How No-Fee Savings Accounts Compare
Savings accounts have long been the cornerstone of individual money management. They have been a quintessential tool for stowing away money securely while also earning a modest amount of interest.
Traditional savings accounts, however, often come with a host of fees — monthly maintenance fees, minimum balance fees, and sometimes even transaction fees — that can take a significant bite out of your hard-earned savings.
No-fee savings accounts are a highly customer-friendly alternative to their traditional counterparts. In a world where every penny counts, the appeal of a no-fee savings account is hard to overlook. Imagine a financial product that allows you to keep all of your interest earnings without having to worry about hidden charges whittling away at your balance.
Let’s take a look at no-fee savings accounts to understand their features, advantages, and how they stand out from traditional savings options.
Key Takeaways
What are no-fee savings accounts: Specialized accounts with zero monthly, balance, or transaction fees, maximizing your savings.
Advantages: No fees and often no minimum balance requirements, making these accounts accessible and flexible.
Comparison to traditional accounts: Unlike traditional accounts with fees and balance requirements, no-fee accounts offer a cost-free experience.
How to choose: Focus on interest rates, customer service, and ease of fund transfers to pick the best no-fee account for your needs.
What is a no-fee savings account?
A no-fee savings account offers the convenience and accessibility of a standard savings account, but with an added benefit — no hidden fees to eat into your hard-earned interest. The beauty of this account lies in its simplicity: you earn interest on your money, and you keep all of it without any charges diminishing your savings over time.
Like traditional savings accounts, no-fee savings accounts may be subject to monthly withdrawal limits (those opened through Raisin have no withdrawal limits).
Savings accounts are a secure, low-risk option banking option backed up by federal insurance — either through the FDIC for banks or the NCUA for credit unions. This insurance cover extends up to $250,000 per depositor, per institution.
How do no-fee savings accounts work?
Much like any other savings account, the interest you earn on a no-fee savings account is calculated based on the annual percentage yield (APY). The interest compounds over time, which means you earn interest on both your initial deposit and any interest already earned, resulting in exponential growth. While the interest rate might be subject to fluctuations due to market conditions or Federal Reserve benchmarks and the specific deposit needs of the institution, the absence of fees ensures that your net earnings remain untouched.
How do no-fee savings accounts differ from traditional savings accounts?
The primary distinguishing feature between a no-fee savings account and a traditional savings account is the fee structure. There are other subtle but important differences between the two types of accounts as well that prospective account holders should consider.
Here are some of the key distinctions:
Fee Structure
One of the most noticeable differences between a traditional and a no-fee savings account is the fees.
No-Fee Savings Accounts: These accounts either have no monthly maintenance fees or offer ways to waive those fees.
Traditional Savings Accounts: These accounts typically come with monthly maintenance fees, which can often be waived if you meet specific conditions like maintaining a minimum balance or setting up direct deposits. Traditional savings accounts may also impose other kinds of fees such as wire transfer fees, early account closure fees, and paper statement fees.
Interest Rates
Interest rates can significantly affect how much you'll earn over time.
No-Fee Savings Accounts: These accounts often come from online banks that have fewer overhead costs, allowing them to offer competitive APYs.
Traditional Savings Accounts: The APYs for these accounts are generally lower compared to online banks due to the higher overhead costs of maintaining physical branches.
Accessibility
Your ability to access your funds can vary between the two types of savings accounts.
No-Fee Savings Accounts: These accounts are usually accessible online and offer a limited range of deposit options, sometimes excluding cash deposits.
Traditional Savings Accounts: These accounts are often available both online and through physical branches, offering a wider range of deposit options including cash deposits.
Transaction Limits
Both types of accounts are subject to withdrawal limitations, but the flexibility may differ.
No-Fee Savings Accounts: They can be subject to monthly withdrawal limits, however accounts opened through Raisin have no withdrawal limits.
Traditional Savings Accounts: They can also be subject to monthly withdrawal limits.
Account Minimums
Minimum balance requirements can affect how much you need to keep in your account.
No-Fee Savings Accounts: Often have low or no minimum balance requirements. Accounts opened through Raisin have no monthly minimum balance requirements.
Traditional Savings Accounts: May require a minimum balance to avoid monthly fees.
How to pick the right no-fee savings account
Choosing the right no-fee savings account involves more than just looking for an absence of fees. You should also consider the interest rates, the type of financial institution offering the account, and any additional fees that might apply.
Here's a brief rundown of the essential factors to keep in mind:
Interest Rates: Don't let the allure of zero fees make you overlook the applicable APY. A higher APY can result in significant interest earnings over time.
Type of Financial Institution: No-fee savings accounts are often offered by online banks, which can afford to provide higher interest rates due to lower operating costs. Make sure your chosen bank or credit union is federally insured.
Additional Fees: Even no-fee accounts might have hidden charges like wire transfer fees or excessive transaction fees. Always read the fine print to ensure you're not caught off guard.
Liquidity and Access: Consider how easy it is to access your funds. Check if there are penalties for early withdrawal, or if there is a limit on the number of free withdrawals per month.
Raisin’s platform allows you to find and fund some of the most competitive high-yield savings accounts — all with no fees attached. All our offerings come from federally insured banks and credit unions, meaning deposits are covered up the per-institution limits. Utilizing this platform can serve as a reliable starting point in your journey to find the best no-fee savings account.
Simplify your savings journey with Raisin
Picking the right no-fee savings account can be confusing at times, especially when financial institutions make you jump through hoops to ensure your account isn’t dinged every month.
At Raisin, we simplify this complex decision-making process for you. There are no monthly account minimums, no hidden fees, and $1 minimum deposits for all of the high-yield savings products offered through our platform. Plus, every bank and credit union we partner with is federally insured, offering you peace of mind along with compelling savings options.
Why juggle multiple accounts and financial institutions when you can manage them all under one roof? With Raisin, you get the convenience of a single login, allowing you to efficiently oversee your various accounts.
Discover the wide array of no-fee savings accounts and elevate your financial game with Raisin today!
What to Look for in a No-Fee Savings Account
The interest rate.
Usually expressed in terms of APY or annual percentage yield, a savings account’s interest rate tells you how much interest you earn on your savings. The higher the APY, the better performing the savings account is in terms of interest earnings. Unlike fixed-term savings products like CDs, savings accounts are likely to offer interest rates that are subject to fluctuation, often based on Federal Reserve benchmarks and prevailing market conditions.
Fees.
Nobody likes paying fees, even for a savings account with high interest. So choosing a savings account with few or no fees attached ensures nothing is eating away at your interest earnings. Some of the potential fees to watch out for include fees for going below a minimum deposit balance and fees for exceeding the limit on monthly withdrawals. Savings accounts through Raisin don’t charge any fees.
Withdrawal limits.
It’s common to see banks put a limit of six withdrawals or outbound transfers per month on savings accounts. Exceeding that limit may incur penalties. This is not, however, an industry-wide practice. So, make sure to investigate what, if any, withdrawal limits are placed on a savings account you’re considering. Again, withdrawals from savings accounts through Raisin are not subject to any withdrawal limits.
Deposit insurance.
One of the most important benefits of a savings account is the protection it offers through the stability of the bank itself, plus the deposit insurance backing that institution. Savings accounts with FDIC member banks and with NCUA-insured credit unions offer coverage of up to $250,000 per depositor, per account. Not every bank or credit union is federally insured, though. You must confirm whether your savings are insured before opting for a savings account. Fortunately, Raisin partners only with federally-insured financial institutions on its platform.
The bank behind the account.
While it’s not a factor that likely affects the function of a savings account itself, the values and mission of the bank behind it may be of importance to you. For instance, some banks are dedicated to community development, others have minority ownership, and some support causes like youth education or housing for underserved communities. Many customers take these considerations into account when choosing an institution to bank with.
How to Choose a No-Fee Savings Account
All it takes is an online search to be flooded with hundreds of no-fee savings account options from multiple banks, credit unions, and digital-first financial institutions. Picking the best no-fee savings account, however, will take deeper research than just a cursory glance at no-fee savings account rates.
Here are four important factors to consider besides high-yield savings account rates before you put your money in a no-fee savings account.
Deposit insurance
Earning a great interest rate on your savings at a bank or credit union can feel great, however it’s only made better with the assurance that that money is insured up to per-depositor, per-institution limits in case that institution fails. Making sure any institution where you open a high-yield savings account is either FDIC- or NCUA-insured is key for securing your savings. Fortunately, Raisin exclusively partners with federally insured financial institutions.
Fees structure
Lucrative interest rates on HYSAs can be severely undercut by high maintenance fees and minimum balance penalties. Evaluate each of these factors carefully and make sure they don’t eat into your interest returns. Again, no high-yield savings account offered through Raisin charges any fees and only has a $1 opening account balance minimum.
Liquidity
Be extra careful reading up on the terms and conditions surrounding the liquidity of your high interest savings account. Having easy access to funds can prove crucial during emergencies. Unlike accounts opened through Raisin, which have no limits on the number of withdrawals made per month, some banks or credit unions may impose monthly withdrawal limits on high-yield savings accounts.
Pick a bank, credit union, or digital-first bank that offers complete transparency over the terms and conditions surrounding its no-fee savings accounts. Doing sufficient research can prove key to maximizing your returns and having a satisfactory banking experience overall.
A partner that enables you to make the most of no-fee savings accounts
Picking the right no-fee savings account can be confusing at times and downright challenging at others.
The sheer variety of available options, the wildly attractive interest rates, and the dizzying maze of terms and conditions can be tough to navigate. You need a reliable partner to help you sort through the confusion.
At Raisin, we understand how some financial decision-making can be tough for even the most experienced of customers. That is why we have a high entry bar for all of the partner banks and credit unions available through our platform.
All our partner banks and credit unions are federally insured in addition to having long-established market reputations and credibility in serving their customers. The safety and security of your funds are top priorities for us, as is helping you manage your finances as easily as possible. Where else can you handle multiple accounts with different financial institutions from the ease of a single login?
Find out more about the competitive savings products and lending options on Raisin today!
What Is Raisin?
Raisin brings together high-yielding savings products offered by a network of U.S. financial institutions. It’s your destination to discover competitive savings products and start saving wisely. Select and fund multiple savings products from different institutions and manage them all from one account.
Safety
Funds deposited into any of the savings products available through on Raisin are always held by a federally insured financial institution. A very easy and safe way to diversify your deposit portfolio. We use a host of cybersecurity measures to protect your funds and sensitive information.
Choice
Savings products from our network of financial institutions offer flexible terms and some of the most competitive interest rates. You can easily find the right product or mix of products for you.
Convenience
One account to hold all your deposit products. Simplified statements. Easy access to manage your funds – all through a streamlined digital platform.
How Raisin Protects Your Money and Personal Information
Federal Deposit Insurance Corporation
All participating banks are members of the FDIC. Deposits in participating banks are insured by the FDIC up to the limits of federal law. The standard insurance amount is $250,000 per depositor, per insured bank, for each deposit account ownership category.
Click to learn more about FDIC insuranceNational Credit Union Administration
All participating credit unions are insured by the NCUA through its Share Insurance Fund. Deposits in participating credit unions are insured by the NCUA up to the limits of federal law. The standard insurance amount is $250,000 per depositor, per insured credit union, for each deposit account ownership category.
Click to learn more about NCUA insuranceCybersecurity is a top priority at Raisin
We invest in a variety of technologies to protect our customer’s data, privacy and transactions. These include multi-factor authentication, encryption, and web application firewall advanced internet protection technologies. We are a SOC 2 certified organization, which means we have met the requirements outlined by the American Institute of Certified Public Accountants (AICPA) to ensure that we have the controls in place to keep customers' data secure and private.
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FAQs
Raisin is a digital platform that gives savers unparalleled access to a variety of deposit products through the convenience of a single account, helping you unlock the growth potential of your cash savings.
Raisin customers use the platform to fund federally insured deposit products offered by numerous U.S. banks and credit unions with a wide range of maturities and APYs (annual percentage yield), allowing you to build a savings strategy to suit your earning and liquidity needs.
Raisin is not a bank. It provides the digital “storefront” where banks and credit unions can promote their deposit products.
Raisin is operated by Raisin LLC, a 100% subsidiary of Raisin GmbH, a trailblazer for open banking in the deposits and investments space. In the U.S., Raisin helps banks and credit unions improve their deposit funding by offering national reach for their retail deposit products, and provides savers with better access, more choice and higher convenience when evaluating savings products from FDIC insured banks and NCUA insured credit unions.
Your Raisin account gives you access to savings accounts and certificates of deposit offered by a variety of banks and credit unions with the security of federal deposit insurance. These products include:
High-yield Savings Account (HYSA). As its name indicates, this account type functions like a traditional savings account — with typically no restrictions on depositing and withdrawing funds — but earns interest (or dividends in the case of credit union savings products) at rates that are higher than the national average for standard savings accounts.
Money Market Deposit Account (MMDA). Also known as a money market account or MMA, this type of savings account offers a varying rate that allows you to earn interest (or dividends) on your funds with maximum flexibility for withdrawals. Like a HYSA, an MMDA offers features of a traditional savings account with typically higher returns.
No Penalty CD. Through the flexibility of a No Penalty CD, you can lock in a competitive rate for a fixed term with the option to make a full withdrawal without having to pay a penalty for the early termination. Terms and conditions may vary by product. Please see specific product terms for more details.
Fixed Term CD. With this longstanding savings vehicle, funds are held for a fixed term, and a competitive APY (annual percentage yield) provides safe, predictable earnings. In contrast to No Penalty CDs, typically you are charged a fee if you do not complete the full term of the Fixed Term CD.
Interest (or dividend in the case of credit union savings products) is compounded daily and posted to your account monthly.
The short answer is yes! Raisin exclusively partners with FDIC-insured banks and NCUA-insured credit unions.
For Raisin customers who hold savings products offered by one of our partner banks, funds are insured by the FDIC up to the maximum amount in accordance with and as permitted by law at each bank holding their funds. The standard deposit insurance coverage limit is $250,000 per depositor, per FDIC-insured bank, per account ownership category. Ownership categories as defined by the FDIC include single bank accounts (owned by one person/depositor) and joint bank accounts (owned by two or more persons/depositors). Revocable trust accounts and some types of retirement accounts (e.g., IRAs) are among the other ownership categories covered by FDIC insurance. All deposits you have at a bank — whether made through Raisin or otherwise — count toward the deposit insurance limit. If funds held at a bank in a certain ownership category exceed the coverage limit, then the amount in excess of the limit will not be insured.
For Raisin customers who hold a savings product offered by one of our partner credit unions, funds are insured by the NCUA through its Share Insurance Fund. According to the NCUA, each credit union member has at least $250,000 in total coverage. The Share Insurance Fund insures individual accounts up to $250,000. Additionally, a member’s interest in all joint accounts combined is insured up to $250,000.
At Raisin, cybersecurity is our priority. Raisin is a SOC 2 certified platform, meaning it has been validated by outside auditors across five (5) key information security principles. We also use a variety of measures to protect our customers' data, privacy and transactions, including:
• User authentication. The Raisin platform uses multi-factor authentication combined with leading authentication technology to validate our customers’ identities.
• Data encryption. Your personal information is encrypted in-transit and at rest using advanced cryptographic security algorithms.
• Site protection. Web application firewall advanced internet protection technologies are implemented to protect Raisin.com from malicious actors, botnets and denial of service attacks (DDOS).
• Monitoring. An always-on information security monitoring platform detects and alerts us to information security events.
• Assessments. Our platform undergoes vigorous security assessments and testing throughout the lifecycle of application development, from architecture planning to production phases.
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A. Check out our savings marketplace and choose a product in which you would like to deposit money.
B. Create your username and password.
C. Complete an application and, after successful identity verification, link a bank account from which to fund your first savings product.
D. Start earning interest as soon as your money is received by the bank or credit union offering the savings product you selected.
Any questions or concerns? Email us at support.us@raisin.com.
All deposits and withdrawals are completed within one to three (1-3) business days. After the initial deposit a withdrawals limitation for the first few business days may exist.
Business days are Monday through Friday excluding U.S. bank holidays.
For products offered by banks, all necessary registration is handled when you become a Raisin customer. One of the many benefits of our platform is that you can open a single account and earn competitive interest rates from banks in the Raisin network. When you select and fund a savings product offered by a credit union, there is an additional step of becoming a member. Raisin makes that process quick, easy and free. You still have one Raisin login and can view all your savings products in one convenient dashboard.
The current APY for your savings products can always be viewed on the Account Overview page when you are logged in to Raisin. This information also appears on monthly statements.
You cannot currently link your Raisin account to a third-party app, but we may offer this feature in the future. For now, you will not be able to link your selected savings product to a third-party app even if the bank or credit union offering that product does so outside of the Raisin platform.
More on Savings and Money Market Accounts
Email: support.us@raisin.com
|Call: 844-994-EARN (3276) (Monday to Friday from 9:00 a.m. - 4:00 p.m. ET)
The Raisin name and logo are trademarks of Raisin GmbH. All other trademarks, logos, marks, and brand names are the property of their respective owners — used with permission.
© 2024 Raisin GmbH. All rights reserved.
*APY means Annual Percentage Yield. APY is accurate as of {todayDate}. Interest rate and APY may change after initial deposit depending on the terms of the specific product selected. Minimum opening deposit is $1.00.
Raisin is not an FDIC-insured bank or an NCUA-insured credit union, and does not hold any customer funds. Funds deposited through Raisin are exclusively held at federally insured financial institutions. FDIC or NCUA deposit insurance coverage covers the failure of partner banks and credit unions on the Raisin platform.
Customer funds are held in various custodial deposit accounts. Each customer authorizes the Custodial Bank to hold the customer’s funds in such accounts, in a custodial capacity, in order to effectuate the customer’s deposits to and withdrawals from the various bank and credit union products that the customer requests through Raisin.com. The Custodial Bank does not establish the terms of the bank or credit union products and provides no advice to customers about bank or credit union products offered through Raisin.com. Central Bank of Kansas City (CBKC), Member FDIC, d.b.a. Central Payments is the Service Bank. CBKC, Lewis & Clark Bank and Starion Bank, each Member FDIC, are the Custodial Banks.