4 Best Savings Accounts for Gen Z in 2024

Martin Dasko
Rawpixel.com / Shutterstock.com
Rawpixel.com / Shutterstock.com

As important as it is to focus on making more money and cutting back on your spending, you should also do your best to find the best place to store your funds. This is why we will review the best savings accounts for young people who want to feel confident knowing that their funds are growing as inflation persists.

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What are the best savings accounts for Gen Z? We will review the best options and what to consider.

Gen Z Savings Account Considerations

Before we look at the best savings accounts for Gen Z in 2024, we should take a moment to look at banking account considerations. We often hear about millennials when it comes to investing and saving money, but we can’t ignore those in the Gen Z demographic. These are the people born roughly between 1996 and 2010. They had a different upbringing from millennials or Gen X since they likely never experienced life without internet access.

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Here are a few savings points to think about for Gen Z.

There Are No Technological Barriers

“I tend to recommend online, high-yield savings accounts, preferably with a bucket or vault system for savings,” said Jay Zigmont, Ph.D., CFP, founder of Childfree Wealth. “Online banks tend to offer a higher savings rate as they don’t have to pay for the brick-and-mortar storefront. For Gen Z, electronic money management is second nature, so moving money in and out is no problem.”

It’s worth pointing out that younger people are likely to be comfortable using technology and mobile apps, so they may not even worry about a bank having any brick-and-mortar locations nearby.

You Need Different Accounts for Different Goals

“I would generally recommend any Gen Zers stick with a high-yield savings account for their longer-term savings,” said David Kemmerer, CEO of CoinLedger. “This could mean an emergency fund or even savings specifically toward long-term goals like a home or new car.”

Young people could benefit from opening a savings account connected to their checking or investing app. This will make it easier to transfer funds between accounts and save up for various goals.

Kemmerer elaborated: “With a high-yield savings account, you’re going to want to avoid touching that money as much as possible to allow it to accrue compound interest over time and get the most out of your investment. For Gen Z, I would probably then recommend pairing this with a regular savings account for shorter-term, more fluid savings. That’s because these types of savings accounts will tend to have fewer restrictions in terms of withdrawal limits, which allows you to use this money with more flexibility.”

It’s Easier Than Ever To Find the Right Account

“Gen Z, being tech savvy, is well equipped to research and compare the offerings of these banks, making it a smart choice for them to explore these options,” said Avis Berg, chief investment officer at Berg Capital & Co.

The good news is that you can compare multiple savings accounts within a few clicks and start making money without even leaving your couch.

“Online savings accounts have become increasingly competitive, with banks like American Express, Goldman Sachs, and Ally Bank offering solid interest rates and easy access to funds,” Berg said.

Ally Bank

Ally Bank is recommended for younger people because this savings account offers a 4.35% APY and unique tools that you won’t find anywhere else. It also doesn’t have a monthly maintenance fee or minimum requirement. You can connect your checking account to simplify your finances.

Here are some of the helpful tools worth mentioning with an Ally Bank savings account:

  • Recurring transfers: You can automate your finances so you can set money aside from every paycheck and forget about it.

  • Surprise savings: Ally will review your linked checking account to find opportunities for you to save.

  • Roundups: The banking app tracks your spending and rounds up transactions to the nearest dollar. When this amount reaches $5, funds are automatically transferred to your savings.

  • 24/7 support: There’s a real person available at any time of the day for you to contact with questions.

Ally Bank was also recommended by Zigmont, who said, “Ally offers a high-yield savings account with ‘buckets.’ In the Ally system, you can have a bucket for your emergency fund, travel, house down payment, car or whatever your goals are. The bonus is that all of your money is in one account, but you can set goals and measure your progress without it all being smushed together.”

American Express Savings

The American Express Savings account has a 4.35% APY, no minimum balance requirements and 24/7 customer support. With over 170 years of experience, you leave your funds with a highly reputable company. You can also connect other accounts and open up a CD if you want to diversify your investments.

The website offers helpful tools, including visual graphics that show you how much you could earn with the savings account. This feature is beneficial for younger investors who want to see tangible progress.

Goldman Sachs

Marcus by Goldman Sachs is a savings account with one of the most competitive rates at 4.5% APY. With no fees or minimum deposits, you can link other accounts and instantly transfer your funds to start earning a higher interest rate.

This account is an excellent option for young investors because you have 24/7 access to a customer service center and financial expertise from Goldman Sachs.

Discover Bank

With a 4.35% APY and no minimum deposit required, the Discover Bank savings account is worth considering. With no monthly fee, your funds can grow while you focus on finding ways to earn more money. This account is ideal for those in Gen Z who want to get the most out of their funds.

Final Thought

“The key takeaway is that Gen Z has the advantage of digital tools to find the savings account that suits their needs and goals the best,” Berg said.

With more options than ever, it’s easier for a young person to find the right savings account for their funds to ensure that their money works for them. As always, we suggest that you take the time to review the various accounts available to make an informed decision.

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This article originally appeared on GOBankingRates.com: 4 Best Savings Accounts for Gen Z in 2024

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