This Is the Best Online Savings Account for 2021

Father and daughter with piggy bank
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A new year can be the perfect time to look for a new savings account.

One option that should be near the top of your list is Capital One’s Performance Savings. Capital One earned the honor of being named the best all-around bank for online savings in Money magazine’s annual rankings.

Money says the bank’s Performance Savings account stands out for several reasons. For starters, it pays 0.40% annual percentage yield (APY), which is fairly robust in these days of low yields.

It also offers other key perks, including:

  • No annual fees
  • No minimum required deposit
  • No minimum required balance

If you live in certain parts of the Northeast or along the Gulf Coast, you have access to local Capital One branches.

If you live somewhere else, you can still withdraw money from a Capital One account by using the Allpoint ATM network. Money says Allpoint has tens of thousands of machines across the country.

Capital One also is a good option for those who also want a new checking account, as its 360 Checking account pays 0.10% APY on balances and does not charge fees. Money calls that “an unusual combination.”

Now is a great time to open a savings account. As we reported, earlier this year, the Federal Reserve suspended a rule that normally limits certain types of withdrawals from savings accounts to six transactions per month. So, if you need to make more than six such withdrawals in a month, you may be able to avoid fees for excessive transfers.

The change was intended to make life a little easier on savers during the coronavirus pandemic. And there is a good chance that the new rule will remain in place long after the virus is gone. The Federal Reserve has said it “does not have plans to re-impose transfer limits,” although it reserves the right to make future changes to the rule.

A savings account is the perfect place to park money intended for emergency purposes. For more, check out “9 Tips for Starting an Emergency Fund Today.” And to compare savings account rates, stop by Money Talks News’ Solutions Center.

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