Where Can You Find the Best Online Savings Accounts? Your parents always told you to save for a rainy day. You work hard for your money and you want to get the most from your savings. While you could simply go to your local bank and keep the funds in a savings account there, you may have heard that there are online accounts which offer a much better return on your money.
Best Option
SoFi is an online-only bank. The financial institution first known as Social Finance, Inc. was founded in 2011, but it only opened its online checking and savings accounts in 2022. Their mission is to help members "get their money right," so SoFi focuses on offering tools to help members save money, attack debt with a plan, and put their money to work. They promise that opening an account is quick and easy. You just need to live in the United States, be 18 or over, and provide basic information including your name, home address, date of birth, citizenship status, phone number, email address, and Social Security number, though you may be asked for additional documentation such as a driver's license or photo ID. Student accounts are also offered for college students, which gives new members a $30 bonus for opening and funding an account with any .edu email address.
Almost no fees here
With accounts on SoFi, there are no fees or minimum balance requirements. If you sign up with direct deposit, you can earn a welcome bonus up to $300 and unlock SoFiPlus to receive higher rates on savings and Vault balances, plus interest-bearing checking. There are no overdraft fees if you have direct deposit, but SoFi charges $30 for self-serve domestic outbound wires.
Combo savings and checking account for all
Members at SoFi receive both a checking and a high-yield savings account. Standalone accounts are not offered. As part of your membership, you will have free access to a certified financial planner and career coach, as well as referral programs, reward points, discounts on SoFi products, and invitations to member events. Sports fans may appreciate the exclusive benefits they are entitled to as members when they visit Los Angeles' SoFi Stadium. There is even SoFi Travel to offer deals and earn cash back.
SoFi Savings Tools: Roundups, Vaults, AutoSave & Early Paycheck Access
To get your savings "growing" in the right direction, SoFi offers a feature called Roundups to help increase your savings. When activated, all debit card purchases are rounded to the next dollar and the difference is deposited into an account called a Vault. Vaults are extensions of your main savings account which permit members to organize their funds and earmark the money for specific reasons (emergency fund, vacation, or whatever you wish) while earning the same high APY as the rest of the savings account. SoFi offers an APY up to 9 times the national average savings rate but this is only on accounts with direct deposit or $5,000 in deposits every 30 days. Checking accounts have a small APY. AutoSave, another feature to help members at SoFi stash funds in their savings, permits you to set an amount of your paycheck to automatically go into savings. In addition, the early paycheck feature allows you access to your direct deposit funds up to two days before payday.
Easy access and cash deposits allowed
With a network of over 55,000 fee-free ATMs in the Allpoint Network, members have easy access to their funds. To deposit cash, you can visit a retail location with GreenDot services, though SoFi savings states that they may establish limits on the dollar amount or number of checks and mobile deposits you make to your account. There are, however, no limits on savings withdrawals or transfers between accounts. You can rest assured that your deposits are FDIC insured. SoFi also offers you the ability to freeze your debit card on-the-go and enable two-factor authentication to keep account data secure.
Users are pleased with the app
An online bank must have a strong app to assist members with transactions. SoFi offers its highly-rated app for iOS and Android users. In the Apple App Store, the app rates 4.8 out of 5 stars, while Google Play users have rated it 4.1 stars. One positive review notes, "It's secure, it has a smooth and easy interface, it's fast and reliable, it has 24/7 tech support ready to assist, it has countless perks and offers." Aside from helping with banking, the app may also be used for investing and trading stocks.
Reviews are mostly positive
The winner of awards from Investor, NerdWallet, and MoneyRates, SoFi is not accredited by the BBB but it has an "A+" rating from them. Some negative reviews claim loss of access to their money in their SoFi accounts. While the reviews on BBB are predominantly negative, with an average of 1.2 stars out of 5, Trustpilot reviewers rate them much more favorably, averaging 4.3 stars out of 5. Positive reviewers are pleased with the high APY offered, among other benefits.
Best overall in online savings
In the short time it has been around, SoFi has proven itself as a neobank which meets the needs of its members by allowing for cash deposits, providing perks, and offering a reliable app, all while providing a high APY for your savings. We rank it as your best option for online savings accounts.
Great
Since 2022, CIT Bank has been an online-only division of First Citizens Bank, the largest family-controlled bank in the United States, which was founded in 1898. The goal of CIT Bank is to provide a secure and convenient banking platform enabling members to achieve their financial goals. Opening an account with CIT Bank is "easy and fast" and will require your Social Security number, driver's license or state ID, a check or information to complete an electronic fund transfer to fund the account, and information for joint account holders or beneficiaries.
Virtually no fees, minimum opening deposit
CIT Bank does not charge account opening or maintenance fees. There is, however, a $10 outgoing wire transfer fee for accounts with balances below $25,000. A minimum opening balance is required ($100), though some accounts do not require you to maintain a minimum balance.
Variety of options and APYs to build savings
There are four savings account options at CIT Bank, all of which require that minimum opening deposit of $100 we mentioned. Platinum Savings is for those who plan to maintain a $5,000 or higher balance in the account; a very high APY (10 times the national savings average) is offered in exchange. Savings Connect has no minimum balance to earn nine times the national savings average APY. CIT Bank also offers a Money Market account which allows you to earn more than triple the national average in APY while still having quick and easy access to your funds. Finally, Savings Builder is an account to help you establish a consistent savings habit while rewarding you with increasingly higher interest rates as you save, but it limits you to six transfers or withdrawals per statement cycle. The Platinum Savings, Savings Connect, and Savings Builder offer daily compounding interest. Additionally, CIT offers CDs in six-month to five-year terms. The best APY at the time of our review was on a 13-month CD at just under 9 times the national savings average.
Custodial and trust accounts permitted
CIT Bank not only offers personal accounts, but it also permits custodial and trust accounts. Custodial accounts are run by an adult for a minor to provide savings for anyone under age 21, up to age 25; part of the earnings may be free of federal taxes. A savings account under an established revocable trust protects assets for your beneficiaries. If you require one of those options for your savings, this may be the place for you.
Funding with cash not permitted
CIT Bank's savings accounts are funded by electronic fund transfer, check, or wire (no cash deposits), and your funds are FDIC insured.
Easy-to-use app
In this digital age, it's essential to have an app on your phone to help with your online banking. CIT Bank offers its app for both iOS and Android. Users in the Apple App Store rate it 4.8 out of 5 stars, mentioning the functionality and ease of use as two reasons for the high ranking. Similarly, Google Play rates it at 4.7 stars out of 5.
Experts like it more than customers do
While CIT Bank has good marks and ratings from those in the financial industry, customer ratings are strangely below average. Forbes recognized parent bank First Citizens as one of the most trusted companies in America and Bankrate calls it a "great choice" for above-average yields at an online-only bank. The bank is not accredited by the BBB but has earned an "A-" rating. Complaints regarding the renewal of CDs without notification are mentioned. Reviews on Trustpilot rank the company 1.8 out of 5 stars. Reviewers complain about customer service ineptitude and inaccessible funds. Positive reviewers comment on the speed of money transfers and high interest rates.
A great choice for high-interest online banking, despite some complaints
While CIT Bank offers some of the highest APYs we reviewed, it does not have consistent customer ratings. It is, however, the best option if you want an online savings trust or custodial account. And, if your main criterion for a good online savings account is high interest rates, you won't want to skip over CIT Bank.
Very Good
If you watch any TV, you have no doubt heard the slogan, "What's in your wallet?" on advertisements for Capital One. The company has grown from a start-up in 1994 to one of the 10 largest banks in America. They say that customers are able to open a savings account in just five minutes. You will need your name, date of birth, mailing address, email address, phone number, employment information, annual income, Social Security number, and citizenship information to apply for an online savings account.
Minimal fees charged
Though not a completely online-bank, Capital One has chosen to charge no monthly or maintenance fees and requires no minimum opening deposit or balance amount. While there are no overdraft fees, outgoing domestic wire transfer fees cost $30.
Variety of account options, including a kids' account
Capital One's 360 Performance Savings account allows you to save money and earn with a fixed high-yield savings rate. Although not the highest we've seen, Capital One's APY for this account is competitive and around nine times the national average. Another savings option is their 360 CD, which does not have a minimum amount to open and interest is accrued daily and compounded and credited to the CD monthly. Terms are available from six months to five years, with the highest APY offered for the 12-month CD, at just under 10 times the national savings average. If you have young ones who you'd like to get into the savings habit, a kids' savings account is also offered at Capital One with a higher than average APY. The account features the ability to schedule regular automatic savings deposits and can be opened upon the birth of your child. This is one of the few accounts for minors we have evaluated, and we like having the option to schedule regular deposits into the account. With any Capital One account, your funds have fraud protection measures which include secure login, real-time alerts, and card lock/unlock through the app. Plus, Capital One deposits are FDIC insured.
Network of options for depositing or obtaining cash
Cash may be deposited into Capital One's online savings accounts through the extensive system of fee-free ATMs in the Allpoint network. Retail locations such as Walgreens and CVS also provide a place to add cash to your account. Withdrawing money from the savings account, however, cannot be done at an ATM. Capital One requires you to open a connected checking account to use an ATM for withdrawals. Don't worry, though. You can get your funds via online transfers or at a branch near you.
Locations throughout the United States
For those who prefer online savings accounts with access to in-person options, the bank offers Capital One Cafes and bank branches around the United States. The 55+ cafes located across the nation feature food and beverages (drinks are half-off for cardholders), workspaces with free Wi-Fi (book a private one or a community room), ATMs, and account ambassadors to help service or open an account. In addition, Capital One is committed to helping educate its members by hosting financial events and workshops at its cafe locations. There are approximately 280 branch locations throughout the United States, so check the app or website to find one near you.
Awesome app with great features
Though Capital One has branches, the online options provided are designed to make your account easy to manage. The app, available for both iOS and Android, boasts one of the highest ratings we encountered. On the Apple Play Store, it's earned 4.9 out of 5 stars from users, and 4.5 out of 5 on Google Play. Reviews say it is easy to use, provides reminders, permits you to check credit score, and quickly freeze a lost card. Eno is the AI assistant in the app which can be used for customer service, account notifications (even smartwatch notifications), and managing your accounts.
Mixed reviews
Capital One is accredited by the BBB and has earned an "A+" rating from them. On the other hand, Trustpilot users have given the bank 1.2 out of 5 stars, though many of the negative reviews focused on credit cards. Customer service complaints were the next most mentioned problem by reviewers. However, NerdWallet ranks Capital One as one of the best online and in-person banking combinations available, and Forbes rates it 4.3 out of 5 stars.
Best of both worlds
While it is an online bank at heart, Capital One ranks highly for offering in-person banking in some areas, in addition to its extensive ATM network and cash deposit system through retail locations. When you combine the high APYs, multiple account options and a great app, Capital One is an online savings account we can strongly recommend, though we would prefer to see better customer service reviews.
Good
Founded in 2015, Varo was the first online-only institution with a national bank charter. It boasts that customers can "sign up in less than two minutes" for a free online savings account via the app. Accounts on Varo are for citizens or permanent residents of the United States who are 18 or older. You will need identity verification, such as a valid driver's license, state ID, passport, or military ID, social security number, physical mailing address, and a photo of yourself to open an account via the app.
Seriously, no fees
The main draw for many customers to Varo is that it charges no fees of any kind to hold your money, and no minimum balance or deposit is required. There are no overdraft fees charged either. Varo notes that the only fees it charges are "optional" ones, such as $3.50 for out-of-network or international ATMs, $4.95 for retail cash deposits at non-CVS locations, and $2.50 for OTC cash withdrawals.
Highest APY for a limited balance, savings tools offered
Varo offers two completely free accounts - the high-yield savings account and the online bank account - both of which work together for its members. First, Varo offers a very high APY (almost twelve times the national average) for its savings for balances up to $5,000 and a rate five times the national average on everything above that. To qualify for the highest rate, you must receive direct deposits totaling $1,000 or more and end the month with positive balances in both savings and online bank accounts. This account features two automatic savings tools (if you need some help putting money away for a rainy day). The first is Save Your Pay: an automatic transfer you set up to send a percentage of your deposit into the savings account. Second is Save Your Change: you can set it up to automatically round up eligible purchases to the nearest dollar and deposit it into your online savings account. Then, the online bank account (their version of a checking account) is the other free account. In order to get the high APY on the savings, you also need this account. Features of this account include early direct deposit, up to two days early, and access to better savings rates with direct deposit. However, joint accounts and business accounts are not available at Varo.
Need funds?
Varo offers quick small loans because "life happens." Called Varo Advance, the small loans are granted upon approval, up to $250. These are same-day advances offered for an affordable fee without interest. To borrow $20, you pay $1.60. There is a $4 fee to borrow $50, and up to $20 to borrow $250. When approved, the money will be put in the Varo account immediately and you have 30 days to repay it. Members may eventually be approved for up to $500 advances at a $40 fee.
Cash deposits through Green Dot Network
You can deposit cash at CVS locations for no fee, up to $500 per transaction, through the Green Dot Network. Varo features over 40,000 fee-free ATMs in the United States through the Allpoint network for its members to withdraw cash. Checks may be deposited via the app. Out-of-network transactions will incur a fee. Varo funds are FDIC insured.
Concerns about Android app
Varo is online only and therefore requires an excellent app to permit customers to do their banking. Named Innovated App by The Financial Brand, users on the Apple Store rate it 4.9 out of 5 stars, and Google Play has it at 4.7 out of 5 stars. However, multiple recent reviews have mentioned trouble getting the app to open on Android. The high ratings make us hopeful that their developers will rectify the situation quickly, as being an online-only bank it is essential for users to access their account information via the app.
Customers are divided on this one
Varo is a BBB accredited business, rated with an "A-". It has 2.89 out of 5 stars on BBB, though, with members complaining of accounts closed without warning, trouble with merchant disputes, and difficulty speaking to live customer service agents. Trustpilot reviews rank Varo 3.9 out of 5 stars, though actual reviews are mixed. Some simply say they love the bank without much reason why, while others complain about customer service, merchant disputes, and account limitations.
Recommended... with reservations
We like the high APY Varo offers (highest on our list), but we are concerned about customer service complaints and the issues with the Android app. We recommend Varo for its great savings tools, the ability to deposit cash, and highly-rated app (prior to the recent issues) but only if you want to have the highest APY available. If you want a top-performing bank behind your online savings account, we'd recommend looking at Varo's higher-ranked rivals first.
Fair
Axos Bank originated under the name Bank of the Internet USA when it opened its digital platform in 2000 (it became Axos in 2018). The digital bank launched on Independence Day to symbolize "independence from traditional banking constraints" by offering its customers 24/7 access to their funds.
Absolutely no fees
A true neobank, Axos accounts have no monthly maintenance fees, no overdraft fees, and account opening fees. There is no minimum balance for its Summit Savings account.
High APY with conditions
Summit Savings at Axos earns up to six and a half times the national average APY and offers an ATM card. Axos ONE is a savings and checking bundle. The savings earns up to seven times the national average APY and includes interest-bearing checking. To receive a boosted APY, this account requires you receive at least $1,500 in monthly direct deposits and maintain an average daily balance of more than $1,500, or receive at least $5,000 in total monthly deposits with an average daily balance of more than $5,000. The direct deposit features Early Payday which gives you access to your paycheck up to two days early.
Cash deposits possible, "expanded" insurance on your large accounts
Deposit checks to your Axos account through the app or free incoming wires. Cash deposits are accepted via Green Dot Network: retailers like 7-Eleven and Walmart can add the cash to your debit card at checkout, but the retailer may charge a fee. Axos also features a network of over 95,000 fee-free ATMs which may accept cash deposits (check the ATM listing online before you go to make sure it is equipped for that). In addition to FDIC insurance on your deposits, Axos offers "expanded coverage" for large deposits using InsureGuard+ Savings.
Unreliable and glitchy app
Since Axos is an online-only bank, the app needs to be excellent for its users. On the Apple Store, it is rated 4.7 out of 5, while Google Play users rank it 4.5 out of 5. But, more recent reviewers mention it is "unreliable," freezes or crashes often, and "super slow." Trustpilot users consistently complained about the app's lack of functionality and number of glitches encountered.
Low complaints to BBB but negative reviews on other platforms
Axos is BBB accredited and has earned an "A+" rating. It is worth noting that the amount of complaints received is very low over the past few years, though reviews on the BBB give the bank 1.07 out of 5 stars. Reviewers mention difficulty contacting customer service and the level of service received, as well as having funds frozen. Trustpilot reviewers have rated Axos 3.4 out of 5 stars. Negative reviewers cite website problems (a big no-no for online only institutions), long holds to access deposited money, and trouble making large purchases. Positive reviewers cite the high APY offered, security offered, and positive overall banking experience.
Not the best option available
While you may be lured by Axos' high APYs and "expanded" coverage on high deposits, we recommend looking elsewhere due to customer complaints about the online banking tools, which are essential to managing an online-only account. You've got lots of options, and Axos just isn't competitive enough to rank high on our list.
Subpar
Founded by Texas Capital Bank, Bask Bank launched as an online-only savings bank in 2020. The company boasts that the process of opening an account takes 15 minutes or less. To open a savings account, users must be 18 and have a Social Security number, cell phone number, unique email address, and physical address in the United States. Photo identification may be required, and applying for an account has no effect on credit scores.
Practically no fees
Bask Bank charges no monthly fees or minimum balance requirement for its savings accounts, and there is no overdraft fee. However, the institution does charge $20 fees for domestic and international wires.
Account options include travel miles
There are two main ways to save at Bask. First, Interest Savings offers a high APY, more than ten times the national average. Second, if you travel a lot, the Bask Mileage Savings Account may be the one you're looking for. It rewards those who put money into the account with American Airlines AAdvantage miles. Earn 2 miles for every $1 saved annually. The mileage may be redeemed through AAdvantage for flights, upgrades, priority boarding, free checked bags, and other perks. In addition, the bank may run bonus miles promotions on occasion, giving you more just for opening the account with a certain balance. If this is of interest to you, check the site for active offers.
Options beyond basic savings accounts
If you have a large sum of money that you're willing to allow to sit untouched, Bask Bank CDs offer high APYs in varying term lengths, beginning with 3 and going up to 24 months. These products - which require a $1,000 minimum deposit - allow you to choose a term and rate to get your money to work for you. The best APY is offered for the 3-month term (over ten times the national savings average) and slowly decreases as the term length does. A new product offered is the Bask Interest Checking Account, which clients may find helpful since a debit card can be ordered for this account.
No cash deposits, limited transactions
Since there is no physical location for Bask Bank, you have several options to put funds into your account. You can transfer from a Bask account or another bank account, wire funds, or deposit a check using your mobile device and the Bask app. Withdrawal of money is available at any time from the savings accounts, but Bask has limits for its online transfers. The amount varies - based on account activity - from $50,000 to $150,000 per transaction and $100,000 to $250,000 per day. Accounts are limited to six to 12 transfers per month. Since the savings account does not have ATM access, depositing cash is not possible. All deposits are FDIC insured.
Improving on the app
If a bank is going to be online only, it must have a great app. Bask Bank Mobile offers its clients apps for both iOS and Android users. The Apple App Store lists the app at 4.7 stars, which is a marked improvement from its earlier editions. Reviewers note that while it's a basic bank app without a lot of extras, it does what it needs to do, including showing the current interest rate. Similarly, on Google Play, the app is rated 4.6 out of 5. We are pleased with these improvements to such a necessary component of online savings accounts.
Mixed reviews
Bask Bank has earned awards from Go Banking Rates, CNBC Select, and U.S. News & World Report for its online banking options and high-yield rates. On the other hand, Bask Bank is not accredited by the BBB and has a "B" rating due to complaints filed against the business. Complaints warn against inept and unreachable customer service, being locked out of an account and unable to access funds, and "invasive" security procedures to open accounts. Also, Trustpilot ranks the bank at 2.8 out of 5 stars. Negative reviews complain about the customer service. Positive reviews mention that they are more concerned about the good rates than the "frills." Others note good customer service and accessibility and a high APY. One reviewer says he's been a customer for years and says no other banks can meet their high APYs. The simplicity of the app was also mentioned.
Travelers option
If you travel and want to earn mileage, Bask Bank offers an option for you. If that is not what you need, we suggest looking at other more user-friendly banks - because there's really nothing else to make this online-only financial institution stand out when you consider its more-reliable rivals in our evaluation.
Subpar
Citizens is an online-only bank, backed by Citizens Bank, N.A., which has almost 200 years in financial business, tracing its roots back to High Street Bank in 1828. Citizens Access launched as the digital bank in 2018. The bank says you can open an account online "in under five minutes" for US citizens or resident aliens age 18 or older.
Absolutely no fees here
With Citizens Access, there are no account opening or service fees or hidden costs. While the savings accounts only require a penny to open, there is a minimum for CD opening. We did not see any account minimum balance requirements.
Very high APYs, offers joint and trust accounts
Both Citizens Access high-yield online savings account and Citizens Access Savings offer an APY nine times the national savings rate. Interest is compounded daily and paid monthly with these accounts. The Access Savings account offers direct deposit and recurring transfers as well. Citizens Access offers CDs, but a minimum deposit of $5,000 is required to open it. Terms range from one to five years in length. Interest is calculated based on your daily balance and compounded daily, paid monthly. The best APY offered is for a 1-year term at just under nine times the national savings average. Joint accounts, trust accounts, and "pay on death" accounts with a designated beneficiary are all available at Citizens, though accounts are opened first as individual accounts. Business accounts are not available.
Getting your money isn't easy
Funding an account can occur via online funds transfer from another US financial institution or you can deposit a check through the app or via mail. Cash deposits are not permitted. There are two options offered for accessing your money since the bank does not offer branches. First, link the account with an account at another financial institution and transfer it to that account. Second, you can request a check in the mail. ATM cards, debit cards, and checks are not part of the savings accounts at Citizens Bank. All deposits are FDIC insured, and Citizens provides fraud monitoring and alerts.
Clunky app
An online-only bank requires an amazing app for its members, and Citizens offers an app for both iOS and Android. On both Apple Store and Google Play the app has earned 4.8 out of 5 stars. However, negative reviews across multiple sites mention the app is "clunky" and has issues with malfunctioning and freezing. Though there have been positive reviews in the past, ratings fluctuate and leave us questioning the usefulness of Citizens' app.
Reviews are not good at all
Citizens is accredited by the BBB and has an "A" rating. It should be noted that the BBB mentions government action against the business with its rating (settlement reached in 2023 with Consumer Financial Protection Bureau regarding credit card disputes). Reviewers on the BBB give it 1 out of 5 stars, complaining about incompetent customer service, though most reviews are about local branches of the parent bank and mortgages. The ratings on Trustpilot are similarly low with 1.2 out of 5 stars. Customer service woes and online banking troubles are mentioned and leave us hesitant to recommend Citizens as an option for savings accounts .
Look elsewhere
While Citizens provides a great APY, reviewers hate the app and it's not convenient to get your money when you need it. Unless you need a joint or trust account with a high APY, we suggest looking somewhere else.
Weak
Ally Bank traces its roots back to 1919 when it was GMAC, a division of GM which helped finance automobiles. It transformed into Ally in 2009. It is a strictly online-only bank. To open an account "in minutes," you just need your name, address, and Social Security number.
Almost no fees charged
Ally charges no monthly maintenance fees or overdraft fees, though outgoing domestic wire transfers incur a $20 fee. The accounts have no minimum balance requirements.
Confusion over APY on savings account, limited transactions
Ally Bank offers one savings account which compounds interest daily. Their website mentions that there are three tiers (up to $5,000, $5,001-$24,999, and over $25,000). which earn varying APYs, though it does not disclose how much each tier earns. Instead, it simply says it has an APY that is on all balance tiers and "higher balances may earn an even higher rate." We found this wording confusing, though the APY mentioned is more than five times the national average. The savings account has a limit of 10 withdrawals and transfers per statement cycle, which may include online transfers, overdraft transfers, checks, and debit card purchases. Ally does not charge a fee for going over this limit, but the bank may close your account if you regularly exceed the limit.
Money market options available
Money market accounts are another option at Ally. These give a competitive rate (same as the savings account) but offer more flexibility than the basic savings accounts which limit the number of transfers or withdrawals per cycle. Users may make free unlimited ATM withdrawals via their network of 75,000 Allpoint and MoneyPass ATMs. Ally says it will reimburse account holders up to $10 per statement cycle for fees charged nationwide at other ATMs. Keep in mind, money market accounts at Ally are still designed for savings, imposing a limit on the number of withdrawals not at ATMs, just as their traditional savings account does. While these accounts may be opened in the name of a trust, they do not have the same savings tools as the savings account offers.
Want to save with CDs?
CDs are also available in high-yield, raise-your-rate, and no penalty options. First, the high-yield CD may range in term from three months to five years. The APY ranges based on the term selected, with the highest rate offered for a 6-month CD at nearly ten times the national average savings rate. These accounts do not have a minimum deposit to open or earn the APY, but they do have an early withdrawal penalty. Another option is the raise-your-rate CD, which is for a term of either two or four years. It starts at an APY of eight times the national savings average with the opportunity to increase the rate if the bank raises its rate for CDs at the same term as yours. Interest is compounded daily but early withdrawal will incur penalties. Finally, there is a no-penalty CD which has an APY similar to the "raise-your-rate" CD. It is only offered for an 11-month term, but it compounds your interest daily and does not penalize you anytime after the first six days of funding the CD.
Special savings options
Ally offers a savings tool called "buckets" which allows you to dedicate part of your savings account to whatever you want, such as home improvements, a vacation, or car repairs, up to 30 of them. These buckets still earn interest in the same way as the rest of the account balance. While buckets can help you get organized, Ally also has what it calls "boosters" to increase your savings. First, recurring transfers may be put in place to move over a set amount of money into savings as you desire. Then, round ups are a result of their technology tracking your spending accounts to look for transactions which can be rounded up to the nearest dollar and then transferred to savings once you reach $5. Additionally, Surprise Savings uses analytics to compare your spending in a linked checking account and finds what it considers "safe-to-save" money and transfers it to your savings account. Ally Bank says these tools have helped their members save an average of two times what they would have saved without them.
No cash deposits
Cash deposits are not permitted at this bank. Ally accepts remote check deposits via app, online transfers and direct deposit, plus wire transfers and mail. To access your funds, you can utilize online funds transfers, outgoing wire transfers, telephone transfers, and check requests. Funds are FDIC insured.
App troubles
Online-only banks must have an excellent app for their members to use, and Ally offers them for iOS and Android. The Apple Store ranks it at 4.7 out of 5 stars, while Google Play rates it 4.4 stars out of 5. Unsatisfied users mentioned bugs in the app which prevented them from having convenient access to their account, not offering the same options as the website provides, and difficulty electronically depositing checks.
Critics may love it, but users do not
Ally has received numerous awards from financial sites like Go Banking Rates, NerdWallet, and Bankrate. Wall Street Journal named Ally as having the "best perks" for savings accounts. Ally is not accredited by the BBB but it has an "A+" rating. However, reviews on the BBB are overwhelmingly negative with a 1.06 stars out of 5. Complaints mention app issues and difficulty reaching customer service, though most seem to be regarding the company's loans and credit cards instead of the online savings accounts. Trustpilot reviewers have similarly rated the bank with an average of just 1.4 out of 5 stars, with customer service complaints and issues depositing checks via the app frequently contributing to the poor rating.
Not recommended
Ally mentions tiered increased APYs but they do not appear anywhere on their site, leaving them at the low end of the bank APYs we saw. Combined with the numerous customer complaints, Ally's reputation has us recommending that you search elsewhere for an online savings account.
Poor
Barclays traces its start back to 1690 in London and considers itself a leader in innovation, including introducing the world's first ATM. Its online bank in America calls Delaware home. To open an online account, you will need your Social Security number, external bank routing and account number from another bank (to fund the new Barclays account).
No fees here
There is no minimum balance to open an account at Barclays, which does not charge any monthly maintenance fees. There is no limit to the number of withdrawals and transfers you can make from your savings account. While there is no minimum balance, some accounts have an APY dependent on the amount in the account.
Very high APYs
Barclays offers three products for saving with no minimum deposit to open: tiered savings, online savings, and online CDs. Tiered savings accounts feature an APY which fluctuates with your daily balance. The high APY changes with your balance, beginning at ten times the national savings average. The levels of savings tiers increase from $10,000 at the low end to over $250,000 to earn the highest tier, which is ten-and-a-half times the national average. Online savings accounts maintain the same high APY (just over nine times the national average) no matter your account balance. CDs are offered in terms from six months to five years, with the highest APY earned at the 12-month level, being nearly ten times the national savings average. Interest compounds daily, and deposits are FDIC insured. All online accounts can be single or joint ownership.
Hard-to-find benefits and information
The Barclays website is not very forthcoming about how you can access the funds in your account. Some digging around found out that you need to fund it with money from an external US bank account. To add funds to the account, you can do external transfers, mail a check, or use the app to remotely deposit funds (within their daily amount maximums). Similarly, funds can be withdrawn via transferring to an external account or having a check mailed to you. Direct deposit is mentioned as one method of adding to your savings, and while it says there are "tools to help you save," the website does not elaborate. We would really like to see a more user-friendly page touting the benefits Barclays offers in addition to its high APYs.
Glitches in the app
Online banking at Barclays is done through the app or web browser. The Barclays US app has 4.8 out of 5 stars on the Apple Store and 4.7 out of 5 on Google Play. The ratings are mostly positive, but the reviewers comment on troubles using biometrics for logging in and app glitches in general, labeling the app as "clunky."
Mixed reviews
Barclays Bank Delaware is a BBB accredited business with an "A+" rating. Surprisingly, though, reviewers rate the bank at 1.06 out of 5 stars, citing customer service frustrations and trouble with their credit card fraud department, not to mention issues with the online savings accounts. One complaint mentioned being locked out of his account without access to his funds in a timely manner. Trustpilot reviewers rate Barclays slightly higher at 2 out of 5 stars, with a very limited number of ratings. Negative reviews mention hard-to-understand customer service representatives who behave unprofessionally.
Not a great online option
Though Barclays offers high APYs, that appears to be its only benefit as an online savings account. If that's all you seek, then this could be a place for you. But, we strongly suggest checking out the other more user-friendly options on our list, because you'll find multiple financial institutions with more to offer than Barclays.
Poor
JPMorgan Chase & Co. has been a name in traditional banking for over 200 years. The company traces its earliest roots to 1799 when The Bank of the Manhattan Company opened as the second commercial bank in New York City. To open an online account, you will need your Social Security number and driver's license or state ID. Just be aware that only individual accounts are able to be opened online.
Accounts need to meet conditions to waive fees
Unlike most of the banks on our list, customers have to meet conditions at Chase to have fees on their online savings accounts waived. As a primarily brick-and-mortar financial institution, this does not come as a surprise. The fees on Chase savings accounts vary based on the type of account selected. There is a $5 monthly service fee, unless one of the following conditions is met: daily minimum of $300 in the account, $25 or more in Autosave repeating automatic transfer from Chase checking, Chase College Checking linked account, under 18 account owner, or linked Chase Premier Plus Checking or other qualified account. The Chase Premier Savings account has a monthly service fee of $25 or one of the following: a $15,000 daily minimum balance or linked to Chase Premier Plus Checking or Chase Sapphire Checking. Chase notes "other miscellaneous fees apply" (and we don't love that).
APYs listed aren't high at all
Chase's online account options offer different levels of interest; however, their website only lists one actual APY for savings accounts. The Chase Savings account has a small interest rate, slightly above the national average, and interest is compounded and credited monthly. Chase Premier Savings offers a higher interest rate when linked to the specified checking accounts and you make at least five customer-initiated transactions in a month from that linked account. However, they say "higher balances may earn a better interest rate" but they don't share the rate anywhere that we could find. Chase Private Client Savings is offered for those who have a similarly-named checking account. This account has a $0 monthly service fee and no fees at ATMs worldwide but the minimum balance of the account must be $150,000 each day. To help you save even more, Autosave is a feature which allows you to connect a Chase savings account to put a predetermined amount into your savings at regular intervals (making it easier to put aside funds). CDs are available for those who have a qualified linked Chase checking account. Chase offers terms from one month to ten years, with $1,000 as the minimum deposit required to open a CD. To receive the highest APY, choose the four-month CD with $100,000 minimum deposit.
In-person options abound
With Chase, you have access to 15,000 ATMs and more than 4,700 branch locations for cash and check deposits, as well as using the app to deposit checks. Deposits at Chase are FDIC insured.
App rated well
The Chase Mobile app is available on both iOS and Android platforms. The Apple Store rates it 4.8 out of 5 stars, with Google Play ranking it at 4.4 out of 5. One user review said it allows him to track spending and trade stocks, while another says it's tricky to navigate the menu.
Customers complain
JP Morgan Chase & Co. is not a BBB accredited business, but it has an "A-" rating. However, the number of complaints and bad reviews on Trustpilot have Chase earning an average of just 1.3 out of 5 stars. Customer service concerns, account closures, and difficulty accessing funds were all mentioned by negative reviews.
Look elsewhere
Chase may have name recognition, but it cannot compete with competitors' online savings accounts, especially when you consider the negative reviews and nickel-and-dime fees that many rivals eliminate altogether. We'd say it's safe to conclude that almost any other bank's online savings accounts will be a better choice for your money.
Continued from above...
Your parents always told you to save for a rainy day. You work hard for your money and you want to get the most from your savings. While you could simply go to your local bank and keep the funds in a savings account there, you may have heard that there are online accounts which offer a much better return on your money.
First, keep in mind that a savings account differs from other accounts you maintain because it is meant to remain untouched until you need it for a specific purpose. It differs from a checking account in that you are not usually removing funds from it on a daily or even weekly basis. A checking account - whether or not you actually still use paper checks - features a debit card and can be used for online bill payment. You are typically not limited to the number of transactions you can conduct in a month and you do not earn money on the funds in your account.
When comparing online savings accounts, you will immediately notice that accessibility of funds is a key difference. Some of the banks are structured in a way that allows you to use the money for monthly expenditures, while others greatly discourage you from touching the funds and reward you with very high APYs as a result. APY means annual percentage yield, and it refers to the total amount of interest earned in the course of a year. Pretty much, if you want to have the chance to earn the most on your money, you'll need to leave it alone.
Whether you're relatively new to the idea of banking online or you "went digital" a long time ago, there are plenty of options to help grow your savings at a significantly higher APY than you may find offered by your hometown bank. Called neobanks, these financial institutions are typically online-only banks. The lack of a physical location allows them to drastically cut their costs and pass along the savings to their members in the form of higher interest rates and no-fee accounts.
Neobanks aim to streamline the banking process and have become a key part of today's financial world as a result of their ease of use and lower fees (or none at all). The technology component offers a streamlined user experience, which younger consumers especially find appealing. Some of the larger financial institutions also offer online-only accounts while maintaining branches for you to visit in person.
If you're looking for an online savings account to boost your bottom line, here are some factors to take into consideration as you compare online offerings:
We at Top Consumer Reviews have provided you with the information you need to make an informed decision before you put your money into an online savings account. Check out our list of some of the most popular online savings accounts available today, evaluated and ranked to help you make the best decision for your financial well-being.
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