Best of - Virginia
10 Best Savings Rates of August 2020
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List of the best savings rates available from a large pool of banks.
The best savings interest rates can mean the difference between your savings account earning $100 or only $10 in a year. The highest interest rates are significantly better than the national average of 0.06%, so you can grow your money faster without much effort on your part.
With a rate of 1% APY, a balance of $10,000 would earn about $100 after one year. An average account would earn under $10.
Although the Federal Reserve's recent emergency rate cuts have affected savings APYs, these institutions still offer some of the highest interest rates on savings accounts.
The best savings interest rates can mean the difference between your savings account earning $100 or only $10 in a year. The highest interest rates are significantly better than the national average of 0.06%, so you can grow your money faster without much effort on your part.
With a rate of 1% APY, a balance of $10,000 would earn about $100 after one year. An average account would earn under $10.
Although the Federal Reserve's recent emergency rate cuts have affected savings APYs, these institutions still offer some of the highest interest rates on savings accounts.
Summary of Best Savings Rates of August 2020
| Bank | NerdWallet Rating | APY | Learn More |
|---|---|---|---|
0.80% With $0 minimum balance | at Marcus by Goldman Sachs, Member FDIC | ||
0.50% With $1 minimum balance | Read review | ||
0.75% With $100 minimum balance | Read review | ||
0.75% With $100 minimum balance | Read review | ||
0.80% With $10000 minimum balance | Read review | ||
0.90% With $0 minimum balance | Read review | ||
1.00% With $0 minimum balance | Read review | ||
0.90% With $1 minimum balance | Read review | ||
0.80% With $0 minimum balance | Read review | ||
0.90% With $0 minimum balance | at Nationwide, Deposits are FDIC Insured |
at Marcus by Goldman Sachs,
Member FDIC
Marcus by Goldman Sachs Online Savings Account
APY
With $0 minimum balance
Bonus
at Marcus by Goldman Sachs,
Member FDIC
HSBC Direct Savings
APY
With $1 minimum balance
Bonus
Alliant Credit Union High-Rate Savings
APY
With $100 minimum balance
Bonus
CIT Bank Savings Builder
APY
With $100 minimum balance
Bonus
PurePoint® Financial Online Savings
APY
With $10000 minimum balance
Bonus
Sallie Mae Bank High-Yield Savings Account
APY
With $0 minimum balance
Bonus
American Express National Bank Personal Savings
APY
With $0 minimum balance
Bonus
FNBO Direct Online Savings Account
APY
With $1 minimum balance
Bonus
Barclays Online Savings Account
APY
With $0 minimum balance
Bonus
at Nationwide,
Deposits are FDIC Insured
Nationwide My Savings
APY
With $0 minimum balance
Bonus
at Nationwide,
Deposits are FDIC Insured
Benefits of the best savings rates
The best savings rates are much higher than the national average rate, which is just 0.06% APY.
Money in a high interest rate savings account grows faster over time. A deposit of $10,000 would earn about $10 after a year in an account with a 0.10% APY. But that same deposit would earn about $100 in an account with a 1% APY.
Here's how to choose the highest interest rates
Look for accounts that have the best savings interest rates for your account balance. Some accounts require deposit minimums to get the best yields. Others might charge monthly fees if the balance falls below a certain amount. If possible, choose an account that minimizes charges. Bank fees cancel out the benefits of high interest rates.
Where can I earn the most interest on my money?
Generally, online banks tend to offer higher interest rates than traditional brick-and-mortar banks for the reasons mentioned above. Rates can change at any time, however, and some banks have been lowering their APYs to reflect market conditions. Check the list of best savings rates on a regular basis to find out which savings accounts are currently earning the best interest rates.
Why banks pay interest on savings accounts
You earn interest from a savings account because your bank is paying you to lend it money. Your funds are used in the bank’s loans to other customers. Credit unions have a similar process, but they call interest “dividends.” Online banks typically offer the highest savings rates. These banks don’t maintain branch networks so they can pass those cost savings on to their customers in the form of higher APYs and lower fees.
More strong savings rates
Here are additional options that feature good savings account interest rates:
Comenity Direct, 1.00% savings APY.
CIBC U.S., 1.05% savings APY (read full review).
Ally, 1.00% savings APY (read full review).
Vio Bank, 1.01% savings APY (read full review).
Popular Direct, 0.75% savings APY (read full review).
Discover Bank, 0.80% savings APY (read full review).
Synchrony, 0.75% savings APY (read full review).
Varo, 1.21% savings APY (read full review).
Citizens Access, 0.80% savings APY (read full review).
Bank7, 0.95% savings APY.
Capital One 360, 0.80% savings APY (read full review).
Live Oak Bank, 1.00% savings APY.
Chime, 1.00% savings APY (read full review).
Pentagon Federal Credit Union, 1.00% savings APY (read full review).
Salem Five Direct, 1.00% savings APY.
Axos Bank, 0.90% savings APY (read full review).
Bank5, 0.95% savings APY (read full review).
Last updated on August 1, 2020
Methodology
This roundup includes the financial institutions with the highest regular savings account APYs (those that are most accessible to a majority of consumers) out of the following pool: Alaska USA Federal Credit Union, Alliant Credit Union, Ally Bank, America First Credit Union, American Express, Aspiration, Associated Bank, Axos Bank, Bank5 Connect, Bank7, Bank of America, Bank of the West, Barclays, BB&T, BBVA, Boeing Employees Credit Union, BMO Harris, Capital One 360, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT, Citibank, Citizens Access, Citizens Bank, Comerica Bank, Commerce Bank, Connexus Credit Union, Consumers Credit Union, Discover Bank, E*TRADE Bank, Fidelity, Fifth Third Bank, First National Bank, First Tech Federal Credit Union, GoBank, Golden 1 Credit Union, GS Bank, HSBC Bank USA, Huntington Bank, KeyBank, M&T Bank, Nationwide, Navy Federal Credit Union, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Radius Bank, Redneck Bank, Regions Bank, Sallie Mae Bank, Salem Five Direct, 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, Union Bank, UFB Direct, USAA, U.S. Bank, Varo, Vio Bank, Wells Fargo and Zions Bank.
To recap our selections...
NerdWallet's Best Savings Rates of August 2020
- HSBC Direct Savings: 0.50% APY
- Alliant Credit Union High-Rate Savings: 0.75% APY
- CIT Bank Savings Builder: 0.75% APY
- PurePoint® Financial Online Savings: 0.80% APY
- Sallie Mae Bank High-Yield Savings Account: 0.90% APY
- FNBO Direct Online Savings Account: 0.90% APY
- Barclays Online Savings Account: 0.80% APY
- Nationwide My Savings: 0.90% APY
Frequently asked questions
A savings account is a bank account that typically earns interest. The money in a savings account is federally insured. Certain types of transactions in savings accounts are often limited to a maximum of six per month.
No, rates are variable. That means that they can change over time. The accounts featured in this article have the highest savings rates in our survey this month.
Institutions usually don’t change savings rates on an hourly, daily or even weekly basis. In fact, it’s common to see rates at some banks remain unchanged for months.
It’s important to note, however, that rates are variable and theoretically can be changed at any time. 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. Many banks will change their rates based on what their competitors are doing. This happened in March 2020, when many online banks lowered their savings rates in reaction to the Federal Reserve's rate cuts.
To get the best yield for your money, it’s a good idea to check out the best rates on a regular basis. See this month's best rates.
You can generally access your funds by initiating an electronic transfer from the bank’s secure website or mobile app, day or night. You could transfer the money to your checking account or to another financial institution. This is often the easiest way to access money at an online bank. Other options include withdrawing cash from ATMs and setting up a transfer by phone.
Banks typically limit the number of certain types of withdrawals to a maximum of six per month. These transactions, called convenience withdrawals, include online transfers, overdraft protection transfers and transfers initiated by telephone. If you have more than six withdrawals in a statement cycle, your bank may charge an excess withdrawal fee each time. Getting cash from an ATM does not count toward this limit.
On April 24, 2020, the Federal Reserve gave banks the option to eliminate this cap. To find out if your bank or credit union has eased restrictions, call its customer service line. To learn more, read our primer on Regulation D.
If you want the ability to withdraw your money on short notice, use the flexibility of a savings account. You can earn interest and have fast access to your funds. If you won't need to take out money for a set time period, generally a few months or years, then you could earn higher rates by putting your money in a CD. To compare yields, take a look at NerdWallet's best CD rates this month.
