Best free no-fee savings accounts of November 2023
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BLUEPRINT
Updated 2:34 p.m. UTC Nov. 1, 2023
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Onerous banking fees can leech off your hard-earned savings and undercut what you’ve earned in interest.The best no-fee savings accounts not only have no maintenance fees, but also have high interest rates and low minimums. We sifted through 250 savings accounts offered by roughly 135 financial institutions to pick five products you should consider.
Annual percentage yields (APYs) and account details are accurate as of September 13, 2023.
Best no-fee savings account accounts
Varo Savings Account
Affirm Savings
Synchrony Bank High Yield Savings
Capital One 360 Performance Savings
SFGI Direct Savings Account
Compare the best no-fee savings accounts
Methodology
We monitor over 250 savings accounts offered by 135 financial institutions, including American Express Bank, Capital One, Chase, Citi Bank, Discover, TD Bank, Marcus by Goldman Sachs, TIAA Bank and USAA.
To create the best no-fee savings accounts, we eliminated all accounts that charged fees and evaluated the rest to create a star rating for each. An institution with a perfect score of 100 would get five stars. One with a score of 80 would get four stars and so on. Here are the categories we analyzed and how we weighted each.
- Fees: 40%
- Minimum balance to avoid fees: 33%
- Digital experience: 11%
- APY: 10%
- Customer experience 5%
- Minimum deposit: 1%
We believe that the most important factor in a no-fee account is the lack of fees, followed by the minimum balance to avoid those fees. After that you want a product that’s easy to use online and offers a solid yield. Customer experience and the minimum deposit requirement are worth consideration.
Why some banks didn’t make the cut
Each no-fee savings account has different pros and cons. Most well-known banks didn’t make the cut because they have fees, low interest rates and high minimum deposit requirements. Because they are already popular, they don’t need to offer the best products on the market to attract customers. Relatively smaller and younger financial institutions tend to cut fees, feature great APYs and have no balance requirements to gain clients.
National average for savings accounts
The national average savings account rate (as of March 20, 2023) is 0.37% APY, according to the Federal Deposit Insurance Corporation (FDIC).
Here’s how some national averages on savings products compare:
What is a no-fee savings account?
A no-fee savings account is exactly what it sounds like. It’s an account meant to hold money that you don’t need every day and for which you don’t have to pay a monthly maintenance fee.
It could also fall into various other categories. In addition to having no fees, it could be a high-yield savings account and offer a competitive APY on your deposits. It could be an online-only savings account and not offer physical banking branches.
Exactly how a no-fee savings account works depends on the account and the institution
How no-fee savings accounts work
In general, a no-fee savings account works just like a traditional savings account.
“One deposits funds into the account; the bank then lends the funds to other customers and pays interest to the depositor,” said Seth Mullikin, CFP at Lattice Financial in Charlotte.
The profit the bank earns on loans covers the cost that you would otherwise pay in maintenance fees.
A no-fee savings account may still charge fees for voluntary elections, like sending wire transfers and getting a Cashier’s check.
How to choose the best no-fee savings account
Because no-fee savings accounts can also be high-yield, online-only and such, consider what other factors are important to you.
Yield. As the main purpose of a savings account is to store money, it makes sense if the fund earns cash as it sits. “First, you want something that is paying decent interest,” said Nicholas Bunio, CFP in Berwyn, Pa. Look for the highest APYs on no-fee savings accounts.
Size. Do you want a large, national bank that has physical branches in every major city and a cornucopia of products, like loans and credit cards? Or do you want something smaller, like a local credit union?
Locations and ATMs. Would you like for a branch to be around the block from your home or work? Or do you travel often and want free ATMs available in most cities? Or are you comfortable with a bank that’s completely online? Note that if a credit union participates in the credit union Co-Op, its members can go to over 5,400 branches and 30,000 ATMs nationwide.
No-fee savings account vs. traditional savings accounts
A no-fee savings account is just a traditional savings account that doesn’t charge you fees. At face value, of course, a no-fee account is preferred, but there may be reasons to choose a traditional account that charges fees. Here are two:
Convenience. If you already have a relationship with a bank, it can be nice to keep your accounts in one place. If two or more of your important banking accounts are accessible through the same institution, you’ll only need one password, one mobile app, one trip to one bank, etc.
Higher returns. If you have to pay a small monthly fee but you earn a much higher rate on your deposits, the fee may be well worth it. Plus, banks often allow you to avoid costly fees through maintaining a certain amount in your account.
If a bank is insured by the Federal Deposit Insurance Corporation (FDIC), all the savings accounts it offers are FDIC insured. For credit unions, the same applies, but via the National Credit Union Administration (NCUA). If you have an account with another type of financial institution, such as a stock broker, your deposits may not be protected. If you have any questions, check with your financial institution directly.
Yes, no-fee savings accounts can offer high yields. An account’s APY and its fees depend on the institution that offers it and both elements can change over time.
If the institution is insured by the FDIC or the NCUA, your savings account deposits are insured up to $250,000. This limit applies to each type of account at each institution. So if you have a joint savings account and an individual savings account at one bank, then another joint savings account at another bank, each account would be covered up to $250,000—you’d have a total deposit amount up to $750,000 protected.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
