How to Choose the Best Savings Account in 2025
Selecting the best savings account is an important decision when dealing with your money. A good savings account helps you build your money, invest it, and still earn interest over time. In 2025, you will have many options available, and it can be hard to know which one to choose. In this guide, we’re going to take you through how to make the best savings account decision and provide you with some of the top choices for this year.
Why Should You Open a Savings Account?
A savings account is a secure place to keep your money and earn interest while keeping it. While it won’t make you rich, it offers several benefits:
- Security: Banks protect your money, and if it’s a government-insured account, like in the U.S. (FDIC insurance), then up to $250,000 per depositor is insured.
- Liquidity: Savings accounts provide easy access to your money in case of emergencies.
- Interest Earnings: Unlike checking accounts, savings accounts typically earn interest, boosting your money over the long run.
Essential Considerations to Understand When Selecting a Savings Account
Interest Rate (APY)
What It Means: The Annual Percentage Yield (APY) is the interest you earn on your savings. The higher the APY, the more interest you will accumulate over time.
Why It Matters: A higher APY can significantly increase the growth of your savings, especially if you’re saving long-term.
Fees
What It Means: Some savings accounts charge fees, such as monthly maintenance fees or withdrawal penalties. Look for accounts with low or no fees to maximize your savings.
Why It Matters: Fees can eat into your interest earnings, so it’s important to choose an account with minimal fees.
Minimum Balance Requirements
What It Means: Some savings accounts require you to maintain a minimum balance in order to avoid fees or earn the highest interest rate.
Why It Matters: If you’re new to saving, search for accounts with low or no minimum balance requirements to make your management easier.
Accessibility
What It Means: Consider how easy it is to access your money. Some accounts allow unlimited withdrawals, while others limit the number of transactions you can make each month.
Why It Matters: If you need quick access to your savings in an emergency, choose an account with easy access.
Online and Mobile Banking Features
What It Means: Many banks offer online and mobile banking options for easy account management, deposits, and transfers.
Why It Matters: Having access to your account through a mobile app or website can make managing your savings more convenient.
Top Picks for Savings Accounts in 2025
Here are some of the best savings accounts to consider in 2025 based on interest rates, fees, and overall convenience:
1. High-Yield Online Savings Accounts
What It Is: Online banks typically offer high-yield savings accounts with higher APYs compared to traditional savings accounts.
Why It’s Great: Online savings accounts often have no monthly fees and higher interest rates because they have lower overhead costs than brick-and-mortar banks.
Top Picks:
- Ally Bank Online Savings Account: Offers a competitive APY with no monthly fees.
- Marcus by Goldman Sachs: Known for high interest rates and no minimum deposit or fees.
2. Traditional Savings Accounts (Brick-and-Mortar Banks)
What It Is: These savings accounts are offered by banks with physical branches, making it easier to deposit cash.
Why It’s Great: If you prefer in-person banking and need to deposit cash, a traditional savings account may be more convenient.
Top Picks:
- Chase Savings Account: Provides access to a wide network of branches and ATMs, with the option to link to a checking account for easy transfers.
- Wells Fargo Way2Save Savings Account: Offers a low opening deposit requirement and a savings tool to help you transfer funds into your savings automatically.
3. Credit Union Savings Accounts
What It Is: Credit unions are nonprofit institutions that offer competitive interest rates and lower fees compared to traditional banks.
Why It’s Great: Credit unions often provide better customer service and lower fees, making them a great option for people who want a community-oriented banking experience.
Top Picks:
- Alliant Credit Union High-Rate Savings Account: Offers excellent APY with no monthly service charges.
- Connexus Credit Union Savings Account: Ideal for those who qualify for membership, offering high interest rates and low fees.
4. Cash Management Accounts (CMAs)
What It Is: CMAs are offered by investment firms and combine features of savings and checking accounts with the added benefit of higher interest rates.
Why It’s Great: If you want to earn a higher rate than a traditional savings account while still having easy access to your funds, a CMA might be a good option.
Top Picks:
- SoFi Money Cash Management Account: Offers high interest rates, no fees, and worldwide ATM access.
- Fidelity Cash Management Account: Competitive interest rates, no monthly fees, and FDIC insurance.
How to Maximize Your Savings Account
- Set Savings Goals: Whether you’re saving for an emergency or a specific target, having defined savings goals helps you stay focused and motivated.
- Automate Your Savings: Set up automatic transfers from your checking account to your savings account each month. This way, you’ll save consistently without thinking about it.
- Avoid Withdrawing Frequently: The more often you withdraw from your savings, the less interest you will earn. Try to keep withdrawals to a minimum and use your savings only for emergencies or planned expenses.
- Shop Around for Better Rates: Interest rates fluctuate, so periodically shop around to find an account with a higher APY.
FAQs About Savings Accounts
What’s the difference between a savings account and a checking account?
A checking account is used for daily transactions, while a savings account is for storing money and earning interest over time.
Can I have a savings account without any money?
Many online banks offer savings accounts with no minimum deposit requirement, unlike traditional banks, which may have a small initial deposit requirement.
How often will I be charged fees for my savings account?
Fees can vary by bank. Some accounts charge monthly maintenance fees, while others may charge fees for exceeding the withdrawal limit.
What is the best savings account I can find?
Compare interest rates, fees, minimum balance requirements, and accessibility options. Check to see if the account fits your needs, whether that’s higher interest, fewer fees, or ease of access.
