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Feeling let down by your current bank and looking to spruce up your finances? Or maybe you're about to open your very first savings account and want to make sure you're getting all the bells and whistles? Deciding who to trust with your savings is a big deal and it's crucial for your financial wellbeing. With so many banks and online institutions, it can be overwhelming to hunt for the best interest options or rewards. Switching banks, or opening a new savings account, can feel like a lot.
But first, some background: a savings account is a type of bank account that is specifically designed for saving money. It's an account that you can deposit money into and earn interest on the balance. Unlike a checking account, which is used for everyday transactions like paying bills or buying groceries, a savings account is intended for long-term saving.
Wednesday, June 7th
SoFi stands out among the competition with its high APYs for a fee-free account. SoFi is different from many banks in this review: when you sign up for a SoFi online bank account, you will receive both a checking account and a savings account. Once you set up direct deposit, you can earn 1.20% APY on checking and 4.20% on savings all the time. With no fees, very positive reviews, and responsive customer service, this modern and easy-to-access bank stands out as the most impressive option among providers of online savings accounts.
CiT Bank is a fully online banking institution that offers some impressive options for savings accounts. The bank has 4 different options and the lowest APY starts at 0.25% going all the way up to 4.75% APY which is highly competitive in modern savings accounts. While you need $100 to open your account, there are no monthly fees. Even though this bank doesn't have a flawless reputation, banking professionals love CiT Bank and it has won awards on several sites, so it's definitely worth looking into, especially for those high APYs.
When it comes to choosing a major bank, Capital One makes a mark. In addition to having physical branches, Capital One offers competitive APY rates that rival even the top online-only banks. With a focus on putting customers first, Capital One offers a range of benefits, including no monthly fees or overdraft charges, no minimum deposit requirements, and even savings options for children. The bank also boasts a highly-rated mobile app and has received high praise from both customers and banking experts, making it the standout choice for those seeking a traditional big-name bank for their savings account needs.
While Varo is fairly new and not the most feature-rich online savings account option, it has a lot of things going for it. There is one option for a high-yield savings account, which offers a guaranteed APY of 3-5% depending on how much money you have in the account. The account is fee-free and doesn't cost anything to open. With benefits for travelers and savings assistance, Varo stands out as a solid option to try for your next savings account.
On top of being a name almost everyone recognizes, Chase provides three savings account choices including 2 traditional savings accounts and a Certificate of Deposit (CD) account. If you are mostly interested in opening a savings account at a large bank, Chase could be a suitable option as it has been in the banking industry for over 200 years.
Axos is a completely online banking service with three options for a savings account. Because some customers have raised concerns about the technology and accessibility of their funds, it's worth noting that this bank is exclusively web-based. So, if you encounter issues accessing your cash through their website or app, you may find yourself in a bit of a bind. All things considered, Axos could be worth considering, but we recommend first looking at other options that might be a better fit for your needs.
Citizens Bank is a regional bank that operates in the Northeast, Midwest, and Florida. The bank offers a wide range of services, including free ATM and branch access, basic checking, and savings. Citizens Bank has over 1,100 branches across 12 states, making it convenient for customers to access their services. Citizens Bank can be a good option for those looking for cost-effective and convenient online and in-person savings accounts within the bank's coverage area.
Ally is an online-only bank that provides customers with high-interest rates and minimal fees by passing on the savings they make on overhead costs. Ally offers a variety of savings and CD accounts with high APYs. However, a lack of transparency regarding the APY tiers and low customer satisfaction ratings have led to a low rating for the bank. The customer reviews reflect dissatisfaction with the company's services, and with such low client confidence, Ally Bank only merits a low rating here.
Barclays is a renowned financial services company that has been dedicated to helping its clients and customers achieve their goals for over 300 years. The company's journey began in London in 1690 and in 1736, James Barclay joined the business, giving it the name it is known for today. Today, Barclays is a global financial services provider for online banking offering savings and CD accounts to US customers. However, with a range of complaints from customers, and a low-rated mobile app, Barclays doesn't stand out as a top competitor in online savings accounts despite its long history.
Bask Bank is a division of Texas Capital Bank and got its start in January 2020. The bank offers phone customer service hours six days a week and has a mobile app that customers can use to access their accounts. It has two savings options and a CD account that offers 4 terms for its customers. Bask Bank initially looks ideal for those who want a savings account that doesn't require a minimum balance, charges no monthly fees, and provides a competitive yield. However, with concerning comments from reviewers, and some limitations for transfers, Bask unfortunately earns a low rating in our review.
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.
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