Whether you’re a senior on a budget or just being savvy with your money, the last thing you want to do is pay more than you have to for a savings account. Instead, try these savings accounts for retirees that charge no or limited fees and don’t require a high balance.
Best Savings Accounts for Retirees
We found the six best savings accounts for seniors, including one that ties your APY to how active you are!
Traditional Savings Accounts
If you’d like to use a traditional brick-and-mortar bank, these are the best choices:
TD Bank Simple Savings
TD Bank, located in Washington, D.C. and 15 states, mainly on the East Coast, offers their TD Simple Savings account. If you’re over 62 years old, there is no monthly fee and no minimum balance requirement. (If you’re under 62, you must keep a minimum daily balance of $300 to waive the monthly $5 fee.) Earn .02 percent interest on your money.
Schwab Bank High Yield Investor Savings Account
You may think of Schwab as just an investment firm, but they have an impressive savings account. There are no fees, and Schwab pays .05 percent interest on your money.
Online Savings Accounts
If you don’t need a brick-and-mortar bank savings account, consider online savings accounts.
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Discover Online Savings Account
Discover offers one of the best online accounts available—Discover Online Savings account. There are no fees whatsoever for this account. In addition, Discover pays a .40% APY.
Ally Online Savings Account
Ally offers an online savings account that pays .50% APY, depending on the balance. There is no monthly fee. However, you are only allowed six transactions. If you have more than that in one month, there is a $10 excessive transaction fee per additional transaction.
American Express High Yield Savings Account
The American Express High Yield Savings Account does not charge a maintenance fee and has no minimum required balance. In addition, customers are allowed up to nine transactions per month. The account pays a .40 APY.
Fitness Bank Senior Savings Account
Are you an active senior who regularly walks, runs, or bikes? If so, Fitness Bank is the bank for you. They offer a Senior Savings Account to anyone who is over 65. There is a $100 minimum opening deposit, and you must also maintain at least $100 in your account. Then, the APY that you earn is based on your activity level.
- If you achieve 10,000+ steps a day, your APY is .65 percent
- If you achieve 9,999 steps to 7,500 steps, your APY is .55 percent
- Achieve 7,499 to 5,000 steps to earn .45% APY
- And zero to 4,999 steps earns you .35 APY
Like Ally, you are allowed six transactions per month and are charged a $10 fee per additional transaction.
Final Thoughts
Why pay a maintenance fee for a savings account or tie your money up in an account with a high daily required balance? Instead, choose one of these savings accounts for retirees that has no or low fees and higher APYs than traditional savings accounts.
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Melissa is a freelance writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking.
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