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What Is a Market-Linked CD?Best Online Savings Accounts of May 2025
Having an online savings account can be a great way to grow your savings while keeping your cash in an easily accessible place. Choosing the best account for you involves looking at annual percentage yields (APYs), fees and minimum balance requirements.
The best online savings accounts available today offer APYs between 3.10% and 4.86%. Here are our selections.
What are some of the best online savings accounts?
Here are our top picks for online savings accounts, along with a breakdown of key account features.
| Bank | APY | Minimum deposit | Fees | Account name |
|---|---|---|---|---|
 Barclays |
Up to 4.30% APY | None | No monthly maintenance or minimum balance fees | Tiered Savings Account |
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 American Express® |
3.60% APY | None | No monthly maintenance or minimum balance fees | High Yield Savings Account |
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 Synchrony Bank |
4.00% APY | None | No monthly maintenance or minimum balance fees | Synchrony Bank High Yield Savings |
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 LendingClub |
Up to 4.40% APY | None | No monthly maintenance or minimum balance fees | LevelUp Savings |
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 Ally Bank |
3.60% APY | None | No monthly maintenance or minimum balance fees | Savings Account |
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 Axos Bank |
Up to 4.66% APY | None | No monthly maintenance, minimum balance, account opening or overdraft fees | Axos ONE |
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 Discover® |
3.60% APY | None | No monthly maintenance, insufficient funds and excessive withdrawal fees | Online Savings Account |
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 Marcus by Goldman Sachs |
3.75% APY | None | No monthly maintenance or transfer fees | Online Savings Account |
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 CIT Bank |
4.00% APY | $100 | No monthly service fees | Savings Connect |
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 Capital One (Runner-up) |
3.60% APY | None | No monthly maintenance or other fees | 360 Performance Savings |
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 Alliant Credit Union (Runner-up) |
3.10% APY | $5 ($100 to earn interest) | No monthly fee if you sign up for electronic statements | High-Rate Savings |
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- What are some of the best online savings accounts?
- Summary of the best online savings accounts
- What is an online savings account?
- What to look for in an online savings account
- Pros and cons of online savings accounts
- Should I get an online savings account?
- How to open an online savings account
- Alternatives to online savings accounts
- Methodology
Summary of the best online savings accounts
Barclays
Tiered Savings Account
APY:Up to 4.30% APY
Minimum deposit:$0
Why we picked it:
The Barclays Tiered Savings Account offers one of the highest APYs on our list, and there are no minimum deposit requirements or monthly fees. However, the account has a tiered interest rate structure — only those who deposit $250,000 or more earn the top rate of 4.30% APY. If you don’t have a large amount to save, you can still earn a solid 4.10% APY on balances under that threshold. We also like that Barclays has no limits on the number of withdrawals and transfers you can make each month.
American Express®
High Yield Savings Account
APY:3.60% APY
Minimum deposit:$0
Why we picked it:
The American Express® High Yield Savings Account stands out with its competitive 3.60% APY, $0 opening deposit and no minimum balance requirements. The advertised APY is available for all balance tiers, and there are no monthly fees. Interest compounds daily and is deposited into your account monthly.
Synchrony Bank
Synchrony Bank High Yield Savings
APY:4.00% APY
Minimum deposit:$0
Why we picked it:
Synchrony Bank offers a Synchrony Bank High Yield Savings with no monthly fees or minimum deposit requirements. This account provides an optional ATM card, and Synchrony Bank will refund up to $5 per statement cycle of domestic ATM fees charged by other banks.
LendingClub
LevelUp Savings
APY:Up to 4.40% APY
Minimum deposit:$0
Why we picked it:
You can earn up to 4.40% with LendingClub’s LevelUp Savings account, but there’s a catch: You must make deposits of at least $250 each month. If you miss a month, your rate will decrease to 3.50% APY. This account also provides a free ATM card with its savings account for easy withdrawals.
Ally Bank
Savings Account
APY:3.60% APY
Minimum deposit:$0
Why we picked it:
The Ally Bank Savings Account earns a competitive 3.60% APY, and you don’t need to deposit or maintain a certain balance to earn it. Ally offers tools to make saving money easier, including savings buckets, which help you set aside cash for ongoing expenses. The Round Ups tool automatically tracks your spending accounts and finds transactions that can be rounded up to the nearest dollar. Once you accrue $5 in round ups, Ally transfers that amount to your savings; all transfers are between $5 and $20.
Axos Bank
Axos ONE
APY:Up to 4.66% APY
Minimum deposit:$0
Why we picked it:
You can earn up to 4.66% APY with Axos Bank’s Axos ONE. To earn that rate, you’ll need to open an Axos ONE® checking account and receive qualifying monthly direct deposits of $1,500 or more by the 25th of each month, as well as maintain an average daily balance of $1,500.
Discover®
Online Savings Account
APY:3.60% APY
Minimum deposit:$0
Why we picked it:
Discover®’s Online Savings Account earns a competitive 3.60% APY, with no opening deposit and no monthly fees. Discover also doesn’t charge fees for excessive withdrawals or insufficient funds. Ultimately, this is a straightforward savings account with a solid APY, backed by a reputable company.
Marcus by Goldman Sachs
Online Savings Account
APY:3.75% APY
Minimum deposit:$0
Why we picked it:
Marcus is an online bank owned by Goldman Sachs. Its Online Savings Account earns 3.75% APY regardless of your balance. Marcus makes it easy to transfer funds — you can make same-day transfers of up to $100,000 to and from other banks.
CIT Bank
Savings Connect
APY:4.00% APY
Minimum deposit:$100
Why we picked it:
CIT Bank’s Savings Connect account earns a competitive 4.00% APY. There is no minimum balance required to earn the APY, but you will need to deposit at least $100 to open the account. CIT also doesn’t charge monthly service fees.
Runners-up
Capital One
360 Performance Savings
APY:3.60% APY
Minimum deposit:$0
Why we picked it:
You can earn 3.60% APY with Capital One’s 360 Performance Savings, and this doesn’t require a minimum balance. You can open an account in as little as five minutes, and you can fund the account later, as there is no minimum to open or keep your account.
Alliant Credit Union
High-Rate Savings
APY:3.10% APY
Minimum deposit:$5 ($100 to earn interest)
Why we picked it:
Alliant Credit Union’s High-Rate Savings earns an above-average APY of 3.10% and charges no monthly fee as long as you enroll in electronic statements — otherwise, it’s $1. If you like to organize your savings by categories, you’re in luck. You can open up to 19 supplemental savings accounts for free. You must maintain an average daily balance of $100 or more to earn the stated APY.
What is an online savings account?
An online savings account is similar to a regular savings account, except it’s primarily managed through a bank’s website or mobile app. Like traditional savings accounts, online savings accounts typically have up to $250,000 in deposit insurance through the Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA).
The major benefit of online savings accounts is that they tend to have better rates and lower fees than traditional savings accounts. While the national average savings rate is 0.41%, many online savings accounts currently offer rates of about 4.00%.
What to look for in an online savings account
When comparing online savings accounts, you’ll want to look at these key factors:
- Rates: Look for accounts with competitive APYs because these directly affect how much you will earn on your savings. Keep in mind an account with a tiered interest rate structure may require a higher account balance to earn the advertised APY.
- Fees: You’ll also want to consider what fees the bank charges, as they can eat into your savings. Watch out for include monthly maintenance and overdraft fees.
- Balance requirements: Some banks require a minimum balance to earn the highest APY or to keep the account open. If you don’t have the amount available, you’ll need to consider other accounts.
- Minimum deposit: In some cases, you’ll need to make an initial deposit to open an online savings account. This deposit is usually about $100, but it can be more or less depending on the bank.
- Welcome bonus: Some banks offer special incentives for opening an account, such as cash bonuses or promotional APYs.
Pros and cons of online savings accounts
PROS
- Higher APYs than traditional savings accounts
- Fewer fees than other savings accounts
- Deposits usually covered by FDIC or NCUA insurance
CONS
- Minimal or no access to in-person banking services
- Limited ATM networks
- Must be comfortable using online or mobile technologies
Should I get an online savings account?
Whether an online savings account is right for you depends on your financial circumstances and goals. If you want to keep your savings separate from your checking account but still be able to access your cash for emergencies, an online savings account could be a good option.
A certificate of deposit (CD), which locks up your money for a set period, might be a better fit if you think you’ll be tempted to dip into your savings.
How to open an online savings account
Here’s how to open an online savings account, step by step:
- Choose an account. The first step is to select the right savings account for you. To do this, you’ll want to compare key factors, including the APY, fees and minimum balance requirements. It’s a good idea to shop around and compare several different accounts to find the best option for you.
- Gather your information. You’ll need to provide some personal information to the bank along with your account application. This may include your Social Security number or tax identification number, residential street address, email, phone number, and birthdate.
- Apply for the account. Most banks will give you the option to do this online or by phone. You may receive a decision right away, but it can take longer if the bank needs additional information from you.
- Deposit money. Some banks require you to make an initial deposit to open the account, while others allow you to open the account and deposit funds later. Either way, you’ll want to deposit money as soon as possible to start building savings and earning interest.
- Set up automatic transfers. One of the best ways to grow savings quickly is to set up automatic transfers from your checking account into your savings account. Start small if you’re not sure how much you can save — even saving $10 from each paycheck can add up over time.
Alternatives to online savings accounts
Other options to help you save money include:
- Money market accounts: If you want a spending and savings account rolled into one, a money market account might be right for you. Money market accounts have characteristics of both checking and savings accounts, allowing you to earn interest on your balance and access your money through checks or an ATM card.
- CDs: A CD can help you earn a guaranteed interest rate for a set term, which generally ranges from one month to five years. CDs are best for savings you know you won’t need for the duration of the term. Withdrawing funds from a CD before the maturity date can result in an early withdrawal penalty.
- Treasury bonds: You can purchase government-backed Treasury bonds, or T-bonds, that pay a fixed rate of interest until they mature or you sell them. Maturity periods range from 20 to 30 years, and interest payments are semiannual. Treasury bonds can provide a steady, predictable return for investors.
Methodology
To compile our list of the best online savings accounts, we analyzed 20 online savings accounts at banks and credit unions across the country.
Accounts that made the list needed to have these features:
- The deposit account has a competitive APY.
- The account charges few, if any, monthly fees.
- The account has a minimal or $0 minimum deposit requirement.
- The account has a low or $0 minimum balance requirement.
- The bank provides FDIC or NCUA insurance coverage.