Best No-Fee Savings Accounts (That Are Also High APY)
Joy Wallet is advertiser-supported: we may earn compensation from the products and offers mentioned in this article. However, any expressed opinions are our own and aren't influenced by compensation. To read our full disclosure, click here.
A $5 monthly maintenance fee on a no-frills, basic savings account doesn’t sound like much. But it adds up to $60 a year, which can turn into some substantial cash you’d probably rather have in your pocket.
Fee-free is the way to go. Whether you want an online savings account that pays a high annual percentage yield (APY) or is looking for a bank with physical branches so you can do your banking in person, there are many bank accounts to choose from if you don’t want to pay monthly service fees.
Here are some of the best no-fee savings accounts we’ve found, each without monthly maintenance fees, and possibly not many other fees such as ATM fees. They also pay a high APY on almost any deposit amount, which is a great bonus feature on top of no fees.
Jump To
Overview of the best no-fee savings accounts
Bank | Best for |
|---|---|
Capital One | Physical branches in some states |
Discover Bank | No fees for many services |
Marcus by Goldman Sachs | Same-day transfers |
CIT Bank | High rate on $5,000+ balances |
American Express | Customer service |
Barclays | Unlimited withdrawals |
Synchrony Bank | Unlimited, free ATMs in network |
SoFi | Direct deposit |
UFB Direct | High APY |
Best no-fee savings accounts
Our list of the best savings account offers from banks starts with the requirement that they not charge monthly service fees, also called monthly maintenance fees.
If banks charge them, the fees can sometimes be waived by meeting a simple requirement, such as having a minimum balance. If you can’t meet a waiver requirement, such as by having direct deposit, you should be able to find plenty of other no-fee savings accounts without such requirements.
We also list APYs paid on each savings account, which can change anytime.
Banks can have other fees beyond a monthly service fee. Be sure to check a bank’s online list of fees to see how much you could pay for overdrafts, using an ATM, and other things.
All of these accounts are FDIC-insured. The Federal Deposit Insurance Corporation, or FDIC, insures account for up to $250,000 per depositor per ownership at each FDIC-insured bank.
Use AmONE to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- With personal loan interest rates rising, now could be a great time to find a personal loan. Through our partner AmONE, you could get matched to a lender who could offer as much as a $50k loan with rates as low as 5.99% APR.
- Approval and loan terms vary based on applicant qualifications. Not all applicants will qualify for the full amount or lowest available rates. It takes minutes to see your results. And don't worry- filling out the form won't hurt your credit score and is free, so why not give it a try?
Capital One
The savings account at Capital One is called 360 Performance Savings. It’s a fee-free online savings account that pays a variable 4.25% APY with no fees or minimum balances, and no minimum opening deposit is required.
It’s a high-yield savings account that pays an interest rate higher than most physical banks charge. Capital One, however, has brick-and-mortar locations in six metropolitan areas of the U.S., making it one of the few banks with online and physical branches while offering high APYs.
Its savings account doesn’t offer ATM access. However, the account can be tied to a Capital One 360 Checking account, which comes with an ATM card so you can transfer money between accounts at a Capital One ATM.
Capital One’s banking app is handy. It allows users to transfer money from their phone, create multiple savings accounts for different financial go and allows mobile check deposit by taking a photo of the check with your phone.
Discover Bank
The Discover Online Savings Account also has a high APY, at 4.25%. No minimum deposit is required. Interest is compounded daily and paid monthly.
Discover is well known for not charging fees, and it comes through with its savings account in a few more ways than just not charging a monthly maintenance fee. It also doesn’t charge fees for: stop payment orders, insufficient funds, deposited items returned, expedited delivery for official bank checks, and account closure.
A savings account isn’t meant for daily transactions, which checking accounts are commonly used for. Discover Bank allows six monthly transactions from its savings account, and going over that frequently could cause Discover to close your account. That said, Discover offers an ATM card to withdraw money from over 60,000 ATMs in its network for free.
Discover Bank also offers checking accounts, retirement accounts, credit cards, certificates of deposit, and money market accounts so you can do most of your finances in one place.
Marcus by Goldman Sachs
The online savings account at Marcus by Goldman Sachs pays 4.40% APY and doesn’t charge a monthly service fee. A minimum deposit isn’t needed to open an account, but at least $1 is needed to start earning interest.
The company website infers that because the savings account is a high-yield savings account that pays a higher interest rate than traditional savings accounts, the money you deposit in the account should stay in it.
The APY is the interest you could earn over a year, assuming that funds aren’t added or withdrawn. APY accounts for compound interest, which is making money on your money. The more often the interest compounds, the more money you can earn.
This is why savings accounts with higher APYs shouldn’t be used for regular transactions, with money going in and out often. They’re best used as an emergency fund where you deposit money regularly and only withdraw it for emergencies. Saving for big purchases or long-term goals, such as retirement, is another smart use.
Marcus provides same-day transfers of $100,000 or less to or from other banks or credit unions. This can give you access to your money faster, as opposed to waiting a few days like you might at other banks.
CIT Bank
CIT Bank, a division of First Citizens Bank, doesn’t charge monthly maintenance fees. It offers two kinds of savings accounts that each require an opening deposit of at least $100. It’s the only bank we reviewed that had such high deposit requirements. A higher interest rate is earned if you maintain a balance of $5,000 or higher.
The Platinum Savings pays the highest rate of the two bank savings accounts CIT Bank offers, 0.25% - 5.00% APY, but only on balances of $5,000 and higher.
If you expect to have less than $5,000 in savings, the Savings Connect account is a better choice because the 4.65% APY rate doesn’t drop if the balance drops.
To deposit money into one of these accounts, CIT Bank’s mobile banking app allows money transfers and mobile check deposits.
American Express
Like Discover, American Express is also mostly known for its credit cards. But also like Discover Bank, American Express has a high-yield savings account that doesn’t charge monthly maintenance fees and pays 4.25% APY in interest.
The only way to get money into the savings account is through transfers from another financial institution, direct deposit, or mailing in a check.
It doesn’t offer ATM cards, debit cards, or checks, which should only reinforce the idea that an online savings account with a high APY is meant to hold your money, not for daily expenses like a checking account is. The only way to withdraw money from the account is to go online through a computer or the Amex App on the phone. This can shorten the timeline for funds appearing in an account from up to two business days to immediate access the same day.
American Express beats traditional savings accounts in the interest it pays on savings. The company is well known for excellent customer service.
Barclays
The Barclays Online Savings Account meets our basic qualification of not charging monthly service fees. It has other great benefits, such as no minimum account balance requirement, unlimited withdrawals, and help in setting up savings goals. And best of all, it pays a high 4.35% APY.
The unlimited withdrawals it allows are a great benefit if you use the savings account to pay bills. Not many savings accounts allow unlimited withdrawals, so this feature makes Barclays stand out.
One drawback is that this national bank only processes withdrawals through a transfer, which can take two to three days for your funds to be posted to another bank or by mailing you a check. Getting your money through those unlimited withdrawals can take a few days, which can be frustrating if you’re using the savings account as a de facto checking account while earning a high interest rate.
Use AmONE to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- With personal loan interest rates rising, now could be a great time to find a personal loan. Through our partner AmONE, you could get matched to a lender who could offer as much as a $50k loan with rates as low as 5.99% APR.
- Approval and loan terms vary based on applicant qualifications. Not all applicants will qualify for the full amount or lowest available rates. It takes minutes to see your results. And don't worry- filling out the form won't hurt your credit score and is free, so why not give it a try?
Synchrony Bank
The Synchrony Bank High Yield Savings account doesn’t charge monthly fees and has no minimum deposit or minimum balance requirements. It pays a competitive APY of 4.75%.
Like Barclays, Synchrony Bank wants to give customers easy access to their money, but Synchrony does this better by giving free, unlimited withdrawals in two ATM networks: Plus and Accel. The ATM owner or operator may charge a fee, however. If you use your ATM card at an ATM outside the networks that Synchrony works with, Synchrony will refund domestic charges of up to $5 per statement cycle.
The daily withdrawal limit from an ATM is $1,000, and the card can be used to make purchases of up to $500 per day.
Money can be withdrawn or deposited at an ATM, on the bank’s app, or online.
SoFi
The high-yield savings account at SoFi isn’t offered as a standalone savings account but must be paired with a checking account at SoFi. But even with two accounts combined, it doesn’t charge any monthly, minimum, or maintenance fees.
The account can be a good way to earn high interest — 4.50% APY — on savings while also using it as a checking account for daily expenses.
SoFi doesn’t explain on its website how it does this, but it somehow separates balances into savings and checking and pays 4.40% APY on savings balances with direct deposit, but the rate drops to 1.20% APY on checking account balances with or without direct deposit. It's confusing, but that’s how it works.
That big gap in interest rates could keep you busy moving money from savings into checking when you need to pay bills and the other direction when you don’t. It may be worth doing if you can set up direct deposit for the high savings account rate.
UFB Direct
UFB Direct, whose bank accounts are through Axos Bank, offers a high-yield savings account that doesn’t charge monthly maintenance fees or has a minimum deposit requirement.
Those are good reasons to open an account at UFB Direct. The best reason may be that the UFB Premier Savings account pays the highest interest rate among the financial institutions we reviewed for best high-yield savings accounts. It pays 5.25% APY on any balance.
Like other online banks, UFB Direct uses digital banking to keep its overhead costs down and then passes on the savings to customers through free services and competitive interest rates. The 5.25% APY it offers must mean the company is saving a lot on overhead costs.
It offers many ways to access your money, including a free ATM card that can be used at partner banks, free transfers with direct deposit, and online banking. Checks can be deposited by photographing them on your phone and submitting them through an app.
It also offers a unique service if you can’t get online. It offers SMS banking by using SMS messaging to access account features when you don’t have Wi-Fi access and can’t get online.
Related: Best High-Yield Savings Accounts
Best no-fees savings accounts summary
Bank | Monthly Service Fee | APY | Minimum Deposit | ATMs? |
|---|---|---|---|---|
Capital One | $0 | 4.25% | $0 | Yes |
Discover Bank | $0 | 4.25% | $0 | Yes |
Marcus by Goldman Sachs | $0 | 4.40% | $1 | No |
CIT Bank | $0 | 4.65% | $100 | No |
American Express | $0 | 4.25% | $0 | No |
Barclays | $0 | 4.35% | $0 | No |
Synchrony Bank | $0 | 4.75% | $0 | Yes |
SoFi | $0 | 4.50% | $0 | No |
UFB Direct | $0 | 5.25% | $0 | Yes |
FAQs
What fees might I be charged?
Just because online banks don’t charge monthly maintenance fees and promise a few other fee-free perks doesn’t mean they’re entirely free. You may not encounter any fees if you don’t request a stop payment or need a new debit card rushed to you because you lost yours. But some banks charge for stop payments and replacing debit cards, among other things.
Find the “schedule of fees” on the bank’s website. Some banks are very transparent about their fee and make them easy to find. Some don’t.
UFB Direct, for example, lists its fees under “Disclosures” at the bottom of its web pages. You then must scroll to the last two of 35 pages to see that it charges $35 for a stop payment request requiring assistance, and $50 to get a replacement debit card rushed to you.
How do I get ahold of an online bank?
Online chats, email and phone calls are the most common ways to contact an online bank, and some use instant messaging on SMS on your phone. Since you won’t be able to walk into a physical bank office to ask any questions, you should be comfortable with other methods.
Before opening an account, try calling the bank’s customer service line and see if they can help you with a few questions as a potential customer. You may have a hard time finding their phone number, which can be a bad sign.
We called two, with mixed results. American Express was easy to contact by calling the customer service line listed on its “Contact Us” page.
UFB Direct has a chat box, though talking with a bot didn’t answer our questions. We convinced the bot to connect us to a real person, and she wasn’t too helpful either and didn’t seem to know what we were asking about. So we called the bank’s phone number listed on its “Contact Us” page, and a representative answered our questions but only after a few minutes of back and forth over what she thought was a bad connection.
Is an online savings account insured by the FDIC?
Yes. The Federal Deposit Insurance Corporation (FDIC) provides federal protection if a bank collapses, including for online banks. All of the online banks we reviewed here are insured by the FDIC, but make sure to check with any bank you’re considering to make sure your money is insured.
The FDIC insures up to $250,000 per depositor per ownership category at each FDIC-insured bank. If you have more than $250,000 at one bank, you may want to move some of it to a different bank that’s insured by the FDIC.
Use AmONE to Get a Personal Loan
- If you're tight on cash right now, you may want to consider getting a personal loan. A personal loan is a loan that you can use for just about any purpose like: paying off other debt, renovating your home, or family needs like a wedding or adoption.
- With personal loan interest rates rising, now could be a great time to find a personal loan. Through our partner AmONE, you could get matched to a lender who could offer as much as a $50k loan with rates as low as 5.99% APR.
- Approval and loan terms vary based on applicant qualifications. Not all applicants will qualify for the full amount or lowest available rates. It takes minutes to see your results. And don't worry- filling out the form won't hurt your credit score and is free, so why not give it a try?
Why you should (or shouldn’t) use a no-fee savings account
Two of the biggest reasons to have a no-fee savings account are that it won’t charge you monthly maintenance fees that will take away from the interest you’re earning, and many pay high yields that can be 11 times as much as a traditional bank pays.
You may not want this type of savings account because it’s unlikely to have physical branches, which makes walking in and getting your questions answered by someone in person impossible. You may have to rely on calling the bank or online customer service, which can be frustrating.
A high-yield savings account may also not be for you if you want the same interest rate for months and months. The rates are often higher than traditional savings accounts, but the rates are variable and can change at any time. They can drop at any time too.
Some banks require a minimum balance and limit the number of withdrawals or transfers each month without incurring fees or penalties. This can make it harder to pull your money out for an emergency, though you should still be able to get it within a few days at most banks.
The bottom line
No-fee savings accounts can help you save money by not having to pay a monthly fee just to keep an account open. Many online banks pay much higher interest rates than you’ll find at traditional banks, giving you a big reason to go online-only with your savings.
If you’re comfortable communicating with a bank online or over the phone, then a high-yield savings account without many fees can be a smart way to bump up your emergency fund or save for something more enjoyable.
Joy Wallet is an independent publisher and comparison service, not an investment advisor, financial advisor, loan broker, insurance producer, or insurance broker. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. Joy Wallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. We encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Featured estimates are based on past market performance, and past performance is not a guarantee of future performance.
Our site doesn’t feature every company or financial product available on the market. We are compensated by our partners, which may influence which products we review and write about (and where those products appear on our site), but it in no way affects our recommendations or advice. Our editorials are grounded on independent research. Our partners cannot pay us to guarantee favorable reviews of their products or services.
We value your privacy. We work with trusted partners to provide relevant advertising based on information about your use of Joy Wallet’s and third-party websites and applications. This includes, but is not limited to, sharing information about your web browsing activities with Meta (Facebook) and Google. All of the web browsing information that is shared is anonymized. To learn more, click on our Privacy Policy link.
Images appearing across JoyWallet are courtesy of shutterstock.com.
Writer
Aaron Crowe is a freelance journalist who specializes in personal finance writing and editing. He has worked at newspapers, where he won a Pulitzer Prize, and has written for numerous online publications. These include AOL, US News & World Report, WiseBread, Bankrate, AARP, and many websites focusing on housing, credit and insurance. He lives in California with his wife and daughter.
Share this article
