Best Savings Accounts of 2020

my millennial guide

It doesn’t matter if you’re working class or very wealthy — everyone needs an emergency fund. And there’s no better place to park the money you’re saving than in a high-interest savings account.

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.

BANKDETAILSMIN. BALANCE FOR APY APY
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%

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

$25,000

Member, FDIC

.45%

Sign up
credit karma savings account
  • Earn a high-yield savings rate that’s optimized across a network of 800+ banks
  • Open an account in just a few easy steps and manage it right in the Credit Karma app
  • Your account is 100% free, no matter your balance
  • There's no minimum to open

$0

Member, FDIC

0.40%
Sign up

sofi logobest savings account
  • Get $75 when you make two direct deposits of at least $500 each
  • 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%
Sign up

Our Winner is:

cit bank logo

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 .75% 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 .75% 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 0.67% APY.

VISIT CIT BANK

Click here to learn everything you need to know about Savings Accounts

Opening a savings account excites most millennials about as much as collecting the $200 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 .75% 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.

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 Capital One 360 Savings 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.

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
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%

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

$25,000

Member, FDIC

.45%

Sign up
credit karma savings account
  • Earn a high-yield savings rate that’s optimized across a network of 800+ banks
  • Open an account in just a few easy steps and manage it right in the Credit Karma app
  • Your account is 100% free, no matter your balance
  • There's no minimum to open

$0

Member, FDIC

0.40%
Sign up

sofi logobest savings account
  • Get $75 when you make two direct deposits of at least $500 each
  • 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%
Sign up

Best 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
capital one shoppingCapital One Shopping
★★★★★
Amazon doesn't want you to know about this plugin. Learn about a little known plugin that tells you if you're getting the best price on Amazon.
START SAVING
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 $200 in free stock.
CLAIM FREE STOCK
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