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9 Best Savings Accounts of June 2020

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Savings accounts are federally insured financial products that can help your money grow. The best savings accounts have high annual percentage yields, or APYs. The higher the APY, the more money you'll earn over time.

The Federal Reserve emergency rate cuts of March 2020 encouraged many banks to lower their APYs. Some banks made minor changes while others made more significant cuts. The accounts featured in this article are among those with the consistently highest rates; they can help you bolster your emergency fund faster than an account with an average APY. (The national average is just 0.06%.)

NerdWallet staff analyzed, compared and rated dozens of banks and credit unions before selecting the savings accounts that offer the best combination of above-average rates and consumer-friendly features.

Summary of Best Savings Accounts of June 2020

BankNerdWallet Rating APYLearn More
Marcus by Goldman Sachs Online Savings Account

Marcus by Goldman Sachs Online Savings Account

at Marcus by Goldman Sachs,

Member FDIC

1.30%

With $0 minimum balance

at Marcus by Goldman Sachs,

Member FDIC

American Express National Bank Personal Savings

American Express National Bank Personal Savings

at American Express National Bank,

Member FDIC

1.15%

With $0 minimum balance

at American Express National Bank,

Member FDIC

FNBO Direct Online Savings Account

FNBO Direct Online Savings Account

1.00%

With $1 minimum balance

Read review
Sallie Mae Bank High-Yield Savings Account

Sallie Mae Bank High-Yield Savings Account

1.10%

With $0 minimum balance

Read review
Alliant Credit Union High-Rate Savings

Alliant Credit Union High-Rate Savings

1.20%

With $100 minimum balance

Read review
Barclays Online Savings Account

Barclays Online Savings Account

1.15%

With $0 minimum balance

Read review
Ally Bank Online Savings Account

Ally Bank Online Savings Account

1.25%

With $0 minimum balance

Read review
Nationwide My Savings

Nationwide My Savings

at Nationwide,

Deposits are FDIC Insured

1.51%

With $0 minimum balance

at Nationwide,

Deposits are FDIC Insured

Varo Savings Account

Varo Savings Account

at Varo,

Deposits are FDIC Insured

1.41%

With $0 minimum balance

at Varo,

Deposits are FDIC Insured

Marcus by Goldman Sachs Online Savings Account

at Marcus by Goldman Sachs,

Member FDIC

Marcus by Goldman Sachs Online Savings Account

Marcus by Goldman Sachs Online Savings Account

APY

1.30%

With $0 minimum balance

Bonus

N/A

at Marcus by Goldman Sachs,

Member FDIC


Bonus

N/A

Why we like it

The Wall Street firm’s online bank has a strong savings option with the high rate of 1.30% annual percentage yield as of 5/8/20 and no minimum balance requirement to start earning interest. Its online CDs also have top yields.

 

You can access the account online, via mobile app or by phone and contact customer support via online chat or by phone seven days a week. Check deposits must be mailed, so this account is easiest to use when linked to an external bank account for online transfers.

Read Full Review
American Express National Bank Personal Savings

at American Express National Bank,

Member FDIC

American Express National Bank Personal Savings

American Express National Bank Personal Savings

APY

1.15%

With $0 minimum balance

Bonus

N/A

at American Express National Bank,

Member FDIC


Bonus

N/A

Why we like it

This account does not charge monthly fees and does not require a minimum opening deposit. However, American Express reserves its mobile apps for credit card customers.

Read Full Review

FNBO Direct Online Savings Account

FNBO Direct Online Savings Account

APY

1.00%

With $1 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

You need one dollar to open FNBO Direct’s online savings account, which offers a 1.00% APY in an account free of monthly fees or minimum balance requirements. Although the rate is currently lower than that of other banks on this list, FNBO Direct has offered top APYs in the past. This account is worth keeping an eye on.

 

You can reach customer service representatives by phone at any time. Unlike some online banks, FNBO Direct also offers checking (with a decent interest rate), 529 college savings plans and certificates of deposit. The online-only bank and the Midwestern branch-based bank First National Bank of Omaha are part of the multi-state financial institution First National of Nebraska.

Read Full Review

Sallie Mae Bank High-Yield Savings Account

Sallie Mae Bank High-Yield Savings Account

APY

1.10%

With $0 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

There is no minimum required to open an account, and there is no monthly fee. The online account is accessible online and through an app. Customer service is available by phone on weekdays.

Read Full Review

Alliant Credit Union High-Rate Savings

Alliant Credit Union High-Rate Savings

APY

1.20%

With $100 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

Alliant’s savings account combines a solid rate with low fees and high-quality digital tools.

Read Full Review

Barclays Online Savings Account

Barclays Online Savings Account

APY

1.15%

With $0 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

You can open this account with any amount and you won't be charged monthly maintenance fees.

Read Full Review

Ally Bank Online Savings Account

Ally Bank Online Savings Account

APY

1.25%

With $0 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

The online bank delivers a savings account with a competitive rate and no monthly fee or minimum deposit requirements. You earn 1.25% regardless of the balance. Although there isn’t a way to add cash, you can deposit checks via its easy-to-use mobile app or transfer money between accounts online for free. Customer support is available by email, Twitter, live chat and 24/7 over the phone (with the estimated wait time listed on the site).

Read Full Review
Nationwide My Savings

at Nationwide,

Deposits are FDIC Insured

Nationwide My Savings

Nationwide My Savings

APY

1.51%

With $0 minimum balance

Bonus

N/A

at Nationwide,

Deposits are FDIC Insured


Bonus

N/A

Why we like it

Nationwide may be known for its insurance products, but it also has a savings account, My Savings, that earns an attractive 1.51% APY. You need $100 to open an account, but there are no monthly fees or ongoing minimum balance requirements. The account features a mobile app and free mobile check deposit. Customer service is available by phone on weekdays, and via chat. Nationwide’s online savings accounts are serviced by Axos Bank.

Read Full Review
Varo Savings Account

at Varo,

Deposits are FDIC Insured

Varo Savings Account

Varo Savings Account

APY

1.41%

With $0 minimum balance

Bonus

N/A

at Varo,

Deposits are FDIC Insured


Bonus

N/A

Why we like it

You can earn a 1.41% APY with no minimum required. There is also no monthly fee. The APY grows to 2.80% for balances up to $10,000 if you are able to meet certain requirements.

Read Full Review

What do the best savings accounts have in common?

The best savings account interest rates are over 1.00%. But that could change as banks continue to lower their rates in response to the Fed's emergency rate cuts. At a brick-and-mortar bank, you'll often find savings rates closer to the national average, which is currently 0.06%.

If you have a $5,000 savings balance, choosing an account that pays 1.00% will earn you more than $50 in a year, while an account paying you the average would earn less than $5. The difference increases the more you deposit and the longer you keep it in the account.

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 more than 1.00%.) 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.

What monthly fees do savings accounts usually have?

The best savings accounts typically don’t charge monthly fees. You make your deposit and watch your balance grow as your money earns interest.

» 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 a savings account?

Yes. Unlike investment accounts, savings accounts are guaranteed not to lose money — provided your money is insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration. 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).

Do the best savings account interest rates change over time?

Yes, rates are variable and can change over time.

How often do interest rates change?

Banks and credit unions generally don’t change savings rates on an hourly, daily or even monthly basis. In fact, under normal circumstances, it’s common to see APYs remain the same for several months.

It’s important to note, however, that rates are variable and theoretically can change at any time. In addition, many banks will change their rates based on what their competitors are doing. You will often see groups of banks increase or decrease their APYs at around the same time, especially if the Federal Reserve recently hiked or cut rates, as with the emergency rate cuts of March 2020 in response to the coronavirus pandemic.

To get the best yield for your money, it’s a good idea to check out the best savings rates on a regular basis — at least once a month.

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.

How can I earn high interest rates besides a savings account?

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 typically 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.

More top choices for the best savings accounts

When you're shopping for the account that fits you best, these options are worth a look.

  • Citizens Access, 1.30% savings APY with $5,000 minimum to open account (read full review).
  • Discover, 1.15% savings APY with no minimum to open account (see full review).
  • Capital One 360, 1.15% savings APY with no minimum to open account (read full review).
  • Vio Bank, 1.35% savings APY with $100 minimum to open account (read full review).
  • Synchrony, 1.30% savings APY, with no minimum to open account (read full review).
  • CIBC U.S., 1.35% savings APY, with $1,000 minimum to open account (read full review).
  • UFB Direct, 1.51% savings APY with no minimum to open account (read full review).
  • HSBC, 1.30% savings APY with $1 minimum to open account (read full review).

» Interested in getting money from banks? See NerdWallet's best bank account promotions and bonuses

Last updated on June 1, 2020

Methodology

We took a close look at over 70 financial institutions, including the largest U.S. banks based on assets, internet search traffic and other factors; the nation’s largest credit unions, based on assets and membership; 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 are: Alaska USA Federal Credit Union, Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Associated Bank, Axos Bank, Bank5 Connect, Bank7, Bank of America, Bank of the West, Barclays, BB&T, BBVA, BMO Harris, Boeing Employees Credit Union, Capital One 360, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens Access, Citizens Bank, Comerica Bank, Commerce Bank, Connexus Credit Union, Consumers Credit Union, Discover Bank, E*TRADE Bank, Fifth Third Bank, First National Bank, First Tech Federal Credit Union, FNBO Direct, GoBank, Golden 1 Credit Union, Goldman Sachs Bank USA, HSBC Bank, Huntington Bank, KeyBank, M&T Bank, Nationwide Bank, Navy Federal Credit Union, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Radius Bank, Redneck Bank, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, Simple, State Employees' Credit Union of North Carolina, State Farm Bank, Suncoast Credit Union, SunTrust Bank, Synchrony Bank, TCF Bank, TD Bank, TIAA Bank, U.S. Bank, UFB Direct, Union Bank, USAA, Varo, Vio Bank, Wells Fargo, Woodforest National Bank and Zions Bank.

How we rate banks and credit unions

Frequently asked questions