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  • 9 Best Savings Accounts of March 2023

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    Safril Noho
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    The document discusses the best savings accounts, which typically have interest rates around 3% and no monthly fees. Online savings accounts tend to have higher rates than traditional banks due to lower overhead costs. Savings accounts are insured by the FDIC up to $250,000 so deposits are guaranteed not to lose money. Interest rates can change over time so it's a good idea to check rates regularly.

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    The document discusses the best savings accounts, which typically have interest rates around 3% and no monthly fees. Online savings accounts tend to have higher rates than traditional banks due to lower overhead costs. Savings accounts are insured by the FDIC up to $250,000 so deposits are guaranteed not to lose money. Interest rates can change over time so it's a good idea to check rates regularly.

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    13 views3 pages

    9 Best Savings Accounts of March 2023

    Uploaded by

    Safril Noho
    The document discusses the best savings accounts, which typically have interest rates around 3% and no monthly fees. Online savings accounts tend to have higher rates than traditional banks due to lower overhead costs. Savings accounts are insured by the FDIC up to $250,000 so deposits are guaranteed not to lose money. Interest rates can change over time so it's a good idea to check rates regularly.

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    <head><title>9 Best Savings Accounts of March 2023</title></head>


    <body><p/><h2>What you need to know about the best savings
    accounts</h2><p/><p/><h3>What do the best savings accounts have in
    common?</h3><p/><div><p>The best savings account interest rates are around 3%. At a
    brick-and-mortar bank, you'll often find savings rates closer to the national
    average, which is currently 0.35%.</p></div><div><p>If you have a $10,000 savings
    balance, choosing an account that pays 3% will earn you about $300 in a year, while
    an account paying you 0.30% APY would earn about $30. The difference increases the
    more you deposit and the longer you keep it in the account.</p></div><p/><h3>Why
    should I care about the best savings account rates?</h3><p/><div><p>If you have
    money left in your checking account each month — or you can adjust your budget so
    that you do — you should have a savings account with a high rate. (Again, think
    around 3%.) It's always helpful to have money set aside for emergencies, and it'll
    earn you much more in an account that pays one of the best savings account rates
    than in a checking account.</p></div><div><p>Just make sure you can keep enough in
    your savings account to avoid monthly fees. Most online savings accounts don't
    charge these, but many traditional accounts do.</p></div><p/><h3>What monthly fees
    do savings accounts usually have?</h3><p/><div><p>The best savings accounts
    typically don’t charge monthly fees. You <a
    href="https://www.nerdwallet.com/article/banking/deposit">make your deposit</a> and
    watch your balance grow as your money earns interest.</p></div><p/><h3>Why does
    NerdWallet pick online savings accounts as the best savings
    accounts?</h3><p/><div><p>It's easy to find a savings account at your local bank,
    but if you want to earn a high rate and pay the lowest fees, you should consider
    storing your savings in an online account. Without the added expenses of large
    branch networks, online banks and nonbank providers are able to offer more
    favorable returns than national brick-and-mortar banks.</p></div><p/><h3>Is my
    money safe in a savings account?</h3><p/><div><p>Yes. Unlike investment accounts,
    savings accounts are guaranteed not to lose money — provided your money is insured
    by the Federal Deposit Insurance Corporation or the National Credit Union
    Administration. Whatever you put in an FDIC- or NCUA-insured account will stay
    there, unless your account charges fees (and, of course, unless you withdraw
    money).</p></div><div><p>» Dig deeper: Learn more about <a
    href="https://www.nerdwallet.com/article/banking/fdic-insurance">FDIC</a> and <a
    href="https://www.nerdwallet.com/article/banking/ncua-insurance-keeps-credit-union-
    deposits-safe">NCUA</a> insurance for deposit accounts.</p></div><p/><h3>Do the
    best savings account interest rates change over time?</h3><p/><div><p>Yes, rates
    are variable and can change over time. If you are looking for a fixed rate account,
    and can set aside funds for a specific time period without making a withdrawal,
    consider opening a certificate of deposit. NerdWallet's list of <a
    href="https://www.nerdwallet.com/best/banking/cd-rates">best CD rates</a> features
    top options.</p></div><p/><h3>How often do interest rates
    change?</h3><p/><div><p>Financial institutions generally don’t change savings rates
    on an hourly, daily or even monthly basis. In fact, under normal circumstances,
    it’s common to see APYs remain the same for several months.</p></div><div><p>It’s
    important to note, however, that rates are variable and theoretically can change at
    any time. In addition, many providers will change their rates based on what their
    competitors are doing. You will often see groups of providers increase or decrease
    their APYs at around the same time, especially if the Federal Reserve recently
    increased or cut rates.</p></div><div><p>To get the best yield for your money, it’s
    a good idea to check out the best savings rates on a regular basis — at least once
    a month.</p></div><p/><h3>Savings account terms you need to
    know:</h3><p/><div><p>Savings account: A deposit account from a financial
    institution that typically earns interest.</p></div><div><p>Interest: Money a
    financial institution pays into an account over time.</p></div><div><p>Compound
    interest: Compound interest is the interest you earn on both your original money
    and on the interest you keep accumulating. In an account that pays compound
    interest, the return is added to the original principal at the end of every
    compounding period, typically daily or monthly. Each time interest is calculated
    and added to the account, the larger balance earns more
    interest.</p></div><div><p>Annual percentage yield: The annual percentage yield, or
    APY, is the amount of interest an account earns in a year. The calculation is based
    on the account’s interest rate and the number of times interest is paid during the
    year.</p></div><p/><h3>How can I earn high interest rates besides a savings
    account?</h3><p/><div><p>Money market accounts: These accounts are a type of
    savings account, but they might have higher minimum balances and offer perks such
    as check-writing, which is rare for savings accounts.</p></div><div><p>Certificates
    of deposit: These accounts lock your balance away for a specified period of time —
    often between one year and five years — in exchange for a higher interest rate. But
    if you withdraw any money during the term, you'll typically have to pay a penalty.
    CDs are also covered by FDIC insurance.</p></div><p/><h3>Is savings account
    interest taxable?</h3><p/><div><p>Yes, savings account interest is generally
    taxable. Your provider will probably send you a form reporting it if you earned
    more than $10 during the tax year. Note that you are likely to earn more interest
    with a high-yield savings account.</p></div><div><p/><h3>What’s the difference when
    NerdWallet notes “Member FDIC” vs. “funds insured by FDIC” on savings
    accounts?</h3><p/><div><p>When we describe a savings account that is offered by a
    bank, we note “Member FDIC,” since the bank is a member of the Federal Deposit
    Insurance Corp. and the account is federally insured. If a financial technology
    company — not a bank — offers a savings account, it typically partners with a bank
    that is an FDIC member to hold the funds so deposits can be insured. In those
    cases, we note “funds insured by the FDIC.” Savings accounts at credit unions are
    federally insured by the National Credit Union Administration, so we note “funds
    insured by the NCUA.”</p></div></div><p/><h2>Full list of editorial picks: best
    savings accounts</h2><p/><div><p>Here are all of NerdWallet's picks for the best
    savings accounts.</p></div><div><ul><li><div><p>Ally, 3.40% savings APY with no
    minimum to open account (<a href="https://www.nerdwallet.com/reviews/banking/ally-
    bank">read full review</a>), Member FDIC.</p></div></li><li><div><p>American
    Express, 3.50% APY (annual percentage yield) as of 02/16/2023 with no minimum to
    open account (<a href="https://www.nerdwallet.com/reviews/banking/american-express-
    national-bank">read full review</a>), Member
    FDIC.</p></div></li><li><div><p>Barclays, 3.60% savings APY with no minimum to open
    account (<a href="https://www.nerdwallet.com/reviews/banking/barclays-bank">read
    full review</a>), Member FDIC.</p></div></li><li><div><p>Bask Bank, 4.25% savings
    APY with no minimum to open account (<a
    href="https://www.nerdwallet.com/reviews/banking/bask-bank">read full review</a>),
    Member FDIC.</p></div></li><li><div><p>Bread Savings, 4.25% savings APY with $100
    minimum to open account, (<a
    href="https://www.nerdwallet.com/reviews/banking/comenity-direct">read full
    review</a>), Member FDIC.* </p></div></li><li><div><p>Capital One, 3.40% savings
    APY with no minimum to open account (<a
    href="https://www.nerdwallet.com/reviews/banking/capital-one-bank">read full
    review</a>), Member FDIC.</p></div></li><li><div><p>CIT Bank, 4.05% savings APY
    with $100 minimum to open account (<a
    href="https://www.nerdwallet.com/reviews/banking/cit-bank">read full review</a>),
    Member FDIC.</p></div></li><li><div><p>Citibank, 3.85% savings APY with no minimum
    to open account (<a href="https://www.nerdwallet.com/reviews/banking/citibank">read
    full review</a>), Member FDIC. </p></div></li><li><div><p>Citizens, 4.00% savings
    APY with $0.01 minimum to open account (<a
    href="https://www.nerdwallet.com/reviews/banking/citizens-access">read full
    review</a>), Member FDIC.</p></div></li><li><div><p>Discover Bank, 3.50% savings
    APY with no minimum to open account (<a
    href="https://www.nerdwallet.com/reviews/banking/discover-bank">read full
    review</a>), Member FDIC.</p></div></li><li><div><p>E*TRADE, 3.50% savings APY with
    no minimum to open (<a href="https://www.nerdwallet.com/reviews/banking/etrade-
    checking-savings">read full review</a>), Member
    FDIC.</p></div></li><li><div><p>First Foundation Bank, 4.20% savings APY with
    $1,000 minimum to open account (<a
    href="https://www.nerdwallet.com/reviews/banking/first-foundation-bank">read full
    review</a>), Member FDIC.</p></div></li><li><div><p>LendingClub, 4.00% savings APY,
    $100 minimum to open account (<a
    href="https://www.nerdwallet.com/reviews/banking/lendingclub-bank">read full
    review</a>), Member FDIC.</p></div></li><li><div><p>Live Oak Bank, 3.50% savings
    APY with no minimum to open account (<a
    href="https://www.nerdwallet.com/reviews/banking/live-oak-bank">read full
    review</a>), Member FDIC.</p></div></li><li><div><p>Marcus, 3.75% savings APY with
    no minimum to open account (<a
    href="https://www.nerdwallet.com/reviews/banking/goldman-sachs-bank">read full
    review</a>), Member FDIC.</p></div></li><li><div><p>Quontic Bank, 3.70% savings APY
    with $100 minimum to open account (<a
    href="https://www.nerdwallet.com/reviews/banking/quontic-bank">read full
    review</a>), Member FDIC.</p></div></li><li><div><p>Salem Five Direct, 4.10%
    savings APY with no minimum to open account (<a
    href="https://www.nerdwallet.com/reviews/banking/salem-five-direct">read
    full review</a>), Member FDIC.</p></div></li><li><div><p>Sallie Mae Bank, 3.50%
    savings APY with no minimum to open account (<a
    href="https://www.nerdwallet.com/reviews/banking/sallie-mae-bank">read full
    review</a>), Member FDIC.</p></div></li><li><div><p>SoFi, 3.75% savings APY
    (variable and subject to change) with no minimum to open account (<a
    href="https://www.nerdwallet.com/reviews/banking/sofi">read full review</a>),
    Member FDIC.</p></div></li><li><div><p>Synchrony Bank, 4.00% savings APY with no
    minimum to open account (<a
    href="https://www.nerdwallet.com/reviews/banking/synchrony-bank">read full
    review</a>), Member FDIC.</p></div></li><li><div><p>TAB Bank, 4.06% savings APY
    with no minimum to open account (<a
    href="https://www.nerdwallet.com/reviews/banking/tab-bank">read full review</a>),
    Member FDIC.</p></div></li><li><div><p>TIAA Bank, 3.70% savings APY with $25
    minimum to open account (<a href="https://www.nerdwallet.com/reviews/banking/tiaa-
    bank">read full review</a>), Member FDIC.</p></div></li><li><div><p>UFB Direct,
    4.55% savings APY with no minimum to open account (<a
    href="https://www.nerdwallet.com/reviews/banking/ufb-direct">read full review</a>),
    Member FDIC.</p></div></li><li><div><p>Upgrade, 4.13% APY, no minimum to open
    account (<a href="https://www.nerdwallet.com/reviews/banking/upgrade">read full
    review</a>), funds insured by FDIC.</p></div></li></ul></div><div><div><p>*Bread
    Savings disclosure</p><svg><path/></svg></div><div><p>Bread Savings says: All
    Bread Savings APYs are accurate as of 03/07/2023. APYs are subject to change at any
    time without notice. Offers apply to personal accounts only. Fees may reduce
    earnings. For high-yield savings accounts, a minimum of $100 is required and must
    be deposited in a single transaction. For high-yield savings accounts, the rate may
    change after the account is opened. </p></div></div></body>
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