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A savings account is an essential tool that everyone should have to help manage their money. And while there’s no such thing as a “best” savings account, it is possible to find a savings account (or accounts) that has better potential to meet your needs.

Below are 11 savings accounts across three different categories to consider based on your money-related priorities. Whether you place a high value on avoiding fees, splitting your savings into separate categories, or growing your money at a faster rate, the right savings account could make it easier to accomplish those goals.

Savings Goal: Earn the Highest Interest Rate

No matter why you want to save money, it’s encouraging to see your savings balance grow. Depositing money into your bank account as often as possible (and in the highest amount you can afford) will help your savings balance grow faster. Yet there’s another way to increase your savings as well — earning interest.

Banks and credit unions often pay their customers interest on the funds they deposit in their savings accounts (and sometimes their checking accounts, too). However, some financial institutions may offer higher interest rates than others.

The average annual percentage yield (APY) for savings accounts in the United States was 0.43% as of August 21, 2023, according to the FDIC. But if your goal is to earn the highest interest rate on your savings account, you should shop around.

The best high-yield savings accounts typically feature interest rates that are well above the national average. At the time of writing, you can find APYs as much as 13 times higher than that amount.

Recommended High-Yield Savings Accounts

Bank Account APY Features Learn More
UFB Direct logo

UFB Direct Secure Savings Account

5.25% More Info

UFB Direct breaks balances into five tiers, but, currently, there is only one interest rate.

No minimum deposit
No monthly fee

SoFi Checking and Savings

0.50% - 4.60% More Info

Customers earn 4.60% APY on savings balances when they set up recurring monthly direct deposit of their paycheck or benefits provider via ACH deposit. Alternatively, deposit at least $5,000 each month to earn 4.60% APY on your savings balance. Checking balances earn 0.50% APY

No minimum deposit
No monthly fee

CIT Bank logo

CIT Bank Platinum Savings Account

5.05% More Info

Earn 5.05% APY on balances over $5,000. Balances of less than $5,000 earn 0.25% APY. Annual Percentage Yield is accurate as of July 27, 2023. Interest rates for the Platinum Savings account are variable and subject to change at any time without notice.

$100 minimum deposit
No monthly fee

CIT Bank logo

CIT Bank Savings Connect Account

4.65% More Info

Annual Percentage Yield is accurate as of July 27, 2023. Interest rates for the Savings Connect account are variable and subject to change at any time without notice.

$100 minimum deposit
No monthly fee

In addition to above-average interest rates, some banks and credit unions may offer welcome bonus opportunities to new customers. These promotions could give you the chance to grow your savings by earning additional cash or rewards in exchange for opening a new account and jumping through a few qualifying hoops.

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Savings Goal: Avoid Paying Bank Fees

If you dislike paying bank fees, you’re far from alone. Although bank fees are the norm at many financial institutions, around 30% of consumers find it unreasonable for their bank to charge fees to maintain their bank account, according to the American Bankers Association®.

On a positive note, it's possible to find banks and credit unions that offer fee-free savings account options to their customers. If finding a free savings account with no monthly maintenance fees is a priority to you, below are a few options to consider. (Note: Some of the banks below also offer limited ATM reimbursement for out-of-network ATM usage each month.)

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Top Free Savings Accounts

Savings Goal: Split Your Savings Into Separate Categories

saving for vacation goals

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There are many different reasons to save money. Of course, everyone should build an emergency fund and work to build a sufficient nest egg to cover their future retirement years. Yet it’s also common (and important) to have other savings goals.

If you’re like most people, you probably need to save money for more than one purpose at a time. For example, you might save money for a down payment on a home, a car, a wedding, a vacation, holiday purchases, and more.

When you’re stashing away money for multiple goals, it can be helpful to separate your savings into different accounts. Some consumers find that splitting their savings among multiple bank accounts with different banks reduces the temptation to overspend. But if you prefer to keep your funds under the same roof, some banks will let you deposit cash into a single account and divide the balance into different savings categories.

Top Savings Accounts With Saving Categories

Financial Institution Savings Category Feature

Ally Bank Savings Account

Create up to 10 savings buckets

Discover Online Savings Account

Unlimited online savings accounts

Capital One 360 Performance Savings

Open up to 25 individual savings accounts

Betterment Cash Reserve Account

Create “cash goals” to organize your savings

Quick Tip

In addition to using multiple savings accounts or savings categories, some banks will let you schedule automatic transfers. For example, if you know you want to deposit $500 each month into your down payment fund, you could automate that savings to stay on track.

Bottom Line

Savings accounts have the ability to help you grow your money in a nearly risk-free environment. Depending on your priorities, one (or several) of the savings account options above might be a good fit for you.

However, keep in mind that it’s always important to do your own research and compare multiple options when it comes to how you will manage your money. If earning the highest return possible on your cash is your goal, you might want to consider other options aside from savings accounts as well. Certificates of deposit, for example, may sometimes offer more attractive APYs than some high-yield savings accounts. And money market accounts can be worth looking into as well.

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Depending on your risk tolerance and the reasons why you’re saving, speaking to a trusted financial professional about whether investing some of your cash may also make sense. Savings accounts are a low-risk option where your money is concerned, and they can offer you easy access to your cash. But if you’re working toward long-term goals like retirement, there are other options you should probably think about as well.

ML

Michelle Lambright Black

Michelle Black is founder of CreditWriter.com and HerCreditMatters.com. Michelle is a leading credit card journalist with over a decade and a half of experience in the financial industry. She’s an expert on credit reporting, credit scoring, identity theft, budgeting, small business, and debt eradication. Michelle is also a certified credit expert witness and personal finance writer.