Best Free Savings Accounts Of March 2024 – Forbes Advisor – Technologist

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The best no-fee savings accounts have no monthly maintenance fee and offer beneficial features that help customers manage and maximize savings. These accounts generally offer highly rated mobile apps and top-notch customer service. When banks promote having no fees, typically, they’re referring to having no monthly maintenance fee and low charges for transactions like wire transfers, excessive withdrawals and other account services.

Best Free Savings Accounts

We’ve compared 73 online savings accounts at 53 nationally available banks and credit unions to find some of the best accounts available. See below to learn more about why we picked each account, the pros and cons, and to access individual bank reviews.

Annual percentage yields (APYs) and account details are accurate as of March 1, 2024.

Best Overall

Varo Savings Account

Minimum Deposit Requirement

Varo Savings Account

Why We Picked It

In 2020, Varo became the first U.S. consumer fintech company to receive a national bank charter, allowing it to offer FDIC insurance and expand its banking services.

Varo Bank pays 3.00% APY without charging a monthly fee and up to 5.00% APY by meeting specific requirements each month. You can learn how to earn the 5.00% APY in Details below.

This account charges no monthly fees or minimum balance requirements. It also comes with automated savings tools, including Save Your Change and Save Your Pay, to help make saving easier.

Plus, Varo gets excellent customer service ratings. It has a robust FAQ section on its website that addresses a number of common issues. Customers can also email support directly or call to speak with a representative seven days a week. And the bank’s mobile app is highly rated.

Read our fullVaro Bank Review.

Pros & Cons

  • 5.00% APY on balances up to $5,000
  • Automatic savings tools
  • No fees or minimum balance requirements
  • 5.00% APY only applies to first $5,000 in your account
  • Must open Varo checking account first
  • No 24/7 customer service

Details

In order to have a Varo Savings Account, you also must have a Varo Bank Account, which is an online checking account. Interest on the Varo Savings Account is compounded daily and credited monthly.

To earn 5.00% APY, customers must receive total direct deposits of $1,000 or more within each qualifying period, maintain a daily savings account balance of $5,000 or less for the entire calendar month and maintain balances above or equal to $0.00 in both savings and bank accounts for the entire calendar month.

Expert Take

Our experts picked the Varo Savings Account because it offers one of the highest APYs on the market if you can meet its monthly requirements (see Details). The account also requires no minimum deposit, no minimum balance and carries no monthly fee.

Best for No Fees

Sallie Mae Bank SmartyPig Account

Sallie Mae Bank SmartyPig Account

Minimum Deposit Requirement

Sallie Mae Bank SmartyPig Account

Why We Picked It

Along with offering a competitive APY, the SmartyPig online savings account from Sallie Mae provides savers with tools to create and track savings progress for specific goals—just like an online piggy bank.

It doesn’t require a minimum deposit or ongoing balance, and it doesn’t charge a monthly fee.

Read our full Sallie Mae Bank Review.

Pros & Cons

  • No monthly maintenance fee
  • Excellent digital experience to manage the account
  • Competitive tiered interest rate structure
  • Interest compounds daily
  • No physical branches
  • Customer service is only available Monday through Friday

Details

The SmartyPig account pays 4.25% APY on balances from $0.01 to $10,000, 4.25% APY on balances from $10,000.01 to $50,000 and 4.25% APY on balances greater than $50,000 APY on all balances. Interest is compounded daily and credited monthly.

Expert Take

Our experts picked Sallie Mae’s SmartyPig Account because it keeps fees to a minimum. Many no-fee banks waive common fees like monthly maintenance fees, excessive transaction fees and inactivity fees but still charge some lesser-known fees when you search through the terms and conditions. That doesn’t seem to be the case with Sallie Mae. The fee section of the account agreement even states, “The SmartyPig Account comes with No Fees!”

Best for Same-Day Transfers

Marcus by Goldman Sachs High-Yield Online Savings Account

Marcus by Goldman Sachs High-Yield Online Savings Account

Minimum Deposit Requirement

Marcus by Goldman Sachs High-Yield Online Savings Account

Why We Picked It

Marcus offers an attractive APY on its high-yield Online Savings Account with no minimum deposit requirement to open an account. There are no monthly fees or fees for domestic wire transfers. And it allows for same-day transfers of $100,000 or less to or from other banks.

Since it’s an online bank, Marcus doesn’t have a branch network, but customers can access their account via the bank’s website, mobile app and phone.

Read our full Marcus By Goldman Sachs Review.

Pros & Cons

  • No monthly fees
  • No minimum deposit requirement
  • Competitive rate
  • Mobile and online access 24/7
  • No physical locations
  • No mobile check deposit

Details

Interest is compounded daily and credited monthly. You can link your other bank accounts and transfer money in. You must fund your account within 60 days of opening. You must be 18 years old or older to open this account.

Expert Take

Our experts ranked the Marcus by Goldman Sachs High-Yield Online Savings Account highly because it allows same-day transfers from other financial institutions up to $100,000. It also carries no monthly fee and charges relatively few other fees.

Best for Mobile Banking

Discover® Bank Online Savings Account

Discover® Bank Online Savings Account

Minimum Deposit Requirement

Discover® Bank Online Savings Account

Why We Picked It

Charging few fees is a staple of Discover’s banking business model, and its online savings account is no exception. The account doesn’t charge fees for monthly maintenance, insufficient funds, account closure, official bank checks, excessive withdrawals and a host of other transactions that other banks may charge.

Along with few fees, the account earns 4.30% APY on all balances and carries no minimum balance requirement. Through Discover’s highly rated mobile app, customers can deposit checks, transfer money and access a host of other features. There’s even an option to quickly view account balances without logging into the app.

Read our full Discover Bank Review.

Pros & Cons

  • No fees
  • Competitive APY
  • Customer service is available 24/7
  • Excellent digital banking tools
  • There are accounts with higher APYs
  • No physical locations

Details

Interest is compounded daily and credited monthly. Discover Bank is not enforcing limits on certain types of transactions per month, as is typically done with savings accounts.

Expert Take

Our experts liked the Discover® Bank Online Savings Account because it makes banking easy, on top of other great features. Through Discover’s highly rated mobile app, customers can deposit checks, transfer money and access a host of other features. There’s even an option to quickly view account balances without logging into the app.

Best for ATM Reimbursements

Synchrony Bank High Yield Savings

Synchrony Bank High Yield Savings

Minimum Deposit Requirement

Synchrony Bank High Yield Savings

Why We Picked It

Synchrony Bank’s High Yield Savings account has very few fees and a very competitive 4.75% APY. The optional ATM card comes with access to ATMs that display the Plus or Accel logos in the U.S. or abroad, allowing you to withdraw your cash easily around the globe. The bank reimburses up to $5 per month for domestic out-of-network ATM charges, although it doesn’t reimburse for conversion fees or access fees charged by ATMs overseas. Withdrawals made at ATMs do not count toward your monthly transaction limit (see Details).

You can also make electronic transfers to and from accounts at Synchrony and other banks and make wire transfers.

There’s no minimum balance requirement to open the account, nor is there a monthly fee.

Read our full Synchrony Bank Review.

Pros & Cons

  • No monthly fee and few other fees
  • ATM fee reimbursement for charges from other banks
  • Competitive APY
  • Highly rated mobile app
  • No surcharge-free ATM network
  • No physical locations

Details

Interest is compounded daily and credited monthly. You must be 18 years old or older to open this account.

Expert Take

Our experts picked the Synchrony Bank High Yield Savings account because of its competitive APY and ATM reimbursements. The account offers an optional ATM card if desired. Synchrony Bank doesn’t charge ATM fees at any ATM displaying the Plus or Accel logos, but the ATM owner may charge a fee. Synchrony reimburses customers up to $5 per statement period for U.S. ATM fees charged by other financial institutions.

Summary: Best Free Savings Accounts Of 2024

Methodology

The accounts on this list keep fees to a minimum overall. These accounts don’t charge a monthly maintenance fee, or if they do, they provide the ability to waive the monthly fee easily. They also keep other fees low, like excess transaction and wire transfer fees.

To create a list of the best savings accounts, Forbes Advisor analyzed 73 online savings accounts at 53 financial institutions, including a mix of traditional brick-and-mortar banks, online banks, and credit unions. We ranked each account on 12 data points within the categories of APY, fees, minimum requirements, customer experience, digital experience and availability. All of the accounts on our list are online-based accounts.

Here’s the weighting assigned to each category for no-fee savings accounts:

  • Fees: 60%
  • APY: 10%
  • Minimums: 10%
  • Customer experience: 10%
  • Digital experience: 10%

We also considered whether there were complex tier structures or requirements to earn the APY or other stipulations to earn the APY. Minimum deposit requirements of $10,000 or higher affected scores negatively, as did high minimum balance requirements to avoid fees. To appear on this list, the online savings account must be nationally available.

To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.

Complete Guide on Free Savings Accounts

What Is a No-Fee Savings Account?

A no-fee savings account refers to a savings account that doesn’t charge a monthly maintenance fee—or offers simple ways to waive those fees—and keeps other fees minimal.

Banks often charge a fee to maintain or service accounts each month. A savings account is designed to build up savings, and paying a fee cuts into how much interest you may earn, so a no-fee savings account is ideal.

Some banks that charge a monthly fee will waive the charge if you meet specific requirements, like maintaining a minimum balance or setting up direct deposits. Even banks that promote free or no-fee savings accounts may charge fees for certain types of transactions like wire transfers. Review an account’s fee schedule before opening an account to determine which fees you may have to pay.

Regular Savings Account Fees

Besides monthly maintenance fees, banks often charge customers fees for other reasons. Some of these fees are more common than others, and amounts may vary depending on the financial institution. Here are some savings account fees your bank may charge:

Pros and Cons of Free Savings Accounts

Free savings accounts can be more affordable and accessible, but they can also come with potential disadvantages. Consider these pros and cons before opening a free savings account.

Pros

  • No or low fees. Free savings accounts charge no monthly fees for account management and often eliminate other common banking fees like overdraft and ATM fees.
  • Low account minimums. Banks often couple no fees with no minimum opening deposit and ongoing balance requirements.
  • Competitive APYs. The online banks that offer many of the best free savings accounts have fewer overhead costs than brick-and-mortar banks and generally offer higher, more competitive APYs.

Cons

  • No bank branches. Free savings accounts may not offer the option to bank in person, since many are available through online banks.
  • Limited deposit options. Your options for depositing funds into a savings account at an online bank may be limited. Many online savings accounts don’t allow cash deposits.
  • Other bank fees. Free savings accounts don’t carry monthly service fees but may charge fees on certain transactions.

Traditional Savings Account vs. Free Savings Account

The primary difference between a traditional savings account and a free savings account is that a traditional savings account typically charges a monthly maintenance fee, while a free savings account doesn’t. Because free savings accounts are typically offered by online banks, there may be other differences.

Here’s a look at how they compare. Keep in mind that banks and credit unions vary in product offerings, account features and fee structures, so there may be traditional and free savings accounts that fall outside of the norm.

How To Choose a Free Savings Account

Finding the best no-fee savings account can help you save money in fees, leaving more of your savings to grow through interest-earning. Knowing what to look for—and your specific financial goals—can help narrow down your search. Here are some factors to consider:

Pro Tip

These days, banks and credit unions offer many features and tools—like digital banking, roundups, and savings buckets—to help customers manage their money and automate their finances. Find a bank that offers features that will help you the most.

How To Open a Free Savings Account

Opening a free savings account online typically only takes a few minutes. The application process may look different depending on the bank, but it will generally include the following steps:

  • Choose an account. Shop around to find a free savings account that earns competitive interest and meets your banking needs.
  • Submit an application online. Many banks allow you to open a savings account online, although some may require a visit to a local branch to apply. Banks will ask you to supply personal information to verify your identity.
  • Fund your account. If the bank requires a minimum opening deposit with application approval, you’ll need to link another bank account to fund your account.

Unlike credit cards, banks don’t perform a credit check when you apply for a bank account. You’ll still need to provide certain personal information and documentation to verify your identity and ensure you qualify for the account.

Depending on the bank, you may be required to provide the following information:

  • Full name
  • Physical address
  • Contact information
  • Social Security number or Taxpayer ID
  • Funding source
  • Date of birth
  • A government-issued photo ID

Recap: Best Free Savings Accounts of 2024

Alternatives to Free Savings Accounts

Free savings accounts can be an excellent tool to earn interest on deposits without worrying about bank fees or high minimum deposit requirements. However, there are several alternatives you can use if you want higher APYs or more flexibility.

High-Yield Savings Accounts

Many of the top high-yield savings accounts also happen to be free savings accounts since they don’t charge monthly maintenance fees. However, these accounts focus on paying the highest APYs possible. Oftentimes, these accounts don’t have minimum deposit requirements either. You can even find banks and credit unions offering 5% interest savings accounts.

Money Market Accounts

A money market account is similar to a traditional savings account and pays interest on deposits. However, money market accounts often come with a debit card and check-writing privileges, making your funds more accessible. The top money market accounts often pay as much as a high-yield savings account, although minimum deposit requirements can be higher.

Certificates of Deposit (CDs)

CDs are time-deposit accounts that let you earn guaranteed interest in exchange for keeping your money in the account for a fixed period. While you can often earn a higher rate with a CD, you typically can’t make withdrawals before the CD term is over without paying an early withdrawal penalty. The best CD rates can outperform savings accounts, and you can easily find CD terms ranging from a few months to five years or more.

Rewards Checking Accounts

A rewards checking account can achieve the best of both worlds: spending flexibility and the ability to earn interest or cash-back rewards. Generally, the best free savings accounts pay a much higher APY than rewards checking accounts. But if you want to earn rewards on daily spending or some interest on your balance while being able to make purchases and withdrawals whenever you want, these accounts are worth considering.

Bonds

One final savings account alternative is bonds. These fixed-income investments allow you to essentially loan money for a specified time period and earn interest. When a bond reaches maturity, you receive your principal plus interest. You can invest in a range of bonds, including corporate and government bonds, depending on your goals and how long you want to loan your money. Overall, bonds are a popular fixed-income investment strategy you can use alongside a savings account.

Find The Best High-Yield Savings Accounts Of 2024

Banks We Monitor

These financial institutions were included in our research: ableBanking, Acorns, Affinity Federal Credit Union, Affirm, Albert, Alliant Credit Union, Ally Bank, Amalgamated Bank, American Express, Aspiration, Axos Bank, Apple Federal Credit Union, BancorpSouth Bank, Bank of America, Bank5 Connect, BankDirect, BankPurely, BankUnitedDirect, Barclays, Bethpage Federal Credit Union, Betterment, Blue Federal Credit Union, Bread Savings (formerly Comenity Direct), BrioDirect Banking, Capital One, Charles Schwab Bank, Chase, Chevron Federal Credit Union,  CIBC Bank, CIT Bank, Citibank, Citizens Access, Colorado Federal Savings Bank, Comerica, CommunityWide Federal Credit Union, Connexus Credit Union, Consumers Credit Union, Copper, Credit Union of Denver, Dave, Discover, Dollar Savings Direct, E*Trade Bank, EmigrantDirect, Fidelity, Financial Partners Credit Union, Financial Resources Federal Credit Union, First Internet Bank, First National Bank of America,  FNBO Direct, Georgia’s Own Credit Union, Golden1 Credit Union, Greenwood Credit Union, Heritage Bank, HSBC Direct, Hughes Federal Credit Union, Ideal Credit Union, iGoBanking, Investors eAccess, Keybank, Kinecta Federal Credit Union, LendingClub, Limelight, Live Oak Bank, MAC Federal Credit Union, Marcus by Goldman Sachs, Michigan State University Federal Credit Union, My eBanc, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, Northern Bank Direct, Northpointe Bank, Nuvision Federal Credit Union, Pacific National Bank, Paramount Bank, Pen Air Federal Credit Union, PenFed, PNC Bank, Popular Direct, Purepoint Financial, Quontic, Quorum Federal Credit Union, Radius Bank, Regions Bank, Rising Bank, SalemFiveDirect, Sallie Mae Bank,  Santander, SFGI Direct, SmartyPig Bank, SoFi, Spectrum Federal Credit Union, State Bank of Texas, State Department Federal Credit Union, Step, Superior Choice Credit Union, Synchrony Bank, TAB Bank, TD Bank, EverBank, TotalDirect Bank, Truist, Union Bank & Trust, U.S. Bank, USAA, USAlliance Federal Credit Union, Varo Bank, Vio Bank, Virtual Bank, Wealthfront, and Wells Fargo.

Frequently Asked Questions (FAQs)

Are free savings accounts FDIC insured?

The FDIC insures bank accounts up to $250,000 per depositor, for each ownership category, in the event of a bank failure. Most online banks are either FDIC insured or are affiliated with a traditional bank that is FDIC insured.

Free savings accounts at nationally chartered and many state-chartered credit unions are insured by the National Credit Union Administration (NCUA) up to $250,000 per share owner, per insured credit union, for each account ownership category.

Do free savings accounts have high interest rates?

Online banks are known for free savings accounts with low or no monthly fees. These types of accounts often earn higher interest rates, although rates can vary between banks. Online banks tend to have lower operating costs than traditional banks because they don’t have to operate local branches. They’re able to pass that savings on to their customers through lower fees and more competitive APYs.

Do banks require any minimums to avoid savings account fees?

Some banks or savings account options require you to meet specific minimum balance requirements to avoid monthly maintenance fees. You may also need to meet a certain balance requirement to earn interest each month.

Why should teenagers look for free savings accounts?

Free savings accounts don’t charge monthly bank fees. For teenagers beginning to earn and save money, paying bank fees can quickly deplete their savings. These accounts often don’t require meeting minimum balance requirements either, making them a better fit for teens who don’t generate enough income or savings to maintain a minimum balance.

Which banks offer the best savings account with no monthly fee?

Varo Bank, Sallie Mae Bank, Marcus by Goldman Sachs, Discover and Synchrony Bank all offer some of the best no-fee savings accounts. The top savings accounts with no monthly maintenance fees are often found at online banks. Online banks typically charge low or no fees and offer more competitive APYs.

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