The Best Savings Account Rates in June 2018

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Featured Savings Accounts

Member FDIC

Synchrony Bank

High Yield Savings

APY

1.75%

Min to earn APY

None

APPLY NOW

on Synchrony Bank's secure site

Member FDIC

Goldman Sachs Bank USA

High-yield Online Savings Account

APY

1.70%

Min to earn APY

$1.00

APPLY NOW

on Goldman Sachs Bank USA's secure site

Member FDIC

Barclays

Online Savings Account

APY

1.65%

Min to earn APY

None

APPLY NOW

on Barclays' secure site

Member FDIC

American Express National Bank

High Yield Savings Account

APY

1.65%

Min to earn APY

None

APPLY NOW

on American Express National Bank's secure site

Member FDIC

Citibank

Citi Savings Account

APY

1.60%

Min to earn APY

$10,000

APPLY NOW

on Citibank's secure site

Member FDIC

Ally Bank

Online Savings Account

APY

1.65%

Min to earn APY

None

APPLY NOW

on Ally Bank's secure site

Tired of earning pennies on your savings account balance? It’s time you took a look at the best savings accounts to keep your money secure and accessible while earning a little more interest. And we’ve got ’em for you — personal, business, health, installment and children’s savings accounts. Take a look and decide what’s best for you.

We used data from DepositAccounts.com, a LendingTree company, to compare savings account products by annual percentage yield (APY) in five categories: personal, business, health, installment and children’s. We excluded institutions with a health rating below a B, as well as credit unions with very restrictive membership requirements.

From there, we chose the two savings accounts with the highest APY in each category. If the top two savings accounts had the same APY, we broke the tie by choosing the institution with the least fluctuation in its rate history. (We consider that a better choice than an account with rates that tend to change often.)

All products discussed on this page are FDIC- or NCUA-insured.

Online Savings Accounts

Northpointe Bank

Ultimate Savings

APY

2.05%

Min to earn APY

$25,000

APPLY NOW

on Northpointe Bank's secure site

PurePoint Financial

Online Savings

APY

1.90%

Min to earn APY

$10,000

APPLY NOW

on PurePoint Financial's secure site

Business Savings Accounts

Capital One

Spark Business Savings - 1st year promo

APY

1.75%

Min to earn APY

None

APPLY NOW

on Capital One's secure site

Community Bank of Pleasant Hill

Business Premier Money Management Account

APY

1.65%

Min to earn APY

None

APPLY NOW

on Community Bank of Pleasant Hill's secure site

Health Savings Accounts

Connexus Credit Union

Health Savings Account

APY

2.00%

Min to earn APY

$15,000

APPLY NOW

on Connexus Credit Union's secure site

Evansville Teachers Federal Credit Union

Health Savings Account (HSA)

APY

1.86%

Min to earn APY

$500

APPLY NOW

on Evansville Teachers Federal Credit Union's secure site

Installment Savings Accounts

Associated Credit Union

Safari Savings Club

APY

4.00%

Min to earn APY

$10.00

APPLY NOW

on Associated Credit Union's secure site

Service Credit Union

Christmas / Holiday Club

APY

3.00%

Min to earn APY

$0.01

APPLY NOW

on Service Credit Union's secure site

Children's Savings Accounts

Spectrum Credit Union

MySavings

APY

7.00%

Min to earn APY

$25.00

APPLY NOW

on Spectrum Credit Union's secure site

BECU (Boeing Employees Credit Union)

Early Saver Savings

APY

6.17%

Min to earn APY

None

APPLY NOW

on BECU (Boeing Employees Credit Union)'s secure site

The difference between a savings account and a CD

Although you’re limited to six withdrawals or transfers monthly when you invest in a savings account, you have regular access to make deposits. With certificates of deposit (CDs), your money is locked into the investment for a set period of time. If you withdraw your funds before the CDs maturity date, you may be subject to early-withdrawal penalties that will greatly reduce the amount of interest you earn.

In general, CDs have a higher interest rate than savings accounts. For example, at the time of this writing, you could find an 18-month CD with a 2.70% APY, while a personal savings account will only get you 2.05% at the most. Plus, savings account rates can change at any time, so your returns from a CD are more predictable. So if you’re able to invest your money for a year or up to five, CDs will offer you a better rate of return on your investment.

Of course, neither CDs nor savings accounts are very lucrative long-term investments.

Considerations concerning the best savings accounts

Withdrawal limits and penalties

All savings accounts are limited to six withdrawals or transfers per month by Regulation D. After that, it’s up to the bank to decide how much it’ll charge you per transaction. The bank can also close your account or convert it to a checking account if you make excessive withdrawals or transfers. Other penalties to consider when opening a savings account include:

  • Minimum balance fee
  • Account inactivity fee
  • Early account closing fee
  • Overdraft fee
  • Extended overdraft fee
  • Return-item fee

Is it better to save with a bank or a credit union?

While there are some compelling reasons why it’s better to go with a credit union over a bank — lower fees, higher interest on investments, more personalized service — the choice is ultimately up to you. With banks, the money in your savings account is FDIC-insured up to $250,000. Credit unions have similar insurance through the NCUA. Before you invest, verify that your institution is a member of either of these two entities.

If you’re simply trying to get the best rate, there’s really no reason not to go with either a bank or a credit union. But you’ll also want to look at the minimum amount needed to open the account (and make sure you have that to invest), and you’ll want to make sure you meet any requirements needed to join the credit union. In some cases, you may need to shell out $10 to $30 to join an organization and become a member.

Pro tip: Do the math, and make sure it’s worth it based on the return you’ll be getting. Sometimes, after you subtract the membership fee, the amount you’re making will be less than what you could have made at an institution with no fees but a lower rate.

Is it better to open a savings account with a brick-and-mortar or online institution?

Having a personal relationship with your banker has its benefits. Therefore, if you have the option between two financial institutions, everything being equal, choose the brick-and-mortar option. However, all things are rarely equal. In fact, in many cases, you’re going to get some of the best rates from online-only institutions. Don’t let that be an impediment. In most cases, you’ll have plenty of online options for accessing your account and your money.

And if you go with a credit union, consider shared banking as an option — you essentially do your banking at a credit union near you as if it were your financial institution, but keep your accounts with the other credit union.

How often do rates change on savings accounts?

The Federal Open Market Committee holds eight meetings each year to discuss economic conditions and adjusts interest rates accordingly. If and when the committee adjust rates, financial institutions may follow with an adjustment to their savings account rates, but it’s not necessarily going to happen quickly.

Banks and credit unions also use savings rates to attract customers. That’s why you’ll see special and limited-time offers that sometimes beat the highest rates available — lenders are courting your business.

Before you commit, ask about the regular rate to get an idea of what you might earn after the promo period ends.

Why would I need a business savings account?

Setting profits aside in a specific business savings account is one of the best ways to ensure that your company has the funds it needs to grow or weather an emergency. However, not every business needs a business savings account. That’s particularly true for small-business owners who are just starting out.

Rather than a business savings account, small-business owners may want to start by establishing a business checking account. Separating your personal and business checking accounts makes recordkeeping easier. Great records make it easier to file taxes and to keep your business and personal finances separate. Having a separate business checking account can also offer your company a degree of business credibility, and business checking accounts often allow multiple signers to have signing authority.

Even though business checking accounts don’t pay very much interest, the Small Business Administration recommends it as your first business bank account. A business checking account allows you to make regular payments for business expenses, but a business savings account is designed to hold savings and may not allow frequent withdrawals to pay expenses.

Once your company starts making a profit, you’ll want to start thinking about opening a business savings account. A business savings account will offer a modest return on your deposits, and it can work as collateral for a business loan if you want to expand your business. A business savings account is also a great place to set aside funds for mid-term needs, such as quarterly tax payments.

Keep in mind: All savings accounts are limited to six withdrawals or transfers per month by Regulation D. Excessive withdrawals and transactions may carry a fee, which will vary by bank. The bank can also close your account or convert it to a checking account if you make excessive withdrawals or transfers.