Some savings accounts are great, and others, not so great. I’m not talking about avoiding banks that are about to fail or savings accounts that don’t have deposit insurance. Those are no-brainers to avoid.
We’re listing legitimate banks and pointing out bad savings accounts that are not worth your time, either due to a rock-bottom rate and high monthly fees (sometimes both).
The national average savings rate in the US is currently 0.40%. That rate isn’t that impressive already, but wait until you see the rates on some of these accounts.
These mediocre savings accounts aren’t in any particular order, but we chose them for this not-so-best list based on their monthly fees, low APYs or inaccessibility.
Sorry, Chase — I know you’re one of the biggest banks in the US, but your savings rates are comically low. The Chase Savings account has one of the lowest rates out there, offering just 0.01% APY on all balances. On top of that, the account has a $5 monthly fee. However, you can waive the monthly fee with a $300 average daily balance or by setting up recurring transfers. But that APY simply isn’t worth it. If you’re a fan of Chase but want a better savings rate, consider its certificates of deposit (CDs) instead, which typically have better rates.
Why it stinks: Poor APY and $5 monthly fee.
Redeemable qualities: Very large and secure bank, with nationwide branch and ATM access.
This account stinks for the same reasons the Chase one does. It has a low 0.01% APY, a $25 opening deposit requirement and it charges a $5 monthly fee. Just like Chase, you can waive that monthly fee with a $300 daily balance or by setting up recurring transfers. But again, that low APY doesn’t make up for the hassle of waiving the fee.
Why it stinks: Low APY, $5 monthly fee and the bank has a history of scandals.
Redeemable qualities: Well-known, established bank, with decent CD rates and various services.
Another big bank with a small APY, the Bank of America (BofA) Advantage Savings account earns between 0.01% and 0.04%, depending on whether you’re a Preferred Rewards member. But even with the premium BofA membership, that “higher” rate is not great. On top of that, the account charges an $8 monthly fee and requires a $100 opening deposit.
Why it stinks: Low APY, $8 monthly fee and $100 opening deposit.
Redeemable qualities: Large bank with a variety of products and services.
This kids’ savings account is for all ages and comes with educational features, but it has a very low 0.01% APY and a $5 monthly fee. You can waive the monthly fee if one of the owners is under the age of 18, but again, that rate isn’t exactly competitive. It does offer budgeting features with Sesame Street characters, but it won’t grow your kids’ savings very much at all. Other PNC’s checking and savings accounts can offer better rates and perks.
Why it stinks: Low APY and $5 monthly fee.
Redeemable qualities: Established bank with decent hybrid checking and savings accounts.
Large brick and mortar banks, like Chase and Wells Fargo, have to worry about overhead costs, like paying rent on properties, maintaining their ATM networks, paying employees and maintaining all other infrastructure they have.
All these costs add up, so in turn, they don’t tend to pay the best interest rates on their deposit accounts. However, the positives that come with brick-and-mortar banks can make up for the lower returns on savings.
For example, a bank with branch locations means you can go to a location to deposit a check, withdraw cash, get a cashier’s check, request a replacement debit card or just talk to a real person to resolve an issue.
But nothing says you must limit yourself to just banks with physical branches. You could have an account with a traditional bank for the branch access and also have an online bank account to earn better rates on your savings.
You can find better savings rates well above 0.01% and with lower monthly fees. There are high-yield savings accounts with sky-high rates and low fees so you don’t have to settle for less.
Compare top savings accounts by their features, all with better fees, APYs and accessibility than the not-so-great options we just covered.
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How we picked theseThe Finder Score crunches over 250 savings accounts from hundreds of financial institutions. It takes into account the product's interest rate, fees, opening deposit and features - this gives you a simple score out of 10.
To provide a Score, Finder’s banking experts analyze hundreds of savings accounts against FDIC-reported national averages as a baseline. Accounts with rates well over the national average are scored the highest, while accounts with rates well below are scored low.
Big banks don’t typically offer the most competitive rates, because they have to pay for all of their infrastructure. Online banks, on the other hand, don’t have to maintain physical branches, so they can offer higher savings rates and lower fees on deposit accounts.
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