The Best Online Savings Accounts in 2018 – Best Places To Park Your Money

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Hi, for those who are new here, I am Lan – Master of Practicality. Today, I'm showing you the best online savings accounts you can consider to put your money in. 

Fish and chips? Burgers and fries? House and lot?

What do they have in common? What's common to them is that they complementary to each other. So do checking and savings accounts.

Oftentimes, people who open bank accounts are recommended to open checking and savings accounts at the same time.

Why? It's not because banks want you to get more accounts with them. It is because checking and savings accounts serve different purposes.

Checking accounts are what you use to pay your bills, debts, and other financial-related transactions. Savings accounts are meant for savings, emergency funds, and other long-term financial needs.

While it's not always a good idea to put all your money in one place, putting some cash in savings accounts provide a safe haven for your money. You can also make money through interest.


Why You Need A Savings Account

A savings account is important for many reasons. It may not offer the best interest rate, but it offers one of the safest places to put in your money. That is one of the main purposes of having that account.

You may not become wealthy by parking your money in the bank, but it definitely is an essential part of becoming financially independent and of achieving financial independence.

Here are some reasons for having a savings account:

  • Build emergency funds
  • Reach short and long-term goals
  • Maintain capital and its value (may not happen when money is invested because of the risky nature of investing)
  • Avoid going to debt (when you have money in your savings account, you know you have a wiggle room when important things come up)


How to Choose the Best Online Savings Account

With so many banks that offer online savings accounts, deciding the best ones may seem to be a difficult task. The best way to choose the best account that fit your needs is to focus on the following criteria:

  • APY or known as the annual interest rate
  • Minimum deposit requirement
  • Benefits and fees, if any

Whenever you look for a savings account, you want one that has the high APY with deposit requirement you can meet. Most savings accounts have zero minimum deposit requirement, which is a good news.

You also need to identify the benefits and fees included with getting a savings account. These benefits may include direct deposit, mobile deposit, easy check deposit, and others. These fees may include overdraft fees, over the maximum withdrawal limit fees, etc.


The Best Online Savings Accounts in 2018

Nowadays, there are options to open up a savings account without having to go to a mortar-and-brick bank and get the dreaded 0.06% – the national annual percentage yield (APY) or known as savings account's interest rate.

Some of the best savings accounts are online savings accounts that offer at least 1.00% APY. If you put, let's say, $10,000 in a savings account at 1.00% APY, then, you'll earn $100. Not bad for a safe investment. Imagine if you put more.

The higher the APY, the more money you'll earn. That's awesome for placing your money in a safe place.

Here are some of the best and the highest-paying online savings accounts. These are FDIC-insured banks with years of outstanding reputation in the banking industry.



CIT Bank




Best Features

  • 21x higher APY than regular banks
  • No monthly or maintenance fee
  • Secure banking features - FDIC insured


BBVA Compass




Best Features

  • One of the Nation’s Top Rates
  • Great Rates + Safety = Peace of Mind
  • Open an account in 3 easy steps


CIT Bank

Best Features: 1.55% APY; $100 Minimum Deposit only

Some banks are plain money suckers. Instead of helping you save money and provide you the benefits to help you manage, keep, and grow your money, they charge you a lot to keep your money in their banks.

Have you been or know somebody who has been in that situation? It's not a good feeling. 

Just food for thought, did you know that banks made $6.4 billion (with a B) in ATM and overdraft fees alone? Crazy right?

Stay away from those. There are banks that offer you outstanding FREE benefits without charging you a lot of money.

One of those banks is CIT Bank. CIT has a Premier High Yield Savings account with annual percentage yield of 1.55%.

That's 15,500% higher than the 0.01% rate of some of the nation's leading banks or 2,483% higher than the overall average savings rate of 0.06%.

I like CIT Bank not only because of its sky-high rate but also because it doesn't have monthly servicing, online transfers or incoming wire fees.

It also doesn't charge closing fees, require minimum monthly balances or transactions to receive its stated APY. Best of all, you get all these free benefits with a $100 minimum opening deposit.

It's a place where your money will grow and not where banks can make money from you. It's where great rates and safety mean peace of mind on your part. 

That's the kind of bank you want to place your money. 

Click here to open an account with CIT Bank and let your money grow safely and securely.

cit bank


BBVA Compass Bank

Best Features: 1.50% APY; $25 Minimum Deposit only

Sometimes, even when you want to start saving money and open a savings account, you just can't start because the minimum deposit requirement is above what you can afford.

Some people share the same sentiment as I do when I say it's much easier to build your savings account when banks require less money to start with.

That's where BBVA Compass Bank is the best choice.

You can open your savings account with just $25. That comes with a 1.50% APY. Whether you have $25 or $100,000, you'll get 1.50% APY. Not a lot of banks can say that.

You still get the benefits of traditional banks and other online savings accounts without the minimum amount required to open an account.

Click here to open an account with BBVA Compass Bank and start making money on your money without risking it in other investments.


Barclays Savings




Best Features

  • 21x higher APY than regular banks
  • No monthly or maintenance fee
  • Award winning account


Capital One 360




Best Features

  • Get up to $500 in bonus
  • No monthly or maintenance fee
  • Secure banking features - FDIC insured


AmEx Personal Savings




Best Features

  • The name you can trust
  • Link easily with your bank accounts
  • FDIC insured


Barclays Savings Bank

Best Features: 1.50% APY; No Minimum Deposit

You ever wonder why millionaires or lotto winners go bankrupt years after? You'd probably be asking what they did to lose everything or how. I'm with you on this.

There's one truth about finances and that is no matter how much money you have, it's easy to lose it all when you don't know how to manage it.

That's why it is always best to set up goals. The same idea goes with opening a savings account with the specific bank(s).

It is best to find a bank that will help you grow your money safely and assist you in setting a savings goal you can reach.

That bank is Barclays Savings Bank.

Barclays offers the same banking features that most banks offer, but there are more to this bank.

Barclays' online savings account not only provides 1.50% APY on your money with no minimum deposit but it also assists you in setting your goal using its Savings Assistant feature.

Also, Barclays online savings account does not have monthly maintenance fee. Did I also say that it's 1.50% APY is 21 times higher than the national average bank APY?

Click here to create a savings online account with Barclays and set a goal you can reach.


Capital One 360

Best Features: 1.00% APY; No Minimum Deposit

There are brands that we like and trust so much that no matter how new or old their products are, we still use them because they're under those brands.

That's just how people are. It makes sense though. Why would we use some other products when the brand we know has the same product that it offers?

The same idea applies to banking.

Capital One Bank is known for its credit cards. It offers some of the best credit cards out there. Lately, it has been in the news about it's Capital One 360  for good reasons.

Its savings account offers 1.00% APY with no minimum deposit. It also doesn't have monthly fees, which is designed to keep your account going without any hassle.

Capital One 360 is best for those who want to set and achieve savings goals for specific reasons. Why? You can open up to 25 online saving accounts and use each one for a specific purpose like wedding budget, vacation budget, etc.

More than just a savings account, you can use Capital One 360 to manage your finances.

Create your account here for FREE and perfect your budget with Capital One 360.


American Express Personal Savings

Best Features: 1.55% APY; No Minimum Deposit

While many people and/or banks say that it's a good idea to have both checking and savings accounts under the same bank.

That's generally a good idea. It's not a good idea though if you are using your savings account to act as an overdraft account to cover your checking account when it falls short in cash.

When my wife and I started living as a family and didn't have a lot of money, our savings account would be used to transfer money to our checking account.

We ended up not saving the amount we wanted to have in our savings account.

That's why sometimes, it's best that both the checking and savings accounts are held in different banks.

That's where American Express Personal Savings account shines as it doesn't have a checking account.

This account type offers highly-competitive 1.55% on its savings account. You'll get this rate alongside other personal saving account features like no monthly minimum balance and no monthly fee.

Click here to open a savings account with American Express.


What Do I Need To Be Mindful Of With Online Savings Accounts?

You may not need to worry about the safety of your online savings accounts as they are FDIC-insured.

The one thing you need to be mindful of is the physical presence of the banks' where your savings account is held. Most of these banks only offer an online savings account with no physical presence or support.

That's said, this lack of physical location or support is what supports these banks' highly-competitive APYs. You get online or phone support but not the brick-and-mortar type support we are used to.

Banks that offer high APYs don't have utilities to pay, onsite customer service to pay, rent to pay, etc. These savings are passed down to its customers.

If you are comfortable with the online banking and not the traditional banking, then, setting up an online savings account is for you. If you're not comfortable with that idea, then, the traditional savings account is a viable solution.



A savings account is a great, safe place to put in your money and still earn interest on it. Online savings accounts, to be more specific, are the best ways to go when you want to secure higher APYs than those from the brick-and-mortar, traditional banks.

Which of these banks with online savings accounts do you think fit your needs? Which ones of these are promising?

Allan Liwanag is a personal finance blogger who paid off at least $40K debt in 3 years by adopting simple and extreme saving techniques while ensuring his family’s needs were taken care of. An analyst by day and dedicated blogger by night, he loves to share his thoughts – based on his research, personal knowledge, and experience – on topics related to family, life, and money. Allan lives with his family in Maryland, USA.

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