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 0.59. 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 December 2024 - Up to 5.10%

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EverBank

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

4.75%
Min. balance for APY

$0
Min. deposit to open

$0

Why EverBank?

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

Pros

There’s no monthly maintenance fee.
EverBank doesn’t have a minimum opening balance requirement for its Performance℠ Savings account.
Cons

Some savings accounts from other banks offer slightly higher yields.
Switching from an account earning a nominal yield, a Bankrate staff member opened an EverBank Performance Savings account for its stellar annual percentage yield (APY) and lack of fees. “We have a big chunk of money in savings because we hope to buy a house once mortgage rates drop,” said the staff member. “But we want that money to be earning money for us, instead of sitting there losing value due to inflation.”

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 12/2 and 12/8.

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.	EverBank APY APY last updated between 12/2 and 12/8. APY last updated between 12/2 and 12/8	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.
12/03/2024	4.75%	0.59%
11/07/2024	4.75%	0.57%
10/01/2024	5.05%	0.57%
09/03/2024	5.05%	0.61%
05/31/2024	5.05%	0.59%
01/03/2024	5.15%	0.58%

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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

4.65%
Min. balance for APY

$0
Min. deposit to open

$0

Why Bask Bank?

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.

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.
Though Bask Bank has a top-tier yield, some banks do offer higher APYs.
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 12/2 and 12/8.

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 12/2 and 12/8. APY last updated between 12/2 and 12/8	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.
12/03/2024	4.65%	0.59%
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%
01/02/2024	5.10%	0.58%
12/12/2023	5.10%	0.57%

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Bread Savings

4.9 Bankrate savings score

Bankrate Savings rating = 4.9/5

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

4.65%
Min. balance for APY

$0
Min. deposit to open

$100

Why Bread Savings?

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.

Pros

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.
Cons

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.
A Bankrate staff member reported that opening a Bread Savings account was easy, taking them less than 10 minutes. The main reason for opening the account was the high annual percentage yield (APY) and no fees for withdrawals. While making their initial deposit while opening the account was easy, the staff member reported making additional deposits was difficult, requiring them to log into various bank accounts multiple times.

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 12/2 and 12/8.

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.	Bread Savings APY APY last updated between 12/2 and 12/8. APY last updated between 12/2 and 12/8	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.
11/27/2024	4.65%	0.57%
10/15/2024	4.75%	0.57%
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%

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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. 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 12/2 and 12/8.

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 12/2 and 12/8. APY last updated between 12/2 and 12/8	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.
12/03/2024	4.60%	0.59%
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%
01/09/2024	5.20%	0.58%
01/02/2024	5.25%	0.58%
12/12/2023	5.35%	0.57%

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CIT Bank

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

4.55%
Min. balance for APY

$5,000
Min. deposit to open

$100

Why CIT Bank?

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.

Pros

CIT Bank offers a very competitive yield.
Like many online banks, CIT doesn’t have a monthly service fee.
Cons

You’ll need at least $5,000 to earn the top yield in the Platinum Savings account.
Bankrate staff members were pleased with their CIT Bank experience. Some standout features include quick transfers between savings and checking accounts, the addition of Zelle and bill pay, a user-friendly app and a high APY.

While there were positive points, there were also some drawbacks. Staffers noted that it can take up to one week for transfers to become available. They also weren’t pleased with the limited app features and hard-to-find disclosures.

Best savings accounts of December 2024

Best savings account rates

Best savings account rates for December 2024

EverBank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why EverBank?

Pros and cons

Our experience with EverBank's savings account

Rate history for EverBank'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

Bread Savings

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Bread Savings?

Pros and cons

Our experience with Bread Savings's savings account

Rate history for Bread Savings's savings account

Popular Direct

Annual percentage yield

Min. deposit to open

Why Popular Direct?

Pros and cons

Rate history for Popular Direct's savings account

CIT Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why CIT Bank?

Pros and cons

Our experience with CIT Bank's savings account