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Our top three picks for the best savings accounts are SoFi Bank (4.60%), Service Credit Union (0.25%) and Bask Bank (5.10%). For our full list of the best savings accounts, we at the MarketWatch Guides team researched 128 savings accounts and surveyed 1,000 account holders about how they bank.
We then narrowed down our list to nine picks, five of which we opened accounts with to help you get a first-hand perspective on the application process and beyond.
Our picks for the best savings accounts feature rates of up to 5.25%, few fees and perks such as ATM access and sign-up bonuses. We also highlight savings options for kids, military families and for those looking to earn flight miles.
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Our Rating
APY*
1.20% or 4.60%
What Stands Out
Comes with an interest-bearing checking account
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Our Rating
APY*
0.25% to 10.00%
What Stands Out
Higher APY for service members on active duty in combat zones
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Our Rating
APY*
N/A
What Stands Out
Earns American Airlines miles based on how much you save
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Our Rating
APY*
4.25%
What Stands Out
Has U.S.-based customer service available 24/7
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Our Rating
APY*
5.25%
What Stands Out
Among the highest APYs on our list
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*Rates accurate as of June 26, 2024
The MarketWatch Guides team reviewed more than 100 banks and credit unions to determine our picks for the best savings accounts. Our selection process considered factors such as interest rates, fees and ATM access.
Because we consider multiple account features for the savings category, our selections for the best accounts don’t necessarily have the highest interest rates. (See our list of the best high-yield savings accounts for financial institutions with high interest rates and high savings account scores.) Learn more about our scoring methodology.
All financial institutions on our list of the best savings accounts have insurance of at least $250,000 per depositor, ownership category and financial institution through the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA).
After researching 128 banks and credit unions we at the MarketWatch Guides team rated these 9 as our picks for the best savings accounts.
Research rates from multiple providers to earn as much as possible on your savings. The FDIC’s monthly report on the national average interest rates for deposit accounts can help you compare your options.
To gain insights on the customer experience, we opened our own accounts with more than a dozen banks and credit unions and surveyed 1,000 account holders about the ways they bank. We’ve included some of our findings from this research below.
We like SoFi’s competitive APYs and attractive sign-up bonuses, but we were especially drawn to two distinctive savings features — “roundups” and autosave. With the roundups feature, you can automatically round your purchases up to the next dollar and transfer the difference to your savings account. With autosave, you can automate your transfers from checking to savings on your own schedule.
Additionally, there are no monthly maintenance fees associated with SoFi’s high-yield checking and savings account.
Through June 30, 2024, you can earn a cash bonus when you open an account and enroll in direct deposit:
Existing customers are only eligible for the sign-up bonus if they’ve never used direct deposit on their SoFi checking and savings accounts.
We were impressed with SoFi’s free budgeting tools available with our account. We were able to see spending trends and get estimates of things like our car’s value and our net worth. We also liked the speedy availability of our funds and the ability to cancel the account online, which many banks don’t offer.
Source: Sofi.com via MarketWatch Guides user testing.
We did notice a few things that could be improved, however. For example, SoFi doesn’t use Zelle for bank-to-bank transfers like many other banks do. We also thought it could have been more clear in the rate disclosure that you have to use direct deposit to get the full APY.
Additionally, we’d like to see a more user-friendly experience on the website as several key links, such as mobile check deposit, were located under the “More” tab instead of being clearly displayed.
The ability to rack up airline miles is a perk you’ll rarely get with a savings account. That makes the Bask Mileage Savings Account a contender on our list. While credit card rewards programs require you to spend money to earn miles, this account gives you 2.5 American Airlines AAdvantage miles for every dollar you save.
For those who would prefer to earn interest on their savings instead of airline miles, the bank offers the Bask Interest Savings Account. Learn more in our review of high-yield savings accounts.
New customers may also qualify for bonus miles with a promotional offer that runs through August 31, 2024. You can earn 20,000 bonus AAdvantage miles if you open a Bask Mileage Savings Account and fund it within 15 business days. You’ll need to maintain a minimum daily balance of at least $50,000 for 90 consecutive days out of the first 120 days after opening the account.
While it takes a large deposit to qualify for the bonus miles, frequent flyers looking to spread their cash savings out could benefit from this account.
Bask Bank offered one of the easiest application processes we encountered. Aside from Upgrade, this application had the fewest number of steps to open an account, requiring only eight simple steps. We did, however, have to scan in a government-issued ID to log in and complete the application, which isn’t required by most banks. Usually, you can do this with just your Social Security number.
The things that didn’t impress us about Bask Bank were the funds transfer speed and slow chat support. Transfers to and from your Bask Bank account can take up to five business days to complete — and it took us the full five days. And chat support isn’t instant like it is on some banking apps. Instead, you’ll have to wait up to 24 hours for a response.
Source: Baskbank.com via MarketWatch Guides user testing
*APYs (Annual Percentage Yields) accurate as of June 26, 2024
A savings account is a financial tool that allows you to securely store and grow your money while maintaining access to it. Unlike other accounts, such as certificates of deposit (CDs), which lock your money away for a set period of time, you can access your savings at any time without penalty.
Many of the best savings accounts are offered by online banks. Since they don’t have the overhead costs of brick-and-mortar banks, they’re able to offer higher APYs to their customers.
However, working with online banks may come with some drawbacks. For one thing, since they don’t have physical branches, customer service options are limited. Some customers prefer the experience of in-person service, especially when there are problems with their accounts. But with online banking, you’ll be dealing strictly with agents via chat, email or phone.
It’s safe to say that everyone should have some type of savings account set up, whether for retirement, emergencies or planned events. However, there are a few demographics that might especially benefit from a savings account.
Savings accounts are ideal for young adults and college students just starting their financial journeys. This will help them cultivate healthy financial habits early and build a solid foundation for stability and independence.
Freelancing and gig work has become a popular way to earn money, but the income stream is often unpredictable. By starting a savings account, you can ensure that you have enough funds to cover basic expenses during slower times.
Families and parents need savings in place to safeguard against unexpected expenses and to plan for future milestones. It’s a good idea to start setting aside money early for education, healthcare and emergencies.
Even if you have a retirement plan, extra savings accounts are never a bad idea. As a senior citizen, you may encounter health-related expenses or other emergencies before your retirement accounts mature or you may need more than you planned for in your later years.
Use our calculator to determine if you should get a savings account.
Everyone’s savings goals are different, so your strategy could be unlike someone else’s. However, there are a few things we recommend for all savers.
We asked a few experts to weigh in on this topic, and the general consensus is that everyone should set aside enough money to cover at least six months’ worth of living expenses.
“Once you have this, you are protected for half a year if you lose your income for any unforeseen reason,” said Christopher M. Naghibi, Esq., executive vice president and chief operating officer at First Foundation Bank. “You literally can't buy that kind of peace of mind.”
To avoid dipping into your savings for nonessential expenses, consider opening multiple accounts for different goals. You might open one account dedicated to emergencies, one for your upcoming wedding and one for vacations. You can open accounts at various banks to take advantage of their sign-on promotions or account perks.
Alternatively, you can use a savings account that allows you to separate your money into different “buckets.” SoFi has something similar called “vaults,” which let you earmark your money for various goals.
In general, savings accounts are great for shorter-term goals such as weddings, vacations or emergencies. This allows you to keep your money liquid while still earning interest. However, for long-term goals, you should consider all of your options based on rates and other incentives. For example, the average money market account interest rate is well above the national average savings rate, but money market accounts still offer liquidity.
“More often than not, the strategy will be focused on high-yield savings and/or money markets to ensure daily liquidity,”
Daniel Milan, managing partner at Cornerstone Financial Services
Savings accounts are great tools for people wanting to grow their money safely while still having access to it. But there are some things you need to be aware of before putting your money into one. Primarily, you should understand the fees, terms and rates associated with your account.
Choosing an account with a higher APY can significantly boost your savings over time. While some savings accounts still earn up to 5% APY or higher, our December 2023 MarketWatch Guides consumer banking survey shows that 62% of Americans earn less than 3% interest on their savings or money market accounts.
Be mindful of fees associated with your savings account. These can include a monthly service fee, overdraft fees, ATM fees or fees for falling below a minimum balance.
Each bank has its own terms and conditions regarding its accounts. These terms can also vary for each account type.
“Shop around. Look for an account that not only offers an attractive interest rate but also fits your lifestyle.”
- Joe Camberato, CEO of National Business Capital
A good savings account should maximize your earnings and align with your goals. For example, a savings account with an autosave or roundup feature like SoFi offers can help you save a little extra without having to plan.
Understand these common savings account terms so you know how your account works.
The annual percentage yield (APY) is the rate your balance will earn in one year when compound interest is included. Many banks compound interest daily, so the APY is often slightly higher than the interest rate. Use our savings calculator to see how much you can earn with different APYs.
This is earned interest that is applied to your savings account that continues to earn interest as long as you keep the funds in your account.
The FDIC is a federal agency that protects consumers’ deposits if a bank that it insures fails. The limit on the amount of money that’s covered depends on the type of bank account. For example, if you’re the sole owner of a checking and savings account at an FDIC-insured bank, at least $250,000 of your total balance in those two accounts is covered.
Many credit unions are similarly insured by the NCUA, which is another federal agency.
This is the smallest amount of money a financial institution allows you to keep in an account. If you have less than this amount you may be charged a monthly fee or have your account closed. You might also miss out on certain perks (such as a higher APY) while your account is below the minimum balance.
Minimum balances can range from about $5 to a few hundred. However, many savings accounts don't have minimum balances at all.
While savings accounts are a safe and convenient way to store your money, there are a few alternative options that might give you a higher yield or other features that align with your goals.
There are many ways to invest your savings and while a high-yield savings account may work for you, here are some other options to consider:
| Factor | High-Yield Savings Accounts | Money Market Accounts | CDs | Checking Accounts |
|---|---|---|---|---|
| Accessibility | May offer ATM access or only electronic transfers | May offer check-writing capabilities and ATM access | Generally don’t allow access to funds until the term ends | Unlimited transactions, providing easy access to funds |
| APY | Variable rates that are usually higher than checking rates | Competitive, variable rates similar to high-yield savings accounts | Can offer competitive (often fixed) rates that tend to be higher than savings and money market rates | Typically don't earn interest |
| Insurance coverage | Usually have FDIC or NCUA coverage up to $250,000 per depositor, ownership category and bank | Usually have FDIC or NCUA coverage up to $250,000 per depositor, ownership category and bank | Usually have FDIC or NCUA coverage up to $250,000 per depositor, ownership category and bank | Usually have FDIC or NCUA coverage up to $250,000 per depositor, ownership category and bank |
| Minimum requirements | May require minimum balances or opening deposits | Often require substantial balances or initial deposits | May require high initial deposits | May require minimum balances or opening deposits |
| Risk | Generally low risk, but returns may vary | Generally low risk, but returns may vary | Low risk, with returns that are usually guaranteed upon maturity | Minimal risk, but they don’t tend to earn interest |
| Withdrawal restrictions | May have monthly withdrawal limits | May have monthly withdrawal limits | Typically charge a penalty for withdrawing funds before the term ends | Generally allow unlimited transactions |
The bank with the highest interest rate on a savings account may vary depending on the day. Some online banks and credit unions are offering over 5% APY for savings accounts.
Most banks and credit unions offer a maximum APY of 5% to 5.5% for savings accounts.
To get 5% APY on a savings account, you’ll generally need to choose an online bank or credit union.
Yes. Putting money in a savings account is typically safe since most are insured by either the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA). These provide coverage of up to $250,000 per depository account.
The number of savings accounts you should have depends on your personal financial goals and preferences. Some people prefer to have multiple savings accounts to separate their funds for various purposes. For example, you might have an emergency fund, vacation savings and general fund.
Interest rates on savings accounts can vary depending on economic conditions, bank policies and changes in the market. Most commonly, a bank’s rates will fluctuate with the Federal Reserve rate, which can happen several times throughout the year.
Yes. Interest earned from savings accounts is generally considered taxable income. Retirement accounts, such as IRAs or 401(k)s are typically the only exceptions to this.
According to Northwestern Mutual’s Planning and Progress Study 2023, the average American has around $65,100 in savings, not including retirement accounts.
Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.
Our list of the best savings accounts consists of banks and credit unions that have wide availability and received high scores in the savings category of our banking reviews. While APY makes up the highest share of each financial institution’s score in this category, some accounts with midrange APYs made the list because of factors that make them accessible to more consumers. These include having ATM access and minimal or no fees and deposit requirements.
**Data accurate at time of publication
***Rates accurate as of June 26, 2024. Rates, promotions and available accounts may vary by location. Citi Accelerate Savings APY is for Raleigh, N.C.
****Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Great Valley Advisor Group, a Registered Investment Advisor. Weddington Advisors and Great Valley Advisor Group are separate entities from LPL Financial.
Certificates of Deposit are FDIC insured and offer a fixed rate of return if held to maturity. There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive outcomes. The purchase of certain securities may be required to affect some of the strategies. Investing involves risks including possible loss of principal.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have feedback or questions about this article, please email the MarketWatch Guides team at editors@marketwatchguides.
