I Asked 2 Financial Advisors About Their Favorite Savings Account — Here’s What They Said

Having a separate savings account keeps your money liquid and accessible while removing some of the temptation of using it. As long as that account is also FDIC-insured, your hard-earned cash is also safe from bank failure — at least up to a certain amount.

Read More: I’m a Bank Teller — 4 Reasons You Should Withdraw Your Savings Right Now

Trending Now: 9 Easy Ways To Grow Your Wealth in 2024

But not all savings accounts are created equal. Some of the best ones offer a high yield — also known as annual percentage yield or APY. They also often have other features like savings roundups or buckets that make it easier to set and track individual savings goals.

GOBankingRates asked two experts which savings account is their favorite. Here’s what they said.

You can also find out how much money you should have in your savings at every stage of your life .

SoFi

Chelsea Williams, The Money Whisperer and a fractional CFO with Money Mastery , said SoFi is her favorite savings account.

“High-yield savings accounts are the way to go,” she said. “I prefer the ones from SoFi, but there are others. Using this type of savings account helps ensure that any ‘stagnant’ money earns money through this vessel. I like SoFi because it’s super easy to set up and has other cool in-app features such as credit monitoring, loan suggestions and plenty more.”

SoFi’s HYSA features up to 4.5% APY , which is higher than many other high-yield accounts. It’s also about 10 times higher than the national savings account rate.

There aren’t any monthly fees, which means your money can go even further. There’s also no minimum balance requirement, so the barrier of entry is low. Plus, if you’re looking for a checking account, you’ll get one when you open a savings account.

Another key feature of this savings account is money roundups, which let you automatically round up debit card purchases to the next dollar and transfer them to savings. Currently, you can get up to a $300 bonus for setting up direct deposit when you set up an account.

While not a feature of the savings account per se, SoFi’s checking account also comes with 0.50% APY. This means that even the money set aside for regular use can grow over time.

Find Out: How Much Money Do Americans Have in Their Bank Accounts in 2024?

Ally

For Uziel Gomez, a certified financial planner (CFP), accredited financial counselor (AFC) and the founder of Primeros Financial , Ally is the way to go.

“I appreciate Ally’s high-yield savings account because it offers a better interest rate than traditional banks and comes with a handy buckets feature,” he said.

As of Sept. 13, Ally Bank’s savings account has a 4.20% APY. While slightly lower than SoFi’s, this applies to all balance tiers. Ally also has no monthly maintenance fees, minimum opening deposit or minimum balance requirement. Plus, this account comes with additional features like roundups, automated savings and buckets.

The buckets feature is one of Gomez’s favorite aspects of Ally’s savings account.

“This feature lets you organize your savings into different categories or ‘buckets,’ which helps save for specific goals,” he said. “It taps into the concept of mental accounting, where people separate their money into different accounts for various purposes. Rather than juggling five separate savings accounts for different goals, this account lets you keep everything consolidated in one place while still dividing your funds into distinct goals.”

If you’re someone who struggles to save consistently or who wants to save for different goals simultaneously, this could be a helpful feature for you.

Choosing the Best Savings Account for You

There’s no one perfect savings account, but certain features can make certain financial institutions more attractive than others. If you’re looking to open a new savings account, keep an eye out for:

• APYs: Higher is generally better, but be aware that the rate you get when opening an account could vary.
• Fees: Some banks or credit unions charge fees, such as monthly maintenance fees or fees for dropping below the minimum balance. These can eat into your savings.
• Federal insurance: Look for an FDIC-insured bank. Ally and SoFi both have FDIC-insured savings accounts.
• Accessibility and location: While many savings accounts come with online access, there may be a time when you need in-person services, too. In that case, choose an option with physical branches or other customer service options.

This article originally appeared on GOBankingRates.com : I Asked 2 Financial Advisors About Their Favorite Savings Account — Here’s What They Said