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The 10 Best Savings Accounts in 2016

The 10 Best Savings Accounts in 2016
January 21
11:42 2016

Despite all the emphasis placed on building a nest egg for retirement, having an emergency fund for the unexpected or opening a separate savings account for vacations and large purchases, few people have as much money in savings as they’d like – if any.

According to an October 2015 GOBankingRates survey on savings habits, 21 percent of over 5,000 respondents said they don’t have a savings account. Of the ones who do, 28 percent have $0 saved.

Shopping for the best savings account available is a crucial first step whether you’re opening a new savings account or making sure your current savings are in an account with a high annual percentage yield.

What to Look for in a Savings Account

The ideal savings account doesn’t necessarily have to be one with a bunch of fancy features. It should, however, make your money work for you without costing you much. The best savings accounts offer features such as:

Few or no monthly fees

  • Generous deposit and withdrawal limits
  • Low minimum deposit and balance requirements
  • High interest rates
  • Guaranteed FDIC insurance

Finding a savings account with the right blend of these qualities can be a challenge, especially because there is such a broad range of account types, tiered APYs and other factors to consider. From 0.01 percent APY to over 1 percent APY, and from no minimum deposit to $100 minimum deposit requirements, features of the savings account you choose can have a significant – or lackluster – effect on the growth of your money.

The Best 2016 Savings Accounts

GOBankingRates’ annual Best Banks study identified the 10 best savings accounts of 2016 to help you find the right account for your needs. To create the list, GOBankingRates assessed the top basic savings accounts from 90 national brick-and-mortar banks and 30 online-only banks. The study considered criteria such as fees, rates, deposit rules and minimum balances. Here are the best savings accounts in the U.S.

Best Savings Account: MySavingsDirect MySavings Account

The best savings account of 2016 is the online MySavings Account from MySavingsDirect. The online account offers the highest APY on the list – 1.10 percent – and comes with no monthly fees, no minimum deposit and no minimum balance requirement. Account holders have the added benefit of linking the savings account to their current checking account without having to switch banks.

Ally Bank

Ally Bank’s Online Savings Account offers a high 1 percent APY that compounds interest daily. No monthly maintenance fee and no minimum balance fee mean you can save even more money. The bank’s mobile deposit feature makes depositing money to the account easy.

American Express

Perhaps better known for its credit cards, American Express offers a High Yield Savings Account with a competitive interest rate of 0.90 percent. It has a $0 minimum balance, no opening deposit requirement and no monthly fee attached to it.

Bank5 Connect

Bank5 Connect’s 0.90 percent APY is attractive; however, it has a $10 minimum deposit required to open the account. The account can be linked to a checking account to cover overdrafts; however, account holders are limited to six transfers or withdrawals per month or else they’re subject to a $10 fee per transaction.

Barclays 

Barclays’ Online Savings Account is another 1 percent APY option for the depositor interested in high yields with few penalties or restrictions. In addition to no monthly fees or minimum balance requirement, the account offers features such as direct deposit capability, online access and online transfers.

Capital One

Though its 0.75 percent APY isn’t quite as robust as some accounts on this list, Capital One’s 360 Savings lives up to its name as an all-around deposit product for people looking to save money with no minimum balance requirements. Capital One offers an automatic savings plan program online so that you can set up and track multiple savings accounts for specific savings goals.

CIT Bank

CIT Bank’s High Yield Savings Account currently offers a 1 percent APY with no monthly fee; however, it does require a minimum deposit of $100. With zero fees, CIT Bank’s account starts compounding interest on that opening deposit daily, potentially helping you build your savings faster.

FNBO Direct

The Online Savings Account interest rate at FNBO Direct climbed from 0.75 percent APY in October 2015 to 0.95 percent APY in January 2016. You can open the account with just $1 and won’t be saddled with any monthly maintenance or minimum balance fees. Like other best banks for savings accounts on this list, FNBO offers a smartphone app that allows person-to-person transfers.

iGObanking.com
The High Interest Savings Account from iGObanking.com offers 1 percent APY. It has no monthly charges, fees or minimums to contend with, and it has the convenience and speed of mobile banking features, so you can access the account at any time.
Synchrony Bank
Synchrony Bank’s savings account offers a 1.05 percent APY. Though it has a monthly balance fee of $5 and a minimum balance fee of $30, the account has no minimum balance requirement. In addition to online access, the account comes with an ATM card for easy access to your money.

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