While the same big banks offer current and savings accounts to customers, including “high-yield” savings accounts, big banks like Chase and Bank of America are now increasing competition from online banks and robo-advisors.
If you’re looking for a new savings account, you should try comparing options between conventional banks and online providers that can provide a greater financial return on your savings.
After all, the point of a savings account is to help save money for emergencies or goals, and to earn interest on deposits. It makes sense that you want a new savings account that offers generous interest rates with minimal fees and is easy to use.
How to choose the best savings account.
Match your account with your savings goals.
Setting savings goals can help you determine the best savings account for you. If you’re saving for a new kitchen or vacation, an easily accessible account will allow you to get cash without penalty. For example, for long-term savings, fixed-rate accounts usually pay more interest.
Think about how much you want to save.
How much you want to save affects which savings account is best for you. A term deposit savings account requires you to set aside a fixed amount of money each month. If you don’t deposit the minimum amount into your account, your account may be closed or your rates may drop. The ISA has an upper limit of £20,000 per year on the amount you can save each year.
What level of access do I need?
Each savings account has different withdrawal rules. In general, the stricter those rules are, the higher the savings rate. A simple account allows you to withdraw money at any time without penalty, but the interest rate is lower than a fixed-rate savings account.
Find the features and benefits you want to use.
Savings accounts have several features. Online banking should make it easy to transfer money from your current account to your savings account. But are you happy with your online or app account, or do you need branch access? Some accounts offer perks such as free insurance, railroad cards or higher introductory interest rates when you sign up.
Prime Alliance Bank.
Prime Alliance Bank was launched in 2004. Savings accounts, based in Utah but open to online consumers nationwide, include current accounts, savings accounts, money market accounts and CDs. Prime Alliance has one branch in Utah, but individual savings account customers receive services through online banking or mobile banking.
Lending Club Bank.
Lending Club Bank is an online bank that began in 2007 and offers a wide range of products, including high-yield savings, CDs, checking rewards, loans and more. You can access your account online and through the Lending Club mobile app.
Synchrony is an online bank that offers a wide range of savings products, such as high-yield savings, money market accounts and CDs, with competitive returns. Synchrony is online only, and you can access your Synchrony account information from the mobile app or online. Synchrony does not include current deposits as a deposit product, so you must make sure you have an external account for transfers.
Synchrony offers ATM cards as an option for customers with high yield savings. There are no ATM withdrawal fees, and ATM fees can be reimbursed by other agencies up to $5 per statement cycle.
This is the CIT Bank Savings Builder.
The CIT Bank Savings Builder account has a low barrier to entry, but if you can meet some basic requirements, you can get a much higher return on your savings. The highest interest rate (currently 0.85% APR) is returned to individuals who maintain a balance of $25,000 or can deposit more than $100 into their account each month. The $25,000 minimum balance requirement is quite expensive, but the fact that you can get the highest return by depositing as little as $100 each month is quite nice. In addition to providing higher returns with regular deposits, this feature actually encourages you to save more money over time.
TAB Bank, or Transit Alliance Bank, was founded in Utah in 1998. The bank began serving truckers, operating primarily at truck stops, and then expanded to offer a range of personal banking products for customers outside the industry, including savings, current accounts, money market accounts and CDs. Use your bank’s mobile platform and online reporting tools to track your income and activity.
Marcus at Goldman Sachs.
Marcus is Goldman Sachs’ online consumer banking division and is often listed among the best interest-bearing benefits for high-yield savings and CD products. Marcus also offers personal loans. In 2020, Marcus introduced a mobile app with standard features such as viewing and transferring account activity and providing tools to visualize savings over time. Marcus does not currently offer current deposit options, but you can make same-day transfers under $100,000 to other banks.
That’s the bank.
Baro Bank is a digital bank that offers bank accounts that offer debit card rewards in addition to high-yield savings. Varo savings accounts are subject to tiered interest rates and must meet certain conditions to qualify. To qualify for the above rates, you must maintain a balance of $4.95 every 31 days and $5.12 every 30 days in your account.
Ally Bank is one of the most popular online banking options on the market with many products such as current accounts, savings, money market accounts and CDs. If you’re familiar with online banking, Ally’s portfolio of products meets all your banking needs and can help you get the best interest available. Keep in mind that you can’t deposit cash because the bank doesn’t have a physical branch. Ally has a powerful online and mobile app that makes it easy to transfer and access your account information, as well as organize and maximize your savings.
UFB Direct is another online bank that offers high returns with no hidden fees. The current interest cap (currently 2.21% APR) is paid to anyone with an average account balance of $10,000 or more, and no minimum deposit is required to get started.
The account also comes with a free debit card and no administrative fees or services. Free transfers within your UFB Direct account are also available, and you can access your online account from anywhere in the world.
Alliant Credit Union.
Alliant Credit Union is a nationwide credit union that makes membership easy. Their online savings account is also competitive, featuring a 1.60% annual rate of return and no monthly fee if you agree to an electronic statement.
All you have to do is deposit a minimum of $5 into this account, and you can access the network through thousands of ATMs. This account offers no maximum balance and can be opened online.
Discovery may be best known for its credit card business, but the bank’s online banking options are numerous and offer competitive interest rates. That means products include current accounts, savings, money market accounts and CDs. You can access your account information from the mobile app or online, and Discover allows you to view all of your accounts in one place. Discovery Bank is a good option for those who prefer all accounts in one place.
Barclays Bank Delaware, the online banking division of Barclays in the United States, offers both high-yield savings accounts and CD options. Like the other online banks on this list, Barclays has no checking products and does not allow ATM access, which may not promote universal banking. But for those who don’t mind online banking, we offer consistently competitive rates and easy access.