personal loan options, from debt consolidation to home improvement.

Perks: Along with a high interest rate, the savings account product from Marcus comes with easy-to-meet requirements and the benefits of an online bank. You can access your account at any time, and you'll pay no fees for transactions. Marcus’ contact center is open seven days a week.

Marcus' savings account doesn’t have a minimum deposit amount, so it’s easy for anyone to open this account. Marcus by Goldman Sachs now has an app available on iOS and Google Play, where you can schedule recurring deposits into your account.

What to watch for: You won't find any branches at Marcus. There's also no checking account option at Marcus, limiting your liquidity options.

8. High Rate: Synchrony Bank - 0.50% APY, no minimum balance needed for APY (ATM access)

Overview: Synchrony Bank provides a range of depository products for consumers, including savings and money market accounts and a number of CDs. As an online bank, it has limited overhead cost, which means it can return those savings to customers in the form of higher rates. Indeed, its savings account and other depository products are consistently among the top-paying accounts. Synchrony also has a highly rated customer service department available by online chat or by phone seven days a week.

Perks: Customers get a lot of perks, including complimentary identity theft resolution as well as travel and leisure discounts. You'll even get a dedicated customer service number as a "Diamond" customer. You also have three free wire transfers per statement cycle and unlimited ATM reimbursements.

What to watch for: Synchrony Bank doesn't offer a checking account. It's not a full-service bank. So, if you're looking for liquidity, you might want to stash your cash elsewhere.

9. High Rate: Popular Direct - 0.45% APY, $5,000 minimum balance needed for APY (no ATM access)

Overview: A Popular Direct Ultimate Savings account is opened through Popular Bank. Popular Bank is an FDIC-insured bank that was established in 1999, according to the FDIC.

Perks: Popular Direct offers a competitive APY on its Popular Direct Ultimate Savings account, which debuted in July 2019. You can deposit a check into your Popular Direct Plus Savings account using your mobile device.

What to watch for: Popular Direct has a higher minimum balance requirement than some other banks. But there are also banks that have higher deposit requirements as well. ATM cards are not available for a Popular Direct savings account, but you can make an external transfer via ACH.

There are some fees to be aware of. There’s a $25 fee if you close your account within the first 180 days. Also, if your balance goes below $500 for any day during your statement cycle, there’s a $4 fee.

10. High Rate: Capital One - 0.40% APY, no minimum balance needed for APY

Overview: In addition to its credit cards, Capital One also provides a range of banking and lending products. Besides the 360 Performance Savings account, which made its debut in September 2019, Capital One also offers CDs, a savings IRA and a checking account.

Perks: The 360 Performance Savings account at Capital One doesn't have a monthly fee and doesn't require a minimum balance when you open the account. Also, you don't have to maintain a minimum in this account and all balances earn the same APY.

What to watch for: There are some accounts at online banks that offer higher yields on savings accounts.

11. High Rate: Discover Bank - 0.40% APY, no minimum balance needed for APY (no ATM access)

Overview: Discover Bank has been offering deposit products online since 2007. Discover is best known for its credit cards. But it also offers a savings account, money market account, checking account and CDs.

The Discover Online Savings Account isn’t the highest-yielding account. But it offers a very competitive APY and it has no minimum opening deposit and no monthly fee.

Perks: Discover Bank is a good option for an online bank that offers the most popular types of deposit products.

Not many online banks offer checking, money market accounts, savings and CDs. But Discover Bank offers all four and has competitive products in each category. It also offers a competitive yield on its savings account. Discover Bank might be for you if you want your checking and savings at the same online bank.

What to watch for: The Discover Bank Online Savings Account has a consistent APY. But there are higher-yielding accounts available.

12. High Rate: Citizens Access - 0.40% APY, $5,000 minimum balance to earn APY (no ATM access)

Overview: Citizens Access 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.

Perks: Citizens Access has a competitive savings account yield near the top of the available offers from Bankrate. Additionally, there are no sign-up or monthly fees.

What to watch for: There is a $5,000 minimum balance to get the highest APY. Citizens Access doesn’t have a mobile app, but you can deposit a check by signing into your account on your phone. Also, balances under $5,000 earn only 0.1 percent APY.

13. High Rate: PurePoint Financial - 0.40% APY, $10,000 minimum balance to earn APY (no ATM access)

Overview: PurePoint is a division of MUFG Union Bank NA. PurePoint Financial is consistently among the top-APY savings accounts. The Online Savings account isn’t meant for those who are just starting to save, since it has a higher minimum balance requirement compared with other savings accounts.

Perks: The PurePoint Online Savings account doesn’t have a monthly service charge. Interest is paid monthly with this account. The PurePoint savings account offers one of the most competitive savings APYs around.

What to watch for: If your balance drops below $10,000, the account only earns 0.1 percent APY. ATM cards aren’t available for PurePoint’s Online Savings account. PurePoint doesn’t have a mobile app. But it does have mobile banking through your phone’s web browser — which has mobile check deposit abilities.

14. High Rate: CIT Bank - up to 0.40% APY, $25,000 minimum balance or $100/month deposit to earn APY (no ATM access)

Overview: CIT Bank is a nationwide direct bank and is a division of CIT Bank NA, which is a subsidiary of CIT Group Inc., a financial holding company founded in 1908.

Perks: CIT offers competitive yields on its accounts and has a couple of options for savers. The Savings Builder – as long as you open it with at least $100 and keep making at least $100 in monthly deposits – earns a competitive APY.

What to watch for: There are two ways to earn the top APY. You need to either maintain a $25,000 balance, or you can open an account with at least $100 and make deposits of at least $100 each month. You’ll earn a much lower variable rate if your balance goes below $25,000 or if you don’t make monthly deposits of at least $100.

You’d earn that APY if you opened your account on the 15th of the month and didn’t make a qualifying deposit of $100 after opening the account. Your actual APY may be higher or lower, depending on the day of the month that you open your account.

What is a savings account?

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, it’s a good spot to park your emergency fund.

Savings accounts are insured up to at least $250,000 at banks backed by the Federal Deposit Insurance Corp. (FDIC) and at credit unions backed by National Credit Union Administration (NCUA), which operates and manages the National Credit Union Share Insurance Fund (NCUSIF).

How do savings accounts work?

Savings accounts are liquid bank accounts that usually offer a higher APY than checking accounts and can be accessed at any time. Easy access sets them apart from certificates of deposit, which require account holders to lock up savings for a specified term, typically months or years, and which usually charge an early withdrawal penalty for taking money out prematurely.

Though it's possible to withdraw cash from a savings account, doing so diminishes the amount of interest earned. The higher the account balance and longer it remains, the more the power of compound interest will work in your favor. Compound interest — or earning interest on top of interest — allows even small deposits to add up to bigger amounts over time.

That feature makes it crucial to compare APYs when choosing a savings account (because APYs include compound interest you earn during the year). APYs are the best way to compare how much interest you're currently earning or could be earning.

Use Bankrate’s compound interest calculator to calculate potential earnings on a savings account.

Making purchases or withdrawals from a savings account isn’t as easy as from a checking account. Unlike checking accounts, savings accounts typically won't come with a debit card to make point-of-sale transactions in person or online, for example.

Savings 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 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.

What are the different types of savings accounts?

Generally speaking, there is only one type of savings account. Some savings accounts may be called high-yield savings accounts but that doesn’t necessarily mean that they offer higher yields. Money market accounts also fall under the official definition of savings deposit accounts.

Some banks may also offer special savings accounts for children, while other institutions may one one account for everyone but allow accounts to be titled as custodial savings accounts.

Here are some possible titling options to designate the owner(s) of a savings account:

• Individual account: An account owned by a single person. No one else is allowed to access this account. (An exception can be if someone has a power of attorney for the individual account holder.)
• Joint account with rights of survivorship: If two people have a joint savings account — with no other beneficiaries on the account — and one of the joint owners dies, the account is paid to the living account holder.
• Payable on death (POD):If an individual savings account has one or more beneficiaries listed and the account owner passes away, these beneficiaries will receive the balance of the account. Appropriate proof, generally a death certificate, is needed. A beneficiary on a joint account, listed as POD, wouldn’t obtain a right to this account until the last account owner passes away.
• Uniform Transfers to Minors Act/Uniform Gifts to Minors Act (UTMA/UGMA): Typically, these types of accounts stipulate one custodian and one minor. The custodian manages the account for the minor until the child reaches age 18 or age 21, depending on the state.

Not all savings accounts are created equal. Many online banks, for example, pay higher yields than their brick-and-mortar counterparts. When choosing a savings account, consider APY, minimum deposit requirements and your financial goals. The best savings accounts should provide a competitive APY, but also give you the flexibility to securely withdraw or transfer money each statement period.

Online savings accounts versus traditional savings accounts

One big difference between savings accounts offered by online banks and those offered by traditional banks is the APY offered. Online banks usually offer much more competitive yields. Brick-and-mortar banks tend to offer something closer to the national average, which is currently 0.06 percent APY, or they offer something that’s nearly nothing — 0.01 percent APY.

Another difference is branch access. Online banks offer savings accounts that give customers the ability to bank from anywhere at any time, but these online institutions typically don’t have any branches — so customers can’t visit them in person to perform basic banking tasks. Here's how to make deposits into an online savings account:

• Direct deposit
• Mobile check deposits
• ATM deposits
• Mailing in checks
• Electronic funds transfers
• Wire transfers

In addition to offering branches for conducting bank business, some banks may provide an ATM card and/or a debit card for ATM access. Depending on the bank, you may be able to electronically transfer the money to an account that you hold at another bank. Other possible options for accessing money are cashier’s checks or official bank checks or by initiating wire transfers, which, generally, are more expensive methods.

Here are some of the ways withdrawals can be made from an online savings account at a traditional bank:

• ATM withdrawals
• Debit cards
• Checks
• Electronic funds transfers
• Wire transfers
• Requesting a mailed check

Savings accounts are limited by Regulation D, which limits the number of transfers or withdrawals from the account to six per calendar month or statement cycle of at least four weeks.

Transfers, which are similar to withdrawals, made online, via check or some other method made by the depositor and payable to third parties apply toward your six-transaction limit. Withdrawals from ATMs are not counted toward the six-transaction limit, and many banks offer ATM access for savings accounts.

In late April 2020, the Federal Reserve Board announced an interim final rule to amend Regulation D so that consumers can make an unlimited amount of withdrawals or deposits from savings accounts. Banks aren’t required to suspend the rule, however, so the six-limit rule may still apply.

Online banks vs. brick-and-mortar banks

Considerations for opening an account online

Banks will likely have some slightly different requirements for opening a bank account online, though most require U.S. citizens to provide a form of ID and a social security number.

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

Why do online banks pay more interest?

How frequently do savings account rates change?

The Federal Reserve sets rates, and its decision to cut rates to near zero percent in March 2020 to support the economy during the coronavirus crisis is part of the reason why savings yields are at these low levels. Competition for deposits and banks’ business needs also play into where a bank might set its savings rates.

Savings rates are usually variable, which means banks can change them whenever they want. Usually, a change doesn’t warrant switching banks. However, if your bank is no longer consistently offering a competitive yield, it might be time to shop around for one that does.

“It’s the only place in the investing universe where you’re going to get additional return, without having to take on risk to do it. Put your money in a federally insured financial institution and you have no risk of loss.” - Greg McBride, CFA, Bankrate Chief Financial Analyst.

You may be able to get a higher APY in a CD or a money market account. Typically, you’re rewarded with a higher APY in a CD because you’re agreeing to keep your money in the CD for a certain period of time. You’ll typically incur a penalty if you withdraw from the CD before its term matures.

Another disadvantage to a savings account is its APY is variable, so it could go up or down. Savings accounts with an introductory rate are an exception to this. After that introductory period ends, the bank tends to lower the APY to its standard rate, however. A good practice is to check and see what the bank’s standard or ongoing APY is before signing up for a savings account just because it has a high introductory rate.

How the Fed impacts online savings account rates

Savings account yields closely follow the federal funds rate, which is the interest rate banks charge each other for overnight loans. So, when you hear that the Federal Reserve has lowered rates, kept them the same or raised them, that means the Fed changed the federal funds rate. Changes to the federal funds rate usually affect savings yields.

Savings rates have been on the decline since the summer of 2019. The Fed cut rates three times in 2019, and then made two emergency rate cuts in March 2020 to try and bolster the economy due to the coronavirus. These reductions sent the federal funds rate down to a range of zero to 0.25 percent, prompting banks to lower the APYs on savings accounts.

Savers might be seeing higher APYs in 2022 among competitive banks, in response to Fed predictions that it expects to raise its key interest rates three times during the year.

National average interest rates

The national average interest rate for savings accounts is currently 0.06 percent. While it’s good to know the national average, you can easily earn more than this national average. Shop around for savings accounts that offer low or no minimum balance requirements and a more competitive APY.

Should you open a new savings account in 2022?

Savings accounts are a great way to separate your money, no matter what the yield is. Right now, rates are much lower than they were in early 2020 and 2019 at online banks and they are expected to remain that way for a while. You can’t control that we’re in a low-rate environment. But you can try to seek out a competitive yield. Even when the difference seems miniscule, it will still help you. For instance, $10,000 for a year in a savings account at 0.55 percent APY would earn $54 more than it would at 0.01 percent APY. Note that since savings yields are usually variable, the high-yield savings account probably won’t be the same APY for the whole year. This also assumes that you never withdraw money from the account.

What are typical fees associated with a savings account?

Savings accounts may have a maintenance fee if you don’t keep the minimum balance required in the account. If your balance stays above the minimum required, however, you should be able to avoid fees. There are some savings accounts that don’t require a minimum balance or only require a $1 minimum balance; some of these accounts also offer a competitive APY.

Keeping a certain balance in the savings account is the most common way to avoid a monthly fee. If the minimum balance requirement is too high, consider finding a bank offering a similar APY with no minimum balance requirement — or a lower one. Finding a savings account that doesn’t charge a monthly fee is the best way to avoid these fees that eat into your interest earnings or principal.

You could also incur fees if you withdraw cash from a foreign ATM (an ATM outside of your bank’s network or an ATM abroad). Banks may charge a fee for sending a wire transfer or purchasing a cashier’s check or official bank check. Some banks may charge you a fee if you close the savings account and withdraw your money before a certain time period. These periods tend to be between three and six months. Check with the bank to see if it charges this fee before opening your account. But if you think you’ll be closing out the account within six months of opening it, try to find a savings account that requires a low-minimum balance. That way you can keep your savings account open and continue to save, no matter how low your balance is.

Is my money safe 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.

Other high-yield saving options

• Money market accounts: Money market accounts are savings deposit accounts that may allow limited check-writing privileges or access to a debit card.
• Checking accounts: Checking accounts usually don’t offer competitive yields. There are some high-yield checking accounts, but they usually require you to meet certain requirements other than balance. These can include having a direct deposit, a minimum number of debit card transactions and the high yield may be limited to a certain amount of money.
• Certificates of deposit: A fixed-APY CD gives you the same yield for the term of the CD. Most savings accounts have variable yields, so a CD is a way to earn a fixed APY during a term. However, CDs usually have an early withdrawal penalty if you take your money out too soon.
• No-penalty CDs: No-penalty CDs might have a lower APY than a regular CD. But they usually don’t have penalties when you withdraw the money before the term concludes.
• Money market mutual fund: Money market mutual funds pay interest and may allow you to write checks. Money market funds aren't FDIC insured.

Savings account vs. money market account vs. mutual fund

FDIC

What to consider when applying:

• Safety: Savings and money market accounts at an FDIC-insured bank are insured up to at least $250,000, while money market mutual funds are not FDIC insured. Since savings accounts and money market accounts have this protection, these are safe places for your money. Money market mutual funds are still considered low-risk investments.
• Liquidity: Savings accounts and money market accounts are liquid accounts, so you can withdraw from them at any time – there are no early withdrawal penalties. Savings and money market accounts offer up to six withdrawals or transfers per month. Some banks will allow you to make ATM withdrawals from these accounts. And money market accounts may have limited check-writing authority. Money market mutual funds allow you to redeem shares at any time for the current net asset value.
• Earnings: Money market mutual fund accounts typically pay less than the best-yielding money market and savings accounts.
• Fees: All of these savings vehicles may come with some fees. But thanks to low or no minimum balances on some savings and money market accounts, you should be able to find a solution that makes the maintenance fee a non-factor.

What are the limits on a savings account?

What do the best savings accounts have in common?

Even before you look at the APY offered on a savings account, make sure you have enough money to open the account and can maintain the minimum balance requirement (if there is one). Also, check to see if the bank charges account fees. Even if it’s a high-yielding account, monthly maintenance fees can cause you to lose interest earnings or even some of your principal.

The good news? It’s easy to find an account that will help you earn a high APY without getting hit with costly fees. Here are some other items to look at in your next high-yield savings account:

• High APY: Aim for the best APY that will generate the most payout on your savings. But if that account isn’t a good fit for you, there are plenty of competitive yields at other banks to consider. Usually, the best rates are offered by online banks, which have lower overhead costs than brick-and-mortar banks.
• Low fees: Find an account that doesn’t charge fees. Or if it charges fees, make sure that you’ll be able to meet the requirements to avoid paying them and getting them waived.
• Easy withdrawals and deposits: A savings account is meant for growing your money. But your money needs to be accessible when you need it. Banks will let you access your savings in different ways. For example, some banks offer Zelle, which lets you send money to people you know through an app. Some banks provide ATM cards to access your money.
• FDIC insured: Your money should be in an FDIC-insured account. Always make sure your bank is insured by the FDIC and confirm you’re within FDIC insurance limits and guidelines.
• Bank account bonus: Some banks offer new customers a cash bonus if they open a new account. Those offers may require you to fund the account with “new money,” which means the money comes from outside of the bank.

Savings account FAQs

Do I have to pay taxes on my savings account?

"If they’re saving so much that the interest is impacting their taxes, they should consider tax-free bonds or tax-free money markets versus the money in the bank. They can typically get higher yields than the banks and have tax-free returns which wouldn’t show up on their taxes." - Tatyana Bunich, President and founder of Financial 1 Wealth Management Group.

How many savings accounts should you have?

"If you prefer simple, safe and secure, you likely will prefer just one account. Less statements to review, less login credentials to remember, less risk for fraudulent behavior, etc." - Ronald Guay, President and founder of Rivermark Wealth Management.

Is it bad to have multiple savings accounts?

Can I make payments and purchases from my savings account?

Can I write a check from my savings account?

How much money does the average person have in savings?

Recap: Bankrate's best online savings accounts & rates for January 2022

1. High Rate: Comenity Direct - 0.55% APY
2. High Rate: Vio Bank - 0.51% APY
3. High Rate: Ally Bank - 0.50% APY
4. High Rate: American Express National Bank - 0.50% APY
5. High Rate: Barclays Bank - 0.50% APY
6. High Rate: Citibank - 0.50% APY
7. High Rate: Marcus by Goldman Sachs - 0.50% APY
8. High Rate: Synchrony Bank - 0.50% APY
9. High Rate: Popular Direct - 0.45% APY
10. High Rate: Capital One - 0.40% APY
11. High Rate: Discover Bank - 0.40% APY
12. High Rate: Citizens Access - 0.40% APY
13. High Rate: PurePoint Financial - 0.40% APY
14. High Rate: CIT Bank - up to 0.40% APY

Banks we monitor

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, BB&T, BBVA, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, BrioDirect, Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens Access, Citizens Bank (Rhode Island), Comenity Direct, Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, E-Trade Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, Marcus by Goldman Sachs, HSBC, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, LegacyTexas Bank, Limelight Bank, Live Oak Bank, M&T Bank, MySavingsDirect, Navy Federal Credit Union, PenFed Credit Union, PNC Bank, Popular Direct, Purepoint Financial, Quontic Bank, Radius 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, State Employees' Credit Union, Suncoast Credit Union, Suntrust Bank, Synchrony Bank, TD Bank, TIAA Bank, UFB Direct, Union Bank (California), U.S. Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.