Where consumers almost always turned to their neighborhood bank for a new savings account just a decade ago, the entire banking landscape has changed. The same big banks offer their customers checking and savings accounts — including supposed “high-yield” savings accounts — but the big players like Chase and Bank of America now have increased competition from online banks and even robo-advisors.
If you’re in the market for a new savings account, you should strive to compare options from your regular bank as well as online providers who might offer a greater financial return on your savings. After all, the point of a savings account is helping you stash away money for emergencies or a goal, and with the benefit of earning interest on your deposits. It makes sense that you would want a new savings account that offers a generous interest rate with minimal fees that’s also easy to use.
To help you in your search, we compared all of the top savings accounts from major banks and credit unions, online banks, and even robo-advisors. While the CIT Bank Savings Builder account came out ahead in our ranking due to its high potential APR, nonexistent fees, and low barrier to entry, there are plenty of other accounts to compare. With that in mind, let’s dive in.
The Most Important Factors for Choosing a Savings Account
When it comes to any financial product, competition is always a net positive for consumers. The fact that more online savings accounts are available today than ever puts increasing pressure on larger banks and credit unions, who in turn have to improve their offerings to remain competitive. Here are the most important factors you should consider before opening a new account:
- Annual Percentage Yield, or APY: This factor determines how much interest you’ll earn on your deposits. Ideally, you’ll wind up with a savings account that has the highest APY you can find.
- Minimum Account Requirements: Also note that some savings accounts require a minimum amount to get started, or to secure their highest APY. Make sure you understand minimum account requirements that can help you avoid fees and receive the highest rate of return.
- Banking Fees: Also watch out for fees like account maintenance fees, account opening fees, and transaction fees.
The Best Savings Accounts for 2021
The best savings accounts for 2021 vary widely depending on the type of provider you choose to move forward with. We compared the top options in this space so we could highlight the best savings accounts within every niche.
| Company | Account | Type of Bank | |
 | Online Bank | Get Started | |
 | Online Bank | Get Started | |
 | Betterment Savings | Online Brokerage | Get Started |
 | UFB Direct | Online Bank | Get Started |
 | Big National Bank & Credit Union | Get Started | |
 | Big National Bank & Credit Union | Get Started | |
 | Online Brokerage | Get Started |
Best Savings Account Reviews
The banks we’ve included in this guide offer higher APYs, low fees, and plenty of perks, but that doesn’t mean each one will suit your needs. The following banking reviews can help you gauge how each savings account works, fees you might have to pay, and any highlights you should be aware of.
CIT Bank Savings Builder
The CIT Bank Savings Builder Account comes with a low barrier to entry, although you’ll earn a significantly higher return on your savings if you can meet some basic requirements. Their highest interest tier (currently 1.75% APY) goes to individuals who can maintain a $25,000 balance or contribute at least $100 per month to their account. While the minimum balance requirement of $25,000 is pretty steep, the fact you can earn the highest APY with just a $100 deposit each month is pretty sweet. Not only will you secure a higher APY with regular deposits, but this feature actually encourages you to save more money over time.
This savings account also comes with no ongoing fees or hidden fees, and you can set it up online with ease.
Open a CIT Bank Savings Builder Account
Pros:
- Earn 1.75% with a $25,000 balance or $100 per month in deposits
- No account maintenance fees or hidden fees
Cons:
- You only get six transactions per statement cycle without any added charges
- If you don’t meet requirements for the highest tier of APY, you’ll only achieve an 1.15% APY on your savings
Discover Online Savings
While Discover is well known for their popular rewards credit cards, this bank also offers affordable personal loans and competitive banking products. Their online savings account currently comes with an APY of 1.60% and with no minimum deposit requirement and no monthly fees.
You can open an online savings account with Discover without having to visit a physical bank branch, and your Discover account may come with broad ATM access depending on where you live.
Open a Discover Online Savings Account
Pros:
- No minimum balance requirement to earn their highest APY of 1.60%
- No ongoing fees or monthly fees
Cons:
- Lower APY that some competing online banks
Betterment Savings
Betterment’s savings account, which is known as the Betterment Cash Reserve, lets you earn a variable rate of up to 0.30% APY on amounts you deposit. This account lets you execute unlimited transfers into or out of your account, and there are no monthly maintenance fees regardless of your balance.
You can set this account up online with ease, and your balance is eligible for FDIC insurance up to $1 million dollars. Also note that you don’t have to use the Betterment platform for investing to be a savings account customer.
Open a Betterment Savings Account
Pros:
- Earn 0.30% APY with no minimum balance requirement
- No monthly fees
Cons:
- You do need a minimum balance of $10 to open an account
UFB Direct
UFB Direct is another online bank that offers a high APY with no hidden fees. The current top tier of interest (currently 1.80% APY) goes to anyone who maintains an average balance in their account of $10,000 or more, and there is no minimum deposit requirement to get started.
This account also comes with a free debit card, and you won’t pay any maintenance fees or service fees. Free transfers within UFB Direct accounts are also available, and you can access your online account from anywhere in the world.
Open a UFB Direct Savings Account
Pros:
- Earn a competitive APY with just $10,000 in your account
- No maintenance fees or service fees
Cons:
- Accounts with less than $10,000 on deposit don’t earn any interest
- UFB Direct doesn’t have any branches or affiliated ATMs
Citi Accelerate Savings
If you are hoping to open a savings account with a bank that may have physical branches in your area, Citibank is worth considering. This bank has branches throughout the country, but you’ll also be able to access over 60,000 ATMs through their network.
In terms of their online savings account, their highest tier of savings currently earns 1.70% APY. A monthly service fee of $4.50 may apply, but you can have this fee waived if you maintain a balance of at least $500 in your account. If you also have a Citi checking account, you can have the service fee waived if you maintain an average balance of at least $1,500 across all your Citi accounts.
Pros:
- No minimum opening deposit requirement
- Broad ATM access
Cons:
- Minimum balance requirement to avoid monthly fees
Alliant Credit Union
Alliant Credit Union is a nationally available credit union that makes it easy to become a member. Their online savings account is also competitive, featuring an APY of 1.60% and no monthly fee if you agree to electronic statements.
This account also comes with a minimum deposit requirement of just $5, and you can access your money via thousands of ATMs in their network. This account also comes with no maximum balance amount, and you can open it online.
Pros:
- Open an account with just $5
- Earn 1.60% APY with no monthly fees if you agree to electronic statements
Cons:
- Monthly fee required for paper statements
SoFi Money
SoFi Money is an all-in-one virtual money account that lets you score some pretty awesome perks without any ongoing fees. This account lets you earn 1.10% APY with no monthly account fees or maintenance fees, and you will even get all your ATM fees reimbursed worldwide — a huge benefit if you travel often and want a free way to access some cash.
The SoFi Money account also comes with a free ATM card and a mobile app that makes it easy to keep track of your account balance and transactions no matter where you are. If you’re in the market for a loan, you should also check out SoFi’s student loans, personal loans, and other financial products.
Pros:
- Get ATM fees reimbursed worldwide
- No monthly account minimums and no fees required
Cons:
- APY isn’t as high as you can get with other online savings accounts
How We Found the Best Savings Accounts
The best savings accounts offer perks and benefits you may not find with your regular bank. Here are the main factors we considered as we compared online banks, big national banks and credit unions, and savings accounts from brokerage firms and robo-advisors:
High APY
First and foremost, we looked for savings accounts that offer a competitive APY. Since not everyone wants to keep tens of thousands of dollars in a savings account, we also looked for accounts that don’t require a high balance to earn their highest interest rate.
Easy Minimum Balance Requirements
We gave precedence to accounts that don’t require a steep minimum balance requirement to open an account. All the savings accounts we profiled in our ranking come with a minimum balance of $100 or less to get started. Several of the accounts we included don’t require any money to get started.
Low Fees or No Fees
We also looked for accounts with no monthly maintenance fees or hidden fees. While we did include a few accounts that come with a monthly maintenance fee, we made sure monthly fees could be avoided with a minimum amount on deposit each month or an agreement to receive electronic statements.
Account Access
Finally, we checked for accounts that offer easy access to your funds, either through online account transfers or a nationwide network of ATMs. While not all of the accounts we profiled connect with a network of ATMS, they all let you transfer money easily between accounts online or using a mobile app.
What You Need to Know About the Entire Landscape of Savings Accounts in 2021
The most important thing to understand about savings accounts in 2021 is that, by and large, your local neighborhood bank can’t compete with major online players. According to the Federal Reserve Bank of St. Louis, the national average savings account rate for accounts with less than $100,000 on deposit was just .09% in January of 2020. That’s a small fraction of what some of the best savings accounts pay, which means you could be leaving money on the table if you don’t move your savings over to a more competitive bank.
How much could you lose? Let’s imagine for a moment you keep $50,000 in emergency savings year-round just in case you lose your job, face a major loss in income, or face some unexpected bills. If you earned just .09% on your account balance and left it alone, you would have $50,452.01 in your account after ten years. By moving your savings over to an account that earns 1.70%, on the other hand, you would have $59.258.11 in your account after ten years.
In addition to higher interest rates that let you secure a considerably more generous return on your savings, the best savings accounts of 2021 also come with no monthly fees or fees you can easily avoid. With that in mind, you should strive to compare at least 2-3 new savings accounts to the savings account you’re currently using. When you do, you will likely find a new account would help you earn more interest with lower fees and better perks.
The bottom line: Spend some time comparing the best savings accounts on our list in terms of how much interest you could earn, the ATM networks you may be able to access, and other perks you might score along the way. If you avoid this task and stick with your brick and mortar savings account for a few more years or even a decade, you could live to regret it.
Summary: Best Savings Accounts of 2021
| Account | Type of Bank | |
| Online Bank | Get Started | |
| Online Bank | Get Started | |
| Online Bank | Get Started | |
| Big National Bank & Credit Union | Get Started | |
| Big National Bank & Credit Union | Get Started | |
| Online Brokerage | Get Started | |
| Online Brokerage | Get Started |
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