Best savings account of September 2023

A savings account is a great place to stash and grow money for an emergency fund, dream vacation, or some other goal. The best savings accounts usually have higher interest rates than checking accounts, helping you grow your money faster. With the best savings account interest rates topping 5.00% APY, now is an excellent time to put your money to work. Here are 11 savings accounts to consider.  

Bask Bank offers two savings accounts with zero monthly account fees and no minimum balance requirements. The Bask Interest Savings Account earns a competitive 5.00% APY. If you’re a frequent traveler, you might prefer the Bask Mileage Savings Account, which earns American Airlines AAdvantage miles rather than interest. You’ll earn 2.5 miles for every dollar saved annually. Miles accrue daily and are awarded monthly based on your average monthly balance. 

Ally Bank is known for offering consistently competitive interest rates on its deposit accounts. The Ally Bank Savings Account earns 4.25% APY on all balance tiers, and there are no monthly account fees or minimum balance requirements to open or maintain your account. You can create up to 10 savings buckets to divvy up your money, visualize what you’re saving for, and reach your goals faster. With Ally Boosters, you can set up recurring transfers and round-ups to automate your savings.

The SoFi Online Bank Account earns 4.50% APY when you set up direct deposit or add at least $5,000 to the account every 30 days (otherwise, the APY drops to 1.20%, so you’ll do better elsewhere if you won’t meet either condition). There are no account fees, and you can get paid two days faster with early direct deposit. SoFi offers a $250 introductory bonus when you make at least $5,000 in direct deposits, or a $50 bonus with a lower amount. You can get an additional $2 million of FDIC insurance by enrolling in the SoFi Insured Deposit Program.

Synchrony’s high-yield savings account offers a 4.50% APY across all balance tiers with no monthly fees or minimum balance requirements. A nice perk is that the account comes with an ATM card that works in the U.S. and abroad at thousands of fee-free ATMs in the Plus and Accel networks. Synchrony refunds up to $5 a month for domestic ATM fees charged by other financial institutions or an unlimited amount if you have Diamond status in its Perks Rewards program. 

Discover Bank is well known for its credit cards, but it also offers deposit accounts. The Discover Bank Online Savings Account offers a 4.30% APY, with interest compounded daily. There are no monthly fees or charges for official bank checks, excessive withdrawals, stop payment orders, or returned deposited items. You can enroll in Early Pay to receive direct deposits up to two days early. There’s no ATM card, but you can withdraw money via online transfers to another Discover or external account, wire transfer, or official bank check. 

The Newtek Bank Personal High Yield Savings account offers a competitive 5.25% APY across all balance tiers. There are no monthly account fees or service charges, a $0 minimum deposit, and a minimum balance of just $0.01 to earn the APY. The account doesn’t have an ATM card, but you can make up to six monthly withdrawals by transferring cash back to the original external funding source. Only business customers can access online bill pay, so you’ll have to look elsewhere if you want this feature. 

The Popular Direct Select Savings account offers a 5.20% APY across all balance tiers with interest compounded daily. There’s a $100 minimum opening deposit, but you can earn the APY with a balance as low as $0.01. The account has no monthly fees, but you’ll pay $10 per overdraft on up to three overdrafts per day. The account doesn’t come with an ATM card, so you’ll need to make external transfers to access your cash. 

The UFB High Yield Savings Account has a strong 5.25% APY at any balance with no minimum deposit requirement or monthly fees. The account includes an ATM card that you can use to access your funds at roughly 91,000 fee-free ATMs nationwide, and you can make unlimited funds transfers. If your deposits exceed the $250,000 FDIC limit, you can access expanded coverage up to $175 million through IntraFi Network Deposits.

Transportation Alliance Bank (dba TAB Bank) has roots in the trucking industry but now offers various financial services to individual consumers and families. TAB Bank’s High Yield Savings account offers 5.02% APY with no balance caps or monthly maintenance fees. There’s no minimum deposit to open an account and a $0.01 minimum balance to earn the APY. 

The Salem Five Direct eOne Savings account offers a 5.01% APY on balances up to $1 million with a $10 minimum opening deposit (remember that FDIC insurance only covers $250,000, or $500,000 for joint accounts). There are no monthly fees, but you’ll pay a $10 fee for making more than six monthly withdrawals or transfers. Not everyone can open an eOne Savings account: It’s available only to customers who apply online and don’t already have a Salem Five Direct savings or checking account (unless it’s an eOne Checking Account). 

The Dollar Savings Direct High Interest Savings Account earns 5.00% APY on any balance with interest compounded daily. The account has zero fees, penalties, or service charges, and it has a $0 minimum deposit. The personal checking account you use to make your initial deposit becomes your linked external account, and you can log into your account to transfer funds between the accounts (transfers usually take two to four business days). Note that there’s no ATM access or mobile banking app, so everything is done via online banking. 

A savings account is an excellent place to park the cash you won’t spend right away, such as an emergency fund or a vacation fund. (Savings and checking accounts differ; a checking account is handy for everyday spending and paying bills). Brick-and-mortar banks and credit unions offer traditional savings accounts, which generally come with lower APYs (annual percentage rates) and higher fees than online accounts. On the plus side, you can visit a local branch for in-person banking or support, which can be especially attractive to savers who aren’t comfortable banking online. 

TIP: Banks and credit unions offer personal banking and other financial services, but they differ in some key ways. Banks are for-profit financial institutions that are usually privately owned by institutional investors or shareholders. On the other hand, credit unions are not-for-profit institutions that distribute their profits to members. 

Online banks and credit unions offer high-yield savings accounts (HYSAs), which function just like traditional savings accounts but typically come with higher rates and lower fees. That’s because online institutions have fewer overhead costs than their brick-and-mortar counterparts, so they can often pass savings on to customers via more favorable rates and fees. The best high-yield savings accounts today have APYs topping 5.00%. A high-yield savings account can be a smart choice if you’re comfortable banking online and want to earn a competitive APY while minimizing fees. 

Whether you have a traditional or high-yield savings account, your deposits are insured up to $250,000 (or $500,000 for joint accounts) if your money is in an FDIC-member bank or NCUA-member credit union. 

Before you open a savings account, shop around to find one that suits your needs. Compare at least three accounts, paying attention to the following:

• Interest rates and APYs
• Minimum balance requirements
• Account fees
• Withdrawal limits
• How you access your funds 
• Customer service (when and how it’s available)

The best banks and best online banks offer competitive rates, low fees, convenient access to your cash, and flexible customer service options. Once you choose a savings account at a bank or credit union, you’ll fill out an application (either online or at your local branch) and make an initial deposit. While the process varies by institution, you’ll generally provide your name, address, date of birth, and Social Security number, plus a driver’s license or state ID to confirm your identity. 

Many banks and credit unions offer kids’ bank accounts, which can be a great tool for helping children learn healthy saving habits. Since minors can’t open a bank account, a parent or guardian can open a joint account that gives the child access to the account while the adult monitors the activity. 

You’ll start earning interest once you open a savings account and make an initial deposit. The amount you earn depends on the savings account APY, your balance, and how long you keep money in the account. Interest typically compounds daily or monthly, though some banks may compound interest quarterly or yearly. Following each compounding period, the bank deposits the accrued interest into your account, and then you start earning interest on the interest. 

Some savings accounts come with fees that can reduce your interest earnings. Common fees include monthly maintenance, overdraft, stop payment, returned item, wire transfer, and inactivity (or dormant account) fees. 

Also, be aware that some banks limit you to six withdrawals or transfers per month, while others allow unlimited transactions. Read the fine print before opening an account so you know what to expect. 

Finally, some people can get by with a single savings account, while others might benefit from multiple savings accounts, each earmarked for a specific purpose — such as an emergency fund, travel fund, and pet expenses. Alternatively, many savings accounts (including Ally’s) have “buckets” that let you save for separate goals within a single account. Either way, saving for distinct goals (and following these money-saving tips) can make it easier to stay on track and reach your goals sooner.

We reviewed dozens of nationally available banks and assessed them on quantifiable comparisons of fees, rates (such as APYs, or annual percentage yields), interest rates, branch availability (for brick-and-mortar banks), ATM networks, ATM fees, minimum balance requirements, minimum deposits to open an account, and accounts bonuses. We also factored in analysis of a bank’s customer service, factoring in Better Business Bureau ratings, Trustpilot ratings, and app ratings on both the Apple App Store and the Google Play Store. You can read our full methodology here.

From there, we give each bank and specific banking product a score between one and five stars (with five stars being the best score). We review our ratings and scores quarterly to ensure you’re getting the latest analysis of a particular bank’s strengths and weaknesses.

The top factors we look at when assessing savings accounts are:

• Monthly fees
• Annual percentage yields
• Minimum deposit requirements
• Minimum balance requirements
• Sign-up bonuses or other special offers/features
• Customer service offerings and ratings

Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.

This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at [email protected].