Is my money safe in a savings account?

Money deposited in a savings account at an FDIC-insured bank, or at an NCUA-insured credit union, is safe as long as you are within FDIC or NCUA limits and following their guidelines.The standard FDIC deposit insurance amount is $250,000 per depositor, per FDIC-insured bank, per ownership category. You can use the FDIC’s Electronic Deposit Insurance Estimator (EDIE) to make sure your accounts are within FDIC limits. This tool relies on the information that you provide. The FDIC also has a phone number, (877) ASK-FDIC, that you can call to ask questions. The FDIC Bank Find tool is how you can verify your bank is an FDIC-insured bank, or you can call the FDIC’s phone number (877-275-3342) for assistance. At NCUA credit unions, the standard share insurance amount is also $250,000 per share owner, per insured credit union, for each account ownership category.

Should I have more than one savings account?

How many accounts you should have will vary. Though some savers are better off keeping all their funds in one account, others may benefit from having multiple savings accounts for different goals. Some savings accounts allow you to designate portions of your money into different buckets devoted to spending categories, such as for your emergency fund or vacation fund. And some banks help by encouraging customers to create multiple accounts for specific saving purposes. Regardless of how many accounts you decide to open, it pays to avoid accounts with monthly maintenance fees or minimum account balance requirements that may result in fees.

Do I have to pay taxes on my savings account?

Generally, any interest you earn on a savings account is considered taxable income. Even if you don’t receive a 1099-INT tax form because the amount of interest you’ve earned for the year is small (less than $10), you’re still expected to include the earned interest on your tax return. The IRS considers any interest earned on a savings account to be taxable. If you earn interest from your savings account, you'll be required to submit a 1099-INT form to the IRS. If you’re concerned about your tax liability and you’re saving for a long-term goal, consider keeping your extra funds in a different type of savings or investment vehicle. Money you’re setting aside for your kids’ college fund, for example, can be saved in a 529 plan where it grows tax-free. The savings in that account won’t be taxable, either, when your child’s ready to withdraw them to pay for tuition. Qualified withdrawals for education expenses from a 529 account are not taxable.

How often do interest rates on savings accounts change?

Savings rates are usually variable, which means banks can change them whenever they choose. Banks’ business needs, as well as competition for deposits, play a role in where banks set savings rates, while regulation plays a part as well. Savings-account yields closely follow the federal funds rate, which is the interest rate banks charge each other for overnight loans and is guided by the Federal Reserve. In recent years, top-yielding banks have raised savings rates in response to Fed rate hikes. The best savings accounts are federally insured. Money deposited in savings and money market accounts at an FDIC bank or NCUA credit union is safe and insured for up to at least $250,000 by either the FDIC or NCUA.

How much money does the average person have in savings?

Nearly 6 in 10 (59 percent) U.S. adults are uncomfortable with their level of emergency savings, according to Bankrate’s June Emergency Savings Report. The Federal Reserve's October 2023 survey of consumer finances, the latest available, found that the median value of the American family's transaction accounts (savings, checking, money market, prepaid debit cards, call accounts) is $8,000. A savings account can help you weather unexpected expenses, such as job loss, medical bills resulting from sudden illness, or unforeseen home or automobile repairs. Savings can also help you achieve financial goals, such as purchasing a home. If you start saving now — or add to existing savings — you’ll be better positioned to reach your financial goals even if they change.

Why do online banks pay more interest?

In some cases, the biggest banks still pay their savings account customers less than today's national average APY of 0.54. Online banks, on the other hand, typically pay much more because they don’t have the costs associated with maintaining branches, giving them the opportunity to pay customers higher yields. Though online banks offer higher savings rates and charge fewer fees than traditional banks, consumers should also consider their personal financial needs when deciding where to open an account, such as the need or desire to bank in person at a branch.

Best Savings Accounts Of January 2025 - Up to 4.75%

Read review

Openbank

4.5 Bankrate savings score

Bankrate Savings rating = 4.5/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs), minimum opening deposit requirements and minimum balances to avoid monthly service fees are some of the things that make up Bankrate’s score.

Annual percentage yield

4.75%
Min. balance for APY

$500
Min. deposit to open

$500

Why Openbank?

Openbank is a new digital subsidiary of Santander Bank. Openbank offers just one FDIC-insured savings account and it has a top-notch annual percentage yield (APY). There are no monthly fees, which is typical of online banks, but there is a minimum deposit requirement of $500. There’s also one big catch: you can’t open this account if you’re already a Santander Bank customer.

Pros

Openbank’s savings account offers an ultra-competitive yield on any balance.
There is no monthly maintenance fee.
Cons

The minimum deposit of $500, is steep, especially as many online banks don’t have a minimum deposit requirement.
Openbank isn’t available to residents of most northeastern states, including New York and Massachusetts.
Accounts aren’t available to existing Santander customers.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

Openbank

APY

APY last updated between 1/15 and 1/21.

National average APY

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Openbank APY APY last updated between 1/15 and 1/21. APY last updated between 1/15 and 1/21	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
01/14/2025	4.75%	0.55%
12/17/2024	4.75%	0.57%
11/12/2024	5.00%	0.57%
10/01/2024	5.25%	0.57%

Read review

BrioDirect

4.6 Bankrate savings score

Bankrate Savings rating = 4.6/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs), minimum opening deposit requirements and minimum balances to avoid monthly service fees are some of the things that make up Bankrate’s score.

Annual percentage yield

4.75%
Min. deposit to open

$5,000

Why BrioDirect?

BrioDirect's High-Yield Savings account offers a competitive yield but it requires a steep minimum deposit of $5,000 to open.

Pros

BrioDirect offers a competitive yield on its High-Yield Savings account.
Cons

You need to keep at least $25 in the account to earn the APY.
You need at least $5,000 to open this account.
Your account may be closed if it doesn’t have money in it for 21 or more days.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

BrioDirect

APY

APY last updated between 1/15 and 1/21.

National average APY

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	BrioDirect APY APY last updated between 1/15 and 1/21. APY last updated between 1/15 and 1/21	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
01/07/2025	4.75%	0.55%
12/24/2024	4.75%	0.57%
11/19/2024	4.85%	0.57%
10/29/2024	5.00%	0.57%
10/15/2024	5.05%	0.57%
10/01/2024	5.15%	0.57%
09/24/2024	5.15%	0.61%
09/03/2024	5.30%	0.61%
06/04/2024	5.30%	0.59%
05/07/2024	5.35%	0.59%
04/02/2024	5.35%	0.58%
03/05/2024	5.35%	0.57%
01/23/2024	5.35%	0.58%

Read review

Popular Direct

4.8 Bankrate savings score

Bankrate Savings rating = 4.8/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs), minimum opening deposit requirements and minimum balances to avoid monthly service fees are some of the things that make up Bankrate’s score.

Annual percentage yield

4.60%
Min. balance for APY

$100
Min. deposit to open

$100

Why Popular Direct?

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.

Pros

Popular Direct’s Select Savings account pays a top-tier yield.
The Select Savings account doesn’t have a monthly maintenance fee.
You can deposit checks through the bank’s app.
Cons

You’re not permitted to switch your external account during the first 60 calendar days after linking it to your Popular Direct account.
And there’s a $25 fee if you close your savings account during the first 180 days.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

Popular Direct

APY

APY last updated between 1/15 and 1/21.

National average APY

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Popular Direct APY APY last updated between 1/15 and 1/21. APY last updated between 1/15 and 1/21	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
01/07/2025	4.60%	0.55%
11/19/2024	4.60%	0.57%
11/05/2024	4.65%	0.57%
10/22/2024	4.76%	0.57%
10/08/2024	4.85%	0.57%
10/01/2024	4.90%	0.57%
09/24/2024	4.95%	0.61%
09/03/2024	5.01%	0.61%
08/20/2024	5.01%	0.59%
06/25/2024	5.05%	0.59%
05/07/2024	5.15%	0.59%
04/02/2024	5.15%	0.58%
03/12/2024	5.15%	0.57%
03/05/2024	5.20%	0.57%
01/23/2024	5.20%	0.58%

Read review

Bask Bank

5.0 Bankrate savings score

Bankrate Savings rating = 5/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs), minimum opening deposit requirements and minimum balances to avoid monthly service fees are some of the things that make up Bankrate’s score.

Annual percentage yield

4.50%
Min. balance for APY

$0
Min. deposit to open

$0

Why Bask Bank?

Bask Bank, a division of Texas Capital Bank, made its debut in early 2020. Its Interest Savings account offers a highly competitive yield, doesn’t require a minimum opening deposit and doesn't charge a monthly fee.

Pros

Bask Bank has consistently offered a top-tier APY on its Interest Savings Account since it first debuted in early 2022.
Bask Bank doesn’t have a minimum balance requirement.
The Bask Bank Interest Savings Account doesn’t have a monthly service fee.
Cons

You’ll need to fund your Bask Bank Interest Savings Account within 15 days of opening it; otherwise, the account could be closed.
The bank charges $35 for outgoing wire transfers.
A Bankrate staff member reported an overall positive experience with Bask Bank. They were drawn to the high yield, and opening an account took just about 10 minutes. Since opening the account, the Bankrate staff member has been able to easily check in on their annual percentage yield (APY) from time to time.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

Bask Bank

APY

APY last updated between 1/15 and 1/21.

National average APY

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Bask Bank APY APY last updated between 1/15 and 1/21. APY last updated between 1/15 and 1/21	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
01/07/2025	4.50%	0.55%
12/19/2024	4.50%	0.57%
11/13/2024	4.65%	0.57%
10/01/2024	4.85%	0.57%
09/30/2024	4.85%	0.61%
09/03/2024	5.10%	0.61%
05/07/2024	5.10%	0.59%
04/02/2024	5.10%	0.58%
03/05/2024	5.10%	0.57%
01/23/2024	5.10%	0.58%

Read review

Jenius Bank

4.7 Bankrate savings score

Bankrate Savings rating = 4.7/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs), minimum opening deposit requirements and minimum balances to avoid monthly service fees are some of the things that make up Bankrate’s score.

Annual percentage yield

4.50%
Min. balance for APY

$0
Min. deposit to open

$0

Why Jenius Bank?

Established in 2023, Jenius Bank offers just one account — a high-yield savings account with a top-notch annual percentage yield (APY) on any balance. There is no minimum balance required to open the account. Moreover, the account is entirely fee-free, including no monthly and excessive transaction fees. Jenius Bank accounts are FDIC-insured through its parent bank, SMBC MANUBANK.

Pros

Jenius Bank’s high-yield savings account offers an ultra-competitive yield on any balance.
There’s no minimum deposit requirement, and the account comes without fees.
Joint savings accounts are available.
Cons

The account isn’t available to residents of Hawaii and New Mexico.
Withdrawal options are extremely limited; your only option is to transfer money to another account.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

Jenius Bank

APY

APY last updated between 1/15 and 1/21.

National average APY

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Jenius Bank APY APY last updated between 1/15 and 1/21. APY last updated between 1/15 and 1/21	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
01/15/2025	4.50%	0.55%
01/03/2025	4.80%	0.55%
10/17/2024	4.80%	0.57%
10/16/2024	5.05%	0.57%
09/13/2024	5.25%	0.61%
05/08/2024	5.25%	0.59%
02/13/2024	5.25%	0.58%
02/02/2024	5.10%	0.58%

Read review

Forbright Bank

5.0 Bankrate savings score

Bankrate Savings rating = 5/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs), minimum opening deposit requirements and minimum balances to avoid monthly service fees are some of the things that make up Bankrate’s score.

Annual percentage yield

4.25%
Min. balance for APY

$0
Min. deposit to open

$0

Why Forbright Bank?

Forbright Bank has high yields on its deposit products, particularly its Growth Savings account, which has a top-notch yield on any balance. The account can be opened online, and there’s no minimum opening deposit requirement. Forbright Bank was named the best eco-friendly bank in the 2025 Bankrate Awards.

Pros

Forbright’s Growth Savings account offers a highly competitive yield on any balance.
There’s no minimum opening deposit requirement.
The account can be opened online.
Cons

The Growth Savings account doesn’t offer ATM access.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

Forbright Bank

APY

APY last updated between 1/15 and 1/21.

National average APY

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Forbright Bank APY APY last updated between 1/15 and 1/21. APY last updated between 1/15 and 1/21	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
01/09/2025	4.25%	0.55%
01/06/2025	4.60%	0.55%
11/19/2024	4.60%	0.57%
10/01/2024	5.00%	0.57%
09/03/2024	5.30%	0.61%
05/22/2024	5.30%	0.59%
05/07/2024	5.15%	0.59%
04/30/2024	3.50%	0.58%
04/29/2024	5.15%	0.58%
04/02/2024	3.50%	0.58%
03/05/2024	3.50%	0.57%
01/23/2024	3.50%	0.58%

Read review

Synchrony Bank

5.0 Bankrate savings score

Bankrate Savings rating = 5/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs), minimum opening deposit requirements and minimum balances to avoid monthly service fees are some of the things that make up Bankrate’s score.

Annual percentage yield

4.10%
Min. balance for APY

$0
Min. deposit to open

$0

Why Synchrony Bank?

Synchrony Bank’s High Yield Savings account earns a competitive yield and it has ATM access. The ATM access and $5 worth of ATM refunds per month are nice features for an online bank. Synchrony Bank’s savings account doesn’t have monthly fees, and you don’t need a minimum opening deposit. But if you're looking to do all of your banking in one place, you'll need to look elsewhere. Synchrony Bank doesn't currently offer a checking account.

Pros

The Synchrony Bank High Yield Savings earns a competitive yield.
It also comes with ATM access, and the bank refunds $5 worth of ATM fees charged domestically each month.
Cons

You’ll need to make your initial deposit within 60 days of account opening – otherwise your account could be closed.
See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

Best savings accounts of January 2025

Current savings trends Caret Up Icon Caret Down Icon

Best savings account rates for January 2025

Openbank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Openbank?

Pros and cons

Rate history for Openbank's savings account

BrioDirect

Annual percentage yield

Min. deposit to open

Why BrioDirect?

Pros and cons

Rate history for BrioDirect's savings account

Popular Direct

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Popular Direct?

Pros and cons

Rate history for Popular Direct's savings account

Bask Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Bask Bank?

Pros and cons

Our experience with Bask Bank's savings account

Rate history for Bask Bank's savings account

Jenius Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Jenius Bank?

Pros and cons

Rate history for Jenius Bank's savings account

Forbright Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Forbright Bank?

Pros and cons

Rate history for Forbright Bank's savings account

Synchrony Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Synchrony Bank?

Pros and cons

Rate history for Synchrony Bank's savings account

Current savings trends