Shopping for the best savings account available is a crucial first step whether you’re opening a new savings account or making sure your current savings are in an account with a high annual percentage yield.
What to Look for in a Savings Account
The ideal savings account doesn’t necessarily have to be one with a bunch of fancy features. It should, however, make your money work for you without costing you much. The best savings accounts offer features such as:
Few or no monthly fees
- Generous deposit and withdrawal limits
- Low minimum deposit and balance requirements
- High interest rates
- Guaranteed FDIC insurance
Finding a savings account with the right blend of these qualities can be a challenge, especially because there is such a broad range of account types, tiered APYs and other factors to consider. From 0.01 percent APY to over 1 percent APY, and from no minimum deposit to $100 minimum deposit requirements, features of the savings account you choose can have a significant – or lackluster – effect on the growth of your money.
The Best 2017 Savings Accounts
GOBankingRates’ annual Best Banks study identified the 10 best savings accounts of 2016 to help you find the right account for your needs. To create the list, GOBankingRates assessed the top basic savings accounts from 90 national brick-and-mortar banks and 30 online-only banks. The study considered criteria such as fees, rates, deposit rules and minimum balances. Here are the best savings accounts in the U.S.
The best savings account of 2016 is the online MySavings Account from MySavingsDirect. The online account offers the highest APY on the list – 1.10 percent – and comes with no monthly fees, no minimum deposit and no minimum balance requirement. Account holders have the added benefit of linking the savings account to their current checking account without having to switch banks.
Ally Bank’s Online Savings Account offers a high 1 percent APY that compounds interest daily. No monthly maintenance fee and no minimum balance fee mean you can save even more money. The bank’s mobile deposit feature makes depositing money to the account easy. Go Save More!
Perhaps better known for its credit cards, American Express offers a High Yield Savings Account with a competitive interest rate of 0.90 percent. It has a $0 minimum balance, no opening deposit requirement and no monthly fee attached to it. Go there and Save More
Bank5 Connect’s 0.90 percent APY is attractive; however, it has a $10 minimum deposit required to open the account. The account can be linked to a checking account to cover overdrafts; however, account holders are limited to six transfers or withdrawals per month or else they’re subject to a $10 fee per transaction. Save More
Barclays’ Online Savings Account is another 1 percent APY option for the depositor interested in high yields with few penalties or restrictions. In addition to no monthly fees or minimum balance requirement, the account offers features such as direct deposit capability, online access and online transfers. Click here to Save More.
Though its 0.75 percent APY isn’t quite as robust as some accounts on this list, Capital One’s 360 Savings lives up to its name as an all-around deposit product for people looking to save money with no minimum balance requirements. Capital One offers an automatic savings plan program online so that you can set up and track multiple savings accounts for specific savings goals.
CIT Bank’s High Yield Savings Account currently offers a 1 percent APY with no monthly fee; however, it does require a minimum deposit of $100. With zero fees, CIT Bank’s account starts compounding interest on that opening deposit daily, potentially helping you build your savings faster. Save More.
The Online Savings Account interest rate at FNBO Direct climbed from 0.75 percent APY in October 2015 to 0.95 percent APY in January 2016. You can open the account with just $1 and won’t be saddled with any monthly maintenance or minimum balance fees. Like other best banks for savings accounts on this list, FNBO offers a smartphone app that allows person-to-person transfers. Save More.
