In the era of digitalization, online saving accounts have rapidly grown in popularity due to their convenience and competitive interest rates. They are a great way to save and grow your money with ease, often offering advantages over traditional brick-and-mortar banking. With a multitude of options available, let’s delve into the best online saving accounts available in 2023.
Online Saving Accounts
Understanding Online Savings Accounts
Before we start listing the best accounts, it is essential to understand what online saving accounts are and what advantages they offer. Online saving accounts are much like traditional savings accounts, but they are predominantly operated via the internet through mobile or web apps. They tend to offer higher interest rates, no minimum deposit requirements, and fewer fees, given that they save on costs associated with physical branches.
1. Ally Bank Online Savings Account
Ally Bank is consistently considered one of the best online banks. Its online savings account features an impressive annual percentage yield (APY) that’s significantly higher than the national average. It also offers no monthly maintenance fees, no minimum balance requirement, and round-the-clock customer support. Moreover, Ally Bank’s easy-to-use website and highly-rated mobile app make banking straightforward, whether you’re transferring funds, depositing checks, or monitoring your savings progress.
2. American Express National Bank High Yield Savings Account
American Express is typically associated with credit cards, but the company has earned a spot among the top online savings options due to its competitive interest rates. The American Express National Bank High Yield Savings Account doesn’t require a minimum balance, and there are no monthly fees. The bank also makes transfers easy and offers excellent phone support. However, it’s worth noting that there’s no ATM access or mobile check deposit available.
3. Synchrony Bank High Yield Savings
With a high APY and no minimum balance requirement, Synchrony Bank’s High Yield Savings Account is a popular choice for savers. It doesn’t charge monthly service fees and provides an ATM card for easy cash access— a feature not commonly offered by online savings accounts. The bank also participates in the Plus and Accel networks, meaning you can use thousands of ATMs nationwide.
4. Capital One 360 Performance Savings Account
The Capital One 360 Performance Savings Account is another solid option. It offers a competitive APY and doesn’t require a minimum balance or charge monthly fees. Capital One also offers a comprehensive set of digital tools for account management and automatic savings plans to help you reach your financial goals. Plus, the bank has a network of branches and ATMs, making it a suitable choice if you want a mix of online and in-person banking.
5. Marcus by Goldman Sachs Online Savings Account
Marcus is Goldman Sachs’ online banking branch and offers one of the highest APYs in the online savings space. It doesn’t charge monthly fees or require a minimum balance, and it’s earned high marks for its U.S.-based customer service. The savings account is a simple, no-fuss option with easy transfers, but it doesn’t provide a debit or ATM card, meaning you can’t withdraw cash directly from your account.
6. Discover Online Savings Account
Discover, known primarily for its credit cards, offers a robust online savings account. It boasts a competitive APY and imposes no monthly maintenance fees or minimum balance requirements. The bank also offers 24/7 U.S.-based customer service, and its user-friendly mobile app makes it easy to deposit checks and manage your account.
7. Varo Savings Account
Varo Bank is a mobile-centric online banking platform that offers an online savings account with a tiered interest rate. Regularly depositing money and keeping savings in your account can unlock a higher APY. Varo has no minimum balance requirements or monthly fees, and it also offers features like automatic savings tools and early paycheck access. However, as a mobile-only bank, Varo might not be the best choice if you prefer banking on a computer.
Choosing the Best Online Savings Account
While the seven online savings accounts above are among the best, the right one for you depends on your needs and habits. Here are some factors to consider when choosing:
- Interest Rates: A higher APY means your money grows faster. Look for an account with a competitive rate.
- Fees: Many online savings accounts have no monthly fees, but some might have other fees, such as for outgoing transfers.
- Minimum Balance Requirement: Some banks require a minimum balance to earn the advertised APY or to avoid fees.
- Access to Funds: Consider how you can access your savings. If you want to withdraw cash directly, look for a bank that offers an ATM card.
- Customer Service: Good customer service can be invaluable. Look for banks with strong reputations in this area.
- Ease of Use: A user-friendly app or website makes banking easier. Check reviews to get a sense of the user experience.
Online saving accounts have revolutionized the way we save money, offering competitive interest rates and conveniences that traditional banks often can’t match. It’s always a good idea to compare different options and choose the one that best aligns with your financial goals and lifestyle. Remember, the best savings account is the one that helps you effectively and efficiently save and manage your money. Happy saving!