Discover the best banks to save, see the top 7 banks of the year 2021.
According to the FDIC, the average national savings rate is 0.05%. That means the best online savings accounts today pay about 20 times the national average! Thanks to the low interest rate environment, it’s not surprising that my clients have complained in recent years that their savings accounts pay next to nothing, even with the best high-interest banks.
As painful as it is in the interest rate situation, switching to a high-interest savings account to save some money for a future financial goal, or in an unexpected emergency, a step in the cross-lever you should take today.
There are many online banks that offer excellent terms. Don’t leave your money in a savings account that is depleted by annual fees. You shouldn’t have to pay to rest your money. All the banks on my list are great places to keep your money. Each can have different benefits, which are described below.
The best online savings accounts
If you are looking for a bank that you can invest your savings in at very high interest rates, visit Discover Bank. No minimum balance is required to open the account and there are no monthly maintenance fees. It also offers 24/7 online access to your funds, online transfers to and from other banks and direct deposits. As with all savings accounts and money markets at all banks, withdrawals and outgoing transfers are limited to a maximum of six per monthly billing cycle.
CIT Bank is a great option if you are looking for a bank to store some of your money on a rainy day. CIT Bank is in the upper interest range and ahead of almost everyone else.
In addition to their high interest rate, they also offer a bonus rate for customers who have saved more than $25,000. CIT is also great for your deposits. You can fund or add deposits to your account using a simple online transfer from your current bank, postal check or wire transfer. Read our full review.
I mean serious? How can you not love this? A bank fighting banks that cheat customers will always have my vote. Ally also offers a robust line of products ranging from checks and savings to CDs, IRAs and other credit and investment options.
BBVA (formerly BBVA Compass) offers a wide range of products and services, from small loans to online savings accounts (because that’s why you’re here, isn’t it?). BBVA is not the best known bank on our list; However, they are one of the largest commercial banks in the US by deposit market share. If you’ve never heard of BBVA, take the time to familiarize yourself with the organization. Read our full review.
HSBC offers consistently high interest rates on its savings accounts. They also offer checking accounts, loans and mortgages, investment and retirement accounts, and insurance. This is what you get with a high-yield HSBC online savings account:
High interest rates. HSBC strives to be competitive on interest rates in order to attract new customers. Low minima. $1 to open an online account for all savings, at least $1 credit to get APY as daily savings. Easy access. Many online banks only allow transfers. Read on and discover the top 7 banks and save on interest.
See more about the top 7 banks
In addition to being an exceptionally reputable organization, like an online savings account, the USAA offers several unique benefits that the other banks on this list don’t. You can get a wide variety of different products from the USAA. They have just about every financial or insurance product you could ever need, and having all your accounts and products in one place is a tremendous benefit.
Here’s what you get with a USAA online savings account:
- Free Access to Virtually Any ATM – No Fees for Withdrawals at 60,000+ USAA Preferred ATMs. They also reimburse you for non-preferred ATM fees.
- Low Initial Deposit – Similar to some other accounts, USAA requires an initial deposit, but it’s only $25.
- No Fees – With a USAA savings account, there are no service fees or fees when sending money to another bank.
- Capital One
Capital One 360 (formerly ING Direct) was one of the first reputable online banks to exist. Capital One 360 is easy to use, secure, and you can link your account to other accounts, including your Capital One Investing account.
Extremely competitive interest rates. No Minimum Amounts – As with Ally, there is no minimum balance fee and you can open an account for just $1. Easy Deposit Options – Opening an account is very easy – just link an account to another institute’s checking account as you would any national bank.
Easy Access and Simple Administration – The Capital One 360 user interface is one of the best around. One of Capital One 360’s unique offerings are sub-accounts, where you can open mini-accounts to maintain your money-saving goal. Therefore, you can have a main savings account, but also mini accounts for holiday fund, emergency fund, etc.
Other Account Options – They offer a wide range of accounts ranging from checks to savings accounts, CDs, mortgages and investments.
Options with great savings and high yield
- Digit.co – a new option
Another interesting saving option is Digit.co.
This is a bank that uses an algorithm to determine how much money is transferred from your checking account to your savings account every few days. By monitoring your income and spending habits, Digit.co can determine how much extra money to use to save.
Digit promises that their automated transfers will not keep your account under control. The interest paid is very small, but it exists. This is an account for those who want to save without thinking twice.
Accessing your money is easy; everything is done through text. You send an SMS with simple commands to change the amount of your savings, check your balance and withdraw to your own account.
In most cases, once you send a text message that you want to withdraw, the money will be there in a day or two. This is a great account to spend an evening or other entertainment every month.
- American Express
American Express, the credit card company that offers a fantastic refund, now has a bank branch that offers high interest rates on your account.
Prices are currently very competitive with some of the biggest and most popular online banks. Account access isn’t as demanding as other banks, but you don’t need this sophistication if you’re just looking for a solid place to keep some of your money.
More options from the top 7 banks
If American Express Savings offered a complete set of financial products, such as mortgages and checking accounts, in addition to the savings account and CD, I would be more concerned about the site. But this is a very simple product: deposit money, earn interest, watch the growth. Read on and discover the top 7 banks and save on interest.
AMEX also has a 36 month CD on which you can deposit your money for a slightly bigger return. However, the difference is so small that I don’t recommend blocking your money for 3 years.
This is what you get with the AMEX High Interest Savings Account:
- High Interest Rates – To attract customers, American Express typically offers some of the highest interest rates available.
- Simple Options – You have two account options: High Interest Savings and Certificate of Deposit. Two simple options instead of a series of confusing options.
- No minimum number – You have no minimum balance and you will not be charged if your balance gets too low.
With so many ways to store money and the low interest rates, many of my clients ask themselves: What do I need a savings account for? and frankly that’s a good question.
The first reason is the most obvious – getting a little higher interest rate and earning a little interest is better than nothing, right? But the interest you earn isn’t the only reason to find a good savings account online.
The other reason is a little more obvious, forcing you to save that money. Federal regulations limit the number of withdrawals from your account. If you are unable to withdraw funds from your account, this will encourage you to save.
There are hundreds of thousands of places to open a savings account, but they all fall into three main categories: traditional savings accounts, online savings accounts, and children’s savings accounts. Many of them also offer a money market. If the MMA account offers a higher interest rate, we will list it in place of the savings account option.
Saving up for future purchases and expenses is one of the best things you can do to stabilize your financial situation. Instead of spending money on loans (and going into debt if you don’t pay the balance every month), identify your spending goals and save to buy what you want – without ruining your financial future.
You should also understand that having an emergency fund ready for a rainy day can be a good idea. What if the car needs repairs or you need to replace the dryer? An emergency fund can save you from having to apply for a loan to cover these unexpected expenses.