Best Savings Accounts For December 2024 [As High As 4.75%!]

Benzinga's top picks for the best savings accounts for this month include Public.com and EverBank.

The best savings accounts are essential tools for maximizing your earnings, as they often offer competitive interest rates that can significantly enhance your savings over time. These bank accounts typically come with minimal fees, ensuring that you keep more of your hard-earned money while still having easy access to your funds for various financial goals such as emergency fund, vacations, or retirement planning.

The recent decision by the Federal Reserve to cut interest rates by 50 basis points reflects its response to shifting economic conditions, particularly in light of prior increases aimed at controlling inflation. By lowering the Federal Funds rate, the Fed aims to stimulate borrowing and spending among consumers and businesses, ultimately fostering economic growth. Choosing the right savings account is essential, as a high interest rate can boost savings growth, while associated fees can diminish earnings.

Benzinga has curated a list of the best savings accounts available this month to help you narrow down your options and and start growing your wealth.

Quick Look at the Best Savings Accounts:

• Best for Trading Ideas: Public.com — 4.35% APY
• Best for No Minimum Deposit: EverBank (formerly TIAA Bank) — 4.75% APY
• Best High-Yield Cash Account: Cove Capital Liquid Income — 3.73% APY
• Best High Yield Savings Account For Travelers: Bask Bank — 4.65% APY
• Best for Multiple Savings Options: CIT Bank — 4.55% APY
• Best for No Maintenance or Service Fees: UFB Direct — 4.31% APY
• Best for Easy Access to Your Funds: Synchrony Bank — 4.10% APY
• Best for High Yield Savings: Quontic Bank — 4.00% APY
• Best for Free Credit Building: Step — 4.00% APY

Best Savings Accounts

Choosing the right savings account can help you reach your financial goals faster. Below are some trusted banks and financial institutions with the best savings account rates for this month.

1. Best Savings Account 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 insurance coverage up to $5 million, exceeding the standard $250,000 limit from the Federal Deposit Insurance Coverage (FDIC) per depositor, per insured bank for 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 bank account features easy accessibility and no fees, with an Annual Percentage Yield (APY) of 4.35% available for compounding interest on savings. This means that the sooner you start saving, and the longer you leave your money to grow, the more significant your financial returns can be, making compound interest a powerful tool for building wealth over time.

Why We Picked It: With its high APY, zero fees and no minimum balance requirements, Public.com allows you to keep more of your hard-earned money, rather than seeing it disappear due to unnecessary fees and charges.

2. Best Savings Account for No Minimum Deposit: EverBank (formerly TIAA Bank)

EverBank is formerly known as the TIAA Bank. It's Performance Savings account lets you earn an annual percentage yield of 4.75% on all balances. With the current low interest rate environment, finding a savings account that offers such a high annual percentage yield 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 bank account is accessible to all savers, whether you have a little or a lot to put away. Also, your deposits enjoy automatic insurance coverage by the Federal Deposit Insurance Corporation (FDIC).

Why We Picked It: With no minimum deposit required, EverBank welcomes everyone to take advantage of its high APY and fee-free structure.

3. Best High-Yield Cash Account: Cove Capital Liquid Income

Cove Capital Liquid Income asks you to make a $100,000 minimum initial deposit so that you can access an annual percentage yield well over the national average that’s backed by real estate. This high-yield cash account or HYCA is more liquid than a traditional savings account. CCLI offers an APY of 3.73%, 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 Picked It: Cove Capital Liquid Income provides a unique investment opportunity that combines the stability of real estate with the potential for growth and income.

4. Best High Yield Savings Account For Travelers: Bask Bank

When you open a savings accounts with Bask Bank, you can earn 4.65% 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 Picked It: Bask Bank offers users the opportunity to earn airline miles by saving money in their Interest 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.

5. Best for Multiple Savings Account Options: CIT Bank

CIT Bank offers flexibility with multiple savings account options. Depending on the type of savings account you open and the deposit amount, you could earn a higher annual percentage yield if you carry a minimum balance or deposit of $100 or more per month. You can earn 1.00% APY on their Savings Builder accounts or 4.20% APY on their Savings Connect accounts. Their Platinum Savings account lets you earn up to 4.55% APY on balances $5,000 and more. CIT Bank also features a mobile app which allows you to deposit checks and transfer funds with ease.

Why We Picked It: CIT Bank 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 Savings Account for No Maintenance or Service Fees: UFB Direct

With a UFB Direct Savings Account, you have the opportunity to earn an annual percentage yield of up to 4.31%. 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.

UFB Direct also allows you to combine your savings account with you checking account. This bundle lets you boost your savings by 0.20% to achieve a total annual percentage yield of up to 4.51%. UFB Direct also provides mortgage loans, portfolio loans and home equity lines of credit (HELOC) alongside its deposit accounts.

Why We Picked It: UFB Direct Savings Account offers one of the highest APY in the market, with no monthly maintenance fees. Plus, you can enjoy hassle-free banking with their online and mobile banking features.

7. Best Savings Account 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 4.10% APY on their high-yield savings accounts. Unlike other banks, you can access your savings and make purchases with an optional ATM card. Synchrony Bank also offers other deposit account products including Certificate of Deposit (CD) and Money Market Account (MMA).

Why We Picked 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.

8. 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 annual percentage yield of 4.00% and no monthly maintenance and overdraft 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 Picked It: With its convenient online banking services, this bank makes managing your savings account a breeze. You can easily access your Quontic Bank Savings Account 24/7, check your balance, transfer funds, do mobile check deposits, and set up automatic transfers to help you save even more.

9. Best for Free Credit Building: Step

Step is more than a savings account that gives you and annual percentage yield of 4.00% when you save your cash. There’s also a rewards card that doesn’t cost anything else. You can sign up for the secured card, add the money you need, make purchases and help build your credit. Plus, you can choose to save the rewards you get back and further improve your financial status.

Why We Picked It: It’s two applications in one, and it’s all contained in one app. This is a good choice for teenagers, new workers and anyone who needs to save or build their credit.

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 insured by the Federal Deposit Insurance Corporation (FDIC), 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.

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. 

Savings Accounts Fees

Here are some common fees associated with savings accounts:

• Maintenance fees: Some banks charge a monthly maintenance fee for keeping a savings account open. This fee can vary depending on the bank and the type of account you have. To avoid this fee, look for savings accounts that have no monthly maintenance fee or meet the requirements to have this fee waived, such as maintaining a minimum balance.
• Excess withdrawal fees: Savings accounts are typically limited to a certain number of withdrawals per month, as mandated by federal regulations. If you exceed this limit, you may be charged an excess withdrawal fee. Be mindful of how often you withdraw money from your savings account to avoid these fees.
• Minimum balance fees: Some savings accounts require you to maintain a minimum balance in order to avoid fees. If your balance falls below this threshold, you may be charged a fee.
• Transfer fees: If you transfer money between accounts or make external transfers from your savings account, you may be charged a fee. Consider consolidating your accounts or limiting transfers to avoid these fees.
• ATM fees: Some banks charge fees for using an ATM to withdraw money from your savings account. To avoid these fees, use your bank's ATM network or opt for cash back at the point of sale when making purchases.

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:

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