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Free savings accounts give you a place to park money you don't need to access regularly, and they do so without charging fees that would eat into your hard-earned savings. These accounts can be opened in tandem with a checking account—where you keep the money you spend on a day-to-day basis—or they can be opened as stand-alone savings accounts and linked to an outside checking account.
The best free savings accounts should help you work toward your financial goals. This might mean earning a generous interest rate to boost your savings, or offering handy tools to help you save more such as recurring transfers. A bank with a free savings account shouldn't require you to maintain a minimum balance, and it will often have low or no minimum opening deposit requirements. Ideally, they'll come with some extra features that encourage you to budget and save more. Here are the best free savings accounts.
Best Free Savings Accounts of 2024
- Best Overall: Ally Bank Online Savings Account
- Best for High-Yield: Axos Bank High Yield Savings
- Best for ATM Access: Synchrony Bank High Yield Savings
- Best for Long-Term Savings: Betterment Cash Reserve
- Best for Customer Experience: Capital One 360 Performance Savings
Best Overall : Ally Bank Online Savings Account
Ally Bank
- Minimum deposit: $0
- Fees: None
- APY: 4.25%
Ally Bank wins as the best overall free savings account thanks to its high APY, minimal fees, and extra features that help you boost your savings rate.
High APY
No fees or account minimums
Savings boosters and buckets help you increase your savings rate
No ATM card
No physical branches
$20 fee for outgoing domestic wire transfers
Ally Bank's Online Savings Account comes with no minimum opening deposit requirement, no minimum balance requirements, and no monthly service fees. On top of that, you'll earn a generous 4.25% APY to help you build your savings account balance.
Ally Bank has a few unique features that encourage you to increase your savings rate. Rather than having to open multiple accounts for different savings goals, Ally Bank lets you create "savings buckets" within your account that you can nickname and distribute your money across. Their savings boosters include recurring transfers, round-ups, and the ability to link a checking account to let Ally analyze where you have a little wiggle room in your budget to save more.
This bank is fully online, which means they're able to offer products with lower fees and higher returns. However, it also means you won't be able to visit any physical branches. Finally, this savings account doesn't come with an ATM card, but you can open a linked Ally checking account if you want to have immediate access to your savings. Funds kept with Ally Bank are FDIC-insured on up to $250,000.
Read the full Ally Bank review.
Best for High-Yield : Axos Bank High Yield Savings
Axos Bank
- Minimum deposit: $100
- Fees: None
- APY: Up to 0.61%
No other free savings account offers an APY that's this consistently high. Plus, you don't have to maintain a minimum balance to earn it, which is why Axos Bank's High Yield Savings wins for best high-yield.
High APY
No monthly fees or account minimums
Free ATM card upon request
$250 minimum opening deposit
Lower APY on balances of $25,000 or more
No physical branches
If you're looking for high yields on your savings, it's hard to beat 0.61%, so Axos Bank is the best option for high-yield free savings. You don't have to pay any monthly fees or maintain a minimum balance to earn interest, and while there is a minimum opening deposit, $250 is still doable for many. You'll also get a free ATM card upon request so you can access your funds easily.
That said, the APY goes down to 0.25% if your account balance is $25,000 or higher. If you have more than $100,000 in your account, you'll only earn 0.15%. Thus, this account is best for balances below $25,000. Once you've leveled up past $25,000, you can keep additional funds in another savings account or consider other high yield products like a certificate of deposit (CD) or money market account.
Axos is FDIC-insured, so your funds are protected on up to $250,000. This bank is online-only, so it's best for people who are comfortable using online and mobile banking.
Read the full Axos Bank review.
Best for ATM Access : Synchrony Bank High Yield Savings
Synchrony
- Minimum deposit: $0
- Fees: None
- APY: 4.75%
Synchrony Bank has one of very few high-yield savings accounts that come with the option to get a free ATM card. You can use it at Accel's network of 70,000+ surcharge-free ATMs, and you'll even get up to $5 per statement cycle in ATM fee rebates, which is why Synchrony's savings account is the best for ATM access.
High APY
No fees or account minimums
Optional free ATM card
Up to $5 in domestic ATM fee rebates per statement cycle
No checks
No checking account
No physical branches
With Synchrony Bank's savings account, you can opt to get a free ATM card so you have easy, instant access to your funds at all times. You can use one of Accel's 70,000+ surcharge-free ATMs, and if you use an out-of-network ATM once in a while, you'll get up to $5 in domestic ATM fee rebates per statement cycle. These features make Synchrony the right choice for anyone who prioritizes ATM access.
Synchrony Bank doesn't offer any checking accounts, but with the ATM access this savings account offers, you might not need one. You'll also earn a competitive APY regardless of your balance, and the account has no fees and no minimum balance requirements.
Your deposits with Synchrony are FDIC-insured for up to $250,000. This bank is online-only, so it's best for folks who don't need to bank at a physical branch.
Read the full Synchrony Bank review.
Best for Long-Term Savings : Betterment Cash Reserve
- Minimum deposit: $10
- Fees: None
- APY: 4.50%
Betterment has the ultimate set-up when it comes to easily investing your money based on various goals, and you can link up their Cash Reserve savings account to your various investing goals. This allows you to seamlessly transfer funds back and forth between savings and investment accounts, making it ideal if you're saving for the long term.
No fees or account minimums
FDIC insurance on up to $2 million for eligible accounts
Up to five transfers daily between savings and investment accounts
Minimum deposit is $10
No physical branches
If you're looking for a place to park your long-term savings, you'll want to earn a better rate than what most savings accounts can offer. Betterment's Cash Reserve account earns a 4.50% APY, and you can also open investment accounts with Betterment based on various investing goals, such as saving for a house or retirement.
Once you do this, it's easy to transfer money between your savings and various investing goals, which should help you earn more on money that'll stay put for a while. This makes it the best option for anyone looking to stash long-term savings.
You won't have to pay any fees with Betterment, and you can open a Cash Reserve account with as little as $10. You can also be FDIC-insured on up to $2 million, which is substantially more than the standard $250,000. However, this depends on whether your funds are appropriately spread across at least four different Program Banks, each of which offers up to $250,000 in FDIC insurance.
While Betterment doesn't have any brick-and-mortar locations, its mobile app is very user-friendly and makes it easy to complete all your banking and savings tasks from your phone.
Read the full Betterment review.
Best for Customer Experience : Capital One 360 Performance Savings
- Minimum deposit: $0
- Fees: None
- APY: 4.30%
Not only does Capital One offer a 24/7 customer service line, but it also has hundreds of Capital One Cafes across the country where you can get in-person support and even free one-on-one financial coaching. No other online bank or free savings account offers this perk, making Capital One the best choice for customer experience.
High APY
No fees or account minimums
Capital One Cafe branch locations with free money coaching
No ATM card
Capital One Cafes only in major cities
Capital One's 360 Performance Savings account offers the top customer experience of all the best free savings accounts thanks to its combination of 24/7 remote support and a long list of physical branch locations. You can even drop into any Capital One Cafe location to have a coffee and get some free one-on-one financial coaching. You'll get three sessions, and by the end of it, you should have a comprehensive financial plan for your future without having spent a penny.
This savings account also comes with a high APY, no monthly fees, and no minimum balance requirements. You'll get the competitive 4.30% APY regardless of what your balance is. Your funds are FDIC-insured on up to $250,000, and automatic transfers can help you boost your savings rate.
Read the full Capital One review.
Final Verdict
When it comes to the best free savings accounts, you want an account that charges minimal fees while earning a high APY—and ideally, it comes with some extra bells and whistles that encourage you to save more too. Ally Bank's Online Savings Account has all of this, which is why it wins as best overall.
Anyone can open a free savings account with Ally and grow their savings faster thanks to the bank's 1.00% APY and savings boosters like the ability to round up purchases into your savings or have Ally analyze a linked checking account for missed savings opportunities. The online and mobile banking experience is flawless, and you know your money is protected thanks to this account's FDIC insurance.
Compare the Best Free Savings Accounts
| Company | Minimum Deposit | APY | Fees | Maximum Monthly Withdrawals | ATM Access |
|---|---|---|---|---|---|
| Ally Bank
Best Overall |
$0 | 4.25% | None | 6 | 43,000+ Nationwide |
| Axos Bank
Best for High Yield |
$100 | Up to 0.61% | None | 6 | 91,000 Nationwide |
| Synchrony Bank
Best for ATM Access |
$0 | 4.50% | None | 6 | 70,000+ Nationwide |
| Betterment
Best for Long-Term |
$10 | 3.20% | None | No limit | No network, unlimited ATM fee reimbursements for checking |
| Capital One
Best for Customer Experience |
$0 | 4.30% | None | No limit | 70,000+ Nationwide |
How to Choose the Best Free Savings Accounts
The best free savings accounts should make it easier for you to save money. Here are some key features to pay attention to:
- APY: This is the interest you earn on your savings. The higher the APY, the more you'll earn, which will help you pad your savings.
- Opening deposit: Make sure you have enough money for the required opening deposit. For many free savings accounts, this is $0, but some may require $10, $25, or even $250.
- Monthly fees: Avoid savings accounts that charge monthly maintenance fees, even if you can have them waived by maintaining a minimum balance. These fees will eat away at your savings instead of helping them grow.
- ATM access: Some free savings accounts come with an ATM card while others don't. An ATM card isn't a necessary feature if you don't need immediate and easy access to your savings. But without one, you'll need to transfer money from your savings to a checking account to access your funds, and this can take a couple business days.
- Savings boosters: If you want some extra help growing your savings, look for an account that offers savings booster features. This can include recurring automatic transfers, savings buckets, or the ability to round up your purchases and put the change in your savings.
Free Savings Accounts vs. Traditional Savings Accounts
Free savings accounts are often offered by online banks, and they don't charge any monthly fees. On top of that, they often feature a higher interest rate and have lower opening deposit requirements.
Traditional savings accounts are offered by big, national banks and typically charge a monthly maintenance fee to keep the account open. You can often get the fee waived by maintaining a minimum balance, but if your balance dips below that requirement even for a month, you'll be charged a fee. Traditional savings accounts typically offer very low or almost no interest (a 0.01% APY is common) and have higher opening deposit requirements.
In the News
In the News: The Federal Reserve reported that 6% of adults in the U.S. were unbanked in 2022, meaning no one in the household had access to a checking, savings, or money market account. The most common reasons for not having an account include not being able to meet bank minimum deposit requirements and being wary of account fees, so a free savings account can be a significant benefit for those worried about cost.
Pros and Cons of Free Savings Accounts
Low account minimums
No monthly fees
Potentially high APYs
Often no physical branches
Cash deposits may not be available
Other fees may apply
Pros Explained
- Low account minimums: Whereas some banks may require customers to deposit hundreds of dollars to open an account, free savings accounts typically have much lower minimums. Customers can usually open a bank account with as little as $5 or even $0.
- No monthly fees: Monthly account fees are common, and they can chip away at people's savings. Free savings accounts have no monthly account fees (although other fees, like withdrawal fees, may apply).
- Potentially high APYs: Free savings accounts are available from online banks. Without brick-and-mortar branches, they have fewer overhead costs, so they can offer higher annual percentage yields (APYs).
Cons Explained
- Often no physical branches: Online banks can offer low fees and high APYs because they don't have physical branches. If you need in-person assistance or want the option of withdrawing or depositing through a teller, the lack of branches can be a significant drawback.
- Cash deposits may not be available: With some free savings accounts, you can only make deposits electronically. If you typically are paid in cash and need to deposit physical bills, you may not be able to do so with a free savings account.
- Other fees may apply: A free savings account doesn't mean there are no fees at all; it just refers to the lack of a monthly account fee. Other fees are common, including excess withdrawal fees or wire transfer fees.
According to the Federal Reserve Economic Database, the average personal savings rate is 4.1% as of April 2023.
Alternatives to Free Savings Accounts
A free savings account can be a useful and low-cost tool to save money, but there may be other options that provide higher yields or added functionality.
High-Yield Savings Accounts (HYSAs)
If you want your money to grow as much as possible, an HYSA may be a useful alternative to a free savings account. These accounts allow you to earn a significantly higher APY on your savings. And, if you meet monthly balance requirements, the monthly fees may be waived. Check out the best high-yield savings accounts to see how much you could earn.
The rates on savings accounts are not fixed (like a certificate of deposit), so the APY may change over time.
Certificates of Deposit (CDs)
If you want to lock in a higher APY, a CD can help you grow your savings. They typically have higher rates than savings accounts because you commit to leaving your money in the account for a specific length of time. If you withdraw money before the CD's maturity date, you may have to pay early withdrawal penalties. The best CD rates are often above 5% in various terms, giving you many options to choose from.
Money Market Account
Money market accounts are another type of deposit account you can use to grow your savings. These accounts tend to have higher APYs than savings accounts, but they're more flexible and accessible than CDs.
Savings Bonds
Savings bonds are another way to earn a higher yield on your money. Bonds provide a guaranteed rate of interest, and terms can be as long as 30 years.
Interest Checking
Free savings accounts can earn interest, but the bank or credit union may limit how often you can withdraw money from the account. If you want an account that earns interest and allows you to make withdrawals whenever you want, a high-yield checking account could be a good choice.
Frequently Asked Questions
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Are Free Savings Accounts FDIC-Insured?
Free savings accounts are FDIC-insured, usually on up to $250,000. While this is the standard, some online banks are able to offer a higher level of FDIC insurance by spreading your funds across multiple program banks. For example, if they have your $1 million balance spread equally across four program banks that are each FDIC-insured on up to $250,000, you might be able to get your full $1 million insured.
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Do Free Savings Accounts Offer High Yields?
Free savings accounts tend to offer higher yields than traditional savings accounts. There are plenty of free savings accounts offering a 0.40% to 0.50% APY, while traditional savings accounts might only offer around 0.08%
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Do Free Savings Accounts Offer ATM Access?
Some free savings accounts offer ATM access, but not all. If a free savings account doesn't offer an ATM card, you can usually open a checking account with that same bank for ATM access.
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What Is the Best Tax-Free Savings Account?
Typical bank savings accounts, including free savings accounts and HYSAs, are not tax-free. The interest you earn on your savings account is taxable as income.
If you're looking for a tax-free way to save for future goals, consider opening a Roth IRA or Health Savings Account instead.
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Which Banks Have Free Savings Accounts?
Many banks and credit unions, particularly online banks, offer free savings accounts. Some of the best options include:
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Is There a 5% Savings Account?
It is possible to find a savings account with an APY as high as 5.00%. As of June 2023, we found several banks that offer that rate. However, rates can change over time. If you want to lock in a specific rate, you may want to consider other options, such as CDs.
Methodology
We considered more than 20 free savings accounts, mostly offered by online banks and credit unions, when researching this list. To narrow it down to the best free savings accounts, we looked for those with the lowest fees and highest rates as well as any extras that could help consumers save more.
We only considered genuinely free savings accounts, which means any account that charged a monthly maintenance fee was automatically off the list, even if it was waivable. Keeping your funds protected is also important, so we only included savings accounts that are FDIC-insured (or NCUA-insured for credit unions).
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