The best no-fee savings account in May 2024 (2024)

Bank fees may not seem like a big deal, but over time, these small charges add up. That’s why it’s important to find an account with as few fees as possible.
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While a high annual percentage yield (APY) is nice, it’s worthless if these charges offset the earnings.
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Fortunately, there are many no-fee savings accounts available that offer great APYs. While they may still charge for things like overdrafts, non-sufficient funds (NSF) or excess transactions, no-fee savings accounts typically don’t have monthly maintenance fees.
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Here is our list of some of the best no-fee, high-interest savings accounts that are available right now.

Why get a no-fee savings account?

• Few or no fees: Many no-fee savings accounts have free monthly maintenance and may not have fees for overdrafts, NSFs, excess transactions, etc.
• Lower balance requirements: There may be no or lower minimum balance requirements with no-fee savings accounts than there are with traditional savings accounts.
• Competitive interest rates: You may earn a better APY with a no-fee savings account than you would with a regular savings account.

What is a no-fee savings account?

A no-fee savings account is a deposit account that typically doesn’t charge for monthly maintenance. That means you can keep your money in the account free of charge. Some banks may charge a monthly fee, but they’re usually relatively easy to get waived.

These savings accounts tend to have low (or no) balance requirements, so even if you don’t have much to invest, you won’t need to worry about getting charged if your balance falls below a certain amount.

Although a no-fee savings account may not have a monthly charge, there may be other fees for overdrafts, non-sufficient funds (NSF), excess transactions or wire transfers. However, many banks have taken their accounts a step further and eliminated most fees altogether.

No-fee vs traditional savings accounts

Traditional savings accounts tend to have balance requirements and a monthly maintenance charge. They may also require a larger minimum opening deposit.

You can typically find no-fee savings accounts at online banks. These banks don’t have the expense of running branch locations, so they can often pass on the savings to customers through fewer fees and higher APYs.

However, with an online bank, you usually have to withdraw your funds through an ATM or transfer them to a traditional bank to access them.

You also won’t be able to interact face-to-face with a bank employee when you need assistance with your account; you’ll have to call the bank’s customer service number instead.

How to pick the best no-fee savings account

Comparing APYs is essential when choosing the best no-fee savings account. While online banks tend to provide better rates, brick-and-mortar financial institutions will sometimes offer promotional APYs.

Balance requirements are also important to check for on an account. If your balance falls below that amount, the bank may charge a fee, which can decrease your interest earnings.

Banks advertising “no fees” on their savings accounts are often referring to monthly maintenance fees. Check the bank’s fee schedule and account disclosures for any hidden fees, including overdrafts, NSFs, wire transfers, excess transactions, account inactivity and out-of-network ATM charges.

Opening your no-fee savings account

Opening a no-fee savings account is relatively easy. There are just a few simple steps to take to sign up:

1. Gather the appropriate information and documents. The bank or credit union may ask for the following:

• A valid, government-issued ID (i.e., driver’s license, passport, state ID)
• Social Security number
• Date of birth
• Address
• Phone number
• Email address

2. Next, you’ll need to fill out an application. Online banks often let you apply online, while traditional institutions may require you to visit a local branch.

3. After you open the account, you can make your first deposit. Some banks allow you to open an account without one but require you to fund it within a given time. Others may require a minimum deposit upfront to open the account.

Advantages and disadvantages of no-fee savings accounts

A no-fee savings account can have both advantages and disadvantages. Here are some of the benefits of opening one:

• No or few fees: No-fee savings accounts typically have free maintenance or an easy way to waive the monthly fee. Although there can be other charges to worry about, no-fee savings accounts may not have overdraft, NSF or excess transaction fees.
• Low minimum balance requirements: Many traditional savings accounts have a minimum balance requirement. The bank could charge you for account maintenance if you don’t adhere to it. No-fee savings accounts may be less likely to have minimum balance requirements.
• Competitive APYs: You can often find no-fee savings accounts at online banks. Since these institutions don’t have to maintain physical branch locations, they frequently offer better rates along with fewer fees.

While a no-fee savings account can provide excellent perks, there may be some drawbacks to consider:

• Limited physical branch access: With online banks as the primary providers of no-fee savings accounts, you likely won’t have a nearby branch. You may have to withdraw from ATMs and transfer money using ACH transactions to access your funds.
• Difficult to deposit cash: Because of the lack of physical branches, it may be challenging to deposit cash. Some banks have cash-accepting ATM locations. Others may require you to deposit the money at a traditional bank and then transfer it to your account.
• Other fees: While no-fee savings accounts generally don’t charge for monthly maintenance, they still may have other fees. Some fees could include overdraft charges, NSFs, excess transactions, inactivity, early account closure or out-of-network ATM withdrawals.

Mobile banking with no-fee savings accounts

Financial institutions often provide a mobile app when you sign up for an account. The app may offer a variety of functions, including:

• Checking your balance
• Transferring money between accounts
• Paying bills
• Electronically depositing checks
• Automating your savings

It can offer a convenient way to access your account 24/7. You can read the reviews of a bank’s app on your device’s application store to choose a financial institution with the best mobile banking capabilities.

However, securing your information is vital when banking online. Set a complex password that you don’t use for any other accounts. To secure your account further, you can also set up a PIN or biometric identification, such as fingerprint ID or facial recognition.

Methodology

CNN Underscored Money analyzed more than 40 accounts to determine the rankings for the best no-fee savings accounts. This included accounts from a mix of traditional banks, online banks and credit unions available nationally. We ranked each account on 11 data points across five categories.

Here are the categories we analyzed and how we weighted each:

APY (50%)

For many consumers, the amount of interest they earn on their savings is the most important factor in choosing a savings account, so we weighted this highest of any factor.

Fees (30%)

Fees are a critical factor to consider with your savings account because they can eat away at any interest earnings. While all of the accounts on this list have no monthly maintenance fee, we did consider other potential fees like out-of-network ATM fees, excess transaction fees and overdraft fees.

Minimums (10%)

Deposit and balance requirements can be an obstacle for some customers when it comes to opening an account. Banks and credit unions with low or no minimums scored higher.

Customer experience (5%)

While you’ll likely deal with your bank less often with a savings account than you will with a checking account, it’s still important to have a bank that’s trustworthy and easy to reach when you need help.

Digital experience (5%)

You’ll want a bank with a usable app and plenty of online features so that it’s easy to bank from anywhere.