Back in the 1970s, the average savings rate was in the double digits. In May of 1975, that average savings rate hit a peak of 14.6%.
Those numbers are hard to believe in 2021. The average savings account offers a rate of return well under 1.0%.
While the pickings are slim these days, you still can find a savings account which offers you some advantages.
When selecting which bank to open your savings account with, you should at a bare minimum, be looking for the highest annual percentage yield (APY) with no monthly fees and you should seek out a bank which is FDIC insured.
Here are the top ten high-yield and online savings account currently available.
1High Yield Online Savings Account
The VIO Bank High Yield Online Savings Account is our overall top selection. Their savings account pays one of the highest rates at 0.66% APY.
There are no monthly fees, and all VIO Bank High Yield Online Savings Accounts are FDIC insured for up to $250,000, which is the standard for FDIC-insured bank accounts.
This bank also offers ease of use, with the ability to open your account in mere minutes, simply by filling out a brief application form on the website. All transactions can be done online with this account including check deposits through the VIO Bank mobile app.
2Axos High-Yield Savings
The Axos High-Yield Savings Account offers a 0.61% APY, which is one the higher rates on this list. Interest is compounded daily with no monthly maintenance fees or minimum balance requirements. There is a minimum deposit requirement of $250.
Axos also offers more than just savings accounts. They also provide five different checking account options, one money market account and CDs ranging from three months to five years. They also have an excellent mobile app and are widely viewed as one of the top online banks in the industry.
3Ally Online Savings
The Ally Online Savings Account offers an API currently set at 0.50%.
Like most other banks on this list, there is a limit of six withdrawals per statement cycle. They also offer an add-on feature known as buckets, which allows you to organize the money you set aside into buckets such as home improvement, vacation of medical expenses.
If you sign up with their checking account as well, you can benefit from the round ups feature. This feature tracks your Ally Interest Checking accounts for transactions which can be rounded up to the nearest dollar, with the rounded-up amount being transferred to your savings account.
4American Express National Bank
The 0.40% interest APY which American Express High Yield Savings account offers is on par with the average rate most high-yield online savings accounts currently offer.
Where the bank has an advantage is that they allow nine free withdrawals or transfers per statement cycle, which is an advantage for those who frequently need to access their funds.
Most other banks on this list limit transfers and withdrawals from savings to six per statement cycle.There are no monthly fees, and no minimum balance requirements.
5Discover Online Savings
The Discover Online Savings Account offers a stable 0.40% APY which is not the highest on our list, but still a respectable amount compared to traditional bank savings accounts.
All balances qualify for the same interest rate. This differs from some competing online savings accounts with tiered rates based on account balances.
Discover also shines with their mobile app which is one of the top apps from the providers on this list. Savers can access details from all of their Discover accounts through the app, including viewing account activity, electronically deposit checks and transfer money.
6Marcus by Goldman Sachs Online Savings Account
The Marcus High-Yield Online Savings Account by Goldman Sachs offers a 0.50% APY, which their website lists as 4 times the national average.
On top of that, there are no fees and no minimum amount to deposit.One feature the Marcus High-Yield Online Savings Account by Goldman Sachs offers which is not readily available by many of the other options on this list is same-day transfers of $100,000 or less to/from other banks.
You can also easily link other bank accounts to facilitate ease of transferring funds. This savings account also does offer unlimited withdrawals and transfers which we have not seen as an option by any other bank on this list.
7Synchrony Bank High-Yield Savings
Synchrony’s High Yield Savings Account offers the slightly above-average APY of 0.50% with no minimum balance requirements or maintenance fees. Synchrony bank is also a member of FDIC, with deposit accounts insured for up to $250,000 per ownership category.
The Synchrony bank also has a mobile app available on both Android and Apple. The app allows you to deposit checks, transfer funds, check your balance, and even chat with a Synchrony banker.
8CIT Bank Savings Builder
The CIT Bank Savings Builder account will earn for you an APY of up to 0.40%. There is a minimum $100 amount required to open an account.Once you have opened an account, you have two options to choose from – the Monthly Savers Account and the High Balance Savers Account.
The Monthly Savers Account can be opened with just a $100 requirement, although you need to continue to redeposit an additional $100 each subsequent month as a requirement. Alternatively, they also offer the High balance Savers Account which requires a minimum $25,000 account balance at all times.
9Capital One 360 Performance Savings
The 360 Performance Savings by Capital One offers a 0.40% APY. There is no minimum balance required and the APY rate is variable, meaning it can change at any time without notice. You are allowed six monthly withdrawals or transfers per monthly statement cycle. There are no monthly fees with this account.
10Sallie Mae SmartyPig Account
Sallie Mae offers an extremely competitive APY, and unlike other options on this list, this SmartyPig online savings account provides savers with tools to create and track savings progress for specific goals.
There are also no monthly fees or minimum requirements.Another way this bank differs from others, is it offers a higher interest rate for lower balances in its tiered rate structure. Most other banks use the opposite tier system and pay higher rates for higher balances.
The SmartyPig account pays 0.70% APY on balances from $0.01 to $2,500, 0.70% APY on balances from $2,500.01 to $10,000, 0.45% APY on balances from $10,000.01 to $50,000 and 0.45% APY on balances of $50,000.01 and above. Interest is compounded daily and credited monthly.