Savings Accounts

6 Best Savings Accounts of January 2025: Up to 5%.

The Best Savings Accounts Have These Features:

1. High Interest Rates (APY)

Competitive Annual Percentage Yield (APY): Look for accounts offering rates well above the national average, especially from online banks and credit unions.
Compound Interest: Daily or monthly compounding ensures your money grows faster.

2. Low or No Fees

No Monthly Maintenance Fees: Avoid accounts that charge fees just for keeping your money there.
No Minimum Balance Fees: Choose accounts that don’t penalize you for falling below a certain amount.
Free Transactions: Ensure there are no hidden costs for deposits, withdrawals, or transfers.

3. No or Low Minimum Balance Requirements

Some savings accounts require a high initial deposit or balance to earn interest. The best accounts let you start saving with minimal or no upfront deposit.

4. Easy Access to Funds

ATM Access: Look for accounts offering a wide network of fee-free ATMs.
Linked Accounts: Easily transfer money to and from linked checking or external accounts.
Mobile App and Online Banking: Ensure the bank has user-friendly apps or websites for managing your funds.

5. Strong Security Features

FDIC/NCUA Insurance: Your funds should be insured up to $250,000 per depositor, per bank.
Fraud Protection: Look for accounts with multi-factor authentication and alerts for suspicious activity.

6. User-Friendly Banking Tools

Mobile Deposits: The ability to deposit checks using a smartphone app.
Savings Tools: Features like goal-setting, budgeting, and automatic transfers to help you save consistently.
Spending Insights: Some accounts offer dashboards to analyze your financial habits.

7. Flexibility in Withdrawals

Limited Restrictions: While federal regulations typically limit savings account withdrawals to six per month (Regulation D), the best banks don’t penalize you excessively for going over the limit.
Automatic Transfers: Some accounts allow you to set up automatic savings transfers to avoid missing contributions.

8. Reputation and Reliability

Bank Reputation: Choose a bank or credit union with positive reviews for customer service and reliability.
Stability: Opt for financial institutions with a strong track record of security and customer satisfaction.

9. Promotions or Bonuses

Sign-Up Bonuses: Some savings accounts offer cash bonuses for opening an account and meeting certain criteria.
Introductory Rates: Watch for promotional APYs that might boost earnings temporarily.

10. No Account Closure Restrictions

Flexibility: Look for accounts that don’t charge early closure fees if you decide to switch banks.

Examples of Accounts That Often Meet These Criteria

High-Yield Savings Accounts (e.g., Marcus by Goldman Sachs, Ally Bank, Discover Bank)
Credit Union Accounts (e.g., Alliant Credit Union, Navy Federal Credit Union)
Online-Only Savings Accounts (e.g., SoFi, Varo, Chime)

Full list of the best savings accounts

Here are all of picks for the best savings accounts.

Barclays, 4.50% savings APY with no minimum to open account (Learn More), Member FDIC.
Bask Bank, 4.65% savings APY with no minimum to open account (Learn More), Member FDIC.
BMO Alto, 4.45% savings APY with no minimum to open account (Learn More), funds insured by FDIC.
Bread Savings™, 4.65% savings APY with $100 minimum to open account, (Learn More), Member FDIC.*
CIT Bank, 4.55% savings APY with $100 minimum to open account (Learn More), Member FDIC.
Citizens,90% savings APY with $0.01 minimum to open account (Learn More), Member FDIC.
E*TRADE, 10% savings APY with no minimum to open account (Learn More), Member FDIC.
EverBank (formerly TIAA Bank), 4.75% savings APY with no minimum to open account (Learn More), Member FDIC.
Ivy Bank, 5.00% savings APY with $2,500 minimum to open account (Learn More), Member FDIC.
Jenius Bank, 4.80% savings APY with no minimum to open account (Learn More), funds insured by FDIC.
Laurel Road, 4.50% savings APY with no minimum to open account (Learn More), funds insured by FDIC.
Marcus, 4.10% APY (annual percentage yield) as of 10/10/2024 with no minimum to open account (Learn More), Member FDIC.
My Banking Direct, 4.75% savings APY with $500 minimum to open account. (Learn More), Member FDIC.
Popular Direct, 4.60% savings APY with $100 minimum to open account (Learn More), Member FDIC.
Salem Five Direct, 4.25% savings APY with no minimum to open account (Learn More), Member FDIC.
Sallie Mae Bank, 4.20% savings APY with no minimum to open account (Learn More), Member FDIC.
SoFi, 4.00% savings APY (variable and subject to change) with no minimum to open account (Learn More), Member FDIC.
Synchrony Bank, 4.10% savings APY with no minimum to open account (Learn More), Member FDIC.
TAB Bank,52% savings APY with no minimum to open account (Learn More), Member FDIC.
UFB Direct, 31% savings APY with no minimum to open account (Learn More), Member FDIC.
Upgrade, 41% APY, no minimum to open account (Learn More), funds insured by FDIC.
Zynlo, 00% APY with $10 minimum to open account (Learn More), funds insured by FDIC.

Best High-Yield Savings Accounts of January 2025: Up to 5%

What is a High-Yield Savings Account?

A high-yield savings account is a type of savings account that offers significantly higher interest rates compared to traditional savings accounts. These accounts are typically offered by online banks, credit unions, or financial institutions with lower overhead costs, allowing them to pass on better rates to customers.

High-yield savings accounts are ideal for individuals looking to grow their savings faster while maintaining easy access to their funds.

Key Features of High-Yield Savings Accounts

Higher Interest Rates: Often 10–20 times the national average rate for savings accounts.
FDIC/NCUA Insurance: Funds are insured up to $250,000, providing safety and security.
Online Access: Many high-yield accounts are online-only, offering convenient access and lower fees.
Liquidity: Easy access to your funds via online banking, linked accounts, or mobile apps.
Low or No Fees: Most high-yield accounts don’t charge monthly maintenance fees.

High-Yield Savings Accounts Terminology

Annual Percentage Yield (APY):
- The total return on your savings over a year, including compounding.
- A higher APY means more earnings on your account balance.
Compound Interest:
- Interest calculated on both the initial deposit and any previously earned interest.
- High-yield accounts often compound daily or monthly.
Minimum Balance:
- The lowest amount you must maintain in your account to earn interest or avoid fees.
- Many high-yield accounts have low or no minimum balance requirements.
Maintenance Fee:
- A monthly fee charged for maintaining the account. High-yield accounts typically have none or offer easy ways to waive them.
Linked Account:
- A checking or external bank account connected to your high-yield savings account for easy transfers.
Regulation D:
- A federal rule limiting savings account withdrawals to six per month. Many high-yield accounts follow this guideline but may waive penalties temporarily.
FDIC/NCUA Insurance:
- Protects your deposits up to $250,000 per depositor, per bank (FDIC for banks, NCUA for credit unions).
Introductory APY:
- A promotional interest rate offered for a limited time to attract new customers. Be aware of what the APY reverts to after the promotional period.
Mobile Banking:
- The ability to manage your account, deposit checks, and transfer funds through a smartphone app.
Automatic Savings:
- A feature that allows you to schedule regular transfers from a checking account to your high-yield savings account.
Interest Tier:
- Some high-yield accounts offer different APYs based on your account balance. For example, a higher APY may apply for balances above $10,000.
Withdrawal Limitations:
- Federal guidelines typically limit certain types of withdrawals to six per month, but not all accounts enforce this strictly.
Online-Only Banks:
- Banks that operate entirely online and offer high-yield accounts due to lower overhead costs.
Sign-Up Bonus:
- A cash reward offered for opening a new high-yield account and meeting specific requirements, like maintaining a minimum balance or making deposits.
Earnings Calculator:
- A tool provided by banks to estimate how much interest you’ll earn over time based on your deposits and APY.

Benefits of High-Yield Savings Accounts

Faster savings growth compared to traditional accounts.
Easy setup and management, often through online platforms.
Safe storage of funds with FDIC/NCUA insurance.
Flexible access for emergencies or planned expenses.

Best high-yield savings accounts: full list

Financial Institution	NerdWallet Overall Institution Rating	APY	Minimum balance to open
Newtek Bank, Member FDIC.	4.6.	5.25%.	No minimum to open account.
Santander Bank, Member FDIC.	4.0.	5.00%. Santander Bank disclosures	$500 minimum to open account.
EverBank (formerly TIAA Bank), Member FDIC.	4.4.	4.75%.	No minimum to open account.
My Banking Direct, Member FDIC.	4.5.	4.75%.	$500 minimum to open account.
Forbright Bank, Member FDIC.	4.4.	4.60%.	No minimum to open account.
Poppy Bank, Member FDIC.	4.3.	5.00%.	No minimum to open account.
Western Alliance, Member FDIC.	4.3.	4.46%.	$500 minimum to open account.
Jenius Bank, funds insured by FDIC.	4.9.	4.80%.	No minimum to open account.
TAB Bank, Member FDIC.	4.5.	4.52%.	No minimum to open account.
Bread Savings™, funds insured by FDIC.	4.8.	4.65%. Bread Savings disclosure	$100 minimum to open account.
Popular Direct, Member FDIC.	4.2.	4.60%.	$100 minimum to open.
First Foundation Bank, Member FDIC.	3.8.	4.75%.	$1,000 minimum to open account.
Bask Bank, Member FDIC.	4.5.	4.65%.	No minimum to open account.
UFB Direct, Member FDIC.	4.9.	4.31%.	No minimum to open account.
LendingClub, Member FDIC.	4.5.	3.75% (4.75% if certain requirements are met).	No minimum to open account.
CIT Bank, Member FDIC.	4.4.	4.55%.	$100 minimum to open account.
Upgrade, funds insured by FDIC.	4.6.	4.41%.	No minimum to open account.
CIBC U.S., Member FDIC.	3.6.	4.51%.	$1,000 minimum to open account.
BMO Alto, Member FDIC.	4.5.	4.45%.	No minimum to open account.
ConnectOne Bank, Member FDIC.	3.9.	4.00%.	$2,500 minimum to open account.
Barclays, Member FDIC.	4.0.	4.50%.	No minimum to open account.
Citizens, Member FDIC.	4.3.	3.90%.	$0.01 minimum to open account.
Quontic Bank, Member FDIC.	4.4.	4.00%.	$100 minimum to open account.
Salem Five Direct, Member FDIC.	4.5.	4.25%.	$10 minimum to open account.
Sallie Mae Bank, Member FDIC.	4.0.	4.20%.	No minimum to open account.
SoFi, Member FDIC.	4.9.	4.00% (variable and subject to change).	No minimum to open account.
Synchrony Bank, Member FDIC.	4.9.	4.10%.	No minimum to open account.
Live Oak Bank, Member FDIC.	3.9.	4.30%.	No minimum to open account.
Citibank, Member FDIC.	4.3.	4.00%.	No minimum to open account.
American Express, Member FDIC.	4.6.	3.90% APY (annual percentage yield) as of 11/27/2024.	Minimum to open = $0.
Marcus by Goldman Sachs, Member FDIC.	4.8.	4.10% APY (annual percentage yield) as of 10/10/2024.	No minimum to open account.
Capital One 360, Member FDIC.	4.6.	3.90%.	No minimum to open account.
Discover® Bank, Member FDIC.	5.0.	3.90%.	No minimum to open account.
Varo, Member FDIC.	4.8.	3.00% (5.00% if certain requirements are met.)	No minimum to open account.