Top 5 Free Savings Accounts (2024-2025)

 Free savings accounts allow you to keep money that you don't need to access on a regular basis without imposing fees that deplete your hard-earned earnings. These accounts can be formed in conjunction with a checking account where you store your daily spending money, or they can be opened as stand-alone savings accounts linked to an outside checking account.

Top 5 Free Savings Accounts (2022-2023)

The greatest free savings accounts should assist you in reaching your financial objectives. This might include paying a high-interest rate on your savings or providing useful tools to help you save more, such as regular transfers. 

Free savings account from a bank should not have a minimum balance requirement, and it should have a low or no minimum initial deposit requirement. They should ideally have some added features that urge you to budget and save more. The following are the top free savings accounts.

5 Best Free Savings Accounts for 2022 - 2023

5- Online Savings Account at Ally Bank (Best Overall)

Top 5 Free Savings Accounts (2022-2023)

Why Did We Pick It?

Ally Bank is the greatest overall free savings account because of its high APY, low fees, and other tools that help you increase your savings rate.

• Minimum deposit: $0
• Fees: None
• APY: 0.60%

Pros

• High Annual Percentage Yield
• There are no fees or account minimums.
• Savings boosters and buckets might assist you in increasing your savings rate.

Cons

• There is no ATM card.
• There are no physical branches.
• Outgoing domestic wire transfers incur a $20 charge.

There is no minimum initial deposit requirement, no minimum balance requirement, and no monthly service fees with Ally Bank's Online Savings Account. In addition, you'll get a 0.60 percent APY to help you boost your savings account balance.

Ally Bank offers a few distinctive features that encourage you to raise your savings rate. Instead of opening several accounts for different savings goals, Ally Bank allows you to construct "savings buckets" within your account that you may name and divide your money throughout. 

Recurring transfers, round-ups, and the option to link a bank account allow Ally to examine where you have a little wiggle space in your budget to save more are among its savings boosters.

Because this bank is entirely online, they can provide products with cheaper costs and larger returns. However, you will be unable to visit any physical branches. 

Finally, while this savings account does not include an ATM card, you may link it to an Ally checking account if you want fast access to your funds. Ally Bank deposits are FDIC-insured up to $250,000.

4- Axos Bank High Yield Savings Account (Best for High-Yield)

Top 5 Free Savings Accounts (2022-2023)

Why Did We Pick It?

No other free savings account delivers such a constant high APY. Furthermore, there is no minimum balance requirement to earn it, which is why Axos Bank's High Yield Savings is the greatest high-yield savings account.

• Minimum deposit: $250
• Fees: None
• APY: Up to 0.61%

Pros

• High Annual Percentage Yield
• There are no monthly fees or account minimums.
• On request, a free ATM card is provided.

Cons

• The minimum starting deposit is $250.
• On balances of $25,000 or higher, the APY is reduced.
• There are no physical branches.

If you're seeking a high income on your savings, 0.61 percent is difficult to better, thus Axos Bank is the finest option for high-yield free savings. You don't have to pay any monthly fees or keep a minimum amount to receive interest, and the minimum starting deposit is $250, which is still achievable for many people. You'll also receive a free ATM card upon request, allowing you to effortlessly access your savings.

However, if your account balance is $25,000 or over, the APY drops to 0.25 percent. You will only receive 0.15 percent if you have more than $100,000 in your account. As a result, this account is suitable for balances under $25,000. 

Once you've surpassed the $25,000 threshold, you may maintain any excess cash in another savings account or investigate alternative high-yielding products such as a certificate of deposit (CD) or money market account.

Axos is FDIC-insured, meaning your money is safe for up to $250,000. This bank is only available online, thus it is suitable for those who are familiar with internet and mobile banking.

3- High Yield Savings at Synchrony Bank (Best for ATM Access)

Top 5 Free Savings Accounts (2022-2023)

Why Did We Pick It?

Synchrony Bank is one of the few high-yield savings accounts that include a free ATM card. You may use it at any of Accel's 400,000+ surcharge-free ATMs, and you'll even earn up to $5 in ATM fee refunds every statement cycle, making Synchrony's savings account the best for ATM access.

• Minimum deposit: $0
• Fees: None
• APY: 0.85%

Pros

• High Annual Percentage Yield
• There are no fees or account minimums.
• Optional complimentary ATM card
• Domestic ATM fee reimbursements of up to $5 each statement cycle

Cons

• There are no checks.
• There is no checking account.
• There are no physical branches.

With a Synchrony Bank savings account, you may acquire a free ATM card so you always have simple, rapid access to your cash. You may use one of Accel's 400,000+ surcharge-free ATMs, and if you sometimes use an out-of-network ATM, you'll receive up to $5 in domestic ATM fee reimbursements every statement cycle. 

These characteristics make Synchrony the best option for anyone who values ATM access.

Synchrony Bank does not provide checking accounts, but with the ATM access provided by this savings account, you may not need one. 

You'll also earn a competitive APY regardless of your amount, and there are no fees or minimum balance limitations with this account.

Your Synchrony accounts are FDIC-insured up to $250,000. This bank is only available online, therefore it's perfect for people who don't need to bank at a physical location.

2- Betterment Cash Reserve (Best for Long-Term Savings)

Top 5 Free Savings Accounts (2022-2023)

Why Did We Pick It?

Betterment provides the best setup for quickly investing your money based on numerous goals, and you can connect their Cash Reserve savings account to your many investment goals. This allows you to effortlessly transfer cash between savings and investing accounts, making it suitable for long-term savings.

• Minimum deposit: $10
• Fees: None
• APY: 0.10%

Pros

• There are no fees or account minimums.
• FDIC protection on qualified accounts up to $1 million
• Up to five transfers between savings and investment accounts each day

Cons

• Not the best APY
• The initial investment is $10.
• There are no physical branches.

If you're searching for a location to save your long-term investments, you'll want to earn a higher interest rate than most savings accounts can provide. While Betterment's Cash Reserve account only yields 0.10 percent APY (which is decent, but not as high as some of the top free savings accounts), you may also establish investment accounts with Betterment to save for a house or retirement.

Once you've done this, it should be simple to shift money between your savings and other investment goals, allowing you to earn more on money that will stay put for a while. This makes it the perfect option for anybody trying to save for the long term.

Betterment charges no fees, and you may start a Cash Reserve account with as little as $10. You can also be insured by the FDIC for up to $1 million, which is significantly more than the typical $250,000. 

This, however, is contingent on your money being adequately spread over at least four separate Program Banks, each of which offers up to $250,000 in FDIC protection.

Betterment does not have any physical facilities, but its mobile app is incredibly user-friendly and allows you to conduct all of your banking and savings duties from your phone.

1- Capital One 360 Performance Savings (Best for Customer Service)

Top 5 Free Savings Accounts (2022-2023)

Why Did We Pick It?

Capital One not only provides a 24/7 customer care line, but it also has hundreds of Capital One Cafes around the country where you can obtain in-person assistance and even free one-on-one financial coaching. Capital One is the greatest choice for customer experience since no other online bank or free savings account gives this benefit.

• Minimum deposit: $0
• Fees: None
• APY: 0.60%

Pros

• High Annual Percentage Yield
• There are no fees or account minimums.
• Capital One Cafe locations offering free money counseling

Cons

• There is no ATM card.
• Capital One Cafes are only seen in big cities.

Because of its mix of 24/7 remote service and a large number of physical branch locations, Capital One's 360 Performance Savings account provides the finest customer experience of all the best free savings accounts. 

You may even stop by any Capital One Cafe for a cup of coffee and some free one-on-one financial advice. You'll have three sessions, and at the conclusion, you should have a thorough financial plan for the future without spending a dime.

This savings account also has a high annual percentage yield, no monthly fees, and no minimum balance restrictions. Regardless of your balance, you will receive the same 0.60 percent APY. Your money is FDIC-insured for up to $250,000, and automated transfers can help you save more.

Top 5 Free Savings Accounts (2022-2023)

When it comes to the finest free savings accounts, you want an account with low fees and a high APY, as well as some added bells and whistles that motivate you to save more. Ally Bank's Online Savings Account contains all of these features, which makes it the best overall.

Anyone can create free savings account with Ally and see their savings grow quicker owing to the bank's 0.50 percent APY and savings perks like the opportunity to round up purchases into savings or have Ally assess a connected checking account for missed savings opportunities. The online and mobile banking experience is perfect, and you know your money is safe because to the FDIC guarantee on this account.

How to Select the Best No-Fee Savings Accounts

The greatest free savings accounts should make saving money easy for you. Here are some crucial things to look for:

• APY: This is the rate of return on your savings. The greater the APY, the more you'll earn to supplement your savings.
• Initial deposit: Ensure that you have adequate funds to cover the mandatory opening deposit. Many free savings accounts demand no minimum balance, while some may require $10, $25, or even $250.
• Monthly maintenance costs: Avoid savings accounts that carry monthly maintenance fees, even if you may avoid them by maintaining a minimum level. These fees will deplete your funds rather than help them develop.
• ATM card: Some free savings accounts include an ATM card, while others do not. If you don't require rapid and simple access to your money, an ATM card isn't a vital feature. However, if you don't have one, you'll need to move money from your savings to a checking account to access your cash, which might take a few business days.
• Money boosters: If you want some extra help boosting your savings, check for a savings booster account. This can include automated transfers, savings buckets, or the option to round up your purchases and save the difference.

Traditional Savings Accounts vs. Tax-Free Savings Accounts

Online banks frequently provide free savings accounts that have no monthly fees. Furthermore, they frequently have a higher interest rate and lower initial deposit requirements.

Traditional savings accounts are primarily offered by large national banks and need a monthly maintenance fee to keep the account active. You may frequently avoid the cost by keeping a minimum amount, but if your balance falls below that level even for a month, you will be charged. 

Traditional savings accounts often pay extremely little or no interest (a 0.01 percent annual percentage yield is common) and have higher beginning deposit requirements.

Are FDIC-insured free savings accounts available?

The FDIC insures free savings accounts up to $250,000. While this is the norm, certain online banks can provide a higher level of FDIC protection by distributing your savings over different program banks. For example, if they split your $1 million amount evenly across four program banks, each of which is FDIC-insured up to $250,000, you may be able to have your entire $1 million covered.

Do Free Savings Accounts Pay High-Interest Rates?

Free savings accounts typically provide larger returns than standard savings accounts. There are several free savings accounts that give an APY of 0.40 percent to 0.50 percent, but typical savings accounts may only pay 0.01 percent to 0.03 percent.

Is ATM access available with free savings accounts?

Some free savings accounts, although not all, have ATM access. If your free savings account does not come with an ATM card, you may normally create a checking account with the same bank to have access to ATMs.