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Amex EveryDay® Credit Card or Amex EveryDay Preferred® Credit Card: Which Should You Use?

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners. This site may be compensated through a credit card partnership.

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If you spend a lot on groceries each month, you should consider a credit card that can put some of that cash back in your pocket, such as The Amex EveryDay® Credit Card from American Express or The Amex EveryDay® Preferred Credit Card from American Express.

When deciding which of these cards is a good fit for you, in addition to how much you can earn by spending at U.S. supermarkets, you should also look at the annual fee, introductory APRs and bonus spend categories.

For example, if you don’t want to pay an annual fee, and want a long introductory APR on purchases and balance transfers, The Amex EveryDay® Credit Card from American Express will be the best option.

But if you want to earn a higher rewards rate at U.S. supermarkets and U.S. gas stations — and don’t mind paying a $95 annual fee — The Amex EveryDay® Preferred Credit Card from American Express could be a better choice.

Both The Amex EveryDay® Credit Card from American Express and The Amex EveryDay® Preferred Credit Card from American Express allow you to redeem your Membership Rewards points for travel, gift cards, merchandise or entertainment. You can also transfer points to one of American Express’ loyalty partners, including Delta Airlines, Hilton Honors and JetBlue Airways.

We break down the pros and cons of The Amex EveryDay® Credit Card from American Express and The Amex EveryDay® Preferred Credit Card from American Express to help you determine which card is the best fit for you.

The Amex EveryDay® Credit Card from American Express  vs. The Amex EveryDay® Preferred Credit Card from American Express

 

The Amex EveryDay® Credit Card from American Express

The Amex EveryDay® Preferred Credit Card from American Express

Annual fee$0$95
Welcome bonus10,000 Membership Rewards® points after you use your new Card to make $1,000 in purchases in your first 3 months.Earn 15,000 bonus points after you use your new card to make $1,000 in purchases in your first 3 months from account opening
Rewards rate2x points at US supermarkets, on up to $6,000 per year in purchases (then 1x), 1x points on other purchases.3x points at US supermarkets; 2x points at US gas stations; 1x points on other purchases
Intro APR on purchases0% for 15 Months0% for 12 months
Regular purchase APR12.99% - 23.99% variable12.99% - 22.99% variable
Foreign transaction fees2.7% of each transaction after conversion to US dollars.2.7% of each transaction after conversion to US dollars

The Amex EveryDay® Credit Card from American Express pros and cons

Pros

Intro APR on purchases. If you plan to finance a large purchase, you can come out on top with The Amex EveryDay® Credit Card from American Express, thanks to its long introductory APR on purchases. The card offers an intro APR of 0% for 15 Months on purchases. After that, an APR of 12.99% - 23.99% variable applies.

Intro APR on balance transfers. If you’re looking to save on interest charges with a balance transfer offer, The Amex EveryDay® Credit Card from American Express also offers an introductory APR on balance transfers for more than a year. The card comes with an intro APR on balance transfers of 0% for 15 Months, then an APR of 12.99%- 23.99% variable.

Additionally, The Amex EveryDay® Credit Card from American Express offers a $0 balance transfer fee. Balance transfer fees can typically run anywhere from 3%-5% of the amount transferred.

Annual fee. The Amex EveryDay® Credit Card from American Express charges a $0 annual fee.

Additional American Express benefits. The Amex EveryDay® Credit Card from American Express comes with several benefits, including 20% more points when you use your card 20 or more times on purchases in a billing period, payment flexibility, car rental loss and damage insurance, access to Global Assist Hotline, dispute resolution, complimentary ShopRunner membership and more.

Cons

Modest welcome bonus. The Amex EveryDay® Credit Card from American Express offers a lower welcome bonus than The Amex EveryDay® Preferred Credit Card from American Express. Cardholders earn 10,000 Membership Rewards® points after you use your new Card to make $1,000 in purchases in your first 3 months.

Limited bonus categories. Although The Amex EveryDay® Credit Card from American Express offers 2x points at US supermarkets, on up to $6,000 per year in purchases (then 1x), 1x points on other purchases., the card does not offer an elevated rewards rate in other popular spend categories, such as gas stations or restaurants.

Additionally, once you reach the $6,000 yearly spend limit on U.S. supermarket purchases, you will only earn 1 point per dollar on those purchases for the remainder of the year. So, if you max out the $6,000 yearly spend limit, you’d earn 12,000 points at the higher cashback rate, not including any points you’d earn at the lower cashback rate.

Foreign transaction fees. Like The Amex EveryDay® Preferred Credit Card from American Express, The Amex EveryDay® Credit Card from American Express charges foreign transaction fees of 2.7% of each transaction after conversion to US dollars.

The Amex EveryDay® Preferred Credit Card from American Express pros and cons

Pros

Rewards rate. In addition to offering a higher rewards rate at U.S. supermarkets than The Amex EveryDay® Credit Card from American Express, The Amex EveryDay® Preferred Credit Card from American Express offers the ability to earn rewards through spending at U.S. gas stations. Cardholders earn 3x points at US supermarkets; 2x points at US gas stations; 1x points on other purchases.

If you max out the $6,000 yearly spend limit at U.S. grocery stores, you can earn 18,000 points per year on those purchases alone.

Welcome bonus. The Amex EveryDay® Preferred Credit Card from American Express also offers a higher welcome bonus than The Amex EveryDay® Credit Card from American Express — with the same spend requirement. Earn 15,000 bonus points after you use your new card to make $1,000 in purchases in your first 3 months from account opening.

Additional American Express benefits. The Amex EveryDay® Preferred Credit Card from American Express also comes with the following benefits: 50% more points when you use your card 30 or more times on purchases in a billing period, payment flexibility, car rental loss and damage insurance, access to Global Assist Hotline, return protection, dispute resolution, free ShopRunner membership and more.

Cons

Annual fee. The Amex EveryDay® Preferred Credit Card from American Express charges a $95 annual fee.

Balance transfer fee. The Amex EveryDay® Preferred Credit Card from American Express offers an introductory APR on purchases and balance transfers — albeit for a slightly shorter time period than The Amex EveryDay® Credit Card from American Express.

However, unlike The Amex EveryDay® Credit Card from American Express, The Amex EveryDay® Preferred Credit Card from American Express charges a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater. So, for example, if you transfer $8,000 from a different credit card, you would incur a balance transfer fee of $240.

Which card is best for you?

If you have a large family to feed or simply prefer dining in over eating out, chances are you could benefit from a card that offers rewards at U.S. grocery stores, like The Amex EveryDay® Credit Card from American Express or The Amex EveryDay® Preferred Credit Card from American Express.

If you’re trying to decide between the two, The Amex EveryDay® Preferred Credit Card from American Express makes the most sense for those who spend enough at U.S. grocery stores and U.S. gas stations each year to cover the $95 annual fee. For example, if you earn 10,000 points, they will be worth approximately $100 in airfare through American Express Travel.

But if you have high-interest credit card debt that you want to transfer, The Amex EveryDay® Credit Card from American Express would be the better choice, since it offers the longest intro APR on balance transfers out of the two reviewed in this article and does not charge a balance transfer fee.

The information related to The Amex EveryDay® Credit Card from American Express and The Amex EveryDay® Preferred Credit Card from American Express has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply to American Express credit card offers. See americanexpress.com for more information.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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Best of, Earning Interest

The Best High-Yield Online Savings Accounts in June 2020

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

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There are no excuses for sticking with a low-rate savings account these days. Online savings accounts provide consumers with interest rates that are way above those offered by conventional banks. The best online savings accounts can easily earn you an APY of 1.30% or greater, while the average rate offered by a traditional brick-and-mortar bank remains at a paltry 0.06%.

If you’re still skeptical about switching to an online bank, consider the facts. Your funds are just as safe stashed with an FDIC-insured online bank as they would be with the bank branch on Main Street, and you’re likely to get better technical support with an online-only bank website and app. Many offer round-the-clock customer support and online chat features that make it easy to resolve issues without needing to visit a branch in person. Along with higher rates, you may end up saving on the cost of the account. With lower overhead costs, online banks typically charge lower fees.

Every month we review and compile the best savings account offers from online banks. Our ranking factors in features such as a higher-than-average interest rate, no minimum balance requirement, and superior ATM access.

Market update: Banks have dropped their savings rates considerably due to recent uncertainty caused by the COVID-19 outbreak. Despite interest rates declining overall, we are still seeing many of the pre-crisis top performers continuing to lead the pack in the overall best rates category.

  • 1.30% APY – Goldman Sachs Bank USA
  • 1.25% APY – Ally Bank
  • 1.15% APY – American Express National Bank
  • 1.15% APY – Capital One
  • 1.15% APY – Barclays Bank
  • 1.05% APY – Synchrony Bank
  • 1.35% APY – Vio Bank
  • 1.35% APY – Live Oak Bank
  • 1.30% APY – HSBC Direct
  • 1.30% APY – Citizens Access
  • 1.10% APY – BrioDirect
  • 1.25% APY – CIT Bank
  • 1.75% APY – Fitness Bank
  • 1.60% APY – First Foundation Bank
  • 1.51% APY – UFB Direct
  • 1.36% APY – SFGI Direct
  • 1.35% APY – Comenity Direct
  • 1.35% APY – Popular Direct
  • 1.20% APY – Rising Bank
  • 6.17% APY – Digital Federal Credit Union

Do you have a savings goal in mind? Tell us about it!

1. High Rate: Goldman Sachs Bank USA – 1.30% APY, no minimum balance (but no ATM access)

High-yield Online Savings Account from Goldman Sachs Bank USA

Our advertiser Marcus by Goldman Sachs, the consumer bank of Wall Street giant Goldman Sachs, offers a 1.30% APY on deposits. There isn’t a minimum balance requirement to earn the APY and there are no transaction fees. Upon opening the account, you can deposit funds via electronic transfer, wire transfer, or deposit by check. You can get access to your funds via electronic transfer or wire transfer.

Goldman has been investing heavily in Marcus, its online consumer bank. Marcus is already offering some of the best savings accounts and personal loans in the market, and further expansion is expected. The savings account has consistently been paying one of the highest rates in the market. With a 1.30% APY, you can get one of the highest rates in the market from a well-known brand. The maximum deposit is $1,000,000 and deposits are FDIC insured up to the $250,000 limit.

Marcus is accessible both online and via the Marcus mobile app, available only in the Apple App Store.

SEE DETAILS Secured

on Goldman Sachs Bank USA’s secure website

Member FDIC

2. Favorite Online Package: Ally Bank – 1.25% APY, no minimum balance and you can get a free checking account

Online Savings Account from Ally BankAlly is a bank without branches that had been consistently paying high interest rates on savings accounts. While Ally is still offering rates way above what brick-and-mortar banks are offering, it seems this online bank no longer wants to be seen as the online bank with the most competitive rates. The current APY on Ally’s savings account is 1.25%. Although Ally has dropped its rate significantly, we still favor this online bank. It doesn’t require a minimum balance to earn the APY and, even better, you can open a free checking account (also with no minimum balance requirement). This makes access to your savings account incredibly easy – because you can transfer funds online (or via the app) and have immediate access via checks, debit cards and ATMs. With an Ally account, you will have access to their full suite of expanding (and market-leading) products such as CDs, money market account, checking account, and IRA accounts.

SEE DETAILS Secured

on Ally Bank’s secure website

Member FDIC

3. High Rate: American Express National Bank – 1.15% APY, no minimum balance (and no fees)

High Yield Savings Account from American Express National BankOur sponsored advertiser, American Express National Bank, offers a Personal Savings account, which earns a 1.15% variable Annual Percentage Yield (APY) as of 6/4/2020. The account charges no monthly fees and requires no minimum deposit, making it an affordable account to open. You must fund your account within 60 days of applying for the account, and the FDIC insures your deposits up to $250,000. Overall, the account is a great option for anyone who wants the flexibility of earning a high interest rate on a sum of money you’ve stashed away, minus the withdrawal restrictions of a certificate deposit.

SEE DETAILS Secured

on American Express National Bank’s secure website

Partner Offer

Member FDIC

4. High Rate: Capital One – 1.15% APY, no minimum balance

360 Performance Savings from Capital OneA consistent rate leader for its deposit accounts, Capital One now offers its 360 Performance Savings. With a 1.15% APY on all balances and no monthly fee, you get a chance to boost your savings uninterrupted. There are no minimum balances required to open or maintain the account, either.

Capital One is able to offer higher rates and lower (to no!) fees on this online savings account compared to traditional in-branch offerings. Still, you can head to a Capital One branch or Capital One Café to open a new 360 Performance Savings account, if you prefer. You cannot use an ATM to withdraw or deposit funds, but you can visit a branch, call the bank or make your own online transfer. You can access all accounts on your mobile device through the Capital One app, as well.

SEE DETAILS 

Member FDIC

5. High Rate: Barclays Bank – 1.15% APY, no minimum balance

Online Savings Account from BarclaysBarclays is a large, old British bank, based in London and with more than 325 years of history. Although Barclays is huge in the United Kingdom, it is a challenger brand in the US. Barclays offers savings products with highly competitive rates. These deposits are used to fund their rapidly growing American credit card business. The online savings account has a 1.15% APY with no minimum balance to open and no monthly fees. Your deposits are FDIC insured up to the legal limit. The Barclays website has a good look and feel. And you can have the confidence of keeping your money with one of the world’s largest and oldest universal banks.

SEE DETAILS Secured

on Barclays’s secure website

Member FDIC

6. High Rate: Synchrony Bank – 1.05% APY, no minimum balance, (and ATM access)

High Yield Savings from Synchrony BankSynchrony Bank pays a healthy 1.05% APY. There is no minimum balance requirement and no monthly fee. In addition to the great rate, you can get an ATM card. Most internet-only banks require you to transfer funds electronically, which can take a few days. If you ever need quick access to your funds, the ATM card makes access easy. You might not recognize the Synchrony brand in the banking space, but it is a large, well-capitalized business. Synchrony used to be a part of General Electric (GE), and was spun out as a separate company. Unfortunately, the digital experience is not the best, but they now have a mobile banking app.

SEE DETAILS 

Member FDIC

7. High Rate: Vio Bank – 1.35% APY, $100 to open

High Yield Online Savings Account from Vio BankVio Bank is the online division of MidFirst Bank, a national private financial institution with over $16 billion in assets. Vio Bank was recently created and is not yet as established as Marcus, Barclays, American Express, Synchrony, and Ally Bank. However, this online bank launched its High Yield Online Savings account with a strong APY (at the time of its launch) and has been consistently competitive since it launched. It’s currently offering an outstanding 1.35% APY on all balances. You only need $100 to open the account. You can fund the account via ACH.

There are a few limitations to keep in mind: incoming ACHs take anywhere between two to five business days to post and the online bank may place a hold your ACH for two or three business days. When you’re ready to transfer funds out of the account, you’ll be limited to $5,000 per outgoing ACH. You’ll also be limited to transferring an aggregate monthly total of $20,000 via outgoing ACHs. As is with every other savings account, you’ll also be limited to making six withdrawals per monthly statement cycle. The good news (aside from the high APY) is that Vio Bank doesn’t charge a monthly maintenance fee. Vio Bank also has a mobile banking app where you can conveniently manage your accounts on-the-go. Also, its website is mobile friendly so it should be fairly easy to do your online banking from a smart phone, as well. We think this online bank is very promising and hope it continues to offer one of the best savings account rates in the nation.

SEE DETAILS Secured

on Vio Bank’s secure website

Member FDIC

8. High Rate: Live Oak Bank – 1.35% APY, no minimum to open, no minimum balance to earn APY

High Yield Online Savings from Live Oak BankFounded in 2008, Live Oak Bank offers a great spread of financial products, including its high-yield Online Savings account. The Online Savings account earns 1.85% APY on all balances. Plus, interest is compounded daily for faster savings. There’ s no minimum deposit requirement to open, either, nor a monthly fee to worry about.
In addition to online access, Live Oak Bank offers a mobile app.

SEE DETAILS Secured

on Live Oak Bank’s secure website

Member FDIC

9. High Rate: HSBC Direct – 1.30% APY, $1 minimum to open, no minimum balance to earn APY

HSBC Direct Savings from HSBC DirectHSBC Direct is the online division of financial giant, HSBC Bank. Based on the amount of assets HSBC Bank has acquired to date, it is the 14th largest bank in the U.S. While HSBC Direct may sound like a new player to the online banking game, this division was actually around prior to the 2008 financial crisis and offered extremely competitive rates. After the financial crisis, the bank renamed the online division to HSBC Advance and slowly started to decrease its online savings account rates, much like other online banks were doing around that time.

Fortunately, HSBC has decided to reenter the online banking space. Since the initial launch in July of 2018, the bank has consistently increased its HSBC Direct Savings Account rate from 1.70% APY to 1.30% APY. You only need $1 to open the account and the APY will be applied to any balance below $2 million. You may fund the account via ACH transfer and the account can be opened online. You will have to deposit new money to the account, which means that you cannot be a member of the HSBC Group in the United States. The account doesn’t have a monthly maintenance fee and all deposits are FDIC insured.

SEE DETAILS Secured

on HSBC Direct’s secure website

Member FDIC

10. High Rate: Citizens Access – 1.30% APY, $5,000 minimum balance amount

Online Savings Account from Citizens AccessCitizens Access is the online division of Citizens Bank. This division was recently created to provide the best savings rates to consumers. While the online division is brand new, the bank its backed by isn’t. Citizens Bank has been around for a while and has grown to have over $122 billion in assets. While you need to deposit and maintain a minimum balance of $5,000 to earn the 1.30% APY, you’ll be funding an account that comes with no fees. If your balance happens to fall below $5,000, the APY will drop to 0.25%. One downside to this online-only bank is that they don’t currently have a mobile banking app. This means that you’ll have to do all of your banking through their website. Luckily, their website is mobile-friendly.

SEE DETAILS Secured

on Citizens Access’s secure website

Member FDIC

11. High Rate: BrioDirect – 1.10% APY, $25 minimum balance amount

High-Yield Savings from BrioDirectBrioDirect is powered by Sterling National Bank, which is a large bank in New York with over $29 billion in assets. This online brand recently launched with a high 1.10% APY. You only need $25 to open the account and you’ll need to maintain at least this amount on a daily basis to earn the APY. This account doesn’t have a monthly service fee and can be funded via ACH, wire transfer, or check.

There are limitations to the amount of money you can transfer in and out via ACH. BrioDirect limits incoming ACH transfers to $500,000. The bank limits outgoing ACH transfers to $25,000 per transaction and a total of $125,000 per month. You are able to link as many external bank accounts as you’d like to this account. You can also initiate ACH deposits and withdrawals from other banks.

You can manage this account online or from Sterling National Bank’s mobile app.

SEE DETAILS Secured

on BrioDirect’s secure website

FDIC Insured

12. High Rate: CIT Bank – 1.25% APY, $100 to open

Savings Builder from CIT BankCIT is a very large bank that you probably never heard of. It has more than $50 billion of assets and makes loans (and leases) to middle market companies and small businesses. To fund those loans, CIT operates an internet-only bank that pays some of the highest interest rates in the country.

While CIT isn’t as big as other online banks, they’re currently offering a very healthy APY of 1.25% on their Savings Builder account. You only need $100 to open the account, but you’ll need to meet one of two requirements to earn the high rate. We really like the options that CIT Bank has put in place to earn this high APY. The two ways to continue earning this high rate are:

  1. Make a monthly deposit of $100 or more into this account
  2. Maintain a daily balance of $25,000 or more

Even better: there aren’t any monthly maintenance fees and interest compounds daily. Deposits are FDIC insured.

SEE DETAILS Secured

on CIT Bank’s secure website

Member FDIC

13. Unique Bank + Highest Overall Rate: Fitness Bank – 1.75% APY, $100 minimum to open

Fitness Savings (12,500+ Steps) from FitnessBankFitness Bank is unique and new online bank. It’s a division of Affinity Bank, which has been around since 2002 and has acquired over $318 million in assets. Affinity Bank decided to launch a concept like no other to reward actively fit individuals with the highest APY currently available. While most institutions choose to offer tiered rates based on balance amounts, Fitness Bank offers tiered rates based on the average number of steps you take on a daily basis. To earn the high 1.75% APY, you’ll need to take an average of 12,500 steps or more per day. If you only take an average of 10,000 to 12,499 steps per day, you’ll earn an APY of 1.55% (which is still a great APY). You’ll earn 1.35% APY if you take an average of 7,500 to 9,999 steps per day. Taking an average of 5,000 to 7,499 steps per day will qualify you for an APY of 1.15%. Finally, if you take anywhere between 0 to 4,999 steps on average per day, you’ll only earn 0.50%.

Fitness Bank will track your steps by requiring you to download its Step Tracker app. The bank will then calculate your average steps from the previous month to determine which tier you qualify for. Once the bank determines which rate your activity qualifies you for, you will continue earning that rate for an entire month until the bank recalculates your activity. The activity requirement will be waived for the first month so that you can get your app all set up and start logging in some steps. For this first month, you’ll automatically earn the 1.75% APY.

In terms of actual money, you will need at least $100 to open the account and you’ll need to maintain this balance to waive the $10 monthly maintenance fee. The bank does impose a limit on the amount of money you’re able to transfer in and out of the account via ACH. You cannot transfer more than $15,000 per day in or out of the account. You also cannot exceed more than six certain withdrawals or you’ll incur an excessive withdrawal fee of $10 for each additional withdrawal. In addition to the Step Tracker app, Fitness Bank has a mobile banking app to manage your account.

SEE DETAILS Secured

on FitnessBank’s secure website

Member FDIC

14. High Rate: First Foundation Bank – 1.60% APY, $1,000 to open

Online Savings Account - New Money Only from First Foundation BankFirst Foundation Bank officially launched in 2008, but its leadership has been in the financial services industry since 1990. This bank was established by the same group that leads the Keller Group, a wealth management firm. The bank has grown to acquire over $6 billion in assets. In October, this bank launched an Online Savings Account with a high APY of 1.60%. You’ll need to have a balance of at least $1,000 in order to open that account and you’ll need to maintain that amount in order to earn the high APY. If your balance falls below $1,000, the APY will drop to 1.60%. This account doesn’t have a monthly service fee.

While Regulation D applies to this account, First Foundation Bank will provide an ATM card if you request one from the bank. The bank will reimburse ATM fees from other banks and ATM operators up to $20. There is a limit to the amount of money that you can withdraw. If you’re withdrawing from an ATM, the bank sets a daily limit of $500. The daily point-of-sale limit is $1,500. If you’re transferring money online or via ACH, the daily limit is $20,000 and the monthly limit is $100,000. If you need to transfer more than the preset limits, you’re able to call the bank and request that they increase the limit. The bank allows you to maintain the account online and through their mobile banking app.

SEE DETAILS Secured

on First Foundation Bank’s secure website

Member FDIC

15. High Rate: UFB Direct – 1.51% APY, $10,000 minimum balance to earn APY

UFB High Yield Savings from UFB DirectUFB Direct is a division of Axos Bank, a bank with over $9 billion in assets. This brand has been known to offer high rates not only on its savings accounts, but on its money market accounts, as well. Currently, you can earn a 1.51% APY on its High Yield Savings Account. You will need to keep a balance of $10,000 in order to earn the high rate. The account comes with a free ATM card, but you may want to contact the bank to find out which ATMs you can use without incurring a fee. The bank’s website doesn’t specify. Its disclosure does state that you will only be able to withdraw $510 on a daily basis. This account doesn’t come with any monthly fees. UFB Direct does have a mobile app that allows you to deposit checks.

SEE DETAILS Secured

on UFB Direct’s secure website

Member FDIC

16. High Rate: SFGI Direct – 1.36% APY, $500 to open

SFGI Direct Savings Account from SFGI DirectSFGI Direct is Summit Community Bank’s online division. They currently have more than $2 billion of assets and is privately owned by Summit Financial Group, Inc. SFGI is FDIC insured through Summit Community Bank, so deposits are protected up to the legal limit. They are currently offering a good rate of 1.36% on balances of $1 or greater. You’ll have to deposit a minimum of $500 in order to open the account, but you can’t make an initial deposit greater than $25,000. After you make your initial deposit, you’re able to add as much money as you’d like to the account. While they do offer a good rate on an online savings account, their online experience is lacking. Their website feels dated and they don’t appear to have a mobile banking app.

SEE DETAILS 

Member FDIC

17. High Rate: Comenity Direct – 1.35% APY, $100 minimum to open

High-Yield Savings Account from Comenity DirectComenity Direct is the online division of Comenity Capital Bank. Comenity Capital Bank has been around since 1989 and has acquired over $9 billion in assets. Comenity Capital Bank launched this online division in the middle of April 2019 and came into the savings space with a high-yield savings account earning 1.35% APY. While you need $100 to open the account, you can earn the high rate with a balance as small as $1 and as big as $10 million.

Comenity Direct’s High-Yield Savings Account doesn’t place limits on ACH transfers. This account doesn’t have any monthly fees and the bank doesn’t charge a fee if you attempt to withdraw from this account more than six times. If you do try to withdraw from the account a seventh time within the same statement cycle, Comenity Bank reserves the right to either deny or reject the withdrawal and may even close the account.

While this is mainly a fee-free savings account, there are a few fees that may be charged if you request paper statements, a paper check withdrawal, and an outgoing wire transfer. Comenity Direct does have a mobile banking app for your convenience. This is one of the best high-yield savings accounts currently being offered, but keep in mind that this online division is brand new. When it comes to accounts with variable rates, we prefer to stick with more established banks with consistently competitive rates.

SEE DETAILS Secured

on Comenity Direct’s secure website

Member FDIC

18. High Rate: Popular Direct – 1.35% APY, $5,000 minimum to open

Popular Direct Ultimate Savings Account from Popular DirectPopular Direct, the online bank of Banco Popular North America, is currently offering an outstanding APY of 1.35% on their Popular Direct Ultimate Savings Account. You’ll need $5,000 to open this account and you’ll have to maintain a daily end of day balance of $500 to avoid the $4 monthly service fee. This account does not come with an ATM card. In order to access your money, you would need to transfer funds to and from an existing checking account via an ACH transfer, which can take a few days. Your deposits are FDIC insured. Popular Direct has a mobile banking app and provides account holders with access to online banking.

SEE DETAILS Secured

on Popular Direct’s secure website

Member FDIC

19. High Rate: Rising Bank – 1.20% APY, $1,000 minimum to open

High Yield Savings Account from Rising BankRising Bank is a divison of Midwest BankCentre and was recently launched in February 2019. Although this internet bank is pretty much brand new, its parent bank has been around since 1906 and has acquired over $1 billion in assets. Rising Bank launched with a strong APY of 1.20%. You’ll need to deposit a minimum of $1,000 in order to open the account and you’ll need to maintain or grow this balance on daily basis in order to continue earning the high rate. This account does have a maximum balance of $500,000. A few other items to be aware of is that interest will be credited to this account every month and if you decide to close the account before the interest is credit to the account, you will not receive the accrued interest. Rising Bank has a mobile app where you can manage your account conveniently.

SEE DETAILS Secured

on Rising Bank’s secure website

Member FDIC

20. For Small Balance Savers: Digital Federal Credit Union – 6.17% APY up to $1k

Primary Savings from Digital Federal Credit Union (DCU)Digital Federal Credit Union (DCU) currently offers a nice account for people who are just starting to save. You can earn an APY of 6.17% with their Primary Savings Account. You will only earn that rate on deposits up to $1,000. Once you have more than $1k, you should consider other accounts on this list. It is a credit union – and your deposits are insured by the NCUA up to the legal limit. Anyone can join the credit union by donating to one of their participating organizations such as Reach Out for Schools, which has a membership fee of $10. You’ll be able to join one their participating organizations when you go to open your account with DCU. DCU is also part of a nationwide CO-OP network that allows their members to have access to shared branches and surcharge-free ATMs throughout the U.S.

SEE DETAILS 

NCUA Insured

MagnifyMoney’s Best Savings Accounts for June 2020

To recap, here are our top picks of the Best Savings Accounts for June 2020.

The Best Savings Accounts in June 2020 Overall

Institution

APY

Bank Review

Goldman Sachs Bank USA High Yield Online Savings

1.30% APY

Goldman Sachs Bank USA Review

Ally Bank Online Savings Account

1.25% APY

Ally Bank Review

American Express National Bank Personal Savings


1.15% APY

American Express Review

Capital One 360 Performance Savings

1.15% APY

Capital One 360 Review

Barclays Bank Online Savings Account

1.15% APY

Barclays Bank Review

Synchrony Bank High-Yield Savings Account

1.05% APY

Synchrony Bank Review

To find the best savings accounts, we look for the banks that consistently offer competitive savings rates. This list is updated weekly to stay on top of the best savings account choices for you.

The Best Online Savings Accounts in June 2020

Institution

APY

Bank Review

Vio Bank High Yield Online Savings Account

1.35% APY




Vio Bank Review

Live Oak Bank Savings Account

1.35% APY

Live Oak Bank Review

HSBC Direct Savings

1.30% APY

HSBC Direct Review

Citizens Access Online Savings Account

1.30% APY

Citizens Access Review

BrioDirect High-Yield Savings Account

1.10% APY

BrioDirect Review

CIT Bank Savings Builder

1.25% APY

CIT Bank Review

Nowadays, the best savings accounts are often found online. New online savings accounts from online banks or even established banks looking to get in on the high-yield action blow traditional savings account rates out of the water. This list is updated weekly to reflect the latest and greatest online savings accounts with consistency over the past two years.

The Best High-Yield Savings Accounts and Rates in June 2020

Institution

APY

Bank Review

Fitness Bank Savings

1.75% APY

Fitness Bank Review

First Foundation Bank Online Savings Account

1.60% APY

First Foundation Bank Review

UFB Direct High Yield Savings Account

1.51% APY

UFB Direct Review

SFGI Direct Savings Account

1.36% APY

SFGI Direct Review

Comenity Direct High Yield Savings Account

1.35% APY

Comenity Direct Review

Popular Direct Ultimate Savings Account

1.35% APY

Popular Direct Review

Rising Bank High Yield Savings

1.20% APY

Rising Bank Review

In today’s fluctuating-rate climate, the best high-yield savings accounts can change from day to day. We stay on top of them for you and list the highest earning savings accounts from this month below.

Why trust us?

At MagnifyMoney, it is our mission to inform our readers about the best financial opportunities out there. Our insights have been cited by top financial publications including Marketwatch, CNBC and the Wall Street Journal.

Our dedicated team of financial experts spends dozens of hours grading online savings accounts according to their interest rates, fee schedules, extra features, minimum balance requirements and accessibility, adjusting our rankings as banks and their offerings change on a weekly basis.

We distilled our picks from a list that included hundreds of banks, credit unions and online institutions nationwide.

Our methodology for picking the best savings accounts

To find the best online savings accounts, MagnifyMoney looks at over 6,000 financial institutions each week, from small community banks and credit unions to traditional brick-and-mortar banks to new online banks.

  1. Savings account rates: We heavily weighted the APYs offered by each bank in terms of both magnitude and consistency. Higher savings rates were prioritized over lower rates. Due to the variable rates on savings accounts, we also gave additional consideration to banks that were known to maintain competitive rates over longer periods of time.
  2. Minimum deposit and balance requirements: To ensure accessibility to all customers, we focused on banks that welcome deposits of all sizes, where the ideal banks in this category have minimum balance and deposit requirements of $0.
  3. Bank account fees: Unnecessary fees can eat into your long-term savings in a major way. Banks that offered low or no fees were given priority in this category over banks that are known to charge account maintenance fees, service charges and other surcharges.
  4. Customer service: We considered overall customer satisfaction and bank reputation when weighing each bank performance in this category. While each customer’s experience varies, we looked at relative feedback each bank received at the national level based on data sourced from consumer advocates like the Consumer Financial Protection Bureau (CFPB) and the Better Business Bureau. Banks that failed to meet minimum standards of performance were excluded.

What should I know about savings accounts?

It’s easy to take your savings account for granted, setting up automatic deposits and forgetting about it. But there’s a lot more to savings accounts that you should know.

For one, you can find consistently more competitive savings account rates at online banks than with your typical big bank. Online banks are also more fee-friendly — although there are still some legal limitations you should be aware of to avoid extra fees.

Read on to find out more about how savings accounts work, how many savings accounts you should have and more.

What is a savings account?

The definition of a savings account is a deposit account that earns interest and allows six “convenient” withdrawals per statement cycle. This limit applies to telephonic transfers, preauthorized and automatic transfers and withdrawals and transfers made by check, debit card or another similar method. Savings accounts are offered by traditional brick-and-mortar banks, online banks, credit unions and other financial institutions.

Deposits held in savings accounts at banks are typically insured by the Federal Deposit Insurance Corporation (FDIC), while credit union deposits are insured by the National Credit Union Administration (NCUA). When looking for the best savings account, always choose an institution insured by either the FDIC or the NCUA. This protects your savings account with the backing of the U.S. Federal Government in the event that your bank fails.

How do savings accounts work?

Savings accounts are interest-bearing deposit accounts that hold your money safely and securely with a financial institution. They are liquid, meaning you can withdraw your money at any time you choose. However, due to the limitations of the Federal Reserve’s Regulation D, savings accounts only allow six convenient transfers and withdrawals per statement cycle. Exceeding this limit will typically result in a fee for each additional transaction.

While almost all savings accounts earn interest, the earnings may vary depending on what type of bank you choose. Historically, we’ve seen online savings accounts out-yield traditional brick-and-mortar banks.

When should I use a savings account?

Savings accounts are most often used for general savings, and they’re a much better choice than keeping all of your money in a checking account. A high-yield savings account lets your money grow by earning a strong interest rate. Still, it’s always best to keep a financial cushion in your checking account, to cover expenses and avoid overdrafts.

You can use a savings account to house your emergency fund as well as any cash you don’t need to cover your monthly spending habits. Savings accounts are highly liquid and easy to access when you need them — certificates of deposit (CDs) and investment accounts are much less liquid — but still earns more interest than regular checking accounts.

Separate savings accounts are a great way to meet multiple financial goals. For example, you could save funds for future college tuition costs in one high-yield savings account, and money for your next vacation in a separate online savings account.

How to find the right savings account for you

When shopping for the best savings account, your first consideration should be an account’s interest rate. If you’re going to let your money sit somewhere, you want to make it a worthwhile investment. Second, check for fees — there’s no use earning a lot in savings if that’s just going to be taken away by pesky fees. Finally, consider broadening your horizons so you can weigh all your options.

Compare offers to get the best savings rate. Use our savings account comparison tool to calculate how much you could earn with different accounts. You can filter by ZIP code and size, which can help large-balance savers find better options than no-minimum options.

Don’t forget about fees. Snagging the highest interest rate isn’t always your best bet. You also want to ensure the whole account helps you earn consistent returns. For example, a high-rate online savings account might reset to a lower APY after an introductory period. Perhaps the best rate requires a balance that’s too high or too low for your needs. And watch out for monthly fees that could eat into your savings.

Compare options beyond banks. It’s easy to keep a savings account with the bank your family has banked with for generations. But you could be missing out on incredible savings by ignoring online banks and even credit unions. Online banks traditionally offer substantially higher savings account rates than brick-and-mortar banks. They’re easier on fees, too. For their part, credit unions can also be competitive rate leaders, especially for CDs.

What are the different types of savings accounts?

Financial institutions offer a few different varieties of savings accounts. For instance, a money market account is technically a type of savings account under Regulation D, but it’s often marketed under its own name.

Certain labels are applied to savings accounts to differentiate features or ownership types. For example, an online savings account is just a standard savings account that’s available online. Likewise, a high-yield savings account is simply a standard savings account that earns a high interest rate.

Differences in account ownership do not change the way savings accounts function — withdrawal limits and interest rates remain the same. That said, there are a few details worth highlighting when it comes to savings account ownership types:

  • Individual savings account: This is a savings account for one person. No one else can access funds saved in the account unless the savings account holder authorizes it.
  • Joint savings account: With a joint savings account, two or more people share equal access to funds saved in the account.
  • Custodial account: These accounts let a designated custodian manage funds for the benefit of a minor, who then assumes ownership of the account when they turn 18 or 21 years old, depending on the state. Common custodial accounts are associated with UGMA (Uniform Gift to Minors Act) and UTMA (Uniform Transfer to Minors Act) agreements.
  • Payable on Death (POD) account: This type lets the account owner choose beneficiaries who inherit the funds saved in the account after the owner passes away.

Determining which is the best savings account for you can be a difficult decision and will depend on your individual needs. However, there’s no real limit to the number of savings accounts that you can open; take some time to shop around to find a savings account that combines the highest rates, greatest convenience and still fits your unique needs.

Should I get an online savings account?

An online savings account is your best bet for obtaining the highest interest rate available. Online banks lack the costs associated with maintaining brick-and-mortar branches, and they generally pass the savings onto you in the form of better interest payouts. And like we’ve said, if your money is going to sit in an account, you might as well make it worth your while by growing it at a competitive rate.

Online savings accounts generally feature superior accessibility. Online banks are laser focused on offering the best possible and most user-friendly app experiences. There’s often 24/7 customer service, and they tend to provide very good ATM access. When shopping for the best savings account to suit your needs, make sure you include a good mix of online banks offering high yields, brick-and-mortar banks and credit unions in your search.

Can savings accounts lose money?

If your account balance remains below the FDIC or NCUA deposit insurance threshold, there is virtually no way to lose money kept in a savings account. Federal deposit insurance guarantees that you will not lose money — up to the legal limit — in the event of a bank or credit union failure. If your bank or credit union were to fail, federal deposit insurance guarantees that you get your money back, either in the form of a check or a new account at another insured bank.

You can, however, lose money to fees if you’re not careful. Many savings accounts, especially at traditional brick-and-mortar banks, charge a monthly fee that can dent your savings just for owning the account. For those looking to avoid fees, we’ve found that many online savings accounts have reduced or eliminated their fees entirely.

Do savings account interest rates change?

Savings account interest rates are variable, meaning they can change at the discretion of the institution offering them. This is in contrast to fixed-rate savings vehicles, like CDs, which have set rates for predetermined periods of time.

Institutions tend to reserve the right to change their rates at any time, without warning. Luckily, there are institutions that notify you of upcoming changes, especially if it’s a substantial rate change. Each institution’s level of transparency and communication is something to consider when shopping around for the best savings account.

What impacts savings rates?

Institutions typically alter their rates in response to changes in market interest rates, which are in turn driven by the federal funds rate set by the Federal Reserve. The federal funds rate influences the rates banks lend money to each other. When the Fed increases the federal funds rate, financial institutions respond by increasing the interest rates they offer on deposit accounts. When the federal funds rate falls, interest rates decrease.

If you’re not keen on tracking the federal funds rate, changes to the APY on your savings account may come as a surprise. Luckily, chances are that if you keep your deposits with an online bank, you’ll still get the most competitive rates regardless of a Fed pause or rate decrease. Online savings accounts outperform most brick-and-mortar rates any day.

What are the typical fees associated with savings accounts?

The main fee you should look out for when shopping for any bank account is the pesky monthly service fee. These fees are charged for simply owning an account, and can range from as little as $5 to as much as $25, depending on the institution and the account. Luckily, the industry-leading best online savings accounts are free of monthly service fees.

Another common fee associated with savings accounts is the excessive transaction fee. This fee is charged each time you go over the legal limit of six transfers per statement cycle, and usually runs around $10. Some institutions, like Synchrony, do not charge an excessive transaction fee; however, they will close the account if an account holder makes excessive transactions more than occasionally.

You should also watch out for a paper statement fee. Technically this is not a monthly service fee, but many institutions charge you on a monthly basis if you choose to receive paper statements in addition to electronic statements. Some online savings accounts have done away with paper statements altogether; check with your bank to confirm their terms and conditions.

Should I have a savings account at the same bank as my checking account?

You certainly could choose to keep your savings account at the same bank as your checking account for convenience’s sake, but that doesn’t mean you should. Your savings deserve the best interest rate available, which earns you the highest possible return. If you keep your checking account with a traditional brick-and-mortar bank, you’re not likely to find the best savings account rates at the same institution.

To get the best return on your savings possible, open a high-yield savings account. These accounts are most often found at online banks, but a handful of brick-and-mortar institutions have started offering high-yield online savings accounts that outearn their regular savings accounts by a mile.
It’s not that there aren’t any advantages to keeping a savings account at the same institution as your checking account — you do get slightly quicker transfers between the accounts, and you can see both accounts in a single app dashboard. If these benefits are important to you, check out Ally Bank, Discover Bank or Capital One 360. They offer competitive rates on both savings and checking, and Capital One 360 also has the benefit of branches in select states.

What other high-yield savings options do I have?

  • Money market account: A money market account features the same transaction limitations as a savings account, thanks to Regulation D. Money market accounts generally come with a debit card and checks, unlike most standard savings accounts. Money market accounts also tend to require higher minimum deposits and balances, and are more likely to charge a monthly fee than a savings account.
  • Checking account: A checking account is a highly liquid deposit account designed for handling your everyday expenses. They don’t typically earn any interest — when they do, they feature lower rates than savings accounts. Unlike savings accounts, there are no transaction limitations on checking accounts.
  • Certificates of deposit: CDs are a fixed-rate, fixed-term savings account. Each CD has a set term, typically between three and 60 months. Once you make your opening deposit, you cannot withdraw your money until the CD term ends. Should you make what is known as an early withdrawal, you’ll face a penalty — typically a portion of the interest earned on the account. The interest rate remains the same for the length of the term, unlike savings account rates, which are variable.
  • Mutual funds: A mutual fund is an investment vehicle, not a deposit account. Mutual funds invest in stocks, bonds or other assets, and allow you to diversify your investment portfolio.
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Important savings account definitions

A savings deposit is defined by the Federal Reserve’s Regulation D as having two distinct features: a reservation of right clause and a monthly limit on the number of “convenient” transfers or withdrawals.

Of these two features, the monthly limit on “convenient” transfers is most strictly observed. You are limited to six preauthorized and automatic transfers, telephone transfers and withdrawals and transfers made by check, debit card or a similar method. Going over this limit results in a fee per transaction.

Transfers and withdrawals that are not limited include those made in person at the bank, by mail, by using an ATM or over the phone when the withdrawal is disbursed via check mailed to the you.

Interest

Interest is the yield you earn on your savings deposit, otherwise known as the principal balance. It’s the profit given to you by the bank in exchange for your savings deposit, unlike the interest you owe on a loan.

Rate of interest

The rate of interest is the percentage your money earns in a savings account in one year. This is also referred to as the simple interest rate. Simple interest is different from annual percentage yield (APY), which is explained below.

Compound interest

Compound interest refers to the process by which interest earnings are added back into the principal balance in a savings account, which “compounds” the growth rate of your money. Interest can be compounded — or added back into the principal balance — daily, monthly, quarterly, semiannually or annually.

This process lets your interest earn interest. For example, daily compounding means your principal balance earns interest today, the interest is then added to the principal and that new higher balance earns slightly more interest tomorrow, and so on.

Annual percentage yield (APY)

Savings accounts are typically marketed by referencing their annual percentage yield rather than their simple interest rate. Annual percentage yield takes into account the extra impact of compounding interest over the course of one year. An account’s APY is always higher than the simple interest rate.

Yield rate

The yield rate is how much your savings balance will increase over a given period of time. Unlike simple interest, yield rate operates according to a specified time period. Unlike APY, yield rate is not tied to an annual calculation, so it can represent returns over a number of months or years, for example.

Minimum balance requirement

Many savings accounts have minimum balance requirements, or the amount of money you must keep in your account. Minimum balance thresholds are often required to earn interest or waive a monthly fee.

What are the best banks for savings accounts?

Here’s a summary of our top picks:

  • 1.30% APY – Goldman Sachs Bank USA
  • 1.15% APY – American Express National Bank
  • 1.15% APY – Capital One
  • 1.15% APY – Barclays Bank
  • 1.25% APY – Ally Bank
  • 1.05% APY – Synchrony Bank
  • 1.35% APY – Vio Bank
  • 1.35% APY – Live Oak Bank
  • 1.10% APY – BrioDirect
  • 1.25% APY – CIT Bank
  • 1.30% APY – Citizens Access
  • 1.35% APY – CIBC Bank USA
  • 1.75% APY – Fitness Bank
  • 1.60% APY – First Foundation Bank
  • 1.36% APY – SFGI Direct
  • 1.55% APY – Prime Alliance Bank
  • 1.30% APY – HSBC Direct
  • 1.35% APY – Comenity Direct
  • 1.35% APY – Popular Direct
  • 6.17% APY – Digital Federal Credit Union

Savings Account FAQs

Your money is safe in a savings account as long as you bank with a reputable, insured institution. Your money is protected in case of bank failure by the FDIC for bank deposits or by the NCUA for credit union deposits. Your money should also be protected by safety measures taken by each institution, like firewalls, encryption, antivirus and anti-fraud detection and more. If you want to know more about the systems your bank has in place, you can typically find the information on their website or by giving them a call. It’s a good idea to take safety and privacy into account when shopping for the best savings account.

Deposit accounts aren’t listed on your credit report and they’re not subject to hard credit pulls, unlike when you apply for and use loans or credit cards. The activity in your savings account won’t affect your credit score, nor will the number of times you open a savings account. That doesn’t mean your deposit accounts go unmonitored. ChexSystems is a reporting system that tracks your banking activity. Most banks use ChexSystems to check your banking history for any previous overdrafts, negative balances, account closures and the like. If you do have a rocky banking history, this could make it more difficult for you to open future bank accounts. Still, opening multiple accounts won’t count against you.

You usually can open two or more savings accounts at the same bank, depending on the bank’s own policies. Each account will have its own account number. This tactic can be good for separating different savings goals. Oftentimes, banks can offer more than one type of account which can fit different needs. However, this doesn’t mean that you’ll get the best rates at the same bank. It’s still a good idea to shop across multiple banks to find the best savings account that suits your needs.

You can make ACH transfers and wire transfers from a savings account. If your account includes a debit/ATM card or checks, you can also make payments via those methods. Still, don’t forget that savings accounts are limited to six transfers and withdrawals per statement cycle. If you exceed these limits, you run the risk of incurring excessive withdrawal fees or having your savings account closed altogether.

Most savings accounts don’t include a debit or ATM card, which limits your ability to make in-person purchases. However, you can set up an ACH or wire transfer with your savings account number and bank routing number to send money for a purchase.

The federally imposed six-transaction limit on savings accounts applies to what are considered “convenient” transfers. These include preauthorized and automatic transfers, transfers made over the phone and withdrawals and transfers made by check or by debit or ATM card.You can withdraw money from your savings account an unlimited number of times when made at the bank in person, at an ATM or over the phone if the withdrawal is sent to you via check.

The choice between bank and credit union is largely based on personal preference.
Credit unions tend to be more community-focused than banks. You’re a member of a credit union, not a customer, so credit union members often have a say in credit union governance matters and elections. Plus, credit unions are often based around a specific geographic area, so you can build relationships with employees and fellow members.If it’s high-interest savings accounts you’re after, an online bank is probably your best bet over a traditional bank or credit union. Online savings accounts typically offer the highest rates around and their digital presence makes it easy to access your funds at any time during the day.If you’re still looking for high-interest rates, and aren’t afraid to lock away your cash for long periods of time, take a look at our recommended selection of the best credit unions which tend to offer some of the most competitive CD rates across the board.

You have to pay taxes on your savings account (and other deposit accounts) if you earned $10 or more in interest per year.Your bank will send you (and the IRS) a copy of Form 1099-INT if you meet or exceed this interest earnings threshold. If you don’t receive a 1099-INT from your bank, but earned $10 or more in interest, you’ll still need to report the earnings on your tax return.

Interest earnings are considered regular income for tax purposes. If you earned more than $1,500 in interest, you’ll need to detail the sources of that income on Schedule B of Form 1040.

Online banks don’t incur the costs of maintaining brick-and-mortar branches. These costs include rent, building maintenance, staff salaries and the cost of keeping physical cash safe. Without these expenses weighing them down, online banks reap big savings — savings they then pass on to their customers in the form of high interest rates

You may wish to open multiple savings accounts if you’re an individual with over $250,000 in savings. The FDIC and NCUA insurance only cover your bank accounts at the institution level. If you have an amount that exceeds the $250,000 insurance limit, you should spread your money out between multiple banks.This means that even if you have multiple savings accounts at the same bank, they would all be subject to the same $250,000 insurance limit. However, if you were to open multiple savings accounts across different institutions, you would be guaranteed up to $250,000 at each bank. This would allow all your money to be FDIC- or NCUA-insured.

Technically, there’s nothing stopping you from opening as many savings accounts as you want. However, this can get pretty cluttered and you can lose track of all your finances easily if you’re not careful. Make sure you’re getting the best savings rates for each account you open by shopping around.

Number of consumers saving in May 2020 skyrocketed to near pre-pandemic levels due to relief checks, reduced spending

As the COVID-19 pandemic continues to place financial strains on many households, we surveyed more than 1,100 American consumers about their savings habits in May 2020. Here’s what we found:

  • As stimulus checks hit bank accounts, the number of Americans who added money to savings in May skyrocketed back to near pre-pandemic levels. About 42% put money away in May, almost 10 percentage points higher than April.

  • Just 13% of consumers said they don’t have any money saved. That’s the lowest number we’ve seen in the eight-month history of the savings index, and a good sign amid the pandemic.

  • Top 5 things consumers are saving for: general savings (36%), emergencies (35%), retirement (26%), vacation (23%) and a new car (17%).

  • Gen Xers saved the most money in May, with 51% adding money to savings. Gen Zers saved the least, at just 32%.

Survey Methodology

MagnifyMoney commissioned Qualtrics to conduct an online survey of 1,136 Americans, with the sample base proportioned to represent the overall population. The survey was fielded May 5-8, 2020.

We defined generations as the following ages in 2020:

  • Gen Z are ages 18 to 23
  • Millennials are ages 24 to 39
  • Gen X are ages 40 to 54
  • Baby boomers are ages 55 to 74
  • Silent Generation are ages 75 and older

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The Best Airline Credit Cards — June 2020

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners. This site may be compensated through a credit card partnership.

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best airline credit cards
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For those who travel regularly, the chance to earn more loyalty miles with an airline rewards credit card can be tempting. Airline cards offering a generous sign-up bonus and more miles per dollar spent on certain purchases can add miles to your account, resulting in free flights or seat upgrades. And if you choose the right card, you can also get sweet travel perks, such as priority boarding and free checked luggage.

Most airline credit cards reward frequent flyers for their loyalty, along with enticing others who might not yet favor any particular airline. Below are our picks for the best credit cards for the top six U.S. airlines.

In this guide, we’ll cover:

Best credit card for United Airlines

United ClubSM Card from Chase Bank

United ClubSM Card from Chase Bank

The information related to United ClubSM Card from Chase Bank has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

United ClubSM Card from Chase Bank

Regular Purchase APR
18.24% to 25.24% Variable
Annual fee
$450
Rewards Rate
Earn rewards faster with 1.5 miles per $1 spent on purchases.

What we like about it:

  • Earn 50,000 bonus miles after you spend $3,000 on purchases in the first 3 months from account opening. But don’t get too excited about this offer if you’ve nabbed a bonus from this card before — this offer is not available to either current cardmembers of this credit card, or previous cardmembers of this credit card who received a new cardmember bonus for this credit card within the last 24 months.
  • The United ClubSM Card from Chase Bank is the only one that gives you a full membership into the United ClubSM. This means you can visit any United lounge at the airport regardless of what airline you are flying, and some Star Alliance® lounges when you fly on those airlines.
  • Earn rewards faster with 1.5 miles per $1 spent on purchases.
  • You also get great perks when flying aboard United, including Premier Access® travel services and free first and second checked bags — that can easily shave a couple hundred bucks off your cost of flying.

Who is the card best for?

If United is your primary airline and you plan to take more than one international trip every year, the United MileagePlus® Club Card is your best bet. Getting United ClubSM membership from the card is $100 cheaper than buying membership without top tier status. And getting two checked bags on United and some lounge benefits when flying Star Alliance airlines can add up to good long-term value.

Best credit cards for American Airlines

CitiBusiness®/ AAdvantage® Platinum Select® World Mastercard®

CitiBusiness®/ AAdvantage® Platinum Select® World Mastercard®

The information related to CitiBusiness®/ AAdvantage® Platinum Select® World Mastercard® has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

CitiBusiness®/ AAdvantage® Platinum Select® World Mastercard®

Regular Purchase APR
15.99% - 24.99% (Variable)
Annual fee
$99, waived for first 12 months
Rewards Rate
Earn 2 AAdvantage® miles per $1 spent on eligible American Airlines purchases. Earn 2 AAdvantage® miles per $1 spent on purchases at telecommunications merchants, cable and satellite providers, car rental merchants and at gas stations

What we like about it:

  • Earn 70,000 American Airlines AAdvantage® bonus miles after spending $4,000 in purchases within the first 4 months of account opening..
  • In addition to offering a first checked bag free on domestic American Airlines® itineraries and preferred boarding on American Airlines® flights, this is the only American Airlines co-branded offer from Citi that offers bonus points on everyday spending.
  • Earn 2 AAdvantage® miles per $1 spent on eligible American Airlines purchases. Earn 2 AAdvantage® miles per $1 spent on purchases at telecommunications merchants, cable and satellite providers, car rental merchants and at gas stations. Terms apply.

Who the card is best for?

If you have a small business and American is your primary airline, this card could earn you the most AAdvantage® miles over time. Earning 2 AAdvantage® miles on telecommunications, car rental merchants, and gas stations are among the most generous categories for airline cards, granting many opportunities to earn bonus miles at the places you spend money weekly.

AAdvantage® Aviator® Red World Elite Mastercard®

AAdvantage® Aviator® Red World Elite Mastercard® from Barclays

The information related to AAdvantage® Aviator® Red World Elite Mastercard® from Barclays has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

AAdvantage® Aviator® Red World Elite Mastercard® from Barclays

Regular Purchase APR
17.49% - 26.49% Variable
Annual fee
$99
Rewards Rate
Earn 2X AAdvantage® miles on eligible American Airlines purchases, 1X AAdvantage® miles on all other purchases.

What we like about it:

  • Earn 60,000 bonus miles after making your first purchase in the first 90 days and paying the annual fee.
  • A free checked bag free for the primary cardholder and up to four companions on domestic flights operated by American Airlines.
  • Preferred boarding for the primary cardholder and up to four companions on the reservation for all American Airlines-operated flights.
  • Earn $3,000 Elite Qualifying Dollars (EQDs) after spending $25,000 on the card during a calendar year — but only if you signed up for the card after Jan. 1, 2018. You’ll have until Dec. 31, 2019, to earn EQDs — then the benefit goes away permanently.
  • Receive a 25% statement credit on in-flight food and beverages when using the card.

Who the card is best for?

If you are loyal to American Airlines, the AAdvantage® Aviator® Red World Elite Mastercard® is a good fit. With the bonus miles, free checked luggage and the in-flight discount, using this as your primary credit card could yield good value over time if you fly American Airlines regularly.

Best credit cards for Alaska Airlines

Alaska Airlines Visa® Credit Card

What we like about it:

  • $100 statement credit, 40,000 bonus miles and Alaska's Famous Companion Fare™ from $121 ($99 fare plus taxes and fees from just $22) after you make $2,000 or more in purchases within the first 90 days of opening your account.
  • Earn unlimited 3 miles for every $1 spent on eligible Alaska Airlines purchases and unlimited 1 mile for every $1 spent on all other purchases.
  • Every account anniversary date, earn Alaska’s Famous Companion Fare™. Buy one ticket and get a second one for just taxes and fees ($99 base fare plus applicable taxes and fees from $22 depending on your flight itinerary) after you make $1,000 or more in purchases within the first 90 days of your account opening.
  • Alaska Airlines® Mileage Plan™ miles are among the most flexible available since they can be used on more than a dozen different airlines.

Who the card is best for?

Even if you don’t live in a city served by Alaska Airlines, this card is good for flexible rewards across carriers. Use your Alaska Airlines Mileage Plan awards to more than 900 destinations around the world on Alaska Airlines and 17 global carriers including American Airlines, British Airways, Emirates, Japan Airlines, Qantas and Singapore Airlines. This card’s combination of a lower annual fee and award availability across multiple airlines makes it a good option for those who might not have considered Alaska Airlines previously.

Best credit card for JetBlue

JetBlue Card

JetBlue Card from Barclays

The information related to JetBlue Card from Barclays has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

JetBlue Card from Barclays

Regular Purchase APR
17.49%, 21.49% or 26.49% Variable
Annual fee
$0
Rewards Rate
3X points on JetBlue purchases, 2X points at restaurants & grocery stores, 1X points on all other purchases.

What we like about it:

  • Earn 10,000 bonus points after spending $1,000 on purchases in the first 90 days.
  • 3X points on JetBlue purchases, 2X points at restaurants & grocery stores, 1X points on all other purchases.
  • 50% discount on in-flight cocktail and food purchases.
  • Earn 3 TrueBlue points per dollar spent at Amazon.com when you shop onboard your JetBlue flight using Fly-Fi® and the card.
  • Pool points together as a family, which means all miles earned by your household can go toward JetBlue award flights faster.

Who the card is best for

If you travel regularly on JetBlue, this card, with its $0 annual fee is a good option because it helps you earn real miles towards discounted travel. If you are just entering the world of airline miles and live near a JetBlue airport, the JetBlue Card is a great beginner option. With a $0 annual fee and 2X points at restaurants and grocery stores, this card can help you earn real miles towards discounted travel. This card is also great for those who use JetBlue as a secondary airline. Because there is a $0 annual fee, you won’t have to worry about justifying rewards by holding this card.

Best credit card for Delta

Delta SkyMiles® Gold American Express Card

Delta SkyMiles® Gold American Express Card

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on American Express’s secure website

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Delta SkyMiles® Gold American Express Card

Annual fee
$0 introductory annual fee for the first year, then $99.
Rewards Rate
Earn 2X Miles on Delta purchases, at restaurants worldwide and at U.S. supermarkets and 1X Mile on all other eligible purchases.
Regular Purchase APR
15.74%-24.74% Variable

What we like about it:

  • Earn 35,000 bonus miles after you spend $1,000 in purchases on your new Card in your first 3 months.
  • This card also offers a generous checked luggage fee waiver for cardholders: The fee waiver is available to those traveling on the same reservation as the primary card member, with a maximum of nine waivers per reservation.
  • Earn 2X Miles on Delta purchases, at restaurants worldwide and at U.S. supermarkets and 1X Mile on all other eligible purchases.
  • The card also offers priority boarding for cardholders.

Who the card is best for?

If you fly Delta regularly with a family or business colleagues, this is the best card you can hold that balances the annual fee with good benefits. The checked luggage fee waiver covers more companions on the same itinerary than any other card, while the priority boarding allows you to get access to overhead bin space before other flyers. Plus, you can try out the card without a large financial commitment, since there’s a $0 introductory annual fee for the first year, then $99.

But if Delta is the only airline you fly, you may consider getting a credit card with a higher annual fee that offers more benefits and opportunities to earn Medallion Qualifying Miles.

To see rates & fees for the Delta SkyMiles® Gold American Express Card, please click here.

Best credit card for Southwest Airlines

Southwest Rapid Rewards® Priority Credit Card

Southwest Rapid Rewards® Priority Credit Card

The information related to Southwest Rapid Rewards® Priority Credit Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Southwest Rapid Rewards® Priority Credit Card

Regular Purchase APR
15.99% - 22.99% Variable
Annual fee
$149
Rewards Rate
2 points per $1 spent on Southwest® purchases and Rapid Rewards® hotel and car rental partner purchases. 1 point per $1 spent on all other purchases.
Credit required
excellent-credit
Excellent

What we like about it:

  • Earn 40,000 points after you spend $1,000 on purchases in the first 3 months your account is open.
  • 2 points per $1 spent on Southwest® purchases and Rapid Rewards® hotel and car rental partner purchases. 1 point per $1 spent on all other purchases.
  • The chance to earn 1,500 tier qualifying points that help you earn A-List elite status every time you spend $10,000 on the card.
  • Annual $75 statement credit
  • 7,500 bonus points every card anniversary
  • 20% statement credit when you use the card for in-flight drinks, messaging, movies and Wi-Fi.
  • Four passes for upgraded boarding every year.

Who the card is best for

For loyal Southwest Airlines customers who want a co-branded airline credit card that comes with the best perks, the Southwest Rapid Rewards® Priority Credit Card, unveiled in July 2018, is a popular one to consider. You’ve got to love a card that helps you earn elite status. While anyone flying on this airline gets two free checked bags, this card gives you four priority boarding passes a year, along with an in-flight credit every time you use the card to pay for drinks and Wi-Fi.

There’s also the chance to earn Southwest’s popular Companion Pass. Once you fly 100 qualifying one-way flights or earn 125,000 qualifying points in a calendar year, you can bring a companion — for free — on every one of your flights for the following full calendar year, plus the remainder of the year in which you earned the pass.

Best credit union airline card

Visa® Platinum Rewards Credit Card from American Airlines CU

Visa® Platinum Rewards Credit Card from American Airlines CU

Visa® Platinum Rewards Credit Card from American Airlines CU

Regular Purchase APR
10.75% - 16.49% Variable
Annual fee
$0
Rewards Rate
Earn one Connection Point for every dollar spent on signature based purchases!

What we like about it:

  • Earn one Connection Point for every dollar spent on signature based purchases!
  • Redeem the card’s Connection Points for gift cards, travel on any airline, hotels, rental cars, cruises and brand–name merchandise.
  • If you also have an American Airlines Credit Union Visa debit card, you’ll also earn Connection Points when making purchases on it.
  • There are no foreign transaction fees.

Who the card is best for:

You must be a professional in the air transportation industry or related to someone who is in order to become a member of the AACU. That includes those who work for the Transportation Security Administration, the FAA, cargo carriers, air courier services, airport baggage handling, commercial airport janitorial, aircraft cleaning, maintenance, servicing, and repair services, airport runway maintenance services and on-board airline food services.

Once approved, you’re eligible to apply for the card. If you’re looking for a card where you can use your points for multiple airlines instead of just one single airline, this card could be great for you. However, you can earn better rewards if you opt for an airline credit card tied to a single airline, such as American, as those typically offer better rewards and more travel-related perks.

Learn More

To find the best airline credit cards, we looked at several different features. First, we looked at which cards had specific airline partnerships, not just perks for specific airlines. From there, we narrowed down our picks to focus on non-premium cards, so this article could be more accessible. Finally, we looked for which cards had the best rewards programs, balancing it against annual fees and the APRs on balances.

As a secondary measure, we looked at all the other perks that come with a card, including free checked bags, no foreign transaction fees, and rental car and trip insurances. These benefits can help to offset the annual fee, or provide you even more value than a more stripped-down card.

Although earning airline miles sounds great for free travel, there are situations that can prevent you from flying. With all credit cards, you should watch out for these downsides:

  • Points devaluation: Miles aren’t a good long-term investment, because their value is constantly subject to change. If you aren’t planning to use your miles regularly, you could be better served with a cash-back credit card.
  • Hidden fees: Even when using credit card miles, hidden fees for redeeming miles, cancelling trips, or transferring miles to other people can cut your overall value quickly. Be sure to understand all the fees you may face before you decide if a card is right for you.
  • Blackout dates and reward restrictions: Airlines often place restrictions on the number of seats available on flights, while some dates are completely closed off for awards and companion passes. Unless you can use your airline miles on the dates you want, an airline credit card may not be your best option.
  • Partner carrier rules: Although you can book flights with miles on partner airlines, their prices are often higher and come with more restrictions on dates and routes. Before you commit to one airline program, be sure you understand how to use miles for partner flights — both the number required and special rules for using them.

Extra perks are all well and good, and airline credit cards can be rewarding for many frequent flyers, but they aren’t the best choice for everyone.

If you are thinking about applying, ask these four questions first:

  1. Am I loyal to one airline?
    If you primarily fly one airline and want to maximize your miles towards free flights, an airline credit card could make sense. If not, consider a card that earns bank points or cash back instead.
  2. Do I want miles specifically for flying?
    If your goal is to fly more often for a lower price, airline credit cards can help you achieve that plan by earning miles for your everyday spending. Most miles can’t be used for anything outside flying, however, so it’s important to carefully consider how many miles you need for a flight.
  3. Are frequent flyer perks right for me?
    Most credit cards offer a number of airport bonuses, including priority boarding, checked luggage fee waivers and lounge passes. If you find value in checking luggage for free or stopping at a lounge for a beverage, then an airline credit card is the right choice for your spending.
  4. Will I get the value of the credit card annual fee in return every year?
    Many airline credit cards come with annual fees. If your airline rewards (from perks and free flights) add up to more than the annual fee, then you’re getting a good value from your credit cards.

MagnifyMoney has plenty of options to help you find the right credit card for you. If you want to compare airline credit cards on your own, consider the following:

  • Point values: Not all miles are equal in value. It’s important to understand how many miles you need to take a flight, and if an airline credit card will help you get there.
  • Foreign transaction fees: While most airline credit cards offer no foreign transaction fees, many charge fees of 3%. If you plan on traveling abroad, a card with no foreign transaction fees is a must.
  • Free checked bags: Although most cards come with one free checked bag for cardholders, high-end cards may allow two free checked luggage pieces. Additionally, the number of available pieces varies between cards and airlines, with some offering up to nine people on the same itinerary.
  • Extra benefits: Annual free lounge passes and priority boarding are two of the luxuries offered to most airline credit card holders. In turn, these perks can help you justify the value of credit cards.
  • Point flexibility: Although you often can’t use miles for hotel rooms or rental cars, some programs allow more flexibility than others. If you want to use your miles for other rewards, be sure to understand how much those values would cost.

The information related to Alaska Airlines Visa® Credit Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

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