Saving money is good, but you might want to grow it while it sits in your account. You might be saving money to build an emergency fund or tuck away extra cash for future plans. You should know that where you keep your savings matters. Some accounts offer better interest rates, fewer fees, and smarter features that help your money work for you.
Traditional savings accounts from big banks often offer low interest that can be as little as 0.01%. In contrast, high-yield savings accounts can offer 4% or more, depending on the bank and market conditions. Thus, your $5,000 savings can help you earn more in a high-yield account without doing anything different.
Choose Online Banks
Online banks can offer more competitive APYs and fewer fees without the overhead of physical branches. Some popular online savings accounts include:
- Ally Bank. This digital bank is known for its user-friendly experience and no monthly fees. It offers a competitive APY and makes transfers between accounts quick and easy.
- Synchrony Bank. This bank regularly ranks near the top for interest rates and has no minimum balance requirement.
- Marcus by Goldman Sachs. Marcus offers strong interest rates with no fees and is backed by a reputable name in finance.
- American Express® High-Yield Savings Account. This savings option does not come with a checking account, but it is solid for people who want to grow their savings without too many extras.
Each of these accounts is FDIC insured, which means your money is protected up to $250,000 per depositor.
Look for Low or No Fees
High interest means nothing if fees are eating into your earnings. Some banks charge monthly maintenance fees, minimum balance fees, or withdrawal penalties. Make sure you are choosing a savings account that keeps your money growing.
Most online savings accounts do not charge monthly fees. But you should still double-check the fine print.
Consider Ease of Access
Growing your money is the main goal, but you still want to be able to access your funds when you need them. Some savings accounts limit the number of withdrawals you can make each month or take longer to transfer money to your checking account. Choose an account that allows free, quick transfers or offers a mobile app that makes managing your money simple if you prioritize fast access.
Consider Savings Accounts with Built-In Automation
Some banks offer smart features like automated savings tools that make building your balance effortless. Below are tools that can help keep your savings on track, especially if you are working toward multiple goals.
- Chime. This rounds up your purchases and deposits the change into your savings account.
- SoFi. This offers vaults within your account so you can organize your savings by goal.
- Capital One 360. This allows you to set up multiple savings buckets with automatic transfers, so you stay on track without having to think about it every week.
Don’t Forget Credit Unions
Many credit unions offer high-interest savings accounts with strong customer service and fewer fees. Consider them if you are eligible to join. Some also offer interest rates that rival or beat online banks.
