Best Online Savings Accounts Of 2024
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- February 2024
Our Picks For

Best Savings Accounts 2024

American Express
American Express National Bank: Savings Account
4.35% Annual Percentage Yield With $1 Min To Earn.

Additional Benefits:

  • FDIC Insured And Backed By The Service & Reliability Of American Express.
  • No Limit On How Much You Can Earn And No Fees.
  • Up To 9 Withdrawals/Transfers Per Month.
  • Manage Your Account Seamlessly With Simple Transfers And Auto-Deposits.
  • 02/28/2024
    $1
    Min to Earn APY
    ufb direct
    UFB Direct : Savings
    5.25% Annual Percentage Yield With No Min To Earn.

    Additional Benefits:

  • No Monthly Maintenance Fees.
  • Access Your Funds 24/7 With Easy-To-Use Digital Banking Tools.
  • No Minimum Deposit Required To Open An Account.
  • Enjoy Peace Of Mind With FDIC Insurance Up To The Maximum Allowance Limit Certificate.
  • 02/28/2024
    $0
    Min to Earn APY
    SoFi
    SoFi: Checking and Savings Account
    4.60% Annual Percentage Yield With No Min To Earn.

    Additional Benefits:

  • Better Banking With High APY And No Account Fees On Checking And Saving.
  • Get Paid Up To 2 Days Earlier When You Set Up Direct Deposit.
  • Earn up to $300 With A Qualifying Direct Deposit (Terms Apply).
  • Earn Up To 15% Cashback With Your SoFi Debit Card.
  • 02/28/2024
    $0
    Min to Earn APY
    synchrony
    Synchrony Bank: Savings
    4.75% Annual Percentage Yield With No Min To Earn.

    Additional Benefits:

  • No Monthly Fees, No Minimum Deposit.
  • Savings Products With Competitive Rates, No Required Minimum Balances, And No Monthly Fees.
  • Our App Makes It A Snap To Bank Anywhere and Control Accounts From Your Smartphone Or Tablet.
  • Get More For Your Money. Visit Synchrony Bank Online Today To Open A High Yield Savings Account.
  • 02/28/2024
    $0
    Min to Earn APY
    What You Need To Know About The Best Savings Accounts

    2024 is redefining what it means to save money. Gone are the days of settling for meager interest rates; this year, it’s all about the best savings accounts that offer not just security, but also sky-high APYs. In this guide, we unveil the financial game-changers, the savings accounts that are not just holding your money, but actively growing it.

    These accounts are a cut above the rest, combining impressive APYs with customer-centric features. Think low fees, hassle-free access, and flexibility that aligns with your lifestyle. Saving money is no longer just about stashing it away; it’s about strategic growth and smart financial choices. Dive into the world of the best high-yield savings accounts of 2024 with us, and start turning your savings goals into reality.

    What Is a Savings Account?

    A savings account is more than just a place to stash your cash; it’s a strategic financial tool. Offered by banks and credit unions, these accounts let you store money securely while earning interest. The interest comes from the institutions using your deposits for loans and investments. With federal insurance backing, savings accounts offer a low-risk avenue to grow your money.

    Savings Account Terms You Need to Know

    Understanding key terms associated with savings accounts is essential for making informed financial decisions. Here are some key terms related to savings accounts that you must know:

    Interest

    This is the amount paid by the bank to you for keeping your money in a savings account. The interest rate is usually a percentage of your account balance. For example, if you have $1,000 in a savings account with a 1% annual interest rate, you would earn $10 in interest over the course of a year. Savings account interest rates can be fixed or variable, with the latter changing based on market conditions.

    Compound Interest

    This is where savings accounts can truly shine. Compound interest means that you earn interest not just on your original deposit, but also on the interest that has been added to your account. This can significantly increase the amount of money you earn over time. For example, if you have $1,000 in an account with a 1% interest rate that compounds annually, after the first year, you’ll have $1,010. In the second year, you earn interest on $1,010, not just your initial $1,000. This compounding effect can occur daily, monthly, quarterly, or annually, depending on the bank’s policy.

    Annual Percentage Yield (APY)

    APY is a more accurate measure of your potential earnings than the simple interest rate because it takes into account the frequency of compounding interest. It’s the rate you would earn in a year if you left your money and the interest it earns in the account for the whole year. For example, a savings account with a 1% interest rate compounded monthly would have an APY higher than 1%, because each month’s interest would earn more interest in the following months.

    How Does a Savings Account Work?

    Operating a savings account is straightforward. After opening one at a bank or credit union, you can deposit funds and start earning interest.

    Depending on the bank, you can generally contribute to your savings using one or more of these ways:

  • Deposit cash or checks at the ATM
  • Deposits made with cash or checks at a branch ACH withdrawals from a connected bank account
  • Transfers via wire from a different bank account
  • Quick deposit
  • You may receive different savings account interest rates depending on the bank. APY, which considers compound interest, is what your savings effectively earn over a year. For example, a $1,000 deposit in an account with a 1.00% APY, coupled with monthly deposits of $100, would grow to $2,217 in a year – your initial deposit plus $2,200 in deposits and $17 in interest.

    When choosing a savings account, consider that the best online accounts often offer rates significantly higher than the national average. In 2024, for instance, some online savings accounts are offering APYs as high as 5%, compared to the average of 0.57%.

    What You Need To Consider When Picking The Best Savings Account

    How Much APY Does the Bank Offer?

    5% is the ideal return rate for savings accounts. Savings rates at physical banks are often more in line with the current 0.57% national average.

    Selecting an account that pays 5% on your $10,000 savings will earn you around $500 annually, whereas an account yielding 0.40% APY will earn you only $40. The more money you deposit and the longer you leave it in the report, the more significant the difference.

    Why Should I Care About Getting a Separate Account for My Savings?

    You should have a high-yield savings account if you can manage your budget such that you have money left over each month from your checking account — once more, consider around 5%.

    Putting money away for emergencies is always a good idea, and you’ll get far more interest on it in an account that earns one of the top savings account rates than you would in a checking account.

    Just make sure you have enough money saved to prevent incurring monthly costs. While many traditional accounts charge for them, most internet savings accounts don’t.

    How Often Do Interest Rates Change?

    Financial institutions often do not adjust savings rates on an hourly, daily, or even monthly basis. It’s not uncommon for APYs to stay the same for several months under typical conditions.

    It’s crucial to remember that rates are erratic and might alter at any time. Furthermore, many providers may adjust their prices in response to their rivals’ offerings. APY increases and decreases by provider groups frequently occur roughly simultaneously, mainly if the Federal Reserve has just raised or lowered interest rates.

    It’s a good idea to check out the best savings rates frequently, preferably once a month, to obtain the best return on your investment.

    American Express
    American Express® Savings Accounts

    Member FDIC

    OnlineFinance rating

    5.0

      /5

    APY

    4.35%

    With $1 min. balance for APY

    Bonus

    N/A

    at American Express National Bank

    ufb direct
    UFB Direct Savings Accounts

    Member FDIC

    OnlineFinance rating

    5.0

      /5

    APY

    5.25%

    With $0 min. balance for APY

    Bonus

    N/A

    at UFB Direct

    synchrony
    Synchrony Bank Savings Accounts

    Member FDIC

    OnlineFinance rating

    5.0

      /5

    APY

    4.75%

    With $0 min. balance for APY

    Bonus

    N/A

    at Synchrony

    discover
    Discover®: Savings Account

    Member FDIC

    OnlineFinance rating

    5.0

      /5

    APY

    4.35%

    With $0 min. balance for APY

    Bonus

    N/A

    at Discover Bank

    Benefits of Opening a Savings Account

    Starting with generating interest, there are several solid reasons to retain money in a savings account. You may earn interest on your money in savings accounts without doing any additional work. You still have to pay taxes on interest earned from savings accounts, so this isn’t exactly free money, but it is money you can make passively by saving consistently.

    Compared to other saving methods, savings accounts provide more liquidity and simplicity. Another choice for saving money is a certificate of deposit or CD for both short- and long-term aims. Additionally, a CD account may yield a higher annual percentage yield (APY) than certain savings accounts.

    There’s a catch, though: CD accounts are time deposits, which means that by opening one, you commit to leaving your money in the CD for a certain amount of time. Your money accrues interest while it is on the CD, but you are often only allowed to retrieve it after the CD matures without incurring penalties. In contrast, there are usually no penalties for making up to six monthly withdrawals from a savings account.

    A savings account is a secure method of putting money down for the future. Investing money can also contribute to its growth, but there is risk involved with purchasing stocks or mutual funds. Safekeeping and a steady rate of return are features of savings accounts.

    As opposed to investments, savings accounts are typically covered by the National Credit Union Administration (NCUA) at credit unions and the Federal Deposit Insurance Corporation (FDIC) at banks. With this insurance, your savings—up to a maximum of $250,000 per depositor, per account ownership category—are safeguarded even if your bank or credit union collapses.

    The Bottom Line

    The best savings accounts in 2024 offer a unique blend of high annual percentage yields (APY), security, and convenience, making them an excellent choice for growing your savings. With top contenders like American Express National Bank, Synchrony Bank, Marcus by Goldman Sachs, SoFi, and Capital One 360, savers can benefit from competitive savings account interest rates significantly above the national average, no monthly fees, and the assurance of federal insurance.

    Savings accounts stand out for their easy accessibility and additional features like vast ATM networks and robust customer support. Whether for short-term savings or long-term financial goals, these accounts provide a safe, lucrative, and flexible way to manage your money. It’s essential to stay informed about the ever-changing interest rates and to choose an account that aligns with your financial objectives and savings habits. In an economic landscape where traditional savings rates lag, these best high-yield savings accounts offer a promising avenue for new and seasoned savers to maximize their financial growth.

    Frequently Asked Questions (FAQs)

    Most savings accounts have no monthly fees. As your money accrues interest, your balance may increase after depositing.
    Yes, as long as the National Credit Union Administration or the Federal Deposit Insurance Corporation protects your funds.
    Yes, interest earned on savings accounts is taxed. If you made more than $10 in income during the tax year, you will likely receive a form from your provider disclosing it. A high-yield savings account will probably offer more interest.
    You can store money you don’t need for everyday expenses in a savings account. It might be an excellent place to save money for emergencies or money you’re saving for a particular purchase, such as a down payment on a home or a trip. The quantity of money you should keep in your savings account varies based on your circumstances because everyone has various savings goals. In contrast to most checking accounts, savings pay interest - money you get in your account for just maintaining it with the bank. Your savings account balance will increase more quickly the more significant the interest rate.
    Are you tired of long lines and limited banking hours? With 80% of Americans now opting for digital banking, it’s clear that the future of finance is going virtual. And the best part? You can access your accounts from anywhere, anytime, with just a few clicks, saving time and money right from the start. We understand that switching to a new system can be intimidating. That’s why we’ve created this guide to help answer all your questions and dispel any fears about going digital with your checking and savings accounts. From the convenience of 24/7 access to all the services you’d expect from a traditional bank, online banking is the intelligent choice for your financial future. So, what are you waiting for? Join the millions of Americans already experiencing the ease and simplicity of online banking. Apply today and enjoy all the benefits of virtual banking, including the best high-yield savings account rates.
    If you’re looking for a more convenient and cost-effective way to manage your finances, look no further than online banking. With various benefits ranging from lower fees to higher interest rates, it’s no wonder why 80% of Americans are making the switch. Here are five must-know tips to help you get the most out of your online banking experience: Save Money with Lower Fees: Say goodbye to high banking fees and hello to more money in your pocket. Online banks need to have the overhead costs of maintaining physical branches, allowing them to offer low or no fees to their customers. Earn More Interest: Boost your savings with Up To 4.80% APY rates online banks offer. With interest rates 1% to 2% higher than traditional banks, you could earn more in just a year. Discover the benefits of high-yield savings accounts and find the best high-yield savings accounts online. Access Your Money Anytime, Anywhere: Managing your finances doesn’t have to be a hassle. With online banking, you can access your accounts 24/7 from anywhere, and many online banks even offer ATM connections for easy withdrawals. Enjoy the convenience of high-yield savings accounts online. Enjoy a Better Banking Experience: Online banking dominates fintech, offering better customer service and a more comprehensive range of options than traditional banks. Whether you need assistance in the middle of the night or on the weekends, online banking provides a hassle-free experience. Consider opening a high-yield savings account for the best banking experience. One-Stop Shop for Your Finances: Online banks offer a variety of banking products, including checking, savings, and money market accounts. Capital One, for example, even provides auto loans, credit cards, and other banking products to keep all your finances in one convenient place. So, why wait? Switch to online banking today and enjoy the benefits of a brighter, more convenient financial future, including the highest high-yield savings account and interest rates.
    Our Best Choice Are there any disadvantages to having an online bank? One potential issue is limited liquidity. While you can easily access a few hundred dollars from an ATM, it might pose a challenge if you need a more considerable sum on the same day. To mitigate this, you can opt for an online bank with physical branches like Chase. Compare bank saving interest rates to find the best high-interest savings account. What’s the difference between net banking and mobile banking? Mobile banking refers to accessing your bank account through an app on your smartphone. In contrast, net banking refers to using the bank’s website on a computer. Both allow you to check your account balance, deposit checks, pay bills, and more. However, some banks may limit their mobile banking capabilities compared to net banking. Is it safe to use an online bank? Online banks are protected by FDIC insurance up to $250,000, just like traditional banks. However, any bank or financial institution with an online presence is vulnerable to cyber threats like hacking. To stay safe, don’t click on links in emails claiming to be from your bank, use a strong and unique password, and enable Two-Factor Authentication if available. Also, avoid logging into your bank account on public computers or Wi-Fi. Explore the safety measures and savings account interest rates offered by online banks. What are some ways to secure my online bank account? To keep your online bank account secure, you can adopt several practices, such as choosing a strong and unique password, enabling Two-Factor Authentication, avoiding logging in on public computers or Wi-Fi, and using your phone data or app to access your account at public places. Consider opening a savings account with high interest to maximize your savings.
    In conclusion, online banking offers several benefits, Banks such as American Express, Chase, Capital One, US Bank & Marcus by Goldman Sachs make it a superior option to traditional banking. With lower fees, higher interest rates, ease of access through ATM connections, better customer service, and a more comprehensive range of products, online banking has become the preferred choice for many. The FDIC insures online banks, and they have security measures to ensure your funds are secure. By being vigilant with password protection and avoiding public Wi-Fi access, online banking can be a convenient and safe way to manage your finances. So, you’re looking for a better banking experience. In that case, consider switching to online banking today and opening a high-interest savings account online.