Best of

Best Savings Accounts of August 2019

NerdWalletAugust 1, 2019

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Summary of Best Savings Accounts of August 2019

BankAPYLearn More
Citizens Access Online Savings Account

Citizens Access Online Savings Account

at Citizens Access,

Member, FDIC

2.20%

With $5000 minimum balance

at Citizens Access,

Member, FDIC

Barclays Online Savings Account

Barclays Online Savings Account

at Barclays,

Member, FDIC

2.10%

With $0 minimum balance

at Barclays,

Member, FDIC

Discover Online Savings

Discover Online Savings

at Discover,

Member, FDIC

2.00%

With $0 minimum balance

at Discover,

Member, FDIC

PurePoint® Financial Online Savings

PurePoint® Financial Online Savings

2.15%

With $10000 minimum balance

Axos Bank™ High Yield Savings

Axos Bank™ High Yield Savings

1.30%

With $1 minimum balance

Alliant Credit Union High-Rate Savings

Alliant Credit Union High-Rate Savings

2.10%

With $100 minimum balance

FNBO Direct Online Savings Account

FNBO Direct Online Savings Account

2.10%

With $1 minimum balance

Popular Direct Ultimate Savings Account

Popular Direct Ultimate Savings Account

2.55%

With $5000 minimum balance

Bank7 High Rate Online Savings

Bank7 High Rate Online Savings

NerdWallet rating 

at Bank7,

Member, FDIC

2.15%

With $100 minimum balance

at Bank7,

Member, FDIC

Bank5 Connect High Interest Savings Account

Bank5 Connect High Interest Savings Account

2.05%

With $100 minimum balance

Ally Bank Online Savings Account

Ally Bank Online Savings Account

1.90%

With $1 minimum balance

Synchrony Bank High Yield Savings Account

Synchrony Bank High Yield Savings Account

2.15%

With $1 minimum balance

HSBC Online Savings Account

HSBC Online Savings Account

at HSBC,

Member, FDIC

2.20%

With $1 minimum balance

at HSBC,

Member, FDIC

Goldman Sachs Bank USA Online Savings

Goldman Sachs Bank USA Online Savings

at Goldman Sachs Bank USA,

Member, FDIC

2.15%

With $0 minimum balance

at Goldman Sachs Bank USA,

Member, FDIC

Vio Bank High Yield Online Savings Account

Vio Bank High Yield Online Savings Account

2.52%

With $100 minimum balance

American Express National Bank High Yield Savings Account

American Express National Bank High Yield Savings Account

2.10%

With $1 minimum balance

BankAPYLearn More
Citizens Access Online Savings Account

Citizens Access Online Savings Account

at Citizens Access,

Member, FDIC

2.20%

With $5000 minimum balance

at Citizens Access,

Member, FDIC

Barclays Online Savings Account

Barclays Online Savings Account

at Barclays,

Member, FDIC

2.10%

With $0 minimum balance

at Barclays,

Member, FDIC

Discover Online Savings

Discover Online Savings

at Discover,

Member, FDIC

2.00%

With $0 minimum balance

at Discover,

Member, FDIC

PurePoint® Financial Online Savings

PurePoint® Financial Online Savings

2.15%

With $10000 minimum balance

Axos Bank™ High Yield Savings

Axos Bank™ High Yield Savings

1.30%

With $1 minimum balance

Alliant Credit Union High-Rate Savings

Alliant Credit Union High-Rate Savings

2.10%

With $100 minimum balance

FNBO Direct Online Savings Account

FNBO Direct Online Savings Account

2.10%

With $1 minimum balance

Popular Direct Ultimate Savings Account

Popular Direct Ultimate Savings Account

2.55%

With $5000 minimum balance

Bank7 High Rate Online Savings

Bank7 High Rate Online Savings

NerdWallet rating 

at Bank7,

Member, FDIC

2.15%

With $100 minimum balance

at Bank7,

Member, FDIC

Bank5 Connect High Interest Savings Account

Bank5 Connect High Interest Savings Account

2.05%

With $100 minimum balance

Ally Bank Online Savings Account

Ally Bank Online Savings Account

1.90%

With $1 minimum balance

Synchrony Bank High Yield Savings Account

Synchrony Bank High Yield Savings Account

2.15%

With $1 minimum balance

HSBC Online Savings Account

HSBC Online Savings Account

at HSBC,

Member, FDIC

2.20%

With $1 minimum balance

at HSBC,

Member, FDIC

Goldman Sachs Bank USA Online Savings

Goldman Sachs Bank USA Online Savings

at Goldman Sachs Bank USA,

Member, FDIC

2.15%

With $0 minimum balance

at Goldman Sachs Bank USA,

Member, FDIC

Vio Bank High Yield Online Savings Account

Vio Bank High Yield Online Savings Account

2.52%

With $100 minimum balance

American Express National Bank High Yield Savings Account

American Express National Bank High Yield Savings Account

2.10%

With $1 minimum balance

Citizens Access Online Savings Account

at Citizens Access,

Member, FDIC

APY

2.20%

With $5000 minimum balance

Barclays Online Savings Account

at Barclays,

Member, FDIC

APY

2.10%

With $0 minimum balance

Discover Online Savings

at Discover,

Member, FDIC

APY

2.00%

With $0 minimum balance

Bonus

$200

Requirements to qualify

APY

2.15%

With $10000 minimum balance

APY

1.30%

With $1 minimum balance

APY

2.10%

With $100 minimum balance

APY

2.10%

With $1 minimum balance

APY

2.55%

With $5000 minimum balance

Bank7 High Rate Online Savings

at Bank7,

Member, FDIC

3.5

NerdWallet rating 

at Bank7,

Member, FDIC

APY

2.15%

With $100 minimum balance

APY

2.05%

With $100 minimum balance

APY

1.90%

With $1 minimum balance

APY

2.15%

With $1 minimum balance

HSBC Online Savings Account

at HSBC,

Member, FDIC

APY

2.20%

With $1 minimum balance

Goldman Sachs Bank USA Online Savings

at Goldman Sachs Bank USA,

Member, FDIC

at Goldman Sachs Bank USA,

Member, FDIC

APY

2.15%

With $0 minimum balance

APY

2.52%

With $100 minimum balance

APY

2.10%

With $1 minimum balance

What is a savings account?

A savings account holds money that you don’t need for daily spending. Unlike most checking accounts, savings accounts earn interest — that’s money the bank adds to your account just for keeping it with the institution. The higher your bank’s savings account interest rate, the faster your balance will grow.

What do the best savings accounts look like?

The best savings account interest rates are close to 2.00% or higher. At a brick-and-mortar bank, you'll often find savings rates closer to the national average, which is currently 0.09%.

If you have a $5,000 savings balance, choosing an account that pays 2.00% will earn you about $100 in a year, while an account paying you the average would earn about $5. The difference increases the more you deposit and the longer you keep it in the account.

The best savings accounts also typically don’t charge monthly fees.

» Find out how your savings could add up with NerdWallet’s compound interest calculator.

Why are all of NerdWallet's picks for best savings accounts online?

It's easy to find a savings account at your local bank, but if you want to earn a high rate and pay the lowest fees, you should consider storing your savings online. Without the added expenses of large branch networks, online banks are able to offer more favorable returns than national brick-and-mortar banks.

» Learn more about NerdWallet's favorite high-yield online savings accounts.

Is my money safe in an online savings account?

Yes. All of the best savings accounts in NerdWallet's analysis are insured, just like bank accounts at national institutions. Most are insured by the Federal Deposit Insurance Corporation and others are insured by the National Credit Union Administration. Both cover up to $250,000 per depositor, per institution and per account type, in case your bank fails.

Can savings accounts lose money?

No. Unlike investment accounts, savings accounts are guaranteed not to lose money — provided your money is insured by the FDIC or NCUA. Whatever you put in an FDIC- or NCUA-insured account will stay there, unless your account charges fees (and, of course, unless you withdraw money).

Why should I care about the best savings account rates?

If you have money left in your checking account each month — or you can adjust your budget so that you do — you should have a savings account with a high rate. (Again, think around 2.00%.) It's always helpful to have money set aside for emergencies, and it'll earn you much more in an account that pays one of the best savings account rates than in a checking account.

Just make sure you can keep enough in your savings account to avoid monthly fees. Most online savings accounts don't charge these, but many traditional accounts do.

Do the best savings account interest rates change over time?

Yes, rates are variable and can change over time. The accounts featured in this article are among those with the consistently highest rates.

Savings account terms you need to know:

Savings account: A deposit account from a bank or credit union that earns interest.

Interest: Money a bank pays into an account over time.

Compound interest: Compound interest is the interest you earn on both your original money and on the interest you keep accumulating. In an account that pays compound interest, the return is added to the original principal at the end of every compounding period, typically daily or monthly. Each time interest is calculated and added to the account, the larger balance earns more interest.

Annual percentage yield: The annual percentage yield, or APY, is the amount of interest an account earns in a year. The calculation is based on the account’s interest rate and the number of times interest is paid during the year.

» Read more about 10 essential banking terms you need to know.

Are there other ways to save money besides a savings account?

Yes. Here are a few options:

Money market accounts: These accounts are a type of savings account, but they might have higher minimum balances and offer perks such as check-writing, which not all savings accounts do.

Certificates of deposit: These accounts lock your balance away for a specified period of time — often between one year and five years — in exchange for a higher interest rate. But if you withdraw any money during the term, you'll often have to pay a penalty. CDs are also covered by FDIC insurance.

Mutual funds: If you have a 401(k) through your job or an individual retirement account, or IRA, odds are you are putting some of your money in mutual funds. These are a type of investment that holds a little bit of many different types of stocks. Mutual funds are not covered by FDIC or NCUA insurance, and you can lose money on them — but you'll also typically earn a higher rate of return than you would on a savings account. They're best for long-term savings goals, such as retirement.

» Find out more about your savings account options.

Is savings account interest taxable?

Yes. Technically, all savings account interest is taxable, but your bank probably won't send you a form reporting it unless you've earned more than $10. So if you have a high-yield savings account, you're much more likely to pay taxes on your interest. You'll pay at your normal tax rate.

Last updated on August 1, 2019

Methodology

We took a close look at over 70 financial institutions, including the largest U.S. banks based on assets, debit card volume, internet search traffic and other factors; the nation’s largest credit unions, based on deposits as well as broad-based membership requirements; and other notable and/or emerging players in the industry. We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more.

Financial institutions surveyed include: Alaska USA Federal Credit UnionAlliant Credit UnionAlly BankAmerica First Credit UnionAmerican ExpressAspirationAssociated BankAxos BankBank5 Connect, Bank7, Bank of AmericaBank of the WestBarclays, BB&T, BBVABoeing Employees Credit Union, BMO Harris, Capital One 360Charles Schwab BankChaseChimeCITCitibankCitizens AccessCitizens Bank, Comerica Bank, Commerce BankConnexus Credit UnionConsumers Credit UnionDiscover Bank, E-Trade, FidelityFifth Third BankFirst National BankFirst Tech Federal Credit UnionGoBankGolden 1 Credit UnionGS BankHSBC Bank USAHuntington BankKeyBank, MetaBank, M&T BankMovenNavy Federal Credit UnionPentagon Federal Credit UnionPNC, Popular Direct, PurePoint Financial, Radius Bank, Redneck Bank, Regions BankSallie Mae BankSantander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, SimpleState Employees’ Credit Union of North CarolinaState Farm BankSuncoast Credit Union, SunTrust Bank, Synchrony BankTCF BankTD BankTIAA BankUnion BankUFB DirectUSAAU.S. BankVaro, Vio BankWells Fargo and Zions Bank.

How we rate banks and credit unions