Your Guide to the Best High Yield Savings Accounts of December 2024

Yes, your money in an online savings account is safe because your deposits are insured by the FDIC (up to the eligible limits) just the same as a savings account from a brick-and-mortar bank. Online banks are FDIC-insured too. In fact, the most popular online banks are some of the biggest U.S. financial institutions (by deposits).

You’re likely to earn the most interest on your savings from an online bank. An online bank is able to offer market-leading interest rates because it doesn’t have to pay the high operating costs of running a physical network of branches and ATMs. Without having to pay expenses for real estate, employee staffing, security, insurance, maintenance, and utilities, customers of online banks benefit from higher savings rates and lower (and fewer) fees.

Yes, you can open and have multiple savings accounts, even at the same bank. This is particularly useful if you want to divide your savings for specific purposes or financial goals.

Under federal law, you cannot make more than six (6) withdrawals or transfer out of your savings account per month. Banks may charge an excess withdrawal fee after the sixth withdrawal or transfer per month. Additionally, if you make excess withdrawals on a regular basis (ultimately determined by the bank), the bank may choose to close your account or convert the account into a checking account. Note: Some banks charge a withdrawal fee before the 7th withdrawal. For example, the bank might charge such a fee upon the 5th withdrawal.