7 savings accounts that earn high interest — and have no fees
A high-yield savings account is one of the best tools available to help you use today's high interest rates to your advantage. With some top accounts now offering nearly 5% APY, your interest payments over time can go a long way in boosting your balance and helping you reach your financial goals.
But interest isn't the only thing to look out for — plenty of other factors, including FDIC insurance, minimum deposit or balance requirements and account access are all important parts of choosing the right savings account.
Perhaps most importantly, you'll want to look for a high-yield savings account that charges no monthly fees for account maintenance. Luckily, plenty of today's top-earning accounts offer the best of both worlds: no fees and very high yields. Below, we've outlined a few great options with no fees you can take advantage of right now.
Check out today's top savings rate here to see how much more you could be earning.
7 savings accounts with high interest and no fees
The accounts on the list below all have great interest rates and come with no monthly maintenance fees. However, you should also read your account's terms and conditions to learn about any ancillary fees you could take on depending on your account activity. Nearly every savings account charges fees for certain activities, such as incoming and outgoing wire transfers and stop payment requests. However, you can generally avoid these fees pretty easily.
Here are a few of our picks for high-yield savings accounts with no monthly fees. Each of these accounts is offered by online banks or online divisions of larger banks and is FDIC-insured up to the $250,000 maximum.
CIT Bank: 4.85% APY
If you have a large savings balance already, you can earn a very high 4.85% APY with CIT Bank. The Platinum Savings account does require a minimum $5,000 balance and a $100 deposit to earn the high rate (otherwise, you'll only get 0.25% APY). There are no account opening or maintenance fees. The only fees the account charges are for outgoing wire transfers and returned deposits.
Bask Bank: 4.75% APY
The Interest Savings account from Bask Bank earns 4.75% APY. There are no minimum balance requirements, as long as you fund your account with something within 15 days of opening. Bask charges no monthly account fees; the only time you may pay with this account is if you make an outgoing wire transfer.
Salem Five Direct: 4.61% APY
Salem Five Direct's eOne Savings account earns 4.61% on the money you deposit. You'll need $10 upon account opening, but there are no ongoing minimum balance requirements and no monthly fees. You'll only take on a fee for wire transfers, or if you make more than six funds transfers within a month.
Citizens Access: 4.50% APY
Saving money with the Citizens Access High-Yield Online Savings account can net you a 4.50% APY. You don't need to worry about meeting a minimum balance (just $0.01 is required) and there are no monthly fees. Even better, Citizens doesn't charge any ancillary fees for saving, making this account truly fee-free.
Lending Club Bank: 4.25% APY
Lending Club Bank offers 4.25% APY on its high-yield savings account. You'll need a $100 deposit to open, but there are no other minimum balance requirements and no monthly maintenance fees. Potential fees to look out for are charges for wire transfers and stopped payments.
Marcus by Goldman Sachs: 4.15% APY
The Online Savings Account from Marcus by Goldman Sachs offers 4.15% APY with no minimum deposit or ongoing balances required. The account charges no fees at all for maintenance or services.
Synchrony Bank: 4.15% APY
You'll earn 4.15% APY on Synchrony Bank's high-yield savings account as well, with no minimum deposit and no minimum balance requirements. Synchrony also charges no monthly fees, though you may incur a cost for stopping payments or outgoing wire transfers.
Compare more high-yield accounts offering top rates today.
Why you should choose a savings account with no fees
To start, with so many no-fee options with competitive APYs to choose from, why would you want to pay a monthly fee for saving money?
Accounts that charge monthly fees can eat into the interest you earn. For example, say you have $5,000 in a high-yield savings account that earns 4.50% APY. That means, over the course of a year, you would earn roughly $18.75 in interest each month. But if your bank charges a $5 monthly fee to keep your account open, that would reduce your monthly earnings to $13.75 and cost about $60 in total for the year.
Another thing to consider is that many banks that do charge monthly fees for savings accounts are the same ones that only offer traditional savings accounts. These are generally large brick-and-mortar banks, where you may also do your regular banking and have a checking account. The traditional savings accounts you'll find most often from these banks only offer about 0.39% APY on average, according to the FDIC — nearly 12 times less than you can find on many high-yield savings accounts today.
The bottom line
If you're not already saving money in a high-yield savings account, you could be missing out on hundreds of dollars in potential interest earnings each year. Start maximizing today's high rates by choosing an account with a great ongoing APY that doesn't charge fees, which can reduce the amount you'll earn over time.
Get started by comparing some of the best savings account rates available now.
