Best Savings Accounts of 2021: Our Top Picks
Here are our top choices for savings accounts this year, based on the interest rates offered, features available, and the ease of managing your funds:
- Marcus by Goldman Sachs
- Discover Bank
- Synchrony
- Ally Bank
- American Express Bank
- CIT Bank
- Capital One 360
- Barclays
Which Savings Account Is Right for Your Money?
There are many reasons you may want want to save money. Maybe you’re setting aside an emergency fund, preparing for the unexpected. Or perhaps you want to start building up for a down payment on a new car or even a home. But no matter why you want to save, it’s important to find a savings account that will maximize your efforts.
The right savings account will not only give you a safe place to keep your money, though. It will provide you with a return on those funds in the form of interest earned. And while savings account interest rates today are nowhere near where they were a couple decades ago, every penny your savings can earn is a penny that you don’t have to work to save.
These days, it’s typically online banks that offer the highest interest rates on savings. Their branchless bank model allows for them to focus their efforts on providing the best features and rates. Thanks to excellent online banking platforms and mobile apps, online banks can even be more convenient than brick-and-mortar banks for most customers.
Online banks aren’t the only options, and many banking customers absolutely need to be able to walk into a local branch when they have a concern or need to make account changes. So, we’ve also included a bank that offers an in-person banking option in the list that follows. However, it’s important to note that the interest you’ll earn at most traditional banks will be a fraction of what you could earn online — so make sure that it’s worth the trade-off!
So, here’s a look at our top picks for savings accounts this year, and why they made the list.
One of the newest online banks around, Marcus by Goldman Sachs (formerly named GS Bank) has already made a solid name for itself as a strong savings bank. They offer CDs and savings accounts, both consistently offering some of the highest interest rates on the market.
As an online bank, there are no local branches for you to visit. Accounts can easily be opened online in a matter of minutes, or you can call their savings account specialists for assistance.
Here’s a rundown of what Marcus by Goldman Sachs has to offer from their savings accounts.
- Monthly Account Fee: $0
- Minimum to Open: $0
- Minimum Balance to Maintain: You must have at least $1 in the account if you want to earn the posted APY
- Maximum Account Balance: $1,000,000 per account, $3,000,000 per accountholder
- Current Interest Rate: 0.50% APY (as of October 10, 2021)
- Ways to Deposit Funds: Transfer from existing Marcus account, transfer from external bank account, mail in a check, incoming wire transfer
- Ways to Withdraw Funds: Transfer to existing Marcus account, transfer to external bank account, request a check, outgoing wire transfer
- ATM/debit card provided? No
- Mobile App? Yes
- Mobile check deposit available? No
A subsidiary of the credit card company with the same name, Discover Bank is an online entity offering competitive savings products. With a company like Discover behind your money, you know that your savings are not only safe but that customer service is exceptional and you are always on the receiving end of the latest and greatest account features.
- Monthly Account Fee: $0
- Minimum to Open: $0
- Minimum Balance to Maintain: $0
- Current Interest Rate: 0.40% APY (as of October 8, 2021)
- Ways to Deposit Funds: Transfer from existing Discover account, transfer from external bank account, deposit a check via mobile app, mail in a check, incoming wire transfer
- Ways to Withdraw Funds: Transfer to existing Discover account, transfer to external bank account, request a check, outgoing wire transfer
- ATM/debit card provided? No
- Mobile App? Yes
- Mobile check deposit available? Yes
There is one brick-and-mortar banking branch for Discover Bank, which is located in Greenwood, Delaware.
Another online-only bank, another enviable interest rate and flexible account features. Synchrony makes saving money easy and rewarding, with one of the highest interest rates available today. Oh, and you can even access your savings via ATM withdrawal, if desired.
- Monthly Account Fee: $0
- Minimum to Open: $0
- Minimum Balance to Maintain: $0
- Current Interest Rate: 0.50% APY (as of October 8, 2021)
- Ways to Deposit Funds: Transfer from existing Synchrony account, transfer from external bank account, deposit a check via mobile app, mail in a check, incoming wire transfer
- Ways to Withdraw Funds: Transfer to existing Synchrony account, transfer to external bank account, make an ATM cash withdrawal, request a check, outgoing wire transfer
- ATM/debit card provided? Yes
- Mobile App? Yes
- Mobile check deposit available? Yes
Ally Bank has a reputation for being a stellar online bank with a range of financial products to suit every banking customer’s needs. Their high-yield savings accounts are no different, providing you with market-leading interest rates and 24/7 live customer service when you need it.
- Monthly Account Fee: $0
- Minimum to Open: $0
- Minimum Balance to Maintain: $0
- Current Interest Rate: 0.50% APY (as of October 8, 2021)
- Ways to Deposit Funds: Transfer from existing Ally account, transfer from external bank account, mobile deposit a check, mail in a check, incoming wire transfer
- Ways to Withdraw Funds: Transfer to existing Ally account, transfer to external bank account, request a check, outgoing wire transfer
- ATM/debit card provided? No
- Mobile App? Yes
- Mobile check deposit available? Yes
Want to earn competitive interest rates on your savings whilst also avoiding all monthly fees and account minimums? Then look no further than American Express Bank… a name you already trust with your finances.
- Monthly Account Fee: $0
- Minimum to Open: $0
- Minimum Balance to Maintain: $0
- Maximum Account Balance: $5,000,000
- Current Interest Rate: 0.40% APY (as of October 8, 2021)
- Ways to Deposit Funds: Transfer from existing American Express Bank account, transfer from external bank account, mail in a check, incoming wire transfer
- Ways to Withdraw Funds: Transfer to existing American Express Bank account, transfer to external bank account, request a check, outgoing wire transfer
- ATM/debit card provided? No
- Mobile App? Yes — though it’s currently only available to customers who also have a credit card account with American Express
- Mobile check deposit available? No
There are no local banking branches for American Express Bank customers.
This is the first online bank on our list to have a minimum deposit. When you open a savings account at CIT Bank, though, you’ll get a free, FDIC-insured account with no strings attached.CIT Bank recently introduced their Savings Builder account, which is a new take on savings. If you want to earn even more on your funds, you simply need to commit to saving each month! Talk about encouragement.
As long as you deposit a minimum of $100 into your savings each month (or maintain a minimum balance of $25,000) you’ll earn up to a whopping 0.50% APY. This means that no matter how much you carry in your account, you’ll still earn the top-tier savings rate as long as you deposit $100 or more monthly.
- Monthly Account Fee: $0
- Minimum to Open: $100
- Minimum Balance to Maintain: $0
- Current Interest Rate: up to 0.50% APY (as of October 10, 2021)
- Ways to Deposit Funds: Transfer from existing CIT Bank account, transfer from external bank account, mail in a check, incoming wire transfer
- Ways to Withdraw Funds: Transfer to existing CIT Bank account, transfer to external bank account, request a check, outgoing wire transfer
- ATM/debit card provided? No
- Mobile App? Yes
- Mobile check deposit available? Yes
As with most of the banks on this list, there are no local CIT Bank branches for you to visit.
Though Capital One 360 is an online-only subsidiary of Capital One Bank, it offers something that few other online banks can: local branches. Depending on your financial needs and where you live, you may be able to pop in to your closest Capital One Bank branch to make certain changes to your 360 online account, withdraw or deposit cash, or even open a new account.
- Monthly Account Fee: $0
- Minimum to Open: $0
- Minimum Balance to Maintain: $0
- Current Interest Rate: 0.40% APY (as of October 9, 2021)
- Ways to Deposit Funds: Transfer from existing Capital One or Capital One 360 account, transfer from external bank account, deposit cash or check at a Capital One ATM, mail in a check, incoming wire transfer
- Ways to Withdraw Funds: Transfer to existing Capital One or Capital One 360 account, transfer to external bank account, request a check, outgoing wire transfer
- ATM/debit card provided? Yes
- Mobile App? Yes
- Mobile check deposit available? Yes
Capital One 360 also offers checking accounts, so you can manage all of your funds from one place (and transfer between them as needed). You can open as many as 25 Capital One 360 savings accounts at once, too, to save for all of your future plans.
This bank has been around since the 1600s, though its presence in the United States is much more recent. Even still, Barclays offers reliable banking services with savings interest rates that are 20x the national average.
With Barclays, you can deposit checks electronically by simply uploading a photo of each side of the signed check. This can be done via your smartphone or even your desktop computer.
- Monthly Account Fee: $0
- Minimum to Open: $0
- Minimum Balance to Maintain: $0 (but in order to earn the posted APY, you must maintain a balance that would earn you at least $0.01)
- Current Interest Rate: 0.40% APY (as of October 8, 2021)
- Ways to Deposit Funds: Transfer from existing Barclays account, transfer from external bank account, mail in a check, incoming wire transfer
- Ways to Withdraw Funds: Transfer to existing Barclays account, transfer to external bank account, request a check, outgoing wire transfer
- ATM/debit card provided? No
- Mobile App? No
- Mobile check deposit available? Yes
There are no stateside bank branches for Barclays.
Why Choose a Savings Account?
If you want to protect your savings from… well, yourself… you’ll want to put that money in a dedicated savings account. Not only can this help you visualize your financial goals and where you stand, but separating the funds can also help you avoid the temptation to spend.
Plus, if you’re going to be setting aside savings for things like an emergency fund, family vacation, future big purchase, or even a down payment on a new car, you might as well make that money work for you. By choosing a high-yield savings account — such as the ones listed here — you can maximize your interest earned. Why not let your money make you even more money while you continue to save?
What to Look For In a Savings Account
There are a few key features to be on the lookout for when choosing a new savings account.
The first is the interest rate. When you consider that some of these accounts offer 20x the national average, it’s easy to see how you could leave a lot of free money on the table by choosing wrong.
Next, you’ll want to avoid fees wherever you can. The accounts listed here are all free, and won’t charge you to open a new account, won’t charge you monthly maintenance fees, and don’t even require you to hold a minimum balance. However, not all savings accounts are created equal, so be sure that you don’t open an account that will eat away at your balance with monthly fees.
Lastly, make sure that the account you choose offers you the access that you need most. If you deposit checks into savings often, you’ll want an account that has mobile check deposit. If you need to transfer money on the go, be sure to look for a bank with an easy-to-use mobile app.
Where you put your savings is almost just as important as the act of saving. By picking the right account at the right bank, you can make the process of saving money easy, pain-free, and even lucrative.
