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 [sc code='wealth_historical_rates' product_type='savings' time_frame='week']. 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 October 2024

Written by

Edited by

Reviewed by

Edited by

Reviewed by

Updated Oct. 7, 2024

Editorial note: While our partners compensate us from links on this page, we maintain editorial integrity, and partners don't influence our product evaluations. Here's how we make money and here is our advertiser disclosure.

Opening a savings account allows savers to secure their funds in a safe place, capitalize on current interest rates and maintain liquidity for emergencies. Currently, the top savings account annual percentage yields (APY) range from 4.10 percent to 5.30 percent, with LendingClub offering the highest rate at 5.30 percent APY. This is roughly nine times higher than today's national average of 0.59 percent.

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.

Bankrate provides you with timely news and savings account rate information from the most popular and largest banks and credit unions, all of which are federally insured. This saves you the time and trouble of searching many banks’ and credit unions’ websites. Since 1976, Bankrate has been a trusted source of banking information to help you make well-informed decisions on your finances.

Best savings account rates

Bread Savings — 5.10% APY, $100 minimum deposit to open
EverBank — 5.05% APY, no minimum deposit to open
Popular Direct — 4.90% APY, $100 minimum deposit to open
Bask Bank — 4.85% APY, no minimum deposit to open
CIT Bank — 4.85% APY, $100 minimum deposit to open
UFB Direct — 4.83% APY, no minimum deposit to open
CIBC Bank USA — 4.61% APY, $1,000 minimum deposit to open
Citizens Access — 4.50% APY, $1 minimum deposit to open
Salem Five Direct — 4.50% APY, $10 minimum deposit to open
Capital One — 4.10% APY, no minimum deposit to open

Note: Annual percentage yields (APYs) shown were updated between Sept. 30 and Oct. 6. All other information is current as of Oct. 7. 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.

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Best savings account rates for October 2024

Bread Savings

4.8

Overview

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, which is a lot lower than the $1,500 required to open one of its CDs. The Bread Savings account doesn’t have a monthly service fee or minimum balance requirements after your opening deposit.

Read Bankrate's Expert Bread Savings Review

5.10% APY

$0 min. balance for APY

$100 min. deposit to open

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

Bread Savings

APY

APY last updated between 9/30 and 10/6.

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.

- Bread Savings pays very competitive yields on its savings account.
- With just $100 needed to open an account and no monthly maintenance fees, savers of all types may find it to be an appealing option.
- A paper statement will cost you $5 per request at Bread Savings.
- The bank also charges $25 to send a wire transfer and $15 for an official bank check.
- Bread Savings doesn’t have ATM access.

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.	Bread Savings APY APY last updated between 9/30 and 10/6. APY last updated between 9/30 and 10/6	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.
09/16/2024	5.10%	0.61%
07/22/2024	5.15%	0.59%
04/18/2024	5.15%	0.58%
03/21/2024	5.15%	0.57%

EverBank

5.0

Overview

The EverBank Performance℠ Savings account earns more than the national average APY. There’s no minimum deposit required to open the account.

Read Bankrate's Expert EverBank Review

5.05% APY

$0 min. balance for APY

$0 min. deposit to open

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

EverBank

APY

APY last updated between 9/30 and 10/6.

National average APY

How do we get this data?

- There’s no monthly maintenance fee.
- EverBank doesn’t have a minimum opening balance requirement for its Performance℠ Savings account.
- Some savings accounts from other banks offer slightly higher yields.

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.	EverBank APY APY last updated between 9/30 and 10/6. APY last updated between 9/30 and 10/6	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.
10/01/2024	5.05%	0.59%
09/03/2024	5.05%	0.61%
05/31/2024	5.05%	0.59%
01/03/2024	5.15%	0.58%
12/04/2023	5.15%	0.57%

Popular Direct

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.

Read Bankrate's Expert Popular Direct Review

4.90% APY

$100 min. deposit to open

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 9/30 and 10/6.

National average APY

How do we get this data?

- 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.
- 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.

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 9/30 and 10/6. APY last updated between 9/30 and 10/6	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.
10/01/2024	4.90%	0.59%
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%
01/09/2024	5.20%	0.58%
01/02/2024	5.25%	0.58%
12/12/2023	5.35%	0.57%
12/05/2023	5.40%	0.57%
11/07/2023	5.40%	0.60%
10/17/2023	5.40%	0.58%
10/10/2023	5.25%	0.58%

Bask Bank

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.

Read Bankrate's Expert Bask Bank Review

4.85% APY

$0 min. balance for APY

$0 min. deposit to open

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 9/30 and 10/6.

National average APY

How do we get this data?

- 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.
- 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.
- Though Bask Bank has a top-tier yield, some banks do offer higher APYs.

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 9/30 and 10/6. APY last updated between 9/30 and 10/6	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.
10/01/2024	4.85%	0.59%
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%
01/02/2024	5.10%	0.58%
12/05/2023	5.10%	0.57%
11/03/2023	5.10%	0.60%
10/18/2023	5.10%	0.58%
10/10/2023	5.00%	0.58%

CIT Bank

4.6

Overview

CIT Bank is known for offering multiple savings accounts. CIT Bank’s Platinum Savings account earns the highest yield on balances of $5,000 or more, while the Savings Connect account can be opened with just $100. These accounts don't charge a monthly maintenance fee. CIT Bank also has most of the other bank accounts a person could need, including a checking account, a money market account and CDs.

Read Bankrate's Expert CIT Bank Review

4.70% – 4.85% APY

$5,000 min. balance for APY

$100 min. deposit to open

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

CIT Bank

APY

APY last updated between 9/30 and 10/6.

National average APY

How do we get this data?

- CIT Bank offers a very competitive yield.
- Like many online banks, CIT doesn’t have a monthly service fee.
- You’ll need at least $5,000 to earn the top yield in the Platinum Savings account.

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.	CIT Bank APY APY last updated between 9/30 and 10/6. APY last updated between 9/30 and 10/6	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.
10/01/2024	4.70%	0.59%
09/04/2024	4.85%	0.61%
09/03/2024	5.00%	0.61%
05/13/2024	5.00%	0.59%
05/07/2024	5.05%	0.59%
05/01/2024	5.00%	0.59%
04/02/2024	5.05%	0.58%
03/05/2024	5.05%	0.57%
01/02/2024	5.05%	0.58%
12/05/2023	5.05%	0.57%
11/07/2023	5.05%	0.60%
10/10/2023	5.05%	0.58%

UFB Direct

5.0

Overview

UFB Direct is known for its high-yield savings account and money market account. Both the UFB Portfolio Savings account and UFB Portfolio Money Market account earn very competitive yields. One of their differences is the UFB Portfolio Savings account, which has ATM access, doesn’t charge a monthly service fee. The UFB Portfolio Money Market account charges a $10 monthly maintenance fee if you don’t keep at least $5,000 in the account.

Read Bankrate's Expert UFB Direct Review

4.83% APY

$0 min. deposit to open

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

UFB Direct

APY

APY last updated between 9/30 and 10/6.

National average APY

How do we get this data?

- UFB Direct’s Portfolio Savings account offers a top-tier yield.
- It also offers ATM access, which isn’t offered by every online bank.
- You can use mobile deposit to deposit checks at UFB Direct.
- Unlike the UFB Portfolio Money Market Account, the UFB Portfolio Savings account doesn’t have a monthly service fee or minimum balance requirement.
- The UFB Portfolio Savings account doesn’t require a minimum opening deposit.
- Time will tell if UFB Direct’s yield stays among the highest APYs over time, since savings APYs are variable.
- UFB Direct has five balance tiers. All of them yielded the same APY during Bankrate’s review, but this could change in the future.

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.	UFB Direct APY APY last updated between 9/30 and 10/6. APY last updated between 9/30 and 10/6	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.
10/01/2024	4.83%	0.59%
09/24/2024	4.83%	0.61%
09/03/2024	5.15%	0.61%
07/30/2024	5.15%	0.59%
05/07/2024	5.25%	0.59%
04/02/2024	5.25%	0.58%
03/05/2024	5.25%	0.57%
01/02/2024	5.25%	0.58%
12/05/2023	5.25%	0.57%
11/07/2023	5.25%	0.60%
10/10/2023	5.25%	0.58%

CIBC Bank USA

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. Its savings account has a much lower minimum opening deposit amount of $1,000.

Read Bankrate's Expert CIBC Bank USA Review

4.61% APY

$0 min. balance for APY

$1,000 min. deposit to open

See how rates for this account ha

Best savings accounts of October 2024

Best savings account rates

Best savings account rates for October 2024

Bread Savings

Overview

Rate history for Bread Savings's savings account

Why we chose it

What to watch for

EverBank

Overview

Rate history for EverBank's savings account

Why we chose it

What to watch for

Popular Direct

Overview

Rate history for Popular Direct's savings account

Why we chose it

What to watch for

Bask Bank

Overview

Rate history for Bask Bank's savings account

Why we chose it

What to watch for

CIT Bank

Overview

Rate history for CIT Bank's savings account

Why we chose it

What to watch for

UFB Direct

Overview

Rate history for UFB Direct's savings account

Why we chose it

What to watch for

CIBC Bank USA

Overview

Rate history for CIBC Bank USA's savings account