Savings Accounts

Find and compare savings accounts from a wide range of respected financial institutions here today with zaving

Last updated by Zaving Editorial Team, on April 4th, 2024

Here at zaving, we understand the importance of saving money, and we want to make the process easier and more rewarding for you. Whether you're planning for a dream vacation, a new home, or a secure financial future, zavings is here to assist you every step of the way.

Our user-friendly website offers a comprehensive comparison of savings accounts provided by leading banks across the United States. We have carefully researched and gathered all the vital information you need to make an informed decision. We believe that finding the right savings account should be a seamless and enjoyable experience. With zavings, you can confidently compare, evaluate, and select the perfect savings account that allows your hard-earned money to grow and flourish. Explore our wide range of savings accounts, discover competitive interest rates, and make the most of your savings here today with zavings. Let us be your trusted partner on the path to a brighter financial future. 

What is a savings account and how does it work? 

A savings account is a type of bank account designed for individuals to deposit and accumulate their money while earning interest on the balance. It offers a safe and secure way to save money for various financial goals.

When you open a savings account, you essentially become an account holder, and the bank acts as the custodian of your funds. You can deposit money into the account, which the bank holds on your behalf. In return, the bank pays you interest on the balance, typically calculated on a monthly or annual basis. The interest earned helps your savings grow over time.

Savings accounts sometimes have certain limitations, such as a limited number of monthly withdrawals or minimum balance requirements, which can vary depending on the financial institution and the type of account. 

How does a savings account work?

Here's an overview of how savings accounts work:


  • Regular Contributions: You can deposit money into your savings account at any time, either with a fixed amount or occasional deposits.
  • Direct Deposit: Set up automatic transfers from your paycheck to your savings account.
  • Electronic Transfers: Move funds from your checking account or another account into your savings account.
  • Cash or Check Deposits: Visit a branch or use an ATM to deposit cash or checks.


  • Interest Accrual: The bank pays you interest on the balance of your savings account.
  • Annual Percentage Yield (APY): It represents the effective annual interest rate, including compound interest.
  • Compound Interest: Interest earned on your initial deposit and any previously earned interest.
  • Calculation Frequency: Interest can be calculated daily, monthly, or annually, depending on the bank's policy.
  • Interest Payment: Banks may credit the interest earned to your account on a monthly or quarterly basis.


  • Access to Funds: You can withdraw money from your savings account when needed.
  • Limitations: Some banks impose limits on the number of withdrawals per month due to federal regulations.
  • Withdrawal Methods: Use an ATM, visit a branch, transfer funds electronically, or request a check.

Account Management:

  • Online Banking: Many banks offer online platforms for convenient account management.
  • Statements: Regularly review your account statements to track transactions and monitor savings.
  • Mobile Banking: Access your savings account through mobile apps for easy monitoring and transfers.
  • Savings Goals: Set financial goals and track progress within your savings account.

Understanding how savings accounts work empowers individuals to make informed decisions about managing and growing their savings effectively. Remember to review the terms, conditions, and fee schedule provided by your bank for specific account details

How do I open a savings account? 

1. Choose a Savings Account: Determine the type of savings account that aligns with your financial goals. Consider factors such as interest rates, account features, fees, and minimum balance requirements.

2. Research Different Banks: Utilize zavings to research and compare various banks and their savings account offerings. Look for a bank that provides the best combination of features, rates, and terms that meet your needs.

3. Select a Bank: Once you've found the ideal savings account through zavings, click on the link to be directed to the bank's website and start the account opening process.

4. Complete the Application: Fill out the bank's online application form accurately and provide the required personal information, including your name, address, Social Security number, and employment details.

5. Provide Identification: Prepare valid identification documents, such as a driver's license, passport, Social Security card, or state-issued ID, to verify your identity as per regulatory requirements.

6. Review Terms and Agreements: Carefully read through the terms and conditions, fee schedules, and account agreements provided by the bank. Understand the rules and requirements associated with the savings account.

7. Sign the Documents: Sign the necessary documents electronically or physically to finalize the account opening process. Make sure you understand the implications of the agreements you're entering into.

8. Receive Account Details: Once your savings account is successfully opened, the bank will provide you with account details, including your account number, routing number, and instructions for accessing your account online or through mobile banking.

9. Make an Initial Deposit: Some savings accounts may require an initial deposit to activate the account. Follow the bank's instructions to make the required deposit, which can often be done through electronic transfer, check, or cash.

10. Start Saving: Once your account is funded, you can begin saving and watch your money grow over time. Set savings goals and regularly contribute to your account to maximize the benefits of saving.

Remember to keep copies of all the documentation provided during the account opening process for your records. If you have any questions or need assistance, don't hesitate to contact the bank directly for further guidance.

By following these steps, you'll be on your way to opening a savings account that helps you achieve your financial objectives.

What documents will I need to open a savings account? 

The specific documents required to open a savings account may vary slightly depending on the financial institution and your individual circumstances. However, common documents typically needed include:

  • Proof of identification: This can be a valid government-issued ID such as a driver's license, passport, or state ID card.
  • Proof of address: A document that verifies your residential address, such as a utility bill, bank statement, or rental agreement.
  • Social Security number: You will need to provide your Social Security number or taxpayer identification number for tax reporting purposes.
  • Date of birth: The bank may require your date of birth to confirm your identity and age eligibility.

It's recommended to contact the specific bank or credit union where you plan to open the savings account to inquire about their document requirements. They can provide you with the most accurate and up-to-date information.

How can I earn interest on my savings account?

Earning interest on your savings account is one of the primary benefits of depositing your money in a savings account. Here's how it works:

  • Interest Rates: Banks offer an annual interest rate, usually expressed as an Annual Percentage Yield (APY). The APY represents the amount of interest you can earn on your savings in a year.
  • Compounding: Interest can compound daily, monthly, quarterly, or annually. Compounding allows you to earn interest not only on your initial deposit but also on the accumulated interest over time, accelerating your savings growth.
  • Account Balance Impact: The higher your account balance, the more interest you can earn. Interest is calculated based on your average daily balance.
  • Variable and Fixed Rates: Some savings accounts have variable interest rates, which can change over time, while others offer fixed rates for a specific duration.

To maximize interest earnings, consider high-yield savings accounts, which often offer competitive interest rates. Remember that interest earned is subject to taxes, so consult a tax professional for specific guidance.

What are the benefits of a high-yield savings account? 

High-yield savings accounts offer several advantages over traditional savings accounts due to their competitive interest rates. High-yield savings accounts generally provide more attractive interest rates, allowing your money to grow at a faster pace and potentially generating more significant returns over time. Here's a summary of their advantages over standard savings accounts:

  • Higher Interest Rates: High-yield savings accounts typically offer higher interest rates than standard savings accounts.
  • Increased Earnings: With higher interest rates, the accumulated interest on your savings can significantly boost your earnings compared to accounts with lower rates. This can be especially beneficial for long-term savings goals, such as saving for a down payment on a home or funding your retirement.
  • Preservation of Capital: High-yield savings accounts often come with the same level of safety as traditional savings accounts. They are typically backed by FDIC insurance, which protects your deposits up to the maximum limit allowed by law. This ensures that your funds are secure and protected against loss.
  • Accessibility and Convenience: High-yield savings accounts are commonly offered by online banks or financial institutions, providing easy access to your funds through online banking platforms and mobile apps. This accessibility allows you to manage your savings conveniently, make deposits or withdrawals, and monitor your account anytime, anywhere.
  • No or Minimal Fees: While some high-yield savings accounts may have minimal fees, many do not charge monthly maintenance fees or impose transaction fees. This can help you maximize your savings without worrying about unnecessary expenses eating into your earnings.
  • Flexibility: High-yield savings accounts often offer flexibility in terms of deposit and withdrawal options. You can typically link your high-yield savings account to your checking account for easy transfers and have the freedom to add to your savings or withdraw funds when needed.
  • Opportunity for Financial Growth: By taking advantage of the higher interest rates offered by high-yield savings accounts, you can accelerate your financial growth and achieve your savings goals more efficiently. Whether you're saving for a specific milestone, building an emergency fund, or planning for the future, a high-yield savings account can be a valuable tool to help you reach your objectives.

Can I have multiple savings accounts? 

Yes, you have the flexibility to open multiple savings accounts, whether at different banks or within the same institution. Here's a more detailed explanation:

  • Financial Organization: Having multiple savings accounts allows for better financial organization. You can designate each account for specific purposes, such as emergency funds, short-term goals, or targeted savings for expenses like vacations or home renovations.
  • Diversification: Spreading your savings across multiple accounts helps diversify your risk. If one bank experiences issues, you still have access to funds in other accounts, ensuring greater financial stability.
  • Account Features and Benefits: Different banks offer various features and benefits for their savings accounts, including interest rates, account management tools, or customer service quality. Opening multiple accounts allows you to take advantage of the best features each bank has to offer.

However, keep in mind that managing multiple accounts requires vigilance in monitoring balances, avoiding potential fees, and staying organized. Assess your financial needs and goals to determine the number of savings accounts that best suits your circumstances.

What is the difference between a savings account and a checking account?  

Savings Account

A savings account is a type of bank account designed for the purpose of saving money over time. Here are some key differences between savings accounts and checking accounts:

  1. Purpose: Savings accounts are primarily used for accumulating funds and earning interest on the balance. They are suitable for long-term savings goals, such as saving for a down payment on a house, an emergency fund, or a vacation.
  2. Access to Funds: While you can access your money in a savings account, there are usually limitations on the number of withdrawals you can make each month. Savings accounts are not intended for frequent transactions like bill payments or daily spending.
  3. Interest Earnings: Savings accounts generally offer higher interest rates compared to checking accounts. The interest earned on savings accounts is typically calculated on a daily or monthly basis and added to the account balance, helping your savings grow over time.
  4. Minimum Balance: Savings accounts may require a minimum balance to be maintained to avoid fees or to qualify for higher interest rates. The specific minimum balance requirements vary by bank and account type.
  5. Fees: While some savings accounts may have monthly maintenance fees, many banks offer fee-free savings accounts, especially for basic savings products.
  6. Account Features: Savings accounts often come with additional features such as automatic transfers, allowing you to set up regular deposits from your checking account or paycheck. Some accounts also offer tools to track your savings progress and set financial goals.

Checking Account:

A checking account, on the other hand, is a transactional account that provides easy access to your funds for everyday spending and bill payments. Here are the key characteristics of checking accounts:

  1. Transaction Usage: Checking accounts are designed for frequent transactions, such as writing checks, making electronic payments, using debit cards, or withdrawing cash from ATMs.
  2. Easy Access: Checking accounts offer convenient access to your funds through various channels, including ATMs, branches, online banking, and mobile apps.
  3. Lower Interest Rates: Unlike savings accounts, checking accounts usually have minimal or no interest on the balance maintained. The focus of a checking account is on providing transactional capabilities rather than earning interest.
  4. Overdraft Protection: Checking accounts often come with overdraft protection, allowing you to make transactions even if you have insufficient funds. However, overdrafts may incur fees and interest charges.
  5. No or Low Minimum Balance: Some checking accounts may have no minimum balance requirements, while others may require a minimal balance to avoid fees.

In summary, savings accounts are intended for long-term savings and earn higher interest rates, while checking accounts are designed for frequent transactions and day-to-day expenses.

Are savings accounts FDIC insured?

Yes, savings accounts are generally FDIC insured. The Federal Deposit Insurance Corporation (FDIC) is an independent agency of the United States government that protects depositors' funds in the event of a bank failure. FDIC insurance provides coverage of up to $250,000 per depositor, per insured bank.

To ensure that your savings account is FDIC insured, it's important to open an account with a bank that is a member of the FDIC. Most banks in the United States are FDIC members, including national banks, state-chartered banks, and savings associations. You can verify a bank's FDIC membership by looking for the FDIC logo on the bank's website or contacting the bank directly.

FDIC insurance protects your savings in the event of bank failures, insolvencies, or other financial difficulties faced by the bank. It provides peace of mind and safeguards your deposits, allowing you to save with confidence.

It's important to note that FDIC insurance only covers deposits held in FDIC-insured banks, including savings accounts, checking accounts, certificates of deposit (CDs), and money market accounts. However, it does not cover investments, such as stocks, bonds, mutual funds, or annuities.

FDIC insurance provides several benefits for savings account holders:

  1. Protection: FDIC insurance protects your savings from loss in the event of a bank failure. Even if the bank goes out of business, your deposits are insured up to the coverage limit, currently set at $250,000 per depositor, per insured bank. This coverage applies to both the principal amount and any accrued interest.
  2. Peace of Mind: Knowing that your savings are FDIC insured gives you peace of mind, allowing you to focus on your financial goals without worrying about the safety of your deposits. It adds a layer of security to your financial planning and helps build confidence in the banking system.
  3. Stability: FDIC insurance promotes stability in the banking industry by instilling confidence in depositors. It assures individuals that their money is safe and encourages them to keep their funds in insured banks. This stability contributes to the overall health and functioning of the banking system.
  4. Wide Coverage: FDIC insurance covers a wide range of deposit accounts, including individual accounts, joint accounts, revocable trust accounts, certain retirement accounts, and more. This ensures that various types of savings accounts are protected by the insurance.

It's important to note that FDIC insurance limits apply to each depositor separately. If you have multiple accounts in the same bank, such as a savings account and a checking account, each account is insured up to $250,000. If you have accounts in different FDIC-insured banks, each bank is considered a separate insurance coverage.

By choosing a savings account with FDIC insurance, you can enjoy the benefits of safety, security, and stability for your hard-earned money. It's always advisable to confirm the FDIC insurance coverage of your chosen bank and account to ensure your savings are fully protected.

More of your frequently asked questions about savings accounts

Are there age restrictions for opening a savings account?

Generally, there are no age restrictions for opening a savings account. Minors can open accounts with a parent or guardian as a joint account holder. Some banks may have specific age requirements or offer specialized accounts for children or teens. These accounts often have features designed to help young savers learn financial responsibility. It's important to check with individual banks to understand their specific policies and requirements for opening a savings account for minors.

What are the advantages of an online savings account?

An online savings account offers several advantages. First, it typically offers higher interest rates compared to traditional brick-and-mortar banks. Second, online savings accounts often have lower fees and minimum balance requirements. Third, they provide 24/7 access to your account through online and mobile banking, making it convenient to manage your savings from anywhere. Finally, online banks often have robust security measures to protect your funds. Overall, an online savings account can help you maximize your savings potential while enjoying convenient banking services.

Can I set up automatic transfers to my savings account?

Yes, many banks offer the option to set up automatic transfers to and from your savings account. Automatic transfers allow you to schedule regular deposits from your checking account or another source into your savings account. You can choose the frequency and amount of the transfers, such as weekly, biweekly, or monthly. Setting up automatic transfers is a convenient way to consistently save and build your savings without having to manually initiate each transaction.

How can I deposit money into my savings account?

There are several ways to deposit money into your savings account. The most common methods include:

  • Direct deposit: Arrange with your employer or any other income source to directly deposit funds into your savings account.
  • Online transfer: Use online banking to transfer money from another account you own or from a linked checking account.
  • Mobile check deposit: Take a photo of a paper check using your bank's mobile app and deposit it electronically.
  • In-person deposit: Visit a bank branch and deposit cash or checks with a teller or through an ATM.
  • Electronic funds transfer: Initiate a transfer from another bank or financial institution to your savings account.

Choose the method that is most convenient and secure for you to ensure your savings grow consistently.

Can I have joint ownership of a savings account?

Yes, many banks allow joint ownership of savings accounts. Joint ownership means that two or more individuals have equal rights and access to the account. This can be beneficial for couples, family members, or business partners who want to pool their savings and manage it collectively. Joint accounts provide shared responsibility and ease of transferring funds between account holders. It's important to note that joint accounts also mean that each account holder has equal ownership and control over the funds.

Are there any fees associated with savings accounts?

Some savings accounts may have fees associated with them. Common fees include monthly maintenance fees, excessive withdrawal fees (for exceeding the limit), paper statement fees, or fees for certain additional services. However, many banks offer fee-free savings accounts, particularly those with online banking models. To avoid unexpected charges, carefully review the fee schedule and terms of the savings account before opening it. Look for accounts with low or no fees to maximize your savings.


Can I link my savings account to other accounts?

Yes, most banks allow you to link your savings account to other accounts, such as checking accounts or investment accounts. Linking accounts provides flexibility and convenience for fund transfers. You can easily move money between your savings and checking accounts, enabling seamless transactions and the ability to use funds for daily expenses while keeping the rest in savings. Additionally, linking accounts may simplify financial management, allowing you to monitor your overall financial health in one place.


What is the average interest rate on a savings account?

Interest rates on savings accounts vary among banks and are influenced by market conditions. It's crucial to compare rates to maximize your earnings. The Annual Percentage Yield (APY) indicates the total interest you can earn in a year, including compound interest. Look for savings accounts with competitive rates to ensure your money grows over time. Banks may offer different rates based on the account balance, promotional offers, or relationship with the bank.


Are savings accounts the same as certificates of deposit (CDs)?

No, savings accounts and CDs differ in terms of accessibility and interest rates. While savings accounts allow frequent deposits and withdrawals, CDs have fixed terms and typically offer higher interest rates in exchange for locking in funds for a specific period. CDs are ideal for long-term savings goals, while savings accounts provide more flexibility for regular transactions and emergency funds.

Can I transfer money between my savings account and other accounts?

Yes, you can typically transfer money between your savings account and other accounts you hold, such as checking accounts or investment accounts. This can usually be done through online banking or by contacting your bank's customer service. Transferring money between accounts allows you to manage your finances efficiently, allocate funds for different purposes, and take advantage of higher interest rates in your savings account while still having access to your funds when needed.

Can I withdraw money from my savings account at any time?

Yes, you can withdraw money from your savings account at any time. However, some savings accounts have limitations on the number of withdrawals you can make per month without incurring fees. It's important to review the terms and conditions of your specific savings account to understand any restrictions or fees associated with withdrawals.


What happens if I close my savings account?

If you choose to close your savings account, you will need to contact your bank and follow their specific procedures. Before closing the account, ensure that all pending transactions are cleared and any automatic transfers or payments linked to the account are updated or canceled. Once the account is closed, you will receive any remaining balance, and the account will no longer be active.