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The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
Guides
The best high-yield online savings accounts of 2019
Michelle Lambright Black, Founder of CreditWriter.com and HerCreditMatters.com, is a leading credit expert with over a decade and a half of experience in the credit industry. She’s an expert on credit reporting and scoring, credit cards, identity theft, budgeting and debt eradication. Michelle is also an experienced personal finance and travel writer. You can connect with Michelle on Twitter (@MichelleLBlack) and Instagram (@CreditWriter).
November 16, 2019 • 8 min read
The cards we feature here are from partners who compensate us when you are approved through our site, and this may impact how or where these products appear. We don't cover all available credit cards, but our analysis, reviews, and opinions are entirely from our editorial team. Terms apply to the offers listed on this page. Please view our advertising policy and product review methodology for more information.Editorial disclaimer: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, airline or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.
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By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
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Quick summary
A variety of online savings accounts now offer higher interest rates and fewer fees compared to traditional banks.
Options differ in features such as ATM access, mobile apps, customer service availability and minimum deposit requirements.
Some accounts provide introductory rates or require specific actions to maintain top interest rates.
Choosing the right account depends on your priorities, such as high interest, low fees or digital banking tools.
What to consider
Certain accounts require minimum deposits or ongoing monthly deposits to access the highest interest rates.
ATM access, mobile app functionality and physical branches vary significantly between providers.
Introductory interest rates may decrease after a set period unless additional requirements are met.
What you'll miss from the article
A detailed comparison of leading online savings accounts, including pros, cons and unique features for each option.
Generated by AI with support from our editorial team.
Update: Some offers mentioned below are no longer available. View the current offers here.
Your savings play an important role in helping you reach your financial goals. A well-managed, well-funded account can help to protect you during an emergency. It can also help you plan ahead for big expenses so you don’t go into debt when you need to make a large purchase.
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There’s no question that a good savings account can help you get ahead financially. Unfortunately, many banks have a bad reputation for charging high fees and paying low interest rates. If this seems unfair to you, you’re right.
Here’s the good news. Traditional banks aren’t your only option when it comes to savings accounts. There are a number of online banks that break the mold and offer better experiences to their customers. If you’re tired of accepting the status quo from your current savings account, it might be a good time to consider alternatives.
Here’s a guide to some of my top picks for the best savings accounts.
Axos High Yield Savings
Axos Bank offers a high-yield saving account that earns an APY of 1.30%. If you’re considering this option, you’ll need a minimum of $250 to open a new account.
Pros
Earn 1.30% APY on your account balance
Both savings and checking account options are available
No monthly maintenance fees
No minimum balance
Enjoy ATM access and ATM fee reimbursements
Mobile app available for iPhone and Android
Cons
Axos offers lower APY compared to other high-yield savings account options
No branches
Like any other savings account, federal law limits you to a maximum of six withdrawals and/or transfers per month
Although Axos doesn’t offer the highest rates among high-yield savings account providers, the account may still be a good fit for some people. If you value a higher APY than most brick-and-mortar banks provide, want to avoid fees (with no hoops to jump through to qualify for the benefit) and like the ability to have a savings and checking account at the same bank, Axos is worth considering. Axos checking accounts come with rewards-earning potential and domestic ATM reimbursements that can make a savings and checking account with the bank a nice combination.
Marcus by Goldman Sachs High-Yield Online Savings Account
Marcus offers a 1.90% APY rate on its high-yield online savings account. The company’s tagline proclaims: “Don’t just store money. Make money.”
Pros
Earn 1.90% APY with a balance of at least $1 or higher in your account
Pay no monthly service fees
Link to your account at another bank to transfer funds back and forth for free
No minimum deposit required to open an account
Customer service with no automated phone systems during regular business hours
Cons
No ATM card
No mobile app
No physical bank branches
No customer service chat
Customer service phone support isn’t available 24 hours a day
This account may be best for people who wish to earn competitive APY rates on their savings account balance. However, people who need ATM access or physical branches with face-to-face banking may not be happy with Marcus by Goldman Sachs for their savings account.
State Farm Bank Money Market Savings Account
If you’re interested in earning better interest rates on your money, another high-APY savings account to consider is State Farm’s money market savings account. The bank currently offers a 2.00% APY for the first 12 months after you open a new consumer money market savings account.
Pros
Earn 2.00% APY on your account balance
Write checks, transfer funds, and/or withdraw money from your account
The $10 monthly fee on the account will be waived if you maintain a minimum average daily balance of $500 or more
No minimum balance fee charged if you use direct deposit
ATM fees are reimbursed 100% (provided you have a direct deposit via ACH credited to your account during each statement cycle)
Cons
Minimum opening balance of $1,000 is required
Once the 12 month introductory period ends, you’ll earn the lower “standard” APY rate unless you sign up for a qualified checking account and meet certain requirements ($2,500 daily balance or 10 withdrawal transactions per month)
There are no physical bank branches
You’ll be charged a monthly fee if your minimum average balance falls below $500
This account may be best for people who appreciate competitive interest rates on their savings account balance. Also, people who frequently use ATMs can continue to do so without paying fees.
Ally Bank
Another popular online savings account option you might want to take a look at is offered by Ally Bank. It offers a high APY, no monthly fees and ATM access.
Pros
Earn 1.80% APY on your savings account balance
No monthly fees
No minimum balance is required to open or maintain the account
Access more than 43,000 ATMs free of charge
Receive reimbursement for up to $10 in out-of-network ATM fees each month
The account comes with a checkbook
Chat, phone, and email customer service support available 24/7
Cons
No option to deposit cash
You can find slightly higher APYs elsewhere
This account may be best for people who enjoy no monthly fees without having to jump through any hoops. Additionally, the ability to write checks and access your money easily through an ATM may be a selling point to anyone who values these features.
CIT Bank Savings Builder Account
For people who value a high APY above all else, CIT Bank offers an interest rate that’s hard to beat. As an online bank with lower costs than traditional banks, it passes on a portion of the money it saves on overhead to its customers.
Pros
CIT’s Savings Builder account offers a high 2.10% APY, making it one of the most competitive savings account interest rates available
Mobile app is available on Apple and Android devices
No monthly fees are required to maintain the account
No account opening fees
No fees for online transfers
Cons
The impressive 2.10% APY comes with some strings attached (make a single deposit of at least $100 or more per month or maintain a balance of at least $25,000 to earn that high APY)
A minimum of $100 required to open the account
CIT Bank does not offer a companion checking account
This account might be best for people who want a free savings account that earns exceptionally high interest on their balances.
Capital One 360 Savings Account
If you’re a fan of high-tech banking, Capital One might be a great fit for you. The bank’s robust app allows you to set savings goals, track your progress and manage your account in ways that many other banks listed here do not.
Pros
Earn 1.90% APY on your savings account balance
Has a top-rated mobile app that lets you deposit checks remotely
No monthly account fees
No minimum balance requirement to open or maintain your account
Transfer funds free of charge
Automatic savings plans
Open up to 25 savings accounts to separate your savings goals
Deposit cash or checks at a Capital One branch
Cons
Although Capital One does offer some in-person branches, locations are limited
No debit or ATM cards available
You might earn a higher APY with another financial company
Four-day hold on checks deposited or transfers into your account that are initiated by Capital One
People who want to open multiple accounts at the same bank to separate their savings goals are in luck with this account. Also, with a 1% APY the account still offers a rate that outshines most traditional banks. If you’re a Capital One Bank fan but you’re interested in earning a higher APY, you can always check out the bank’s 360 Money Market Account, which offers interest rates of up to 2%.
How do you choose the best?
Depending on who you ask, you might find a dozen different answers to the question, “Which savings account is best?” However, the question you really should be asking is: “Which savings account is best for me?”
Many of the alternative saving accounts listed here offer higher interest rates than traditional banks. They may also lack services like access to ATMs and branches. Still, some have impressive mobile banking apps and other features you might appreciate.
If you’re trying to choose the best savings account for you, try this approach. Write down the features that are the most important to you; then compare what’s available.
Whether you’re interested in higher interest rates, superior customer service, no fees, convenient mobile-app capability or something else, you’ll likely find a bank that can give you what you value most.
The information for these offers has been collected independently by The Points Guy. The banking details on this page have not been reviewed or provided by the account issuers.
Comments
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
