Final Verdict

When it comes to the best free savings accounts, you want an account that charges minimal fees while earning a high APY—and ideally, it comes with some extra bells and whistles that encourage you to save more too. Ally Bank's Online Savings Account has all of this, which is why it wins as best overall.

Anyone can open a free savings account with Ally and grow their savings faster thanks to the bank's 1.00% APY and savings boosters like the ability to round up purchases into your savings or have Ally analyze a linked checking account for missed savings opportunities. The online and mobile banking experience is flawless, and you know your money is protected thanks to this account's FDIC insurance.

Compare the Best Free Savings Accounts

Company	Minimum Deposit	APY	Fees	Maximum Monthly Withdrawals	ATM Access
Best Overall	$0	4.25%	None	6	43,000+ Nationwide
Best for High Yield	$100	Up to 0.61%	None	6	91,000 Nationwide
Best for ATM Access	$0	4.50%	None	6	70,000+ Nationwide
Best for Long-Term	$10	3.20%	None	No limit	No network, unlimited ATM fee reimbursements for checking
Best for Customer Experience	$0	4.30%	None	No limit	70,000+ Nationwide

How to Choose the Best Free Savings Accounts

The best free savings accounts should make it easier for you to save money. Here are some key features to pay attention to:

• APY: This is the interest you earn on your savings. The higher the APY, the more you'll earn, which will help you pad your savings.
• Opening deposit: Make sure you have enough money for the required opening deposit. For many free savings accounts, this is $0, but some may require $10, $25, or even $250. 
• Monthly fees: Avoid savings accounts that charge monthly maintenance fees, even if you can have them waived by maintaining a minimum balance. These fees will eat away at your savings instead of helping them grow.
• ATM access: Some free savings accounts come with an ATM card while others don't. An ATM card isn't a necessary feature if you don't need immediate and easy access to your savings. But without one, you'll need to transfer money from your savings to a checking account to access your funds, and this can take a couple business days.
• Savings boosters: If you want some extra help growing your savings, look for an account that offers savings booster features. This can include recurring automatic transfers, savings buckets, or the ability to round up your purchases and put the change in your savings.

Free Savings Accounts vs. Traditional Savings Accounts

Free savings accounts are often offered by online banks, and they don't charge any monthly fees. On top of that, they often feature a higher interest rate and have lower opening deposit requirements.

Traditional savings accounts are offered by big, national banks and typically charge a monthly maintenance fee to keep the account open. You can often get the fee waived by maintaining a minimum balance, but if your balance dips below that requirement even for a month, you'll be charged a fee. Traditional savings accounts typically offer very low or almost no interest (a 0.01% APY is common) and have higher opening deposit requirements.

Pros and Cons of Free Savings Accounts

Pros Explained

• Low account minimums: Whereas some banks may require customers to deposit hundreds of dollars to open an account, free savings accounts typically have much lower minimums. Customers can usually open a bank account with as little as $5 or even $0. 
• No monthly fees: Monthly account fees are common, and they can chip away at people's savings. Free savings accounts have no monthly account fees (although other fees, like withdrawal fees, may apply). 
• Potentially high APYs: Free savings accounts are available from online banks. Without brick-and-mortar branches, they have fewer overhead costs, so they can offer higher annual percentage yields (APYs).

Cons Explained

• Often no physical branches: Online banks can offer low fees and high APYs because they don't have physical branches. If you need in-person assistance or want the option of withdrawing or depositing through a teller, the lack of branches can be a significant drawback. 
• Cash deposits may not be available: With some free savings accounts, you can only make deposits electronically. If you typically are paid in cash and need to deposit physical bills, you may not be able to do so with a free savings account. 
• Other fees may apply: A free savings account doesn't mean there are no fees at all; it just refers to the lack of a monthly account fee. Other fees are common, including excess withdrawal fees or wire transfer fees.

Alternatives to Free Savings Accounts

A free savings account can be a useful and low-cost tool to save money, but there may be other options that provide higher yields or added functionality.

High-Yield Savings Accounts (HYSAs)

If you want your money to grow as much as possible, an HYSA may be a useful alternative to a free savings account. These accounts allow you to earn a significantly higher APY on your savings. And, if you meet monthly balance requirements, the monthly fees may be waived. Check out the best high-yield savings accounts to see how much you could earn.

Certificates of Deposit (CDs)

If you want to lock in a higher APY, a CD can help you grow your savings. They typically have higher rates than savings accounts because you commit to leaving your money in the account for a specific length of time. If you withdraw money before the CD's maturity date, you may have to pay early withdrawal penalties. The best CD rates are often above 5% in various terms, giving you many options to choose from.

Money Market Account

Money market accounts are another type of deposit account you can use to grow your savings. These accounts tend to have higher APYs than savings accounts, but they're more flexible and accessible than CDs. 

Savings Bonds

Savings bonds are another way to earn a higher yield on your money. Bonds provide a guaranteed rate of interest, and terms can be as long as 30 years. 

Interest Checking

Free savings accounts can earn interest, but the bank or credit union may limit how often you can withdraw money from the account. If you want an account that earns interest and allows you to make withdrawals whenever you want, a high-yield checking account could be a good choice. 

Methodology

We considered more than 20 free savings accounts, mostly offered by online banks and credit unions, when researching this list. To narrow it down to the best free savings accounts, we looked for those with the lowest fees and highest rates as well as any extras that could help consumers save more. We only considered genuinely free savings accounts, which means any account that charged a monthly maintenance fee was automatically off the list, even if it was waivable. Keeping your funds protected is also important, so we only included savings accounts that are FDIC-insured (or NCUA-insured for credit unions).