Updated July 13, 2018
After years of low interest rates, there is a pricing war happening for online savings accounts. Long gone are the days of 0.01% APY. If you are willing to open an online savings account (which is FDIC insured), you can now easily get a 1.65% APY or higher. Interest rates are only increasing online: traditional brick and mortar banks continue to pay very low rates. A typical savings account at a big bank only pays 0.01% APY.
The best online banks offer perks like no minimum balance, ATM access and much higher interest rates than the average savings account. Here are the best online savings accounts (and this post is updated regularly).
1. High Rate: Goldman Sachs Bank USA – 1.80% APY, no minimum balance (but no ATM access)
Our advertiser Marcus by Goldman Sachs, the consumer bank of Wall Street giant Goldman Sachs, offers a 1.80% APY on deposits. There is no minimum balance 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 1.80% 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.
on Goldman Sachs Bank USA’s secure website
2. High Rate: Synchrony Bank – 1.75% APY, no minimum balance (and ATM access)
on Synchrony Bank’s secure website
3. High Rate: American Express National Bank – 1.75% APY, no minimum balance (and no fees)
Our sponsored advertiser, American Express National Bank, offers a Personal Savings account, which earns a 1.75% variable APY. 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.
on American Express National Bank’s secure website
4. High Rate: Barclays Bank – 1.75% APY, no minimum balance
Barclays 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 1.75% 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.
on Barclays’s secure website
5. Top Choice: Ally Bank – 1.75% APY, no minimum balance and you can get a free checking account
Ally is a bank without branches that has consistently been paying high interest rates on savings accounts. Ally has no minimum balance requirement and will pay 1.75% APY. 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.
on Ally Bank’s secure website
6. High Rate: Citibank – 1.60% APY, $10,000 minimum balance
Citibank, best known for their credit cards, is currently offering an outstanding 1.60% APY on their new savings account. If you’re able to deposit a minimum of $10,000, Citi will guarantee this rate for 12 months. This rate may not available in all markets. We think this a rare offer for those who qualify as it’s unique to find a bank who will guarantee a rate for a set amount of time outside of a certificate of deposit (CD).
on Citibank’s secure website
7. Highest Overall Rate: Salem Five Direct – 2.05% APY, $100 to open
Salem Five Direct is the online bank division of Salem Five Cents Savings Bank, a community bank based in Salem, Massachusetts. Salem has been around for more than 150 years and all deposits are insured by the FDIC up to the legal limit. You only need $100 to open this account, and there are no monthly maintenance fees. However, they do have a few limitations to be aware of. First, according to their online banking agreement, Salem Five Direct limits the dollar amount of their External Transfers to $5,000 per transaction, $5,000 in aggregate per day, and $20,000 in aggregate per month. So, if you decide to have more than one account with them, like their money market account, they’ll look at the aggregate amount of External Transfers conducted from both the savings account and money market account. Second, account holders are limited to six withdrawals per statement cycle due to Federal Regulations. If you exceed the six withdrawal limit, they’ll charge you $10 per additional transaction. Finally, the web and mobile experiences are not great. But, if you give them a call (which we have done), you will get friendly service from a community bank. While this bank does offer one of the best rates for an online savings account, we want you to be aware of their limitations.
8. High Rate: Northpointe Bank – 1.95% APY, $25,000 minimum balance amount
Northpointe Bank is a fairly small institution when compared to some of the bigger banks on this list. However, they’ve quickly accumulated over $800 million in assets. This month, they’ve made it on to our list due to their outstanding APY of 1.95% on their Ultimate Savings Account. In order to earn this rate, you’ll need to maintain a minimum balance amount of $25,000. If your balance drops below $25,000, you’ll still be able to earn a 1.12% APY. If your balance rises above $1 million, the APY will also drop to 1.12%. There are no monthly fees associated with this account, but there may be a $15 excessive transaction fee if you make more than six transactions per month. Northpointe Bank allows you to easily manage the account via their mobile app.
9. High Rate: CIBC Bank USA – 1.90% APY, $1,000 to open
CIBC Bank USA is the U.S. division of a Canadian based bank. This division was established in 1991 and has since acquired over $25 billion in assets. Currently, CIBC Bank USA is offering an online-only savings account with a competitive APY of 1.90%. You’ll only need $1,000 to open the account. While there isn’t a monthly maintenance fee, you may be charged $10 if you make more than six transactions per statement cycle. CBIC Bank USA does have a mobile banking app, but make sure that you download the app for the U.S., not Canada.
10. High Rate: PurePoint Financial – 1.90% APY, $10,000 to open
PurePoint Financial is a division of the MUFG Union Bank, N.A., otherwise known as Union Bank. Together, PurePoint Financial and Union Bank have over $120 billion dollars in assets and are powered by one of the largest financial groups in the world, Mitsubishi UFJ Financial Group (MUFG). PurePoint Financial’s online savings account currently has an APY of 1.90% with an opening deposit amount of $10,000. You’ll also have to maintain that balance to earn the APY. If the balance falls below $10,000, the APY will drop to 0.25%. The only fee associated with this account is as a result of making more than six transactions per month. If this happens, a $10 Excess Activity Fee will be applied to your account. PurePoint Financial allows you to safely manage your account online via your computer or mobile phone, but they don’t have a mobile app just yet.
11. High Rate From A Credit Union: Alliant – 1.70% APY, $5 to open and ATM access.
People love credit unions. Because credit unions are owned by their members, you can get a higher interest rate on your savings (and lower interest rates when you borrow). Alliant is one of the best credit unions in the country, offering some of the best rates on your savings. In addition, Alliant has a great website and digital experience. Anyone can join the credit union and you only need $5 to open the account. Be aware, however, that when you go to apply for this account, Alliant will pull a soft credit inquiry for all applicants. Alliant also mentions that if you have a credit freeze, you won’t be able to apply unless you temporarily release the freeze.
Runner-Up: For Small Balance Savers – Digital Federal Credit Union – 5.12% APY up to $1k
Digital Federal Credit Union (DCU) currently offers a nice account for people who are just starting to save. You can earn an APY of 5.12% 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.
How to Find the Right Account For You
Take a moment to calculate how much you could earn using our free saving account comparison tool. Enter your zip code and how much you have to save and you’ll see the best savings accounts for you and save more this year. If you have a large balance, the tool might find better options than the no minimum balance options we’ve listed here.
If you are willing to lock your money into a longer term, consider a certificate of deposit. You can find the best CD rates here.
Your money deserves more than 0.01%. At that rate you’re basically giving a free loan to the bank, not a favor they’d return to you!
You can learn more about how our site is financed here.
Featured Accounts AD
Barclays 12 Month Online CD
Synchrony Bank 12 Month CD
Ally Bank High Yield 12-Month CD
Goldman Sachs Bank USA High-yield Online Savings Account
* Sponsors listed are Member FDIC or NCUA insured.