Best Savings Accounts
Best Online Savings Accounts of February 2020. The best savings accounts should come with great customer service, cutting-edge technology and higher-than-average interest rates, and they should have low or no fees. FintechZoom staff analyzed, compared and rated dozens of banks and credit unions before selecting the savings accounts that offer the best combination of consumer-friendly features.
A traditional bank savings account earns an annual percentage yield (APY) of 0.09% on average. Our top-rated online savings accounts below dish out more than 20x the returns of traditional bank savings accounts, and are insured by the FDIC. Simply put, you could be missing out on much larger guaranteed returns by letting your money languish in a traditional bank account with a low APY. Check out our recently-released list of 2020 picks to see which is a fit for you.
Best Online Savings Accounts of February 2020
CIT Bank – Best Online Savings Accounts
MINIMUM TO EARN APY: $100 (Member FDIC)
APY: 1.75%
EST. EARNINGS: $438 (Over 1 Year)
FEATURES
- Get $300 Cash Bonus for $50k balance or $150 Cash Bonus for $25k balance with code: Spring20
- No opening, monthly servicing, online transfer or incoming wire fees
- Savings plan that fits your lifestyle
- 24/7 digital access
- Maintain a $25k balance or deposit a minimum of $100 monthly to earn APY
- FDIC Insured
American Express Personal Savings – Best Online Savings Accounts
MINIMUM TO EARN APY: $1 (Member FDIC)
APY: – 1.70%
EST. EARNINGS: – $425 (Over 1 Year)
FEATURES
- No minimum deposit or balance required
- Open and manage account online
- Interest earned daily
- Higher interest rate than the national average
- FDIC insured
- Link up to 3 bank accounts from other institutions
Capital One
MINIMUM TO EARN APY: $0 (Member FDIC)
APY: 1.70%
EST. EARNINGS: $425 (Over 1 Year)
FEATURES
- No monthly fees
- No minimum balance required to open a 360 Money Market Account
- Open account online or at one of Capital One’s physical branches
- Up to 1.85% APY with a balance of $10,000 and over
- FDIC insured
- Manage your account online or through the mobile app
- Link Capital One 360 accounts or external bank accounts
Barclays – Best Online Savings Accounts
MINIMUM TO EARN APY: $0 (Member FDIC)
APY: 1.70%
EST. EARNINGS: $425 (Over 1 Year)
FEATURES
- No monthly maintenance fees
- No minimum deposit to open
- Award-winning account
- Secure, 24/7 online access to your funds
- Online transfers to and from other banks
- Tools to help you save
- Direct deposit to make saving simple and easy
Discover
MINIMUM TO EARN APY: $0 (Member FDIC)
APY: 1.60%
EST. EARNINGS: $400 (Over 1 Year)
FEATURES
- No monthly minimum requirements
- No monthly maintenance fees
- Interest compounded daily
- Mobile check deposit
- No-fee ATMs around the country
- 24/7 customer support
ufb DIRECT
MINIMUM TO EARN APY: $10,000 (Member FDIC)
APY: 1.90%
EST. EARNINGS: $475 (Over 1 Year)
FEATURES
- Earn 1.90% APY on balances of $10,000 and greater – more than 20X the national average.
- No monthly maintenance fees and a minimum deposit of only $100
- Access your funds 24/7 with easy-to-use digital banking tools
- Enjoy peace of mind with FDIC insurance up to the maximum allowable limit
PENFED
MINIMUM TO EARN APY: $5 (Insured by NCUA)
APY: 1.60%
EST. EARNINGS: $400 (Over 1 Year)
FEATURES
- No monthly maintenance fees
- $5 minimum opening balance
- Dividends compounded monthly
- Free online transfers
- Deposits up to $250,000 insured by the NCUA
Betterment
MINIMUM TO EARN APY: $0 (Member FDIC)
APY: 1.83%
EST. EARNINGS: $458 (Over 1 Year)
FEATURES
- Earn up to 1.83% APY
- $10 minimum deposit
- Apportions savings among several banks, making them FDIC-insured for higher amounts
- No additional trading, transfer, or withdrawal fees
- Withdraw without charge from ATMs around the world
Best High-Yield Savings Accounts for February 2020
- Fitness Bank 2.20% APY: $100 to open and $100 minimum to avoid a $10 monthly account fee. Must average 12,500 steps daily to earn the top rate.
- CFG Bank 2.15% APY: $1,000 to open and $25,000 to earn stated APY.
- Elements Financial Credit Union 2.10% APY: $5 to open and $2,500 to earn stated APY.
- CFG Bank 2.05% APY: $1,000 to open and earn stated APY. Avoid $10 monthly fee with $1,000 minimum balance.
- MemoryBank 2.00% APY: $50 to open and $0.01 to earn stated APY. Avoid $15 monthly fee with $1,000 minimum balance.
- BrioDirect 2.00% APY: $25 to open and earn stated APY.
- First Foundation Bank 2.00% APY: $1,000 to open and earn stated APY.
- One American Bank 2.00% APY: $25,000 to open and earn stated APY. Avoid $5 monthly fee by enrolling in electronic statements.
- Prime Alliance Bank 1.96% APY: $1 to open and $10,000 to earn stated APY.
- Customers Bank 1.95% APY: $25,000 to open and to earn stated APY.
How to Compare Online Savings Accounts
Each online savings account is unique, so it’s important to go comparison shopping before deciding where to park your money. The following is a list of the top things to focus on when comparing online savings accounts.
- APY: This is the most important thing to look for when comparing online savings accounts, given that the entire point of a savings account is to save as much as possible. Today’s APYs for online savings accounts range from as low as 0.01% to as high as 2.25%. The higher the rate, the greater the likelihood that there are minimum requirements (such as a minimum balance) attached.
- Fees: Online banks typically charge lower fees than traditional banks, but that doesn’t mean their services come completely free of charge. Some banks charge a small monthly fee for maintaining an account (or for going below a pre-determined minimum balance). There may also be fees for taking certain actions such as withdrawals from third-party ATMs or international transfers.
- Minimum requirements: As mentioned, savings accounts often come with minimum requirements that the customer must commit to in order to receive the promised APR. The requirement usually takes the form of a minimum monthly balance or minimum opening deposit.
- CDs: An online certificate of deposit, or online CD, is an alternative type of online savings account. With a CD, the customer must lock in their money for a certain period of time, e.g. 3 months, 12 months, or 6 years. Generally speaking, the longer the customer locks their money in for, the better the rate. At time of writing, online banks were offering 5-year CDs with as high as 3.10% APY, more than double the national average of around 1.30%.
- Checking services: Increasingly, online banks are offering hybrid checking-savings accounts that give the customer a combination of everyday banking services and a competitive savings rate. The best online savings accounts permit withdrawals (usually 4-6 per month), unlimited transfers between personal checking and savings accounts, and check deposits straight from a mobile app.
- Customer service: Just because something is online doesn’t mean having to forego customer service. Most online banks offer service by live chat or phone. Some online banks even maintain a few physical branches, giving customers the option of face-to-face contact from time to time.