financemaster.org f0bb6c27108ced360fd7aee89173fee1 - Top Five Savings Accounts of 2024: Free & Outstanding!
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A savings account is a great place to keep the money you don’t plan to use immediately to pay bills or cover expenses. Fee-free savings accounts that pay a higher than average APY can help you maximize your savings. These accounts don’t charge monthly service fees or have minimum balance requirements that chip away at your balance.

When choosing a no-fee savings account, it’s helpful to consider more than the annual percentage yield. Look for an account that fits your lifestyle and savings goals. Here are some of the top fee-free savings accounts to consider.

Best No-Fee Savings Accounts of 2024

Here are the top picks and who they’re best for.

  • Ally Bank Online Savings: Best for multiple savings goals
  • MySavingsDirect MySavings Account: Best for savings rates
  • Synchrony Bank High Yield Savings: Best for ATM access
  • Discover® Bank Online Savings: Best for customer service
  • Capital One 360 Performance Savings: Best for mobile app

Who Has a No Fee Savings Account?

Online banks tend to offer more fee-free savings accounts than brick-and-mortar chains, and all of the accounts on this list come from online banks.

If you prefer having access to a physical branch, you may find it easier to visit a local bank or credit union. Small banks are more likely to offer a no-fee savings account compared to large national banks.

Ally Bank

  • APY:

Ally offers one savings account, simply called the Online Savings Account. Like other accounts on this list, there is no monthly maintenance fee or minimum balance requirement, and the APY is much higher than the national average.

This account also comes with Ally’s savings bucket feature that lets you divide your savings into digital envelopes designated for a specific savings goal. You can even set target dates and track your savings progress — all right in the app.

MySavingsDirect

  • APY:

MySavingsDirect’s MySavings Account pays the top rate in the United States and even surpasses some CD rates. Unlike some banks that reserve their top rates for accounts with the highest balances, My Savings Direct pays this rate on all balances.

You can open and manage your account online and link it to any checking account to transfer money.

Synchrony Bank

  • APY:

Synchrony Bank may be better known for its line of consumer credit cards, but the bank also offers a fee-free high-yield savings account that pays an impressive APY.

This is one of the few fee-free savings accounts you’ll find that comes with its own ATM card to use for withdrawing cash or making point-of-sale purchases. Other banks may require you to transfer money to a linked checking account before you withdraw the cash.

Discover® Bank

  • APY:

Discover Bank’s Online Savings Account is completely fee free. New customers can open an account through the bank’s website, and current customers can complete the application directly in the mobile app. There is no minimum balance requirement to open an account.

Best of all, Discover offers top-notch customer service over the phone with representatives available 24/7 to assist customers who have questions about the application process, using the mobile app or their account.

Capital One 360

  • APY:

Capital One 360 has a single savings account called 360 Performance Savings. Although Capital One 360 is primarily an online bank, it does have some physical branches and Capital One Cafés across the country. If you’re near one, you can visit to speak with a representative in person.

You also can take care of your banking needs in Capital One’s top-rated mobile app, including checking balances, transferring money and tracking spending on all your Capital One accounts. The app makes it easy to open multiple savings accounts for specific savings goals and monitor their balances.

Is It Free To Open a Savings Account?

Often enough, you’ll find that many banks require at least a minimum deposit when you open an account.

For example, CIT Bank has a $100 minimum opening deposit but U.S. Bank only requires a $25 minimum opening deposit with its Standard Savings account. Thankfully, with a free savings account, you won’t have to deposit some money initially, but it might not be a bad idea to put some cash in your account right away so you can start earning interest.

Features To Consider When Choosing a Savings Account

With so many savings account options available, you can find an account that best meets your needs. When evaluating accounts, consider these features.

Access

Find out how you will deposit and withdraw money from your savings account. Most banks let you transfer money between linked accounts, which is convenient if you receive direct deposits and electronic transactions.

If you plan to deposit checks directly into the savings account, make sure the bank offers mobile check or ATM deposits.

Annual Percentage Yield

Choose an account with a high APY to maximize your savings and earn more interest. If you deposit $1,000 in a savings account that pays 0.01% APY, you earn $0.10 in one year. That same amount deposited in a savings account with an APY of 3.30% could earn $33 in one year.

When reviewing the APY, note whether the top rate applies to all balances or a balance tier.

Banking Preferences

Online banks tend to pay higher APYs than brick-and-mortar institutions, but a lower APY can be worth it if you prefer visiting a local branch.

Alternatively, you may prefer to keep your savings in an online bank that’s not easy to access so you’ll be less tempted to take money out of the account for impulse purchases.

Fees

Some banks charge monthly or quarterly maintenance fees for savings accounts unless you meet minimum balance requirements. Other fees to watch out for include dormant account fees and excessive withdrawal fees that can chip away at your balance.

Best of Savings Accounts

  • Best Savings Accounts
  • Best High-Yield Savings Accounts
  • Best Savings Account Interest Rates
  • Best Interest Rates

FAQ

  • Which bank has the best savings account?
    • If earning the most interest matters to you, look for an account with the highest APY. If you’re saving for specific goals, like a vacation or down payment, consider an account with a digital envelope system or a bank that lets you open multiple accounts.
    • Ultimately, the best savings account is the one that best helps you meet your financial goals.
  • Where can I earn 5% on my savings?
    • CIBC, FNBO Direct, Bask Bank, Varo and Mango are some of the banks that offer an APY of at least 5.00%.
  • Which bank offers 7% interest on savings accounts?
    • No bank in the U.S. pays 7% APY on savings accounts. The average savings account interest rate is 0.33%. Although you can find many options with higher than average APYs, you won’t find any savings accounts offering 7.00% or more.

Melanie Grafil contributed to the reporting for this article.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Jan. 16, 2024.

FinanceMaster.org is a personal finance and consumer interest rate website and an online marketing company serving top-tier banks, credit unions and other financial services organizations. Some companies mentioned in this article might be clients of FinanceMaster.org, which serves more than 100 national, local and online financial institutions. Rankings and roundups are completely objective, and no institution, client or otherwise, paid for inclusion or specific placement. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by the companies included in the article. All fees and rates are subject to change at the issuers’ discretion. Some interest rates might be short-term or promotional offers only, and it is possible additional terms and conditions must be met to obtain the interest rates listed. Rates and availability might vary by region. Verify terms and conditions before opening an account.

FinanceMaster.org bases its assessment of “best” and “top” products on the above-stated parameters to create a baseline for comparison. This assessment is an approximation of “best” and “top” designed to help consumers find products that might be appropriate for them. There could be other options available as well. Consumers should consider various options appropriate for their circumstances.

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