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Best Online Savings Accounts - Summary for July 2018


Updated on 7/16/18

Online savings accounts represent one of the best guaranteed options for growing your money, especially if you need to maintain access to cash on short notice. Still, not all online savings accounts are created equal.

We’ve rounded up a list of the best online savings account rates in 2018.

We'll also discuss the following:

We obtained the following rates by searching through our comprehensive Personal Savings Accounts list. We set a deposit amount of $25,000 and only included nationwide banks that do not offer local branches. These are the top results for the best online savings account rates.

Although these are the current best rates, make sure to keep an ear to the wind. As the Federal Reserve raises interest rates, it’s possible that we’ll see further increases in high-yield online savings account rates as well.

The Best Online Savings Account Rates

Rates are current as of July 16, 2018
InstitutionRatesMinimum to openAccount name
Salem Five Direct2.05% (up to $1m), 0.05% ($1m+)$100eOne Savings
Utah First Federal Credit Union2.00% ($50+)$25Dedicated Savings
Citizens Access2.00% ($5k+), 0.25% (Up to $4,999.99)$5,000Online Savings Account
Northpointe Bank1.95% ($25k-$1,000,100), 1.12% (any amount)$0Ultimate Savings
CIBC USA1.90%$1,000CIBC Agility Savings - Online Only
PurePoint Financial1.90% ($10k+), 0.25% (up to $9,999.99)$10,000Online Savings
Incredible Bank1.88% ($25k+), 1.21% ($2.5-$25k)$2,500Incredible Savings
Radius Bank1.86% ($25k+), 1.50% ($2.5k-$24,999.99), 0.05% ($10-$2,499.99)$100Radius High-Yield Savings
ableBanking1.85%$250Money Market Savings
Popular Direct1.85%$5,000Popular Direct Plus Savings Account
ConnectOne Bank1.82% ($2.5k-$1,000,000.99), 1.01% ($1,000,001+)$2,500OneConnection Savings - Online
MutualOne Bank1.81%$0Online Savings
SFGI Direct1.81%$500SFGI Direct Savings Account
Goldman Sachs Bank USA1.80%$0Online Savings
DollarSavingsDirect1.80%$0Dollar Savings Account
Synchrony Bank1.75%$0High Yield Savings
Ally Bank1.75%$0Online Savings Account
Quorum Federal Credit Union1.75%$0HighQ Savings
Sallie Mae Bank1.75%$0High-Yield Savings
Discover Bank1.75%$0Online Savings
American Express Bank, FSB.1.75%$1High Yield Savings Account
FNBO Direct1.75%$1Online Savings
West End Bank, S.B.1.75%$1Online Savings (New Money Only)
Barclays1.75%$0Online Savings Account
HSBC Direct1.70%$0HSBC Direct Savings
Live Oak Bank1.70% (up to $5m)$0Savings Account
Alliant Credit Union1.70% ($100+)$5High-Rate Savings
Community Bank of Pleasant Hill1.66%$0Premier Money Management Account
Community Bank of Raymore1.66%$0Premier Money Management Account
Goldwater Bank1.65%$0Savings Plus Personal
Amalgamated Bank1.60%$0Give-Bank Savings Account (Online Only)
CIT Bank1.55%$100Premier High Yield Savings
SmartyPig1.55%$0SmartyPig Savings
E*TRADE Bank1.50%$100Premium Savings Account
Communitywide Federal Credit Union1.50%$500High Rate - Quarterly
McGraw Hill Federal Credit Union1.45%$100S3 Prime Savings
Bank of Internet USA1.30%$0Smart Savings Account
BankPurely1.30%$1SavingPurely
Nationwide Bank1.30%$25Savings Account
UFB Direct1.30% ($25k+), 0.20% (up to $25k)$100UFB Premium Savings
Amboy Direct1.26% ($3k-$100k), 0.40% ($300-$3k)$100Personal eSavings Account
Colorado Federal Savings Bank1.25%$1High Yield Savings
Hanscom Federal Credit Union1.25%$25,000Higher-Yield Savings
North American Savings Bank1.16% ($15k-$1.49m), 0.10% ($1.5m+)$15kSuper Saver Account
Wings Financial Credit Union1.11% ($50k+), 1.00% ($10k-$50k), 0.10% (Up to $10k)$0High Yield Savings
Digital Federal Credit Union1.06% ($25k+)$0DCU Ltd Savings
Capital One1.00%$0360 Savings Account
iGObanking1.00%$1iGOsavings
MySavingsDirect1.00%$1MySavings Account
Service Credit Union1.00% ($2.5k+), 0.95% (up to $2.5k)$2.5kSTAR Shares

Savings Account Rate History

We're currently above the national average rates we used to see on savings accounts five years ago, when the average interest rate was 0.200% APY. Since then, we’ve experienced an interest-rate desert, with average rates on savings accounts bottoming out at 0.178% APY in November 2016. Today, the figure’s hovering around 0.221% APY. Although the average rates are rising, you can do significantly better at internet-based banks.

Last year, the Federal Open Market Committee (FOMC) raised the Federal Funds Rate three times to reach 1.00-1.50%. This year, the FOMC raised the Federal Funds Rate once to bring the level to 1.50-1.75%. Banks now seem to be picking up steam in raising interest rates, giving us a much-needed reprieve from ultra-low returns of the past few years.

We’ve seen a consistent upward trend in raising interest rates on savings accounts over the past year, with average interest rates consistently going up. They're not anything to write home about, but what is exciting is that it shows banks are willing to play ball now and compete against each other for higher rates — all of which benefits us as consumers.

As a matter of fact, Citizens Access recently created an online savings account, which locked them into a top spot on our list.

Besides the FOMC interest rate hikes, there’s another reason banks like to raise rates. When they raise rates, they attract new customers and, of course, that means more deposits. Banks use those deposits to fund the loans that they give out. They’re willing to pay deposit account customers a bit more on their money. That’s because the higher the bank’s deposits are, the more they can fund lending to other consumers and generate potentially greater returns in the form of interest payments.

If these trends continue, we’ll see even higher rates throughout 2018.

Why Online Savings Accounts Produce Better Yields

If you’re looking to get maximum returns on your money while still keeping it liquid, an online savings account is definitely the way to go. The way these banks offer the highest interest rates is simple: They keep costs elsewhere low because they aren’t paying for expensive staff and brick-and-mortar locations.

Furthermore, online banks typically come with a less heavy fee structure. Rather than being charged for every little ATM transaction or overdraft, a lot of online banks let those “infractions” slide.

In fact, some online banks will even refund some ATM surcharge fees. This results in even more money back in your pocket at the end of the day.

The Difference Between Savings Accounts and CDs

There are different pros and cons to saving money in a savings account versus a CD. In general, CDs offer higher rates than savings accounts, especially for long-term CDs. That means maximum returns for your cash, especially in today’s low-interest savings account environment. Currently, the average interest rate on a five-year CD is 1.88% APY and although the current highest online savings account has an APY of 2.05%, institutions are starting to offer five-year CDs for 3.30% APY.

That might make you think CDs are the wiser decision, but consider this: Your money is locked away when you deposit money into a CD. You can still get it at any time, but you might have to pay a fee for doing so that can chew up your earnings. There are some no-penalty CDs but their rates may be lower.

If you know you might need access to that cash at any time (such as for an emergency fund), it’s better to save in a regular savings account. CDs are better investment tools for money that you can afford to tuck away and not touch until the term has ended.

Related Pages: savings accounts, nationwide deals, Internet banks


The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.