9 Best Savings Accounts of 2023

*Rates and APYs are subject to change. All information provided here is accurate as of August 25, 2023.

The best savings accounts of 2023 offer high annual percentage yields (APYs), have low minimum balance requirements and charge little to no fees. These are important features to look for in a savings account because it means your money will grow helping you reach your savings goals all the faster.

Read on to learn more about Money’s picks for best savings accounts in 2023.

Our top picks for the 8 best savings accounts of 2023

• Bread - Best no-frills savings account
• Barclays - Runner-up for best no-frills savings account
• Ally - Best digital savings tools
• PenFed - Best credit union savings account
• Synchrony Bank - Best for ATM withdrawals
• CIT Bank - Best for account variety
• Discover Bank - Best for no fees
• Capital One - Best savings account for kids and teens
• Raisin - Best savings account marketplace

Best savings account reviews

Why we chose it: Bread Savings is our best for no-frills savings accounts because it has no hidden fees and offers free monthly maintenance.

Bread Financial offers a high-yield savings account with one of the highest APYs on our list. The account has no monthly maintenance fees, which can help you save even more, and the added convenience of unlimited transfers and mobile check deposits.

Bread’s other savings products — certificates of deposit — also have some of the highest APYs among the companies on our list. These CDs come in five different term lengths ranging from one year to five allowing investors to choose the term that best aligns with their savings goals.

Bread’s high APYs come with a tradeoff: there’s no checking account available. This means that you must transfer the funds to another bank to withdraw the cash. Additionally, its mobile app is somewhat barebones, only offering basic account-management tools, such as the ability to check your balances and make transfers.

Why we chose it: Barclays is the runner-up for best no-frills savings account given it provides many essential features and its current APY provides favorable options for customers.

Barclays offers a no-frills online savings account with a competitive APY. Its CD offering is similarly attractive, with six terms including an 18-month term that some banks don’t offer. On the other hand, it doesn’t offer any additional savings products such as IRAs or money market accounts.

Barclays Savings has many mortar bank locations and its own dedicated mobile app from which you can track your balances, make mobile deposits and transfer funds to a different bank account.

Why we chose it: Ally Bank is our best savings account for digital savings tools thanks to its innovative “buckets” and “boosters” features integrated into its mobile app.

Ally Bank’s online savings products feature competitive APYs, but what really sets it apart are its smart saving tools called “buckets” and “boosters” that help you organize and analyze your money.

Saving buckets work as digital envelopes that you can use to divide your savings into different categories without the need for multiple bank accounts — you can create up to 10 savings buckets within one account.

Boosters are optional automated savings tools that help grow your savings in different ways. There are three different boosters:

• Recurring transfers - You can set up recurring transfers from your checking account on a schedule that makes sense for you.

• Round-ups - Ally will automatically round up eligible transactions to the nearest dollar up to $5. Once $5 or more has been rounded up, Ally automatically transfers the amount to your savings account.

• Surprise savings - Each month, Ally analyzes your checking account for amounts that are considered "safe to save" and automatically transfers them to your savings account.

Ally online bank also offers IRA accounts with rates that match its more traditional savings products. However, the APYs on its other accounts (savings, money market, CDs) are slightly lower than other comparable banks.

Why we chose it: PenFed is the best credit union savings account because of its competitive APYs and a wide variety of savings products.

PenFed Credit Union is open to residents of all 50 U.S. states, the District of Columbia, Guam, Puerto Rico and Okinawa, Japan. PenFed stands out for offering a wide range of savings products and having some of the most competitive APYs among credit unions.

PenFed’s premium online savings account has one of the lowest APYs of our top picks, but its money market certificates (the credit union equivalent of a certificate of deposit) offer competitive APYs, especially for its five-year term.

Other savings products include a regular savings account, IRAs and money market accounts. Though the regular savings account has a low APY, it does allow you to withdraw your money at an ATM — unlike the online savings account.

The best part about membership with PenFed are the associated discounts on several services, such as car and home insurance and car rentals.

Why we chose it: Synchrony Bank is the best savings account for ATM withdrawals considering it's the only one on our list that allows you to withdraw funds at an ATM.

Synchrony Bank offers several online savings products, including a high-yield savings account, money market account, certificates of deposit and IRAs. Its savings account stands out for its associated ATM card, which allows you to withdraw funds at any ATM.

The high yield savings account APY is among the highest on our list, and offers a significantly higher APY for its one-year CD than many competitors. Its money market accounts don't offer outstanding APYs, but do offer the benefit of easy access to funds.

There is a limit of $1,000 in ATM withdrawals per day and $500 in point-of-sale (POS) transactions. You also only get up to $5 in ATM fees refunded per month unless you achieve diamond status with Synchrony’s rewards program.

Why we chose it: CIT Bank is the best savings account for account variety because it combines high APYs and several different savings products — from savings accounts to certificates of deposit.

CIT Bank stands out for its wide variety of savings products, mainly its four different kinds of certificates of deposit. It also offers custodial accounts to build savings for minors.

The four kinds of CDs are term, no-penalty, jumbo (with zero account opening or maintenance fees) and RampUp CDs. This last one in particular allows customers to adjust their rate during the term of the CD if the rates go up.

CIT’s online savings account, “Savings Connect,” features an APY among the highest on our list. CIT also offers a Platinum Savings account with no account opening or maintenance fees. Its money market account offers a fairly competitive APY rate, if not the highest.

Lastly, its CD rates are also some of the best though the highest rate only applies to the 18-month CD and requires a minimum $1,000 deposit.

Why we chose it: Discover is the best savings account for no fees because it doesn’t charge any maintenance fees, transaction fees or even official check fees.

Discover offers online savings products that feature almost no fees across the board, even administrative ones that other accounts usually include (such as official check fees and insufficient fund fees). In fact, the only fee Discover charges is a $30 fee for outgoing wire transfers.

Beyond its notable lack of fees, Discover’s online savings account offers a competitive APY. Similarly, money market accounts feature high APYs especially for account balances over $100,000, with the added perk of being able to access your money with an ATM, checks or debit.

Discover also offers certificates of deposit with terms up to 10 years in length andIRA CDs that help customers grow their retirement savings while taking advantage of tax benefits..

Last but not least, Discover offers 24/7 phone customer service, which is uncommon.

Why we chose it: Capital One made our list because it offers a Kid’s Savings Account that doesn’t require a minimum balance and has no monthly fees.

Capital One’s Kids Savings Account has no monthly or maintenance fees and there’s no minimum deposit required to open. You don’t need a minimum balance to keep and use the account or accrue interest, either. Parents with kids 8 years and older can open a Teen Checking Account, and it comes with a debit card, granting them more autonomy over their finances.

Not only is it possible to link these accounts to yours, but you can also use the Capitol One mobile app to teach your child how to keep track of their money. This mobile app allows you to manage your linked accounts from your phone and even request customer support 24/7, although this feature is only for automated customer service.

Capital One does not offer other types of savings products, such as money market accounts and IRAs, but it does have the 360 Performance Savings account. This is a great option for people who currently bank with Capital One, as the account’s APY is one of the best among online savings accounts. Additionally, its 5-year CD has an APY that is similar to other high-performing CDs.

Why we chose it: Raisin ranks as our best savings account marketplace because it partners with ten different financial institutions to offer a variety of savings products such as money market accounts and certificates of deposit.

Raisin is an online marketplace that partners with ten different banks and credit unions so that customers can comparison shop for different savings products. You can shop for regular savings accounts, high-yield savings accounts, money market deposit accounts and certificates of deposit.

All accounts are federally insured with competitive interest rates, low or no fees, deposit insurance coverage and no withdrawal limits.

Other savings accounts we considered

Some savings accounts offer competitive APYs but can have a monthly service fee or high minimum balance requirement, which kept them out of our main picks. However, they might still be worth looking into for many customers.

American Express

American Express offers several savings products with competitive APYs for both its high yield savings accounts and certificates of deposits. It also offers IRAs with similar rates, depending on whether you choose the HYSA IRA or CD IRA.

American Express is one of the few banks we reviewed that offers 24/7 customer service either through its mobile app or on the phone. You should note that mobile app access to your savings account is currently only available if you also have an American Express credit card account.

Chime

Chime’s online savings account offers a number of tools to help you save consistently. For example, it will round up your leftover "change" from everyday purchases and automatically deposit them into your savings (though you do have to open a checking account with Chime to access that feature). Another plus: Chime can automatically reroute a designated percentage of your direct deposits into savings.

Although Chime offers a comparatively low APY, its basic savings tools make it a worthwhile alternative.

Citibank

Citibank offers nearly every type of savings product from online savings accounts to IRAs. Although it doesn’t offer standalone money market accounts, they are available as part of its IRA offering. Do note that Citibank’s saving APY will vary depending on your location.

While Citibank’s savings account rates are middle-of-the-road, its savings products are a good choice for current customers who don’t want to shop around for a different bank. Likewise, individuals who prefer in-person service can visit one of Citibank’s physical branches across the U.S.

It should be pointed out that Citibank’s requirements to waive its maintenance fees can be stricter than other banks. For instance, if your savings account is linked to a checking account, you must maintain a total balance of $1,500 on your combined accounts in order for the fee to be waived; if you don’t have a checking account at the national bank, the savings account must have $500 at all times.

Marcus by Goldman Sachs

Marcus by Goldman Sachs focuses on offering savings and investment products, loans and credit cards. Their savings account and their 12-month certificates of deposit offer competitive rates.

Marcus’ 10-month no-penalty CD (meaning you won’t have to pay a fee for withdrawing your funds early) stands out its APY is higher than similar products at other banks. Marcus is also notable for its 24/7 customer service both online and over the phone.

Sallie Mae Bank

Sallie Mae Bank has several savings products that fit a variety of needs, including high-yield savings accounts, money market accounts and certificates of deposit. However, it does not offer IRA products.

Its most notable product is its “SmartyPig” savings account, which has savings tracker tools to help you keep an eye on your savings goals. It also offers referral bonuses of $10 for each person you convince to sign up for the same account.

Varo Bank

Varo Bank lets you earn one of the highest APY rates in the market. However, there are some caveats — you must set up a recurring direct deposit of $1,000 or more and the APY only applies to the first $5,000 in your account. After that amount, the percentage drops.

Savings Accounts Guide

A savings account with a good rate of return is an excellent way to make your money grow — whether you’re building an emergency fund, saving for that dream vacation, or making sure you have a good financial cushion for the future. However, there are more savings products than just a traditional savings account, and these can be useful for different goals.

Read on to learn more about savings accounts and how they compare to the other types of account options.

• What is a savings account?
• How does a savings account work?
• Why have a savings account?
• How to choose a savings account
• How to open a savings account?
• What are the different types of savings accounts?
• What's the difference between a savings account, a money market account, and a certificate of deposit (CD)?
• How many savings accounts should you have?
• How much money should you have in your savings account?
• Savings Account Glossary

What is a savings account?

A savings account is a type of bank account that generates interest on the funds that you deposit. Unlike interest-bearing checking accounts, the interest rates on savings accounts are typically considerably higher — a checking account may have a 0.0003% interest rate while a basic savings account has an average rate of 0.08%.

While a basic or traditional savings account rates are relatively low overall, there are different types of savings accounts with higher interest rates for different savings goals.

What is a high-yield savings account?

A high-yield savings account is a savings account that offers higher annual percentage yields (APYs) than other types of savings accounts. While these premier savings accounts’ high APYs fluctuate depending on the interest rate set by the Federal Reserve, these interest rates are consistently the highest on the market.

The best high-yield savings accounts are a popular alternative for depositors who have big savings goals in mind. Like with a regular savings account, you can access your money at any time. But while these accounts have the best rates available, they also have guardrails (such as no ATM access, limited monthly withdrawals and withdrawal fees) that limit your access and help you save to meet financial goals.

Traditional savings account vs. high-yield savings account

Traditional savings accounts and high-yield savings accounts are very similar in their general purpose and features, but they do have some notable differences:

How does a savings account work?

Unlike a checking account, funds deposited into a savings account are not meant for everyday use. This means that access to funds you deposit in a savings account is restricted to avoid unnecessary spending.

Normally, you have a limited amount of withdrawals per month (up to six), though many banks allow you to make ATM withdrawals that don't count against this limit. However, this only applies to traditional savings accounts and other types of savings accounts (such as high-yield accounts) may be stricter in limiting access to your funds.

The money that is deposited into your savings account generates interest, which can be calculated daily, weekly or monthly. At the end of your statement cycle, the bank then deposits the accumulated interest into your savings account, helping it grow faster.

Why have a savings account?

Savings accounts are a great way of setting money aside and having it grow faster thanks to compound interest. Depending on the type of savings account, you could use it as an emergency fund or even for larger savings goals such as a down payment on a car or home loan.

Like any other financial product, traditional savings accounts come with their own benefits and limitations:

Savings account pros and cons

How to choose a savings account

Since the main purpose of a savings account is to help build your savings, the most important factor when choosing a savings account should be a high interest rate or annual percentage yield. This ensures that your savings get a small monthly boost.

But there are also other factors to consider, including:

• Minimal (or no) maintenance fees
• No additional fees (such as ATM fees, overdraft fees or ACH fees)
• No minimum balance requirements
• 24/7 customer service
• Mobile banking app availability

Choosing an account with few or no fees means that you maximize the gains you make from a high interest rate. Likewise, the lack of minimum balance requirements means that you avoid fees if you ever have to withdraw most of your savings in an emergency. All of the banks we looked at are great for accessibility and offer some of the best online savings account options.

As far as the 24/7 customer service and the mobile app are concerned, it’s always helpful to be able to contact support at any moment if you run into any technical issues while managing your account.

Lastly, mobile banking — being able to view your account balances and access other financial services on the go — is a convenience that could save you valuable time and keep you motivated to save even more.

How to open a savings account

What do you need to open a savings account?

How to open a savings account for a child

Opening a savings account for a child is as simple as opening one for an adult — in addition to the requirements listed above, the other information you'll need to provide is your child's. While the process is the same, the benefits children get from these accounts can be far more than monetary.

Many financial experts suggest that involving children in your finances can provide them with valuable lessons in how to manage their money later on. A savings account might be a great teaching tool to help your children learn great financial habits and start setting saving goals early.

How many savings accounts should you have?

The number of savings accounts you should have will depend on the funds you have available. Since these accounts are either member FDIC or NCUA, meaning they’re insured up to the first $250,000, having a single savings account is fine as long as your funds stay under that number.

However, having multiple savings accounts can be a smart move if you’re working towards different savings goals. For example, you can have a traditional savings account intended for unexpected emergencies like car or home repairs. You can also opt for a separate high-yield savings account option dedicated to saving up for a down payment on a home.

What are the different types of savings accounts?

The words “savings accounts” normally refer to what is considered a traditional savings account, with comparatively low interest rates but greater flexibility in how you can access your money.

However, most banks offer different types of savings accounts that can suit different needs.

Traditional savings account

This is the most common type of savings account which is offered by banks and credit unions. These accounts will have a higher interest rate than a checking account but are limited in the number of withdrawals you can make in a month (six is the standard). This type of account has a generally low interest rate overall — typically between 0.04% and 0.15%.

Many banks will often allow you to withdraw money from your savings account through an ATM, which doesn’t count against your six total withdrawals for the month. Unfortunately,

A traditional savings account is a good place to put away cash you may not need right away, but could be used for unexpected emergencies. They’re particularly useful if you open them at the same institution as your checking account, which makes transfers quicker and easier.

High-yield savings account

This is one of the more popular alternatives to a traditional savings account. High-yield savings accounts (HYSAs) work like a traditional savings account, but feature interest rates up to 20 times higher (sometimes even more).

Unlike traditional savings accounts, HYSAs are mostly online-only products that aren’t offered at local branches. They also offer fewer ways to access your funds, which might make it easier to build your savings. Note that the APYs on these accounts fluctuate depending on the rates set by the Federal Reserve, (also known as the Fed).

To learn more about these read our list of the best high yield savings accounts.

Money market accounts

Money market accounts (MMAs) offer interest rates almost as high as a high-yield savings account while allowing you to use debit cards and giving you check-writing capabilities.

While they offer greater flexibility in how to access your funds, MMAs have limitations and requirements that other savings accounts do not. For example, almost all MMAs have a minimum balance requirement that requires you to pay fees if it is not met.

Like other savings accounts, withdrawals are limited to six per month, not counting ATM transactions. Much like high-yield savings accounts, the interest rate on MMAs is variable and may change at any moment without notice.

Certificates of deposit (CDs)

Certificates of deposit (CDs) are a type of savings account that allows you to store your money for a fixed period of time, offering higher interest rates the longer you choose to deposit your money.

CDs can have terms as short as three months or as long as several years, though rarely more than 10 years. While you are allowed to withdraw your funds before the specified term, you’ll have to pay a predetermined penalty if you do. (Note that some banks and credit unions offer no-penalty CDs.)

Unlike other types of savings accounts, CDs have fixed interest rates. This can be helpful during periods of time when interest rates are declining, but it can also mean that you won't be able to take advantage of higher interest rates later on.

Check out our list of Best CD Rates to learn more about this product and the options available.

Specialty savings accounts

There are several other savings accounts that can be set up for specific savings goals. For example, some can be used as a savings fund for a dependent while others can be set up specifically to save for healthcare expenses.

Specialty savings account include:

• Children’s savings
• Health savings account (HSA)
• College funds (529 plans)
• Individual retirement accounts (traditional and Roth IRAs)
• Custodial accounts

Many of these accounts have tax benefits which allow you to save even more money in the long run. For example, a Roth IRA allows you to withdraw your savings tax-free, provided you meet the requirements, while an HSA lets you contribute money on a pre-tax basis for healthcare expenses.

Note that in the case of the HSA, you can only have this type of account if you have what is known as a high-deductible health plan.

What's the difference between a savings account, a money market account, and a certificate of deposit (CD)?

Although all three of these accounts are designed with savings in mind, there are some very notable differences between a savings account, a money market account and a certificate of deposit:

How to calculate interest on a savings account

When it comes to savings accounts, there are two types of interest: simple and compound. Simple interest is the amount you earn from the principal balance on your account — this is the amount you deposit. In contrast, compound interest is what you earn from your principal balance and the interest you have accumulated.

For example, if you deposit $5,000 into an account with 3% simple interest and don't touch the account for five years, in the end you will have $5,750. Those same $5,000 in an account for five years with 3% compounded interest will earn you $5,808.

This $58 dollar difference happens because, with compound interest, the bank calculates how much interest to pay you on a monthly (or daily) basis using the total account balance.

How much money should you have in your savings account?

Conventional wisdom suggests that you should keep at least three to six months’ worth of expenses put away for an emergency. However, this is not necessarily a realistic goal for everyone.

A good starting goal would be to put away a portion of your paycheck each month so you at least have enough to cover unexpected emergencies like car or home repairs.

As long as you don’t find yourself in a position where you’re forced to dip into those funds, you’ll eventually save up enough that you’ll be able to take advantage of the effects of compound interest (a.k.a. interest on your interest).

Savings Account Glossary

Savings accounts (and financial products in general) have some frequently used terms that are not always clearly explained to consumers. Here are some of the most common ones:

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How we chose the best savings account

Because savings accounts largely have the same features across the board, our methodology for selecting the best savings account was mostly based on who could offer the best terms.

These days, if a savings account can’t offer things such as zero fees (or easy options to waive them), mobile apps, and small to no minimum balance fees, they would have a hard time staying competitive. Similarly, financial institutions that are not FDIC insured — or NCUA insured — are not a good choice, since your money is not protected in cases of bankruptcy or insolvency.

We also looked at:

Rates and maintenance fees

A high interest rate on your savings account is fairly self-explanatory: you always want your money to grow at the fastest rate possible. However, it’s also important to make sure that your savings account isn’t charging you monthly maintenance fees that will cut into your interest earnings.

Minimum balance requirements

While it is not always the case, some bank accounts require either a minimum opening deposit or a minimum recurring balance so that you are not charged any additional fees. Where possible, we picked accounts that lacked these requirements to ensure you’re able to maximize your savings.

Federal backing and consumer complaints

When looking for a good savings account, it’s important to consider whether the bank is insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA). Both of these entities insure your deposits up to $250,000 per bank (or credit union) across all of your accounts.

Because federal insurance should be a given for any reputable financial institution, we also looked for consumer complaints, to make sure that the savings accounts we recommend had mostly positive reviews.

App availability and customer support

We favored savings accounts that offered a companion app that allows you to check your balances, as well as make transfers and deposits on the go. We also chose companies that offered flexible customer support hours, in the event that app support is unavailable.

Summary of Money’s Best Savings Accounts of 2023

• Bread - Best no-frills savings account
• Barclays - Runner-up for best no-frills savings account
• Ally - Best digital savings tools
• PenFed - Best credit union savings account
• Synchrony Bank - Best for ATM withdrawals
• CIT Bank - Best for account variety
• Discover Bank - Best for no fees
• Capital One - Best savings account for kids and teens
• Raisin - Best savings account marketplace