An individual can open savings accounts as an emergency fund. They are maintained by banks and financial institutions. The money saved in the account earns a yearly interest as per bank policies. The idea behind opening a savings account is to encourage people to set aside some portion of their liquid assets for a rainy day. Every individual has reasons to open a savings bank account, such as their children’s education or as an emergency fund. Whatever might be your reason, saving money is a good habit.

A savings account is a method to maximize your savings. Though some traditional checking accounts pay interest, but not as high as savings accounts. These accounts are federally insured with a high annual percentage yield (APY). You should choose the banks that offer high APY as they help you grow your money faster. Some of the best savings account in order of high APY are as f0llows.

1. Marcus by Goldman Sachs
Best for customers looking to increase their savings.

• APY – 0.50% (higher than national average of 0.06%)

• Minimum balance – $0
• Monthly Fee – None
• Pros – Allow you $100,000 same-day transfer
• Cons – Customer needs an external account to transfer money. They don’t have any ATM network or checking account facility.

2. Ally Bank
Ally Banks is the best if you are comfortable with online banking.

• APY – 0.50%
• Minimum balance – $0
• Monthly Fee – None
• Pros – Strong customer service with 43000 free ATMs across the country via checking account.
• Cons – Customer cannot deposit cash as they don’t have any physical branches. They are an online banking facility.

3. TIAA Bank
Earlier known as EverBank, this bank offers a lucrative savings account.

• APY – 0.50%
• Minimum balance – $25
• Monthly Fee – $5 (can be avoided if minimum balance is maintained)
• Pros – Good rate of interest on saving accounts. They also have a huge ATM network across the country.
• Cons – They don’t have many branches and have a high overdraft fee.

4. Chime
Partnered with two banks to offer checking and savings account.

• APY – 0.50%
• Minimum balance – $0
• Monthly Fee – $0
• Pros – Huge ATM network across the country. If customers make a direct deposit, they get their paycheck two days early. No overdraft fees.
• Cons – Cash deposit may cost you money with online transfers limited to $200 per day.

5. American Express National Bank
Offer a competitive rate of interest and is best for customers with online banking experience.

• APY – 0.40%
• Minimum balance – $0
• Monthly Fee – None
• Pros – Good rate of interest on savings accounts.
• Cons – Customer cannot deposit cash and no mobile apps for banking. The customer needs a separate checking account.

Benefits of a savings account
Following are the few benefits of opening a savings account.

• Earn annual interest
  Not every bank offers interest on checking accounts. By opening a savings account, you can earn high interest on your savings deposited and maintained in the bank account.

• Zero or low monthly fee
  Unlike checking accounts, many banks offering savings accounts don’t charge any monthly fee to maintain a minimum balance.

• Better organization of funds
  You can organize your money as per your financial goals. For day-to-day spending, you can keep the money in your checking account, whereas for long-term goals, you can keep your funds separately in a savings account.
• Keep a tab on your s pending
  When you have easy access to money, you tend to spend impulsively. This is usually the case with the money in a checking account. Using saving account funds will require you to make an extra effort, so you might think twice before dipping into your savings.