Do you know how to choose the best savings account for your valuable income? Online banks typically provide the best higher interest rates than other banks. They are able to do so because their overhead costs are typically lower. Online banks, like traditional banks, need a way to attract your money, so they often provide better yields than traditional banks.
Banking with an online bank that is a member of the Federal Deposit Insurance Corp. (FDIC) can be a good way to generate a greater rate while also ensuring your money is safe. Just make sure you stay within the FDIC’s recommendations and boundaries.
2021’s best online savings accounts and rates
Bankrate’s picks for the greatest commonly accessible savings account rates from top online banks are listed below.
Community Direct – Best Overall Rate
Community Direct was founded in 2018, and its High-Yield Savings Account debuted in April 2019. It is a Comenity Capital Bank brand. Bank’s co-branded, private label, and business credit card programs are its most well-known offerings. On those credit cards, Comenity Bank and Comenity Capital Bank collaborate with over 160 retailers worldwide.
Community Direct offers one of the highest APYs on the market. Customer service agents are also available by phone from 7 a.m. to 11 p.m.Central time Monday through Friday. Telephone lines are open from 9 a.m. to 5 p.m. Midsummer on weekends and most holidays.
The Comenity Direct mobile app is also available. You can use this to withdraw deposits and money. The app, which is available for ios and Android, also allows you to contact customer service and view your account balance.
Vio Bank – 0.53% APY, $100 minimum
Vio Bank, which was introduced in 2018, is MidFirst Bank’s national online division. According to the FDIC, MidFirst Bank has been an FDIC-insured bank since 1934 and was founded in 1911. Vio Bank provides CDs as well as a High Yield Online Savings account.
The High Yield Online Savings account from Vio Bank offers one of the greatest effects usable, and all balances are eligible for this APY.
It also has a low opening balance requirement of $100. Vio bank this account is no monthly fee for this account. Incoming domestic and international wire transfers are free of charge. There are no fees for either outgoing or incoming exterior transfers. However, sending a domestic wire transfer costs $30.
Ally Bank – 0.50% APY
Ally Bank was founded in 2004 and is based in Sandy, Utah. GMAC Bank changed its name to Ally Bank in 2009. According to its 2019 annual report, Ally Bank surpassed 1 million Ally Bank customer accounts in 2012 and now has around 2 million customers.
With Ally eCheck Deposit, you can deposit checks from anywhere in the world. In addition, there are no monthly maintenance fees with the Online Savings Account. Ally Bank also offers live customer service 24 hours a day, seven days a week.
Citibank – 0.50% APY
Citibank, Citigroup’s retail banking arm, launched Citi Accelerate, a high-yield savings account, in 2019.
The account pay substantially more than the national average and noticeably more than most of the nation’s largest banks’ savings rates. There is no minimum balance required to earn the APY or to open an account. However, the APY is only usable in a few markets.
If you’re a Citi customer or looking for an account at a bank with a large national presence, this high-yield savings account may be worth investigating.
The APY is among the highest available at a large bank, and the $0 minimum balance required to earn the APY makes it simple for anyone to begin saving.
Marcus by Goldman Sachs – 0.50% APY
Goldman Sachs, a very well-known investment firm, launched Marcus as its consumer banking arm. Marcus has established a reputation for offering a marketable APY. Moreover, opening an account with Marcus is easy to transfer money to other banks’ accounts.
Marcus’ savings account needs no minimum deposit to open and no minimum to obtain the APY, and Marcus provides customers with more than just savings products. It also offers a variety of personal loan choices, ranging from debt consolidation to home repair.
American Express – 0.40% APY
The most well-known product of American Express is its credit cards. However, it also provides a competitive savings account. There are no fees with this account, and you can link it to an external bank account. In addition, the company sells a variety of CDs.
American Express’s online high yield savings account offers a competitive rate. There are no monthly fees, and there is no minimum balance requirement. If you have multiple accounts that you want to view on one platform, the ability to link current bank accounts is a simple solution.
Capital One – 0.40% APY
Capital One offers a variety of banking and lending products in addition to credit cards. It also offers CDs, a savings IRA, and a checking account, in addition to the 360 Performance Savings account, which debuted in September 2019.
Benefits: The Capital One 360 Performance Savings account does not charge a monthly fee and does not require a minimum balance when you open the account. In addition, there is no minimum balance requirement in this account, and all balances earn the same APY.
Discover Bank – 0.40% APY
Since 2007, Discover Bank has offered deposit products online. Of course, discover’s most well-known product is its credit cards. It does, however, provide a savings account, a money market account, a checking account, and CDs.
The Discover Online Savings Account does not have the highest yield. However, it has a very competitive APY, no minimum opening deposit, and no monthly fee.
How to Choose the Most Suitable Savings Account
Already before you glance at the APY on a savings account, ensure you have enough money to open the account and that you can keep the minimum balance necessity (if there is one). Verify to see if the bank charges account fees as well. Even if you have a high-yielding account, monthly maintenance fees can result in a loss of interest earnings or even some of your principal.
The good news is… It is simple to find an account that will allow you to earn a high APY while avoiding costly fees. Here are a few other factors to consider when selecting your next high-yield savings account: platform.
- Low fees: Look for an account that does not charge any fees. Alternatively, if it charges fees, ensure that you will be consistent with the requirements in order to avoid paying them and having them waived.
- High APY: Look for the best APY that will give you the most money back on your savings. If that account isn’t a better match for you, there are plenty of other banks with competitive yields to regard. Online banks typically provide the highest rates because they have lower overhead costs than traditional banks.
- Simple withdrawals and deposits: A savings account is designed to help you grow your money. However, your money must be available when you need it. Banks will allow you to access your savings in a variety of ways. For example, several banks, for e.g., offer Zelle, which allows you to send money to people you know via an app. Some banks issue ATM cards that allow you to access your funds.