Best Savings Account Interest Rates in New Jersey: June 2024 (2024)

New Jerseyans searching for a place to park their savings have several routes to consider. You may want to join a national bank for convenient access, an online bank for the best financial benefits or a regional bank or credit union for community banking with a personal touch. If your top priority is finding the best savings interest rates in New Jersey, we’ve combed through the financial institutions across these categories to learn where your money will work the hardest for you.

Read on to discover the best high-yield savings rates in New Jersey and what fees and requirements to expect with each account.

Vault’s Viewpoint: Overview of the Best Savings Rates in New Jersey

Most of the best high-yield savings accounts are at online banks, making them accessible to savers in New Jersey and across the rest of the U.S. However, if you value the ability to bank in person, you can still find some of the best savings interest rates in New Jersey at institutions with a brick-and-mortar presence.

Best Overall

Forbright Bank Growth Savings

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Why We Chose It

Not only does Forbright Bank boast the highest APY on our list at 5.30%, but it also comes with no monthly fees or account minimums. Plus, its commitment to sustainable finance practices, clean energy investments and community partnerships will appeal to savers with similar values. This is a digital-first bank with no New Jersey locations.

Pros

• Exceptional 5.30% APY with no account minimums, maximums or other requirements
• Signatory bank to the United Nations Principles for Responsible Banking
• Unlimited transfers to other accounts with 24/7 access through the website or app

Cons

• No branches in New Jersey
• Does not support ATM withdrawals
• Automatically closes accounts with a zero balance for 21 days

Best for ATM Access

UFB High Yield Savings

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Why We Chose It

Most savings accounts don’t allow direct access to ATMs unless you also have a connected checking account. But UFB Direct, an online-only division of Axos Bank, provides its high-yield savings account customers with a complimentary ATM card with free cash withdrawals (and deposits at participating machines) from over 90,000 ATMs. And if you value the ability to talk to a real person when you’re having an account issue, UFB is one of the few options on the list with 24/7 customer support.

Pros

• High interest rate at 5.25% APY, with no required minimums
• Included ATM card and access to a large network for cash withdrawals and deposits
• 24/7 customer phone support

Cons

• Online-only bank with no in-person bank access
• $5 monthly fee unless you opt for e-statements

Best for Balances Over $1,000

Upgrade Premier Savings

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Why We Chose It

As long as you aren’t deterred by the $1,000 minimum, the 5.21% APY on Upgrade’s Premier Savings account is one of the best savings interest rates in New Jersey. Upgrade is a financial technology company rather than a bank itself, but it partners with Cross River Bank—a New Jersey commercial bank—to provide FDIC-insured checking and savings accounts.

See Also

BMO Alto Review: Great Rates with Low Fees

Pros

• Competitive 5.21% APY on balances over $1,000
• No monthly account fees
• Well-rated mobile app

Cons

• Does not earn interest on days when your closing balance is under $1,000
• Online account with no in-person banking access
• Cannot add a joint account holder

Best for Unlimited Account Activity

BMO Alto Online Savings Account

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Why We Chose It

Federal guidelines used to limit savings account withdrawals to six per month, and although this rule was removed in 2020, many banks still use it. Online banking platform BMO Alto doesn’t—you can make as many transfers from this account as you want, which is helpful for savers who frequently move money around. A great rate, zero fees and 24/7 customer support round out the account perks.

Pros

• Attractive 5.10% APY on all balances
• No monthly service fee or minimum deposit requirements
• No limits on transfers and withdrawals

Cons

• Online platform with no physical bank branches
• BMO Alto doesn’t have a mobile app
• Accounts with a $0 balance are subject to closure

Best for Branch Access

Capital One 360 Performance Savings

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Why We Chose It

While you’ll almost always find the best savings interest rates in New Jersey at online-only banks, Capital One is one of the few banks that strikes a balance with its accessibility options. It’s still a digital-first platform, but you can find 15+ brick-and-mortar branches in the state, as well as ATMs and retail locations where you can easily deposit or withdraw cash if you have a connected Capital One 360 checking account.

Pros

• 4.25% APY is a higher rate than what most New Jersey banks offer
• Wide network of ATMs and add-cash-in-store retail locations in New Jersey
• Can create multiple savings accounts to save for specific goals

Cons

• Interest rate is a full percentage point lower than the highest-yield online bank
• Checking account required to access ATMs or make cash deposits at non-branch locations

Best for Community Banking

Affinity Federal Credit Union SmartStart Savings

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Why We Chose It

Affinity Federal Credit Union is the largest credit union headquartered in New Jersey. If you prefer to use credit unions vs. banks for their member-first focus, Affinity is a solid option to consider. However, while the interest rate is higher than at many competing New Jersey credit unions, weigh its limits if you’re looking to store higher balances there.

Pros

• Pays 4.00% APY on the first $10,000
• Well-rated mobile app with check deposit, bill pay and more
• Physical branches and ATMs across the New Jersey, New York and Connecticut tri-state area

Cons

• Rates drop to 1.00% APY on balances over $10,000
• Highest interest rate is still lower than savings accounts at online banks
• $2 monthly fee if you opt for paper statements

How Much Can You Earn With a Savings Account in New Jersey?

You work hard for your money, and high-yield savings accounts are one of the easiest ways to make your money work for you too—especially once you witness the power of compound interest in action. First your contributions earn interest, and then that interest earns interest, which is when you’ll begin to see exponential growth in your account balances.

In the table below, see how much you’d earn from each listed savings account in your first year alone, based on a balance of $10,000.

How To Open a Savings Account in New Jersey

1. Choose your account. You might pick an account based solely on which institutions have the best high-yield savings rates in New Jersey, or you might factor in other personal priorities. Consider if you’d like to open the savings account alone or with a companion checking account, and research the relevant terms and conditions.
2. Decide whether you want to open it online, over the phone or in person (if applicable). Usually, an online application is the simplest method, and it may be your only option at a digital-first bank. You can open a savings account online in as little as five minutes.
3. Gather the required information. This can vary based on the bank, but normally you’ll need to provide your Social Security number, basic employment and income information, a government-issued ID and possibly a secondary proof of address.
4. Have your funding source ready. The easiest way to fund your new account is by making a transfer from an existing checking account, so have your routing and account numbers handy. If you’re opening an account in person, you may also be able to bring cash or a physical check.

Tips for Choosing the Best Savings Account for You in New Jersey

1. Choose High-Yield Options When Possible

The average rate for savings accounts in the U.S. is below 1.00% APY, and many of the biggest banks pay next to no interest on savings balances. Opening an account with the best savings interest rates in New Jersey will allow your wealth to grow faster as interest compounds over the years.

2. Decide if You Need Brick-and-Mortar Access

If you choose an online bank, you’ll have access to the best high-yield savings rates in New Jersey and across the country. However, you may prefer banking in person or need branch access for tasks like making cash deposits. One potential workaround is to maintain a checking account at a local bank and then make transfers to and from your high-yield savings account at a different institution.

3. Research Account Fees and Requirements

These days, you can find a lot of banks featuring zero monthly service fees—either by default or with simple waiver requirements. Choosing fee-free accounts allows you to maximize your earnings, so find out whether anything is required to keep it free (minimum balances, debit card purchases, direct deposits, etc.). Then, read the terms and conditions to learn about any other possible charges, like overdraft fees, inactivity fees, check ordering fees, etc.

4. Weigh Your Personal Priorities

Beyond the pure numbers and logistical considerations, what else do you value in an account or financial institution? If you’re deeply involved in your community, you may be willing to trade a few percentage points of interest for the personal feel of a local bank or credit union. Savers with a passion for sustainability might gravitate toward banks that fund green initiatives. Tech-savvy customers could prioritize banks with great mobile apps and cutting-edge features. Ideally, you’ll be able to find an account that balances all your major needs and wants.

Alternatives to a Savings Account

Certificates of Deposit

Look into certificates of deposit (or CDs) if you’re comfortable sacrificing the convenient access of a savings account in exchange for a guaranteed rate over a specified period. With CDs, you commit your money for anywhere from a few months to several years. Then, you’ll earn the CD’s advertised interest rate for the full duration of that term, even if interest rates drop on other savings products in the meantime. The main downside is that if you need your money before the CD matures, you’ll usually face a steep penalty for early withdrawals. Explore this month’s best CD rates here.

Money Market Accounts

Savings accounts and money market accounts bear a lot of similarities. Money market accounts may be a better choice if you’re looking for a hybrid of checking and savings features since they often come with check-writing privileges or even debit cards. Pay attention to minimum balance requirements and monthly fees as you compare the best money market accounts.

Series I Bonds

Series I bonds are a popular type of U.S. savings bond you can buy online through TreasuryDirect. Their interest rate is tied to inflation and changes every six months, which gives them slightly more stability than a savings account where rates are subject to change at any time. However, they come with more withdrawal restrictions, and you can only purchase up to $10,000 worth of I bonds per year. You can cash your bonds out with a penalty after one year (penalty-free after five years) or hold them for up to 30 years. Learn more about I bonds and view current rates here.