Updated June 10, 2019

Top 10 Best Online Savings Accounts: September 2019

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The best online savings accounts pay a good interest rate, are fully secured, and allow for flexibility. Find the best high interest savings accounts to consider.

Where is the Best Place to Open a Savings Account?

ForBank
Best BonusDiscover Bank
Best Interest RateWealthfront
Best Big BankHSBC Direct
Best Savings With ATM CardSynchrony Bank
Best Customer ServiceAlly Bank

Saving money is one of the smartest financial practices to have. But did you know that there's a, shall we say, dumb way of doing it?

Interest rates on typical bank savings accounts are laughably low. The average national interest rate was 0.10% as of March 12, 2019.

I spent years parking my hard-earned savings in that typical savings account you get with a bank checking account. And guess what? My savings just sat there, doing nothing. I didn't know any better. The $10 a year I was getting in interest was a joke.

And then I caught on. I could earn a LOT more in interest with online savings account options that pay over 22x the national interest rate. Why not let your hard-earned savings work for you instead of just sitting there?

I'm going to share my research for the top online high yield savings accounts. Don't make my mistake - choose one of these accounts to get the most out of your savings.

If you're considering opening a personal checking or savings account, check out these promotions. You may also want to consider a money market account.

What to Look for in a Savings Account

There are a few things you want to have in an online savings account:

  1. Security
    My big hesitation was whether it's safe to store my money with someone else. No worries - the banks on this list are all FDIC insured, which means that if the bank defaults, the government will pay you back everything you had in the account (up to $250,000).

    Did you know: 8% of people don't have any banking accounts at all.

  2. Flexibility
    Of course, you want to be able to remove your money at any time when you need to use it, without penalty. All of these allow you to transfer money to your existing checking account at any time.

    Note: Note that federal regulation limits how many times you can take your money out - you can make only 6 ACH withdrawals/transfers from a savings account per statement cycle. Also, know that it may take a few days for electronic transfers to complete.

  3. Yield rate
    After I'm sure my money is secure and that I can access it, really, all I care about is the interest rate. It's pretty obvious that you want the highest interest rate you can get.

One thing to beware of: some accounts have a minimum balance requirement. If you don't maintain that balance, you'll have to pay a monthly fee.

If you're just parking your money there (which is the purpose of a savings account), then this shouldn't be a problem. But to be fair, I'm including options with no account minimums as well.

Tip: Some online savings accounts give you extras like ATM access and bill pay. While these features are nice, you're probably already able to do those with your current bank account. So to me, it's not an important feature.

But if these are important activities for you, do some further research to see which accounts below have those features.

Best Online Savings Accounts

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Here are our favorite online savings accounts.

Best Savings with Bonus: Discover Bank

Discover Bank's savings account may not have the highest APY on our list, but it does offer another incentive.

It often offers cash bonuses to eligible new customers. This provides a nice little boost to your savings balance. However, to get the bonus, it does require a higher opening deposit.

There are no fees or balance requirements.

Discover is a full-service bank with checking, CDs, and credit cards.

    Discover Bank

    Discover Online Savings - $150 Cash Bonus

    To get your $150 or $200 Bonus offer: What to do: Apply for your first Discover Online Savings Account by 10/7/19, 11:59 PM ET, online or by phone. Enter Offer Code CY919 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted by 10/21/19, 11:59 PM ET. Maximum bonus eligibility is $200.

    What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded or affinity accounts provided by Discover. Account must be open when bonus is credited. Bonus will be credited to the account by 11/4/19. Bonus is considered interest and will be reported on IRS Form 1099-INT. Offer may be modified/withdrawn without notice. See advertiser website for full details.

    Expires 10/7/2019
    Discover Bank

    Discover Online Savings - $200 Cash Bonus

    To get your $150 or $200 Bonus offer: What to do: Apply for your first Discover Online Savings Account by 10/7/19, 11:59 PM ET, online or by phone. Enter Offer Code CY919 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted by 10/21/19, 11:59 PM ET. Maximum bonus eligibility is $200.

    What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded or affinity accounts provided by Discover. Account must be open when bonus is credited. Bonus will be credited to the account by 11/4/19. Bonus is considered interest and will be reported on IRS Form 1099-INT. Offer may be modified/withdrawn without notice. See advertiser website for full details.

    Expires 10/7/2019

Best Big Bank: HSBC Direct

    HSBC Bank

    HSBC Direct Savings - 2.20% APY

    • Earn 2.20% APY on all balance tiers
    • No monthly maintenance fee
    • Minimum balance to earn APY is $1
    • Member FDIC

Many traditional banks now offer online-only accounts for everyone nationwide. This gives you the advantage of high online rates backed by a reputable, well-known institution.

HSBC Direct is the online division of HSBC, one of the largest global banks. Its online savings account offers a high APY with no service fee and only $1 to open.

Note that this account can only be opened and managed online. You can't go to a branch to conduct business.

Best for Active Savers: CIT Bank

CIT Bank's Savings Builder account offers one of the top rates. You must open the account with $100, and deposit at least $100 every month. The other way to get the high rate is to maintain a balance of $25,000.

Keep in mind that CIT has no checking services or ATM network. There is no monthly service fee.

CIT Bank is the online bank of CIT Group Inc., a financial holding company with over a century in business.

Best Savings with ATM Card: Synchrony Bank

    High Yield Savings

    2.00% APY. $0 minimum opening deposit. No minimum balance requirement. No fees to open or maintain account.
    • Great Rates + Safety = Peace of Mind
    • Member FDIC

Synchrony (which used to be part of General Electric) doesn't require a minimum deposit or a minimum balance. And there's no monthly service fee. So this makes a solid choice for those who are just starting to save.

Another great feature with Synchrony is that it comes with an ATM card, so you can withdraw savings quickly (up to 6 per statement cycle) instead of having to wait a few days for the transfer to be completed.

High Interest Rate: Banesco USA

Banesco USA is the US division of Banesco Banco Universal, the largest bank in Venezuela. In the US, it has strong roots in the south Floridian community.

BanesGrow Savings account offers one of the highest APYs. There are some requirements, but they are relatively low. The opening deposit is $100, and you must maintain a minimum balance of $300 to earn the advertised APY and avoid a service fee.

Low Minimum Deposit: Vio Bank

Vio Bank is the online bank division of MidFirst Bank, one of the largest privately-owned banks in the US.

Its online savings account offers one of the best rates in the nation. The $100 minimum opening deposit is low and there is no monthly service fee.

Vio Bank does not offer checking services or an ATM network.

With Over $5,000: Popular Direct

The Popular Direct Savings Account is through Banco Popular North America (BPNA), a New York State chartered bank. It currently offers one of the highest rates.

The downside is that the minimum deposit is a whopping $5,000. And you must maintain a $500 balance in the account or else you'll be charged a $4 monthly fee. If you close the account within 180 days, there's an early closing fee of $25.

With Over $10,000: UFB Direct

UFB Direct offers one of the highest interest rates on the market for their High Yield Savings account. The catch is that you have to deposit and maintain a balance of $10,000 or more to get the high rate. There is no interest if your balance drops below $10,000.

This account does come with a complimentary ATM card for convenience. There is no monthly service fee.

For Young Adults to Open: Salem Five Direct

    eOne Savings Account

    • 2.20% APY
    • $100 Minimum Opening Deposit
    • No Minimum Balance Requirement
    • No Fees to Open or Maintain Account
    • FDIC Insured

If you have $100 to start with, Salem Five Direct (the online branch of Salem Five Cents Savings Bank based in Massachusetts) offers a higher APY (for balances up to $1,000,000).

There is no minimum balance requirement and no monthly fees. Although you might not have heard of this bank, it's actually got a long banking history of over 160 years.

Did you know: Salem Five Direct also offers an eOne Combo option, where you can pair it with their checking account. The checking account has no minimum balance and a yield of 0.25% APY. Salem Five Direct never charges an ATM fee and will reimburse fees by other banks up to $15 per statement cycle.

Best Customer Service: Ally Bank

    Ally Bank

    Online Savings Account

    1.90% APY on all balance tiers. $0 minimum opening deposit. No fees to open or maintain account. No minimum daily balance requirement.
    • Consistently Competitive Rates
    • 24/7 Customer Care
    • Ally Bank, Member FDIC

Founded in 1919, Ally Bank was previously General Motors Acceptance Corp. (GMAC), so it's got a pretty solid history.

There is no minimum deposit required to open an account (but you must fund it within 30 days of account opening) and there is no monthly service fee. Many people love Ally Bank for its incredibly user-friendly site and great customer service. A real human is available to help 24/7.

Best High Yield Money Market: TIAA Bank

    Yield Pledge Money Market

    • 1-year 2.15% intro APY on balances up to $250,000
    • $5,000 Minimum Opening Deposit
    • No monthly service fee
    • Move money up to 6 times a month
    • U.S. ATM fees reimbursement (unlimited with minimum average daily balance of $5,000; otherwise up to $15/monthly)
    • Top 5% yields always
    • Daily Compounding Interest
    • FDIC Insured

This last one isn't technically a savings account, but rather a high yield money market account. But for this article, both pretty much serve the same purpose. You can also make up to 6 withdrawals/transfers per statement cycle.

TIAA Bank gives you a first year introductory APY for balances up to $250,000. TIAA Bank promises that the yield of your account will stay in the top 5% of similar accounts offered in the U.S. banking market.

You also get ATM access and a debit card, so you have easier access to your money. TIAA Bank never charges an ATM fee. And if you have over $5,000 in the account, TIAA Bank will even reimburse 100% of the ATM fees charged by other U.S. banks.

Did you know: TIAA Bank also offers a Yield Pledge checking account with an introductory APY. Pretty awesome for a checking account.

    Yield Pledge Checking

    • 1-year 1.21% intro APY on balances up to $250,000
    • $5,000 Minimum Opening Deposit
    • No monthly service fee
    • U.S. ATM fees reimbursement (unlimited with minimum average daily balance of $5,000; otherwise up to $15/monthly)
    • Top 5% yields always
    • Daily Compounding Interest
    • FDIC insured

Best Non-Bank Savings Account: Wealthfront

Wealthfront is not a bank. It's a robo-advisor that also offers a high-yield savings account for short term goals. It only takes $1 to open and there are no management fees. You don't need use their robo-advisor services to open this account.

There are some benefits to using a non-bank savings account. You get unlimited free transfers in and out of your account (instead of the 6/month limit for bank savings accounts). And Wealthfront's savings account is FDIC insured up to $1 million.

Why Open a Savings Account

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The purpose of a savings account is to have somewhere secure to park money that you may need to use in the near future. This could be for a down payment for a house, for a big vacation, or for family planning.

The reason you want the money in a separate account from your checking is so you don't want to accidentally spend it.

Did you know: 41% of Americans do not even have $500 in savings. And more than half (54%) have no savings strategy and don't know how to change the situation.

Related: How to Save Money Fast.

Because you may need to use this money at anytime, you want an account that lets you transfer the money out without penalty or fees. This is the advantage of a savings account, as opposed to an investment account like a Roth IRA.

Even though investment accounts may offer higher returns for your money, you may be penalized and take a tax hit if you try to take out the money early.

A high yield savings account is a surefire way to grow your money a little. But remember, it's not an investment account so you're not going to get rich off of it. And it's also not a checking account, so don't set one up if you need to make a ton of withdrawals.

Tip: The best thing to do is to have enough in your checking account for everyday needs, and put money in savings for emergencies and any upcoming goals. After that, if you can, put money you don't need in the near-future in investments for long-term goals and retirement planning.

Is an Online Saving Account Right for You?

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Before you stash your money into one of the above savings accounts, here are some things to consider:

  • Do you need quick access to your money?
    Remember, a savings account's purpose is to SAVE money, not spend it. So an online savings account doesn't make it easy for you to get at your money. If you want to make a withdrawal (like transferring money out to your bank account), it often takes 3 days or more before the transfer goes through. And you typically can only make 6 withdrawals a month.

  • Are you comfortable with web banking?
    Completely web-based banking means that there's no physical location where you can just stroll in and ask questions, make a deposit, withdraw money, etc. You also lose having a relationship with your local bank. Online banks do have customer support by phone (and many by web chat), but we all know how frustrating phone calls to banks can be.

  • What is your financial situation?
    Think about what your goals are and your personal financial situation. If your situation is tight and you don't have a lot of spare cash at the end of every month, it may not be worth it to open another bank account just to keep a small amount of money in. Keep in mind that like traditional savings accounts, online savings accounts will have restrictions such as minimum deposit, minimum balance, and limits on withdrawals.

    Did you know: 31% of people spend what they make per month, and 15% spend more than they make.

There Are Other Options, Too

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If you're not sure if a savings account is for you, some other options include:

  • A money market account, which acts as a savings account, but gives you freer access to your money. You'll get a debit card, ATM access, and check writing abilities. But the interest rate may be lower. As we noted, TIAA Bank provides a money market account with a high interest earning potential.

  • A CD (Certificate of Deposit) is for longer-term savings. It may give you higher rates, but there are limitations on when you can take out the money (such as a 2-year CD, 5-year CD, etc.). And you'll often need a larger deposit to open a CD account.

  • A higher yield checking account if you need quick and frequent access to your money. It'll give you the flexibility to access your money any time you need with no restrictions. Most checking accounts don't give you any interest, but TIAA Bank and Salem Five Direct both offer checking accounts with interest (TIAA Bank has a tiered system where the APY increases with a higher balance). See our list of the best online checking accounts.

If you're considering opening a personal checking or savings account, you must check out these promotions.

Popular Savings Account to Consider

© CreditDonkey

Here are the top 5 online savings accounts to build wealth fast:

  • CIT Savings Builder
    CIT Bank rewards active savers or high-balance savers with a very high rate. To get the high APY, you must either open an account with $100 minimum deposit and deposit at least $100 per month, or maintain a balance of $25,000. There is no monthly service fee. See latest CIT Bank promo codes.

  • Marcus by Goldman Sachs
    Goldman Sachs offers an online savings account through Marcus. Their rates are competitive with other high yield savings accounts. No minimum deposit to open. No service charges or internal transaction fees. Marcus does not offer a checking account, a mobile app or ATM network. There is a limit of $1,000,000 in combined deposits per account.

  • American Express Personal Savings
    Their rates are competitive with other high yield savings accounts. American Express offers mobile app access for this product. There are no monthly fees and no minimum deposit. However, you must fund your account within 60 days of application approval, or else it'll be closed.

  • HSBC Direct Online Savings
    If you like the sound of a large bank, check out HSBC Direct - the online operation of the global banking giant HSBC. Its Online Savings account offers a fantastic rate with just $1 opening deposit and no monthly service fees.

  • Live Oak Bank
    Live Oak Bank offers one of the highest rates on an online savings account that we have found. Live Oak is a smaller regional bank that is FDIC insured up to $250,000 per depositor. No minimum deposit. No monthly maintenance fees.

  • Alliant
    Alliant is a highly awarded online credit union known for online savings accounts. There are some eligibility requirements to open an account with Alliant. Check Alliant's website to see if you qualify. You can become eligible through a $10 charitable contribution. $5 minimum deposit to open, but this is covered by Alliant through a bonus. No monthly fees when you elect eStatements.

  • Digital Federal Credit Union (DCU) Primary Savings
    If you have $1,000 or more to save, DCU (a credit union) offers a much higher rate than even the top online banks. This high rate is offered on up to a $1,000 balance. The remaining account balance has a lower interest rate. DCU does give you an ATM card. $5 minimum deposit. No monthly fees.

  • Capital One 360 Savings
    Capital One offers ease of use with its award-winning mobile app and other tools. This account does offer a slightly lower rate than other online savings accounts. No minimum deposit. No monthly fees.

  • Vio High Yield Online Savings
    Vio Bank is the online bank division of MidFirst Bank, one of the largest privately owned banks in the US. It offers a savings account and CDs with high rates. Their online savings account offers a high rate on all balances. $100 minimum deposit to open. No monthly fees.

  • SFGI Direct Savings
    SFGI Direct is an offering from Summit Community Bank. Their savings accounts have a very competitive rate. $500 minimum deposit to open. No monthly fees.

  • FNBO Direct Online Savings
    FNBO Direct is a division of the First National Bank of Omaha. It offers a competitive rate on its online savings accounts. $1 minimum balance to open. No monthly fees.

  • Sallie Mae High Yield Savings
    This student loan servicer also has expanded into consumer banking. Sallie Mae offers a competitive rate on its online savings accounts. No minimum deposit. No monthly fees.

  • Citizens Access Online Savings
    Citizens Access is the online operation of Citizens Bank. All U.S. residents can apply for this online savings account. It offers a high rate with no service fees. The minimum opening deposit is $5,000.

  • Northfield Bank Platinum Savings Online
    Northfield Bank offers an online-only savings account with a high APY. You only need $0.01 to open the account. However, there is a monthly service fee unless you maintain an average daily balance of $2,500 each statement cycle.

Common Questions

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What is an APY?
Let's do the complicated answer first: APY stands for Annual Percentage Yield, which is the return you get over a 1-year period based on the interest rate and compounded interest (which means that your interest earns interest), and also based on the assumption that the funds will remain in the account for 1 year.

The simple answer is that, basically, 1.00% APY means 1% interest. This means if you save $100, you will earn $1 in interest in a year.

How are these online savings accounts able to offer such a high interest rate?
Online banks don't have physical locations, which means that they have much lower operating costs than brick-and-mortar banks. This means they can save on overhead and pass those savings onto customers by offering better rates.

Is my money safe in an online savings account?
As long as you pick one that is FDIC insured, then yes. This means that if the bank defaults, the U.S. government will pay you back every cent you had in the account, up to the FDIC maximum of $250,000. All the savings accounts in this list are FDIC insured.

Can I take my money out whenever I need to?
Federal regulation only allows you to make 6 withdrawals/transfers per statement cycle, before a fee kicks in.

What kind of withdrawals can I make?
There are 4 types of withdrawals you can make: online funds transfer (like to your own bank checking account), outgoing wire transfer, telephone transfer, and check request.

How do I make deposits?
You can transfer money from your own bank account, send a wire transfer, or send a check. A lot of online banks (like all the ones on this list) have mobile banking too, where you can deposit checks by taking a picture of it with your phone.

Bottom Line

A high-interest savings account is a great way to make your money grow a little bit. Not putting your savings into one is literally like leaving money on the table.

I wish I'd known that sooner. But I hope you're all the wiser now and will consider it if you're still keeping your money in an account with non-existent interest.

Disclaimer: Opinions expressed here are author's alone. Please support CreditDonkey on our mission to help you make savvy decisions. Our free online service is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content.

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