Best Savings Accounts (The 2020 Edition)

By Allison Martin Last updated Jan 18, 2020

Savings accounts are instrumental in helping you fund short-term purchases or meet long-term objectives. While most banks offer savings accounts to complement their checking products, some are more enticing than others. Read on to learn more about the best savings accounts on the market:

Brick-and-Mortar

You can’t go wrong with a traditional brick-and-mortar bank when looking to open a savings account. But since not all savings accounts are created equal, you want to do your homework to ensure you’ll earn the hefty return you’re seeking. Some of the best options on the market include:

Chase Savings

While Chase Bank doesn’t boast an impressive APY like some of the other brick-and-mortar banks, they do offer a generous $150 bonus when you open a new savings account and meet the following criteria:

Make a minimum opening deposit of $10,000 within 20 days
Maintain a daily balance of $10,000 for 90 consecutive days

You can also earn $200 more with a new checking account, bringing your total in sign-up bonuses to a whopping $350. And all you have to do is set up direct deposit to your new checking account.

As an account holder, you’ll earn 0.01 percent APY, and there’s a minimum deposit requirement of $25 to get started. But the monthly service fee is only $5, which can be avoided with qualifying activities.

HSBC Bank USA

When you open a Direct Savings account with HSBC Bank USA, you can earn 2.01 percent APY on your money. All you need is $1 to open your account, and a monthly maintenance fee does not apply.

As an account holder, you’ll also have access to HSBC’s money management tools that help you get your finances in order. It includes goal setting, budgeting, and savings tools to ensure you hit the key benchmarks you set for yourself.

Credit Union

Credit unions offer consumers the best of both worlds by allowing them to be account holders while owning a share of the credit union. Some credit union savings accounts that will allow you to earn a generous return on your money:

Alliant Credit Union

You can earn up to 1.95 percent APY with a High-Rate Savings Account from Alliant Credit Union if you maintain an average daily balance of at least $100. There are no earnings maximums on interest, and the monthly fee can be waived if you enroll in eStatements.

To open a savings account, you’ll need to make a $5 deposit. And you must maintain a balance of this amount each month for your account to remain open.

Online Banks

Perhaps you’re searching for an online savings account because you’re always on the go. Or maybe you prefer an online option because it’ll prevent you from immediately accessing funds, which helps you become an even better saver. Either way, here are a few options to consider:

Ally Bank

Ally Bank offers an online savings account that will pay you a return of 2.00 percent APY on your money. This is a whopping 20 times higher than the national average.

There are no monthly maintenance fees, cashier’s checks, and ACH transfers are available free of charge. You can also deposit checks via the mobile app or by using a postage-paid envelope.

American Express Personal Savings

The Personal Savings High Yield Savings Account from American Express pays 2.00 percent APY on your earnings. But since these accounts are geared towards saving and not everyday spending, ATM cards and checks are not distributed. Instead, you’ll need to make telephone and online withdrawals. (Note that these are collectively limited to six per month).

Fund transfers from an outside bank account to your American Express High Yield Savings Account generally take one to three business days to appear. However, if the transfer is initiated from your Amex savings account expect to wait for three to five business days for the proceeds to be reflected in your account balance.

Barclays Online Savings Account

The Barclays Online Savings Account boasts one of the highest return on your money with an APY of 2.05 percent. They also offer a Savings Assistant tool directly from the online dashboard that allows you to set a savings goal and calculate how much you’ll need to get there within your desired timeframe.

There is no minimum opening deposit required. And as an account holder, you’ll never be assessed monthly maintenance fees. Furthermore, you don’t have to maintain a minimum daily balance to earn a return on your money.

Deposits to your Barclays Online Savings Account can be initiated via Remote Deposit using your computer or mobile device, direct deposit, ACH transfer or postal mail. Once the funds hit your account, they are subject to a five business day hold.

When you need to withdraw funds, you can initiate an outgoing transfer online or call the customer service outline and request that a check is mailed to you. (Quick note: online transfers take two to three business days to be reflected on the receiving in).

Capital One 360 Savings Account

Capital One 360 is a viable savings account option for consumers looking to earn a decent rate of return on any amount they have saved. It is accompanied by a 1.00 percent APY, and there are no monthly maintenance fees.

And unlike other savings account products on the market, there is no minimum opening deposit requirement. Even better, your account can remain open even if the balance reaches zero.

Account transfers are free between Capital One accounts or from outside financial institutions. There are also automatic savings plans to help you meet your financial goals quicker. And funds can be deposited directly from their state-of-the-art mobile app.

Discover

The Online Savings Account from Discover is another straightforward savings options devoid of monthly maintenance fees and monthly balance minimums. As an account holder, you’ll earn an APY of 2.00 percent and there’s no minimum opening deposit requirement.

In addition, all incoming transfers are free, and official bank checks are available free of charge. There’s also no fee for deposit items that are returned.

Another major perk is the ability to have your first fee forgiven. This could apply to excessive withdrawal fees (if the number of monthly withdrawals exceeds six), stop payment orders, NSF, and outgoing wire transfer fees.

Marcus by Goldman Sachs

Marcus by Goldman Sachs pays an APY of 2.05 percent to its account holders without assessing transaction fees. However, this online bank does not offer checking accounts, so you’ll have to initiate deposits elsewhere or you can enroll in direct deposit so funds are sent directly to your account. The good news is inbound and outbound wire transfers do not incur fees.

While it is not necessary to make a minimum deposit when opening an account, you must maintain a daily balance of $1 to earn a return on your money. Furthermore, it is not equipped with a built-in saving tool to help you strategize and execute a plan to help you meet your savings goals faster.

The Bottom Line

It may be overwhelming to sort out all the savings account options out there, so start by considering the options on this list. And should you decide to explore offers from other financial institutions, pay attention to their APY, monthly maintenance fees, and conduct a cost-benefit analysis to ensure the benefits outweigh the potential drawbacks.