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An online savings account offers convenient account access and the potential for higher interest rates and lower fees than traditional banking. But how do online savings accounts work?
The answer is simple: Really similar to regular savings accounts. An online savings account lets you add money whenever you want without locking up your funds, and many digital savings accounts offer impressive rates compared to what you'd find with brick-and-mortar banks. In fact, online banks offer many of the best high-yield savings accounts. The main differences in how an online savings account works will come down to your options for depositing and withdrawing funds and customer support.
Learn more about online savings accounts and why you should consider them.
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Our partners do not influence our ratings.
4.00%Earn up to 4.00% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.30% APY as of 12/23/25) for up to 6 months. Open a new SoFi Checking and Savings account and pay the $10 SoFi Plus subscription every 30 days OR receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/banking#2. SoFi Bank, N.A. Member FDIC.
Minimum Balance for APY
$0
Bonus Offer
Up to $300New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Why We Like It
Earn a $50 or $300 bonus and up to 4.00% APY1 <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p><p>SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>.</p> on your money with eligible direct deposit
Limited-Time Offer: +0.70% Boost on Savings APY for 6 months on new accounts with eligible Direct Deposit. Terms Apply.2 <p>Earn up to 4.00% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.30% APY as of 12/23/25) for up to 6 months. Open a new SoFi Checking and Savings account and pay the $10 SoFi Plus subscription every 30 days OR receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 1/31/26. Rates variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#2">sofi.com/banking#2</a>. SoFi Bank, N.A. Member FDIC.</p>
No account, overdraft, or monthly fees3 <p>We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a></p>
Get your paycheck up to two days early with direct deposit4 <p>Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.</p>
Access additional FDIC insurance up to $3 million5 <p><b style="font-family: Rubik, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", Arial, sans-serif;">SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.</b></p>
High-yield savings accounts vs. online savings accounts
You'll often see the terms "high-yield savings accounts" and "online savings accounts" used interchangeably, and this is because many online accounts are also high-yield. To be considered "high-yield," an account must earn a higher rate than the national average for savings accounts. This is 0.39% (as of 12/15/25), according to the FDIC. If you're looking at a list of high-yield savings accounts, you can bet that many of them – if not all — will be online. Some will earn 4.00% APY or more.
What is an online savings account?
An online savings account is an account you can open with an institution or company that operates entirely online. You manage your account via a mobile app and/or online portal. This means you won't have access to brick-and-mortar bank branches with an online savings account, and you generally won't be able to get any form of in-person support.
So, why open an online savings account? Traditional bank accounts — including savings accounts — can cost more for brick-and-mortar banks to operate, and institutions often try to recover these costs by charging consumers more fees (and offering them lower rates). Online banks generally have lower overhead than traditional banks with branch networks because they don't have to pay for branches and staff to support them. This is why they're known for passing on more savings to customers in the form of higher interest rates and lower or fewer fees.
Online savings accounts with non-banks
You can open many online savings accounts with companies that offer banking services, often called neobanks or financial technology companies (fintechs). These are entirely legitimate accounts that still include FDIC insurance because they're ultimately issued by member institutions.
How does an online savings account work?
Although online bank accounts can work differently from one institution or company to the next, here's how a typical online savings account works.
Deposits
Most online banks offer some or all of the following options for depositing money into your account:
Deposit checks, either by mail or mobile check deposit
Receive direct deposit from your employer
Receive wire transfer
Cash deposits
Only select online banks permit cash deposits into savings accounts, which is one of the main restrictions that set them apart from traditional accounts. If you have cash you need to deposit into an online savings account, we recommend using an ATM to add that cash to your checking account and transferring the funds from there.
Withdrawals
You can generally take money out of an online savings account in the following ways:
Transfer money to a linked external account
Request a mailed check
Use outgoing wire transfer
Use ATMs, if your savings account is linked to a debit card
Many online banks offer robust customer service options online and over the phone.
You can generally get help with an online savings account by:
Calling customer service
Sending a secure message through your banking portal
Live chatting with a representative
Account management + opening
As we mentioned, you won't be able to manage an online savings account by visiting a branch. Instead, you'll use an online banking platform and/or mobile banking app exclusively. This isn't that different from how normal savings accounts work anymore since most banks offer digital tools, and you can open most savings accounts online (even for banks that operate branches).
Pros and cons of online savings accounts
Pros
Online savings accounts offer many benefits compared to traditional savings accounts with brick-and-mortar banks. These include:
Lower fees and typical minimum balance: Many online savings accounts have no monthly maintenance fees or minimum balance requirements.
Higher annual percentage yields (APYs): Many online savings accounts pay higher interest rates than traditional savings accounts due to having less overhead.
24/7 access: You don't have to wait for traditional bank hours to manage your money. You can manage your account through the online portal or mobile app 24/7.
Cons
Online savings accounts do have their cons when compared to traditional brick-and-mortar banks. This includes:
Limited cash access and deposit options: Many online savings accounts don't include a debit card to deposit or withdraw cash at an ATM.
Fewer account options: Outside of savings accounts, online banks often have fewer accounts to choose from than traditional banks. This can mean that you can only open an online savings account, without access to checking accounts and other banking services if you need them later on.
How to choose an online savings account
To choose the right account for you, look at the online savings account description provided by the financial institution and review take these steps:
Compare APYs: Compare the APYs available on each account and the requirements to earn it. Make sure you can meet requirements to earn the best rate, such as a minimum balance requirement.
Check out fees: Many online savings accounts don't charge monthly fees, but don't assume. Read the fine print and remember to look at other fees, such as excess transaction fees for going over monthly transaction limits.
Research digital tools: Take a few minutes to poke around mobile app reviews and browse online banking platforms to see how easy it would be to manage an online account. Some digital tools are much more user-friendly than others, though most online banks have them figured out.
Look into customer service: Look for an online bank that offers the customer service you're comfortable with, as not all provide phone support or may have limited hours.
Find out about cash deposits: If you see yourself depositing cash often, understand how that works with each bank to ensure it's something you can handle.
5.0
FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment.
Our partners do not influence our ratings.
2025 award winnerBest for Customer Service
American Express® Savings - 3.40% annual percentage yield (APY)6 <p>The Annual Percentage Yield (APY) as advertised is accurate as of November 26, 2025. Interest rate and APY are subject to change at any time without notice before and after a High Yield Savings Account is opened. Interest Rate and APY of a Certificate of Deposit account is fixed once the account is funded.</p>
High Yield Savings Account. No Minimum Required Deposit or Balance.7 <p class="">There is no minimum balance required to open your Account, to avoid being charged a fee, or to obtain the Annual Percentage Yield (APY) disclosed to you.</p> Terms Apply.
FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment.
Our partners do not influence our ratings.
2025 award winnerBest Checking and Savings Combo
SoFi Checking & Savings - Earn Up to $300 When You Set Up Direct Deposit
Limited-Time Offer: Earn a $50 or $300 bonus and up to 4.00% APY on Savings (3.30% APY1 <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p><p>SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>.</p> with +0.70% APY Boost) for 6 Months on new accounts with eligible direct deposit. Terms Apply.2 <p>Earn up to 4.00% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.30% APY as of 12/23/25) for up to 6 months. Open a new SoFi Checking and Savings account and pay the $10 SoFi Plus subscription every 30 days OR receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 1/31/26. Rates variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#2">sofi.com/banking#2</a>. SoFi Bank, N.A. Member FDIC.</p> FDIC Insured.5 <p><b style="font-family: Rubik, -apple-system, BlinkMacSystemFont, "Segoe UI", Roboto, "Helvetica Neue", Arial, sans-serif;">SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per depositor per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $3M through participation in the program. See full terms at <a href="http://sofi.com/banking/fdic/sidpterms">SoFi.com/banking/fdic/sidpterms</a>. See list of participating banks at <a href="http://sofi.com/banking/fdic/participatingbanks">SoFi.com/banking/fdic/participatingbanks</a>.</b></p>
FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment.
Our partners do not influence our ratings.
Use Cash App As Your All-in-One Financial Services Platform
Bank8 <p>Cash App is a financial services platform, not a bank. Banking services provided by Cash App’s bank partner(s). Savings provided by Cash App, a Block, Inc. brand.</p><p class="">Cash App is a financial services platform, not a bank. Banking services provided by Cash App’s bank partner(s). Direct Deposit provided by Cash App, a Block, Inc. brand.</p> without all the fees—save, send, and spend your money the way you want.9 <p class="">Your balance is eligible for FDIC pass-through insurance through our Program Banks Wells Fargo Bank, N.A. and/or Sutton Bank, Members FDIC for up to $250,000 per customer when aggregated with all other deposits held in the same legal capacity at each Program Bank above, if certain conditions are met. Cash App is a financial services platform, and not an FDIC-insured bank. Prepaid debit cards issued by Sutton Bank, Member FDIC. See <a href="https://cash.app/legal/us/en-us/card-agreement">terms and conditions</a>. </p> Get paid up to 2 days early – up to 2 days earlier than most banks10 <p>Your first deposit may take longer depending on your employer.</p>
What kind of interest rates can I expect on online savings accounts?
Higher interest rates are one of the major benefits of online savings accounts, though they vary from bank to bank. A savings account with Capital One 360, for instance, will give you an APY of 3.40% (as of 10/01/25)11 <span>A rate of 3.40% Annual Percentage Yield (APY) applies to all account balances. Advertised rates are variable and effective as of 10/01/25. Rates are subject to change at any time before or after account opening.</span> , while the GreenFi Spend & Save account offers up to 3.00% (as of 10/3/24) APY with GreenFi Plus. Online banks are generally a good place to look for a high-yield savings account with a competitively high APY.
Can you add to your balance regularly for an online savings account?
Yes, you can regularly add to your online savings account balance without issue. To make sure you're adding cash to your account on a regular basis, you could set up direct deposit so that a portion of every paycheck goes into your online savings.
If your account has an APY, regularly adding to the balance of your online savings is a good way to increase the amount of interest you'll earn over time.
How can online banks offer such good interest rates?
Because online-only banks don't need to pay the employee wages, maintenance, and real estate costs associated with brick-and-mortar branches, they can charge fewer fees, require no minimum balance, require a low or no minimum opening deposit, and usually offer better interest rates.
What is the typical minimum balance for an online savings account?
The minimum balance requirement for an online savings account is usually structured one of three ways:
No minimum balance, which is typical for many online banks
A minimum balance to keep the account open, which could be as little as $1 or as much as several thousand dollars
A minimum balance to earn the advertised high interest rate, with anything less earning a lower APY
Is online banking safe? Is my money insured?
To discover the type of protection you have when banking online, make sure your new bank has the words "member FDIC" somewhere on its website or marketing materials. The FDIC, or Federal Deposit Insurance Corporation, is an independent agency of the United States government. If you deposit money at an FDIC-insured bank and the bank later fails, your money is protected (typically a maximum of $250,000 is covered) by that FDIC insurance.
However, banks are not mandated to be FDIC-insured, so it's always important to make sure the bank you're considering is. To see if a bank is FDIC-insured, you can go to the FDIC BankFind page. If you are banking with a credit union, make sure they are covered by the National Credit Union Administration (NCUA).
Even if the online account is insured by the FDIC, you should make sure the bank you choose uses robust technology to protect your money because the FDIC does not provide reimbursements for fraud perpetrated against accounts.
Is your money stuck in an online savings account?
No, your money isn't stuck in an online savings account for a set amount of time. Just like a traditional savings account, your money is accessible to you when you need it. With just a few clicks, you can move money in and out of your savings and into another account.
Transfers to an account within the same bank are usually instant, while transferring to an account with a different bank might take a few business days before the funds are made available.
Bottom line
If you want to earn the highest rates possible on your savings and don't mind managing your account digitally, choose an online savings account. These accounts offer convenience and value over traditional accounts, though you'll sacrifice cash access and in-person support.
FinanceBuzz writers and editors score products and companies on a number of objective features as well as our expert editorial assessment.
Our partners do not influence our ratings.
2025 award winnerBest Checking and Savings Combo
High APY of up to 4.00% on Savings (3.30% APY1 <p>New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not received a cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.</p><p>SoFi members with Eligible Direct Deposit can earn 3.30% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.30% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 12/23/25. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at <a href="http://www.sofi.com/legal/banking-rate-sheet">http://www.sofi.com/legal/banking-rate-sheet</a>.</p> with +0.70% APY Boost) for 6 Months on new accounts with eligible direct deposit. Terms Apply.2 <p>Earn up to 4.00% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.30% APY as of 12/23/25) for up to 6 months. Open a new SoFi Checking and Savings account and pay the $10 SoFi Plus subscription every 30 days OR receive eligible direct deposits OR qualifying deposits of $5,000 every 31 days by 1/31/26. Rates variable, subject to change. Terms apply at <a href="https://www.sofi.com/banking/#2">sofi.com/banking#2</a>. SoFi Bank, N.A. Member FDIC.</p>
Paycheck access up to 2 days early with direct deposit4 <p>Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.</p>
No monthly maintenance or overdraft fees3 <p>We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at <a href="http://sofi.com/legal/banking-fees/">sofi.com/legal/banking-fees/</a></p>
Streamlined savings and savings goals with Vaults
Access to a large ATM network12 <p>We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees may be incurred when using out-of-network ATMs. SoFi’s ATM policies are subject to change at our discretion at any time.</p>
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