It's a well-known fact that interest rates on savings accounts are incredibly low. In fact, the average savings account is hovering around 0.06%.1 That's such a far cry from pre-crisis times, it's shocking.
At rates that low one might ask, "Why even have a savings account? Why don't I just place my hard-earned money under the mattress?" We can't blame you. However, if you did that you'd be leaving money on the table (or under the mattress). There are much better options out there; savings account options that earn fifteen times the average rate of 0.06%.
We've scoured high and low to find the best accounts. In our search, we've come across a few that stand above the rest. You'd be in good shape if you had any of these accounts, but after some thorough analysis, one of them truly earns the title of best savings account. Here they are at a glance:
We were just as taken aback when we first saw these numbers. {{ vm.accountsByApy[0].apy | percentage:2 }} and {{ vm.accountsByApy[1].apy | percentage:2 }}? Why didn't I hear of these accounts before I put my money in [large, untrustworthy bank X]? You might be saying to yourself, "{{ vm.accountsByApy[0].display_name }} is clearly the winner because their APY is slightly higher.""{{ vm.accountsByApy[0].company.name }} and {{ vm.accountsByApy[1].company.name }} have the same interest rate, so what's the difference?"
However, you can't jump to a conclusion as there are other important factors to consider when opening a savings account. So we've broken them each down, piece by piece.
{{ vm.lowMinDepositAccounts[0].display_name }} doesn't require any fees either, but does require a {{ vm.lowMinDepositAccounts[0].min_balance_open | currency:"$":0 }} in order to open an account. {{ vm.lowMinDepositAccounts[0].min_balance_open | currency:"$":0 }} is still incredibly low compared to other major banks, which can require an opening deposit upwards of $300 just to get started.
Winner: {{ vm.lowMinDepositAccounts[0].display_name }}
Just because all of these banks have some type of monthly fee doesn't mean there isn't a good choice. {{ vm.lowMinBalanceAccounts[0].display_name }} only requires {{ vm.lowMinBalanceAccounts[0].min_balance_fee | currency:"$":0 }} in order to avoid a {{ vm.lowMinBalanceAccounts[0].monthly_fee | currency:"$":0 }} fee. {{ vm.lowMinBalanceAccounts[0].min_balance_fee | currency:"$":0 }} is still incredibly low compared ot major banks such as Bank of America, which requires a $300 balance to avoid the $5 fee.
Winner: {{ vm.lowMinBalanceAccounts[0].display_name }}
This one's pretty simple. {{ vm.noFeeAccounts[0].display_name }} has no monthly fees regardless of balance. To give you a little comparison, Bank of America requires $300 in your account to avoid a monthly charge. So if you're looking for a great "No Fee" bank, {{ vm.noFeeAccounts[0].display_name }} is a perfect option.
Winner: {{ vm.noFeeAccounts[0].display_name }}
{{ vm.lowMinDepositAccounts[0].display_name }} doesn't have any fees either, but does require a {{ vm.lowMinDepositAccounts[0].min_balance_open | currency:"$":0 }} deposit in order to open an account. {{ vm.lowMinDepositAccounts[0].min_balance_open | currency:"$":0 }} is still incredibly low compared to other major banks, which can require an opening deposit upwards of $300 just to get started. That said, you just can't beat the $0 minimum offered by
Tie:
Winner: {{ vm.noFeeAccounts.length }} way tie
This might not have been very important to us before the financial crisis, but times have changed. We need to feel safe with where we put our hard-earned money. Each of these banks are backed by the maximum allowable FDIC guarantee of $250,000. This means if the bank defaults, the US Government would repay you every penny you had in the account, up to $250,000. Bank of America, Chase, etc. all have this same insurance.
More than just the FDIC insurance, we need reliability and value from our bank. So here is how the top banks fare in terms of reputation:
Winner: {{ vm.bankReputations[0].display_name }}
These companies all have good customer service according to online reviews. 3 star reviews don't sound great for a restaurant, but for an industry that's really suffering from an image problem, 3 star ratings are some of the best ratings received. Comparatively, Bank of America had 1.6 stars, HSBC had 1.4 stars and Chase came in at 2.5 stars.
So how did we figure this one out? Members of our team personally opened an account in each and compared notes over a two-week period.
All of the banks' websites are state of the art and incredibly intuitive; and each has an "American English" speaking support team that is very attentive and easy to deal with.
Winner: {{ vm.customerServiceWinner.display_name }}
This one is not as obvious as you may think.
If you are looking for the best interest rate, and not considering anything else, BAC Florida is a better option. However, there is a slight asterisk.
Barclays is a pure savings account meaning you have easy access to cash. BAC Florida on the other hand is a certificate of deposit which means if you withdraw the cash before the 12 months are up, you could lose the money you gained in interest.
Winner: {{ vm.accountsByApy[0].display_name }}
This one's easy. At {{ vm.accountsByApy[0].apy | percentage:2 }}, {{ vm.accountsByApy[0].display_name }}'s interest rate is slightly higher. Even though {{ vm.accountsByApy[0].display_name }}'s rate is slightly higher, really either of these accounts are huge improvements over what Chase, Bank of America, or Wells Fargo would pay you.
Winner: {{ vm.accountsByApy[0].display_name }}
{{ vm.accountsByApy[0].display_name }} and {{ vm.accountsByApy[1].display_name }} are both offering a {{ vm.accountsByApy[0].apy | percentage:2 }} interest rate. For this reason, we had to give them the tie.
Tie: {{ vm.accountsByApy[0].display_name }} and {{ vm.accountsByApy[1].display_name }}
Winner: {{ vm.overallWinner.display_name }}
Disclaimer: This page compares financial institutions offering competing products. While our assessment of each company's offering is the product of our research, our overall conclusion and recommendation is determined by compensation paid to us by each participating financial institution.
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