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March 6, 2023

CNBC’s best credit cards for building credit of 2022

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While there are thousands of credit cards available, most require some sort of credit history in order to qualify. This can make it hard for people with less than stellar credit (typically, a credit score below 580), or no credit at all, to qualify for a card.

Those building or rebuilding credit have the best chances of qualifying for secured credit cards. They’re similar to traditional cards (they extend credit, charge interest and may offer rewards) but require you to make a deposit (typically $200) in order to access a credit limit. Whatever amount of money you deposit becomes your credit limit and acts as collateral if you fail to make payments.

There are also some other, non-secured credit card options for people with no credit or poor credit who don’t want to — or are unable to — put down a deposit. While a credit card can be an easy way to build a strong credit history, you need to make sure you use it responsibly. After you open a credit card, make sure you spend within your means and pay your balance on time and in full.

To make your search easier, CNBC Select analyzed dozens of credit cards that are marketed toward consumers with no or poor credit. To determine the best cards for building credit, we considered a number of factors, including security deposit minimums, fees, rewards programs and APR. (Read more about our methodology below.)

Best credit cards for building credit of 2022

Winner

Who’s this for? The Petal 2 “Cash Back, No Fees” Visa Credit Card, issued by WebBank, is a unique card that takes a different approach to the credit card application process. Instead of judging your creditworthiness solely based on credit history, Petal may ask you to link bank accounts during the application process. Then, WebBank, analyzes your bank statements and other data, such as bill payments and earnings, to determine your eligibility.

This is especially beneficial for applicants who may not have any credit history. However, if you do have a credit history, that does factor into the credit decision.

The Petal 2 card is one of the few cards that charge zero fees*: no annual fee, no late payment fee and no foreign transaction fees. And it stands out for consumers trying to build credit because there’s no security deposit required.

It also offers a rewards program with 1% cash back on eligible purchases right away, which can increase up to 1.5% cash back after you make 12 on-time monthly payments. This is not only a nice perk but a great way to encourage responsible behavior. Cardholders also receive 2% to 10% cash back from select merchants.

Runner-up

Discover it® Secured Credit Card

On Discover’s secure site

Rewards

Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
Welcome bonus

Discover will match all the cash back you’ve earned at the end of your first year
Annual fee
Intro APR
Regular APR
Balance transfer fee

3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
Foreign transaction fee
Credit needed

Pros

Cash-back program
Generous welcome bonus
Starting at seven months from account opening, Discover will automatically review your credit card account to see if you can transition to an unsecured line of credit and return your deposit

Cons

Cash-back program limits earnings: 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, then 1%
Low credit line prevents cardholders from charging high-cost items or many expenses

Who’s this for? The Discover it® Secured Credit Card gives cardholders access to many of the perks and benefits available to people with higher credit scores, including a robust cash-back program, no annual fee and no foreign transaction fees. You must put down a minimum deposit of $200 to open a Discover it® Secured Credit Card, or as much as $2,500. Your credit limit is equal to your deposit.

Cardholders earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter (then 1%). Plus, you can earn unlimited 1% cash back on all other purchases. This card also comes with a welcome bonus for new cardholders: Discover will match any cash back you earn during the first 12 billing cycles. So, if you have $100 cash back at the end of the first year, Discover will give you an additional $100.

What makes this card really stand out is the ease with which cardholders can transition to an unsecured card. Starting seven months from account opening, Discover will automatically review your credit card account to see if you can transition to an unsecured line of credit and return your deposit. This takes the guesswork out of wondering when you can transition to an unsecured card.

Best for cash back

U.S. Bank Cash+® Visa® Secured Card

Information about the U.S. Bank Cash+® Visa® Secured Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

Rewards

5% cash back on your first $2,000 in combined eligible purchases each quarter in two categories you choose, 2% cash back on eligible purchases in your choice of one everyday category (like gas stations, grocery stores and restaurants) and 1% cash back on all other eligible purchases
Welcome bonus
Annual fee
Intro APR
Regular APR
Balance transfer fee

Either 3% of the amount of each transfer or $5 minimum, whichever is greater.
Foreign transaction fees
Credit needed

Pros

No annual fee
You can earn cash-back for everyday spending, a rare feature for a secured credit card
Opportunity to upgrade to an unsecured card if you pay your bills on time and stay within your credit limit
Flexibility to change your payment due date

Cons

Requires a $300 to $5,000 deposit to open the card
No welcome offer
High APR
3% fee charged on purchases made outside the U.S.

Who’s this for? If you want to build credit while earning cash back, consider the U.S. Bank Cash+® Visa® Secured Card. As you spend on the card, you can earn:

5% cash back on your first $2,000 in combined eligible purchases each quarter in two categories you choose. Some categories include: TV, internet and streaming, home utilities, cell phone providers, fast food restaurants and movie theatres.
2% cash back on eligible purchases in your choice of one everyday category (like gas stations, grocery stores and restaurants)
1% cash back on all other eligible purchases

The cashback you earn can be redeemed in one of three ways: a statement credit to your account, direct deposit to your U.S. Bank checking, savings or money market account, or a U.S. Bank rewards card (similar to a Visa gift card).

New cardholders must put down a deposit of between $300 and $5,000 which acts as your credit line. If you spend within your credit limit and pay your bill when it’s due, over time, U.S. Bank could upgrade you to the U.S. Bank Cash+® Visa Signature® Card, but unlike some other cards on this list, there’s no clear timeline. Once you’re upgraded, your security deposit will be returned.

Best low deposit

Capital One Platinum Secured Credit Card

Information about the Capital One Platinum Secured Credit Card has been collected independently by Select and has not been reviewed or provided by the issuer of the cards prior to publication.

Rewards
Welcome bonus
Annual fee
Intro APR

N/A for purchases and balance transfers
Regular APR
Balance transfer fee
Foreign transaction fee
Credit needed

Pros

No annual fee
$49, $99 or $200 refundable deposit
No fee charged on purchases made outside the U.S.

Cons

High variable APR
No rewards program

Who’s this for? If you’re looking for a secured card, but can’t afford the typical $200 deposit, take a look at the Capital One Platinum Secured Credit Card. It has no annual fee and varying minimum security deposits of $49, $99 or $200 — based on your creditworthiness.

If you qualify, you can still access a $200 credit limit while only depositing $49 or $99.

In addition to lower security deposits, Capital One automatically considers cardholders for a higher credit line in as little as 6 months with no additional deposit needed. This is a great incentive to practice responsible card management.

Unlike the Discover it® Secured Credit Card, there is no rewards program or welcome bonus. Capital One also doesn’t offer a clear timeframe for when secured cardholders can upgrade to an unsecured account.

Best for international applicants

Deserve Digital First Card™

Information about the Deserve Digital First Card™ has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.

Rewards
Welcome bonus
Annual fee
Intro APR
Regular APR

14.99% to 24.99% variable
Balance transfer fee
Foreign transaction fee
Credit needed

Pros

No annual fee
No prior credit history needed
No security deposit required
No fee charged on purchases made outside the U.S.

Cons

Cash-back rates are broken up into tiers that depend on how much you spend every billing cycle

Who’s this for? The Deserve Digital First Card™ is good for anyone with zero or limited credit history who doesn’t have the means to put down a security deposit.

There’s no annual fee and no foreign transaction fees. Plus if you’re approved for the card, you receive instant access and can add it to Apple Pay.

Cardholders also receive up to 1.5% cash back, based on the amount of money you spend each billing period. Here are the levels:

1% cash back: Purchases up to $500 earn 1% back.
1.25% cash back: After you spend $500 in a billing cycle, you’ll earn 1.25% back on purchases until you hit $1,000 in spending.
1.50% cash back: After you spend $1,000 in a billing cycle, you’ll earn 1.50% back on remaining purchases that billing period.

You can redeem cash back as a statement credit to offset your bill.

Best for travel rewards

U.S. Bank Altitude® Go Visa® Secured Card

Information about the U.S. Bank Altitude® Go Visa® Secured Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

Rewards

4X points per dollar spent on dining, 2X points per dollar spent at grocery stores, gas stations and streaming services and 1X points per dollar spent on all other eligible purchases; cardmembers are also eligible for a $15 credit for annual streaming service purchases
Welcome bonus
Annual fee
Intro APR
Regular APR
Balance transfer fee

Either 3% of the amount of each transfer or $5 minimum, whichever is greater.
Foreign transaction fees
Credit needed

Pros

No annual fee
You can earn travel rewards for everyday spending, a rare feature for a secured credit card
No fee charged on purchases made outside the U.S.
$15 credit for annual streaming service purchases

Cons

Requires a $300 to $5,000 deposit to open the card
No welcome offer
High APR

Who’s this for? The U.S. Bank Altitude® Go Visa® Secured Card is one of the few travel-focused secured credit cards on the market. So if you want to earn travel rewards on your purchases while building your credit, this card may be a great fit for you.

As you spend on the card, you can earn:

4X points per dollar spent on dining
2X points per dollar spent at grocery stores, gas stations and streaming services
1X points per dollar spent on all other eligible purchases

When these points are redeemed, they are worth 1 cent per point, giving you an effective 4% back in value on dining — an excellent value that even trumps some non-secured credit cards.

In addition, cardmembers are eligible for a $15 credit for annual streaming service purchases.

New cardholders must put down a deposit of between $300 and $5,000 which acts as your credit line. If you spend within your credit limit and pay your bill when it’s due, over time, U.S. Bank could upgrade you to the U.S. Bank Altitude Go Visa Signature Card, but unlike some other cards on this list, there’s no clear timeline. Once you’re upgraded, your security deposit will be returned.

The card doesn’t have foreign transaction fees, and you can choose the due date for your bill.

Best for students

Discover it® Student Cash Back

On Discover’s secure site

Rewards

Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically.
Welcome bonus

Discover will match all the cash back you’ve earned at the end of your first year
Annual fee
Intro APR

0% for 6 months on purchases
Regular APR
Balance transfer fee

3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
Foreign transaction fee
Credit needed

Pros

Cash-back program
Generous welcome bonus

Cons

Cash-back categories must be activated each quarter
Cash-back program limits earnings: Enroll every quarter to earn 5% cash back in various categories on up to $1,500 in quarterly purchases, then 1%
You must be a U.S. citizen and college student to apply for this card

Who’s this for? Financial experts often stress the importance of building credit at a young age, and opening a credit card while you’re a student is one of the easiest ways to establish credit. The Discover it® Student Cash Back is our top pick for students looking to build good credit while attending college. You must be over 18 and a U.S. citizen to apply.

This card provides a generous cash-back program: Upon activation, cardholders can earn 5% cash back on rotating categories up to a $1,500 maximum each quarter (then 1%). All other purchases earn unlimited 1% cash back automatically.

This card also offers the welcome bonus of a dollar-for-dollar match of all cash back earned the first year for new cardholders. So, if you have $50 cash back at the end of the first year, Discover will give you an additional $50.

This card has no annual fee and no foreign transaction fees, so you can study abroad or vacation outside the U.S. without worrying about paying the typical 3% fee other cards charge. There’s also a 0% introductory APR for the first six months on new purchases, which is perfect for financing textbooks or dorm room essentials. After the intro period, there’s a 17.24% – 26.24% variable APR.

Best for average credit

Capital One Platinum Credit Card

Information about the Capital One Platinum Credit Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

Rewards
Welcome bonus
Annual fee
Intro APR
Regular APR
Balance transfer fee
Foreign transaction fee
Credit needed

Pros

No annual fee
No fee charged on purchases made outside the U.S.
Travel benefits, such as auto rental collision damage waiver and roadside assistance
Automatically considered for a higher credit line in as little as 6 months

Cons

High variable APR
No rewards program

Who’s this for? If you have average credit and are looking to build up to a good or excellent credit score, it’s a good idea to consider a credit card designed for average credit applicants, such as the Capital One Platinum Credit Card. This card also provides travel benefits that can save you money and protect you against unexpected issues — most notably no foreign transaction fees.

This perk will save you the typical 3% fee many other cards charge on each purchase made outside the U.S. For example, the average American spends $2,154 a year on travel, and depending on how much of that is done abroad, you could potentially save up to $65 with the Platinum Credit Card from Capital One (and even more depending on your travel spending habits).

This card also offers travel accident insurance, auto rental collision damage waiver, roadside assistance and 24-hour travel assistance services — all at no extra cost, though third-party service fees apply for roadside assistance. These perks are a great way to make traveling less stressful and provide you with coverage for eligible issues.

This card doesn’t offer a rewards program, so you don’t have the opportunity to earn cash back, points or miles from your everyday spending. But with no annual fee, it can be a good starter card if you want to eventually upgrade to another card in the Capital One family.

Find the best credit card for you by reviewing offers in our credit card marketplace or get personalized offers via CardMatch™.

FAQs

Why is building credit important?

A good credit score is necessary for many major financial moves, including taking out a mortgage, opening a credit card, getting car insurance and sometimes even landing your dream job. If you don’t have a good or excellent credit score, you may not get approved for a certain financial product or may pay higher interest rates.

What are the benefits of building credit?

Nearly every facet of your financial life is impacted by the strength of your credit score. Building a good credit score helps improve your approval odds for financial products, helps you qualify for lower interest rates and better terms and allows you to to benefit from robust credit card benefits.

Can I get approved for a credit card with no credit history?

It is possible to sign up for a credit card without having credit history. It’s generally easier to get approved for secured credit cards or starter credit cards, which are designed especially for those who are beginning to build their credit.

How do I improve my credit score?

Do authorized users build credit?

Becoming an authorized user on someone else’s credit card is a great way to build credit. So long as the primary cardholder has good (670-799) or excellent credit (800-850), it can be relatively low-risk and allows you to build or boost your credit score. However, there are also instances where being an authorized user can harm your credit score, such as if the primary account holder misses a payment.

Our methodology

To determine which cards offer the best value for building or rebuilding credit, Select analyzed 29 of the most popular credit cards available for consumers building or rebuilding their credit.

We compared each card on a range of features, including: annual fee, minimum security deposit, credit limit, rewards program, introductory and standard APR, welcome bonuses and foreign transaction fees, as well as factors such as required credit score and customer reviews when available. We also took into account how easy it is to upgrade the card from secured to unsecured and how quickly you can get your security deposit back.

Because it’s unusual for credit cards aimed at consumers looking to build (or rebuild) their credit to have robust rewards programs, we did not analyze how many rewards points you can earn in the first year. For cardholders looking to rebuild credit, it’s more important to practice good credit card habits — spending within your means, paying your balance on time and in full — than try to optimize your points balance.

Subscribe to the Select Newsletter!

Our best selections in your inbox. Shopping recommendations that help upgrade your life, delivered weekly. Sign-up here.

Petal 2 Visa Credit Card issued by WebBank.

For rates and fees of the Discover it® Student Cash Back, click here.

For rates and fees of the Discover it® Secured Credit Card, click here.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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March 2, 2023

CNBC’s best balance transfer credit cards of 2022

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With credit card interest rates typically in the double digits, carrying a balance on your card can be costly. However, doing so is sometimes inevitable, and the right card can help you get that debt under control.

If you think you may end up carrying a balance at some point, consider a credit card that offers no interest on balance transfers for a set period of time — this can range from six months to up to 21 months. During the introductory 0% APR period, you can pay off debt without paying costly interest charges.

Below, CNBC Select rounds up some of the best balance transfer credit cards. When compiling this list, we analyzed over 100 popular balance transfer cards using an average American’s annual spending budget and credit card debt and dug into each card’s perks and drawbacks. We factored in each card’s transfer fee, the length of the 0% interest period and any interest you’d pay once the intro period ends. Read more about our methodology below.

Best balance transfer credit cards of 2022

Intro 0% APR for up to 21 months

Wells Fargo Reflect® Card

On Wells Fargo’s secure site

Rewards
Welcome bonus
Annual fee
Intro APR

0% intro APR for 18 months from account opening on purchases and qualifying balance transfers. Intro APR extension for 3 months with on-time minimum payments during the intro period. 17.49% – 29.49% Variable APR thereafter
Regular APR

17.49% – 29.49% variable APR on purchases and balance transfers
Balance transfer fee

Introductory fee of 3% for 120 days from account opening, then up to 5% ($5 minimum)
Foreign transaction fee
Credit needed

Pros

No annual fee
Long introductory APR period up to 21 months on purchases and qualifying balance transfers
3% intro balance transfer fee ($5 minimum) for first 120 days
Access to Visa Signature Concierge
Get up to $600 cell phone protection (subject to a $25 deductible)
Access to My Wells Fargo Deals to earn cash back in the form of an account credit when shopping, dining

Cons

No rewards
No welcome bonus
3% fee charged on foreign transactions

Citi® Diamond Preferred® Card

Rewards
Welcome bonus
Annual fee
Intro APR

0% for 21 months on balance transfers; 0% for 12 months on purchases
Regular APR
Balance transfer fee

5% of each balance transfer; $5 minimum. Balance transfers must be completed within 4 months of account opening.
Foreign transaction fee
Credit needed

Pros

No annual fee
Balances can be transferred within 4 months from account opening
One of the longest intro periods for balance transfers

Cons

3% foreign transaction fee

Citi Simplicity® Card

Rewards
Welcome bonus
Annual fee
Intro APR

0% for 21 months on balance transfers; 0% for 12 months on purchases
Regular APR
Balance transfer fee

Introductory fee of 3% ($5 minimum) for transfers completed within the first 4 months of account opening, then up to 5% ($5 minimum).
Foreign transaction fee
Credit needed

Pros

No annual fee
Balances can be transferred within 4 months from account opening
One of the longest intro periods for balance transfers

Cons

3% foreign transaction fee
No rewards program

BankAmericard® credit card

Rewards

This card doesn’t offer cash back, miles or points.
Welcome bonus
Annual fee
Intro APR

0% Introductory APR for 21 billing cycles for purchases, and for any balance transfers made in the first 60 days.
Regular APR

14.99% – 24.99% variable APR on purchases and balance transfers
Balance transfer fee

Either $10 or 3% of the amount of each transaction, whichever is greater.
Foreign transaction fee
Credit needed

Pros

No annual fee
One of the longest intro periods

Cons

3% foreign transaction fee
No rewards program

Transfer timeline: Balances must be transferred within 60 days from account opening
Estimated total fees and interest on debt repayment: $404

Intro 0% APR for 18 months

Citi® Double Cash Card

Rewards

2% cash back: 1% on all eligible purchases and an additional 1% after you pay your credit card bill
Welcome bonus
Annual fee
Intro APR

0% for the first 18 months on balance transfers; N/A for purchases
Regular APR
Balance transfer fee

For balance transfers completed within 4 months of account opening, an intro balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies
Foreign transaction fee
Credit needed

Pros

2% cash back on all eligible purchases
Simple cash-back program that doesn’t require activation or spending caps
One of the longest intro periods for balance transfers at 18 months

Cons

3% fee charged on purchases made outside the U.S.

Estimated rewards earned after 1 year: $443
Estimated rewards earned after 5 years: $2,213

Discover it® Balance Transfer

On Discover’s secure site

Rewards

Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, and gas stations, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically.
Welcome bonus

Discover will automatically match all the cash back you’ve earned at the end of your first year.
Annual fee
Intro APR

0% for 18 months on balance transfers; 0% for 6 months on purchases
Regular APR
Balance transfer fee

3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)*
Foreign transaction fee
Credit needed

Cons

Bonus categories must be activated each quarter
Cash-back program limits 5% cash-back earnings to $1,500 a quarter
Fee charged on balance transfers

Transfer timeline: Balances must be transferred by a specific date, refer to your cardmember agreement for the exact date

Chase Slate Edge℠

Rewards
Welcome bonus
Annual fee
Intro APR

0% for 18 months from account opening on purchases and balance transfers
Regular APR
Balance transfer fee

Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
Credit needed

Pros

No annual fee
Get an automatic, one-time review for a higher credit limit when you pay on time, and spend $500 in your first six months.
Lower your interest rate by 2% each year: Automatically be considered for an APR reduction when you pay on time, and spend at least $1,000 on your card by your next account anniversary

Cons

3% foreign transaction fee
No rewards program

U.S. Bank Visa® Platinum Card

On U.S. Bank’s secure site

Rewards
Welcome bonus
Annual fee
Intro APR

0% for the first 18 billing cycles on balance transfers and purchases
Regular APR

18.99% – 28.99% (Variable)
Balance transfer fee

Either 3% of the amount of each transfer or $5 minimum, whichever is greater
Foreign transaction fee
Credit needed

Pros

No annual fee
Cell phone protection plan

Cons

No rewards program
2% to 3% foreign transaction fee
Balances must be transferred within 60 days from account opening

Intro 0% APR for 15 months

Chase Freedom Unlimited®

Rewards

Enjoy 5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases
Welcome bonus

Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back. That’s 6.5% on travel purchased through Chase Ultimate Rewards®, 4.5% on dining and drugstores, and 3% on all other purchases.
Annual fee
Intro APR

0% for the first 15 months from account opening on purchases and balance transfers
Regular APR
Balance transfer fee

Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee

3% of each transaction in U.S. dollars
Credit needed

Pros

No annual fee
Rewards can be transferred to a Chase Ultimate Rewards card
Generous welcome bonus

Cons

3% fee charged on foreign transactions

Chase Freedom Flex℠

Information about the Chase Freedom Flex℠ has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

Rewards

5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%), 5% cash back on travel booked through the Chase Ultimate Rewards®, 3% on drugstore purchases and on dining (including takeout and eligible delivery services), 1% cash back on all other purchases
Welcome bonus

$200 cash back after you spend $500 on purchases in your first three months from account opening
Annual fee
Intro APR

0% for the first 15 months from account opening on purchases and balance transfers
Regular APR
Balance transfer fee

Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
Credit needed

Pros

No annual fee
Generous welcome bonus
Opportunity to earn up to 5% cash back in select categories upon activation
Rewards can be transferred to a Chase Ultimate Rewards card

Cons

Bonus categories must be activated each quarter
3% fee charged on foreign transactions

Estimated rewards earned after 1 year: $852
Estimated rewards earned after 5 years: $2,844

Rewards totals incorporate the cash back earned from the welcome bonus

Wells Fargo Active Cash® Card

On Wells Fargo’s secure site

Rewards

Unlimited 2% cash rewards on purchases
Welcome bonus

Earn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months
Annual fee
Intro APR

0% intro APR for 15 months from account opening on purchases and qualifying balance transfers; balance transfers made within 120 days qualify for the intro rate
Regular APR

19.49%, 24.49%, or 29.49% variable APR on purchases and balance transfers
Balance transfer fee

Introductory fee of 3% for 120 days from account opening, then up to 5% ($5 minimum)
Foreign transaction fee
Credit needed

Pros

Unlimited cash rewards
$200 cash rewards welcome bonus
No annual fee
Introductory APR period for first 15 months
Access to Visa Signature Concierge
Get up to $600 cell phone protection (subject to a $25 deductible)

Cons

3% fee charged on foreign transactions

How to use a balance transfer card

Before you take advantage of a balance transfer offer, there are some things you should keep in mind:

Transfers can’t be made between cards from the same bank. For example, if you have a Chase card, you can’t transfer debt to another Chase card.

You may incur a fee. Most of these cards charge a balance transfer fee. It’s usually 3% to 5% of the amount you transfer. For example, transferring $5,000 with a 3% fee will cost you $150. This fee will post on the balance transfer card, rather than the original card.
Most transfers need to be completed within 120 days from account opening. If you wait too long to make a transfer, you may miss out on the 0% APR period.
There are limits on how much debt you can transfer. Card issuers typically limit the amount you can transfer to a percentage of your total credit limit or a specific dollar amount. And issuers also factor in the total cost of the balance transfer, which includes any balance transfer fees.
Many balance transfer cards require good or excellent credit. If you have less than stellar credit, it can be difficult to qualify for a balance transfer card.

FAQs

Do balance transfers hurt your credit?

Applying for a new credit card will typically ‘ding’ your credit score (although the drop is usually small and temporary), but the balance transfer itself doesn’t hurt your credit. However, if the balance transfer card has a low credit limit and you transfer over a high amount of debt, your credit utilization ratio will go up, which could hurt your credit score. You typically want to keep your credit utilization ratio under 30%.

Is it worth getting a balance transfer?

Balance transfers are good options for consolidating credit card debt. However, be sure to calculate how much it will cost to transfer the balance versus how much in interest fees you’ll accrue by simply paying down the balance on your current credit card.

How do you qualify for a balance transfer?

Balance transfer credit cards are typically for consumers with good to excellent credit scores. If you’re approved for a balance transfer offer, be sure to take advantage of it quickly as they are limited-time offers.

Find the best credit card for you by reviewing offers in our credit card marketplace or get personalized offers via CardMatch™.

Bottom line

Our methodology

To determine which credit cards offer the best balance transfer deals, CNBC Select analyzed 101 of the most popular credit cards that offer no interest on balance transfers issued by the biggest banks, financial companies and credit unions that allow anyone to join.

We compared each card on a range of features, including: annual fee, balance transfer fee, rewards program, introductory and standard APR, welcome bonuses and foreign transaction fees, as well as factors such as required credit and customer reviews when available.

For the cards that offered a rewards program, we also estimated how much cash back you might earn over a five-year period. Select teamed up with location intelligence firm Esri. The company’s data development team provided the most up-to-date and comprehensive consumer spending data based on the 2019 Consumer Expenditure Surveys from the Bureau of Labor Statistics. You can read more about their methodology here.

Esri’s data team created a sample annual budget of approximately $22,126 in retail spending. The budget includes six main categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862) and general purchases ($3,953). General purchases include items such as housekeeping supplies, clothing, personal care products, prescription drugs and vitamins, and other vehicle expenses.

Select used this budget to estimate how much the average consumer would save over the course of a year, two years and five years, assuming they would attempt to maximize their rewards potential by earning all welcome bonuses offered and using the card for all applicable purchases. All rewards total estimations are net of the annual fee.

It’s important to note the value of a point or mile varies from card to card and based on how you redeem them. When we calculated the estimated returns, we assumed that cardholders are redeeming points/miles for a typical maximum value of 1 cent per point or mile. (Extreme optimizers might be able to achieve more value.)

When choosing the best balance transfer card, we focused on the card that provides consumers with the cheapest way to pay off their debt rather than the number of rewards they could potentially earn. When you’re in credit card debt, your primary focus should be repayment. Earning rewards should be seen as a bonus, and you don’t want to spend beyond your means in order to earn points.

The five-year rewards total and the interest rate and fees estimates are derived from a budget similar to the average American’s spending and debt. You may earn a higher or lower return depending on your spending habits.

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For rates and fees of the Discover it® Balance Transfer, click here.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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March 2, 2023

CNBC’s best 0% APR credit cards of 2022

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Credit cards can charge steep interest rates if you don’t pay off your balance in full each billing cycle. The amount of interest you’re charged is listed on your cardholder agreement as your annual percentage rate (APR), and it’s often a variable rate that changes with the prime rate.

Luckily, there are options for those that can’t afford to pay their bill in full. Some of the best credit cards offer no interest on new purchases, balance transfers or both — for up to 21 months.

If you have lingering debt on an existing card or plan on making a large purchase, it’s financially smart to open an intro 0% APR credit card, if you use it responsibly. Below, CNBC Select rounds up some of the best credit cards that offer no interest, so you can maximize your savings. (Read more about our methodology below.)

Best 0% APR credit cards of 2022

Intro 0% APR for up to 21 months

Citi Simplicity® Card

Rewards
Welcome bonus
Annual fee
Intro APR

0% for 21 months on balance transfers; 0% for 12 months on purchases
Regular APR
Balance transfer fee

Introductory fee of 3% ($5 minimum) for transfers completed within the first 4 months of account opening, then up to 5% ($5 minimum).
Foreign transaction fee
Credit needed

Pros

No annual fee
Balances can be transferred within 4 months from account opening
One of the longest intro periods for balance transfers

Cons

3% foreign transaction fee
No rewards program

Who’s this card for? The Citi Simplicity® Card is a great option for someone looking to consolidate existing credit card debt from other cards. New cardholders have four months to complete balance transfers (longer than the typical 60 to 90 days).

The only drawback is that it does not offer cash back or any other type of rewards.

Wells Fargo Reflect® Card

On Wells Fargo’s secure site

Rewards
Welcome bonus
Annual fee
Intro APR

0% intro APR for 18 months from account opening on purchases and qualifying balance transfers. Intro APR extension for 3 months with on-time minimum payments during the intro period. 17.49% – 29.49% Variable APR thereafter
Regular APR

17.49% – 29.49% variable APR on purchases and balance transfers
Balance transfer fee

Introductory fee of 3% for 120 days from account opening, then up to 5% ($5 minimum)
Foreign transaction fee
Credit needed

Pros

No annual fee
Long introductory APR period up to 21 months on purchases and qualifying balance transfers
3% intro balance transfer fee ($5 minimum) for first 120 days
Access to Visa Signature Concierge
Get up to $600 cell phone protection (subject to a $25 deductible)
Access to My Wells Fargo Deals to earn cash back in the form of an account credit when shopping, dining

Cons

No rewards
No welcome bonus
3% fee charged on foreign transactions

Who’s this card for? The Wells Fargo Reflect® Card is ideal for someone looking to either pay off large purchases over time or consolidate existing debt.

This card doesn’t offer any sort of spending rewards, but it does offer cell phone protection.

Citi® Diamond Preferred® Card

Rewards
Welcome bonus
Annual fee
Intro APR

0% for 21 months on balance transfers; 0% for 12 months on purchases
Regular APR
Balance transfer fee

5% of each balance transfer; $5 minimum. Balance transfers must be completed within 4 months of account opening.
Foreign transaction fee
Credit needed

Pros

No annual fee
Balances can be transferred within 4 months from account opening
One of the longest intro periods for balance transfers

Cons

3% foreign transaction fee

Intro 0% APR for 18 months on balance transfers

Citi® Double Cash Card

Rewards

2% cash back: 1% on all eligible purchases and an additional 1% after you pay your credit card bill
Welcome bonus
Annual fee
Intro APR

0% for the first 18 months on balance transfers; N/A for purchases
Regular APR
Balance transfer fee

For balance transfers completed within 4 months of account opening, an intro balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies
Foreign transaction fee
Credit needed

Pros

2% cash back on all eligible purchases
Simple cash-back program that doesn’t require activation or spending caps
One of the longest intro periods for balance transfers at 18 months

Cons

3% fee charged on purchases made outside the U.S.

Estimated rewards earned after 1 year: $443
Estimated rewards earned after 5 years: $2,213

Who’s this card for? The Citi® Double Cash Card is a generous cash-back credit card to use on daily expenses that also comes with a great balance transfer offer.

As you spend on the card, you will earn 2% cash back — 1% when you make a purchase and an additional 1% when you pay your credit card bill.

U.S. Bank Visa® Platinum Card

On U.S. Bank’s secure site

Rewards
Welcome bonus
Annual fee
Intro APR

0% for the first 18 billing cycles on balance transfers and purchases
Regular APR

18.99% – 28.99% (Variable)
Balance transfer fee

Either 3% of the amount of each transfer or $5 minimum, whichever is greater
Foreign transaction fee
Credit needed

Pros

No annual fee
Cell phone protection plan

Cons

No rewards program
2% to 3% foreign transaction fee
Balances must be transferred within 60 days from account opening

Who’s this card for? The U.S. Bank Visa® Platinum Card is useful for those looking to transfer existing credit card debt or finance new purchases at a great rate.

The card doesn’t come with any spending rewards, but it has a solid cell phone coverage benefit and no annual fee.

Intro 0% APR for 15 months

Amex EveryDay® Credit Card

Information about the Amex EveryDay® Credit Card has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.

Rewards

2X Membership Rewards® points at U.S. supermarkets on up to $6,000 per year in purchases (then 1X), 1X Membership Rewards® points per dollar spent on all other purchases
Welcome bonus

Earn 10,000 Membership Rewards® points after you make $2,000 in purchases in your first 6 months of card membership
Annual fee
Intro APR

0% for the first 15 months on purchases from the date of account opening, N/A for balance transfers
Regular APR

15.99% – 26.99% variable
Balance transfer fee
Foreign transaction fee
Credit needed

Pros

No annual fee
Competitive intro period on purchases
20% extra point bonus when you make 20 or more purchases in a billing period

Cons

2.7% foreign transaction fee

Who’s this card for? The Amex EveryDay® Credit Card is for someone interested in earning transferrable travel rewards, as well as having an interest-free financing option.

As you spend on the card, you’ll earn 2X Membership Rewards® points at U.S. supermarkets on up to $6,000 per year in purchases (then 1X) and 1X Membership Rewards points per dollar spent on all other purchases. Terms apply.

Capital One SavorOne Cash Rewards Credit Card

On Capital One’s secure site

Rewards

Earn 10% cash back on purchases made through Uber & Uber Eats, plus complimentary Uber One membership statement credits through 11/14/2024, 8% cash back on Capital One Entertainment purchases, earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel; Terms apply, 3% cash back on dining and entertainment, 3% on eligible streaming services, 3% at grocery stores (excluding superstores like Walmart® and Target®) and 1% on all other purchases
Welcome bonus

Earn a one-time $200 cash bonus after you spend $500 on purchases within the first 3 months from account opening
Annual fee
Intro APR

0% intro APR on purchases and balance transfers for 15 months
Regular APR

19.24% – 29.24% variable
Balance transfer fee

3% fee on the amounts transferred within the first 15 months
Foreign transaction fee
Credit needed

Pros

3% cash back on dining and entertainment purchases
Ability to redeem rewards at any amount, unlike some other cards with $25 minimums
Competitive special financing offer on both new purchases and balance transfers
No fee charged on purchases made outside the U.S.

Cons

3% balance transfer fee on the amounts transferred within the first 15 months

Who’s this card for? The Capital One SavorOne Cash Rewards Credit Card is a great pick for tiered cashback rewards and interest-free purchases.

The rewards rates are as follows:

10% cash back on Uber and Uber Eats
5% on hotels and rental cars booked through Capital One Travel
3% on dining and entertainment
3% on eligible streaming services
3% at grocery stores (excluding superstores like Walmart® and Target®)
1% on all other purchases

Perks include access to presale and VIP tickets for concerts, sports games and exclusive events through Capital One Entertainment.

Chase Freedom Flex℠

Information about the Chase Freedom Flex℠ has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.

Rewards

5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate (then 1%), 5% cash back on travel booked through the Chase Ultimate Rewards®, 3% on drugstore purchases and on dining (including takeout and eligible delivery services), 1% cash back on all other purchases
Welcome bonus

$200 cash back after you spend $500 on purchases in your first three months from account opening
Annual fee
Intro APR

0% for the first 15 months from account opening on purchases and balance transfers
Regular APR
Balance transfer fee

Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee
Credit needed

Pros

No annual fee
Generous welcome bonus
Opportunity to earn up to 5% cash back in select categories upon activation
Rewards can be transferred to a Chase Ultimate Rewards card

Cons

Bonus categories must be activated each quarter
3% fee charged on foreign transactions

Estimated rewards earned after 1 year: $852
Estimated rewards earned after 5 years: $2,844

Rewards totals incorporate the cash back earned from the welcome bonus

Who’s this card for? The Chase Freedom Flex℠ is a terrific option for someone looking for a card with rotating spending categories, as well as interest-free financing.

You can earn solid cash back with the card, including up to 5% cash back on travel purchases through the Chase travel portal and 3% on drugstore purchases and on dining. However, the real value of this card is spending within Chase’s quarterly 5% cash-back categories, so if you regularly spend in different categories, this card may be a good fit.

Chase Freedom Unlimited®

Rewards

Enjoy 5% cash back on travel purchased through Chase Ultimate Rewards®, our premier rewards program that lets you redeem rewards for cash back, travel, gift cards and more; 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service, and 1.5% on all other purchases
Welcome bonus

Earn an extra 1.5% on everything you buy (on up to $20,000 spent in the first year) – worth up to $300 cash back. That’s 6.5% on travel purchased through Chase Ultimate Rewards®, 4.5% on dining and drugstores, and 3% on all other purchases.
Annual fee
Intro APR

0% for the first 15 months from account opening on purchases and balance transfers
Regular APR
Balance transfer fee

Intro fee of either $5 or 3% of the amount of each transfer, whichever is greater, on transfers made within 60 days of account opening. After that, either $5 or 5% of the amount of each transfer, whichever is greater.
Foreign transaction fee

3% of each transaction in U.S. dollars
Credit needed

Pros

No annual fee
Rewards can be transferred to a Chase Ultimate Rewards card
Generous welcome bonus

Cons

3% fee charged on foreign transactions

Who’s this card for? The Chase Freedom Unlimited® is another great cashback card with interest-free features and is similar to the Freedom Flex card above.

The main difference is that this card doesn’t offer the rotating cash-back categories. Instead, you’ll earn 5% cash back on travel purchased through Chase Ultimate Rewards®, 3% on drugstore purchases and on dining and a flat 1.5% on all other purchases.

American Express Cash Magnet® Card

Information about the American Express Cash Magnet® Card has been collected independently by Select and has not been reviewed or provided by the issuer of the cards prior to publication.

Rewards

Unlimited 1.5% cash back on all purchases
Welcome bonus

Earn a $200 statement credit after spending $2,000 in purchases within your first 6 months of card membership.
Annual fee
Intro APR

0% for the first 15 months on purchases from the date of account opening, N/A for balance transfers
Regular APR

18.49% to 29.49% variable
Balance transfer fee
Foreign transaction fee
Credit needed

Pros

No annual fee
0% intro APR offer

Cons

2.7% fee on purchases outside the U.S.
Cash back comes in the form of a statement credit (with a minimum redemption of $25)

Who’s this card for? The American Express Cash Magnet® Card is a solid cashback card for someone looking for simplicity, as well as a 0% intro APR period.

As you spend on the card, you’ll earn 1.5% cash back on all purchases. Terms apply.

Blue Cash Everyday® Card from American Express

On the American Express secure site

Rewards

3% cash back at U.S. supermarkets (up to $6,000 per year in purchases, then 1%), 3% cash back at U.S. gas stations, (up to $6,000 per year, then 1%), 3% cash back on U.S. online retail purchases, on up to $6,000 per year, then 1%. Cash back is received in the form of Reward Dollars that can be easily redeemed for statement credits.
Welcome bonus

Earn a $200 statement credit after you spend $2,000 in purchases on your new Card within the first 6 months.
Annual fee
Intro APR

0% intro APR for 15 months on purchases and balance transfers, from the date of account opening
Regular APR
Balance transfer fee

Either $5 or 3% of the amount of each transfer, whichever is greater.
Foreign transaction fee
Credit needed

Pros

3% cash back at U.S. supermarkets (up to $6,000 a year, then 1%)
3% cash back at U.S. gas stations, (up to $6,000 per year, then 1%)
Amex Offers, which provide statement credits or opportunity to earn more rewards at select merchants

Cons

2.7% fee on purchases made abroad
Not great for people who don’t regularly go grocery shopping

Estimated rewards earned after 1 year: $547
Estimated rewards earned after 5 years: $1,935

Rewards totals incorporate the points earned from the welcome bonus

Who’s this card for? Depending on your spending habits, it might make more sense to get the Blue Cash Everyday® Card from American Express. The Blue Cash Everyday Card is similar to the Cash Magnet Card above, but the main difference is the earning rates.

As you spend on the card, you’ll earn as follows:

3% cash back at U.S. supermarkets (up to $6,000 per year in purchases, then 1%)
3% at U.S. gas stations (up to $6,000 per year in purchases, then 1%)
3% on U.S. online retail purchases (up to $6,000 per year, then 1%)
1% on all other purchases
Terms apply

Wells Fargo Active Cash® Card

On Wells Fargo’s secure site

Rewards

Unlimited 2% cash rewards on purchases
Welcome bonus

Earn a $200 cash rewards bonus after spending $1,000 in purchases in the first 3 months
Annual fee
Intro APR

0% intro APR for 15 months from account opening on purchases and qualifying balance transfers; balance transfers made within 120 days qualify for the intro rate
Regular APR

19.49%, 24.49%, or 29.49% variable APR on purchases and balance transfers
Balance transfer fee

Introductory fee of 3% for 120 days from account opening, then up to 5% ($5 minimum)
Foreign transaction fee
Credit needed

Pros

Unlimited cash rewards
$200 cash rewards welcome bonus
No annual fee
Introductory APR period for first 15 months
Access to Visa Signature Concierge
Get up to $600 cell phone protection (subject to a $25 deductible)

Cons

3% fee charged on foreign transactions

Who’s this card for? The Wells Fargo Active Cash® Card is a great choice for earning cash rewards on your everyday purchases, as well as interest-free financing.

As you spend on the card, you will earn 2% cash rewards on all eligible purchases.

Bank of America® Unlimited Cash Rewards Credit Card

Bank of America® Unlimited Cash Rewards credit card

Rewards

Unlimited 1.5% cash back on all purchases, but you earn 25%-75% more cash back on every purchase if you’re a Preferred Rewards member
Welcome bonus

$200 online cash rewards bonus after making at least $1,000 in purchases in the first 90 days from account opening.
Annual fee
Intro APR

Introductory 0% APR for your first 18 billing cycles on purchases and balance transfers made within 60 days of account opening.
Regular APR
Balance transfer fee

Either $10 or 3%, whichever is greater
Foreign transaction fee
Credit needed

Pros

No annual fee
Unlimited cash-back
$200 online cash rewards bonus

Cons

3% foreign transaction fee
Can’t receive a greater cash-back rate unless you’re a Preferred Rewards member

Estimated rewards earned after 1 year: $532
Estimated rewards earned after 5 years: $1,860

Rewards totals incorporate the cash-back earned from the welcome bonus and 1.5% back

Who’s this card for? The Bank of America® Unlimited Cash Rewards Credit Card is another solid option for someone looking for simple cash-back options as well as favorable financing options.

As you spend on the card, you will earn 1.5% cash back on all purchases.

How to get the most benefit from 0% APR cards

A 0% APR card is most beneficial when you understand the terms of the offer and set up a plan to pay off your debt. Here’s what to keep in mind if you’re considering a 0% intro APR credit card for your wallet.

Read the fine print

Make sure you familiarize yourself with any fine print associated with the 0% APR offer, such as the expiration date, timeline for completing a balance transfer, any balance transfer fees and the interest rate once the intro period ends.

Create a repayment plan

You’ll need to come up with a plan to pay off credit card debt. The amount you need to pay each month in order to have a zero balance at the end of the intro period depends on the length of the intro period.

For example, if you have a $4,500 balance on the Chase Freedom Flex, which offers an intro APR period of no interest for the first 15 months on balance transfers and purchases (after, 19.24% – 27.99% variable APR), you’ll need to pay $300 each month to pay off your old balance before the intro period ends.

But if you have the Citi® Double Cash Card, with 0% intro APR for 18 months on balance transfers (then 18.49% – 28.49% variable APR), the monthly payment decreases to $250. Balance transfers must be completed within 4 months of account opening.

Pay off your balance in full

It’s very important to pay off any transferred debt or lingering new purchase balances before the intro 0% APR period ends. If you don’t, expect to be hit with the regular purchase APR. And if you have a store card, you could be hit with a bill for all the interest you accrued since the date you made your purchase or transfer (known as deferred interest). None of the cards on this list charge cardholders deferred interest.

Learn more: 5 things to do once your balance transfer is complete.

How to compare 0% APR and low-interest cards

If you’re not sure whether a 0% APR card or a low-interest credit card is the right choice, ask yourself the following questions.

Are you carrying debt from a high interest credit card? Then you should consider a balance transfer credit card with up to 20 months of no interest.
Do you plan on making a large purchase? A 0% APR card can provide you with a lengthy intro period that allows you to pay off debt for over a year with no interest.
Do you carry a balance month to month? A low interest credit card offers a relatively consistent APR every month, compared to 0% APR cards that typically charge high-interest rates after the intro period ends.

After you determined which credit card you want to apply for, compare cards by these key factors:

Length of intro APR period: Cards can have intro periods anywhere from three months to 20 months. Many popular rewards cards offer no interest for 15 months, and non-rewards cards can have 18- and 21-month intro 0% APR periods. For new purchases or lingering debt, the longer the better, but if you’re completing a balance transfer, consider the cost of any balance transfer fees before applying.
Regular APR: Credit cards offering intro 0% APRs tend to have higher regular APRs than low-interest cards. Consider the regular APR before settling on a card if you think you may carry a balance once the intro 0% APR period ends.
Balance transfer fee: Many balance transfer cards charge a fee per transfer. This fee can be outweighed by the amount you save in interest, but make sure to do the math. If you want to avoid fees, check out the best no-fee balance transfer credit cards.
Annual fee: Most 0% APR cards and low interest cards have no annual fee, but some may. Make sure to review the annual fees associated with the cards.
Rewards and added perks: The best 0% APR cards also offer cash back, points and miles, in addition to added perks, such as purchase protection and exclusive entertainment access. While these are nice benefits, paying off debt should be your primary goal.

FAQs

How do 0% APR credit cards work?

A 0% APR credit card offers no interest for a set amount of time, usually 12 to 20 months. During the intro 0% APR period, you won’t be charged interest on new purchases or balance transfers. These cards can help you consolidate credit card debt with a balance transfer, pay for new purchases over time without incurring interest charges or both.

Balance transfer credit cards may set a limit on the amount of debt you can transfer, which is often less than your overall credit limit. Plus you may be charged a balance transfer fee, typically 3% per transfer.

Learn more: How 0% APR cards work and how to complete a balance transfer

What credit score is required for 0% APR credit cards?

Most 0% APR credit cards are reserved for consumers with good (670-739) or excellent (740 and greater) credit. If your credit score is fair (580 to 669) or poor (below 580) you may have trouble qualifying for a 0% APR card.

How does your credit score affect your interest rate?

In general, the lower your credit score, the higher your interest rate will be. It’s important to have a good credit score for a variety of reasons: It affects your ability to get certain types of loans and/or credit cards, the size of those loans and the interest rate on your card and/or loan.

A 0% APR credit card can help you avoid interest charges for a certain period. Using the extra cash you save not paying interest can help you pay down your debt faster, lower your credit utilization and increase your credit score.

When should I avoid a 0% APR credit card?

A no-interest credit card is a great tool for financing new purchases, but you need to be careful how you use one. If you have a history of overspending, you may be tempted to spend more on a 0% APR card since you have upwards of a year to pay off your entire balance without interest, compared to a regular card that requires you to pay your balance in full each billing cycle to avoid interest charges.

Learn more: How do 0% APR credit cards work? 8 things to know before applying

What’s the best way to use a 0% APR credit card?

Credit cards that offer no interest on purchases and/or balance transfers are a great asset for consumers looking to save on interest charges when they carry a balance month-to-month. The best way to use a 0% APR card depends on your individual situation, but typically falls into one of three ways:

If you plan on making large purchases, such as a new iPhone or workout equipment, and need more time to pay them off, a 0% APR card can help you pay over time with no interest charges.
If you have debt on a high-interest card, completing a balance transfer to a card with no interest for up to 20 months can help you pay it off faster and cheaper.
If you fall into both categories, a card with no interest on new purchases and balance transfers can help you pay off large expenses and old debt at the same time.

Remember that you’ll need to make minimum payments on your balance and pay it off in full before the intro period ends to avoid interest.

How do I avoid interest on a credit card?

The simplest way to avoid interest charges on a credit card is to pay your balance in full by the due date. However, there’s an exception with 0% APR cards. During the length of the intro period, you are only required to make the minimum payments on your balance, and you won’t be charged interest on new purchases and/or balance transfers. Once the intro period ends, any lingering balances or new purchases and transfers will incur the regular APR.

Do 0% APR credit cards hurt your credit?

When you apply for a credit card (including a 0% APR card), you’ll have a hard credit pull on your credit report, which typically comes with a dip of a few points in your credit score. However, this dip is temporary and you’re credit score should rise in a few months.

However, if you use a large amount of your credit line on your card for either purchases or a balance transfer, your credit utilization ratio could rise and cause a more significant drop in your credit score. Experts generally recommend keeping your credit utilization ratio below 30% of your total credit line. For example, if you had a $10,000 credit limit you’d want to keep your monthly spending under $3,000 to keep your credit utilization low.

Are there any 0% APR credit cards for 21 months?

There are a few credit cards that offer 0% APR on new purchases and balance transfers for up to 21 months.

The Citi Simplicity® Card offers 0% intro APR for 21 months on balance transfers from the date of first transfer and 0% intro APR for 12 months on purchases from the date of account opening (after, 18.49% – 29.24% variable APR; an intro balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies. Balance transfers must be completed within four months of account opening).
The Wells Fargo Reflect® Card offers 0% intro APR for 18 months from account opening on purchases and qualifying balance transfers. You can receive an intro APR extension from three months with on-time minimum payments during the intro. After the introductory period, the interest rate will increase to 17.49% to 29.49% variable APR thereafter. There’s a introductory fee of 3% for 120 days from account opening, then up to 5% ($5 minimum). Balance transfers made within 120 days qualify for the intro rate and fee.
The Citi® Diamond Preferred® Card offers 0% intro APR for 21 months on balance transfers and 0% intro APR for 12 months on purchases (variable APR is 17.49% – 28.24% after; balance transfers must be completed within four months of account opening). There’s a balance transfer fee that’s 5% of each balance transfer; $5 minimum.

Bottom line

0% intro APR cards are powerful tools if you need flexible financing. However, needlessly holding onto debt is never a good idea, so be sure to have a plan in place to pay off any debt you have.

And if you’re considering a 0% intro APR card, be sure to also consider one that earns cash-back or travel rewards so you can get something back on your purchases.

Our methodology

To determine which credit cards offer the best value, Select analyzed 234 of the most popular credit cards available in the U.S. We compared each card on a range of features, including rewards, welcome bonus, introductory and standard APR, balance transfer fee and foreign transaction fees, as well as factors such as required credit and customer reviews when available. We also considered additional perks, the application process and how easy it is for the consumer to redeem points.

Select teamed up with location intelligence firm Esri. The company’s data development team provided the most up-to-date and comprehensive consumer spending data based on the 2019 Consumer Expenditure Surveys from the Bureau of Labor Statistics. You can read more about their methodology here.

Esri’s data team created a sample annual budget of approximately $22,126 in retail spending. The budget includes six main categories: groceries ($5,174), gas ($2,218), dining out ($3,675), travel ($2,244), utilities ($4,862) and general purchases ($3,953). General purchases include items such as housekeeping supplies, clothing, personal care products, prescription drugs and vitamins, and other vehicle expenses.

Select used this budget to estimate how much the average consumer would save over the course of a year, two years and five years, assuming they would attempt to maximize their rewards potential by earning all welcome bonuses offered and using the card for all applicable purchases. All rewards total estimations are net of the annual fee.

While the five-year estimates we’ve included are derived from a budget similar to the average American’s spending, you may earn a higher or lower return depending on your shopping habits.

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Information about the Bank of America® Unlimited Cash Rewards Card, Amex EveryDay® Credit Card, American Express Cash Magnet® Card has been collected independently by Select and has not been reviewed or provided by the issuers of the cards prior to publication.

For rates and fees of the Amex EveryDay® Credit Card, click here.

For rates and fees of the American Express Cash Magnet® Card, click here.

For rates and fees of the Blue Cash Everyday® Card from American Express, click here.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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March 2, 2023

CNBC’s best high-yield savings accounts of 2022

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Editor’s Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC Select will update as changes are made public.

High-yield savings accounts reward you with higher interest rates than traditional savings accounts and allow your money to grow faster thanks to compound interest — which lets you earn interest on interest. The higher your annual percentage yield (APY), the faster your money grows and you get a better return than you would with a traditional savings account.

While rates can fluctuate over time, high-yield savings accounts generally offer APYs over 10 times greater than the national average on savings accounts. So, if you’re building an emergency fund or saving up for a large expense, putting your money in a high-yield savings account can help you reach your goals quicker.

To determine which high-yield savings accounts are the best overall, CNBC Select analyzed and compared dozens of savings accounts offered by online and brick-and-mortar banks, including large credit unions. We considered factors like the account’s APY, its ease of use, account accessibility, monthly fees and minimum balance requirements. The savings accounts selected offer an above-average APY to all customers (no matter their balance), are FDIC-insured, have zero monthly maintenance fees and low (or no) minimum balance requirements. (See our methodology for more information on how we choose the best high-yield savings accounts.)

Best high-yield savings accounts of 2022

Best overall

LendingClub High-Yield Savings

LendingClub Bank, N.A., Member FDIC

Annual Percentage Yield (APY)
Minimum balance

No minimum balance requirement after $100.00 to open the account
Monthly fee
Maximum transactions
Excessive transactions fee
Overdraft fees
Offer checking account?
Offer ATM card?

Pros

Strong APY
No minimum balance required
No monthly fees
Free ATM card and no ATM fees

Cons

$100 minimum opening deposit required, though there’s no minimum balance after that
No physical branch locations

Who’s this for? The LendingClub High-Yield Savings account stands out for offering one of the highest returns on your money, charging no monthly maintenance fee and not having a minimum balance requirement. You just need an initial $100 deposit to open the account.

Unlike many savings accounts, LendingClub provides customers with a free ATM card and never charges any ATM fees. This makes it easy to access your savings account and withdraw money whenever you want. You can also use your funds to pay bills, send money to friends and family and make internal and external transfers.

To add money to your savings account at LendingClub, you can deposit cash at select ATMs, deposit checks via the mobile app, do a direct deposit, make an electronic transfer from an external bank or make a wire transfer.

Best for no fees

Marcus by Goldman Sachs High Yield Online Savings

Goldman Sachs Bank USA is a Member FDIC.

Annual Percentage Yield (APY)
Minimum balance

None to open; $1 to earn interest
Monthly fee
Maximum transactions

At this time, there is no limit to the number of withdrawals or transfers you can make from your online savings account.
Excessive transactions fee
Overdraft fees
Offer checking account?
Offer ATM card?

Pros

No minimum balance (just $1 to earn interest)
No monthly fees
No limit on withdrawals or transfers per statement cycle
Easy-to-use mobile banking app
Offers no-fee personal loans

Cons

No option to add a checking account
No ATM access

Who’s this for? Marcus by Goldman Sachs High Yield Online Savings offers no fees whatsoever, no minimum deposits and easy mobile access. It’s the most straightforward savings account to use when all you want to do is grow your money with zero conditions attached.

The Marcus account also stands out thanks to its mobile banking app, which is simple to use and allows you to set up recurring deposits, track your savings goals and see how much interest you’ve earned this year. The bank’s U.S.-based contact center is open 24/7 for live customer support over the phone or through online chat.

Account holders can withdraw money from their Marcus savings account online and by phone through ACH or by free wire transfer to a linked account at another bank. You can also request a withdrawal by check mailed to you.

To add money to your account, you can transfer funds, make direct deposit payments, deposit a check or make a wire transfer. Marcus doesn’t charge a fee if you link other bank accounts for incoming and outgoing transfers, but keep in mind that your other bank might.

While there are no ATM cards or checking account options available through Marcus, the bank does offer a variety of no-fee personal loans as well.

Best for checking/savings combo

Ally Bank Online Savings Account

Ally Bank is a Member FDIC.

Annual Percentage Yield (APY)
Minimum balance
Monthly fee

No monthly maintenance fee
Maximum transactions

Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D
Excessive transactions fee
Overdraft fees
Offer checking account?
Offer ATM card?

Yes, if have an Ally checking account

Pros

Strong annual percentage yield on all balance tiers
No minimum balance
No monthly maintenance fee
Up to 6 free withdrawals or transfers per statement cycle*
Option to add a checking account
ATM access if you have a checking account

Cons

$10 fee per transaction if you make more than 6 in a statement cycle
$25 overdraft fee

Who’s this for? Ally is a good choice for anyone looking to do all their banking in one place. While the Ally Online Savings Account is a good high-yield account on its own, account holders can enjoy even more benefits if they also have an Ally checking account.

In addition to a solid APY, no minimum account balance and no monthly maintenance fees, an Ally checking and savings account also gives you access to over 43,000 free Allpoint^®ATMs, making it easy to withdraw cash when you need to. If you only have an online savings account, you won’t have access to a debit card.

If you use an out-of-network ATM, Ally doesn’t charge a fee and if the ATM provider does, Ally will reimburse those fees up to $10 per month.

Not all online banks also offer a checking account option. Saving your money with a bank that doesn’t offer a checking account means you would have to transfer your money between banks, which could take a couple of days. By law, account holders with Ally can withdraw or transfer money online up to six times per month with no penalty. After, Ally charges $10 per transfer. You can also call the bank to request a mailed check, which doesn’t count as one of your six transactions.

You can’t deposit cash in your Ally savings account, which is standard for many online banks, but you can deposit checks remotely with eCheck Deposit on the mobile app. Account holders can organize their saving goals by creating up to 10 different “buckets” within the same savings account. For example, you can create a designated fund for a “Future Vacation” and another for “Emergency Savings.”

Ally is also a consumer favorite because of its easy-to-use mobile app and 24/7 live customer service that is available over the phone, through online chat or on the Ally mobile app.

Best for easy access to your cash

Synchrony Bank High Yield Savings

Synchrony Bank is a Member FDIC.

Annual Percentage Yield (APY)
Minimum balance
Monthly fee
Maximum transactions

Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D
Excessive transactions fee

None, but may result in account closure
Overdraft fees
Offer checking account?
Offer ATM card?

Pros

Strong APY
No minimum balance
No monthly fees
Up to 6 free withdrawals or transfers per statement cycle*
Easy ATM access
1 physical branch (in Bridgewater, New Jersey)

Cons

Account could close if you make more than 6 transactions in a statement cycle
No option to add a checking account

Who’s this for? Withdrawing money is quick and easy when you have a Synchrony Bank High Yield Savings account. There is no minimum balance requirement, no monthly fees and a strong APY. But what makes this account stand out is its convenient withdrawal options.

Synchrony Bank offers an optional ATM card to its savings account holders. You can access your money by ATM, wire transfer (up to three free per statement cycle) or through an electronic transfer to or from accounts you have at other banks.

Though you are limited to six free withdrawals or transfers per statement cycle, Synchrony Bank allows you to conduct unlimited transactions at an ATM. The bank won’t charge an ATM fee, but the ATM provider may. For these charges, Synchrony Bank refunds ATM fees in the U.S. up to $5 per statement cycle.

Still, you should be wary of how much you withdraw from an ATM because the fees, even with a $5 refund, can add up. According to Bankrate, ATM operators charge customers an average fee of $3.14. Just going to the ATM twice in one month would already put you over the refundable amount.

To deposit money into your savings account at Synchrony Bank, you can make an electronic transfer from an external bank account that you’ve linked, do a direct deposit, make a wire transfer, mail a check or use the bank’s mobile app to deposit a check.

Synchrony Bank’s customer service line is available seven days a week by phone or online chat, as well as 24/7 through its app so you can manage your account on the go. Additional customer perks include complimentary identity theft assistance, travel discounts and free webinars.

Best for earning airline miles

Bask Bank Interest Savings Account

Bask Bank and BankDirect are divisions of Texas Capital Bank, Member FDIC.

Annual Percentage Yield (APY)
Minimum balance
Monthly fee
Maximum transactions

Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D
Overdraft fees
Offer checking account?
Offer ATM card?

Pros

Strong APY
No minimum balance
No monthly fees
Ability to earn American Airlines AAdvantage miles instead

Cons

No option to add a checking account
No ATM access

Who’s this for? If you want to maximize your interest-earning potential, the Bask Bank Interest Savings Account may be for you. It offers a very respectable cash APY to all savings account holders.

Here’s the kicker: If you’re a frequent traveler, you can opt to earn American Airlines AAdvantage^® miles back instead. You can use these miles for flights on American Airlines or any of its 20+ partner airlines. So, you can effectively fund your next vacation without any spending.

The accounts offer no monthly fees and no minimum deposits. Just note that the bank may close your account if it remains unfunded for 60 days. Bask Bank is a division of Texas Capital Bank, but operates completely online.

Best for welcome bonus

SoFi Checking and Savings

Information about SoFi Checking and Savings has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication.

Monthly maintenance fee
Minimum deposit to open
Minimum balance
Annual Percentage Yield (APY)

Members with direct deposit earn 3.75% APY on savings and Vaults balances, and 2.50% APY on their checking balances. Members without direct deposit will earn 1.20% APY.
Free ATM network

55,000+ fee-free ATMs within the Allpoint® Network
ATM fee reimbursement
Overdraft fee

No-Fee Overdraft Coverage is available; however, SoFi requires $1,000 of monthly direct deposit inflows to unlock it
Mobile check deposit

Pros

No minimum deposit to open an account
1.80% APY with direct deposit
2-day-early-paycheck automatically when you set up direct deposit
Save your change automatically with Roundups and set savings goals with Vaults
Get up to 15% cash back at local establishments
No foreign transaction fees

Cons

No reimbursement for out-of-network ATM fees
Not a standalone checking or savings account

Who’s this for? The SoFi Checkings and Savings account stands out for offering a valuable welcome bonus after you set up and receive direct deposit payments. You can earn anywhere from $50 to $300, depending on the total of your direct deposits in a 30-day period.

The account also gives you a solid return. The only caveat is that you must opt-in to direct deposit in order to get the maximum interest.

In addition, the account comes with a debit card that has fee-free ATM access through the Allpoint® Network, which has over 55,000 locations across the country. And while paying with a debit card can sometimes lack rewards, you can get up to 15% cash back when you use your card at specific merchants.

And if you’re looking to fully immerse yourself in the fintech/online bank space, SoFi offers a variety of financial products, including student loans, personal loans, mortgage refinancing, auto loans and more.

Best if you want extra help saving

Varo Savings Account

Bank Account Services are provided by Varo Bank, N.A., Member FDIC.

Annual Percentage Yield (APY)

Begin earning 3.00% and qualify to earn 5.00% if you meet requirements
Minimum balance

None; $0.01 to earn savings interest
Monthly fee
Maximum transactions

Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D
Excessive transactions fee
Overdraft fees
Offer checking account?
Offer ATM card?

Yes, if have a Varo Bank Account

Pros

High APY and option to earn even higher
No minimum balance
No monthly fees
Up to 6 free withdrawals or transfers per statement cycle*
ATM access at 55,000 fee-free AllPoint® ATMs with a Varo Bank Account
Offers 2 programs to help automate your savings

Cons

Cash deposits are only available through third-party services, which charge a fee

Who’s this for? Varo is an all-mobile national bank, so for those looking to save and don’t mind banking entirely over the phone or online, the Varo Savings Account makes a good option.

Varo offers a solid APY to all savings account holders, as well as a checking account option. Neither accounts require minimum balances to open and neither charges monthly maintenance fees.

Varo stands out because of its uniquely tiered APY program that encourages you to save more.

For those who want extra help saving, the online bank offers two programs that automatically transfer money from your Varo bank account to your savings account: Save Your Pay, which transfers a percentage of your paycheck into your savings, and Save Your Change, which rounds up your checking account transactions to the nearest dollar and transfers the difference to your savings.

Varo also offers an ATM network with no fees (as well as no penalty for overdrafts up to $50). For any cash deposits, note that Varo only makes these available through third-party services, which may charge a fee.

Find the best savings account for you: Help your money grow by finding the savings account that offers the best rates and features for you.

FAQs

How do online savings accounts work?

While online savings accounts offer some of the highest APYs, it’s also more tedious to access your money than banking at a brick-and-mortar institution, since you’ll usually have to transfer to a checking account to use your money. This is arguably a good thing if you’re trying to grow your emergency savings, as you won’t have easy access to withdraw from the account.

While it may seem nerve-wracking to have limited access to your savings, one of the big reasons to put your emergency fund into a high-yield account is to watch it grow. The higher your account balance is, the more money you will earn in compound interest over time.

Can you lose money in a high-yield savings account?

There’s a near-zero risk of capital loss when you open a savings account at an FDIC-insured bank, as your account is insured for up to $250,000. Interest rates may decrease, but your cash will not. Theoretically, your money would lose value if the inflation rate is higher than your APY, but that’s no different than a traditional savings account. So, opening a high-yield savings account is definitely worth considering.

Do you pay taxes on a high-yield savings account?

Interest accrued on a high-yield savings account is taxed as ordinary income. You must report the interest on your tax return for any account that earned more than $10 in one year.

Can you withdraw money from a high-yield savings account?

By law, consumers can withdraw or transfer cash out of a high-yield savings account up to six times per month without paying any fees. However, some accounts let you make more withdrawals for no additional fee.

What are the cons of a high-yield savings account?

The biggest con of a high-yield savings account is that you’re usually limited to a certain number of withdrawals each month before you’re hit with a fee — just like a traditional savings account. Further, interest rates can fluctuate over time, but that applies to all types of savings accounts. Withdrawing money may also be a slightly slower process as only a few high-yield savings accounts offer ATM cards. Most of the online high-yield savings account banks don’t have physical locations.

Common high-yield terms you should know

Annual Percentage Yield (APY): The amount of interest an account earns in a year.
ACH transfer: When you want to make small and frequent payments electronically (direct deposit, automated bill payments, etc.); typically always free but usually takes at least one business day to complete the transfer.
Wire transfer: When you want to move funds from one bank account to another and have the money be available for use in the same business day; banks usually charge a fee.
Mobile deposit: Instead of going to the bank to deposit a check, you can use your mobile banking app to scan a photo of the check and have the funds immediately deposited into your account. It can sometimes take a day or two for the funds to be accessible.
ATM networks: ATMs can either be in-service or out-of-network, depending on which bank you have. When you make a transaction at an ATM that is outside your bank’s network, then a fee will most likely be applied by both the ATM operator and your bank.

Our methodology

To determine which high-yield savings accounts offer the best return on your money, CNBC Select analyzed dozens of U.S. savings accounts offered by online and brick-and-mortar banks, including large credit unions. We narrowed down our ranking by only considering those savings accounts that offer an above-average APY, no monthly maintenance fees and low (or no) minimum balance requirements.

While the accounts we chose in this article consistently rank as having some of the highest APY rates, we also compared each savings account on a range of features, including ease of use and account accessibility, as well as factors such as insurance policies and customer reviews when available. We also considered users’ deposit options and each account’s compound frequency.

All of the accounts included on this list are FDIC-insured up to $250,000. Note that the rates and fee structures for high-yield savings accounts are not guaranteed forever; they are subject to change without notice and they often fluctuate in accordance with the Fed rate. Your earnings depend on any associated fees and the balance you have in your high-yield savings account. To open an account, most banks and institutions require a deposit of new money, meaning you can’t transfer the money you already had in an account at that bank.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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March 1, 2023

CNBC’s best big bank checking accounts of 2022

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Editor’s Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC Select will update as changes are made public.

Big banks have a major advantage over online-only banks when it comes to convenience. With hundreds or thousands of physical branches scattered across the U.S., customers can deposit and withdraw money by visiting a teller inside or via a drive-up window or ATM machine. Customers also have the convenience of being able to speak to someone face-to-face and work out any account questions or requests, rather than needing to call in and deal with potentially long wait times.

Online banks often offer customers better rates and lower fees since big banks have to recoup overhead costs to keep physical branches up and running. That said, there are still competitive brick-and-mortar banks that offer checking accounts with options to waive monthly fees if you meet certain requirements.

To help you choose the right bank for your needs, CNBC Select evaluated dozens of checking accounts offered by big banks, offering access to at least 2,000 physical branches and over 4,000 fee-free ATMs in the U.S. We considered features like fees, minimum balance requirements and ease of use, among other factors to choose the top five best big bank checking accounts. (See our methodology for more information on how we choose the best checking accounts.)

Note: Most big banks require you to enter your zip code online for the correct account offerings, and in some cases, you might not be able to open an account because of your location.

Best big bank checking accounts of 2022

Best at Bank of America

Bank of America Advantage Plus Banking®

Monthly maintenance fee

$12, with options to waive
Minimum deposit to open
Minimum balance

$1,500 daily balance to avoid monthly maintenance fee
Annual Percentage Yield (APY)
Free ATM network

16,000 Bank of America ATMs
ATM fee reimbursement
Overdraft fee

$10 per item (max 2 per day)
Mobile check deposit

Pros

Earn cash back on select deals at stores, restaurants and more through BankAmeriDeals®
Make saving easier with the Bank of America’s Keep the Change® program
Four ways to waive the monthly maintenance fee
Bank of America has a vast network of ATMs
Send and receive money with Zelle

Cons

$10 per item overdraft fee
$12 monthly maintenance fee
$100 minimum deposit to open an account
No reimbursement for out-of-network ATM fees

How to avoid the monthly fee:

Have at least one qualifying direct deposit of $250,
or maintain a minimum daily balance of $1,500 or more,
or be a Preferred Rewards client,
or be a student under age 24 who’s enrolled in high school, college, university or a vocational program

Best at Chase

Chase Total Checking®

Monthly maintenance fee

$12, with options to waive
Minimum deposit to open
Minimum balance

$1,500 daily balance to avoid monthly maintenance fee
Annual Percentage Yield (APY)
Free ATM network

Access to more than 16,000 Chase ATMs
ATM fee reimbursement
Overdraft fee

*With Chase Overdraft Assist^SM, we won’t charge an Insufficient Funds Fee if you’re overdrawn by $50 or less at the end of the business day OR if you’re overdrawn by more than $50 and you bring your account balance to overdrawn by $50 or less at the end of the next business day (you have until 11 PM ET (8 PM PT) to make a deposit or transfer). Chase Overdraft Assist does not require enrollment and comes with eligible Chase checking accounts.
Mobile check deposit

Pros

Top-rated mobile app
No minimum deposit to open an account
Chase is no. 2 on J.D. Power’s 2019 U.S. National Banking Satisfaction Study
Send and receive money with Zelle®

Cons

No APY
No reimbursement for out-of-network ATM fees

How to avoid the monthly fee:

Electronic deposits made into this account totaling $500 or more,
or a balance at the beginning of each day of $1,500 or more in this account,
or an average beginning day balance of $5,000 or more in any combination of this account and linked qualifying Chase checking, savings and other balances

Best at PNC Bank

Virtual Wallet® with Performance Select

Information about the PNC Bank Virtual Wallet® has been collected independently by Select and has not been reviewed or provided by the bank prior to publication. PNC Bank is a Member FDIC.

Monthly maintenance fee

$25, with options to waive
Minimum deposit to open
Minimum balance

$5,000 combined average monthly balance in your Spend and up to 7 linked PNC bank consumer checking accounts to avoid monthly maintenance fee
Annual Percentage Yield (APY)

Need to call PNC for the APY offered in your area
Free ATM network

18,000 PNC and PNC partner ATMs
ATM fee reimbursement

Up to $20 per statement period
Overdraft fees
Mobile check deposit

Pros

Three options to waive monthly maintenance fee
Virtual Wallet includes individual checking and savings accounts that work together
New account holders can earn a welcome bonus of $400 when you establish total qualifying direct deposits of $5,000 or more to your Spend account
Up to $20 reimbursement for non-network ATM fees per statement period
No charge for overdraft protection transfer fees

Cons

$25 monthly maintenance fee
Have to call PNC Bank to find out APY offered in your area

How to avoid the monthly fee:

Have a $5,000 or greater monthly direct deposit to your Spend account
or maintain a $5,000 minimum monthly balance in Spend and Reserve,
or maintain $25,000 in all PNC consumer and/or investments accounts

Best at U.S. Bank

U.S. Bank Gold Checking Package

Information about the U.S. Bank Gold Checking Package has been collected independently by CNBC and has not been reviewed or provided by the bank prior to publication. U.S. Bank is a Member FDIC.

Monthly maintenance fee

$14.95, with options to waive
Minimum deposit to open
Minimum balance
Annual Percentage Yield (APY)
Free ATM network
ATM fee reimbursement
Overdraft fee

$36 (max of 4 overdraft fees per day)
Mobile check deposit

Pros

Easily waive the monthly maintenance fee with an open U.S. Bank personal line of credit, home mortgage, home equity loan and line of credit, personal and purpose loan or activated credit card
2 out-of-network ATM reimbursements per statement period
No overdraft protection transfer fee for transfers made from a linked deposit account
Preferred rates on new auto loans, home equity loans or lines, and other personal loans (autopay may be required for benefit)
Up to 2 additional Easy Checking accounts with no monthly maintenance fee (requires you to be an account holder)
Send and receive money with Zelle

Cons

$14.95 monthly maintenance fee
No APY

How to avoid the monthly fee:

Have open a qualifying U.S. Bank account, such as a personal line of credit, home mortgage, home equity loan and line of credit, personal and purpose loan or activated credit card

Best at Wells Fargo

Wells Fargo Everyday Checking

Information about the Wells Fargo Everyday Checking has been collected independently by Select and has not been reviewed or provided by the bank prior to publication. Wells Fargo is a Member FDIC.

Monthly maintenance fee

$10, with options to waive
Minimum deposit to open
Minimum balance

$500 daily deposit balance to avoid monthly maintenance fee
Annual Percentage Yield (APY)
Free ATM network
ATM fee reimbursement
Overdraft fee

$35 (max of 3 overdraft fees per day)
Mobile check deposit

Pros

Four ways to waive the monthly maintenance fee
Send and receive money with Zelle
Easy-to-use mobile app

Cons

$25 minimum deposit to open an account
$35 overdraft fee
No APY
No reimbursement for out-of-network ATM fees

How to avoid the monthly fee:

Maintain $500 in combined minimum deposit balances,
or make qualifying direct deposits totaling $500 or more,
or be between 17 – 24 years old
or have a linked Wells Fargo Campus ATM Card or Campus Debit Card (for college students)

FAQs

How to choose a checking account

Before you open a checking account, consider these six factors:

Insurance: Verify that the bank or credit union where you open an account provides insurance from either the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA). This insurance protects and reimburses you up to your balance and the legal limit ($250,000 per individual account) in the event your bank or credit union fails.
Minimum deposit requirements: Many checking accounts require you to maintain a certain balance in order to avoid the monthly maintenance fee. If you don’t meet the balance requirements, you may incur a monthly maintenance fee up to $15. However, some accounts offer several different ways you can qualify for a waived monthly fee that don’t require a minimum balance.
Fees: Checking accounts charge various fees to access your money, including: monthly service/maintenance fee, overdraft fee, non-sufficient (NSF) fee and ATM fee. These fees can range from a couple dollars to $35 per occurrence, making repeat fees costly.
ATM network: If you often pay with or receive cash, you’ll need to use an ATM and/or visit a branch location to withdraw money. Thankfully, all of the checking accounts mentioned above provide access to thousands of free ATMs, plus physical branch locations.
Interest and rewards: Checking accounts aren’t meant for long-term savings goals, but there are some financial institutions that provide interest rates on eligible balances.
Mobile app features: While you can visit physical branch locations with brick-and-mortar checking accounts, you should also consider what mobile features are offered. Mobile check deposit and integration with peer-to-peer payment apps, such as Zelle, are two common features to look for.

Find the best savings account for you: Help your money grow by finding the savings account that offers the best rates and features for you.

Common checking account fees

While there are several good no-fee checking accounts out there, most checking accounts come with standard fees. Here are some of the common checking account fees you may incur:

Monthly maintenance fee: The monthly service fee, often up to $15, that banks or credit unions charge to maintain your account.
Overdraft fee: If you spend more than the amount in your account, resulting in a negative balance, you may be hit with a steep overdraft fee up to $35.
Non-sufficient funds (NSF) fee: If you write a check and it bounces because there isn’t enough money in your bank account, you’ll likely incur a NSF fee.
ATM fee: When you use an ATM that isn’t affiliated with your bank or credit union, you may be hit with two fees: one from your bank/credit union and another from the ATM operator. Banks/credit unions charge around $1.63 while ATM operators charge roughly $3.09.
Paper statement fee: If you don’t enroll in paperless statement, you could pay up to $5 per statement.
Foreign transaction fee: If you use your debit card to make purchases or withdraw money from an ATM outside of the U.S., you’ll often incur a fee that’s often 3% of the U.S. dollar amount of the transaction.
Account closure fee: If you close your account within 90 to 180 days of opening it, you may incur an account closure fee around $25.

While these fees can add up, you can avoid them by responsibly managing your account and always maintaining a positive balance.

Our methodology

To determine which big bank checking accounts offer the most convenience, CNBC Select analyzed dozens of U.S. checking accounts offered by the largest national banks and credit unions. We narrowed down our rankings by only considering checking accounts that come from brick-and-mortar banks with broad availability, offering access to at least 2,000 physical branches and over 4,000 fee-free ATMs in the U.S.

We compared each checking account on a range of features, including:

Fees
Minimum balance requirement
Number of states with branches
Large ATM network
Ease of use and account accessibility
Customer reviews, when available

All of the accounts included on this list are Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) insured up to $250,000. This insurance protects and reimburses you up to your balance and the legal limit in the event your bank or credit union fails.

The rates and fee structures for checking accounts are subject to change without notice and they often fluctuate in accordance with the prime rate.

Your earnings depend on any associated fees and the balance you have in your checking account. To open an account, some banks and institutions may require a deposit of new money, meaning you can’t transfer money you already had in an account at that bank.

Catch up on Select’s in-depth coverage of personal finance, tech and tools, wellness and more, and follow us on Facebook, Instagram and Twitter to stay up to date.

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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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March 1, 2023

Slowing growth is still a significant downside risk to stocks, Morgan Stanley says

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Andrew Sheets, chief cross-asset strategist at Morgan Stanley, discusses recent economic data out of the U.K., Europe and the U.S., and the potential risks to stock markets.

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March 1, 2023

$33 billion fintech giant Revolut reports first-ever annual profit

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Nikolay Storonsky, founder and CEO of Revolut.

Harry Murphy | Sportsfile for Web Summit via Getty Images

Financial technology giant Revolut reported its first-ever annual profit in 2021, according to financial accounts released Wednesday, as subscriptions to its paid packages and overall usage of its app grew sharply.

The company reported revenues of £636.2 million ($767.1 million) for the year, three times what it made the previous year, and swung to a pre-tax profit of £59.1 million. In 2020, Revolut recorded a pre-tax loss of £205 million.

Mikko Salovaara, Revolut’s chief financial officer, told CNBC the results were the product of Revolut’s diversified business and diligent cost control.

“The worst possible scenario would be if Revolut wasn’t sustainable or if it were to require external funding,” Salovaara said. “The reality is we don’t require external funding. We continue to invest in our business providing products people can rely on.”

For 2022, Revolut gave a trading update saying it expects revenues to have grown more than 30% to £850 million. As a privately held firm, it is not required to share frequent quarterly reports.

Revolut’s announcement is a rare positive piece of news in a fintech market that has been plagued by mass layoffs and huge valuation cuts as investors reassess the space amid worsening macroeconomic conditions.

Klarna, the Swedish buy now, pay later fintech, saw its valuation plunge 85% to $6.7 billion last year. On Tuesday, the firm posted a record $1 billion loss in its 2022 fiscal year.

Asked about Revolut’s valuation Wednesday, Salovaara said he couldn’t say how much the firm was worth since it hasn’t raised cash since 2021, but he’d be “hard pressed to believe investors wouldn’t continue to be pleased with our performance.”

However, Revolut was late to producing its accounts to the U.K. company register, Companies House, in time for a Dec. 31 deadline. They were finally signed off by BDO, Revolut’s auditors, last month.

Revolut reportedly faced concerns from U.K. regulators over the robustness of its internal financial controls. In September, BDO’s audit of Revolut’s 2021 accounts was deemed “inadequate” by the Financial Reporting Council, which said that “the risk of an undetected material misstatement was unacceptably high.”

The company, which has no physical branches, offers digital banking, money transfers, and cryptocurrency and stock trading through a single app. It competes with the likes of Wise, Monzo and Starling.

Founded in 2015 by former Lehman Brothers trader Nikolay Storonsky and software developer Vlad Yatsenko, Revolut has quickly grown to become one of Europe’s largest fintech unicorns, with a valuation of $33 billion.

Revolut has been pushing hard into overseas markets, in particular the U.S., where it currently has over 500,000 clients. The firm has also opened operations in Brazil, Mexico and India. In November, Revolut announced it has 25 million users worldwide.

Closer to home, though, the company’s growth plans have been dealt some setbacks. Revolut has been pursuing a banking license in the U.K. for the past two years, in an effort to source more of its income from lending activity.

That process has been a drawn out one, and it is believed the wait is in connection with the delays to the publication of Revolut’s results. Revolut has also faced criticisms over an aggressive working culture, which has reportedly led to departures of key regulatory and compliance executives.

Revolut hopes to obtain its U.K. banking license “very soon,” Salovaara said. Pressed on when the firm would eventually secure its license, he suggested it was likely to happen before the year is out.

While Revolut’s full-year 2022 results are yet to be disclosed, one thing is clear — the firm’s crypto business deteriorated sharply. Salovaara said that in 2021, crypto accounted for roughly a third of sales, but in 2022 this dropped to between 5% to 10%.

UK minister: We're only country in the world concentrating on budget discipline

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February 28, 2023

Options Action: Goldman options

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Optimize Advisors’ Mike Khouw looks at what’s going on with Goldman Sachs options. With CNBC’s Melissa Lee and the Fast Money traders, Tim Seymour, Dan Nathan, Guy Adami and Julie Biel.

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February 28, 2023

Here’s why 7 Club stocks, including Nvidia and Meta, beat the market in January and February, defying this year’s seesaw start

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This year has, so far, been something of a Jekyll and Hyde market for equities. January’s strength was a welcome reprieve from the brutality that was 2022. February’s stumble has reminded us that sticky inflation remains a challenge for both the broader economy and stocks. With that in mind, we sifted through our portfolio to find names with a mix of durable fundamentals and stories strong enough to cut through rekindled inflation fears — and the resulting concerns that the Federal Reserve could need to maintain higher interest rates for longer. It’s a dynamic we discussed just last week, charting the ups and downs for the S & P 500 at pivotal moments in the 2023 inflation arc. The criteria for Tuesday’s screen were simple: Stocks had to outperform the market on a monthly basis in both January and February. The returns each month had to actually be positive. The S & P 500 gained nearly 6.2% in January, while losing 2.6% in February. Here are the seven Club holdings that made the cut (and two honorable mentions), arranged by year-to-date performance. Generative AI boost for Nvidia NVDA 1Y mountain Nvidia (NVDA) 1-year performance Nvidia (NVDA) was the Club’s biggest winner in January, climbing 33.7%, and in February its 18.8% monthly gain is second to only Bausch Health (BHC). In January, Nvidia certainly benefited from the broad tailwind that lifted many of 2022’s biggest losers . The stock’s exceptional performance this year goes much deeper to company-specific factors — specifically, all the buzz around generative artificial intelligence (AI). Nvidia’s semiconductors and related software are integral to the budding generative AI field, which generally refers to a type of artificial intelligence that can create text, images and code in response to user queries. Optimism around generative AI began late last year, with the release of ChatGPT, and it’s picked up steam well into 2023. “AI adoption is at an inflection point,” Nvidia CEO Jensen Huang said on the chipmaker’s earnings conference call last week. During that call, Nvidia also indicated a recovery in data center and gaming chips is taking place sooner than many expected, which has only added fuel to investor optimism and contributed to a wave of analyst price-target boosts the following day . Despite this year’s surge, Nvidia shares were still about 18.5% lower than their 52-week high of $289 each back in March. It’s worth noting that fellow Club holding Microsoft (MSFT) has been a huge beneficiary of the AI tailwind this year. The tech giant is a large investor in OpenAI, the startup behind ChatGPT, and the two entities maintain a very close partnership. Microsoft also has made a series of AI-related announcements so far this year, including a revamped version of its search engine, Bing, geared around generative AI. If not for a rough three-day stretch to begin 2023, Microsoft shares likely would’ve made it onto this list of stocks. Ultimately, the stock underperformed the market in January with a gain of 3.3%, disqualifying it. But the stock did beat the market in February, with a nearly 0.7% advance. Bausch bounces, but questions remain BHC 1Y mountain Bausch Health (BHC) 1-year performance Bausch Health (BHC) has had an incredible start to the year, climbing roughly 21% in both January and February. Thanks to a solid earnings report last week, it has managed to hold onto that strong performance. Some of that January move was no doubt attributable to the broader market action, as headwinds certainly remain for Bausch due to its ongoing Xifaxan patent battle. The market was also pleased to see that Brent Saunders is taking the helm at Bausch + Lomb (BLCO). Since Bausch Health still owns over 85% of Bausch + Lomb, what’s good for the latter is good for the former. However, the Xifaxan dispute remains a major overhang on the stock, taming our excitement over its performance so far this year. BHC was still about 62% lower than its 52-week high of just over $24 per share exactly one year ago. Efficiency commitment lifts Meta META 1Y mountain Meta Platform (META) 1-year performance Meta Platforms (META) has really turned it around, gaining roughly 24% in January and over 17% in February. This is one of the best examples in the market of how important it is to acknowledge the operating environment and act accordingly. Last year was brutal for the stock, with management seemingly intent on investing in the metaverse at all costs and planning to grow expenses despite revenues coming under pressure. But it’s a whole new world in 2023. CEO Mark Zuckerberg has completely changed his tune, telling investors on the company’s most recent post-earnings conference call that the focus now is efficiency, efficiency, efficiency . The team has also stressed the important role of artificial intelligence. Investments in AI technology will likely help Meta become more efficient, aid in monetizing previously unmonetized platforms such as WhatsApp and Messenger, all while fending off Chinese competitor TikTok. Meta made this list largely due to a post-earnings surge, but we think the consolidation seen the rest of the month is healthy in the long term. After being crushed last year, shares were recovering but still 26% lower than their 52-week high of nearly $237 each back in April. Palo Alto pivot to profitability PANW 1Y mountain Palo Alto Networks (PANW) 1-year performance Palo Alto Networks (PANW) advanced nearly 14% in January before climbing nearly 19% in February, aided by a very strong quarterly report that demonstrated our investment thesis in the newest Club holding. We started our PANW position in mid-February, adding to it once since then for a nearly 8.5% paper profit so far. The stock was still more than 11% below its 52-week high of $213 per share back in April. As a cybersecurity provider, Palo Alto Networks benefits from being among the highest priorities in corporate IT budgets. Given the company’s strong free cash flow and pivot to profitability , a move that has now resulted in three consecutive quarters of generally accepted accounting principles (GAAP) profitability, we think shares have further room to the upside despite their year-to-date strength. Wynn benefits from China reopening WYNN 1Y mountain Wynn Resorts (WYNN) 1-year performance Wynn Resorts (WYNN) stock has climbed more than 4.5% in February, following a robust 25.7% gain in January. Shares have more than doubled since their 52-week low of around $50 each back in June. There are a few reasons for the stock’s resilience, including continued optimism around a recovery of the casino operator’s business in Macao, a Chinese special administrative region where gambling is legal and a big business. Wynn’s crucial Macao properties stand to benefit in the quarters ahead after China late last year dropped its draconian zero-Covid policy. Wynn’s U.S. operations — in Las Vegas and Boston — have been impressive, too, a clear sign the company is benefiting from consumers’ desire to keep spending on experiences despite inflationary pressures. AMD sees inventory corrections near bottom AMD 1Y mountain Advanced Micro Devices (AMD) 1-year performance After climbing 16% in January, shares of Advanced Micro Devices (AMD) gained 4.6% through February. As with Nvidia, AMD’s January performance was partially aided by the general rotation back into 2022 clunkers. The stock, however, was still about 37% lower than its 52-week high of $125 per share back in March. Recent optimism around artificial intelligence is spilling over into AMD, too. While Nvidia is seen as the best-of-breed AI chipmaker, the tech trend is a clear growth opportunity for AMD, a point CEO Lisa Su made on the firm’s fourth-quarter earnings call in January . AMD also is a cheaper option for investors who want a semiconductor stock poised to benefit from AI, trading at 23.7-times forward earnings, compared with Nvidia’s 52.2 forward multiple, according to FactSet. Some of the inventory corrections that plagued AMD last year — particularly on the PC side — appear to be nearing a bottom, as well. That’s helped improve sentiment. Nvidia’s recent comments on the data center and gaming turnaround it’s seeing may also support optimism around AMD. Apple grabs smartphone market share AAPL 1Y mountain Apple (APPL) one-year performance. Apple (AAPL) gained just over 11% in January and more than 2.5% in February, reinforcing the Club mantra: Own it, don’t trade. The gains come as the iPhone maker is capturing a greater portion of the global smartphone market, particularly when it comes to high-end models. Gen-Z buyers “increasingly see the iPhone as a must-have,” The Wall Street Journal reported Monday. And the iPhone’s growing popularity with Gen Z shows that Apple is continuing to brandish its image as a status symbol with the next generation of consumers. It also demonstrates how Apple is growing its installed base of users, which should allow the company to ultimately expand its high-margin services revenue. Those developments, combined with the company’s continued commitment to shareholder returns, make Apple a name to hold for the long term. Honorable Mentions We also want to call out two honorable mentions: Morgan Stanley (MS) and Wells Fargo (WFC). Both financial firms outperformed the S & P 500 in January and February. However, they failed the screen due to negative absolute returns in February, despite their outperformance versus the broader market. Wells Fargo lost 0.2% in February, while Morgan Stanley fell 0.9%. Both banks benefit from higher interest rates and an economy that so far has refused to be held down, something of a goldilocks scenario for a business that makes money on the spread between rates and thrives on economic activity. Wells Faro and Morgan Stanley also have significant share repurchase authorizations, which is good news for shareholders . WFC MS 1Y mountain Wells Fargo (WFC) vs. Morgan Stanley (MS) 1-year performance Morgan Stanley is benefiting from an increase in fee-based revenues, part of its multiyear shift toward asset management to smooth out the cyclical fluctuations of its traditional investment banking franchise. Wells Fargo, meanwhile, is seeing great benefits from the interest rate spread between what it charges for loans and pays out on deposits. Wells Fargo also is a turnaround story, working diligently to achieve regulatory milestones that will let it free up additional capital for investments and shareholder returns. Bottom line Wall Street hit a rough patch in February, but that didn’t prevent certain Club stocks from breaking through. Of the names mentioned above, Palo Alto, Apple and Wells Fargo are 1-rated stocks , indicating our view that they can be bought here and now. With the exception of Bausch Health, which we think has to be avoided until more is known about the Xifaxan patent litigation, we are actively looking to buy the remaining stocks on this list on pullbacks, as signified by our 2 rating. We believe they’re best-in-class businesses led by top-tier management teams with further long-term upside. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Jensen Huang, president and CEO of Nvidia, speaks during the company’s event at the 2019 Consumer Electronics Show in Las Vegas on Jan. 6, 2019.

David Paul Morris | Bloomberg | Getty Images

This year has, so far, been something of a Jekyll and Hyde market for equities.

January’s strength was a welcome reprieve from the brutality that was 2022. February’s stumble has reminded us that sticky inflation remains a challenge for both the broader economy and stocks.

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February 28, 2023

CNBC’s best high-yield savings accounts of 2023

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Editor’s Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC Select will update as changes are made public.

High-yield savings accounts have been in the spotlight in 2023. While the stock market has been highly volatile, high-yield savings accounts have been consistently paying out higher annual percentage yields (APYs) to their customers. Some of this year’s highest rates have exceeded 4% APY.

These types of accounts reward you with higher interest rates than traditional savings accounts and allow your money to grow faster thanks to compound interest — which lets you earn interest on interest. The higher your APY, the faster your money grows and you get a better return than you would with a traditional savings account.

While rates can fluctuate over time, high-yield savings accounts generally offer APYs over 10 times greater than the national average on savings accounts. So, if you’re building an emergency fund or saving up for a large expense, putting your money in a high-yield savings account can help you reach your goals quicker.

To determine which high-yield savings accounts are the best overall, CNBC Select analyzed and compared dozens of savings accounts offered by online and brick-and-mortar banks, including large credit unions. We considered factors like the account’s APY, its ease of use, account accessibility, monthly fees and minimum balance requirements. The savings accounts selected offer an above-average APY to all customers (no matter their balance), are FDIC-insured, have zero monthly maintenance fees and low (or no) minimum balance requirements. (See our methodology for more information on how we choose the best high-yield savings accounts.)

Best high-yield savings accounts of 2023

Best overall

LendingClub High-Yield Savings

LendingClub Bank, N.A., Member FDIC

Annual Percentage Yield (APY)
Minimum balance

No minimum balance requirement after $100.00 to open the account
Monthly fee
Maximum transactions
Excessive transactions fee
Overdraft fees
Offer checking account?
Offer ATM card?

Pros

Strong APY
No minimum balance required
No monthly fees
Free ATM card and no ATM fees

Cons

$100 minimum opening deposit required, though there’s no minimum balance after that
No physical branch locations

Who’s this for? The LendingClub High-Yield Savings account stands out for offering one of the highest returns on your money, charging no monthly maintenance fee and not having a minimum balance requirement. You just need an initial $100 deposit to open the account.

Unlike many savings accounts, LendingClub provides customers with a free ATM card and never charges any ATM fees. This makes it easy to access your savings account and withdraw money whenever you want. You can also use your funds to pay bills, send money to friends and family and make internal and external transfers.

To add money to your savings account at LendingClub, you can deposit cash at select ATMs, deposit checks via the mobile app, do a direct deposit, make an electronic transfer from an external bank or make a wire transfer.

Best for earning high APY

UFB Preferred Savings

UFB Best Savings is a Member FDIC.

Annual Percentage Yield (APY)
Minimum balance
Monthly fee
Maximum transactions

No max number of transactions; Max transfer amounts may apply
Excessive transactions fee
Overdraft fees

Overdraft fees may be charged, according to the terms, but a specific amount is not specified; overdraft protection service available
Offer checking account?
Offer ATM card?

Pros

Strong APY
No minimum balance
No monthly fees
Free ATM card
Free transfers between direct deposit accounts
Online and SMS banking available
Mobile check deposits

Cons

No option to add a checking account
No physical branch locations
Potential overdraft fee, though, overdraft protection is offered

Who’s this for? The UFB Preferred Savings account is for anyone who’s focused on maximizing their returns. It offers one of the highest interest rates currently available.

The account charges no monthly fees, allows unlimited transfers and has no minimum deposits. Whether you deposit $1 or $1,000, you’ll earn the same, high return.

As with the other banks on this list, UFB Direct is an online-only bank, and it is a division of Axos Bank. Although there are no physical branches and you can’t add a checking account, customers do get a free ATM card.

Best for no fees

Marcus by Goldman Sachs High Yield Online Savings

Goldman Sachs Bank USA is a Member FDIC.

Annual Percentage Yield (APY)
Minimum balance

None to open; $1 to earn interest
Monthly fee
Maximum transactions

At this time, there is no limit to the number of withdrawals or transfers you can make from your online savings account.
Excessive transactions fee
Overdraft fees
Offer checking account?
Offer ATM card?

Pros

No minimum balance (just $1 to earn interest)
No monthly fees
No limit on withdrawals or transfers per statement cycle
Easy-to-use mobile banking app
Offers no-fee personal loans

Cons

No option to add a checking account
No ATM access

Who’s this for? Marcus by Goldman Sachs High Yield Online Savings offers no fees whatsoever, no minimum deposits and easy mobile access. It’s the most straightforward savings account to use when all you want to do is grow your money with zero conditions attached.

The Marcus account also stands out thanks to its mobile banking app, which is simple to use and allows you to set up recurring deposits, track your savings goals and see how much interest you’ve earned this year. The bank’s U.S.-based contact center is open 24/7 for live customer support over the phone or through online chat.

Account holders can withdraw money from their Marcus savings account online and by phone through ACH or by free wire transfer to a linked account at another bank. You can also request a withdrawal by check mailed to you.

To add money to your account, you can transfer funds, make direct deposit payments, deposit a check or make a wire transfer. Marcus doesn’t charge a fee if you link other bank accounts for incoming and outgoing transfers, but keep in mind that your other bank might.

While there are no ATM cards or checking account options available through Marcus, the bank does offer a variety of no-fee personal loans as well.

Best for checking/savings combo

Ally Bank Online Savings Account

Ally Bank is a Member FDIC.

Annual Percentage Yield (APY)
Minimum balance
Monthly fee

No monthly maintenance fee
Maximum transactions

Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D
Excessive transactions fee
Overdraft fees
Offer checking account?
Offer ATM card?

Yes, if have an Ally checking account

Pros

Strong annual percentage yield on all balance tiers
No minimum balance
No monthly maintenance fee
Up to 6 free withdrawals or transfers per statement cycle*
Option to add a checking account
ATM access if you have a checking account

Cons

$10 fee per transaction if you make more than 6 in a statement cycle
$25 overdraft fee

Who’s this for? Ally is a good choice for anyone looking to do all their banking in one place. While the Ally Online Savings Account is a good high-yield account on its own, account holders can enjoy even more benefits if they also have an Ally checking account.

In addition to a solid APY, no minimum account balance and no monthly maintenance fees, an Ally checking and savings account also gives you access to over 43,000 free Allpoint^®ATMs, making it easy to withdraw cash when you need to. If you only have an online savings account, you won’t have access to a debit card.

If you use an out-of-network ATM, Ally doesn’t charge a fee and if the ATM provider does, Ally will reimburse those fees up to $10 per month.

Not all online banks also offer a checking account option. Saving your money with a bank that doesn’t offer a checking account means you would have to transfer your money between banks, which could take a couple of days. By law, account holders with Ally can withdraw or transfer money online up to six times per month with no penalty. After, Ally charges $10 per transfer. You can also call the bank to request a mailed check, which doesn’t count as one of your six transactions.

You can’t deposit cash in your Ally savings account, which is standard for many online banks, but you can deposit checks remotely with eCheck Deposit on the mobile app. Account holders can organize their saving goals by creating up to 10 different “buckets” within the same savings account. For example, you can create a designated fund for a “Future Vacation” and another for “Emergency Savings.”

Ally is also a consumer favorite because of its easy-to-use mobile app and 24/7 live customer service that is available over the phone, through online chat or on the Ally mobile app.

Best for easy access to your cash

Synchrony Bank High Yield Savings

Synchrony Bank is a Member FDIC.

Annual Percentage Yield (APY)
Minimum balance
Monthly fee
Maximum transactions

Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D
Excessive transactions fee

None, but may result in account closure
Overdraft fees
Offer checking account?
Offer ATM card?

Pros

Strong APY
No minimum balance
No monthly fees
Up to 6 free withdrawals or transfers per statement cycle*
Easy ATM access
1 physical branch (in Bridgewater, New Jersey)

Cons

Account could close if you make more than 6 transactions in a statement cycle
No option to add a checking account

Who’s this for? Withdrawing money is quick and easy when you have a Synchrony Bank High Yield Savings account. There is no minimum balance requirement, no monthly fees and a strong APY. But what makes this account stand out is its convenient withdrawal options.

Synchrony Bank offers an optional ATM card to its savings account holders. You can access your money by ATM, wire transfer (up to three free per statement cycle) or through an electronic transfer to or from accounts you have at other banks.

Though you are limited to six free withdrawals or transfers per statement cycle, Synchrony Bank allows you to conduct unlimited transactions at an ATM. The bank won’t charge an ATM fee, but the ATM provider may. For these charges, Synchrony Bank refunds ATM fees in the U.S. up to $5 per statement cycle.

Still, you should be wary of how much you withdraw from an ATM because the fees, even with a $5 refund, can add up. According to Bankrate, ATM operators charge customers an average fee of $3.14. Just going to the ATM twice in one month would already put you over the refundable amount.

To deposit money into your savings account at Synchrony Bank, you can make an electronic transfer from an external bank account that you’ve linked, do a direct deposit, make a wire transfer, mail a check or use the bank’s mobile app to deposit a check.

Synchrony Bank’s customer service line is available seven days a week by phone or online chat, as well as 24/7 through its app so you can manage your account on the go. Additional customer perks include complimentary identity theft assistance, travel discounts and free webinars.

Best for earning airline miles

Bask Bank Interest Savings Account

Bask Bank and BankDirect are divisions of Texas Capital Bank, Member FDIC.

Annual Percentage Yield (APY)
Minimum balance
Monthly fee
Maximum transactions

Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D
Overdraft fees
Offer checking account?
Offer ATM card?

Pros

Strong APY
No minimum balance
No monthly fees
Ability to earn American Airlines AAdvantage miles instead

Cons

No option to add a checking account
No ATM access

Who’s this for? If you want to maximize your interest-earning potential, the Bask Bank Interest Savings Account may be for you. It offers a very respectable cash APY to all savings account holders.

Here’s the kicker: If you’re a frequent traveler, you can opt to earn American Airlines AAdvantage^® miles back instead. You can use these miles for flights on American Airlines or any of its 20+ partner airlines. So, you can effectively fund your next vacation without any spending.

The accounts offer no monthly fees and no minimum deposits. Just note that the bank may close your account if it remains unfunded for 60 days. Bask Bank is a division of Texas Capital Bank, but operates completely online.

Best for welcome bonus

SoFi Checking and Savings

Information about SoFi Checking and Savings has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication.

Monthly maintenance fee
Minimum deposit to open
Minimum balance
Annual Percentage Yield (APY)

Members with direct deposit earn 3.75% APY on savings and Vaults balances, and 2.50% APY on their checking balances. Members without direct deposit will earn 1.20% APY.
Free ATM network

55,000+ fee-free ATMs within the Allpoint® Network
ATM fee reimbursement
Overdraft fee

No-Fee Overdraft Coverage is available; however, SoFi requires $1,000 of monthly direct deposit inflows to unlock it
Mobile check deposit

Pros

No minimum deposit to open an account
1.80% APY with direct deposit
2-day-early-paycheck automatically when you set up direct deposit
Save your change automatically with Roundups and set savings goals with Vaults
Get up to 15% cash back at local establishments
No foreign transaction fees

Cons

No reimbursement for out-of-network ATM fees
Not a standalone checking or savings account

Who’s this for? The SoFi Checkings and Savings account stands out for offering a valuable welcome bonus after you set up and receive direct deposit payments. You can earn anywhere from $50 to $300, depending on the total of your direct deposits in a 30-day period.

The account also gives you a solid return. The only caveat is that you must opt-in to direct deposit in order to get the maximum interest.

In addition, the account comes with a debit card that has fee-free ATM access through the Allpoint® Network, which has over 55,000 locations across the country. And while paying with a debit card can sometimes lack rewards, you can get up to 15% cash back when you use your card at specific merchants.

And if you’re looking to fully immerse yourself in the fintech/online bank space, SoFi offers a variety of financial products, including student loans, personal loans, mortgage refinancing, auto loans and more.

Best if you want extra help saving

Varo Savings Account

Bank Account Services are provided by Varo Bank, N.A., Member FDIC.

Annual Percentage Yield (APY)

Begin earning 3.00% and qualify to earn 5.00% if you meet requirements
Minimum balance

None; $0.01 to earn savings interest
Monthly fee
Maximum transactions

Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D
Excessive transactions fee
Overdraft fees
Offer checking account?
Offer ATM card?

Yes, if have a Varo Bank Account

Pros

High APY and option to earn even higher
No minimum balance
No monthly fees
Up to 6 free withdrawals or transfers per statement cycle*
ATM access at 55,000 fee-free AllPoint® ATMs with a Varo Bank Account
Offers 2 programs to help automate your savings

Cons

Cash deposits are only available through third-party services, which charge a fee

Who’s this for? Varo is an all-mobile national bank, so for those looking to save and don’t mind banking entirely over the phone or online, the Varo Savings Account makes a good option.

Varo offers a solid APY to all savings account holders, as well as a checking account option. Neither accounts require minimum balances to open and neither charges monthly maintenance fees.

Varo stands out because of its uniquely tiered APY program that encourages you to save more.

For those who want extra help saving, the online bank offers two programs that automatically transfer money from your Varo bank account to your savings account: Save Your Pay, which transfers a percentage of your paycheck into your savings, and Save Your Change, which rounds up your checking account transactions to the nearest dollar and transfers the difference to your savings.

Varo also offers an ATM network with no fees (as well as no penalty for overdrafts up to $50). For any cash deposits, note that Varo only makes these available through third-party services, which may charge a fee.

Find the best savings account for you: Help your money grow by finding the savings account that offers the best rates and features for you.

FAQs

How do online savings accounts work?

While online savings accounts offer some of the highest APYs, it’s also more tedious to access your money than banking at a brick-and-mortar institution, since you’ll usually have to transfer to a checking account to use your money. This is arguably a good thing if you’re trying to grow your emergency savings, as you won’t have easy access to withdraw from the account.

While it may seem nerve-wracking to have limited access to your savings, one of the big reasons to put your emergency fund into a high-yield account is to watch it grow. The higher your account balance is, the more money you will earn in compound interest over time.

Can you lose money in a high-yield savings account?

There’s a near-zero risk of capital loss when you open a savings account at an FDIC-insured bank, as your account is insured for up to $250,000. Interest rates may decrease, but your cash will not. Theoretically, your money would lose value if the inflation rate is higher than your APY, but that’s no different than a traditional savings account. So, opening a high-yield savings account is definitely worth considering.

Do you pay taxes on a high-yield savings account?

Interest accrued on a high-yield savings account is taxed as ordinary income. You must report the interest on your tax return for any account that earned more than $10 in one year.

Can you withdraw money from a high-yield savings account?

By law, consumers can withdraw or transfer cash out of a high-yield savings account up to six times per month without paying any fees. However, some accounts let you make more withdrawals for no additional fee.

What are the cons of a high-yield savings account?

The biggest con of a high-yield savings account is that you’re usually limited to a certain number of withdrawals each month before you’re hit with a fee — just like a traditional savings account. Further, interest rates can fluctuate over time, but that applies to all types of savings accounts. Withdrawing money may also be a slightly slower process as only a few high-yield savings accounts offer ATM cards. Most of the online high-yield savings account banks don’t have physical locations.

Common high-yield terms you should know

Annual Percentage Yield (APY): The amount of interest an account earns in a year.
ACH transfer: When you want to make small and frequent payments electronically (direct deposit, automated bill payments, etc.); typically always free but usually takes at least one business day to complete the transfer.
Wire transfer: When you want to move funds from one bank account to another and have the money be available for use in the same business day; banks usually charge a fee.
Mobile deposit: Instead of going to the bank to deposit a check, you can use your mobile banking app to scan a photo of the check and have the funds immediately deposited into your account. It can sometimes take a day or two for the funds to be accessible.
ATM networks: ATMs can either be in-service or out-of-network, depending on which bank you have. When you make a transaction at an ATM that is outside your bank’s network, then a fee will most likely be applied by both the ATM operator and your bank.

Our methodology

To determine which high-yield savings accounts offer the best return on your money, CNBC Select analyzed dozens of U.S. savings accounts offered by online and brick-and-mortar banks, including large credit unions. We narrowed down our ranking by only considering those savings accounts that offer an above-average APY, no monthly maintenance fees and low (or no) minimum balance requirements.

While the accounts we chose in this article consistently rank as having some of the highest APY rates, we also compared each savings account on a range of features, including ease of use and account accessibility, as well as factors such as insurance policies and customer reviews when available. We also considered users’ deposit options and each account’s compound frequency.

All of the accounts included on this list are FDIC-insured up to $250,000. Note that the rates and fee structures for high-yield savings accounts are not guaranteed forever; they are subject to change without notice and they often fluctuate in accordance with the Fed rate. Your earnings depend on any associated fees and the balance you have in your high-yield savings account. To open an account, most banks and institutions require a deposit of new money, meaning you can’t transfer the money you already had in an account at that bank.

Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.

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February 28, 2023

Sectors that lead you into a market peak rarely lead you out of a trough, says SoFi’s Liz Young

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February 28, 2023

Goldman has delivered better dividends per share than competitors, says RBC’s Gerard Cassidy

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February 28, 2023

Goldman Sachs’ David Solomon is distracted, says Dartmouth Professor Paul Argenti

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February 28, 2023

It’ll take actions over words for Goldman to reach its financial targets, says Wells Fargo’s Mike Mayo

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Mike Mayo, Wells Fargo senior banking analyst, joins the ‘Halftime Report’ to discuss Goldman’s financial target plan, Goldman’s successful legacy business, and lack of resolution about Goldman Sachs consumer banking business.

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February 28, 2023

Watch CNBC’s full interview with Mike Mayo, Wells Fargo senior banking analyst

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Mike Mayo, Wells Fargo senior banking analyst, joins the ‘Halftime Report’ to discuss Goldman’s financial target plan, the company’s highly successful legacy business and lack of resolution about Goldman’s consumer banking business.

05:54

Tue, Feb 28 202312:39 PM EST

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February 28, 2023

Goldman CEO says asset management is the new growth engine, will learn from bungled consumer effort

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Goldman Sachs CEO David Solomon said Tuesday that asset management and wealth management would be the growth engine for the bank after his efforts in consumer finance went awry.

“The real story of opportunity for growth for us in the coming years is around asset management and wealth management,” Solomon told CNBC’s Andrew Ross Sorkin. Solomon added that Goldman was already the fifth biggest active asset manager in the world.

“There’s real opportunity across the firm for us to continue to make the firm more durable,” Solomon said.

He also acknowledged that the company didn’t “execute well” on parts of his consumer push, but added that management would reflect and learn from the episode.

Goldman was scheduled to hold its second-ever investor day later Tuesday. The firm released a slideshow for the event online, in which it gave updated targets for growth in its asset and wealth management division and a 2025 breakeven target for its money-losing platform solutions division.

It also reiterated its target for 15% to 17% return on tangible equity, a key metric tracked by bank investors.

This story is developing. Please check back for updates.

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February 28, 2023

Credit Suisse ‘seriously breached’ obligations in Greensill case, Swiss regulator says

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The logo of Credit Suisse Group in Davos, Switzerland, on Monday, Jan. 16, 2023.

Bloomberg | Bloomberg | Getty Images

Credit Suisse “seriously breached its supervisory obligations” in the context of its business relationship with financier Lex Greensill and his companies, Swiss regulator FINMA concluded Tuesday.

The embattled Swiss lender’s exposure to the London-based Greensill Capital resulted in massive reimbursements to investors after the supply chain finance firm collapsed in early 2021.

“In its proceedings, FINMA concluded that Credit Suisse Group seriously breached its supervisory duty to adequately identify, limit and monitor risks in the context of the business relationship with Lex Greensill over a period of years,” the regulator said, adding that it also found “serious deficiencies in the bank’s organisational structures” during the period under investigation.

“Furthermore, it did not sufficiently fulfil its supervisory duties as an asset manager. FINMA thus concludes that there has been a serious breach of Swiss supervisory law.”

Credit Suisse CEO Ulrich Körner welcomed the conclusion of the FINMA investigation in a statement Tuesday.

“This marks an important step towards the final resolution of the SCFF issue. FINMA’s review has reinforced many of the findings of the Board-initiated independent review and underlines the importance of the actions we have taken in recent years to strengthen our Risk and Compliance culture. We also continue to focus on maximizing recovery for fund investors,” he said.

In March 2021, Credit Suisse closed four supply chain finance funds at short notice related to Greensill companies. The funds were distributed to qualified investors with client documentation indicating low risk, and client exposure sat at around $10 billion at the time of the closure.

The Greensill saga was a key reason behind Credit Suisse’s massive overhaul of its risk management and compliance operations, alongside the collapse of Archegos Capital.

Credit Suisse highlighted that, since March 2021, it has undergone senior management changes, implemented disciplinary measures and a new global accountability model, increased governance oversight and strengthened controls by moving risk oversight into a dedicated divisional risk management function.

FINMA announced Tuesday that it has ordered remedial measures and opened four enforcement proceedings against former Credit Suisse managers.

“In future, the bank will have to periodically review at executive board level the most important business relationships (around 500) in particular for counterparty risks,” the regulator said.

“In addition, the bank is required to record the responsibilities of its approximately 600 highest-ranking employees in a responsibility document.”

Credit Suisse noted that all of the requirements identified by the regulator “are being addressed through the organizational measures already underway.”

“FINMA has not ordered any confiscation of profits in connection with the proceedings and the implementation of the additional measures is not expected to result in significant costs for Credit Suisse,” the bank added.

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February 27, 2023

Banks in Japan are still a ‘very, very good’ investment, says financial services firm

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Street Signs Asia

Jesper Koll of Monex Group says the “big megatrend” in Japan is to “make Japan banks strong again,” and discusses why he likes MUFG Bank.

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February 27, 2023

UBS’s Brennan Hawken previews what to expect from Goldman Sachs’ Investor Day

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Brennan Hawken, UBS analyst, joins 'Closing Bell: Overtime' to discuss Goldman Sachs' investor day.

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February 27, 2023

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