The best savings accounts offer competitive interest rates, minimal fees and easy access to your funds. Get started with a savings account with Public.com.
Savings accounts are a fundamental tool for managing personal finances and achieving financial goals. Whether you're saving for a rainy day, a major purchase, or retirement, a savings account can help you grow your money over time. By opening a dedicated savings account, you keep your savings separate from the money you use to pay your bills.
Benzinga compiled a list of the top-rated banks with the best savings accounts on the market, so you can start maximizing your savings potential today.
Quick Look: The Best Savings Account Rates For July 2024
- Best for Trading Ideas: Public.com — 5.10% APY
- Best for No Maintenance or Service Fees: UFB Direct — 5.25% APY
- Best High Yield Savings Account For Travelers: Bask Bank — 5.10% APY
- Best for No Minimum Deposit: EverBank (formerly TIAA Bank) — 5.05% APY
- Best for Multiple Savings Options: CIT Bank — 5.00% APY
- Best for Easy Access to Your Funds: Synchrony Bank — 4.75% APY
- Best for High Yield Savings: Quontic Bank — 4.50% APY
- Best High-Yield Cash Account: Cove Capital Liquid Income — 4.47% APY
Best Savings Accounts
Choosing the right savings account can help you reach your financial goals faster. Below are some trusted banks with the best savings account rates this month.
1. Best for Trading Ideas: Public.com
Public.com is a unique social investing app that is changing the way people approach investing. One of the key benefits of using the platform is its commitment to transparency and security. Through partnerships with 20 banks, Public.com offers FDIC insurance coverage up to $5 million, exceeding the standard $250,000 limit of traditional savings accounts.
Public.com allows users to trade a wide range of assets like stocks, ETFs, crypto, bonds and options all in one place. But it also offers a feature wherein users can earn competitive interest rates on their savings account. This account features easy accessibility and no fees, with an Annual Percentage Yield (APY) of 5.10% available for compounding interest on savings.
Why We Love It: We love Public.com savings account because of its high APY, zero fees and no minimum balance requirements. This means you can keep more of your hard-earned money in your account, rather than seeing it disappear due to unnecessary fees and charges.
2. Best for No Maintenance or Service Fees: UFB Direct
With a UFB Direct Savings Account, you have the opportunity to earn up to 5.25% APY. Unlike some traditional banks, UFB Direct does not charge any monthly maintenance fees for their savings account and no minimum deposit requirement, making it a hassle-free way to save money. Also, it offers convenient and secure online banking capabilities, allowing customers to manage their money easily with 24/7 access through the website or mobile banking app. Customers can make deposits, withdrawals, set up automatic transfers, and track their savings goals seamlessly.
Why We Love It: UFB Direct Secure Savings Account offers one of the highest APY in the market, with no monthly maintenance fees. This means that you can keep more of your hard-earned money in your account, rather than paying fees to the bank.
3. Best High Yield Savings Account For Travelers: Bask Bank
When you open a savings accounts with Bask Bank, you can earn 5.10% APY with no monthly account fees and minimum balance requirement. The sign up process is simple and can be done entirely online in 15 minutes or less. Just visit their website, provide some basic information, and fund your account to start saving money and earning miles. With a user-friendly interface and excellent customer service, managing your savings with Bask Bank is convenient and hassle-free.
Why We Love It: Bask Bank offers users the opportunity to earn airline miles by saving money in their savings account. By simply keeping funds in the account, users can passively accumulate miles for future flights, upgrades, or hotel stays. It's a beneficial way to save money while also earning valuable miles for future travel opportunities.
4. Best for No Minimum Deposit: EverBank (formerly TIAA Bank)
EverBank is formerly known as the TIAA Bank. It's Performance Savings account lets you earn 5.05% APY on all balances. With the current low interest rate environment, finding a savings account that offers such a high APY is a rare opportunity. In addition to the high interest rate, the EverBank also offers no monthly maintenance fees, giving you the opportunity to save without worrying about additional costs eating into your earnings. Plus, with $0 to open a savings account, this account is accessible to all savers, whether you have a little or a lot to put away.
Why We Love It: With no minimum deposit required, EverBank welcomes everyone to take advantage of its high APY and fee-free structure.
5. Best for Multiple Savings Account Options: CIT Bank
CIT Bank offers flexibility with multiple savings account options. Depending on the type of account you open and the deposit amount, you could earn a higher APY if you carry a minimum balance or deposit $100 per month. You can earn 1.00% APY on their Savings Builder accounts or 4.65% APY on their Savings Connect accounts. Their Platinum Savings account lets you earn up to 5.00% APY on balances $5,000 and more.
Why We Love It: We love CIT Bank because it offers multiple savings account options to cater to a variety of needs and preferences. Whether you're looking for a simple, no-frills savings account or a more flexible savings account with higher interest rates, CIT Bank has a solution for you.
6. Best for Easy Access to Funds: Synchrony Bank
With Synchrony Bank, you can open a savings account online with no minimum deposit required. The bank offers 4.75% APY on their HYS accounts. Unlike other banks, you can access your savings and make purchases with an optional ATM card.
Why We Love It: Synchrony Bank offers a wide network of ATMs where you can access your funds without incurring any fees. This makes it easy to withdraw cash whenever you need it, even if you're traveling or in a different city.
7. Best for High Yield Savings: Quontic Bank
Quontic Bank is a modern, fully-digital bank with a variety of services and account options. Whether you are looking to save for a rainy day, a future milestone, or just want to start building your nest egg, Quontic Bank has a savings account that can meet your needs. The bank offers an APY of 4.50% and no monthly maintenance fees with a minimum opening deposit of $100. You can easily access your funds online or through the mobile app, making it convenient to manage your savings wherever you are.
Why We Love It: Quontic Bank offers convenient online banking services that make managing your savings account a breeze. You can easily access your account 24/7, check your balance, transfer funds, and set up automatic transfers to help you save even more.
8. Best High-Yield Cash Account: Cove Capital Liquid Income
- Best For:Optimizing Interest Earningssecurely through Cove Capital Liquid Income's website
Cove Capital Liquid Income asks you to make a $100,000 minimum initial deposit so that you can access an APY well over the national average that’s backed by real estate. This HYCA or high-yield cash account is more liquid than a traditional savings account. CCLI offers a high APY at 4.47%, which applies to the first $1 million in deposits.
Try these accounts if you’re quite risk-averse or want to maintain greater access to your funds.
Why We Love It: Cove Capital Liquid Income provides a unique investment opportunity that combines the stability of real estate with the potential for growth and income.
What You Need to Know About Savings Accounts
A savings account holds deposits that you don't plan to spend soon. Depending on the financial institution, you can open a savings account online or at a local bank branch or credit union. Savings accounts pay interest on your balance monthly. Your balance grows over time as you make deposits and earn interest and decreases if you withdraw funds.
Banks offer a variety of savings accounts to meet different financial needs.
- Traditional savings accounts: Most local banks and credit unions offer traditional savings accounts. Traditional accounts pay interest, but the rates are typically less than other savings account options.
- Online savings accounts: An online savings account works similarly to a traditional savings account, except that you manage your account online.
- High-yield savings accounts: A high-yield savings account pays a higher APY than a traditional one.
- Money market accounts: Combines the benefits of checking and savings into one account. You can write checks and make purchases while still earning your balance interest.
- Health savings accounts (HSAs): An HSA is a tax-advantaged account where you can save money for qualified medical expenses. Contributions made are deductible for tax purposes. Distributions are tax-free if the money is spent on qualified medical expenses.
- Joint savings accounts: Two or more people own and manage the funds in a joint savings account.
Pros and Cons of Savings Accounts
Before deciding to open a savings account, it's important to weigh the pros and cons to determine if it's the right option for you. Here are some of the benefits and drawbacks:
Pros
- Easy way to earn money on your balance without doing anything
- Less risky than investing in stocks or mutual funds, which can lose value if the market experiences a downturn
- Safe way to set money aside for future financial goals, such as a down payment on a home or your child’s education
- Most savings accounts are FDIC-insured, which protects up to $250,000 of your deposits
Cons
- You could be penalized if you make too many monthly withdrawals from your savings account.
- The interest rates are variable and subject to change.
- Some savings accounts require a minimum balance. You could be charged a fee or earn a lower APY if you fall below the minimum.
- You may incur monthly maintenance fees.
How to Choose the Best Savings Account
Savings accounts offer different features. Keep your financial goals in mind when shopping around for a savings account. Here are some key factors to consider when choosing the best savings account for you:
- Interest rate: The higher the interest rate, the more you will earn on your savings over time. Look for a savings account that offers a competitive interest rate that will help your money grow faster.
- Fees: Some savings accounts come with monthly maintenance fees or other fees that can eat into your savings. Be sure to read the fine print and understand any fees associated with the account. Look for accounts that have no or low fees to maximize your savings.
- Minimum balance requirements: Some savings accounts require a minimum balance to open the account or to avoid fees. Make sure you can meet the minimum balance requirements before opening an account to avoid any penalties.
- Accessibility: Consider how easily you can access your savings when choosing a savings account. Look for an account that offers convenient access to your funds through online banking, mobile banking, ATM access and branch locations.
- FDIC Insurance: Make sure any savings account you choose is FDIC-insured, which means your deposits are protected up to the maximum limit per depositor, per insured bank.
- Additional features: Some savings accounts offer additional features such as automatic savings tools, round-up programs, or rewards programs. Consider whether these features are important to you and align with your savings goals.
How to Open a Savings Account
You can open a savings account online or at your local bank or credit union. You must provide personal information such as your name, address, birth date and Social Security number. You’ll need to provide proof of your identity, such as a driver’s license or passport.
You’ll need to deposit money into the savings account once it has been opened. If you open your savings account at a local bank or credit union branch, you can fund your new account with cash, check or by transferring money from another bank account. When transferring funds to open an online savings account, you typically link to another bank account.
Alternatives to Savings Accounts
While savings accounts are a safe and secure option for storing money, they often offer low interest rates, which means your money may not grow as quickly as you would like. If you're looking for alternatives to savings accounts that offer higher returns, there are several options to consider.
- High-yield savings account: These accounts offer higher interest rates than traditional savings accounts, typically offered by online banks with lower overhead costs. They are a good option for short-term savings goals.
- Money market account: These accounts offer higher interest rates and more flexibility than traditional savings accounts, with higher minimum balance requirements.
- Certificate of deposit (CD): These accounts are a savings alternative offering higher interest rates. By depositing a fixed amount for a set period, you earn more interest than in a savings account, although early withdrawal can result in penalties.
Grow your Earnings with the Best Savings Account
Opening a savings account can help you reach your financial goals. You can develop the discipline of setting money aside for the future, plus watch your balance grow as you earn interest monthly. Savings accounts are a useful tool to set a solid foundation for your finances.
Frequently Asked Questions
Is my money safe in a savings account?
When you deposit money into an FDIC-insured savings account, up to $250,000 of your funds per account type are insured in case of a bank closure.
Are there any tax obligations associated with savings accounts?
The interest you earn on deposits held in a savings account is taxable. You’ll need to report these on your tax return and pay any tax owed.
How much money should you keep in a savings account?
The amount of money to keep in a savings account depends on your financial situation. To protect against financial emergencies, you can build up your savings to cover at least three to six months of expenses.
Which bank is giving 7% interest in savings account?
As of now, there is no bank that offers a 7% interest rate on savings accounts. Interest rates for savings accounts are currently much lower due to the overall low interest rate environment. It’s important to research various banks and compare their interest rates to find the best option for maximizing your savings.