Best Free Savings Accounts Of May 2024

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 May 3, 2024.

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.

• What Is a No-Fee Savings Account?
• Regular Savings Account Fees
• Pros and Cons of Free Savings Accounts
• Traditional Savings Account vs. Free Savings Account
• How To Choose a Free Savings Account
• How To Open a Free Savings Account

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:

• Wire transfer fee. Banks often charge fees for outgoing wire transfers to other financial institutions.
• Early account closing fee. Your bank may require you to keep your account open for a specific period or face a penalty for closing it early.
• Excessive transactions fee. Changes by the federal government to Regulation D made it easier to access your savings without penalties, but some banks still charge a fee if you surpass transaction limits set for the account.
• Paper statement fees. With banks moving more toward electronic statements, you could pay a fee if you opt to receive a paper copy of your bank statement.

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.

	Traditional savings account	Free savings account
Monthly maintenance fees	Yes	No
Other bank fees	Yes	Sometimes
APYs	Often have low APYs	Often have competitive APYs
In-person banking	Yes	Sometimes
FDIC insurance	Yes	Yes
Where to open	Bank or credit union	Online bank

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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:

• Hidden fees. Some banks and credit unions make it easy to find the fees associated with savings accounts. Others may require some digging online or a call to customer service to get answers. You may find common bank fees listed on the bank’s website under the specific account or in its FAQs section. Other places to look are online fee schedules and deposit account agreements.
• Customer service. Some credit unions and banks offer more customer service options than others. Find a bank that offers convenient ways to receive help quickly.
• APY. High-yield savings accounts offer some of the best interest rates available anywhere. Finding a bank or credit union with a competitive APY will help maximize funds kept in a savings account.

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

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.

Free 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.

Recap: Best Free Savings Accounts of 2024

• Varo Savings Account: Best for High APY
• Sallie Mae Bank SmartyPig Account: Best For No Fees
• Marcus by Goldman Sachs High-Yield Online Savings Account: Best For Same-Day Transfers
• Discover® Bank Online Savings Account: Best For Mobile Banking
• Synchrony Bank High Yield Savings: Best For ATM Access

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, 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, 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.

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