Our reviewers evaluate products and services based on unbiased research. Top Consumer Reviews may earn money when you click on a link. Learn more about our process.
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.
Monday, October 2nd
SoFi is a fully online banking platform that opened in 2011 and attained a banking license at the beginning of 2022. SoFi provides a joint checking and savings account and you don't have to pay anything to open the account.
Wide range of benefits
This service offers a range of benefits that include no account fees, no overdraft fees, no minimum balance fees, and a network of over 55,000 fee-free ATMs within the Allpoint Network. Customers with active direct deposit can earn up to 4.20% APY on their savings and Vaults balances, and 1.20% APY on their checking balances. Customers can also receive their paycheck up to two days early with direct deposit. Furthermore, customers can get up to 15% cash back at local establishments when using their SoFi debit card, and deposits are insured up to $2M through a network of participating banks.
One combination account with great APYs
The most unique feature of SoFi is the double account. Instead of signing up for a single savings or checking account, banking with SoFi gives you access to both account types immediately. Your balance in the checking account will earn an APY of 1.20% while the savings account will earn an APY of 4.20%. However, this high APY depends on the customer establishing direct deposit with SoFi. If you choose not to, you will receive an APY of 1.20% for both balances.
Several bonuses included
In addition to the APY benefits, the SoFi combination account provides several other bonuses:
Special deals for students
On top of their regular bank accounts, SoFi also offers a Student Bank Account. All you need to do to qualify for a student account is to be over 18 and sign up using a .edu email address. If the student adds at least $10 to the account within 5 days of registration, they can receive a $10 bonus from SoFI. Just like with the regular SoFi combo account, there are no account fees or minimum balance requirements, and when you set up direct deposit, you can earn 4.20% APY on your savings balance and 1.20% APY on your checking balance.
Dedicated to customers
SoFi is committed to providing excellent customer service through various channels. You can contact the customer service team through phone calls or email support, which is available 24/7. Additionally, the company has a customer support chatbot that can answer basic questions and guide you through the website.
Benefits beyond just financial
SoFi offers a range of benefits to its members, grouped into three categories inducing access to free financial planning services, referral bonuses, and discounted rates - as well as personalized career advice and a unique Unemployment Protection Program, providing members with support during job loss or career transition. These benefits are designed to help members not only manage their finances but also build a strong sense of community and advance their careers. With these customer-focused initiatives and full security with all banking at SoFi insured by the FDIC, it's clear that SoFi backs up its claims to support its customer community.
Great mobile experience
Unlike traditional banks, SoFi offers its services exclusively online. This means that you can manage your finances without visiting a physical bank branch. SoFi's website and mobile app are both designed to be user-friendly and easy to navigate. The mobile app has received high ratings from customers on both the Google Play Store and the Apple App Store. At Google Play the SoFi app has a strong rating of 4 out of 5 stars and at the Apple store, the app is rated an impressive 4.8 out of 5 stars total. Customers praised the ease of use of the SoFi app as well as noting that SoFi is one of the top platforms for investment trading. They also loved the way the savings "Vault" option works on the app where SoFi helps you organize your money to save for specific goals (and also earns the 4.20% APY).
Great customer reviews
The reviews for SoFi have skyrocketed in recent weeks. The star ratings for this service have risen from an average of 3 stars across customer review sites to an impressive 4.5-star average out of 5. With well over 5,000 reviews at just one third party site, it's exciting, to say the least. On top of that, SoFi has risen to an "A+" rating with the BBB. Across the board, viewers noted that signing up for SoFi banking was easy and quick. They love the high APYs and the options for refinancing, student loans, and other large loan options. Customers also loved the combo account approach and particularly appreciated earning interest in savings, checking, and Vaults with no minimums.
Best value in online savings
Looking at the features available, SoFi has proven to be an exceptional online banking platform. With its unique combination account and impressive APYs, SoFi stands as one of the best online banks to help customers build their savings and investments. With its customer-focused business model providing attractive benefits like financial planning services and personalized career advice, it's clear SoFi cares about its customers and their overall financial security.
Top rated online savings account
SoFi's mobile app is user-friendly and so is the bank itself. SoFi has established itself as a top-rated service in the banking industry. Whether you're a student or someone looking for a better way to manage your finances, SoFi is easily the top option for online savings accounts.
CiT Bank is a company owned by CiT Group, Inc which has been open for 114 years, but CiT Bank itself was founded in 2009. CiT Bank is an online service that offers four different savings accounts including the Platinum Savings, the Savings Connect, the Money Market, and the Savings Builder accounts. CiT requires $100 to open any of the four account types and the APYs range from .025% to 4.75% depending on the account you choose and the balance you maintain.
No regular fees with CiT Bank
The breakdown of the savings account options at CiT Bank is simple. Each has a few different features, and completely different options for your APY, although every account requires a minimum of $100 to open it. The individual options look like this:
CiT Bank's security gets high praise
One of the best features of CiT Bank is its safety and insurance policies. Especially for a fully online bank, the strong focus on the safety and security of their customers' money generates more confidence in CiT Bank. The bank is a member of the Federal Deposit Insurance Corporation (FDIC), which ensures that customers' checking accounts are protected for up to $250,000 per depositor, per account. Not only does CiT Bank offer federal insurance, but they have also been recognized for their excellent banking services by reputable sources such as GoBankingRates, Fintech, NerdWallet, and Bankrate.
Better on iOS than Android
As an online-only banking institution, it's no surprise that CiT Bank has an easy-access mobile app available for customers to manage their accounts. This app provides a variety of services including looking up transactions, transferring funds between CiT Bank accounts, and making mobile check deposits. Although the app is highly rated on the iOS platform with a 4.6 rating, it is important to note that the app has a slightly lower rating on Google Play, with a 3.3 average. As an Android user, you may want to consider this rating when deciding whether to use CiT Bank's mobile app. Despite this, CiT Bank remains committed to providing a smooth and user-friendly experience for all its customers, regardless of platform preferences.
High ratings from bank professionals but not from customers
Despite receiving lower customer ratings than those from financial review sites, CiT Bank has still managed to maintain a loyal customer base. However, customers have only rated CiT Bank as high as 2.1 stars on Trustpilot, which is the highest score it has across different review sites. On the other hand, this company does have an "A-" rating from the BBB and there are tons of positives from professional banking review sites such as Forbes or Bankrate. The customers who did enjoy using CiT Bank praised their customer service response time and helpfulness. For the low reviews, many customers were frustrated with the loan process, but none of the reviews specifically mentioned savings accounts.
High APYs and no fees
Overall, CiT Bank offers a range of savings accounts with high APYs and no regular fees, making it an attractive option for those looking to grow their savings. The bank prioritizes the safety and security of its customers' funds with the FDIC, and CiT Bank remains committed to providing a smooth and user-friendly experience for all customers. While the customer reviews are mixed, customers who enjoyed using CiT Bank appreciated their excellent customer service. With all things considered, CiT Bank is easily one of the top options in our review for your next savings account.
As the sixth largest commercial bank in the United States, Capital One is a big name in finance. On top of offering online services, Capital One has numerous branches and ATMs, making it easy to access any necessary services.
Friendly banking experience
Capital One offers a consumer-friendly banking experience without any monthly services fees or overdraft charges and guaranteed FDIC insurance. Capital One provides competitive savings rates in the market, with an interest rate of 3.75% APY and no minimum deposit. Additionally, the Capital One CD offers good rates compared to other banks and credit unions. It has no minimum balance required and offers penalty-free early withdrawals. The bank also offers a checking account that pays interest and a children's savings account option, which is a standout feature.
High APY options across the board
Getting started with saving at Capital One is easy. You can choose between three savings accounts: the 360 Performance Savings account, the 360 CDs account, and for the parents who want to start saving early, the Kids Savings Account. You can open a 360 Performance Savings account quickly and easily. It takes approximately 5 minutes to get started and start earning a fixed APY of 3.75% no matter your account balance. As for the 360 CDs, there are three commitment options: 1 year, 2 years, and 5 years. The APYs for the CDs range from 4.10% to 4.30%, which is highly competitive for a bank with brick-and-mortar overheads. The highest APY can be earned on the 2-year commitment. Additionally, there is no minimum balance needed to open a 360 CDs account.
Saving for the future
If you've got some kiddos you want to start a savings account for, Capital One has you covered. Like the 360 Performance Savings, there are no fees associated with the Kids Savings Account. You can easily link the child accounts to your existing accounts and open multiple accounts to have savings for each child. The APY for the Kids Savings Account is a fixed 0.30%.
High-rated mobile experience
In terms of its mobile reputation, Capital One provides high-rated services. The Capital One mobile app is highly rated by both iOS and Android users. The app has a 4.9-star rating out of five on the Apple Store and an equally impressive 4.6-star rating on Google Play. Additionally, Capital One offers virtual assistance through Eno, Capital One's virtual assistant. Customers love the user interface with the Capital One app no matter what device they're on, which is fantastic for an online banking institution.
Physical branches available in some states
While many customers like online-only features, some still like to go into a physical branch to have their questions answered. Luckily, Capital One offers the best of both worlds. The bank has physical locations in select states called Capital One Cafes, which offer hybrid offices where customers can explore banking options, speak to a representative, and enjoy free Wi-Fi, beverages, and snacks. Or, if customers don't want to look for a brick-and-mortar location, they can contact Capital One's responsive customer service team online or on the phone anytime.
No overdraft fees
One of the standout features of Capital One is its overdraft fees policy. The bank does not charge any overdraft fees or non-sufficient funds fees, making it an excellent choice for customers who might be likely to overdraft. This policy sets Capital One apart from other banks that still charge overdraft fees, with some as high as $37 per overdraft.
Cash deposits available
Since branches aren't all over, withdrawals with Capital One are completed through ATMs in partner networks. Capital One works with both the Allpoint and MoneyPass networks. However, customers might need to know that these networks do not accept cash deposits. If you're worried about moving cash, you can still do that with Capital One. Instead of going to a bank branch, you can find a local CVS. While you do need a Capital One checking account to complete the transaction, customers can deposit up to $999 a day and up to 5 transactions a month by using the Capital One mobile app and giving cash to the CVS teller.
High ratings from pros
In terms of customer feedback and ratings, there's a lot of information out there on Capital One. The bank has a stellar "A+" rating and accreditation with the Better Business Bureau, and an average of 3.5-stars from customers. Additionally, the company is highly rated by banking specialists like Bankrate and Nerdwallet where Capital One has earned an average of 4.6 stars out of 5. Happy customers praise the options at Capital One (though usually with specific mention of their credit cards). And, customers are very happy with the high APY rates. While some other customers aren't as thrilled with the speed of transfers or the APR rates on credit cards, not many customers had complaints about the savings accounts.
Top major bank for savings
As one of the options for a major bank in this review, Capital One stands out. The APYs are competitive with some of the top options in this review, and Capital One is also a fantastic pick for those seeking a traditional "major" bank with no monthly service fees or overdraft charges, no minimum deposit required, and options for kids. On top of those positives, the bank's mobile app is highly rated, and the bank has high ratings from both customers and banking specialists, making Capital One the #1 choice among big-name banks for your next savings account.
Varo is a completely online banking company that has been open for 7 years. Accredited by the BBB with an "A" rating, this is one of the better-rated online-only banking initiatives in our review.
Only one savings account option - but it's a good one
There is only one savings account option with Varo, which is a high-yield savings account. There is no monthly fee or minimum balance required to open a Varo savings account. Customers can earn a high APY on their savings with Varo Bank. For balances up to $5,000, customers can qualify for a 5.00% APY, while they can earn a 3.00% APY on any balance above that amount. These rates are among the highest savings rates available in the country, making it easier for customers to achieve their financial goals.
Getting started is easy
Creating a savings account with Varo Bank is a positive step towards achieving short-term or long-term financial goals. The process of opening a Varo Savings Account is simple and can be done by downloading the app and answering a few quick questions to open a Varo Bank Account and an optional Savings Account. Customers can quickly receive an application decision and start adding money to their Savings Account. Their money is protected and accessible instantly, providing peace of mind to customers.
Automatic savings tools
With its automatic savings tools, Varo Bank makes it easy to save without any stress. Customers can contribute a little from their paycheck or spare change, and watch their money grow without any additional effort. Varo Bank's automatic savings tools, Save Your Change and Save Your Pay, make it easy for customers to grow their balance over time without any effort. Customers can practice smart ways to save without interrupting their daily life, ensuring that they achieve their financial goals without any added stress. Varo helps customers reach their goals in the background.
Safety net for emergencies
Safety and security are important to Varo. Customers' money is protected by the Federal Deposit Insurance Corporation (FDIC) up to $250,000. On top of that, Varo also promises to support customers who are in need without charging them extra fees for borrowing. Varo Advance allows users to lend themselves the required amount of money, which will be deposited immediately into their account. This service acts as a financial cushion that can help ease the burden when unexpected expenses arise. It's designed to provide quick and easy access to cash for individuals who need it the most. With this safety net, individuals can have peace of mind knowing they have access to cash in case of emergencies.
Cash advance fees
All cash advance fees are flat-rate, not percentage-based, so you won't be charged any extra. The advance costs include:
No travel fees with Varo
If you're a fan of travel, you're in luck with Varo. One of Varo's stand-out features is its exemption of foreign transaction fees for ATM withdrawals or debit card purchases. While you will need a Varo debit account alongside your savings to use this benefit, it's amazing for world travelers who often pay those fees when using their day-to-day credit or debit cards. With Varo, you will only be charged the currency difference and no additional fees for currency conversion.
Very successful overall with customers
Varo has an average rating of 3.5 stars out of 5 based on feedback from various review sites. The company has received accreditation from the BBB and currently holds an "A" rating. Reviews that have given a 5-star rating (around 80% of all reviews on Trustpilot) typically mention the impressive customer service Varo offers despite not having physical bank branches. Repeated reviews note that taking out loans or borrowing from Varo is a great experience and is the least stressful institution those reviewers used for borrowing. Others praised Varo for being "fast" or "accurate" especially in terms of payments and helping the customers manage finances.
A few issues to be aware of
On the other hand, Varo has received some negative feedback stating that customers have faced challenges when trying to transfer money between their savings and checking accounts. Additionally, some users have reported experiencing difficulties in getting through to customer service, while others believe that customer service representatives are unhelpful.
Top option for travelers
Overall, Varo Bank is a great online banking option for those looking to save money and reach their financial goals. With its high-yield savings account and easy-to-use automatic savings tools, customers can easily grow their balance without added stress. Varo also provides a safety net for emergencies with its Varo Advance service and promises to support customers in need without charging extra fees. The fact that the average rating was a little lower than some of the other top options in our review kept this bank from first or second place. However, considering the benefits, especially for travelers, Varo Bank is still worth checking out for your next savings account.
Chase, also known as JPMorgan Chase & Co., has been in business for almost 200 years as a brick-and-mortar bank. Chase offers everything you'd expect from a traditional bank, including savings and checking accounts, but they also offer fully online services. In terms of savings options, Chase offers three different account types: the Chase Saving account, the Chase Premier Savings account, and the Chase Certificates of Deposit account. While all of these options have monthly fees, you can easily waive the fees by completing qualifying actions through Chase.
3 options for increasing your savings
There are 3 different savings account types with this bank. All three have monthly fees, though these can be waived depending on a few factors including your daily balance in the account or whether or not you have any linked checking accounts at Chase. The APY for all of the accounts is compounded and credited monthly. Here are the details you'll need to know:
Linking and student accounts
One of the benefits of banking with Chase is the deals you get for connecting accounts. On top of getting increased APY or waving your fees on your savings for linking a Chase checking account, you also can accrue interest in a Chase checking account with those same linking benefits. On top of that, Chase also offers a special program to help students get started with their finances by offering accounts that have $0 in fees for students in college or those under 18.
Options for in-person banking
One thing customers may enjoy is the hybrid modality of Chase. Since this bank has online options as well as in-person branches, customers can choose how they want to do their banking. With over 400 branches and access to over 1600 ATMs, customers who prefer the personal touch with banking can rely on Chase to provide it for them.
Generally high marks from customers
Chase is a bank with a mixed reputation, but most customers are satisfied with their experience. The company has an "A+" rating from the BBB, and on one review site, Chase has earned a 66% 5-star rating with praise for the convenience and ease of use of Chase's mobile app, which appears to be a major selling point for customers. Additionally, many users appreciate the rewards and bonuses that come with using Chase credit cards.
Customer service issues
Positive keywords frequently associated with Chase reviews include "user-friendly," "competitive rates," and "good security." On the other hand, customers who didn't rate Chase as highly in their reviews struggled to get what they needed from customer service. For such a large banking institution, this is particularly disappointing. Some average banking customers also noted that the APYs were much lower at Chase than at some other banks.
Good price and family-friendly
As a well-known banking institution, Chase is a popular option to check out. It offers three different savings account types for different members. While all of these accounts have monthly fees, those can be waived by meeting certain criteria. The APYs for all accounts are compounded and credited monthly. However, while most customers are satisfied with their experience, some have expressed disappointment with customer service and lower APYs for standard savings compared to other banks. For these reasons, Chase is a mid-range savings account option, especially considering the higher interest rates (and lower-to-no fees) offered by the higher-ranked banks in our evaluation.
Axos has been a leader in online finance since 2000. The company guarantees unrestricted access to your funds and offers three savings account options: the High Yield Savings account, the High Yield Money Market, and the Certificate of Deposit (CD) account. The High Yield Savings has no minimums or fees, and you can earn up to 0.61% by banking with Axos. To open a High Yield Savings account you'll need to have a minimum balance of $250; for the High Yield Money Market and CD you'll need $1,000 to open the account.
APY is tiered depending on your funds
At Axos, there are several tiers of APY returns ranging from 0.15% 2.30%. This annual percentage yield changes depending on how much money is in your account by the end of the year and on which savings account you choose. For example, the high-yield savings account option offers APY percentages that start at 0.61% However, the percentages go down as you put more and more money into the account. The breakdown for the High Yield Savings account looks like this:
Business Savings available
For business owners, you're in luck. Axos also offers two savings accounts specifically for business owners. These include the Business Savings and Business Premium Savings accounts. The regular business account only requires $1,000 to open, though you do need to maintain a $2,500 minimum in the account each day to avoid fees. The premium account requires a minimum of $25,000 to open the account, but there are no fees or minimums required. Both accounts offer an APY of 0.20% no matter how much you have in the account.
One of the benefits of working with Axos is their "Tools" tab, which makes all their helpful finance tools easily available to customers in one place. These include the APY calculator, the Auto Refinance calculator, the Auto Loan calculator, and a download link for the mobile app. There is a range of other tools also, including but not limited to mortgage assistance, renter calculators, and college or retirement savings calculators. Customers will find anything they need to support their savings journey right here, which is incredibly helpful.
Axos, being an exclusively online banking institution, requires customers to access their funds via the company's website or mobile app. Fortunately, Axos offers a well-rated mobile app on both iOS and Android platforms with 4.7 out of 5 stars on the Apple App Store and 4.5 out of 5 stars on Google Play. The app allows you to deposit checks, pay bills, transfer funds, and track your transaction history with ease. Additionally, you can keep a watchful eye on your account balances without the hassle of visiting a physical branch. Whether you're an iOS or Android user, Axos has got you covered with their intuitive mobile app that simplifies your financial management.
Disappointing customer ratings
Despite the mobile app receiving high praise, the bank's overall reputation leaves much to be desired based on customer feedback on third party review sites. Axos has an average rating of 1.3 stars and lacks a significant number of 5-star reviews beyond the two app stores we mentioned. While Axos does have an "A+" rating and accreditation from the BBB, the low average from client reviews put a ding in that good reputation.
Many unhappy customers have reported difficulties accessing their accounts due to the multi-factor authentication system, which was intended to enhance security but seems to create more problems than solutions. Negative reviews repeatedly say that Axos is a "frustrating company" to work with. On the other hand, some of the positive reviews for Axos show that a few customers were satisfied with the security at Axos. They felt safe using Axos, because the company has been well-rated by GoBankingRates and Forbes.
Mid-tier option overall
Axos is a reputable online bank with high-yield savings account options for individuals and businesses. While their mobile app is highly rated, there have been mixed reviews about the bank's overall performance, with some customers experiencing difficulties or feeling unsupported by Axos overall. Despite these reviews, Axos does have some very positive articles on professional sites such as GoBankingRates and Forbes. This mixed bag of positive and negative reviews makes it a mid-tier option in our review, especially with interest rates that aren't all that competitive.
In business for over 150 years, Citizens Bank is a great hybrid option for online banking. With online and in-person options, customers can choose the method of banking that is most appealing to them. In terms of accounts, Citizens offers a Citizens Access Savings account and two options for online CDs: the Online CD and the CD Ladders. Additionally, the bank provides a savings goal calculator and the ability to compare different product offerings through its online banking platform.
Competitive APYs for all accounts
In terms of traditional savings accounts, the Citizens Access Savings is the only option for customers. Like many banks in this review, this savings account has no cost to open and no monthly fees. The APYs for the Access Savings account promise a fixed rate of 4.50%. For the CD accounts, there are two options. The Online CD provides options for two commitment lengths: either 1 year or 5 years with APYs that range from 3.45% to 5%. Additionally, customers can choose to receive monthly interest payments or reinvest them to earn more. For the CD Ladders account, customers can earn a high APY of up to 5% while also having flexible access to the funds in the account.
One of the benefits of banking with Citizens is its approach to security. Citizens ensures that their customers can bank with confidence and peace of mind. They take the security of their customer's personal information and funds seriously and have implemented various measures to keep them safe. The bank continuously monitors for fraudulent activity and provides 24/7 alerts to its customers. They also use SSL encryption to keep customers' private information secure, making sure that their sensitive data is kept private.
High ratings but conflicting comments
In terms of the online user interface, Citizens has a highly-rated mobile app to facilitate mobile payments and account tracking. The Citizens app has a high 4.7-star rating out of 5 on the Apple store as well as a similarly high 4.3-star out of 5 rating on the Google Play store. Customers like the ease of use of the mobile app and mobile deposits. However, it's important to note that some of the 5-star rated comments are also showing complaints about the apps being "buggy" or too complicated with two-factor authentication.
Education on site
One unique benefit of Citizens is their "Financial Education" portion of the website. If customers are curious about refinancing loans, homeownership, or improving savings, Citizens has a whole section of the website dedicated to teaching customers or even casual visitors more about some of the stickiest points in finance.
Low customer ratings in spite of response
In terms of customer satisfaction, Citizens has high ratings with the BBB with an "A+" rating for customer responses as well as accreditation. Unfortunately, beyond that, Citizens isn't very popular. Across different review sites, Citizens has only earned a 1.8-star average out of 5.
High negative customer feedback
Across the board, consumers don't have many positive things to say about Citizens. Customers complain about hidden fees, especially for overdrafts, that weren't obvious from the site when they first signed up. Clients also expressed concerns about the process of closing their accounts after getting too frustrated with Citizens to continue. There are almost no positive comments for Citizens, which is shocking, and with 92% negative feedback it's hard to recommend Citizens as a savings option at all.
Be careful before you open with Citizens
While Citizens Bank offers competitive APYs, top-level security measures, and a user-friendly mobile app, the conflicting comments and negative reviews from customers about the bank's customer service and hidden fees make it difficult to recommend them as a savings option. The high mobile app ratings are offset by the overwhelmingly negative feedback on other review sites. While it may be a viable option for some customers, it's important to carefully consider the negative feedback before deciding whether to bank with Citizens. Only the "A+" BBB rating and security measures keep this from being among the lowest options in our review of online savings accounts.
Ally has been in business since 2004 and is a frontrunner in online-only banking. They offer a range of savings options including a savings account, three types of CD accounts, and a Money Market account.
No monthly fees or minimum balance
One of the standout features of Ally is that there are no monthly maintenance fees or minimum balances required for any of their accounts. The bank provides an above-average interest rate on savings, with an interest rate of 3.75%. The interest is compounded daily, meaning customers can make more money on interest compared to accounts that compound monthly. Ally customers also have access to over 43,000 free ATMs via the Ally money market accounts.
APY for tiers is unexplained
In terms of options for savings at Ally, the bank offers a single option for a standard savings account. This account offers APYs of 3.75% compounded daily. There are no fees associated with this account. However, qualifying for the 3.75% APYs is dependent on the balance in your account at the end of the day. There are three APY tiers at Ally:
The APY for each account balance tier may either remain constant or change, depending on the account's daily balance. However, on the savings account page, Ally doesn't disclose what APY will be offered at each tier, which isn't ideal.
Competitive APYs for CDs
If you're looking for CD-type accounts, there are 3 different options at Ally. Like the standard savings account, there is no minimum deposit requirement for any of these CDs. The options include:
4% APY for money market
Finally, customers can take advantage of Ally's Money Market Account, which earns a strong APY of 4% on any balance. The account provides customers with a debit card and the ability to write checks. There are also no associated fees or minimums with the Money Market account.
Claims to have competitive customer service
Since Ally Bank is online only, customers will not receive in-person service. However, Ally provides numerous ways to get customer service support, including phone, email, snail mail, chat, or Twitter. Additionally, Ally's thorough help center will likely answer many frequently asked questions. The bank's app, which is available on iOS and Android, gets mixed ratings, with a higher rating on iOS and fewer than 4 stars on Android.
Commitment to social impact
A standout feature at Ally is their promise to contribute to social issues, making this bank a great option for socially-conscious customers. The company is committed to creating a positive social impact on the world as part of its corporate responsibility. Environmental, social, and governance (ESG) issues are a priority for the company which serves to distinguish it from other companies, contributing to positive social impact and allowing stakeholders to understand what is significant to the company.
Customer confidence is low
In terms of customer feedback, Ally has an average of 2.5 stars across different third party review sites. Customers complained about a variety of services at Ally including having trouble with auto loans, CD account dispersal, and struggling to get a hold of customer service to resolve issues. Multiple reviews use the phrase "worst bank ever" which doesn't make us feel confident about this service. While the company does have an "A" rating from the BBB, it also only has a 1-star customer review average there.
Room for improvement
While Ally Bank has several competitive features, such as a range of savings and CD accounts with no minimum deposit requirements and a high APY of 4% for their Money Market account, the lack of transparency regarding the APY tiers and mixed customer reviews have led to a low rating for the bank. With customers complaining about multiple aspects of Ally, it's clear the company hasn't earned its clients' confidence. Furthermore, while the bank is committed to creating a positive social impact, this has not translated into positive customer experiences. Overall, these factors contribute to Ally Bank receiving a lower score in our evaluation.
Barclays Bank is a multinational financial services company that offers a limited selection of deposit products online in the United States. If you're looking for high-yield savings or CD rates, Barclays could be a good option for you. The bank offers two options for savings accounts and certificates of deposit with no minimum deposit requirements and a high annual percentage yield (APY). The online savings account is especially appealing with an APY of 4%.
If you're interested in opening an account with Barclays, neither the savings account nor the CDs require a minimum balance or monthly service fees. To open an account, you can easily do so online, and the bank provides excellent customer service seven days a week, from 8 a.m. to 8 p.m. Eastern time.
Account options are limited but straightforward
For the savings account at Barclays, you get a guaranteed 4% APY no matter your account balance. There is no requirement for a minimum opening balance or deposit. However, in order for interest to be credited to the account, the account holder must maintain a minimum balance that would earn at least $0.01 from the APY interest. In terms of the CD account, Barclays offers a fixed-rate APY, and you can benefit from interest that compounds daily, without worrying about hidden fees or minimum balances. Plus, it's easy to transfer funds in and out of the account, making it a convenient option for those seeking low-risk investments. The APYs range from 4.30% to 4.90% depending on which commitment length you choose. The highest APY is on a 12-month commitment.
Some access drawbacks
It's important to note that the bank does have some drawbacks. For example, the bank offers a limited selection of deposit products. Additionally, the Barclays Online Savings Account doesn't have ATM access, and other online banks offer a higher yield. On the other hand, if these factors are not a concern for you, then Barclays may still be a suitable choice.
Mobile access is just average for iOS, poor for Android
When it comes to Barclays' mobile experience, the bank's app scored 3.5 on iOS and 1.8 on Android users. While the bank has a limited branch and ATM network, it does offer the ability to make mobile deposits, which is a plus. However, with the low mobile app ratings, especially for Android, this bank may not be ideal. Especially since this bank is 100% online, it's fairly disappointing to see a poorly-made mobile app.
Bare bones website
Another concern we have about Barclays is how minimal the website is. While it's easy enough to navigate, there just isn't as much information on the pages as we've seen at other banks in our review. This comes across as not offering customers enough information and could cause prospective clients to feel less confident about using Barclays for their online savings.
Not a top choice with reviewers
In order to get a good idea of where Barclays stands with customers, we checked out the reviews and rankings for the bank. Barclays has an "A" rating with the BBB, but only a 2.7-star average out of 5 stars across review sites. On the BBB site itself, Barclay has only 1 star for customer satisfaction out of hundreds of reviews. Customers are complaining about "glitches" in the website as well as difficulty getting in touch with customer service. Clients were especially frustrated by using a credit card through Barclays as well as transferring payments. On the other hand, the few customers who did like Barclays appreciated the high APYs and competitive interest rates.
Better choices available
While Barclays Bank may offer competitive interest rates for its online savings and CD accounts, there are several drawbacks that should affect customers' desires to open an account here. With low mobile app ratings and user ratings, a bare-bones website, and negative feedback on customer service, Barclays doesn't stand out as a top example of online banking. Given these concerns and the low ratings from customers, it may be wise to explore other options before opening an account with Barclays.
Bask Bank is a relative newcomer to the online banking world, getting its start in early 2020. In terms of savings options, Bask Bank offers standard savings accounts and CDs.
2 savings accounts to choose from
The savings accounts include a Bask Interest Savings Account and a Bask Mileage Savings Account.
Getting those high APYs for savings
One of the main advantages of banking with Bask Bank is its high APY. Its Interest Savings Account offers customers one of the most competitive yields in the market. Furthermore, the bank's Mileage Savings Account is an excellent opportunity to earn American Airlines miles based on the monthly balance. For the Interest Savings Account, Bask offers a competitive 4.75% fixed APY with a 4.64% interest rate. The interest compounds over the year, providing customers with even more earnings.
Flying high with Bask Bank
On the other hand, the Mileage Savings Account earns you miles with American Airlines rather than APY and interest. You have the freedom to withdraw your funds from Bask Bank whenever you need to. If you opt to withdraw any portion of your savings, your reward will be based on the average monthly balance that you have maintained in your account. The AAdvantage miles earned through Bask Bank will be added to your AAdvantage® account and can be redeemed for various benefits such as flights, hotel stays, car rentals, and more. It is important to note that the miles earned through Bask Bank do not contribute to increasing your Elite status. However, if you're a frequent flier, this option could still be good for your travel needs.
Competitive CD rates
For the CDs, you can choose between 4 different commitment lengths: 6, 12, 18, and 24 months. The APYs for Bask CDs range from 4% to 4.85% depending on which length of commitment you choose. The highest APY is only available in the 6-month commitment with 12 months being the second highest option. These rates are simple and competitive, and all of them prioritize customer returns, which is a bonus.
Limitations for transfers
While Bask Bank offers its customers several advantages, it also has some limitations. For example, established customers can only transfer a maximum of $150,000 per transaction, $250,000 per day, and $300,000 per month via online transfers. New customers have online transfer limits of $100,000 per transaction and per day and $150,000 in a month. And, Bask Bank charges a $35 outgoing wire transfer fee, which is higher than most other institutions. Additionally, Bask Bank allows customers to have only one mileage savings account and one interest savings account, so you can't add extras.
Mid-level ratings for mobile
As an online institution, it's no surprise that Bask Bank has a mobile app. The Bask Bank mobile app had a score of 3.6 out of 5 from iOS users in the Apple App Store, while the Android version had 3.2 stars on Google Play. These scores are about average, but they are significantly lower than some of the top-rated services in our review. For an online bank, it's important to have well-designed mobile app options to make online banking a breeze. With mixed reviews from app users on both iOS and Android, there are some concerns about mobile banking with Bask.
Poor customer reviews
As for the company itself, the reviews are not ideal. While the APYs and airline miles sound great on paper, customers aren't as happy with what they're getting from Bask. Across third-party review sites, the company only has a 2.2-star rating out of 5. On top of that, Bask has a very low "D-" rating from the BBB for its consumer responses. However, it is worth noting that there are no more than 100 individual reviews available from customers at the time of this review, so this may not be a full reflection of the bank's services.
Zero customer service
Many customer complaints cover the difficulties of reaching customer service. Multiple reviews say things like "impossible to get a representative" or "zero customer service." Many clients warn others to stay away from Bask entirely. On the other hand, some of the customers who were happy with Bask loved the high APYs and felt that they were getting real and visible returns on their investments.
Sounds good until you try it
While Bask Bank has its advantages in terms of high APYs, competitive CD rates, and the ability to earn American Airlines miles, it also has several limitations. One of the most concerning issues with Bask is their customer feedback. Customers repeatedly complain about not being able to reach customer service and warn potential customers away. This plus the $35 fee for outgoing wire transfers, transfer limits, and restrictions on the number of accounts that customers can have negatively impact the company's overall rating. For these reasons, and the "D-" rating from the BBB, Bask earns a low rating in our evaluation of online savings accounts.
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:
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.
Select any 2 Online Savings Accounts to compare them head to head
Business Insider on ...
Savings Account and CD Rates Today | New 7% APY Checking Account ...
If you're considering opening a savings account or CD today and want a competitive rate, Insider did the research to help you find the best rate across popular savings accounts and CD terms.
Fri, 29 Sep 2023