Best Online Savings Accounts For Earning High-Yield Profits

These online savings accounts are worth taking a look at.

If your savings account is earning pennies every month from your traditional bank’s annual percentage yield, you should consider an online savings account as an alternative savings builder. With a growing number of online banks offering high rates, even big banks are jumping on to this banking product.

It pays to check out the high yields from the best online savings accounts and look into which financial institution has what you are looking for in a savings account. Keep reading to see the banks included in this in-depth review.

Best High-Yield Online Savings Accounts at a Glance

A high-yield savings account is like a traditional savings account but it earns interest at a higher rate. For instance, a high-yield savings account at Discover Bank has a current APY of 1.80% while Bank of America’s savings accounts have an APY that ranges from 0.03% to 0.06%, depending on your account balance.

When searching for the best online savings account, explore all the account offers before signing up for anything. Monthly service fees, mobile app access and customer service options are all pieces of information worth examining.

The Best Online High-Yield Savings Accounts of 2019 at a Glance
BankOnline Savings AccountAnnual Percentage Yield (APY)Monthly FeeCustomer ServiceMobile App
CIT BankSavings Builder2.10% NoOnline and mobile banking or 24/7 automated telephone bakingYes
Synchrony BankHigh Yield Savings2.20% NoChat online, over the phone or send a letterYes
BarclaysOnline Savings Account1.90% NoPhone service, self-service, mobile app, Twitter or send a letterYes
Ally BankOnline Savings Account1.70% NoPhone service, online chat or emailYes
American Express® National Bank, Member FDICHigh Yield Savings Account1.75%NoOnline or over the phoneYes
DiscoverOnline Savings Account1.80% NoOver the phoneYes
FNBO DirectOnline Savings Account1.80% NoEmail, over the phone, fax or send a letterYes
iGOBankingHigh Interest Savings Account1.80% NoOver the phone or emailYes
Bank5 ConnectHigh-Interest Savings Account1.85% $1/paper statement, $0/ eStatementOver the phone, online chat or send an online contact formYes
Capital One360 Performance Savings1.80% NoOver the phone, social media or online chatYes
Brio DirectHigh-Yield Savings2.20%NoOver the phone or by mailYes
TAB BankHigh-Yield Savings2.10%NoOver the phone or online queryYes
Vio BankHigh-Yield Savings Account2.07%NoOver the phone, email or mailYes
CIBC USAgility Online Savings Account1.85%NoOver the phone or mailYes
HSBCDirect Savings0.01% NoOver the phone, online/mobile banking or live chat assistanceYes
Quontic BankHigh-Yield Savings1.85%NoOver the phone, live chat or emailYes
Purepoint FinancialOnline Savings1.80%NoOver the phone, email or in personYes
Comenity DirectHigh-Yield Savings2.00%NoOver the phone or emailYes
My Savings DirectHigh Interest Savings Account2.00%NoOver the phone, email or mailNo
Marcus by Goldman SachsHigh-Yield Savings1.70%NoOver the phoneNo
Citizens AccessOnline Savings Account1.85%NoOver the phone or emailNo
CitibankCiti Accelerate Savings0.04%, but the rate grows along with your balance$4.50Over the phone, chat assistance, mobile app, mail or visit in personYes

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Best High-Yield Online Savings Accounts of 2019-2020

With comparable monthly service fees and APY rates, it may be hard to figure out which online savings account is best for you. However, other details of high-interest savings accounts are signposts that will help direct you toward your right financial path.

CIT Bank

Why We Like It: This account is FDIC-insured and you can earn the 2.10% APY with either a Monthly Savers or High Balance Savers account. Both options allow you more control over your compound interest.

Benefits

  • High interest rate of 2.10% APY
  • Easy online access

Drawbacks

  • Minimum account balance of $25,000 required to earn the highest interest rates
  • $100 minimum to open a Monthly Savers account

Specs

  • Fees: No monthly service fee, but a $10 fee for accounts with a minimum balance lower than $25,000
  • Minimum Deposit: $100 for Monthly Savers or Savings Builder account
  • Minimum Balance: $25,000 minimum balance to earn the highest interest rate
  • Balance To Avoid Fees: $25,000
  • APY: 2.10% 

How To Open an Account: To open one of CIT Bank’s Savings Builder accounts, start by creating an account online using your primary home address, a valid email address, phone number and your Social Security number.

Know the Difference: Money Market Account vs. Savings Account

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Synchrony Bank

Why We Like It: You can earn a high interest of 2.20% APY. This account is completely online or on your mobile app, which is a safe and easy way to deposit checks, transfer funds and update your account balances.

Benefits

  • The APY applies to any account balance
  • Access to cash with a trip to the ATM

Drawbacks

  •  No physical branch for you to visit for your banking

Specs

  • Fees: You are responsible for ATM transaction fees after the monthly $5 reimbursement
  • Minimum Deposit: No minimum deposit
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fees: $0
  • APY: 2.20%

How To Open an Account: If you aren’t already a Synchrony customer, jump online and fill out a general application for its High Yield Savings account. If you are a Synchrony banker, simply log in and follow the steps.

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Barclays

Why We Like It: The 1.90% APY account allows direct deposits and online transfers between outside banks. You can access your funds online and on the mobile app 24/7.

Benefits

  • No minimum balances or deposit required to open the account

Drawback

  • This bank is online-only in the U.S.

Specs

  • Fees: No monthly service fee
  • Minimum Deposit: No minimum deposit
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fees: No fees to avoid
  • APY: 1.90%

How To Open an Account: Aside from your personal information, you will need to supply an external bank name, routing and account numbers as your initial deposit will be transferred from an existing external bank account.

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Ally Bank

Why We Like It: This account has no monthly maintenance fees, free official and cashier’s checks and free domestic and international incoming wires.

Benefits

  • You receive an ATM card attached to your account
  • Easy 24/7 customer support

Drawback

  • No physical branch to do your banking

Specs

  • Fees: No monthly maintenance fee
  • Minimum Deposit: No minimum deposit
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fees: No fees to avoid
  • APY: 1.70%

How To Open an Account: To enjoy the perks of Ally Bank’s Online Savings Account, start by giving some personal details like your address, contact information and Social Security number.

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American Express® National Bank, Member FDIC

Why We Like It: American Express’ High Yield Savings allows recurring bank transfers to pay for different accounts. This account has a competitive 1.75% APY rate, as of Nov. 27, 2019, and is easier to open if you have another American Express account.

Benefits

  • There are no minimum deposits
  • No monthly fees

Drawbacks

  •  American Express has no physical branch to do your banking

Specs

  • Fees: No monthly fees
  • Minimum Deposit: No minimum deposit
  • Minimum Balance: No minimum needed
  • Balance To Avoid Fees: No fees to avoid
  • APY: 1.75%, as of Nov. 27, 2019

How To Open an Account: Gather your personal information, bank account number and routing number before completing a quick application online. If you’re opening a joint account, you’ll need the other account holder’s personal info, including their Social Security number.

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Discover Bank

Why We Like It: Discover’s account has 1.80% APY with daily compounded interest that is paid out monthly. There are no monthly maintenance fees, insufficient fund fees or excessive withdrawal fees.

Benefits

Drawbacks

  • No physical branches to do your banking

Specs

  • Fees: No monthly maintenance fees or any other fees
  • Minimum Deposit: No minimum deposit
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fees: No fees to avoid
  • APY: 1.80%

How To Open an Account: Basic personal information and your Social Security number or Taxpayer ID is all you need to start your Discover Online Savings Account application. After you receive an email confirmation, you can fund the account.

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FNBO Direct

Why We Like It: This savings account offers direct deposit and digital payments. FNBO Direct also offers its Zelle equivalent, Popmoney, which is a way to transfer money to others.

Benefits

  • You can receive one of the highest APY rates
  • Online and mobile banking

Drawbacks

  • No physical branch to do your banking

Specs

  • Fees: No monthly fees
  • Minimum Deposit: $1
  • Minimum Balance: $1
  • Balance To Avoid Fees: No fees to avoid
  • APY: 1.80%

How To Open an Account: FNBO Direct requires a few pieces of information to open an individual or joint Online Savings Account. These include your Social Security or Tax ID number, a driver’s license or ID card issued by a state DMV and employment, loan or mortgage and existing banking information.

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iGOBanking

Why We Like It: This online savings account is clear and simple. There are no minimums to maintain and no monthly fees. And it only takes about 10 minutes to open this account online.

Benefits

  • No fees
  • No minimums

Drawback

  • There are no physical branches to do your banking

Specs

  • Fees: No monthly fees
  • Minimum Deposit: No minimum deposit
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fees: No fees to avoid
  • APY: 1.80% 

How To Open an Account: When you’re ready to open your high-interest savings account at iGObanking.com, you’ll just have to answer a few questions and then you can start transferring funds. A valid form of identification — a driver’s license, state-issued ID, military ID or passport — is required.

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Bank5 Connect

Why We Like It: It has a strong APY of 1.85% and your savings can be used to cover an overdraft in your checking account.

Benefits

  • Good APY
  • Can get the fee waived

Drawbacks

  • There is a fee to receive your statements by mail

Specs

  • Fees: $1/statement
  • Minimum Deposit: $0
  • Minimum Balance: $0, but $100 to earn APY
  • Balance To Avoid Fees: Fee can be avoided by receiving eStatements
  • APY: 1.85%

How To Open an Account: It only takes about 10 minutes to complete Bank5 Connect’s High-Interest Savings Account application. Standard personal ID and banking information is all you’ll need to start.

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Capital One

Why We Like It: The 360 Performance Savings account has a high APY of 1.80%. The account also requires no minimums and has no monthly fees.

Benefits

  • All account balances have an interest rate of 1.80%
  • Open an account online in about 5 minutes

Drawbacks 

  • No comparative drawbacks because Capital One has branch locations and Capital One Cafes.

Specs

  • Fees: No monthly service fees
  • Minimum Deposit: No minimum deposit
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fee: No fees to avoid
  • APY: 1.80%

How To Open an Account: 360 Performance Savings accounts do not have debit cards, ATM cards or check-writing capabilities but that doesn’t mean they aren’t worth your while. To enjoy the perks of the 360 Performance, register as a new customer or log in with your existing Capital One account info.

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Brio Direct

Why We Like It: This High-Yield Savings account has a high APY of 2.20%. The online account also has no monthly fees and takes minutes to open.

Benefits

  • Online and mobile banking available
  • One of the highest APY rates around

Drawbacks

  • $25 to open the account
  • No physical branches to visit

Specs

  • Fees: No monthly service fees
  • Minimum Deposit: $25
  • Minimum Balance: $25
  • Balance To Avoid Fee: No fees to avoid
  • APY: 2.20%

How To Open an Account: A Brio Direct High-Yield Savings account can be opened in just a few minutes. All you need is your contact information, a driver’s license, passport or state ID card and your Social Security number.

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TAB Bank

Why We Like It: This account has a nice APY rate of 2.10% with no balance caps or monthly service fees.

Benefits

  • No opening deposit required
  • Online and mobile banking available

Drawbacks

  • No physical branches to visit

Specs

  • Fees: No monthly service fees
  • Minimum Deposit: No minimum deposit
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fee: No fees to avoid
  • APY: 2.10%

How To Open an Account: To start enjoying TAB’s impressive APY rate, check out its streamlined application process online. Basic personal information and your Social Security number are required to take your first step to high-yield savings.

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Vio Bank

Why We Like It: This account has a high APY of 2.07% with no monthly service fees.

Benefits

  • Online and mobile banking available

Drawbacks

  • $100 to open the account
  • No physical branches to visit

Specs

  • Fees: No monthly service fees
  • Minimum Deposit: $100
  • Minimum Balance: $100
  • Balance To Avoid Fee: No fees to avoid
  • APY: 2.07%

How To Open an Account: You can open a new account online in less than five minutes — all you’ll need to start is your Social Security number, driver’s license and mailing address. Please note that automated information is available 24/7 but customer service representatives are only available during scheduled working hours.

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CIBC US

Why We Like It: The Agility Online Savings Account has a 1.85% APY with no maintenance fees.

Benefits

  • Online and mobile banking available

Drawbacks

  • You need $1,000 to open the account
  • The account balance cannot be over $1 million

Specs

  • Fees: No monthly service fees
  • Minimum Deposit: $1,000
  • Minimum Balance: $1,000
  • Balance To Avoid Fee: No fees to avoid
  • APY: 1.85%

How To Open an Account: The Agility Savings Account can be opened easily — you’ll need to provide a current U.S. home address, a Social Security number, a U.S. driver’s license or state-issued identification, the joint owner’s information if applicable and a minimum $1,000 deposit.

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HSBC

Why We Like It: HSBC Direct Savings has an APY of 0.01% with no monthly fee.

Benefits

  • Only $1 to open the account
  • Online and mobile banking

Drawbacks

  • No physical bank to visit

Specs

  • Fees: No monthly service fees
  • Minimum Deposit: $1
  • Minimum Balance: $1
  • Balance To Avoid Fee: No fees to avoid
  • APY: 0.01%

How To Open an Account: You can open a Direct Savings Account with HSBC if you are a legal adult with a Social Security number, a valid U.S. ID (driver’s license, non-driver identification card or learner permit), passport or permanent residential card/green card; have a current U.S. residential address plus U.S. residential history for the past two years; and can give banking information to fund your new account.

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Quontic Bank

Why We Like It: Quontic Bank offers an online savings account with 1.85% APY and over 90,000 fee-free ATMs.

Benefits

  • Option of opening an Amplify Interest Checking Account when opening this savings account
  • Online and mobile banking

Drawbacks

  • $500 minimum to open the account
  • No physical banks

Specs

  • Fees: No monthly service fees if you maintain an average daily balance of $10,000+
  • Minimum Deposit: $500
  • Minimum Balance: $500
  • Balance To Avoid Fee: $10,000+
  • APY: 1.85%

How To Open an Account: A $500 minimum deposit is required to open an online savings account with Quontic, but the application process is easy. You’ll need your Social Security number, a driver’s license, military ID or U.S. passport, along with a home address and personal information. 

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Purepoint Financial

Why We Like It: Purepoint Financial’s Online Savings account offers an APY of 1.80% with no monthly account fees.

Benefits

  • 24/7 online and mobile access

Drawbacks

  • Check Purepoint’s website carefully; the 1.80% APY is only available if you have an account balance of $10,000 (it is 0.25% APY for anything lower than $10,000)

Specs

  • Fees: No monthly service fee
  • Minimum Deposit: $10,000
  • Minimum Balance: No minimum balance but see APY note above
  • Balance To Avoid Fee: No fees to avoid
  • APY: 1.80% for balances over $10,000

How To Open an Account: APY rates are valid for accounts opened online or by phone. A valid email address and online banking enrollment are required to open and maintain an account.

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Comenity Direct

Why We Like It: This High-Yield Savings Account has an APY 0f 2.00% with no hidden fees or monthly service fees

Benefits

  • Free ACH transfers
  • Free online statements

Drawbacks

  • $100 to open an account

Specs

  • Fees: No monthly service fee
  • Minimum Deposit: $100
  • Minimum Balance: $100
  • Balance To Avoid Fee: No fees to avoid
  • APY: 2.00%

How To Open an Account: You can enjoy the benefits of this High-Yield Savings Account in three simple steps: 1. Fill out a quick application online with some basic information and funding details. 2. Transfer $100 or more into your account. 3. Start saving.

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My Savings Direct

Why We Like It: This account has an APY of 2.00% with no minimums and no fees.

Benefits

  • You can link your MySavings Account to your current checking account
  • Quickly and easily complete your application online

Drawbacks

  • No physical branches to visit

Specs

  • Fees: No monthly service fee
  • Minimum Deposit: No minimum deposits
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fee: No fees to avoid
  • APY: 2.00%

How To Open an Account: The only requirements needed to open a MySavings Account are that you are at least 18 years old, have a valid tax identification number, a legal address and a personal checking account in a U.S. bank. 

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Marcus by Goldman Sachs

Why We Like It: Marcus is the online/mobile banking option by Goldman Sachs and offers an APY of 1.70% with no fees or minimum deposits.

Benefits

  • No fees
  • Account can be linked to other bank accounts

Drawbacks

  • No physical branches to visit for this account

Specs

  • Fees: No monthly service fee
  • Minimum Deposit: No minimum deposits
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fee: No fees to avoid
  • APY: 1.70%

How To Open an Account: The Marcus Account online application process is secure and fast. You will need to provide your personal information and Social Security number before you can start transferring funds by linking your account to another bank.

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Citizens Access

Why We Like It: Citizens Access offers an online savings account with 1.85% APY and no fees.

Benefits

  • Online and mobile banking
  • No fees

Drawbacks

  • $5,000 minimum deposit to open the account

Specs

  • Fees: No monthly service fee
  • Minimum Deposit: $5,000
  • Minimum Balance: $5,000
  • Balance To Avoid Fee: No fees to avoid
  • APY: 1.85% 

How To Open an Account: Start by selecting the Citizens Access Online Savings Account from the product drop-down list and choose a deposit amount. Then you are just a few steps away from funding your new account.

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Citibank

Why We Like It: Citi Accelerate Savings is one of the highest-interest products that Citibank offers. It can be attached to any of its banking tiers.

Benefits

  • You can link your savings account to your Citibank Checking Account at any tier

Drawbacks

  • This high-yield offering isn’t available in every state

Specs

  • Fees: Depends on your specific account balance within the banking package tier
  • Minimum Deposit: No minimum deposit
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fee: Depends on your specific account balance within the banking package tier
  • APY: 0.04%

How To Open an Account: You’ll first need to enter your ZIP code to confirm Citi Accelerate is an option for you. Because the savings option depends on choosing a banking tier, this account’s application may take a few extra minutes to navigate on Citibank’s website. Prepare to provide the usual personal and identification information.

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Tips for Choosing the Best High-Yield Savings Accounts

Important things to consider when opening a high-yield savings account are how much you plan to deposit, how easy it is to move money in and out of the account and how you like to do your banking.

Tips to remember:

  • Remember to peruse GOBankingRates’ best bank account promotions.
  • Review your account balance and see what is the highest APY you can get with that balance.
  • Find an online savings account with a linked ATM card if you need access to cash.
  • If you like in-person banking, open an account with a bank or credit union that has physical branches nearby.

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High-Yield Savings Accounts vs. Traditional Savings Accounts

High-yield savings accounts offer higher APY rates than traditional savings accounts. The biggest difference to keep in mind is that APY interest is compounded daily and then paid into your account monthly with high-yield savings accounts, whereas with traditional savings accounts, the interest is earned on the monthly rate.

There are advantages and disadvantages to consider with online savings accounts.

Advantages of a High-Yield Savings Account

  • You’ll earn more in interest and, thanks to compound interest, your savings will grow faster compared to a traditional savings account.
  • Online high-yield savings accounts have fewer fees because there is less overhead for a bank or credit union to cover.
  • Online savings are typically less accessible than your typical online checking account. Following the “out of sight, out of mind” maxim, you’ll be less tempted to tap your online savings for impulse purchases. 

Disadvantages of a High-Yield Savings Account

  • High-yield online savings accounts aren’t perfect for people who make a lot of withdrawals and deposits to and from their accounts. Most online savings accounts require funds to be transferred in and out of these accounts, which can take up to two days.
  • High-yield savings accounts are not ideal for anyone without easy and consistent access to computers or mobile devices. These are online accounts, so banking at a physical branch is typically not possible.

Earn More: Learn How To Open an Online Savings Account

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Summary

The best high-yield savings accounts are from online (or primarily online) banks that offer a high APY rate of around 1.75%-1.90%. You can easily open one of the best online savings accounts in minutes online and start saving with your first deposit.

While interest earned is taxable because it is considered income by the IRS, you should still seriously consider taking advantage of the multiple benefits from these accounts.

Consider the Best: Find Out What Countries Offer The Best Interest Rates

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FAQ

What is an online high-yield savings account?

  • An online high-yield savings account is a banking product that works like a traditional savings account but offers higher interest. The banks that typically offer this higher interest are online-only or the online division of a traditional bank. They can afford to offer higher rates because they have lower overhead.

Is my money safe in an online savings account?

  • The best way to ensure safety is to check if the online savings account is FDIC-insured. The Federal Deposit Insurance Corporation insures deposits up to $250,000.

How does an online savings account work?

  • It works very similarly to a savings account, except that it is accessible online. You can deposit money into this account but there is usually a limit to six free transfers or withdrawals per month.

Should I get an online savings account?

  • An online savings account is a product worth considering. Fee-free savings accounts with high APYs make your money grow faster. Remember that your earnings will be taxed. The tax is not high because the earnings aren’t enormous but it is still higher than a traditional savings account.

Can I open an online savings account with no money?

  • Yes. Seek the online savings accounts that do not require minimum deposits. However, you will not earn any interest on $0, so do not expect to earn any money until you deposit funds.

What makes a savings account a high-yield savings account?

  • A savings account is a high-yield savings account when its APY is much higher than the average savings account APY — currently 0.09%, according to the FDIC. Look for an APY rate higher than 1.50% when choosing a high-yield savings account.

Why are some bank interest rates higher than others?

  • Depending on monthly service fees and deposit minimums, some financial institutions can offer higher interest rates than others. Another thing to consider is the bank or credit union itself; if it is an online bank, the rates can be higher because of the significant overhead attached to traditional brick-and-mortar bank branches.

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GOBankingRates’ Best Banks Rankings

Each year GOBankingRates evaluates over 120 banks and their banking products to help you find the ideal bank for your needs. Check out the detailed rankings below.

More From GOBankingRates

Rates and fees are subject to change. All other data is accurate as of Nov. 26, 2019. All data is subject to change at the institutions’ discretion.

Methodology: GOBankingRates.com identified the best online savings accounts based on interest rates, monthly fees, customer service options, mobile banking and online banking offerings. All fees and rates are subject to change at the savings account issuers’ discretion. Some offers might no longer be available on the saving account issuers’ websites, depending on how you access the web page.

Editorial Note: This content is not provided by American Express. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been endorsed by American Express.

About the Author

Jared Nigro is from Pittsburgh, which is obvious by the way he gravitates toward cheese at parties. He is a comedy writer from The Groundlings Sunday Company, Upright Citizens Brigade and has his own digital show on Comedy Central called “Broken People.” When he isn’t being funny, he’s reading books on debt and finance and listening to his favorite finance podcast, ChooseFI.