Best Savings Accounts of February 2025 (original) (raw)

For our full list of the best savings accounts, we at the MarketWatch Guides team researched 128 savings accounts and surveyed 1,000 account holders about how they bank. We then narrowed down our list to nine picks, five of which we opened accounts with to help you get a first-hand perspective on the application process and beyond.

Key Takeaways

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Featured Savings Accounts

FEATURED

Lending Club

4.3

APY 3.50%

Bonus N/A

Min. Deposit Amount $0

Earn up to 4.75% APY with $250+ deposits per month

SoFi Checking + Savings

4.8

APY 3.80%

Bonus Up to $300

Min. Deposit Amount $0

SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either 50(withatleast50 (with at least 50(withatleast1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR 300(withatleast300 (with at least 300(withatleast5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.

UFB Portfolio Savings

4.6

APY 4.01%

Bonus N/A

Min. Deposit Amount $0

Unlock up to 4.21% APY, Combine Freedom Checking with Portfolio Savings to boost your savings APY by up to 0.20%

Discover

4.6

APY 3.75%

Bonus N/A

Min. Deposit Amount $0

Best Savings Accounts for February 2025

The MarketWatch Guides team reviewed more than 100 banks and credit unions to determine our picks for the best savings accounts. Our selection process considered factors such as interest rates, fees and ATM access. To gain insights on the customer experience, we opened our own accounts with more than a dozen banks and credit unions and surveyed 1,000 account holders about the ways they bank. We’ve included some of our findings from this research below.

Because we consider multiple account features for the savings category, our selections for the best accounts don’t necessarily have the highest interest rates (see our list of the best high-yield savings accounts). Learn more about our scoring methodology.

All financial institutions on our list of the best savings accounts have insurance of at least $250,000 per depositor, ownership category and financial institution through the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA).

After researching 128 banks and credit unions we at the MarketWatch Guides team rated these 9 as our picks for the best savings accounts:

*APYs (Annual Percentage Yields) accurate as of November 21, 2024

Summary: The Best Savings Accounts

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*Rates accurate as of November 21, 2024

What to Know About Savings Accounts

A savings account is a financial tool that allows you to securely store and grow your money while maintaining access to it. Unlike other accounts, such as certificates of deposit (CDs), which lock your money away for a set period of time, you can access your savings at any time without penalty.

Savings Account Terms

Understand these common savings account terms so you know how your account works.

The annual percentage yield (APY) is the rate your balance will earn in one year when compound interest is included. Many banks compound interest daily, so the APY is often slightly higher than the interest rate. Use our savings calculator to see how much you can earn with different APYs.

This is earned interest that is applied to your savings account that continues to earn interest as long as you keep the funds in your account.

The FDIC is a federal agency that protects consumers’ deposits if a bank that it insures fails. The limit on the amount of money that’s covered depends on the type of bank account. For example, if you’re the sole owner of a checking and savings account at an FDIC-insured bank, at least $250,000 of your total balance in those two accounts is covered.

Many credit unions are similarly insured by the NCUA, which is another federal agency.

This is the smallest amount of money a financial institution allows you to keep in an account. If you have less than this amount you may be charged a monthly fee or have your account closed. You might also miss out on certain perks (such as a higher APY) while your account is below the minimum balance.

Minimum balances can range from about $5 to a few hundred. However, many savings accounts don’t have minimum balances at all.

Who Should Get a Savings Account?

It’s safe to say that everyone should have some type of savings account set up, whether for retirement, emergencies or planned events. However, there are a few demographics that might especially benefit from a savings account.

Young Adults and College Students

Savings accounts are ideal for young adults and college students just starting their financial journeys. This will help them cultivate healthy financial habits early and build a solid foundation for stability and independence.

Freelancers and Gig Workers

Freelancing and gig work has become a popular way to earn money, but the income stream is often unpredictable. By starting a savings account, you can ensure that you have enough funds to cover basic expenses during slower times.

Families and Parents

Families and parents need savings in place to safeguard against unexpected expenses and to plan for future milestones. It’s a good idea to start setting aside money early for education, healthcare and emergencies.

Retirees and Seniors

Even if you have a retirement plan, extra savings accounts are never a bad idea. As a senior citizen, you may encounter health-related expenses or other emergencies before your retirement accounts mature or you may need more than you planned for in your later years.

What Makes a Good Savings Account?

A good savings account should maximize your earnings and align with your goals. For example, a savings account with an autosave or roundup feature like SoFi offers can help you save a little extra without having to plan. And you’ll want to compare rates among accounts since a higher APY can give you more bang for your buck. As you’ll notice from our top-picks list, there are plenty of savings accounts that earn up to 5% or more.

Online Savings Accounts

Many of the best savings accounts are offered by online banks. Since they don’t have the overhead costs of brick-and-mortar banks, they’re able to offer higher APYs to their customers.

However, working with online banks may come with some drawbacks. For one thing, since they don’t have physical branches, customer service options are limited. Some customers prefer the experience of in-person service, especially when there are problems with their accounts. But with online banking, you’ll be dealing strictly with agents via chat, email or phone.

How to Choose the Best Savings Account for You

Savings accounts are great tools for people wanting to grow their money safely while still having access to it. But there are some things you need to be aware of before putting your money into one. Primarily, you should understand the fees, terms and rates when comparing savings account options.

Rates

Choosing an account with a higher APY can significantly boost your savings over time. While some savings accounts still earn up to 5% APY or higher, our December 2023 MarketWatch Guides consumer banking survey shows that 62% of Americans earn less than 3% interest on their savings or money market accounts.

Fees

Be mindful of fees associated with your savings account. These can include a monthly service fee, overdraft fees, ATM fees or fees for falling below a minimum balance.

Terms

Each bank has its own terms and conditions regarding its accounts. These terms can also vary for each account type.

“Shop around. Look for an account that not only offers an attractive interest rate but also fits your lifestyle.”

Joe Camberato CEO of National Business Capital

SAVINGS INFORMATION

How much is your initial deposit?

How much is your monthly contribution?

How long will you accumulate savings?

What is the your APY? (%)

YOUR TOTAL SAVINGS $17,623

Initial Deposit $10,000

Total Contributions $6,000

Interest Earned $1,623

How to Use Your Savings Account

Everyone’s savings goals are different, so your strategy could be unlike someone else’s. However, there are a few things we recommend for all savers.

#1 Prepare for the Unexpected

We asked a few experts to weigh in on this topic, and the general consensus is that everyone should set aside enough money to cover at least six months’ worth of living expenses.

“Once you have this, you are protected for half a year if you lose your income for any unforeseen reason,” said Christopher M. Naghibi, Esq., executive vice president and chief operating officer at First Foundation Bank. “You literally can't buy that kind of peace of mind.”

#2 Separate Your Savings

To avoid dipping into your savings for nonessential expenses, consider opening multiple accounts for different goals. You might open one account dedicated to emergencies, one for your upcoming wedding and one for vacations. You can open accounts at various banks to take advantage of their sign-on promotions or account perks.

Alternatively, you can use a savings account that allows you to separate your money into different “buckets.” SoFi has something similar called “vaults,” which let you earmark your money for various goals.

#3 Diversify Your Funds

In general, savings accounts are great for shorter-term goals such as weddings, vacations or emergencies. This allows you to keep your money liquid while still earning interest. However, for long-term goals, you should consider all of your options based on rates and other incentives. For example, the average money market account interest rate is well above the national average savings rate, but money market accounts still offer liquidity.

“More often than not, the strategy will be focused on high-yield savings and/or money markets to ensure daily liquidity,”

Daniel Milan, managing partner at Cornerstone Financial Services

Alternatives to Savings Accounts

While savings accounts are a safe and convenient way to store your money, there are a few alternative options that might give you a higher yield or other features that align with your goals.

High-Yield Savings Accounts Money Market Accounts CDs Checking Accounts
Accessibility May offer ATM access or only electronic transfers May offer check-writing capabilities and ATM access Generally don’t allow access to funds until the term ends Unlimited transactions, providing easy access to funds
APY Variable rates that are usually higher than checking rates Competitive, variable rates similar to high-yield savings accounts Can offer competitive (often fixed) rates that tend to be higher than savings and money market rates Typically don't earn interest
Insurance coverage Usually have FDIC or NCUA coverage up to 250,000perdepositor,ownershipcategoryandbank∣UsuallyhaveFDICorNCUAcoverageupto250,000 per depositor, ownership category and bank Usually have FDIC or NCUA coverage up to 250,000perdepositor,ownershipcategoryandbank∣UsuallyhaveFDICorNCUAcoverageupto250,000 per depositor, ownership category and bank Usually have FDIC or NCUA coverage up to 250,000perdepositor,ownershipcategoryandbank∣UsuallyhaveFDICorNCUAcoverageupto250,000 per depositor, ownership category and bank Usually have FDIC or NCUA coverage up to 250,000perdepositor,ownershipcategoryandbank∣UsuallyhaveFDICorNCUAcoverageupto250,000 per depositor, ownership category and bank
Minimum requirements May require minimum balances or opening deposits Often require substantial balances or initial deposits May require high initial deposits May require minimum balances or opening deposits
Risk Generally low risk, but returns may vary Generally low risk, but returns may vary Low risk, with returns that are usually guaranteed upon maturity Minimal risk, but they don’t tend to earn interest
Withdrawal restrictions May have monthly withdrawal limits May have monthly withdrawal limits Typically charge a penalty for withdrawing funds before the term ends Generally allow unlimited transactions

FAQ: Best Savings Accounts

The bank with the highest interest rate on a savings account may vary depending on the day. Some online banks and credit unions are offering over 5% APY for savings accounts.

Most banks and credit unions offer a maximum APY of 5% to 5.5% for savings accounts.

To get 5% APY on a savings account, you’ll generally need to choose an online bank or credit union.

Yes. Putting money in a savings account is typically safe since most are insured by either the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA). These provide coverage of up to $250,000 per depository account.

The number of savings accounts you should have depends on your personal financial goals and preferences. Some people prefer to have multiple savings accounts to separate their funds for various purposes. For example, you might have an emergency fund, vacation savings and general fund.

Interest rates on savings accounts can vary depending on economic conditions, bank policies and changes in the market. Most commonly, a bank’s rates will fluctuate with the Federal Reserve rate, which can happen several times throughout the year.

Yes. Interest earned from savings accounts is generally considered taxable income. Retirement accounts, such as IRAs or 401(k)s are typically the only exceptions to this.

Customer Review Methodology

To provide in-depth perspective on how reviewers feel overall about banks that offer savings accounts, the MarketWatch Guides team compiled 14,984 reviews from publicly available user-review sites such as Trustpilot, the Better Business Bureau, Consumer Affairs, WalletHub and Best Company.We then categorized each review and analyzed the sentiment to determine whether it was positive or negative. With this data, we highlighted the most praised features and most common complaints for each bank.

Methodology

Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.

Our list of the best savings accounts consists of banks and credit unions that have wide availability and received high scores in the savings category of our banking reviews. While APY makes up the highest share of each financial institution’s score in this category, some accounts with midrange APYs made the list because of factors that make them accessible to more consumers. These include having ATM access and minimal or no fees and deposit requirements.

Savings and money market accounts

The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.

High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.

Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.

Banking experience and access

Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.

35% Savings and money market accounts

30% Checking accounts

20% Certificates of deposit

15% Banking experience and access

Savings and money market accounts

The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.

Checking accounts

High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.

Certificates of deposit

Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.

Banking experience and access

Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.

*Data accurate at time of publication. Rates accurate as of November 21, 2024. Rates, promotions and available accounts may vary by location. Citi Accelerate Savings APY is for Raleigh, N.C.

**SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

***New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either 50(withatleast50 (with at least 50(withatleast1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR 300(withatleast300 (with at least 300(withatleast5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.

Certificates of Deposit are FDIC insured and offer a fixed rate of return if held to maturity. There is no assurance that the techniques and strategies discussed are suitable for all investors or will yield positive outcomes. The purchase of certain securities may be required to affect some of the strategies. Investing involves risks including possible loss of principal.

Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.

All America Bank, Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Associated Bank, Axos Bank, Banesco Bank, Bank of America, Bank of Hope, Bank Purely, Bank5 Connect, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO, BMO Alto Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, CFG Bank, Charles Schwab, Charlie Financial, Chase Bank, Chime, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus Credit Union, Consumers Credit Union, Credit One Bank, Cross River Bank, Current, Customers Bank, Delta Community Credit Union, Discover Bank, East West Bank, Emigrant Direct, EverBank (formerly TIAA Bank), Federal Savings Bank, Fifth Third Bank, First Citizens Bank, First Internet Bank (of Indiana), First National Bank of America, First Tech Federal Credit Union, FNBO Direct, Frost Bank, Golden 1 Credit Union, Heritage Bank NA, HSBC, Huntington Bank, KeyBank, Lafayette Federal Credit Union, Lake Michigan Credit Union, LendingClub, Limelight Bank, Live Oak Bank, Lonestar Bank, M.Y. Safra Bank, M&T Bank, Marcus by Goldman Sachs, Mercury Bank, Merrick Bank, Michigan State University Federal Credit Union, Milli, Morgan Stanley Private Bank, Mountain America Credit Union, My eBanc, MySavingsDirect, National Bank of Kansas City, Navy Federal Credit Union, NBKC Bank, North American Savings Bank (NASB), Northpointe Bank, Patelco Credit Union, PenFed Credit Union (Pentagon Federal), PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, SoFi Bank, South State Bank, Spectrum Credit Union, Spring Bank, Star One Credit Union, State Bank of Texas, State Department Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Sutton Bank, Synchrony Bank, Synovus Bank, TD Bank, Texas Capital Bank, Third Federal Savings & Loan, Transportation Alliance Bank (TAB Bank), Truist Bank, U.S. Bank, UFB Direct, Umpqua Bank, Upgrade, USAA Bank, USAlliance Financial, Valley National Bank, Varo Bank, Vio Bank, VyStar Credit Union, Webbank, Webster Bank, Wells Fargo, Western State Bank, Zions Bank, Zynlo Bank

Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.