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Best Savings Accounts for June 2025
All savings accounts are not created equal. While the national average savings rate is only 0.42%, today's top savings accounts earn up to 5% annual percentage yield. That means your money can grow much faster if you put it in the right account. There are tons of savings accounts to choose from, so to make it easier for you, we've narrowed them down to our top picks. Best savings accounts It's important to monitor savings account APYs, as they're variable and can change at any time. Here's a look at CNET's top-ranked savings accounts. Bank APY Min. deposit to open Branch access Ally Bank 3.60% $0 No EverBank 4.30% $0 No Capital One Bank 3.60% $0 Yes TAB Bank 4.26% $0 No Newtek Bank 4.35% $0 No Discover 3.60% $0 No Laurel Road 3.80% $0 No Synchrony Bank 4.00% $0 No Varo Bank 2.50% - 5.00% $0 No Bask Bank 4.20% $0 No LendingClub 4.40% $0 No BMO Alto 3.60% $0 No Marcus by Goldman Sachs 3.65% $0 No Note: APYs as of June 3, 2025. APYs may vary by region for some products. Ally Bank Best innovative savings tools Read Ally Bank Review 4.8 /5 Score How do we score savings accounts We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks. APY 4.0/5 Minimum deposit and fees 5.0/5 Customer service 5.0/5 APY APY = Annual Percentage Yield. 3.60% Min. deposit to open $0 Branch access No Read Ally Bank Review About the bank Ally's online savings account pays a competitive APY on all balances, with no monthly fees or minimum balance requirements. We like Ally's digital tools to help you reach your savings goals. Saving buckets allow you to organize your goals as sub-accounts, and savings boosters can help you automate savings. While you can't deposit cash with Ally, a fee-free network of more than 43,000 ATMs and a $10 per month ATM fee reimbursement make it easy to access your money when you need it. Monthly fees: $0 More details No monthly fees, minimum deposit or balance requirements. Live support available 24/7. Digital tools such as roundups and savings. buckets help automate savings. About the bank More details Ally's online savings account pays a competitive APY on all balances, with no monthly fees or minimum balance requirements. We like Ally's digital tools to help you reach your savings goals. Saving buckets allow you to organize your goals as sub-accounts, and savings boosters can help you automate savings. While you can't deposit cash with Ally, a fee-free network of more than 43,000 ATMs and a $10 per month ATM fee reimbursement make it easy to access your money when you need it. Monthly fees: $0 No monthly fees, minimum deposit or balance requirements. Live support available 24/7. Digital tools such as roundups and savings. buckets help automate savings. EverBank Best overall Read EverBank Review 4.8 /5 Score How do we score savings accounts We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks. APY 4.5/5 Minimum deposit and fees 5.0/5 Customer experience 4.5/5 APY APY = Annual Percentage Yield. 4.30% Min. deposit to open $0 Branch access No Read EverBank Review About the bank EverBank, formerly TIAA, offers a high-yield savings account with a 5.15% APY on all balances. The bank has several physical branches in Florida, but its online tools and mobile app make opening and managing an account seamless from anywhere in the US. We also like that you can access your money from a network of 100,000 fee-free ATMs and get reimbursed for up to $15 per month in non-network ATM fees. Monthly fees: $0 More details No monthly fees, minimum balance or balance requirements. Yield Pledge promise guarantees APYs remain competitive. Supports mobile check deposits via app. About the bank More details EverBank, formerly TIAA, offers a high-yield savings account with a 5.15% APY on all balances. The bank has several physical branches in Florida, but its online tools and mobile app make opening and managing an account seamless from anywhere in the US. We also like that you can access your money from a network of 100,000 fee-free ATMs and get reimbursed for up to $15 per month in non-network ATM fees. Monthly fees: $0 No monthly fees, minimum balance or balance requirements. Yield Pledge promise guarantees APYs remain competitive. Supports mobile check deposits via app. Capital One Bank Best rates for big banks with physical branches Read Capital One Bank Review 4.8 /5 Score How do we score savings accounts We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks. APY 4.0/5 Minimum deposit and fees 5.0/5 Customer service 5.0/5 APY APY = Annual Percentage Yield. 3.60% Min. deposit to open $0 Branch access Yes Read Capital One Bank Review About the bank There are no monthly maintenance fees or minimum balance requirements for Capital One 360 Performance Savings. Because Capital One doesn't offer ATM cards or checks, you'll need to visit a physical branch to withdraw your cash or transfer money. This savings option may work best as a complement to your checking account. The Capital One mobile app makes it easy to snap pictures of checks to deposit them. Sending money to another bank account with ACH transfers is free, but the process may take one to three days. Outgoing wire transfers incur a $30 fee, and cashier's checks purchased at physical locations cost $10. Monthly fees: $0 More details No monthly fees, minimum deposit or balance requirements. Banking app supports mobile check deposits. Doesn't offer ATM or debit cards with savings account. About the bank More details There are no monthly maintenance fees or minimum balance requirements for Capital One 360 Performance Savings. Because Capital One doesn't offer ATM cards or checks, you'll need to visit a physical branch to withdraw your cash or transfer money. This savings option may work best as a complement to your checking account. The Capital One mobile app makes it easy to snap pictures of checks to deposit them. Sending money to another bank account with ACH transfers is free, but the process may take one to three days. Outgoing wire transfers incur a $30 fee, and cashier's checks purchased at physical locations cost $10. Monthly fees: $0 No monthly fees, minimum deposit or balance requirements. Banking app supports mobile check deposits. Doesn't offer ATM or debit cards with savings account. TAB Bank Best for truckers 4.5 /5 Score How do we score savings accounts We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks. APY 5.0/5 Minimum deposit and fees 5.0/5 Customer service 4.0/5 APY APY = Annual Percentage Yield. 4.26% Min. deposit to open $0 Branch access No About the bank TAB Bank, an online-only bank, caters to transportation industry employees such as truckers. There's no minimum balance or deposit required, and you need only 1 cent in your account to start earning interest. We like that you can sign up for mobile alerts and text messages about your account activity. For example, you can receive alerts about withdrawals when your account balance falls below a certain amount. TAB also has extended customer service hours — Monday through Friday from 6 a.m. to 7 p.m. MT and Saturdays from 9 a.m. to 3 p.m. MT, excluding federal holidays. Monthly fees: $0 More details No monthly fees, minimum deposit or balance requirements. $5 monthly fee for paper statements. Full suite of deposit accounts available. Mobile check deposits via app, plus text alerts. Extended customer service hours. About the bank More details TAB Bank, an online-only bank, caters to transportation industry employees such as truckers. There's no minimum balance or deposit required, and you need only 1 cent in your account to start earning interest. We like that you can sign up for mobile alerts and text messages about your account activity. For example, you can receive alerts about withdrawals when your account balance falls below a certain amount. TAB also has extended customer service hours — Monday through Friday from 6 a.m. to 7 p.m. MT and Saturdays from 9 a.m. to 3 p.m. MT, excluding federal holidays. Monthly fees: $0 No monthly fees, minimum deposit or balance requirements. $5 monthly fee for paper statements. Full suite of deposit accounts available. Mobile check deposits via app, plus text alerts. Extended customer service hours. Newtek Bank Best for business owners 4.5 /5 Score How do we score savings accounts We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks. APY 5.0/5 Minimum deposit and fees 5.0/5 Customer service 4.0/5 APY APY = Annual Percentage Yield. 4.35% Min. deposit to open $0 Branch access No About the bank Newtek Bank is an online-only subsidiary of Newtek One, a financial services business company. It offers an attractive APY for all balance levels, but you can make only six withdrawals per statement cycle. Like Capital One, this account doesn't come with an ATM card, so you'll need to be comfortable transferring money online. You can open as many personal banking accounts as needed and manage them all through an online banking platform or mobile app. If you don't want to manage your account online or need to make more than six withdrawals a month, it's best to consider other options. Monthly fees: $0 More details No monthly fees, minimum deposit or balance requirements. Mobile check deposits via app. No service or transaction fees. Limit of six withdrawals per statement cycle. Live customer support available 24/7. About the bank More details Newtek Bank is an online-only subsidiary of Newtek One, a financial services business company. It offers an attractive APY for all balance levels, but you can make only six withdrawals per statement cycle. Like Capital One, this account doesn't come with an ATM card, so you'll need to be comfortable transferring money online. You can open as many personal banking accounts as needed and manage them all through an online banking platform or mobile app. If you don't want to manage your account online or need to make more than six withdrawals a month, it's best to consider other options. Monthly fees: $0 No monthly fees, minimum deposit or balance requirements. Mobile check deposits via app. No service or transaction fees. Limit of six withdrawals per statement cycle. Live customer support available 24/7. Discover Large network of fee-free ATMs 4.8 /5 Score How do we score savings accounts We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks. APY 4.0/5 Minimum deposit and fees 5.0/5 Customer service 4.0/5 APY APY = Annual Percentage Yield. 3.60% Min. deposit to open $0 Branch access No About the bank Discover Bank offers a competitive APY on its online savings account. We like that Discover eliminated most fees on its deposit accounts in June 2019 — you won't pay a fee for official bank checks, excessive withdrawals or closing the account. Discover Bank is an online-only bank that doesn't accept cash deposits or offer in-person assistance, so your account is managed entirely online. However, the mobile app, network of 60,000 fee-free ATMs and 24/7 live customer support make Discover Bank worth considering. Monthly fees: $0 More details No monthly fees, minimum deposit or balance requirements. Mobile check deposits via app. Live customer support available 24/7. No withdrawal limit. About the bank More details Discover Bank offers a competitive APY on its online savings account. We like that Discover eliminated most fees on its deposit accounts in June 2019 — you won't pay a fee for official bank checks, excessive withdrawals or closing the account. Discover Bank is an online-only bank that doesn't accept cash deposits or offer in-person assistance, so your account is managed entirely online. However, the mobile app, network of 60,000 fee-free ATMs and 24/7 live customer support make Discover Bank worth considering. Monthly fees: $0 No monthly fees, minimum deposit or balance requirements. Mobile check deposits via app. Live customer support available 24/7. No withdrawal limit. Laurel Road Best for health professionals 4.6 /5 Score How do we score savings accounts We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks. APY 4.5/5 Minimum deposit and fees 5/5 Customer service 4.0/5 APY APY = Annual Percentage Yield. 3.80% Min. deposit to open $0 Branch access No About the bank Laurel Road, the digital arm of KeyBank, offers an online savings account with no minimum deposit or balance requirements to earn its competitive APY. Like most online banks, Laurel Road doesn't accept cash deposits, so you'll need to transfer money electronically to fund your account. Laurel Road began as a student loan originator in 2013. In 2019, it was acquired by KeyBank and now offers checking, savings and loan products primarily geared toward health care and business professionals nationwide. Its digital platform merges technology with banking services to offer a high-yield rate that applies to the entire balance. Monthly fees: $0 More details No monthly fees, minimum deposit or balance requirements. Mobile check deposits via app. Withdrawal transactions limited to seven per month. About the bank More details Laurel Road, the digital arm of KeyBank, offers an online savings account with no minimum deposit or balance requirements to earn its competitive APY. Like most online banks, Laurel Road doesn't accept cash deposits, so you'll need to transfer money electronically to fund your account. Laurel Road began as a student loan originator in 2013. In 2019, it was acquired by KeyBank and now offers checking, savings and loan products primarily geared toward health care and business professionals nationwide. Its digital platform merges technology with banking services to offer a high-yield rate that applies to the entire balance. Monthly fees: $0 No monthly fees, minimum deposit or balance requirements. Mobile check deposits via app. Withdrawal transactions limited to seven per month. Synchrony Bank Best for out-of-network ATM fee reimbursements Read Synchrony Bank Review 4.6 /5 Score How do we score savings accounts We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks. APY 4.5/5 Minimum deposit and fees 5.0/5 Customer service 4.0/5 APY APY = Annual Percentage Yield. 4.00% Min. deposit to open $0 Branch access No Read Synchrony Bank Review Our take Synchrony's high-yield savings account has no monthly maintenance fees or minimum balance requirements and offers a higher-than-average yield. Synchrony account holders get an ATM card and can withdraw money fee-free from thousands of ATMs featuring the Visa Plus or Accel logos. Synchrony doesn't charge you to use non-network ATMs and reimburses you up to $5 per month for other banks' ATM fees. Outgoing wire transfers cost $25. Synchrony users are limited to six withdrawals per month. There are no listed fees for surpassing that limit, but the bank retains the right to close your account if you repeatedly break the maximum number of withdrawals. Monthly fees: $0 More details No monthly fees, minimum balance or balance requirements. Banking app supports mobile check deposits. Optional ATM card available for savings accounts. Rebates up to $5 per month for non-network ATM fees. Our take More details Synchrony's high-yield savings account has no monthly maintenance fees or minimum balance requirements and offers a higher-than-average yield. Synchrony account holders get an ATM card and can withdraw money fee-free from thousands of ATMs featuring the Visa Plus or Accel logos. Synchrony doesn't charge you to use non-network ATMs and reimburses you up to $5 per month for other banks' ATM fees. Outgoing wire transfers cost $25. Synchrony users are limited to six withdrawals per month. There are no listed fees for surpassing that limit, but the bank retains the right to close your account if you repeatedly break the maximum number of withdrawals. Monthly fees: $0 No monthly fees, minimum balance or balance requirements. Banking app supports mobile check deposits. Optional ATM card available for savings accounts. Rebates up to $5 per month for non-network ATM fees. Varo Bank Best for low balances 4.6 /5 Score How do we score savings accounts We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks. APY 4.5/5 Minimum deposit and fees 5.0/5 Customer service 2.5/5 APY APY = Annual Percentage Yield. 2.50% - 5.00% Min. deposit to open $0 Branch access No About the bank The Varo Online Savings Account has a tiered APY scale, earning you 5.00% APY for balances between $0 and $5,000 — as long as you follow a few requirements. To earn that yield, you must have direct deposits totaling $1,000 each month and end the month with a positive account balance. Note that any amount over $5,000 earns only 3.00% APY. Varo Online Savings includes no monthly maintenance fees or minimum balance requirements. If your account balance remains at zero for nine months, Varo reserves the right to close your account. Monthly fees: $0 More details No monthly fees, minimum deposit or balance requirements. Banking app supports mobile check deposits. Roundup tools to automate savings. Highest APY limited to balances up to $5,000. A minimum of $1,000 in monthly direct deposits required to earn interest. About the bank More details The Varo Online Savings Account has a tiered APY scale, earning you 5.00% APY for balances between $0 and $5,000 — as long as you follow a few requirements. To earn that yield, you must have direct deposits totaling $1,000 each month and end the month with a positive account balance. Note that any amount over $5,000 earns only 3.00% APY. Varo Online Savings includes no monthly maintenance fees or minimum balance requirements. If your account balance remains at zero for nine months, Varo reserves the right to close your account. Monthly fees: $0 No monthly fees, minimum deposit or balance requirements. Banking app supports mobile check deposits. Roundup tools to automate savings. Highest APY limited to balances up to $5,000. A minimum of $1,000 in monthly direct deposits required to earn interest. Bask Bank Best for American Airlines loyalty members 4.5 /5 Score How do we score savings accounts We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks. APY 4.5/5 Minimum deposit and fees 5.0/5 Customer service 3.0/5 APY APY = Annual Percentage Yield. 4.20% Min. deposit to open $0 Branch access No About the bank Bask Bank, an online subsidiary of Texas Capital Bank, offers two different types of savings accounts. Its Mileage Savings Account gives American Airlines mileage back for every dollar saved annually, while its Interest Savings Account provides a competitive APY that's at, or near, the top of the current bank savings account rates. The biggest limitation for Bask Bank savings is that the bank doesn't allow joint account ownership. Monthly fees: $0 More details No monthly fees, minimum deposit or balance requirements. Two savings account options available — Miles Savings and Interest Savings. Doesn't offer ATM or debit cards with savings account. About the bank More details Bask Bank, an online subsidiary of Texas Capital Bank, offers two different types of savings accounts. Its Mileage Savings Account gives American Airlines mileage back for every dollar saved annually, while its Interest Savings Account provides a competitive APY that's at, or near, the top of the current bank savings account rates. The biggest limitation for Bask Bank savings is that the bank doesn't allow joint account ownership. Monthly fees: $0 No monthly fees, minimum deposit or balance requirements. Two savings account options available — Miles Savings and Interest Savings. Doesn't offer ATM or debit cards with savings account. LendingClub Best for consistent savers Read LendingClub Review 4.2 /5 Score How do we score savings accounts We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks. APY 4.5/5 Minimum deposit and fees 4.0/5 Customer experience 4.0/5 APY APY = Annual Percentage Yield. 4.40% Min. deposit to open $0 Branch access No Read LendingClub Review About the bank LendingClub recently launched a LevelUp Savings account that rewards consistent savers with competitive rates. You'll qualify for the highest rate if you deposit at least $250 per month. Deposits from any source — such as direct deposit or electronic transfers — count towards the minimum monthly requirement. If your monthly deposit drops below $250 after the first two months, then the standard APY will apply. Both rates apply to the entire balance. We also like that the LevelUp Savings account doesn't charge a monthly fee or have a minimum balance requirement. Learn more about this account and its features in our CNET review . Monthly fees: $0 More details No monthly fees, minimum deposit or minimum balance requirements. Banking app supports mobile check deposits. Cash deposits accepted at select ATMs. Unlimited non-network ATM fee reimbursements. About the bank More details LendingClub recently launched a LevelUp Savings account that rewards consistent savers with competitive rates. You'll qualify for the highest rate if you deposit at least $250 per month. Deposits from any source — such as direct deposit or electronic transfers — count towards the minimum monthly requirement. If your monthly deposit drops below $250 after the first two months, then the standard APY will apply. Both rates apply to the entire balance. We also like that the LevelUp Savings account doesn't charge a monthly fee or have a minimum balance requirement. Learn more about this account and its features in our CNET review . Monthly fees: $0 No monthly fees, minimum deposit or minimum balance requirements. Banking app supports mobile check deposits. Cash deposits accepted at select ATMs. Unlimited non-network ATM fee reimbursements. BMO Alto Best for use as a secondary savings account 4.4 /5 Score How do we score savings accounts We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks. APY 4.5/5 Minimum deposit and fees 5.0/5 Customer service 4.5/5 APY APY = Annual Percentage Yield. 3.60% Min. deposit to open $0 Branch access No About the bank BMO Alto is the online-only arm of BMO Financial Group. BMO Alto offers two deposit accounts: the BMO Alto online savings account and the BMO Alto online certificate of deposit. While the savings account earns a competitive APY, it ranks lower on our best list because it doesn't provide a mobile app to manage account transactions. Account access is available only through the BMO Alto website. However, the savings account is still worth considering because there are no monthly fees, minimum deposits required to open or minimum balances to maintain. The unlimited number of transfers and withdrawals permitted is an added benefit. This account is best paired with other bank accounts because it doesn't provide a debit card or ATM access. Money in this account can be accessed or deposited only through externally linked bank accounts. Monthly fees: $0 More details No monthly fees or balance requirements. Mobile check deposits via app. Limit of six withdrawals per statement cycle. About the bank More details BMO Alto is the online-only arm of BMO Financial Group. BMO Alto offers two deposit accounts: the BMO Alto online savings account and the BMO Alto online certificate of deposit. While the savings account earns a competitive APY, it ranks lower on our best list because it doesn't provide a mobile app to manage account transactions. Account access is available only through the BMO Alto website. However, the savings account is still worth considering because there are no monthly fees, minimum deposits required to open or minimum balances to maintain. The unlimited number of transfers and withdrawals permitted is an added benefit. This account is best paired with other bank accounts because it doesn't provide a debit card or ATM access. Money in this account can be accessed or deposited only through externally linked bank accounts. Monthly fees: $0 No monthly fees or balance requirements. Mobile check deposits via app. Limit of six withdrawals per statement cycle. Marcus by Goldman Sachs Best for managing savings and investment accounts together Read Marcus by Goldman Sachs Review 4.4 /5 Score How do we score savings accounts We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks. APY 4.0/5 Minimum deposit and fees 5.0/5 Customer service 4.0/5 APY APY = Annual Percentage Yield. 3.65% Min. deposit to open $0 Branch access No Read Marcus by Goldman Sachs Review About the bank Marcus by Goldman Sachs is the online-only banking arm of the investment behemoth. If you're looking to manage all of your savings and investment accounts in one place, Marcus might be the right fit. This bank offers competitive savings rates, along with several interest-earning deposit and investment accounts. In addition to high-yield rates, there's no minimum required to open a Marcus online savings account, no monthly maintenance fee and no minimum balance requirement. You can also contact a live customer service representative 24/7. Monthly fees: $0 More details No monthly fees, minimum deposit or balance requirements. Mobile check deposits via app. Does not accept cash deposits. About the bank More details Marcus by Goldman Sachs is the online-only banking arm of the investment behemoth. If you're looking to manage all of your savings and investment accounts in one place, Marcus might be the right fit. This bank offers competitive savings rates, along with several interest-earning deposit and investment accounts. In addition to high-yield rates, there's no minimum required to open a Marcus online savings account, no monthly maintenance fee and no minimum balance requirement. You can also contact a live customer service representative 24/7. Monthly fees: $0 No monthly fees, minimum deposit or balance requirements. Mobile check deposits via app. Does not accept cash deposits. What is a savings account? A savings account is an interest-earning deposit account that's often linked to checking accounts at financial institutions but can also be opened separately. It's designed to help you save for future expenses goals. This type of account gives you the freedom to access your money when you want, whether depositing or withdrawing. That's what makes it ideal for funds you'll need on a whim, like your emergency fund. Savings accounts at federally insured financial institutions are covered in the case of loss for up to $250,000 per person, per institution, making them a safe and low-risk place to park your cash. Choosing between a HYSA and a regular savings account It may be convenient to keep your savings and checking accounts at the same local brick-and-mortar bank you use for your checking account, especially if you've been with the bank for years and your accounts are already linked. But you may be missing out on competitive interest rates that can grow your savings. A high-yield savings account offers a higher APY than traditional savings accounts and can be found at online banks and credit unions. 'Some people assume they're going to get the best rates with brick-and-mortar banks like Bank of America, J.P. Morgan and Wells Fargo,' said Shang Saavedra, CNET Money expert and CEO of Save My Cents, a personal finance education platform. These large banks offer barely any interest on your savings, she said. Online-only banks don't have physical branches to maintain, which means lower overhead costs. Those banks can pass some of these savings down to customers through higher interest rates and fewer fees on savings accounts. Brick-and-mortar banks often charge a monthly service fee and often offer a lower APY. Credit unions return their profits to members in the form of higher savings rates and lower loan rates, allowing them to offer competitive savings accounts. However, there are some cases when a traditional savings account at a physical bank may work better for you. For example, if you're a restaurant server who gets cash tips, it might make sense to have a savings account at a bank with physical branches, said Anna N'Jie-Konte, a CNET Money expert and certified financial planner. You don't have to move all of your money to a new bank. CNET Money expert and founder of Crush Your Money Goals, Bernadette Joy, suggests keeping your everyday spending in your checking account at your brick-and-mortar bank for convenience. Then, you may link the account to a high-yield savings account to regularly transfer money to your savings and earn interest. "It's a small shift that leads to greater long-term financial rewards," said Joy. If you decide to switch to an online savings account, make sure the bank or credit union is insured by the Federal Deposit Insurance Corporation or National Credit Union Administration, said N'Jie-Konte. That way, your money is protected for up to $250,000 per person, per bank in case of bank failure. Another way to make sure the bank is insured is to look for the FDIC or NCUA certification number on the bank's website, Saavedra said. How to choose a savings account When choosing a savings account, consider these factors. Annual percentage yield The higher the APY, the more you can earn. Compare rates across multiple banks to determine which accounts offer the best return on your money. If your bank doesn't offer a competitive APY , compare rates among banks you feel comfortable with. There's no harm in opening multiple savings accounts , but make sure you can meet any minimum balance or deposit requirements. Online vs. brick-and-mortar bank Think about how you prefer to manage your money. If you're regularly paid in cash, for example, you may choose a bank with a physical location. Some online-only savings accounts don't offer ATM access or cash deposits , but you can transfer money between accounts when needed. N'Jie-Konte notes that feeling comfortable with your financial institution is also important. If you feel safer with a bank you can walk into and don't mind the trade-off of lower savings rates, a big bank, local credit union or neighborhood financial institution may be the right place to keep your savings. Savings account requirements Make sure you can meet any minimum balance or deposit requirements. Also watch out for APY thresholds — some banks may offer a high rate but only for the first $5,000 of your savings, for example. Before opening an account, read the fine print to understand the account's terms and make sure you feel comfortable with any requirements to avoid any surprise fees. Account features and perks How you manage your savings account matters. Most banks offer mobile check deposits to your savings account. Online-only banks tend to have longer transfer times when moving money between accounts. So you may have to wait around three days instead of withdrawing money immediately from an ATM with a traditional savings account, Soledad said. Pros and cons of opening a savings account Savings accounts have plenty of benefits, but there are also some drawbacks to consider. Pros Growing your savings: You can reach your savings goal faster by earning interest on your account balance. You can reach your savings goal faster by earning interest on your account balance. Federal protection: Balances at federally insured banks and credit unions are protected by the FDIC or NCUA for up to $250,000 per person, per institution. Balances at federally insured banks and credit unions are protected by the FDIC or NCUA for up to $250,000 per person, per institution. Low risk: A savings account is considered a safe place to keep your money since it's insured and doesn't face market volatility. Cons Other options may pay you more: Other low-risk savings options such as a CD may pay higher interest rates. Other low-risk savings options such as a CD may pay higher interest rates. Limited access to your funds: Some banks limit how many withdrawals you can make per month. If you need to access your money frequently, you could incur a fee. Some banks limit how many withdrawals you can make per month. If you need to access your money frequently, you could incur a fee. Fees: Some banks charge monthly maintenance fees that can eat into the interest you earn. How to open a savings account After you've narrowed down which account you want to open, complete the bank's application process. While this varies from bank to bank, here's what to expect. Choose a bank: Review different banks and credit unions to find the best option for your needs. Many financial institutions let you complete the application process online, but you can also open one in person if the bank has physical branches. Review different banks and credit unions to find the best option for your needs. Many financial institutions let you complete the application process online, but you can also open one in person if the bank has physical branches. Provide your information: Provide a government-issued form of ID to verify your identity. You'll also be asked to include other personal information, such as your Social Security number or Individual Taxpayer Identification Number, physical address and contact information. Provide a government-issued form of ID to verify your identity. You'll also be asked to include other personal information, such as your Social Security number or Individual Taxpayer Identification Number, physical address and contact information. Fund your account: Follow the prompts to complete the application and make the minimum deposit if your bank requires one. It's best to follow security practices and enable security features when completing the application to protect your information. Alternatives to savings accounts There are savings accounts designed for specific types of people, but you may be looking into other options for long-term savings or money you want to sock away to be less tempted to spend. Here are two options to consider. Money market account: A money market account comes with checking account features, such as a debit card, ATM access and check-writing abilities, while also earning a competitive APY. However, you may be limited to a set number or withdrawals per month. Certificate of deposit: A certificate of deposit offers a fixed interest rate on a one-time deposit for a set period. If you withdraw your money before the term ends, you'll pay an early withdrawal penalty, which is usually a few weeks or months of interest, depending on the bank. Our methodology CNET reviewed savings accounts at more than 50 traditional and online banks, credit unions and financial institutions with nationwide services. Each account received a score between one (lowest) and five (highest). The savings accounts listed here are all insured up to $250,000 per person, per account category, per institution, by the Federal Deposit Insurance Corporation or National Credit Union Administration. CNET evaluates the best savings accounts with a set of established criteria that compares annual percentage yields, monthly fees, minimum deposits or balances, and access to physical branches. None of the banks on our list charge monthly maintenance fees. An account will rank higher for offering any of the following perks: Account bonuses Automated savings features Wealth management consulting/coaching services Cash deposits Extensive ATM networks and/or ATM rebates for out-of-network ATM use An account will rank lower if it doesn't have a professional-looking website or doesn't provide an ATM card or if it imposes restrictive residency requirements or fees for exceeding monthly transaction limits. Savings accounts researched Alliant Credit Union, Ally, Amerant, America First FCU, American Express, Apple Federal Credit Union, Bank of America, BankPurely, Barclays, Bask Bank, Bellco Credit Union, Bethpage, BMO Alto, BMO Harris, Bread Savings, Capital One, Chase, CIBC Bank, CIT Bank, Citizens, Citizens Bank, Community Wide Federal Credit Union, Connexus Credit Union, Consumers Credit Union, Discover, Dollar savings Direct, First Internet Bank of Indiana, Forbright, Laurel Road, LendingClub, Marcus by Goldman Sachs, My Banking Direct, Newtek Bank, Panacea Financial, PenFed Credit Union, PNC, Popular Bank, Quontic Bank, RBMax, Rising Bank, SoFi, Synchrony, TAB Bank, TIAA Bank, U.S. Bank, UFB Direct, Upgrade Premier, Varo, Wells Fargo The editorial content on this page is based solely on objective, independent assessments by our writers and is not influenced by advertising or partnerships. It has not been provided or commissioned by any third party. However, we may receive compensation when you click on links to products or services offered by our partners.
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3 days ago
- Business
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Why Suze Orman and 2 Other Money Experts Think You Need a 12-Month Emergency Fund
For years, the personal finance rule of thumb has been to have an emergency fund replete with three to six months' worth of living expenses. This isn't a bad rule considering that it's savvy to keep your cash holdings low so that you can maximize investments, but often an emergency fund this size just isn't big enough. Find Out: Read Next: Some financial experts, including Suze Orman, Ramit Sethi and Elaine King of Family and Money Matters Institute, think you need a 12-month emergency fund. This may sound excessive, but consider the following reasons why, in 2025, this is a good amount to keep at the ready in a high-yield savings account (HYSA). Some industries are more volatile than others. The technology sector, for example, is shaping up to be increasingly unstable, with mass layoffs frequently sweeping the field. The automotive sector is also rocky, as is the travel sector. Competition for these jobs is getting fiercer as corporations cut costs. So, you may need a lot longer than three months to replace your job if you work in these fields. Explore More: If your family relies on you in full to keep them sheltered, clothed, fed and so on, you're all going to be in for an incredibly tough time should you lose even some of your income. An ample cushion in the form of a 12-month emergency fund could literally prevent you from falling into credit card debt as you work to get back on your feet. Every seasoned freelancer is familiar with those one or two clients who provide them a ton of work. Perhaps these clients have you on a monthly retainer, or maybe they pop up on a seasonal basis and flood you with the bulk of your annual income. And every seasoned freelancer also knows the impact of losing such a client. Nothing is forever, especially not in contract work. Freelancers don't get severances or access to Cobra health plans. They need a plush emergency fund in the likely event that their major payday falls through. When a recession strikes, all bets are off. Though the economy inevitably rebounds, there's no crystal ball that tells us when it will. There is always massive job loss and consequently weakened consumer spending which only leads to more job loss as companies struggle to stay afloat. If you're one of the many employment casualties, you'll want a plentiful emergency fund to ride out the storm. On average, people find a new job after five months of searching — but keep in mind, that's the average. There are many horror stories featuring people with strong resumes who've spent a year-plus job hunting after a layoff. More From GOBankingRates 10 Unreliable SUVs To Stay Away From Buying 4 Affordable Car Brands You Won't Regret Buying in 2025 This article originally appeared on Why Suze Orman and 2 Other Money Experts Think You Need a 12-Month Emergency Fund Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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3 days ago
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The Smartest High-Yield Stocks to Buy With $100 Right Now
UPS is a turnaround with a 6.7% yield and a price that's just at the cusp of $100. Brookfield Renewable Partners has a 6.5% yield and a long runway for growth. Enterprise Products Partners offers a 6.8% yield and steady distribution growth. 10 stocks we like better than United Parcel Service › You can buy some smart high-yield investments with as little as $100 if you take your time and act selectively. Right now, United Parcel Service (NYSE: UPS), Brookfield Renewable Partners (NYSE: BEP), and Enterprise Products Partners (NYSE: EPD) all have 6% yields or higher, and share prices that are below $100. Here's a look at why each one might be a good fit for your portfolio right now. United Parcel Service (or UPS) is one of the largest package delivery services in the world. During the coronavirus pandemic, investors bid up its shares because they extrapolated demand from people staying at home too far into the future. When the world opened back up, UPS fell short of Wall Street's lofty expectations. At that point, the company started to revamp its business, focusing on cost-cutting and increasing margins. When it finally looked like UPS had hit an inflection point, the company announced it was voluntarily reducing the business it was doing with Amazon, its largest customer. And shortly thereafter, the tariff upheaval started. The stock remains in Wall Street's doghouse even though it is making progress on its turnaround. In fact, the move away from Amazon is really a sign of strength, not weakness. UPS is basically trying to move away from a high-volume, low-margin customer. The 6.7% dividend yield is a sign that investors are worried about the future. But if you don't mind owning a turnaround stock, UPS looks like it has its business trending in the right direction again, even if the rebound is still a few years away. The lofty yield is good compensation for waiting. Brookfield Renewable Partners owns a portfolio of renewable energy assets, including in the hydroelectric, solar, wind, battery, and nuclear categories. Its portfolio is spread across the globe, with operations in North America, South America, Europe, and Asia. It is as close to a one-stop shop in the renewable power sector as you can find on Wall Street. And it has a lofty 6.5% distribution yield. Part of the reason Brookfield's yield is so high is that investors have lost interest in clean energy stocks. That's an opportunity for those who think long term. In the U.S. market, wind, solar, and storage generation are expected to increase by 300% between 2020 and 2050, according to the National Electrical Manufacturers Association. That's all part of a massive increase in the demand for electricity that is taking place, with demand growth over the next 20 years expected to be six times larger than over the last 20 years. This is a global phenomenon, and Brookfield Renewable Partners is well-positioned to benefit all along the way. Meanwhile, you can collect a huge yield while the slow and steady shift from dirtier carbon energy sources toward cleaner alternatives plays out. Two things beyond the lofty 6.8% yield make this master limited partnership (MLP) stand out. The first is the more important one because it is the business behind the yield. Enterprise Products Partners owns midstream energy assets, like pipelines, that help to move oil and natural gas around the world. It charges fees for the use of these assets so it generates reliable cash flows through the entire energy business cycle. Add in an investment-grade balance sheet and distribution coverage by a 1.7 multiple in 2024, and this is a rock-solid income stock. A lot would have to go wrong for a distribution cut to be on the table. In fact, given the $7.6 billion capital investment plan in the works, it is far more likely that investors will see more distribution increases in the future. And that brings up the second reason to like Enterprise: It has increased its distribution annually for 26 consecutive years and counting. This midstream business is boring and reliable, and that's exactly why you'll likely find it to be a smart high-yield investment to add to your portfolio right now. There is more than one way to add a high yield to your dividend portfolio. UPS is a turnaround story. Brookfield Renewable Partners is an option with a strong growth story behind it. And Enterprise is a boring high-yield business that even the most conservative of income investors could easily love. Before you buy stock in United Parcel Service, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and United Parcel Service wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Reuben Gregg Brewer has positions in Brookfield Renewable Partners. The Motley Fool has positions in and recommends Amazon. The Motley Fool recommends Brookfield Renewable Partners, Enterprise Products Partners, and United Parcel Service. The Motley Fool has a disclosure policy. The Smartest High-Yield Stocks to Buy With $100 Right Now was originally published by The Motley Fool
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4 days ago
- Business
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1 No-Brainer High-Yield Stock to Buy With $1,000 Right Now
Investors often take on more risk than they realize when buying high-yield dividend stocks. AGNC Investment has a massive 16% dividend yield. Toronto-Dominion Bank has a more sustainable and reliable 4.5% yield. 10 stocks we like better than AGNC Investment Corp. › If you have $1,000 to invest and are looking for high-yield stocks, you might be tempted to try to maximize income. You could do that with the purchase of a stock like AGNC Investment (NASDAQ: AGNC), which has a huge 16%+ dividend yield. Here's why it would be a no-brainer to buy Toronto-Dominion Bank (NYSE: TD) instead, despite a much lower yield. AGNC Investment is a mortgage real estate investment trust (REIT), a fairly complicated niche of the REIT sector. The company buys mortgages that have been rolled up into bond-like securities. The goal is to make the difference between the interest it collects on the securities it buys and its operating costs. The REIT uses leverage in an attempt to enhance returns, and that huge 16%+ yield isn't actually as attractive as it seems. As the chart below highlights, AGNC Investment's dividend has been in decline for years after a brief jump following its initial public offering (IPO). The share price has tracked along with the dividend, jumping after the IPO and then steadily declining. Technically speaking, investors have made out OK because AGNC Investment has paid out more in dividends than it has lost in share price. But that's a nuanced view of things. Most dividend investors are looking to own stocks that have stable to growing dividends and stable to growing stock prices. Reaching for yield with AGNC Investment is likely to leave you with a bad taste in your mouth if you need income to pay for living expenses. Toronto-Dominion Bank, or TD Bank for short, is a much more reliable dividend stock. Yes, the 4.5% yield is much lower, but the dividend hasn't been cut regularly, even during hard times. For example, TD Bank didn't have to reduce its dividend during the Great Recession like many of its U.S. peers. And it increased the dividend at the start of 2025, despite facing some company-specific troubles. While TD Bank's dividend yield is lower than that of AGNC Investment, it is actually high in other ways. For starters, it's high relative to the 1.3% yield of the S&P 500 index (SNPINDEX: ^GSPC). It is high relative to the finance industry's 2.7%, and it is historically high for TD Bank. In fact, the last time the dividend was as high as it is today was during the Great Recession and the coronavirus pandemic's height. In other words, TD Bank is offering an attractive yield. The dividend is so high because TD Bank's U.S. business has weak internal controls against money laundering and it was used for that purpose. U.S. regulators were not pleased and have barred the company from growing in the U.S. market until they're satisfied that the internal control weakness is resolved. TD Bank's large and diversified Canadian business is still doing just fine, but the U.S. division was expected to be the bank's growth engine. It could take a few years to resolve this issue, and investors have shunned the stock because of this. Only TD Bank remains a strong financial institution with little risk of a dividend cut. In fact, the bank reported second-quarter 2025 earnings that beat Wall Street expectations. In other words, the business is managing well even in the face of adversity. It is, at the end of the day, a relatively low-risk and still high-yield turnaround play. If you think you've found a dividend stock that will provide you with a reliable income stream with AGNC Investment, well, history suggests you could be in for a very bad surprise. If you temper your income expectations and buy TD Bank right now, however, you'll likely be setting yourself up for years of reliable dividends and a stock price recovery as it works through its company-specific headwinds. Before you buy stock in AGNC Investment Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AGNC Investment Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Reuben Gregg Brewer has positions in Toronto-Dominion Bank. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 1 No-Brainer High-Yield Stock to Buy With $1,000 Right Now was originally published by The Motley Fool
Yahoo
4 days ago
- Business
- Yahoo
1 No-Brainer High-Yield Stock to Buy With $1,000 Right Now
Investors often take on more risk than they realize when buying high-yield dividend stocks. AGNC Investment has a massive 16% dividend yield. Toronto-Dominion Bank has a more sustainable and reliable 4.5% yield. 10 stocks we like better than AGNC Investment Corp. › If you have $1,000 to invest and are looking for high-yield stocks, you might be tempted to try to maximize income. You could do that with the purchase of a stock like AGNC Investment (NASDAQ: AGNC), which has a huge 16%+ dividend yield. Here's why it would be a no-brainer to buy Toronto-Dominion Bank (NYSE: TD) instead, despite a much lower yield. AGNC Investment is a mortgage real estate investment trust (REIT), a fairly complicated niche of the REIT sector. The company buys mortgages that have been rolled up into bond-like securities. The goal is to make the difference between the interest it collects on the securities it buys and its operating costs. The REIT uses leverage in an attempt to enhance returns, and that huge 16%+ yield isn't actually as attractive as it seems. As the chart below highlights, AGNC Investment's dividend has been in decline for years after a brief jump following its initial public offering (IPO). The share price has tracked along with the dividend, jumping after the IPO and then steadily declining. Technically speaking, investors have made out OK because AGNC Investment has paid out more in dividends than it has lost in share price. But that's a nuanced view of things. Most dividend investors are looking to own stocks that have stable to growing dividends and stable to growing stock prices. Reaching for yield with AGNC Investment is likely to leave you with a bad taste in your mouth if you need income to pay for living expenses. Toronto-Dominion Bank, or TD Bank for short, is a much more reliable dividend stock. Yes, the 4.5% yield is much lower, but the dividend hasn't been cut regularly, even during hard times. For example, TD Bank didn't have to reduce its dividend during the Great Recession like many of its U.S. peers. And it increased the dividend at the start of 2025, despite facing some company-specific troubles. While TD Bank's dividend yield is lower than that of AGNC Investment, it is actually high in other ways. For starters, it's high relative to the 1.3% yield of the S&P 500 index (SNPINDEX: ^GSPC). It is high relative to the finance industry's 2.7%, and it is historically high for TD Bank. In fact, the last time the dividend was as high as it is today was during the Great Recession and the coronavirus pandemic's height. In other words, TD Bank is offering an attractive yield. The dividend is so high because TD Bank's U.S. business has weak internal controls against money laundering and it was used for that purpose. U.S. regulators were not pleased and have barred the company from growing in the U.S. market until they're satisfied that the internal control weakness is resolved. TD Bank's large and diversified Canadian business is still doing just fine, but the U.S. division was expected to be the bank's growth engine. It could take a few years to resolve this issue, and investors have shunned the stock because of this. Only TD Bank remains a strong financial institution with little risk of a dividend cut. In fact, the bank reported second-quarter 2025 earnings that beat Wall Street expectations. In other words, the business is managing well even in the face of adversity. It is, at the end of the day, a relatively low-risk and still high-yield turnaround play. If you think you've found a dividend stock that will provide you with a reliable income stream with AGNC Investment, well, history suggests you could be in for a very bad surprise. If you temper your income expectations and buy TD Bank right now, however, you'll likely be setting yourself up for years of reliable dividends and a stock price recovery as it works through its company-specific headwinds. Before you buy stock in AGNC Investment Corp., consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and AGNC Investment Corp. wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Reuben Gregg Brewer has positions in Toronto-Dominion Bank. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 1 No-Brainer High-Yield Stock to Buy With $1,000 Right Now was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
