Written by Libby Wells, Edited by Yuliya, Reviewed by Thomas Brock, CFA, CPA
Choosing the right savings account is key to saving for your goals, because not all savings accounts are the same. Here’s a closer look at eight savings account options to help you determine which one might be the best fit for you.
1. Traditional savings account
How it works: The most common savings account is a traditional savings account at a bank or credit union. You can add money to one of these savings account at any time. Annual percentage yields (APYs) on regular savings accounts are variable and can change.
Rates: Interest rates on traditional savings accounts are generally low compared with other savings products. The national average savings account yield is 0.6 annual percentage yield (APY), according to Bankrate’s survey of institutions as of the week of June 29, 2025. Some big banks pay even less interest — 0.01 percent for a standard savings account at Chase, for example.
Fees: Some banks may charge monthly maintenance fees for traditional savings accounts, while others don’t. If they do charge a fee, they often give ways to waive it, such as having a certain minimum balance in the account. Other possible fees with any savings account — including #2 and #3 on this list — include charges for excessive transactions, account closure, receiving paper statements, dormancy fees and more. Check your bank’s fee schedule for details.
Accessibility: Basic savings accounts typically offer easy access to cash, especially if your account is with the same bank as your checking account. You may be limited to six withdrawals per statement cycle, not including ATM withdrawals or taking out cash inside a branch (though this rule varies by the policies of individual banks).
Insurance: If the bank is a member of the Federal Deposit Insurance Corp. (FDIC) or the credit union is a member of the National Credit Union Administration (NCUA), your savings are insured up to $250,000 per depositor, per insured institution, per ownership category.
2. High-yield savings account
How it works: High-yield savings accounts are similar to traditional savings accounts with one big difference: The interest rates are much higher, allowing you to grow your savings faster without compromising safety or liquidity. These accounts are one of the best places to keep your emergency fund.
Rates: High-yield savings accounts offer much better rates than traditional ones. As of 2025, the highest interest rates on savings accounts are hovering around 4%, whereas many traditional savings accounts only offer 0.01%. You can often find high-yield savings accounts online banks, because they don’t have the expenses of keeping brick-and-mortar branches, they pass those savings to their customers in the form of high rates.
Fees: Many high-yield savings accounts do not have monthly fees, but some do. And as with a traditional saving account, you might still be limited to six withdrawals or electronic transfers per statement cycle, but check with the bank. Some banks have loosened those rules.
Accessibility: Accessibility to your funds can be different, and sometimes worse, compared to traditional accounts. For example, many high-yield savings accounts (especially those offered by online banks) don’t allow cash deposits or only allow cash deposits for a fee. You may also be limited to moving funds only via wire or electronic transfers, as ATM withdrawals may not be available). But funds accessibility varies by bank. And you may find the trade-off of accessibility is worth it for the yield.
Insurance: At a member-FDIC bank or NCUA credit union, your money is safe just like it is in a regular savings account, as long you’re within the limits and guidelines.
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This article originally appeared here and was republished with permission.
