(Bankrate) -Bankrate regularly surveys approximately 4,800 banks and credit unions in all 50 states to provide you with one of the most comprehensive comparisons of rates. All of the savings accounts below are insured by the FDIC at banks or the NCUA at credit unions. When selecting the best savings account for you, look for the highest yield while also considering introductory rates, minimum balances and accessibility.

See a summary of our rates.

SHOW 50 MORE RESULTS

(+) Important information about our rate tables

Summary: Best Savings Accounts

What is a savings account?

A savings account is a type of financial tool found at both banks and credit unions. These federally insured accounts typically pay interest, but often at lower rates than other interest-bearing financial products insured by the government, like certificates of deposit.

In exchange for lower rates, they offer more liquidity, allowing for up to six types of withdrawals or transfers per statement cycle.

That makes savings accounts ideal for stashing money you may need access to if unexpected costs arise.

Indeed, savings accounts can play a crucial part in your financial health. Because there's no set term for maturity with a savings account, they provide a good spot to park your emergency fund.

And safety is the name of the game with these savings products. Savings accounts are insured up to $250,000 at banks by the Federal Deposit Insurance Corp. (FDIC) and at credit unions by the National Credit Union Association (NCUA).

Why get an online savings account?

Online savings accounts have a few distinct benefits over savings vehicles found at brick-and-mortar institutions.

Most notably, online savings products tend to offer higher interest rates and lower fees. That's because online banks don't carry the same overhead costs compared with walk-in branches, and can pass on that savings to customers.

In exchange for being able to visit a branch and talk to a teller, online banks often offer round-the-clock customer service. And cutting-edge technology is also a big perk, which typically allows for things like online bill payment, mobile check deposit and often a larger ATM network.

What is the average interest rate(s) on a savings account?

Over the past several years, since the financial crisis, interest rates on savings accounts have been historically low. But they have been inching up lately.

The average interest rate on a savings account is 0.09 percent APY.

Fortunately, many banks and online institutions offer savings account rates well above that average. That makes it crucial to shop around for the best deal when you're in the market for a savings vehicle.

Do savings accounts have compound interest?

When choosing a savings account, it's important consider how often the account compounds interest. Generally, all savings accounts compound, but some do it more often than others — on a daily, monthly, quarterly or even annual basis.

Daily compounding is ideal. The more frequently interest is compounded, the faster your savings will grow.

Keep in mind that because of compound interest, even small deposits can add up to big amounts over time.

You can use our compound interest calculator to calculate your potential earnings on a savings account.

Is savings account interest taxable?

The IRS considers any interest earned on a savings account to be taxable. If you earn interest from your savings product, you'll be required to submit at 1099-INT form to the IRS.

Fortunately, you don't have to pay interest on your savings account's balance, only on the interest earned. So, if your savings account has $1,000 and you earn $10 in interest for the year, you only pay taxes on that $10 gain.

Benefits and risks of a savings account

Savings accounts, like all financial tools, come with benefits and risks. It's wise to weigh the pros and cons to see if one of these accounts is ideal for your financial situation.

Here are some of the benefits of a savings account:

• Security: Savings accounts are federally insured up to $250,000, making them great places to stash cash.
• Liquidity: You can access your money when needed. Savings accounts allow only for up to six withdrawals or transfers per statement cycle, but you won't have to sell investments in order to get your money out.
• Earnings: The money you keep in a savings account earns interest over time and compounds, offering a return on the principal.

Here are some of the risks associated with savings accounts:

• Low interest: Savings accounts do pay interest, but it's often much lower than can be earned with other savings vehicles like certificates of deposit or even some money market accounts. That can lead to a big opportunity cost — you may find higher returns elsewhere.
• Accessibility: Unlike checking accounts, savings accounts have a limit on the number of withdrawals and transfers you can make each month. Withdraw more than six times during a month, and you could get hit with a withdrawal penalty.
• Fees: Some banks charge for opening a savings account and maintaining it. And some banks also charge minimum balance fees. Those fees can eat up any interest earned and your principal very fast, especially with low interest earnings.

Savings account vs. money market account vs. mutual fund

Savings accounts, money market accounts and mutual funds often get lumped into the same broader "savings" category. But they have some differences.

Between the three, savings accounts and money market accounts are most alike. They are both insured by the government at banks and credit unions up to $250,000. Both also pay interest and allow for up to six withdrawals or transfers per statement cycle.

However, money market accounts typically pay a higher interest rate than savings accounts. Money market accounts also offer check-writing and debit card capabilities, a degree of liquidity not often found with savings accounts.

Another big difference between the two is what can be done with your money. Banks and credit unions can use the money you deposit into a money market account to make low-risk investments in financial products like CDs. But with a savings accounts, institutions can only use your money to make loans to other customers.

In contrast to both money market accounts and savings accounts, mutual funds are financial tools that pool money from investors and then invest that pool of money into securities like stocks, bonds and short-term debt. You buy shares in mutual funds.

Mutual funds are not insured by the government. And they often come with professional management and investment diversity, earning more than savings and money market accounts.

You'll find different kinds of mutual funds, including money market funds, bond funds, stock funds and target-date funds.

But because of their low-risk nature, money market funds are the most similar to savings and money market accounts. In fact, by law, money market funds can invest only in investments issued by U.S. corporations and the government that are considered high quality and low risk.

Here's a quick comparison of the three:

• Safety: Savings and money market accounts are insured by the government up to $250,000, while mutual funds are not. Money market mutual funds are still considered low-risk investments.
• Liquidity: Savings and money market accounts offer up to six withdrawals per month. Mutual funds allow you to redeem shares at any time for the current net asset value.
• Earnings: Money market accounts typically pay more than traditional savings accounts. But mutual funds often pay more than both money market and savings accounts.
• Fees: All of these types of savings vehicles may come with some fees.