Best Savings Accounts of October 2024

 The best savings accounts have a high annual percentage yield (APY); the higher the APY, the more money you can earn over time. This list of the best savings accounts has an APY of up to 5.05%.

The accounts I have listed are those that have consistently maintained the highest interest rates over the years. The accounts listed on this page can help you build your emergency fund faster than accounts that currently average just 0.45%.

The APY rates shown are valid through October 28, 2024. All other information is valid as of October 1, 2024.

What You Need to Know About the Best Savings Accounts

What the Best Savings Accounts Have in Common

The best savings accounts have interest rates around 5%. At traditional banks, you can find savings account interest rates close to the national average, which is currently 0.45%.

If you have a $10,000 savings account balance, an account with a 5% interest rate will cost you about $500 per year, while an account with a 0.40% interest rate will cost you about $40. This difference increases the more money you deposit and the longer you deposit.

Why should I care about the interest rate on my savings account?

If you have money left in your checking account each month, you can adjust your budget to have a higher-interest savings account. (It’s always a good idea to have money set aside for emergencies, and it’s more profitable to put money in a savings account with a higher interest rate than a checking account.)

Just make sure you leave enough money in your savings account to avoid monthly fees. Most online savings accounts don’t charge monthly fees, but many traditional savings accounts do.

What are the typical monthly fees for savings accounts?

A traditional savings account doesn’t charge a monthly fee. Once you make a deposit, you earn interest and watch your balance grow.

Why Choose Online Savings Accounts Are the Best Savings Accounts?

It’s easy to find a savings account at your local bank, but if you want higher interest rates and lower fees, you should consider saving through an online account. With no overhead due to large branch networks, online banks and non-bank providers can offer more favorable returns than local banks.

How to Open a Savings Account

Accounts can usually be opened online or in-store. You’ll need your Social Security number, contact details (phone number and address) and at least one piece of ID, such as a driver’s license or passport. If you’re applying for a joint account, the other person will also need to provide this information and proof of identity.

How to Open a High Yield Savings Account Online

As with opening a savings account at a branch, you need to provide some information to open an online account. In addition to your identification information (such as your driver’s license number), you’ll need to provide your contact details and Social Security number. To make your first deposit, you may need to link a foreign bank account to transfer funds electronically.

Are savings accounts safe?

Yes, as long as they’re insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).

Learn more about FDIC and NCUA insurance for savings accounts.

Do interest rates on the best savings accounts change over time?

Yes, interest rates are variable and can change over time. If you are looking for a fixed-rate account where you can keep your money without withdrawing it for a set period of time, consider opening a certificate of deposit. List of best CD interest rates Best Options .

How often do interest rates change?

Financial institutions do not typically change savings rates hourly, daily, or monthly. In fact, under normal circumstances, the JPY rate usually remains unchanged for several months.

However, it is worth noting that rates are volatile and can theoretically change at any time. In addition, many providers change their rates based on developments in competitors. We often see several providers raise or lower their APY rates at the same time, especially if the Federal Reserve has recently raised or lowered interest rates.

To get the best return on your money, we recommend checking the best savings rates regularly, at least once a month.

Find the highest interest rates on checking, savings, and other accounts in our list of high-interest accounts.

Savings account terms you should know

Savings account: Savings account: A deposit account at a financial institution that generally earns interest.

Interest: The money that a financial institution pays into an account over time.

Compound interest: Compound interest is the interest earned on both the principal and the interest that accrues. In accounts that pay compound interest, interest is added to the original amount at the end of each compounding period (usually daily or monthly). Each time interest is calculated and added to the account, the higher the balance, the higher the interest earned.

Annual Percentage Yield (APY): The annual percentage yield (APY) is the amount of interest an account earns in a year. The calculation is based on the account’s interest rate and the number of times interest is paid in a year.

Minimum Balance: The minimum balance is the minimum amount required in a bank account to avoid fees or meet account requirements. The minimum balance can be an average balance or a fixed amount required daily or monthly.

Average Monthly Balance: The average monthly balance is calculated by adding the account balances at the end of each day of the month and dividing by the number of days in the month.

Minimum Opening Deposit: The amount of money required to open a bank account.

How can I get a higher interest rate outside of a savings account?

Here are some options:

Money market accounts: These are a type of savings account, but they have higher minimum balances and offer benefits like checking withdrawals, which are unusual for a savings account.

Certificates of deposit: These accounts lock in your balance for a set period of time (usually one to five years) in exchange for a higher interest rate. However, if you withdraw the money during that period, you usually have to pay a penalty; CDs are also FDIC-insured.

Is interest on savings accounts taxable?

Yes, interest on savings accounts is generally taxable. You earn taxable interest if you earn more than $10 a year. Note that higher-yield savings accounts are likely to earn more interest.

Explain the difference between “FDIC Member” and “FDIC-Insured Funds” for savings accounts. What’s the difference?

When describing savings accounts offered by banks, we refer to them as “FDIC Member” because the bank is a member of the Federal Deposit Insurance Corporation, and the accounts are insured by the federal government. When a financial technology company, rather than a bank, offers savings accounts, it typically partners with an FDIC-member bank to take charge of the funds and ensure they are covered by deposit insurance. In such cases, the term “FDIC-Insured Funds” is used. Credit union savings accounts are described as “NCUA-Insured Funds” because they are federally insured by the National Credit Union Administration.

Editors' Choice List of Best Savings Accounts

Here are our picks for the best savings accounts.

Barclays, 4.50% APY for savings, no account minimum (read full review), member FDIC.

Basque Bank, 4.85% APY for savings, no account minimum (read full review), member FDIC.

BMO Alto, 4.60% APY for savings, no account minimum (read full review), member FDIC.

Bread Savings™, 4.75% APY for savings with a $100 minimum (read full review), member FDIC.*

CIT Bank, 4.70% APY for savings with a $100 minimum (read full review), member FDIC.

Citizens, 4.15% APY for savings with $0.01 minimum to open (read full review), Member FDIC.

E*TRADE, 4.25% APY for savings with no minimum to open (read full review), Member FDIC.

EverBank (formerly TIAA Bank), 5.05% APY for savings deposits with no minimum to open (read full review), Member FDIC.

Ivy Bank, 5.00% APY for savings deposits with $2,500 minimum to open (read full review), Member FDIC.

Genius Bank, Genius Bank, 4.80% APY for savings deposits with no minimum to open (read full review), Funds are FDIC guaranteed.

Laurel Road, 4.50% APY for savings, no minimum to open.

LendingClub, 4.30% APY for savings, No minimum to open account (read full review), Member FDIC.

Marcus, 4.10% APY (Annual Percentage Yield) as of 10/10/2024, No minimum to open account (read full review), Member FDIC.