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It’s been a tough year for savings, as banks have had to get to grips with coronavirus and the lowest Bank of England base rate in history – but which providers are still managing to offer a good service?
To help find out, we asked almost 6,500 people for their opinions on their savings provider, getting insight on everything from how easy the application process is to the provider’s customer service – and of course how good its products are.
Here, Which? reveals which providers came out on top, along with tips on how to choose the best savings account to suit your needs.
Best savings providers of 2020
In July 2020, we surveyed 6,474 members of the public about their savings providers to see how different banks and building societies fare for communications, complaints handling and fees.
We then asked savers how satisfied they were and whether they would recommend the provider in order to calculate an overall customer score.
Of the 37 providers we’ve got scores for, the 18 listed in this table performed the best in terms of customer satisfaction.
If you can’t spot your provider below, our guides on how to find the best savings account and how to find the best cash Isa both contain the full list – and are also updated weekly to show the top rates on the market.
Why should you consider saving with a Which? Recommended Provider?
Only the savings providers that combine excellent customer satisfaction with market-leading accounts and rates can become Which? Recommended Providers (WRPs).
This year, three brands have been named as WRPs: Aldermore, Principality Building Society and Skipton Building Society.
In order to qualify, a brand must:
- Have a customer service score of at least 70%
- Have at least one top-10 account
- Have an average or above-average product rating score.
Here’s what made the new WRPs stand out from the crowd and some information about the savings accounts they offer. Links will take you to more details on our comparison site, Which? Money Compare.
Aldermore
This is the second year in a row that Aldermore has been a Which? Recommended Provider. It achieved a strong customer score of 71%, with customers awarding it top marks for customer service, while also rating its clarity of statements, transparency of charges and interest rates highly.
Among the fixed and instant-access accounts on offer, Aldermore’s one-year fixed-term account offers a competitive rate of 0.75% AER.
Principality Building Society
Earning the highest customer score in our table, Principality Building Society scored an impressive 75%. Customers particularly appreciate the rate of interest it offers, awarding it four stars out of five.
Currently, its instant-access Web Saver account pays 0.6% AER and its instant-access cash Isa offers 0.55% AER.
Skipton Building Society
With a 70% customer score, Skipton Building Society achieved the highest possible rating for customer service. What’s more, its branch service, clarity of statements and transparency of charges were all rated highly, too.
Among the Building Society accounts currently on offer, its three-year fixed-term cash Isa offers 0.8% AER, while its five-year fixed-term cash Isa pays 0.9% AER.
Things to consider before applying for a savings account
Before making a decision about where to save your cash, note that the ‘best account’ for one person might not work for you – it all depends what you’re looking for. Here are a few things to consider before opening a new account:
- Does it offer the style of management you want? While some people prefer to do all of their banking online or via an app, for others it is still important to be able to visit a branch or chat to someone over the phone. Make sure your savings provider can give you the options you want to manage your account.
- How do the rates compare? While rates in general are very low right now, you should still make sure your savings are earning as much as possible. Even if your account doesn’t pay the highest rate, make sure it’s at least competitive or the value of your cash will be eroded by the effects of inflation.
- Are there any tricky terms? Some top-rate instant-access accounts come with extra restrictions – for instance, only allowing a certain number of withdrawals each year, or including a temporary bonus rate that will leave the account much less competitive at the end of the bonus period. Make sure you’re aware of these terms and don’t be caught out.
- Will there be any tax implications? Interest earned in a savings account will count towards your personal savings allowance; if you exceed it you’ll be charged tax on what you earn. However, all interest earned in a cash Isa (or any other Isa for that matter) remains tax-free, regardless of how much you earn. So, if you know you earn a large amount of interest, or you don’t have a personal savings allowance as you’re an additional-rate taxpayer, it may be best to opt for an Isa.
You can search through hundreds of cash Isas and savings accounts with Which? Money Compare.
Which? Limited is an Introducer Appointed Representative of Which? Financial Services Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 527029). Which? Money Compare is a trading name of Which? Financial Services Limited.
Thriftymillionaire’s picks: Best savings accounts in May 2020
Thriftymillionaire’s best widely available online savings accounts with top high yield rates, When selecting the best savings account for you, look for the highest yield while also considering introductory rates, minimum balances and accessibility to your money and account information.
1. High Rate: Vio Bank – 1.50% APY, $100 minimum balance to open (no ATM access)
Overview: Vio Bank, established in 2018, is the national online division of MidFirst Bank. MidFirst Bank has been an FDIC-insured bank since 1934 and was established in 1911, according to the FDIC. Vio Bank offers both a High Yield Online Savings account and CDs.
Perks: Vio Bank’s High Yield Online Savings account has one of the top yields around, and all balances receive this APY. It also has a low minimum requirement of $100 to open the account. The account has no monthly fee. There is no charge for incoming domestic or international wire transfers. There also isn’t any fees for outgoing or incoming external transfers. But the cost of sending a domestic wire transfer is $30.
What to watch for: There’s a $5 dormant account fee per month if you go 12 months without initiating a transaction. This is why it’s so important to watch your account because fees can add up and cut into the interest you earned. You need to initiate a transaction at least once during the preceding 12-month period to keep your account from going dormant. This transaction can be a deposit or a withdrawal.
2. High Rate: Popular Direct – 1.50% APY, $5,000 minimum balance needed for APY (no ATM access)
Overview: A Popular Direct Ultimate Savings account is opened through Popular Bank. Popular Bank is an FDIC-insured bank that was established in 1999, according to the FDIC.
Perks: Popular Direct offers a very competitive APY on its Popular Direct Ultimate Savings account, which debuted in July 2019. You can deposit a check into your Popular Direct Plus Savings account using your mobile device.
What to watch for: Popular Direct has a higher minimum balance requirement than some other banks. But there are also banks that have higher deposit requirements as well. ATM cards are not available for a Popular Direct savings account, but you can make an external transfer via ACH.
There are some fees to be aware of. There’s a $25 fee if you close your account within the first 180 days. Also, if your balance goes below $500 for any day during your statement cycle, there’s a $4 fee.
3. High Rate: Comenity Direct – 1.45% APY, $100 minimum to open account (no ATM access)
Overview: Comenity Direct was created in 2018 and launched its High-Yield Savings Account in April 2019. Comenity Direct is a brand of Comenity Capital Bank. Comenity Bank is best known for its co-branded, private label and business credit card programs. Comenity Bank and Comenity Capital Bank partner with more than 160 retailers worldwide on those credit cards.
Perks: Comenity Direct has one of the highest APYs available. Comenity Direct also has customer care representatives available on the phone Monday through Friday from 7 a.m. to 11 p.m. Central. On weekends and most holidays, the phone hours are 9 a.m. to 5 p.m. Central. Comenity Direct also has the Comenity Direct mobile app. This allows you to make deposits and withdrawals. The app, which is available for iOS and Android, also lets you contact customer service and check your balance.
What to watch for: The account doesn’t offer an ATM card or a debit card for ATM access. But you are able to initiate free ACH transfers.
4. High Rate: Citibank – 1.40% APY, no minimum balance needed for APY (ATM access)
Overview: Citibank, the retail banking arm of Citigroup, launched a high-yield savings account called Citi Accelerate in 2019. The account pays well above the national average as well as higher than many of the savings rates offered by some of the nation’s largest banks. There’s no minimum balance requirement to earn the APY and no minimum to open an account. But the APY is only available in select markets.
Perks: If you’re already a Citi customer or you’re looking for an account at a bank that has a large national presence, this high-yield savings account may be worth considering. The APY is among the top yields you’ll find at a big bank, and the $0 minimum balance required to earn the APY makes it easy for anyone to start saving.
What to watch for: The account carries a monthly service charge fee of $4.50 if you open the Citi Accelerate Savings account in a Basic or Access Account package. If you choose one of those packages, the fee can be waived by keeping at least a $500 average monthly balance.
5. High Rate: Barclays Bank – 1.30% APY, no minimum balance needed for APY (no ATM access)
Overview: Barclays is often known for its credit cards, but it also offers a consistent high yield on its savings products. Products from Barclays are only available online in the U.S. Barclays offers a competitive, high yield on its savings account.
Perks: Among the perks of an online savings account at Barclays, you’ll find a very competitive interest rate, no minimum to open, 24/7 access to funds, online transfers to and from other banks and direct deposit. Additionally, Barclays has a mobile savings app that also allows you to deposit/transfer funds.
What to watch for: If you’re looking for a full-service banking institution, Barclays isn’t a great option. The bank doesn’t offer a checking account option, an ATM network, or branch locations. It’s best for those who like to bank online and want an outside institution for its savings options.
6. High Rate: Capital One – 1.30% APY, no minimum balance needed for APY
Overview: In addition to its credit cards, Capital One also provides a range of banking and lending products. Besides the 360 Performance Savings account, which made its debut in September 2019, Capital One also offers CDs, a savings IRA and a checking account.
Perks: The 360 Performance Savings account at Capital One doesn’t have a monthly fee and doesn’t require a minimum balance when you open the account. Also, you don’t have to maintain a minimum in this account and all balances earn the same APY.
What to watch for: There are some accounts at online banks that offer higher yields on savings accounts.
7. High Rate: Marcus by Goldman Sachs – 1.30% APY, no minimum balance to earn APY (no ATM access)
Overview: The well-known investment firm, Goldman Sachs, opened Marcus as its consumer banking arm. Marcus has built a reputation for having a competitive APY. In addition, Marcus has an easy account opening process and it’s also simple to transfer money to accounts at other banks.
The savings account option from Marcus requires no minimum deposit to open, $1 minimum to earn the APY, and Marcus provides more than just savings products to consumers. It also has a range of personal loan options, from debt consolidation to home improvement.
Perks: Along with a high interest rate, the savings account product from Marcus comes with easy-to-meet requirements and the benefits of an online bank. You can access your account at any time, and you’ll pay no fees for transactions. Marcus’ contact center is open seven days a week.
Marcus’ savings account doesn’t have a minimum deposit amount, so it’s easy for anyone to open this account. Marcus by Goldman Sachs now has an app available on iOS and Google Play, where you can schedule recurring deposits into your account.
What to watch for: You won’t find any branches at Marcus. There’s also no checking account option at Marcus, limiting your liquidity options.
8. High Rate: Synchrony Bank – 1.30% APY, no minimum balance needed for APY (ATM access)
Overview: Synchrony Bank provides a range of depository products for consumers. That includes a savings account, money market account and a number of CDs. As an online bank, it has limited overhead cost, which means it can return those savings to customers in the form of higher rates. Indeed, its savings account and other depository products are consistently among the top-paying accounts. Synchrony also has a highly rated customer service department available by online chat or by phone seven days per week. And customers get a lot of perks, including complimentary identity theft resolution and travel and leisure discounts. You’ll even get a dedicated customer service number as a “Diamond” customer. That’s in addition to access to webinars, three free wire transfers per statement cycle and unlimited ATM reimbursements.
Perks: Customers get a lot of perks, including complimentary identity theft resolution as well as travel and leisure discounts. You’ll even get a dedicated customer service number as a “Diamond” customer. You also have three free wire transfers per statement cycle and unlimited ATM reimbursements.
What to watch for: Synchrony Bank doesn’t offer a checking account. It’s not a full-service bank. So, if you’re looking for liquidity, you might want to stash your cash elsewhere.
9. High Rate: American Express National Bank – 1.30% APY, $1 minimum balance to earn APY (no ATM access)
Overview: American Express is best known for its credit cards. But it also offers a competitive savings account. The account also has no fees and lets you link your external bank account. The company also offers a variety of CDs.
Perks: The online personal savings account from American Express provides a competitive rate. It doesn’t charge any monthly fees, and it doesn’t require a minimum balance. The ability to link current bank accounts offers an easy solution if you have outside accounts that you’d like to view on one platform.
What to watch for: American Express doesn’t have a checking account, so you’ll need to bank elsewhere to get one. Similar to other online banks, American Express does not have any branch locations. And there’s no mobile check deposit option — American Express reserves mobile apps for its credit card customers.
10. High Rate: HSBC Direct – 1.30% APY, $1 minimum balance needed for APY (no ATM access)
Overview: HSBC is a recognized name that serves 38 million customers worldwide. The HSBC Direct Savings account is through HSBC Bank, USA, N.A. The HSBC Direct Savings account is available online in all 48 states.
Perks: The HSBC Direct Savings account has a competitive APY with a low minimum balance of $1 required at account opening. This APY is currently available on all balance tiers. There is no monthly maintenance fee. If you have an HSBC Direct Savings account, you can make a deposit or withdrawal at one of the HSBC retail locations in the U.S.
What to watch for: Treat closing the HSBC Direct Savings account like a six-month CD, since if you close it within 180 days there’s a $25 fee. The money deposited into your HSBC Direct Savings account must be new money – from outside HSBC. The account doesn’t have an ATM or debit card available for it.
11. High Rate: Citizens Access – 1.30% APY, $5,000 minimum balance to earn APY (no ATM access)
Overview: Citizens Access is the online bank division of Citizens Bank. It offers a high yield online savings account and CDs with terms between six months and five years. The online savings account doesn’t have a maintenance fee.
Perks: Citizens Access has a competitive savings account yield near the top of the available offers from Thriftymillionaire. Additionally, there are no sign-up or monthly fees.
What to watch for: There is a $5,000 minimum balance to obtain the high APY. Citizens Access doesn’t have a mobile app, but you can deposit a check by signing into your account on your phone. Also, balances under $5,000 earn only 0.25 percent APY.
Best Savings Rates 2020/21
12. High Rate: Ally Bank – 1.25% APY, no minimum balance needed for APY and a free checking account (no ATM access)
Overview: Ally Bank started in 2004 and is headquartered in Sandy, Utah. In 2009, GMAC Bank was transformed into Ally Bank. Ally Bank exceeded 1 million Ally Bank customer accounts in 2012 and currently has 1.5 million customers.
Perks: You can deposit checks remotely with Ally eCheck Deposit. The Online Savings Account also has no monthly maintenance fees. Ally Bank also has 24/7 live customer care.
What to watch for: Like many online banks, you won’t be able to deposit cash in this account. If you only have the Online Savings Account you won’t be able to get an ATM or debit card. You’re only able to deposit $50,000 in a day and up to $250,000 every 30 calendar days via eCheck Deposit.
13. High Rate: Discover Bank: 1.25% APY, no minimum balance needed for APY (no ATM access)
Overview: Discover Bank has been offering deposit products online since 2007. Discover is best known for its credit cards. But it also offers a savings account, money market account, checking account and CDs.
The Discover Online Savings Account isn’t the highest-yielding account. But it offers a very competitive APY and it has no minimum opening deposit and no monthly fee.
Perks: Discover Bank is a good option for an online bank that offers the most popular types of deposit products.
Not many online banks offer checking, money market accounts, savings and CDs. But Discover Bank offers all four and has competitive products in each category. It also offers a competitive yield on its savings account. Discover Bank might be for you if you want your checking and savings at the same online bank.
What to watch for: The Discover Bank Online Savings Account has a consistent APY. But there are higher-yielding accounts available.
14. High Rate: PurePoint Financial – 1.25% APY, $10,000 minimum balance to earn APY (no ATM access)
Overview: PurePoint is a division of MUFG Union Bank, N.A. PurePoint Financial is consistently among the top-APY savings accounts. The Online Savings account isn’t meant for those who are just starting to save, since it has a higher minimum balance requirement compared with other savings accounts.
Perks: The PurePoint Online Savings account doesn’t have a monthly service charge. Interest is paid monthly with this account. The PurePoint savings account offers one of the most competitive savings APYs around.
What to watch for: If you drop below a $10,000 balance, balances between $0.01 and $9,999.99 only earn 0.25 percent APY. ATM cards aren’t available for PurePoint’s Online Savings account. PurePoint doesn’t have a mobile app. But it does have mobile banking through your phone’s web browser – which has mobile check deposit abilities.
15. High Rate: CIT Bank – 1.25% APY, $25,000 minimum balance or $100/month deposit to earn APY (no ATM access)
Overview: CIT Bank is a nationwide direct bank and is a division of CIT Bank, N.A. CIT Bank, N.A. is a subsidiary of CIT Group Inc., a financial holding company founded in 1908.
Perks: CIT offers competitive yields on its accounts and has a couple of options for savers. The Savings Builder – as long as you open it with at least $100 and keep making at least $100 in monthly deposits – earns a competitive APY.
What to watch for: There are two ways to earn the top APY. You need to either maintain a $25,000 balance, or you can open an account with at least $100 and make deposits of at least $100 each month. You’ll earn a much lower variable rate if your balance goes below $25,000 or if you don’t make monthly deposits of at least $100.
You’d earn that APY if you opened your account on the 15th of the month and didn’t make a qualifying deposit of $100 after opening the account. Your actual APY may be higher or lower, depending on the day of the month that you open your account.
Best Savings Rates April 2020
16. High Rate: WebBank – 1.11% APY, $0.01 minimum balance needed for APY, but balances are required to stay above $1,000 (no ATM access)
Overview: WebBank was established in 1997 and is headquartered in Salt Lake City. It’s an FDIC-insured bank.
Perks: The WebBank savings account doesn’t have a monthly fee and requires a minimum balance of only $1,000. It has one of the highest APYs available. Interest on the WebBank savings account is paid to you on the last business day of the month.
What to watch for: There is a $25 fee for an outgoing wire transfer. There isn’t a maintenance fee on this account. But if your savings account falls below $1,000, the account will be closed and your money will be returned to you according to the WebBank Terms and Conditions for your account. The savings account doesn’t have an app or an ATM card available. WebBank also doesn’t let you deposit a check into any of its accounts. So, all deposits have to be made via ACH or wire transfer. You also can’t receive a withdrawal via check from your WebBank account.