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The Best Online Savings Accounts

The 10 Best Online Savings Accounts

Where is the Best Place to Open an Online Savings Account?

Feeling let down by your current bank and looking to spruce up your finances? Or maybe you're about to open your very first savings account and want to make sure you're getting all the bells and whistles? Deciding who to trust with your savings is a big deal and it's crucial for your financial wellbeing. With so many banks and online institutions, it can be overwhelming to hunt for the best interest options or rewards. Switching banks, or opening a new savings account, can feel like a lot.

But first, some background: a savings account is a type of bank account that is specifically designed for saving money. It's an account that you can deposit money into and earn interest on the balance. Unlike a checking account, which is used for everyday transactions like paying bills or buying groceries, a savings account is intended for long-term saving.

Wednesday, December 4th

2024 Online Savings Account Reviews

SoFi<sup>®</sup> Review Top Consumer Reviews Best-In-Class Blue Ribbon Award 5 Star Rating

SoFi®

5 Star Rating Top Consumer Reviews Best-In-Class Blue Ribbon Award

SoFi stands out among the competition with its high APYs for a fee-free account. SoFi is different from many banks in this review: when you sign up for a SoFi online bank account, you will receive both a checking account and a savings account. Once you set up direct deposit, you can earn on savings all the time. With no fees, very positive reviews, and responsive customer service, this modern and easy-to-access bank stands out as the most impressive option among providers of online savings accounts.

CiT Bank Review 4.5 Star Rating

CiT Bank

4.5 Star Rating

CiT Bank is a fully online banking institution that offers some impressive options for savings accounts. The bank has 4 different options, and the APY is highly competitive in modern savings accounts. While you need $100 to open your account, there are no monthly fees. Even though this bank doesn't have a flawless reputation, banking professionals love CiT Bank and it has won awards on several sites, so it's definitely worth looking into, especially for those high APYs.

Capital One Review 4.5 Star Rating

Capital One

4.5 Star Rating

When it comes to choosing a major bank, Capital One makes a mark. In addition to having physical branches, Capital One offers competitive APY rates that rival even the top online-only banks. With a focus on putting customers first, Capital One offers a range of benefits, including no monthly fees or overdraft charges, no minimum deposit requirements, and even savings options for children. The bank also boasts a highly-rated mobile app and has received high praise from both customers and banking experts, making it the standout choice for those seeking a traditional big-name bank for their savings account needs.

Varo Review 4 Star Rating

Varo

4 Star Rating

While Varo is fairly new and not the most feature-rich online savings account option, it has a lot of things going for it. There is one option for a high-yield savings account, which offers a guaranteed APY depending on how much money you have in the account. The account is fee-free and doesn't cost anything to open. With benefits for travelers and savings assistance, Varo stands out as a solid option to try for your next savings account.

Chase Review 3.5 Star Rating

Chase

3.5 Star Rating

On top of being a name almost everyone recognizes, Chase provides three savings account choices including 2 traditional savings accounts and a Certificate of Deposit (CD) account. If you are mostly interested in opening a savings account at a large bank, Chase could be a suitable option as it has been in the banking industry for over 200 years.

Axos Review 3 Star Rating

Axos

3 Star Rating

Axos is a completely online banking service with three options for a savings account. Because some customers have raised concerns about the technology and accessibility of their funds, it's worth noting that this bank is exclusively web-based. So, if you encounter issues accessing your cash through their website or app, you may find yourself in a bit of a bind. All things considered, Axos could be worth considering, but we recommend first looking at other options that might be a better fit for your needs.

Citizens Review 2.5 Star Rating

Citizens

2.5 Star Rating

Citizens Bank is a regional bank that operates in the Northeast, Midwest, and Florida. The bank offers a wide range of services, including free ATM and branch access, basic checking, and savings. Citizens Bank has over 1,100 branches across 12 states, making it convenient for customers to access their services. Citizens Bank can be a good option for those looking for cost-effective and convenient online and in-person savings accounts within the bank's coverage area.

Ally Review 2 Star Rating

Ally

2 Star Rating

Ally is an online-only bank that provides customers with high-interest rates and minimal fees by passing on the savings they make on overhead costs. Ally offers a variety of savings and CD accounts with high APYs. However, a lack of transparency regarding the APY tiers and low customer satisfaction ratings have led to a low rating for the bank. The customer reviews reflect dissatisfaction with the company's services, and with such low client confidence, Ally Bank only merits a low rating here.

Barclays Review 2 Star Rating

Barclays

2 Star Rating

Barclays is a renowned financial services company that has been dedicated to helping its clients and customers achieve their goals for over 300 years. The company's journey began in London in 1690 and in 1736, James Barclay joined the business, giving it the name it is known for today. Today, Barclays is a global financial services provider for online banking offering savings and CD accounts to US customers. However, with a range of complaints from customers, and a low-rated mobile app, Barclays doesn't stand out as a top competitor in online savings accounts despite its long history.

Bask Bank Review 1.5 Star Rating

Bask Bank

1.5 Star Rating

Bask Bank is a division of Texas Capital Bank and got its start in January 2020. The bank offers phone customer service hours six days a week and has a mobile app that customers can use to access their accounts. It has two savings options and a CD account that offers 4 terms for its customers. Bask Bank initially looks ideal for those who want a savings account that doesn't require a minimum balance, charges no monthly fees, and provides a competitive yield. However, with concerning comments from reviewers, and some limitations for transfers, Bask unfortunately earns a low rating in our review.

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Continued from above...

Many people use savings accounts to set aside money for things like a down payment on a house, a new car, or an emergency fund. One of the biggest benefits of a savings account is that it can help you build wealth over time. As you continue to save money, the interest earned on your balance can compound, meaning you earn interest on both the money you deposit and the interest you earn. Over time, this can add up significantly and help you achieve your financial goals. Additionally, savings accounts are generally considered to be low-risk investments, making them a great option for people who are risk-averse or new to investing.

Banks and financial institutions offer various types of savings accounts that cater to different needs and goals. Some common types of savings accounts include a basic savings account, which is a standard account that usually has a low minimum balance requirement and earns interest on the balance. High-yield savings accounts are another option. These typically offer a higher interest rate than basic savings accounts but may require a higher minimum balance in the account.

Money market accounts are similar to savings accounts but often offer higher interest rates and allow you to write a limited number of checks per month. Certificates of deposit (CDs) are time-bound accounts that require you to leave your money in the account for a fixed period in exchange for a higher interest rate. Individual Retirement Accounts (IRAs) are specialized accounts designed for retirement savings and offering tax benefits.

So, how do you find the best savings account for your needs? There are a lot of factors to consider for account types and which institution can offer you the best service overall. If you're not sure where to start, you can check out this list that should help you narrow down your options:

  • Fees: While many online savings accounts offer accounts for no fees, there are just as many that do require minimums, or at least that customers meet a daily balance minimum to avoid fees. Keep in mind how much you're willing to pay each month (and what you need to do to keep an account free of charge) as you look over savings account options.
  • Customer Service: Customer service is key, especially when your money is involved. Looking at feedback for customer service at different banks may help determine who you want to support your financial security.
  • APYs: One of the biggest differences in savings account options is how much you'll make in APYs. Some APYs are fixed, while others depend on your account balance. Keep an eye on how much you'll be earning for your money when you choose your next savings account.
  • Savings Options: General savings accounts aren't the only options to increase your savings. With CDs and Money Market accounts, many banks offer a variety of places to improve your savings. Knowing what kind of account you want will help you decide where to start banking next. Not all banks offer the same benefits or account types.

To make opening your next savings account as easy as 1, 2, 3, Top Consumer Reviews has evaluated and ranked the most popular options on the market. We hope this will help you decide which financial institution is the best place to keep track of your savings.

The Best Online Savings Accounts Compare Online Savings Accounts Compare Online Savings Account Reviews What are the best Online Savings Accounts Best Online Savings Account Reviews

Online Savings Account FAQ

An online savings account is a type of bank account that is managed entirely online through an institution's website or mobile app. With an online savings account, customers can deposit and withdraw money, check their account balance, view transaction history, and manage their savings goals entirely through an online interface. Online savings accounts typically offer higher interest rates and lower fees than traditional brick-and-mortar banks due to the lower overhead costs associated with online-only banking.
An online savings account offers several benefits over traditional savings accounts. First, online savings accounts typically offer higher interest rates than brick-and-mortar banks. They also usually have no fees - or, at least, lower fees than traditional banks. Finally, online savings accounts are accessible 24/7, providing customers with convenient and flexible access to their funds.
Managing your savings online is generally safe if you take the necessary precautions, such as using strong passwords and regularly monitoring your account. Many online banks are insured by the FDIC, so the funds in your savings account will be insured up to the maximum amount allowed by law, which adds an extra layer of protection. Additionally, online banks use advanced security measures such as encryption to protect your personal information and transactions.
Generally, online savings accounts offer higher APYs compared to traditional brick-and-mortar banks due to lower overhead costs. Some online savings accounts may offer tiered APYs based on the account balance, while others may offer a fixed APY for all account balances. It's important to compare APYs across different online savings accounts to find the one that best suits your needs.
Yes, you can use an online savings account for bill payments and direct deposit in many cases. While savings accounts are typically meant for saving money and not for everyday transactions, most online banks offer features that allow you to easily transfer money between your savings and checking accounts. However, it's important to note that there may be some restrictions or fees associated with using a savings account for these types of transactions, so it's always a good idea to check with your bank to make sure you understand their policies and any potential fees.
Yes, you can deposit checks into an online savings account. Most online banks offer remote deposits through their mobile banking apps. You simply take a photo of the check with your smartphone and submit it through the app. Some banks may also offer other options for depositing checks, such as mailing them in or depositing them at a partner ATM.
While the short answer is usually "yes”, it depends on the online savings account and the bank's policies. Most online banks do not have physical branches or ATMs, so it may not be possible to deposit cash directly into the account. However, you can deposit using a third-party payment service, or depositing cash at a network ATM. It is best to check with your specific online bank to see what options are available for depositing cash.
The minimum balance required for an online savings account varies by bank. Some banks don't require a minimum balance at all, while others require a certain amount to avoid fees or earn higher interest rates.
The Best Reviews of Online Savings Accounts