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The best savings accounts for digital banking have well-designed mobile apps and online platforms to manage the account. Digital banking has quickly become an integral part of the banking experience for many consumers, and the banks listed below are some of the best in that category.
This list will highlight the best savings accounts for digital banking—and the pros and cons of each account.
In This Post
Best Savings Accounts for Digital Banking
We’ve compared 69 online savings accounts at 40 nationally available banks and credit unions to find some of the best accounts available. Click on the individual View Details button for each featured account to learn more about why we picked it, the pros and cons, and to access individual bank reviews.
APYs and account details are accurate as of December 13, 2020.
Discover Bank
Capital One 360
Marcus by Goldman Sachs
How to Choose an Online Savings Account
Choosing an online savings account may feel overwhelming for a variety of reasons. The best approach is to find an account that matches your financial goals and keeps fees to a minimum.
While earning the highest APY possible may be your primary objective for a savings account, keep in mind other important factors, such as ease of access, customer experience and convenience. You may find it’s best to choose an account that works best for your goals, even if that means earning a slightly lower interest rate.
Methodology
The accounts on this list have some of the most highly rated online experiences and mobile apps, offering the ability to manage savings account tasks from anywhere easily. They also rank well according to the overall criteria we’ve set for the Best Online Savings Accounts.
To create a list of the best savings accounts, Forbes Advisor analyzed 69 online savings accounts at 40 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each institution on 11 data points within the categories of APY, fees, minimum requirements, customer experience, digital experience and availability. All of the accounts on our list are online-based accounts.
Here’s the weighting assigned to each category:
- APY: 45%
- Fees: 15%
- Minimums: 15%
- Customer experience: 10%
- Digital experience: 10%
- Availability: 5%
We also considered whether there were complex tier structures or requirements to earn the APY or other stipulations to earn the APY. Minimum deposit requirements of $10,000 or higher affected scores negatively, as did high minimum balance requirements to avoid fees. To appear on this list, the online savings account must be nationally available.
Frequently Asked Questions (FAQs)
Is my money safe in an online savings account?
So long as you open an account with a bank that’s insured by the FDIC (Federal Deposit Insurance Corporation) or the NCUA (National Credit Union Administration) at credit unions, your money is insured up to $250,000 per depositor, for each ownership category, in the case of a bank or credit union failure.
How do savings accounts work?
Savings accounts are safe financial products that usually pay a variable rate of interest. They are useful for stashing money for future needs and goals. These accounts generally offer consumers limited access to their money—there are restrictions on how often you can tap into your account. Until recently, Federal Reserve Board Regulation D limited certain types of transactions and withdrawals to six per month. But in April 2020, the Fed lifted that restriction. However, if you go over that limit, your bank can still charge an excess withdrawal fee.
If you need frequent access to your cash, a checking account may be a better solution.
How much money should I keep in my savings account?
This is a personal decision that largely depends on your financial situation and needs. Keep in mind that a savings account can be an excellent place to hold your emergency fund. It can also be a good place for stashing a down payment on a home or cash for other short-term financial goals.
Which banks have the best interest rates on savings accounts?
Interest rates on savings accounts are generally variable, and banks shift their rates often. To find the best high-yield savings accounts, thoroughly comparison shop online.
Can you lose money in a savings account?
Generally, you can’t lose money in a savings account. Savings accounts are safe places to keep cash you may need in the near future since they are insured by either the FDIC at banks or the NCUA at credit unions. Savings accounts aren’t volatile, like the stock market. However, interest rates may fluctuate while you have the account.
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First Published: Dec 13, 2020, 3:00pm
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