Best online savings accounts of 2025
Updated . Online banks offer significantly higher rates than traditional banks—often 10-15x more.
Current rate environment: Online savings accounts are offering APYs around 4.25-5.00%, while traditional banks average just 0.45%. Moving your savings online can earn hundreds or thousands more per year.
FDIC Protection: All recommended accounts are FDIC-insured up to $250,000 per depositor, per bank. Your money is as safe as it would be at any traditional bank, but earning much more.
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Our top online savings picks
How we picked: We compared APY rates, fees, minimum balances, digital features, customer service, and account accessibility.
Best overall: Marcus by Goldman Sachs
Why it stands out: Consistently competitive rates with no fees and no minimum balance. Simple, straightforward savings account from a well-established financial institution with excellent customer service.
- High APY: Currently offering 4.50% APY on all balances.
- No fees: No monthly maintenance, transfer, or excess transaction fees.
- No minimums: No minimum balance to open or maintain the account.
- Easy transfers: Link external accounts for seamless money movement.
- FDIC insured: Full FDIC protection up to $250,000.
- User-friendly platform: Clean, simple online and mobile interface.
Best for beginners: Ally Online Savings
Why it stands out: Comprehensive online banking with excellent customer support, educational resources, and tools perfect for people new to online banking. No fees and competitive rates.
- Competitive APY: 4.25% APY with no balance requirements.
- Excellent support: 24/7 customer service with live chat and phone support.
- Educational tools: Savings calculators, financial guides, and goal-setting features.
- No fees: No monthly fees, minimum balance requirements, or transfer fees.
- Easy account management: Intuitive online platform and mobile app.
- Multiple savings buckets: Organize savings into different goals and categories.
Highest rates: CIT Bank Platinum Savings
Why it stands out: Offers some of the highest APYs available with a low minimum balance requirement. Great for savers who want to maximize their earnings on larger balances.
- Top-tier APY: 4.85% APY for balances of $5,000 or more.
- Low minimum: Just $100 minimum to open, $5,000 for highest rate.
- No monthly fees: No maintenance fees regardless of balance.
- Compound interest: Interest compounds daily and pays monthly.
- Digital banking: Full-featured online and mobile banking platform.
- Rate transparency: Clear rate structure with no hidden conditions.
Best mobile app: Capital One 360
Why it stands out: Award-winning mobile app with innovative features, competitive rates, and seamless integration with other Capital One products. Excellent digital banking experience.
- Strong APY: 4.30% APY with no minimum balance requirements.
- Award-winning app: Highly rated mobile app with intuitive design.
- Multiple savings accounts: Create unlimited savings accounts for different goals.
- No fees: No monthly fees, minimums, or excess transaction charges.
- Integration benefits: Works seamlessly with Capital One credit cards and checking.
- Automatic savings: Round-up features and automatic transfer options.
Best customer service: Discover Online Savings
Why it stands out: Consistently top-rated customer service with U.S.-based support representatives. Competitive rates combined with exceptional human support when you need it.
- Competitive rate: 4.35% APY on all balance levels.
- Exceptional service: Award-winning customer service with U.S.-based representatives.
- No fees or minimums: No monthly fees, minimum balances, or transfer fees.
- Cash back rewards: Unique cashback rewards program for certain activities.
- Easy transfers: Free transfers to and from external bank accounts.
- Educational resources: Financial planning tools and savings guidance.
Best for goal setting: YOTTA Savings
Why it stands out: Gamified savings experience that makes saving fun through weekly prize drawings while still offering competitive rates. Great for people who need motivation to save.
- Competitive APY: 4.20% APY plus potential prize winnings.
- Gamified experience: Weekly prize drawings based on your balance.
- Goal tracking: Advanced tools for setting and tracking savings goals.
- No fees: No monthly maintenance or transfer fees.
- FDIC insured: Full protection through partner banks.
- Social features: Save with friends and family through shared goals.
Online vs traditional bank savings rates
| Bank Type | Average APY | Annual Earnings on $10,000 | Annual Earnings on $50,000 |
|---|---|---|---|
| Online High-Yield Savings | 4.50% | $450 | $2,250 |
| Traditional Big Banks | 0.45% | $45 | $225 |
| Credit Unions | 1.25% | $125 | $625 |
| Community Banks | 0.85% | $85 | $425 |
Rates are representative averages. Online banks typically offer 10-15x higher returns than traditional banks.
Savings calculator example
Scenario: $25,000 saved for one year
- Online high-yield (4.50% APY): Earns $1,125 in interest
- Traditional bank (0.45% APY): Earns $113 in interest
- Difference: $1,012 more with online savings
Over 10 years, this difference compounds to over $12,000 in additional earnings with the higher rate.
How we picked these online savings accounts
We evaluated dozens of online savings accounts based on APY rates, fees, minimum balance requirements, digital platform quality, customer service ratings, account features, and overall user experience.
What you should know about online savings
Online savings accounts offer significantly higher interest rates than traditional banks by operating with lower overhead costs. They're FDIC-insured and safe, but come with some trade-offs to consider.
Benefits of online savings
- Higher rates: APYs often 10-15x higher than traditional banks.
- Lower fees: Most online banks have no monthly maintenance fees.
- 24/7 access: Manage your account anytime through digital platforms.
- Easy transfers: Link external accounts for seamless money movement.
- FDIC protection: Same government insurance as traditional banks.
Potential drawbacks
- No physical branches: All banking done online or by phone.
- Transfer delays: ACH transfers can take 1-3 business days.
- ATM limitations: May have limited ATM access or fees.
- Cash deposits: Difficult to deposit cash without branch access.
Online savings account features to compare
Annual Percentage Yield (APY)
The most important factor—this is how much your money will earn. Look for accounts offering 4.00% APY or higher in the current rate environment.
Fees
- Monthly maintenance fees: Most good online accounts have none.
- Transfer fees: Should be free for ACH transfers to external accounts.
- Excess transaction fees: Federal limit of 6 withdrawals per month.
- ATM fees: Check if the bank reimburses ATM fees.
Minimum balance requirements
The best online savings accounts have no minimum balance to open or maintain the account.
Digital platform quality
- Website usability
- Mobile app ratings
- Account management features
- Transfer capabilities
Tips for maximizing online savings
- Shop rates regularly: APYs change frequently—review your rate every few months.
- Automate transfers: Set up automatic transfers to build savings consistently.
- Ladder CDs: Consider CD laddering for funds you won't need soon.
- Emergency fund first: Build 3-6 months of expenses in high-yield savings before investing.
- Multiple accounts: Use different accounts for different savings goals.
- Monitor rate changes: Banks can change rates—stay informed about your APY.
Online savings account red flags
- Promotional rates that drop significantly after a few months.
- High minimum balance requirements to earn the advertised rate.
- Excessive fees for transfers or account maintenance.
- Poor customer service ratings or limited support options.
- Complicated requirements to maintain the high APY.
- Banks that aren't FDIC-insured (avoid these entirely).
- Rates that seem too good to be true compared to market averages.
Types of online savings accounts
High-yield savings accounts
Standard savings accounts offering significantly higher rates than traditional banks. Best for emergency funds and short-term goals.
Money market accounts
Hybrid accounts offering savings rates with some checking features like debit cards or limited check writing.
Certificates of Deposit (CDs)
Time deposits with fixed rates and terms. Higher rates than savings but money is locked up for the term length.
Goal-based savings
Accounts designed for specific savings goals with tools and features to help you reach targets.
Business savings
High-yield accounts designed for business banking needs with higher deposit limits and business features.
Getting started with online savings
Before opening an account
- Compare current rates: Rates change frequently, so check current offers.
- Read the fine print: Understand any requirements to earn the advertised rate.
- Check customer reviews: Look for feedback on customer service and platform quality.
- Verify FDIC insurance: Ensure the bank is properly insured.
Opening process
- Gather documents: You'll need ID, Social Security number, and funding source info.
- Initial deposit: Most accounts can be opened with small initial deposits.
- Link external accounts: Connect your primary bank for easy transfers.
- Set up automatic transfers: Automate your savings to build the habit.
Questions about online savings accounts
- Are online savings accounts safe?
- Yes, when properly FDIC-insured. Online banks are regulated the same as traditional banks and your deposits are protected up to $250,000 per depositor, per bank. The main difference is the delivery method, not the safety.
- Why do online banks offer higher interest rates?
- Online banks have lower overhead costs—no physical branches, fewer employees, lower real estate costs. They pass these savings to customers through higher interest rates and lower fees.
- Can I access my money easily from an online savings account?
- Yes, through electronic transfers, which typically take 1-3 business days. Some online banks also offer ATM access, though savings accounts are limited to 6 withdrawals per month by federal regulation.
- How often do online savings rates change?
- Rates can change frequently based on Federal Reserve policy and competitive pressures. It's good practice to review your rate every few months and consider switching if significantly better rates become available.
- What's the difference between APY and interest rate?
- APY (Annual Percentage Yield) includes compounding and represents your actual annual return. Interest rate is the base rate. Always compare APYs when shopping for accounts as they show the true earning potential.
- Should I keep all my savings in one online account?
- Consider diversifying across multiple banks to maximize FDIC protection (if you have over $250,000) and to take advantage of the best rates. You might also use different accounts for different savings goals.
- How much should I keep in a savings account vs investing?
- Keep 3-6 months of expenses in high-yield savings for emergencies. Additional funds might be better invested for long-term growth, depending on your timeline and risk tolerance.
Important information: Annual Percentage Yields (APYs) are variable and subject to change at the bank's discretion. Rates shown are current as of the publication date but may have changed. All accounts mentioned are FDIC-insured up to applicable limits. Consider your overall financial situation and goals when choosing savings products.
Rate Variability: Online savings rates fluctuate based on market conditions and Federal Reserve policy. The accounts listed currently offer competitive rates, but you should verify current rates before opening any account. No account guarantees rates will remain at current levels.
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