Whether you’re saving money for an emergency fund or something a bit more fun like a new car, online savings accounts have a lot to offer. They usually offer higher interest rates than the local brick-and-mortar bank, and many have other benefits as well. Here is a quick rundown of the best online savings accounts in 2020 and why we love them.
CIT Savings Builder
This savings account is aptly named. To earn the highest interest rate (currently .65% APY), you must have either a minimum of $25,000 in your account or deposit at least $100 into your account each month. This requirement encourages you to keep building your savings to receive the benefit of the higher interest rate. If you don’t meet this requirement, you’ll earn interest at a lower rate of .45% APY. The lower interest rate is still better than what you would probably get at a local bank, but meeting the minimum requirements for the higher interest rate will give your savings a boost.
What we like:
- Low minimum opening requirement of $100
- No maintenance fees
- Deposit checks remotely
What we don’t like:
- Deposit requirements could become challenging to meet, resulting in reduced interest earnings
- No ATM cards or ability to withdraw cash
Discover Online Savings
Discover has a robust offering of online products, and their online savings account offers a fantastic rate with minimal fees. They currently pay .70% APY for their online savings account, which doesn’t require a minimum balance to open or maintain. If the ability to make ATM withdrawals is important to you, you can pair your savings account with a Discover debit account. This would allow you to transfer money from your savings to your checking account and then withdraw it at an ATM.
What we like:
- No minimum account balance
- No maintenance fees
- Earn interest on balances as low as $1.00
- Customer service available 24/7
What we don’t like:
- ATM card available only with a paired account, which makes withdrawing cash a multi-step process
Ally Online Savings
Ally’s online savings account offers users the exciting option of using “buckets” for their savings. It’s easy to see your goals and how much you have saved toward each goal, without the confusion of tracking amounts on a spreadsheet or opening multiple savings accounts. The interest rate for their online savings account is currently .80% APY, placing them as one of the highest interest payers for online savings accounts.
What we like:
- Ability to use buckets to track multiple savings goals
- Set up recurring transfers to help you automatically save more money
- No minimum balance
- No maintenance fees
What we don’t like:
- A $10 fee is charged on each withdrawal after making six withdrawals per month
- No ability to withdraw cash
Citi Accelerate Savings
Citi’s Accelerate Savings account currently has an interest rate of .90% APY. However, you can’t just open a savings account – you have to open an account package. Depending on which account package you choose, your Accelerate Savings account may be subject to different interest rates and terms. Even so, if you live in an eligible state, Citi offers a great interest rate and you may benefit from some of the other products they offer.
What we like:
- Access to over 60,000 ATMs across the country (though withdrawals may be subject to a $2.50 fee)
- No minimum to open an account
- Earn the same rate regardless of your account balance
What we don’t like:
- Customers in certain states may not be eligible for this type of account
- Account packages may make it difficult to determine how to avoid fees with your account
- Some customers may be subject to account maintenance fees
PNC High Yield Savings
With a 1.0% APY, PNC High Yield Savings has the highest interest rate of all the online savings accounts we reviewed. There’s no minimum balance to start earning this fantastic rate, and you can easily manage your account via their mobile app.
What we like:
- No minimum to open an account
- No monthly fees
- Earn interest as long as your account balance is over $1.00
- Free online or paper statements
- Ability to set up recurring transfers or deposit checks online
What we don’t like:
- $25.00 fee if your account is closed within 180 days of opening
- Fee of $3.00 for a staff-assisted transfer
- Limit of 6 transactions per month for the online savings account; additional transactions may be subject to a $15 fee.