Start with banks and credit unions you already know

The fastest way to find a savings account is to check whether your current bank or credit union offers one. If you already have a checking account somewhere, you have a head start: the institution knows you, you know how to use their website or app, and you can often open a savings account in minutes without leaving home.

Call the customer service number on the back of your debit card, visit a branch in person, or log into your online account and look for "Open a New Account" or "Savings Products". Most banks and credit unions will show you their savings account options right there, along with the current interest rate and any monthly fees.

If you do not have an existing account anywhere, or if your current institution does not offer savings accounts, move to the next section.

Key Takeaways

  • Your current bank or credit union is the easiest place to start because they already have your information and you can often open an account online in minutes.
  • Online banks typically offer higher interest rates than brick-and-mortar banks because they have lower overhead costs, though they cannot take cash deposits in person.
  • Credit unions often have lower fees and more flexible rules than banks, but you must meet membership requirements first.
  • Comparing interest rates, monthly fees, and minimum balance requirements across at least three institutions will show you real differences in what you earn and what you pay.
  • Once you have narrowed your choices, read the account disclosure document before opening anything — it tells you exactly what the bank will charge you and when.

Compare online banks if you want a higher interest rate

Online banks are institutions that operate only on the internet — they have no physical branches. Because they do not pay for buildings or tellers, they can offer higher interest rates on savings accounts than traditional banks. The trade-off is that you cannot walk in with cash or speak to someone face-to-face, though most online banks let you deposit checks by taking a photo with your phone.

Common online banks include Ally, Marcus, Discover, and Capital One 360, though there are many others. You can find current interest rates by searching "[bank name] savings account rate" or by visiting comparison websites like Bankrate or DepositAccounts. These sites let you filter by interest rate, fees, and minimum balance so you can see what is available right now.

Opening an account at an online bank usually takes 10 to 15 minutes. You will need your Social Security number, a government ID, and a way to fund the account — either a debit card, a check, or a transfer from another bank account. Money typically arrives within one to three business days.

Look into credit unions if you want lower fees

Credit unions are member-owned financial institutions that often charge fewer fees and offer better terms than banks. The catch is that you must meet membership requirements to join — usually you need to live or work in a certain area, belong to a particular employer or profession, or be related to someone who is already a member.

To find credit unions you might join, use the CO-OP Network locator or the Shared Branch locator on the Credit Union National Association website. You can also search "[your city] credit union" to see what is available locally. When you find one that accepts members like you, call or visit to ask about their savings account options, interest rates, and fees.

Credit unions are especially worth considering if you are new to banking or have had trouble with banks in the past. Many credit unions offer second-chance checking accounts and are more willing to work with you if you have a thin credit history or a past banking problem.

Use a comparison tool to see rates and fees side by side

Once you have a list of three to five institutions you are considering, use a comparison tool to see what each one actually charges. Websites like Bankrate, NerdWallet, and DepositAccounts let you filter savings accounts by interest rate, monthly maintenance fee, and minimum balance requirement.

Pay attention to three numbers: the Annual Percentage Yield (APY), which tells you how much interest you will earn in a year; the monthly fee, which is what the bank charges you just for having the account; and the minimum balance, which is the smallest amount you must keep in the account to avoid a fee. A high interest rate means nothing if a monthly fee eats it all back, so look at the full picture.

Interest rates change frequently — sometimes weekly — so the rate you see today may not be the rate you get tomorrow. Check the comparison site again the day you plan to open the account to make sure the rate has not dropped significantly.

Read the account disclosure before you commit

Before you open any account, the bank or credit union must give you a document called a Deposit Account Agreement or Account Disclosure. This is a legal document that explains exactly what the bank will charge you, when they charge it, and what you get in return. It is not exciting reading, but it is the only place where all the real rules are written down.

Look for these specific things in the disclosure: the monthly maintenance fee (and whether it can be waived), what triggers overdraft fees if you somehow spend more than you have, how interest is calculated and when it is paid to your account, and what happens if your balance falls below the minimum. If anything is unclear, call customer service and ask them to explain it before you open the account.

Decide whether you want a physical branch nearby

If you prefer to handle banking in person — to deposit cash, ask questions face-to-face, or straightforward feel more comfortable with a physical location — you will need a bank or credit union with a branch near you. Online banks cannot take cash deposits, so they are not a good fit if that matters to you.

If you rarely visit a branch and mostly use your phone or computer, an online bank's higher interest rate might be worth the trade-off. If you like having a place to go, a local bank or credit union is worth the slightly lower rate.

Open your account and fund it

Once you have chosen an institution, the actual opening process is straightforward. You will need your Social Security number, a government-issued ID (driver's license, passport, or state ID), and proof of your current address — usually a recent utility bill, lease, or bank statement.

You will also need to fund the account with an initial deposit. Most banks and credit unions require at least $1 to $25 to open, though some have no minimum. You can usually fund it when ready with a debit card, a check deposited by photo, or a transfer from another account. Money from a debit card or transfer typically arrives within one to three business days.

Frequently Asked Questions

Is it safe to open a savings account at an online bank?

Yes. Online banks are insured by the FDIC (Federal Deposit Insurance Corporation) just like brick-and-mortar banks, which means your money is protected up to $250,000 per account. Check the bank's website to confirm they display the FDIC insurance logo.

Can I open a savings account without a Social Security number?

Most banks require a Social Security number or an Individual Taxpayer Identification Number (ITIN). Some credit unions and community banks may work with you if you have an ITIN but no SSN — call ahead and ask before you visit.

What is the difference between a savings account and a money market account?

A money market account usually offers a higher interest rate than a savings account but requires a larger minimum balance and limits how many withdrawals you can make per month. For most people new to saving, a regular savings account is simpler and more flexible.

Do I have to keep money in a savings account once I open it?

No. You can close the account anytime and withdraw your money. Some banks charge a fee if you close within a certain period (often 90 days), so check the disclosure before opening. If there is a closing fee and you think you might close soon, choose a different bank.

What if I want to switch banks after I open an account?

You can close your account and move your money anytime. If your new bank is at the same institution, you can often transfer money when ready. If you are moving to a different bank, the transfer usually takes one to three business days. There is no penalty for switching.