Best Banks for Savings Accounts of February 2024 (2024)

• Our Top Picks
• Bask Bank
• SmartyPig
• Live Oak Bank
• Ally Bank
• Discover® Bank
• Alliant Credit Union
• See More (3)

• FAQs

• Key Terms to Know

Bask Bank offers a high-yield savings account that lets customers earn 5.10% APY. In addition to its generous APY, the Bask Interest Savings Account has other customer-friendly features, including no minimum balance requirements, earning caps, or monthly maintenance fees.

Bask also offers another savings product, its Mileage Savings Account, which lets customers earn two American Airlines AAdvantage miles for each dollar saved annually. Bask Bank is the online arm of Texas Capital Bank.

SmartyPig has just one product: an online savings account offered through Sallie Mae Bank. The innovative account lets you create and track savings goals and requires no minimum deposit or ongoing balance. Competitive interest rates help you grow your money even more quickly. Interest is compounded daily and credited monthly.

Live Oak Bank pays your business 4.15% APY in an easy-to-understand online bank account. There are no monthly fees, and there’s no minimum balance requirement to open an account or keep an ongoing relationship with Live Oak Bank. You cannot deposit cash, but you can fund your account with electronic transfers, paper checks, and deposits with your mobile device. Live Oak Bank, founded in 2008, also offers personal savings accounts, CDs, and other banking services.

There’s nothing worse than dealing with bank errors or struggling to get access to cash when you need it. Ally Bank ranked in the top three of the J.D. Power 2023 Direct Banking Satisfaction Study, and the bank has competitive rates, as well. Ally Bank pays 4.35% APY, with no minimum balance requirement and no monthly fees.

Customer service at Ally is available by phone 24/7, and the bank displays an estimated wait time online so you know what to expect. You also can use Ally for online checking, CDs, and more.

Discover® Bank offers a wide variety of accounts, including an Online Savings Account that pays 4.30% APY. There’s no minimum deposit required, and you pay no monthly fees with that account. In fact, the only fee you should pay is an outgoing wire fee, if you choose to wire money. Official checks, returned deposits, and excess withdrawals are all fee-free, too.

While you can potentially earn more elsewhere, higher rates really only matter when you have a substantial account balance. If you don’t keep a large amount in your savings account, you might prefer having access to a robust set of features.

Alliant Credit Union caters to young people of all ages, and those aged 13 years or older can use a standard Alliant savings account. Rates are good at 3.10% APY. These accounts require $5 to get started (though Alliant will pay it for kids 12 and younger), $100 to earn the stated APY, and there are no monthly fees.

Alliant also has a teen checking account, which earns 0.25% APY—pretty good when you consider that most banks don't offer interest checking. The account has no minimum balance or monthly service fee, and the credit union reimburses up to $20 of out-of-network ATM fees per month. To be eligible for these accounts, you may need to join Foster Care to Success, and Alliant pays the membership fee for you. Parents who are joint account holders of minor accounts also must be Alliant members.

Online bank accounts can be as safe as brick-and-mortar accounts. That’s true for deposit insurance and other forms of security. The most popular banks (including those listed here) benefit from FDIC insurance (for banks) or NCUSIF coverage (for credit unions) up to $250,000 per depositor, per account. When banking online, you might face unique risks associated with cybersecurity—but your brick-and-mortar accounts are probably online as well.

Here’s how to reduce risk:

• Keep your browser and mobile apps up-to-date.
• Use caution when clicking on links—or avoid clicking any links in email altogether.
• Use a strong, unique password, and store your passwords securely.
• Never respond to email, phone, or text message requests for your personal information or password.
• Use two-factor authentication to make it harder for thieves to log into your accounts.

If you notice any signs of fraud, contact your bank immediately. You may be protected from fraud and errors in your account, but you need to act quickly for the highest levels of protection. Banks also monitor your accounts and employ sophisticated analytics to help detect fraud, regardless of whether you bank online or in a branch.

• The interest rate: A competitive rate is helpful, and if you're intent on getting the best interest rate, check out our list of the best savings account rates. But for many people, rate is not necessarily the most important thing. The interest you earn becomes increasingly important as your account balance grows. But if you keep a relatively small amount in savings, it’s potentially more important to select accounts that do not charge fees and make it easy to add to your savings.
• No monthly fees: This is crucial, especially as you’re getting started. Monthly fees can wipe out any interest you earn and even cause your account balance to fall each month.
• Deposit insurance: Verify that your funds are protected from bank failures. FDIC insurance and NCUSIF coverage are equally safe, so don’t be afraid to work with a federally insured credit union.
• Electronic transfers: The best accounts make it easy to move money in and out of savings. Setting up direct deposit from your employer helps to automate your savings and avoid temptation. Quick, free transfers by automated clearinghouse (ACH) help you keep your money in savings and earn interest for as long as possible before you need to take withdrawals.
• Mobile deposit: If you receive paper checks, be sure your bank allows you to deposit checks with your mobile device. Doing so saves you time, as you can avoid trips to a branch and time preparing a deposit by mail. Plus, you can speed up deposits and start earning interest as soon as possible.

Money market accounts and CDs are similar to savings accounts, but there are some important differences.

Whilemoney market accountspayinterest like savings accounts, they typically offer check-writing and debit card options. You can see what these kinds of accounts have to offer in our round-up of thebest money market accounts and rates.

CDs offer higher rates than savings accounts, but require you to keep your savings in the bank for months or years. Time commitments vary, but you might have to pay a penalty if you take out your money early.

Article Sources

1. Bask Bank. "High Interest Account."

2. Live Oak Bank. "Business Savings Accounts From Live Oak Bank | Member FDIC."

3. Live Oak Bank. "Financing for Educational Services Businesses Nationwide."

4. J.D. Power. "Higher Interest Rates, Ease of Moving Money Drive Higher Customer Satisfaction with Online-Only Banks, J.D. Power Finds."

5. Ally. "Online Savings Account - Ally."

6. Discover Bank. "Online Savings Account - Discover."

7. Alliant Credit Union. "High Interest Rate Online Savings Account - Alliant Credit Union."

8. Alliant. "Kids Saving Accounts."

9. Alliant Credit Union. "Teen Checking Account | Debit Card for Teenagers."

10. Alliant. "Does Alliant Rebate Fees if I Use an Out-of-Network ATM?"

11. Federal Deposit Insurance Commission. "Deposit Insurance - FDIC."

12. National Credit Union Administration. "How Your Accounts Are Federally Insured."