Best Online Savings Accounts for November 2021

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If you are looking for a new online savings account, see our list of all the online savings accounts available in 2021.

Online banks offer higher interest rates than brick-and-mortar banks. This means that stashing cash in an online savings account now pays off because they have fewer overhead costs. Since online banks are vying to be your new online bank, they tend to offer higher yields.

Banking online is safe, FDIC insured and is a great way to earn interest on your money as it is protected. But which online banks offer the best savings accounts in 2021? If you are looking for a new savings account, check out our below our most updated list of the best online high-interest savings accounts available to you.

best online savings accounts
BANKDETAILSMIN. BALANCE FOR APY APY
aspirationbest savings accounts
  • Impressive APY on savings
  • Earn cash back on purchases with ethical retailers
  • Deposits do not fund fossil fuel exploration or production
  • The impressive 1.0% APY is only available with the Aspiration Plus account, which has a $15 per month fee.

$0

Member, FDIC

1.00

OPEN ACCOUNT
axos savings accountbest savings accounts
  • No monthly maintenance fees
  • No minimum balance requirements
  • Interest compounded daily
  • 24/7 online access with Online and Mobile Banking
  • FDIC Insured

$0

Member, FDIC

0.61%

OPEN ACCOUNT
cit bank logobest savings accounts
  • Higher rates than traditional banks
  • 24/7 Account Access
  • Secure banking features
  • FDIC Insured

$100

Member, FDIC

0.40%

OPEN ACCOUNT
sofi logobest savings account
  • Hybrid Checking and Savings Account
  • Pay no account fees or ATM fees worldwide
  • Open an account in minutes - all free

$0

Member, FDIC

0.20%

OPEN ACCOUNT

Banks with the Best Savings Accounts

Here are My Millennial Guide’s selections for the best savings account rates from top online banks.

Rates are current as of November 2021. 

CIT Bank 0.40% APY (tiered) – By rewarding those who actively add to their savings, the CIT Bank Savings Builder Account helps people build their savings account balance while developing good saving habits. You’ll need $100 to open this account, but there are no account maintenance fees and you do almost all of your transactions through their app.

Discover Bank 0.40% APY If you’re not sure about online banking, using a reputable, established company like Discover Bank should offer some peace of mind. Zero-fee savings, checking and money market products, along with industry-leading interest rates make Discover Bank a great option for online banking.

Synchrony Bank 0.50% APY Similar to other banks on this list, Synchrony Bank offers an annual percentage yield that is significantly higher than the national average. If you are looking for a high-yield account to grow your savings, but also want ATM access to your funds, Synchrony is a good choice. 

Ally Bank 0.50% APY Ally offers high rates, low fees, an easy-to-use app, and great customer service. There are no physical branches for Ally Bank, but they offer a $10 monthly credit to apply towards ATM fees, making it easy to use an ATM if you need one.

Barclays Bank – 0.40% APY – Barclays has no physical branches in the United States but makes up for it with a very competitive annual percentage yield. There are no monthly fees and no minimum balance you must maintain.

Other banks with high interest rates:

CIT Bank Savings Builder [Our Favorite Online Savings Account]

If you’ve ever considered putting money in a high yield savings account, now is probably the right time to do it. CIT Bank has an amazing rate of .40% APY. That’s over 19x the national average savings rate! You can open a new savings account with their low $100 minimum opening deposit requirement and it’s as simple as that. CIT Bank provides an outstanding example of what you can receive in an internet bank with its amazingly high APY and its outstanding service. If you are interested you can learn more here.

In order to get the .40% APY on the Savings Builder account, you’ll want to keep a $25,000 balance or simply open the account with at least $100 and make $100 monthly deposits. If you have under $25,000 or don’t make monthly deposits of at least $100, you’ll earn a variable rate of 0.25% APY.

BankTermsOpen
citbankAchieve Your Dreams With CIT Bank
No monthly service fees. $100 minimum to open your account. FDIC insured up to $250,000. Simple and smart.

LEARN MORE

How to Open an Online Savings Account

You’ll need some basic information to open an online savings account. If you’ll have a co-owner on the account, you’ll need their information too. Typically, you’ll need to provide your name, current address, other recent addresses if you’ve moved recently, and your Social Security number.

When you are ready to open an online savings account, make sure you make sure the online savings account has the features most people utilize.

The Benefits of The Best Online Savings Accounts

Opening a savings account excites most millennials about as much as collecting the $100 for ‘Passing Go’ in a game of Monopoly. You sink some cash into a high-interest savings account that you will not touch until the proverbial rainy day. If you live in Phoenix, your savings account remains untouched for most of the year (haha). On the other hand, rainy days abound for the Seattle savings account holders.

A savings account sounds like a bland way to stash away money, but you can spice up your finances by considering six features that define the best high-interest savings accounts.

1. Take an Interest in Interest Rates

Consumer Federation recently released a report that stated only four percent of the United States based banks pay interest on savings accounts of more than 0.25. Money market accounts pay higher interest rates, but you have to carry a much higher minimum balance and pay more in transaction and account maintenance fees. Shopping for the best basic savings account rates involves researching what banks pay interest for customers who open online accounts. Many banks, such as CIT Bank offer online savings accounts that pay nearly .40% APY (some of the highest rates in the nation). You will never get rich by opening a savings account, but you still want your hard-earned cash to work for you in the form of the best interest rate.

BankTermsOpen
citbankAchieve Your Dreams With CIT Bank
No monthly service fees. $100 minimum to open your account. FDIC insured up to $250,000. Simple and smart.

LEARN MORE

2. Automatic Deposits

When you accept a new job, one part of the new employee orientation involves completing a form that dictates how you want your paycheck deposited. We all want a large chunk of our pay to go directly into a checking account. Yet, the best savings accounts like Aspiration offer a feature that allows for an automatic deposit. “Most people don’t have the time or discipline to make regular contributions to savings on their own,” said Steve Brobeck, executive director of the Consumer Federation of America. Choose a bank that transfers a set percentage of your pay each week to your bank account. Even better, some banks make automatic transfers from checking to savings accounts one time per month.

DescriptionGo
Aspiration
Sign up bonus: $150

Want to get spotted a $150 for free? Simply sign up for Aspiration, and the free banking app will give you cash for free, you just relax while it gives you $150 just for opening a new debit card. There’s no catch. This bank account is legit and only takes two minutes to sign up for an account.

OPEN ACCOUNT
aspiration

3. Low Monthly Fees

Savings accounts should not cost banks much money to maintain. After all, the transaction activity for a typical savings account amounts to nothing more than regularly scheduled automatic deposits. However, banks like to collect fees on anything, from withdrawing too much from a checking account to sneezing while you wait in line to make a money market transaction.

Savings account fees vary, depending on the type of account and the average monthly balance of the account.  Consider a bank that charges less than $2 per month in savings account fees and avoids banks that charge a minimum monthly balance fee.

4. Access to Cash

Liquidity, that often thrown around financial term, has relevance for savings account holders. You want to have instant access to your savings account cash via online transfers and withdrawals from ATMs. You might need a substantial amount of money for an emergency that your checking account does not cover. A federal banking law allows only six savings account withdrawals per month. Some banks permit less than six savings account withdrawals a month and on top of that, the banks add transaction fees to give you access to your money.

5. Deposit Insurance

Savings account deposit insurance is a no-brainer, yet many millennials forget to check a bank’s policy on protecting hard-earned cash. Federal deposit insurance protects savings account balances up to $250,000. Some of the highest interest paying banks have acquired Federal Deposit Insurance Corporation (FDIC) protection for savings account holders. This means you do not sacrifice savings account interest yields for gaining peace of mind.

6. Open an Online Account

It is not just the convenience of opening an online savings account. A growing number of banks offer free online banking tools that help millennials learn how to save money. Here are some of the best online savings account that you can compare:

BANKDETAILSMIN. BALANCE FOR APY APY
aspirationbest savings accounts
  • Impressive APY on savings
  • Earn cash back on purchases with ethical retailers
  • Deposits do not fund fossil fuel exploration or production
  • The impressive 1.0% APY is only available with the Aspiration Plus account, which has a $15 per month fee.

$0

Member, FDIC

1.00

OPEN ACCOUNT
axos savings accountbest savings accounts
  • No monthly maintenance fees
  • No minimum balance requirements
  • Interest compounded daily
  • 24/7 online access with Online and Mobile Banking
  • FDIC Insured

$0

Member, FDIC

0.61%

OPEN ACCOUNT
cit bank logobest savings accounts
  • Higher rates than traditional banks
  • 24/7 Account Access
  • Secure banking features
  • FDIC Insured

$100

Member, FDIC

0.40%

OPEN ACCOUNT
sofi logobest savings account
  • Hybrid Checking and Savings Account
  • Pay no account fees or ATM fees worldwide
  • Open an account in minutes - all free

$0

Member, FDIC

0.20%

OPEN ACCOUNT

Best Online Savings Account Summary

I hope these tips shed some light on the basic money management and features of the best savings accounts. Even though it seems like a lot of information to digest in one go, remember to start slowly, one step at a time. Before you know it, you’ll be managing your personal finances like a boss.

Come check back soon as we will regularly update this list. If you are looking for the best savings apps, you can find that here.

What advice would you give to a beginner who wants to start budgeting and improving their money management skills?

What’s Next?

If you find it difficult to save money, using money-saving apps to help you automatically save can get you on the right track. By saving money regularly you get in the right habit and start building wealth. You can see our favorites below:

AppAt a glancedownload
personal capitalSoFi
★★★★★
SoFi is one of the best money-saving apps that offers everything all within one app. Switch to SoFi Money—a cash management account that earns interest, has no account fees, and more. Get $100 instantly when you switch your direct deposit to SoFi Money.
CLAIM $100 BONUS
personal capitalPersonal Capital
★★★★★
Use the Personal Capital's Savings Planner to find out how much you need to save each year. Plan your retirement savings, emergency funds and progress towards paying down debt while budgeting and saving money.
100% FREE
Truebill reviewTruebill
★★★★★
This free app delivers on its promise to save you money effortlessly. You can use it to lower your bills, cancel unwanted subscriptions and bill negotiations.
SLASH YOUR BILLS
aspirationAspiration
★★★★★
Get a $100 bonus at Aspiration when you open and fund an account with $10 or more. Then use your Aspiration debit card to make at least $1,000 worth of cumulative transactions within 60 days of account opening.
CLAIM $100 BONUS
robinhoodRobinhood
★★★★★
Open a new account in the next 24 hours and you could get up to $200 in free stock.
CLAIM FREE STOCK

Best for low minimum investment
Arrived

Rating: ★★★★★

Arrived is a very easy-to-use platform that allows individuals to invest in real properties for as little as $100. This option is best for users who want to make money consistently and let their money make them money.

Open Account

About the author

Brian Meiggs
Brian Meiggs is a personal finance expert, and the founder of My Millennial Guide, a personal finance site helping you put more money in your pocket. He helps millennials follow the smart money in order to increase their earning potential and start building wealth for the future. He regularly writes about side hustles, investing, and general personal finance topics aimed to help anyone earn more, pay off debt, and reach financial freedom. He has been quoted as a top personal finance blogger in major publications including Yahoo! Finance, NASDAQ, Discover, MSN Money and more.

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