One of the easiest and best things you can do to save more money is to find online savings account with a high-yield savings rate. This is because online banks don’t have the same overhead as brick and mortars, and that means they can pass those savings along to their customers in the form of higher than average rates.
Think about it like this, if your current savings account is at the national average of 0.06% or less, then you are missing out on an opportunity to grow your savings.
My best online savings accounts list focuses on banks with high-yield rates, low or no fees, superior technical support, ATM access, no minimum balance requirements, and stellar customer service.
8 Best Online Savings Accounts for 2023
1. Varo
Why we picked it:
Varo Bank is offering one of the best online savings accounts right now because of its higher than average APY — up to 3.00%. All accounts earn at least 0.50% APY right now, which is still significantly higher than the national average of 0.06%.
There are also $0 monthly fees or minimum balance requirements with a Varo Savings Account. Varo also offers savings tools through the bank’s app, including Save Your Change (a round-up program) and Save Your Pay (an option to automatically move a percentage of your paychecks to savings each pay period).
Additionally, Varo has strong customer service ratings, and you can speak to someone directly over the phone or via email.
The potential downside is that Varo requires a Varo checking account to open a savings account with a higher APY.
Here are the requirements to earn 3.00% APY with a Varo Savings Account:
- Set up direct deposits of at least $1,000 within each qualifying period
- Maintain a daily savings balance of $5,000 or less for the entire calendar month
- Maintain balances above or equal to $0.00 in both savings and bank accounts for the whole calendar month
2. Marcus
Why we picked it:
The Marcus High Yield Online Savings Account has been one of the best online savings accounts for a couple of years now. There are no minimum deposits required to open an account, no monthly fees, and it allows for same-day transfers of up to $100,000 to and from other banks.
You can access your account through Marcus’s easy-to-use mobile app, the bank’s website, and by phone. It’s worth mentioning Marcus does not have any checking account options available, but they have high-yield CDs and no-penalty CDs.
3. Synchrony
Why we picked it:
Synchrony Bank has a straightforward high-yield savings account offering 0.50% APY right now. All balances earn at that rate, and there’s no minimum deposit requirement.
This is a solid pick if you want ATM access to your savings. Synchrony doesn’t charge any fees for using your ATM card, and they’ll reimburse you up to $5 per statement cycle for fees charged by other institutions.
4. Citi
Why we picked it:
The Citi Accelerate Savings Account comes from Citi Bank, a financial industry leader. Citi has over 65,000 ATMs nationwide for easy and free access to your savings account.
Citi’s high-interest rate online savings account comes with a 0.50% APY on all balances. These accounts are part of three different account packages — Citi Elevate, Basic Banking, and The Citibank Account Package.
There is a $4.50 monthly fee on the Citi Accelerate Savings Account, but the fee is waived if you have an average monthly balance of at least $500.
Citi’s Basic Banking package may be a good choice if you’re over 62, because they’ll waive the $4.50 monthly fee if the primary account holder is 62 or older. This package also offers unlimited check writing.
5. Chime
APY: 0.50%
Minimum deposit requirement: $0
Find out more about Chime | BankingChime is a financial technology company, not a bank. Banking services provided by The Bancorp Bank or Stride Bank, N.A.; Members FDIC.
Why we picked it:
Chime | Banking might not have the name recognition as some of the other best online savings accounts on this list, but it’s still a great choice. You’ll earn a 0.50% APY on your Chime High Yield Savings Account as long as you have a balance of at least $0.01 in your account.
Chime doesn’t have caps on how much you can earn the high APY, and there are $0 monthly service fees.
You may also benefit from automatic savings features like Round-Ups and automatic savings deposits when you get paid.
Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.
6. Ally
Why we picked it:
The Ally Bank Online Savings Account comes with great customer service that’s available 24/7 by phone, email, and chat.
The competitive 0.50% APY you’ll earn with Ally Banks’s online savings account includes $0 monthly maintenance fees or minimum balance requirements. You can take advantage of savings tools, like a bucket-based savings feature to save for up to 10 goals in a single account.
7. Discover
Why we picked it:
The Discover Online Savings account is a great pick because it offers 0.40% APY and $0 monthly fees, $0 insufficient fund fees, and $0 minimum deposit requirement.
Discover is known for its customer service, and you can reach someone by phone 24 hours a day, 7 days a week. They also have a highly rated mobile app that’s user-friendly for quick online banking access.
8. American Express
Why we picked it:
The American Express High Yield Savings account is a pick for best online savings accounts because you can save with an APY of 0.40% and have no monthly fees or minimum balance requirements. American Express is known for stellar customer service, which you can access 24/7.
You get up to 9 transfers/withdrawals per month, and you’ll need at least $1 in your account to earn the 0.40% APY.
How to choose the best online savings account for you
The bank accounts above definitely have some key similarities; higher-than-average APYs is the biggest. But there are some features you should pay attention to when shopping around:
Fees
Fees, even small fees, add up over time. There’s really no reason these days to pay monthly maintenance fees, and most of these banks don’t charge them. Where you want to watch out for fees like excess transaction fees, fees for dropping below a certain balance threshold, ATM fees, etc. High fees will eat into the money you earn at a high APY.
Customer service
This one is huge when you’re talking about online banks that typically don’t have physical branch access. Being able to call into a customer service line and speak directly with a banker or support agent is a huge asset, and they can help you work out any issues that might arise.
Minimums
High account minimums have virtually become a thing of the past, but some banks still have them. Minimums aren’t necessarily bad, unless you can’t maintain the balance. The balance minimums need to work with your financial lifestyle.
Account access
Many of the best online savings accounts are from online banks that do not have physical branches. You’re relying on ATMs — that might be out-of-network — and apps. Look for banks that offer free ATM access or at least reimburse you for charged ATM fees.
Online experience
You should pay attention to banks that are known for a positive digital experience. That means apps and websites that are intuitive and customer-focused. Also think about how you’ll use your account. For example, for frequent check deposits, having mobile deposit available will be a must.
Bonus features
Some savings accounts come with features that make setting and reaching your savings goals easier. Not everyone is looking for those kinds of tools, but they can add to the experience and help you get the most out of your account.
The final word on the best online savings accounts of 2023
Even though rates have dropped in the past few years, online savings accounts have gotten more popular than ever. Online banks can offer these higher-than-average rates because they don’t have the same overhead as your local bank or credit union, which is great for consumers.
Pay attention to the fees, account accessibility, customer services, and bonus features. Also, make sure you understand that the APYs are variable — they can change at any time.
If you’re interested in other ways to grow your savings, be sure to check out my list of best investment apps of 2021.
FAQs
Yes, as long as you pick a bank that’s FDIC-insured. That provides up to $250,000 in insurance per depositor. In addition, setting up multi-factor authentication on your account and regularly changing your passwords can add an extra layer of protection.
High-interest rate savings accounts are accounts that offer customers a higher-than-average APY. The national average is around 0.04% to 0.06%, so 8x to 10x less than a high-interest rate account provides.
A high-interest savings account is a great place to start. You can also consider a money market account, CD, or invest in stocks. Savings accounts are a great option if you want more accessible access to your funds, and there are typically zero penalties for withdrawing money.
Online savings accounts are worth it if you want to earn at a higher-than-average APY. Online banks can offer such great rates because they don’t have the same overhead as traditional brick-and-mortar banks.
About Millennial Money Man
Bobby Hoyt is a former band director who paid off $40,000 of student loan debt in 18 months on his teaching salary and then left his job to run Millennial Money Man full-time. He helps other Millennials earn more through side hustles, save more through budgeting tools and apps, and pay off debt. He is a personal finance expert who has been seen on Forbes, Reuters, MarketWatch, CNBC, International Business Times, Business Insider, US News, Yahoo Finance, and many other personal finance and entrepreneurship media outlets.
