| Product | AVG | Top 1% |
|---|---|---|
| 6 Month CD | 0.62% | 0.62% |
| Business High Yield Savings | 5.30% | 5.30% |
| Business Money Market | 0.46% | 0.46% |
A senior savings account is a deposit account kept at a financial institution that guarantees your principal and pays interest. These accounts are geared towards seniors who want to save money and earn a competitive annual percentage yield (APY), while at the same time, paying little to no fees as many seniors may be on a fixed income. We've identified several different savings accounts currently offering yields of about 0.01%, which might be an ideal place for seniors to stash their hard-earned cash. While savings account rates at large traditional banks typically stay close to zero, some online banks offer rates higher than the average rate of 0.45% as our research has identified. We've done the heavy lifting and sifted through the thousands of banks nationwide to bring you the senior savings accounts offering some of the best features and highest APYs for April 2025.
Senior savings accounts are federally insured, interest-bearing deposit accounts. Most accounts geared towards senior tend to offer little to no fees as most seniors are on fixed incomes. The rates offered on these accounts are variable and fluctuate depending on economic conditions and the Fed Funds rate. They are ideal for setting money aside that is not needed for immediate, day-to-day use. Most banks and credit unions limit the number of withdrawals to six per month or statement cycle in accordance with Federal Regulation D.
Senior savings accounts are very good tools to save money for shorter-term goals, such as an emergency fund, a car purchase, or possible medical bills. The current nationwide average yield for senior savings accounts is 0.22%. The best senior savings account is 0.01%, which has a very attractive yield and is ideal for helping your money grow at a faster rate to get you to your financial goals.
Generally speaking, yes, as long as your bank is FDIC-insured or your credit union is NCUA-insured and your account falls within the limits of up to $250,000 per depositor, per account ownership type, and per financial institution, there isn’t much to worry about as your money is safe in case of a bank failure.
Choosing the best senior savings account isn’t always a straightforward decision. There are many different types of senior savings accounts with varying perks and features. When shopping around for the best senior savings account, here are the most important factor to consider:
Fees - As with any financial product, account fees can chip away at your account. The main fees associated with senior savings accounts are generally the monthly service charges and per item fees beyond the allowed items included. If your senior savings account comes with a debit card, out-of-network fees may be assessed if you use an ATM machine that is not associated with your bank. It is important to understand what fees may be assessed and why.
Account Minimums - Some banks may require you to maintain a minimum average daily balance to avoid monthly service charges or to qualify for specific rates.
Bonuses - Some banks offer bonuses for opening and funding a business checking account. Unless you want to use a specific bank, it might be beneficial to find a bank that offers account opening bonuses.
Cash Bank Rewards - Some banks offer cash back rewards that may be either a specific dollar amount or a percentage of a transaction for example.
Annual Percentage Yield (APY): The total interest you receive on money in your checking account over the course of a year is expressed as an APY. The higher the APY on your account, the harder your money that is in your checking account, will work.
| Many banks offer low to no cost senior savings accounts. | There might be overdraft fees, account minimum fees, etc. |
| Savings account are interest-bearing accounts and earn interest., which can very depending on the type of savings account that is opened. | The interest earned is taxable. |
| Funds are FDIC or NCUA insured up to the limits allowed by each program. | Interest rates can vary and are variable. |
| Many banks and credit unions require little to no opening deposit, making opening an account fairly easy. | There may be inactivity fees, non-network ATM fees, withdrawal limit penalties, etc. |
| Most savings accounts limit the number of withdrawals to six as per Federal Regulation D. |
Money Market Accounts: A money market account is a type of interest-bearing account available at banks and credit unions. They are similar to savings accounts; however, one significant difference is that certain money market accounts also provide some checking-writing features.
Senior Checking Accounts: Checking accounts are transactional accounts that can be opened at a bank or credit union and allow you to access your money at all times without limitations. They usually include a debit card, check-writing as well as online banking. Checking accounts are different from other accounts, such as savings accounts, in that they are intended for day-to-day use, such as paying bills, making purchases and more recently, peer-to-peer transactions. They are not intended to hold money for the long term, as is the case with CDs, and withdrawals are not limited, such as with savings and money market accounts.
Certificates of Deposit (CDs): Banks and credit unions both offer a type of savings account known as a certificate of deposit, or CD. Generally speaking, you commit to leaving your money in the CD for a predetermined period without taking any withdrawals. Early withdrawals may incur penalties, depending on the type of CD.
Our editorial staff continually updates the information contained on our website. Our editorial staff has analyzed virtually all of the banks and credit unions that it follows, and it does weekly rate analysis for more than 250 prominent banks and credit unions. These institutions were chosen because they provide competitive APYs, low fees, and other factors we find important. These banks and credit unions often provide accounts that are available nationally. All of these banks are FDIC-insured, and all of these credit unions are NCUA-insured. Choosing an FDIC-insured bank or an NCUA-backed credit union assures that your money is protected as long as it stays within insurance limits and requirements.