Best Free Online Savings Account – Saving money is a smart financial habit that can help you achieve your goals, whether it’s buying a house, paying off debt, or funding your retirement. But where should you keep your savings? If you want to earn interest on your money without paying any fees, you might want to consider opening a free online savings account.
A free online savings account is a type of bank account that lets you deposit and withdraw money online, without charging any monthly maintenance fees, minimum balance fees, or other hidden charges. You can also earn interest on your savings, which can vary depending on the bank and the market conditions.
However, not all free online savings accounts are created equal. Some offer higher interest rates than others, some have more features and benefits, and some have better customer service and security. How do you choose the best one for your needs?
In this article, we will compare some of the best free online savings accounts of 2023, based on their interest rates, features, accessibility, and reviews. We will also give you some tips on how to maximize your savings and avoid common pitfalls.
READ ALSO
- Accounts Receivable Financing: How to Use to Boost Your Cash Flow
- Permutation: What is it and how to calculate it?
- Companies Pay College: Why and How
- Insurance Premiums: How to Understand and Save Money
- Best Factoring Companies in 2023 [Updated]
- Waiting Periods in Insurance: What You Need to Know
- Structured Settlement Payments: How to Get Cash
- Invoice Factoring Services: What You Must Know
What to Look for in a Free Online Savings Account
Before you open a free online savings account, you should consider the following factors:
Interest rate
This is the percentage of your balance that the bank pays you as interest every year. The higher the interest rate, the more money you can earn from your savings. However, interest rates are not fixed and can change at any time, depending on the bank’s policy and the market conditions. You should look for a bank that offers a competitive and consistent interest rate, and that does not have any requirements or restrictions to earn it.
Features and Benefits
Some free online savings accounts offer more than just interest. They may also have features and benefits that can help you save more money, such as bonus rewards, cash back, automatic transfers, goal setting, budgeting tools, and more. You should look for a bank that offers features and benefits that suit your needs and preferences.
Accessibility
This refers to how easy it is to access your money and manage your account online. You should look for a bank that has a user-friendly website and mobile app, that allows you to transfer money to and from other accounts easily, that provides 24/7 customer service, and that has security measures to protect your account from fraud and identity theft. You should also check if the bank has any ATM access or branch locations, in case you need to withdraw cash or get in-person assistance.
Reviews
It is always a good idea to read reviews from other customers who have used the free online savings account that you are interested in. You can find reviews on websites like Trustpilot, NerdWallet, or Bankrate. You can also ask your friends and family for recommendations. Reviews can help you get an idea of the pros and cons of each bank, as well as their reputation and customer satisfaction.
Best Free Online Savings Accounts of 2023
Based on our research and analysis, here are some of the best free online savings accounts of 2023:
Varo Savings Account
The Varo Savings Account is one of the best free online savings accounts of 2023 because it offers a high interest rate of up to 5.00% APY, which is much higher than the national average of 0.06% APY. To earn this rate, you need to meet two simple requirements: make at least five Varo debit card purchases each month and receive at least $1,000 in direct deposits each month.
The Varo Savings Account also has no monthly fees, no minimum balance or deposit requirements, no overdraft fees, no foreign transaction fees, and no transfer fees. You can also enjoy features like automatic savings tools, spending alerts, instant transfers to other Varo customers, and access to over 55,000 fee-free Allpoint ATMs worldwide.
The Varo Savings Account is FDIC-insured up to $250,000 through The Bancorp Bank or Stride Bank. You can open an account online or through the Varo app available on iOS and Android devices.
Affirm Savings
The Affirm Savings account is another great option for a free online savings account in 2023 because it offers a competitive interest rate of 3.75% APY, which is also much higher than the national average. There are no requirements or restrictions to earn this rate.
The Affirm Savings account also has no monthly fees, no minimum balance or deposit requirements, no overdraft fees, no insufficient funds fees, and no transfer fees. You can also enjoy features like bonus rewards for shopping with Affirm partners, cash back on select purchases, goal-setting tools, and access to over 19,000 fee-free MoneyPass ATMs nationwide.
The Affirm Savings account is FDIC-insured up to $250,000 through Cross River Bank. You can open an account online or through the Affirm app available on iOS and Android devices.
Synchrony Bank High Yield Savings
The Synchrony Bank High Yield Savings account is another excellent choice for a free online savings account in 2023 because it offers a decent interest rate of 0.75% APY, which is higher than most traditional banks. There are no requirements or restrictions to earn this rate.
The Synchrony Bank High Yield Savings account also has no monthly fees, no minimum balance or deposit requirements, no overdraft fees, no insufficient funds fees, and no transfer fees. You can also enjoy features like ATM reimbursements up to $5 per statement cycle, loyalty rewards for staying with Synchrony, and access to over 2 million fee-free Plus and Accel ATMs worldwide.
The Synchrony Bank High Yield Savings account is FDIC-insured up to $250,000 through Synchrony Bank. You can open an account online or through the Synchrony app available on iOS and Android devices.
How to Maximize Your Savings and Avoid Common Pitfalls
Opening a free online savings account is a great way to start saving money and earning interest, but there are some tips and tricks that can help you make the most of your account and avoid common pitfalls.
Here are some of them:
Set a savings goal and track your progress: Having a clear and realistic savings goal can help you stay motivated and focused on your financial future. You can use tools like calculators, spreadsheets, or apps to set your goals and track your progress. You can also break down your goal into smaller milestones and celebrate your achievements along the way.
Automate your savings
One of the easiest ways to save money is to automate your savings. You can set up a recurring transfer from your checking account to your savings account every month, week, or even day. You can also use tools like round-ups, which automatically transfer the change from your purchases to your savings account. This way, you can save money without even thinking about it.
Review your budget and expenses
Another way to save money is to review your budget and expenses regularly and see where you can cut costs or increase income. You can use tools like apps, websites, or books to help you create and manage your budget. You can also look for ways to save money on things like groceries, utilities, entertainment, transportation, and more.
Avoid withdrawing money from your savings account
Unless it’s an emergency or a planned expense, you should avoid withdrawing money from your savings account. This can help you avoid fees, maintain your interest rate, and keep your savings intact. If you need cash, you should use your checking account or debit card instead. If you do withdraw money from your savings account, you should try to replenish it as soon as possible.
Compare different banks and accounts
Even if you already have a free online savings account, it doesn’t hurt to compare different banks and accounts from time to time and see if you can get a better deal elsewhere. You can use tools like websites, apps, or podcasts to compare interest rates, features, benefits, reviews, and more. You can also look for promotions or bonuses that some banks offer for opening a new account or switching from another bank.
In conclusion, A free online savings account is a great way to save money and earn interest without paying any fees. However, not all free online savings accounts are the same. You should look for a bank that offers a high-interest rate, features and benefits that suit your needs and preferences, accessibility and security that make you feel comfortable, and reviews that show customer satisfaction.
Best Free Online Savings Account: Frequently Asked Questions (F&Qs)
Can I open a free savings account online?
Yes, you can open a free savings account online. Here are some options:
- Ally Bank Online Savings Account: This account comes with no minimum opening deposit requirement, no minimum balance requirements, and no monthly service fees. You’ll earn a generous 4.25% APY.
- Axos Bank High Yield Savings: Another great option for a free savings account.
- Betterment Cash Reserve: This is best for long-term savings.
- Capital One 360 Performance Savings: This is another good option.
- Varo Savings Account: This account offers an annual percentage yield of 3.00% to 5.00%.
- Sallie Mae Bank SmartyPig Account: This account offers an annual percentage yield of 4.25%.
What bank account can I open online for free?
There are several online banks that offer free checking accounts. Here are a few options:
- SoFi Checking and Savings: This account offers a 0.50% APY on checking balances and up to 4.50% APY on savings balances for members with direct deposit activity.
- Axos Bank® Rewards Checking: This account offers an annual percentage yield as high as 3.30% based on certain activities.
- Revolut Standard plan: This digital specialist offers a free standard account with all the features you need for day-to-day banking.
- Ally Bank Interest Checking Account: This full-service online bank offers a fee-free Interest Checking Account.
- SoFi Online Bank Account: US-based online bank SoFi offers a range of personal finance services, including a feature-packed checking account, which has no account or overdraft fees.
What savings accounts are free?
There are several online banks that offer free savings accounts. Here are a few options:
- Ally Bank Online Savings Account: This account comes with no minimum opening deposit requirement, no minimum balance requirements, and no monthly service fees. On top of that, you’ll earn a generous 4.25% APY.
- Axos Bank High Yield Savings: Another great option for a free savings account.
- Betterment Cash Reserve: This is best for long-term savings.
- Capital One 360 Performance Savings: This is another good option for a free savings account.
- Synchrony Bank High Yield Savings: This bank offers a high-yield savings account.
- Varo Savings Account: This account offers an annual percentage yield of 3.00% to 5.00%.
- Sallie Mae Bank SmartyPig Account: This account offers an annual percentage yield of 4.25%.
- Marcus by Goldman Sachs High-Yield Online Savings Account: This account offers an annual percentage yield of 4.30%.