A savings account is essential if you want to grow your wealth. These accounts are federally insured financial products that earn an annual percentage yield (APY). Digital banks offer some of the best APYs in the market, more than ten times the national average APY of 0.05%.
Unlike traditional banking, digital banks with savings accounts have well-designed mobile apps that help you manage and track your account online on the go. If you are looking to earn a higher interest on your savings and earn more over time, here are some digital banks to consider.
- High Yield Savings Account
- 0.55% APY
- No monthly opening fees
- Minimum balance $100
- Limit of 6 withdrawals per statement cycle
- FDIC-insured savings account
Quontic Bank was founded in 2009 by Steven Schnall. Starting as a community bank in New York City, the bank has become a nationally recognized digital bank. They offer high-interest checking and savings accounts to individual customers and small business owners.
Once you sign up for a savings account with this Fintech, your interest will be compounded daily and deposited into your account. Quontic has one of the highest yield savings accounts at 0.55% APY, 15x more than the average national APY.
Opening this account is pretty straightforward. You can deposit funds from your checking account or link them to an external bank account via ACH transfers. Unlike other digital banks, Quontic charges a $100 minimum balance for the savings account.
You can set and monitor your savings goal 24/7 via the mobile app or company website.
- Automatic Savings account with 1% APY
- No minimum balance
- No hidden fees
- Tax Tools
- Early Paycheck
Lili Bank was created for contractors and freelancers. Lili Bank is ideal for a small business owner who prefers a free digital account based in New York City.
With Lili’s automatic savings, customers can put away their savings on autopilot. The automatic savings account earns a 1% APY interest. You can save up for a rainy day by transferring $1 every day. You can also set up specific goals such as an emergency bucket to help your prepare for the unexpected.
Since the bank focuses on freelances, they have tax estimation tools to help their customers determine how much tax they need to pay. You can use the tax bucket to set aside a percentage of your income to save for the taxpaying season.
You have to download the Lili mobile app available on Google Play and the App Store to sign up.
- Checking and Savings Account
- APY of up to 3%
- FDIC insured savings account up to $ 250,000
- No minimum balance
- Save Your Change
- Save Your Pay
- No hidden fees
Varo is the first digital bank to receive a national bank charter in the U.S. As a fully-fledged bank, it’s one of the largest neobanks in the U.S. The bank was founded in 2015 and is based in San Fransico.
Customers start earning a 0.20% APY on their savings account, but this can go up to 3.00%, which is one of the highest APYs in the country. To earn the 3.00%, customers must receive total direct deposits of $1,000 or more, have a daily savings balance of $5,000 or less for a month, and keep the checking and savings account balances above zero for the month.
This savings account doesn’t come with any minimum balance or monthly fees. You can deposit at least $0.01 to start earning interest.
Varo has automatic savings tools, Save Your Change and Save Your Pay. With Save Your Pay, the bank transfers a percentage of your direct deposits into your savings account, and you set the rate. With Save Your Change, the bank rounds up each transaction to the nearest dollar and moves the cash to your savings account.
The cash in your Varo Savings Account is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000.
- Automated Savings
- Saving Pods
- Direct deposit
- No hidden fees
- Fee-Free ATMs
- Teen Banking
Current Bank is based in New York. Founded in 2015 by Stuart Sopp, the banking services are provided by Choice Financial Group and Metropolitan Commercial Bank, Members FDIC.
Current doesn’t have a full-fledged savings account, but they provide Savings Pods to encourage saving, and customers can create savings goals using this feature. They also have an automatic savings feature that sets aside money for purchases and uses round-ups to move cash to the pods every time you swipe your debit card.
To sign up for this, customers can use the Current app to turn on round-ups for the pod so that the purchases will be rounded up to the nearest dollar. The difference will be transferred to the pod to grow your future savings.
- 0.25% Savings APY
- Cashback Rewards
- No monthly fees
- Secure Virtual Cards
- Business Savings
Oxygen was founded in 2018 by Hussein Ahmed. Bancorp Bank, Member FDIC, provides banking services. The personal accounts are classified into Earth, Water, Air, and Fire accounts.
The APY% varies depending on which account you choose. Although the bank doesn’t charge a minimum balance, each tier has its own deposit and spend requirements that determine the APY. The lowest APY of 0.25% applies to the Earth tier; the Water tier earns 0.75% APY, the Air tier earns 1.00% APY, whereas the Fire account earns the highest rate at 1.25% APY.
The banking services can be accessed via a mobile app or website.
- Earn up to 0.61% APY
- No minimum balance fees
- No maintenance fees
- Checking account
Axos was one of the first challenger banks in the USA. Founded in 2000, it was previously known as the Bank of Internet USA. Financial products such as checking accounts, savings account, and CDs offer a high yield on the savings account up to 0.61% APY. They have three types of savings accounts; High Yield Savings, High Yield Money Market, and CDs.
If your savings on the High Yield Savings option are between $0-$9,999.99, you earn interest on your cash which is compounded daily. The account also comes with a free ATM card upon request, no minimum balance requirements, and monthly maintenance fees.
With the High Yield Money Market savings account, customers earn a 0.25% APY. This account requires a minimum balance to open an account of $1000.00. The savings are FDIC insured, and customers can earn up to 0.20% APY. The bank also gives free electronic interest transfers, and the CD terms range from 3 to 60-months.
- 0.50% APY
- No minimum balance requirements on savings account
- Savings are FDIC-insured up to $250,000
- No monthly maintenance fees
Marcus is a digital bank named after a founder of the Wall Street Goldman Sachs, Marcus Goldman. Although it doesn’t offer many products like other challenger banks, it has one of the best online savings accounts.
The Marcus online savings account has high yields, currently earning a 0.50% APY. The bank doesn’t charge fees to open a Marcus savings account for maintenance fees or transaction fees. However, you might be charged by a third-party bank linked to your Marcus account.
Although the savings account doesn’t have a minimum balance, it has a maximum limit of $1 million per account and shouldn’t exceed $3 million per account owner.
To deposit money into your Marcus savings account, you can either use the app, ATM or visit a physical branch. You can move funds into the savings account by electronic transfer or a wire transfer. The bank allows six withdrawals and transfers for each statement cycle.
- Online Savings account
- Annual Percentage Yield (APY) of 0.50%
- No monthly maintenance fees
- No minimum balance requirements
- Recurring Transfers
- Surprise savings
- Six withdrawals per statement cycle
- Buckets to organize money
Ally Bank’s history dates back to the 1920s. As one of America’s biggest neobanks, it’s the digital banking division of Ally Financial Inc.
Ally has an online savings account that comes with no maintenance fees or monthly maintenance. Customers can sign up for this account to earn an APY of 0.5%, which is ten times more than the average national APY. This APY may remain the same for all balance tiers and sometimes will change depending on your account’s daily balance.
The three tiers are divided into less than $5,000, between $5,000 and $24,999.99, and $25,000 or more. The bank will pay the APY based on your tier for your end-of-day balance.
The savings account has buckets, a tool to organize your savings without using an additional account. Buckets work like digital envelopes. The bank allows you to create up to 10 savings buckets that coexist in one online savings account and earn interest on the total balance.
Customers can also set up boosters to maximize savings. The boosters include recurring transfers, surprise savings, and round-ups. Recurring transfers allow the customers to move money into the savings account on a regular schedule. Round-ups track the checking accounts for transactions to round up to the nearest dollar.
With surprise savings, the bank analyzes your linked checking accounts for cash to save and transfers the amount to your savings on your behalf.
- Savings Vaults
- APY of up to 0.65%
- Early Paycheck
- Crypto Trading
Revolut is a challenger bank that was founded in 2015 by Nikolay Storonsky and Vlad Yatsenko in London. They are a global player in the banking space and have established a presence in the U.S. The bank has four types of accounts, Standard, Plus, Premium, and Metal accounts.
Revolut customers can save money using the feature Vaults. These interest-earning deposits can earn up to 0.65% APY on USD. However, this interest rate is only for premium and metal accounts. The Plus account earns a 0.3% APY.
Customers can fund their Vaults by using scheduled deposits or spare change roundups. The funds in the Savings Vaults are also protected by the FSCS up to £85,000. In addition, if you want to save with your friends and family, you can use Group Vaults.
- 0.50% Annual Percentage Yield (APY)
- Automatic savings features
- No fees or minimum account balance
- Funds are FDIC-insured
Chime is a digital bank based in the USA. As one of the first players in the digital banking business, it was founded in 2013.
The bank offers a 0.50% Annual Percentage Yield (APY) to its customers. This is a high yield compared to the average interest rate offered by other players. They also don’t charge any fees or require a minimum balance on the savings account.
The built-in automatic savings feature enables customers to save cash every time they purchase or pay a bill using the Chime debit card. Save When You Spend automatically rounds up customer transactions to the nearest dollar and transfers the cash from the Spending Account into the savings account.
Chime customers can also activate automatic savings, which transfers a percentage of each paycheck to the savings account.
To enroll for this account, you should start by opening a Spending Account through the mobile app or website. You can either transfer cash from the spending one or send 10% of each direct deposit of $500 or more via the Save When I Get Paid feature to fund the savings account. The interest is calculated each day based on the account balance.
- No-fee Online Savings Account
- 0.40% APY on savings account
- Checking account
- Retirement accounts
Discover bank is a full-service online bank that offers a competitive interest rate and a broad range of services.
When you open an online savings account, you’ll not get charged a monthly maintenance fee, insufficient funds, or account closure. This account earns a 0.40% APY, and the interest is compounded daily and monthly.
Discover allows customers to make six transfers or withdrawals monthly from the money market or savings account based on federal regulations limit for electronic transfers. On top of this, customers qualify for 1% cash back on up to $3,000 in debit card purchases monthly via the checking account.
Capital One 360
- No minimum deposit requirement or fees
- 0.40% annual percentage yield
- FDIC-insured savings
- Kids savings account
- No minimum balance
Capital One 360 is the digital part of the Capital One brand. With a series of checking and savings accounts, the bank has two types: the 360 Performance Savings Account and Kids savings account. You can choose the option you prefer depending on your goal.
With the 360 Performance account, customers can earn 0.4% APY, one of the nation’s top savings rates. The more you save, the more you make. Since the bank does not charge any fees on this high-yield account, you keep what you earn.
To open an account with Capital One 360, you can either use the app, website or visit a Capital One physical branch. After this gets done, you’ll have 60 days to fund your account. You need to keep in mind that you are limited to 6 withdrawals or transfers per month.
The bank also has a Kids savings account with a 0.3% APY. It’s also fee-free and doesn’t require any minimum amount to open. It comes with an automatic savings feature that lets you send the kids’ allowance on a schedule if you make regular deposits. You can also link your account to your children’s savings account or opt to create an account for each of their savings goals.
How to Choose a Savings Account in a Digital Bank
If you would like to grow your savings with a digital bank, here are some things you should consider.
- Annual Percentage Yield (APY)
The APY is the first thing to check before choosing a savings account. If the APY is high, the money you earn will be more. Most of the above digital banks offer a high yield that’s ten times more than the average percentage in the country.
A savings account is meant to grow your cash and build wealth. Therefore, banking with a platform that charges fees for the account will eat up your savings. When comparing banks, it’s advisable to go for one that won’t take some of your earnings or charge for account maintenance.
- Digital Tools
Since the banks are digital, it’s essential to have a seamless digital experience. You should check whether you can monitor your savings or effect transfers using a mobile app on the go.
- Customer Service
For branchless banks, customer service is also very critical. Before opening a savings account with a bank, you can first confirm whether they have a customer care line to help you resolve any transaction issues.
Before trusting a bank with your cash, you’ll need to know whether the money is safe with them. When comparing options, look for a bank insured by the Federal Deposit Insurance Corporation (FDIC) up to a specific limit. This way, you are assured that your money is safe.
- Withdrawal Limits
According to federal law, customers can withdraw or transfer funds from a savings account six times each month. However, each bank has its own set of rules and regulations. Therefore, before selecting a savings account, you should confirm the specific withdrawal limits.
Most top digital banks provide savings accounts for their customers. These accounts come with different APY percentages that determine how much the cash will earn. A good savings account with a high yield will help you build wealth and attain your savings goal much faster.
We have discussed the digital banks that offer savings accounts. Before settling on one, consider all the different options and features to help with your savings. Furthermore, consider the bank’s factors that make it easy to save and earn high interests.