Tired of Monthly Bank Fees? These Savings Accounts Earn Up to 5% APY, Without Recurring Fees

Every available dollar that you can use to build your savings counts, but nowadays some banks are still siphoning off your precious funds in the form of monthly fees. Whether you’re a seasoned long-term saver, or just beginning to set aside some of your hard-earned money, where you decide to park your savings can make a big difference to your return. 

Many profitable financial institutions offer no-fee savings account options that allow you to save for a rainy day or prepare for a special treat you’ve been planning without “nickel and diming” you with fees. 

Choosing the best no-fee savings account will, above all, be a highly individual decision. “Consider what features are important to you,” said Jenn Schell, financial researcher for Annuity.org. “If earning the most interest is your biggest priority, then choosing an online high-yield savings account might be the best option.” Given that the top-yielding no-fee savings accounts today are offering rates as high as 5%, it’s best to shop around for the account that gives you the best return without eating it away with fees.

What is a no-fee savings account?

A no-fee savings account, also known as a free savings account, is a deposit account offered by banks, credit unions and neobanks that allow you to store your cash without paying fees for basic banking services such as monthly maintenance fees.

A traditional savings account may charge fees for not meeting the minimum balance requirement. That’s where no-fee savings accounts can help. Some banks waive these fees for no-fee savings accounts allowing your money to grow faster without incurring additional costs.

No-fee savings accounts don’t scrimp on services that come with traditional savings accounts. In most cases, you can still deposit and withdraw funds, earn interest and access banking services online or via a mobile app. 

However, some banks, credit unions or neobanks that offer no-fee savings accounts still charge for services such as paper statements, wire transfers and excessive withdrawals. 

The best no-fee savings accounts

We narrowed down the top-yielding no-fee savings accounts that offer a combination of competitive annual percentage yields, widespread accessibility and are federally insured by either the Federal Deposit Insurance Corporation or National Credit Union Administration.

Rates as of June 27, 2023.

Common savings account fees to avoid

Your savings account should help you save and earn more money — whether for emergency savings, a future expense such as a family vacation or to meet your savings goals. Fees work against your ability to maximize your savings. Here are some common charges associated with savings accounts that you should avoid when possible.

• Monthly maintenance fee: This is a monthly fee that is charged by financial institutions for maintaining an account. Sometimes this fee can be waived by meeting certain criteria such as signing up for eStatements or direct deposit. It’s best to avoid accounts with monthly maintenance fees or those without very simple options to waive the fee.
• Minimum balance fee: Some savings accounts require you to maintain a minimum balance to avoid incurring a fee. You want to avoid savings accounts that charge this type of fee, especially if you struggle to maintain a reasonable balance in your savings account.  
• Excessive withdrawal fee: A Federal Reserve Board rule, Regulation D, historically limited the number of withdrawals or transfers you can make from your savings account to six per month. That rule was removed in 2020, but many banks maintain the withdrawal limit and charge a fee if you exceed it. Always track your withdrawals and note any limits in place to avoid this fee.
• ATM fees: If you use an out-of-network ATM, your bank may charge you an ATM fee. If you frequently use ATMs, look for an account that offers a significant number of ATMs in your area or reimburses ATM fees.
• Paper statement fee: Many financial institutions charge a fee for receiving paper statements by mail. Opt in to receive electronic statements will eliminate this fee.
• Account closure fee: Closing your savings account within a certain window may also trigger a fee. This window is generally 90 days or less and is in place to discourage account churning — opening and closing accounts in rapid succession to receive new account bonuses. Note any policies regarding account closure fees before closing the account to avoid surprises.

Additional no-fee savings account perks to consider

A savings account with no fees allowing you to keep more of your hard-earned money is a huge win. However, there are more perks to consider that can contribute to a healthy banking experience. “You may want to look for a bank with 24/7 customer support, especially if it’s an online bank with no physical locations,” said Schell. “You could also look for accounts with convenient features like mobile check deposit or online bill pay.”

Here are a few perks and features most banks offer and are worth considering for your savings goals.

• Competitive APY: Look for a no-fee savings account that offers a competitive APY. The best rate means your savings will grow faster over time, helping you maximize your returns.
• Account access: You’ll want access to your savings when you need it. Either through physical branches, a mobile and online platform or a combination of both. Make sure the bank you choose has the account access options you need to make banking easy and convenient. 
• ATM access: Whether you need to withdraw cash frequently or not, think about the ATM network the bank offers and any fees associated with out-of-network ATMs. When you need to access your cash, avoiding ATM fees either because of an extensive network or out-of-network fee reimbursements will help you avoid paying unnecessary fees.
• Customer service: Note a financial institution’s options for reaching customer service. If in-person customer service is not available, many offer phone, email, or live chat support to address any concerns.
• Savings sub-accounts: Sub-accounts allow you to separate your savings into accounts with unique labels organized according to individual savings goals. You can set up a sub-account, for example, called My New Car Fund. Savings sub-accounts help you track your progress as you focus on completing a savings goal.
• Relationship benefits: Combining a no-fee savings account with other deposit accounts or services at the same bank, credit union or neobank can help you qualify for benefits such as higher interest rates, fee waivers or preferred customer status. These perks can help you decide between accounts at two institutions that have similar features.
• Sign-up bonuses: Although rare, some no-fee savings accounts may also offer a cash incentive to open a new account. These incentives can range from $50 to $500 and may require certain criteria to be met before the cash bonuses are disbursed.

How to open a no-fee savings account 

Opening a no-fee savings account is a simple process. Once you’ve reviewed several options and selected a no-fee savings account, follow these general steps to complete the process.

1. Gather the necessary information and documents to fill out your application. Usually, banks ask for a government-issued ID such as a driver’s license or passport, Social Security number and contact information.
2. Visit the financial institution in person or complete the application online. 
3. Fund your account with an initial deposit once your application is approved. Some accounts require a minimum deposit account.
4. If the option is available, you’ll need to set up online or mobile banking access to manage your savings account conveniently. Follow the instructions provided to set up your account access.

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