Axos Bank's high yield savings account pays a competitive rate, but the best choice depends on your balance size and how you use the account
Axos Bank (formerly AxosBank.com) offers a high yield savings account with an APY that tracks near the top of the market. As of now, the rate sits in the 4% to 5% range, though this changes as the Federal Reserve adjusts rates. The account has no monthly maintenance fee, no minimum balance requirement, and no cap on how much interest you can earn. Deposits are FDIC-insured up to $250,000.
Whether Axos is the right choice for you depends on three things: how much money you're keeping in savings, how often you move money in and out, and whether you value a physical branch or prefer online-only banking. Axos is a fully online bank with no branches, so you cannot walk in to deposit cash or speak to someone face-to-face. If you need that option, a different bank may suit you better.
Key Takeaways
- Axos's APY is competitive with other online banks but changes when the Federal Reserve moves rates, so the current rate may be higher or lower than when you opened the account.
- There is no minimum balance, no monthly fee, and no limit on interest earnings, which makes Axos workable for any savings amount.
- Axos is online-only, so you cannot deposit cash in person or visit a branch to resolve account issues face-to-face.
- You can move money between Axos and other banks via ACH transfer, which typically takes one to three business days.
- Axos also offers checking accounts and money market accounts, so you can keep multiple account types in one place if that appeals to you.
How the APY compares to other online banks
Axos's rate is usually within 0.1% to 0.3% of the highest rates offered by competitors like Marcus, Ally, and American Express Personal Savings. When rates are moving, Axos sometimes leads and sometimes lags by a small margin. The difference between a 4.5% APY and a 4.7% APY on a $10,000 balance is about $20 per year, so the gap matters more if you have a large balance or plan to keep the money there for years.
The rate you see advertised is the rate you get—there are no tiers or bonus rates that apply only to new customers. Once you open the account, your rate moves with Axos's published rate for all customers. You do not have to do anything to keep earning the current rate.
What happens when you need to move money
Axos lets you transfer money to and from other banks using ACH (Automated Clearing House) transfers. These transfers are free and typically take one to three business days. You can also set up automatic transfers on a schedule—for example, moving money from checking to savings every payday—and Axos will not charge you for this.
You cannot deposit cash directly into an Axos savings account because there are no branches. If you receive cash and want to deposit it, you would need to deposit it at another bank first, then transfer it to Axos. Some people use a local bank's ATM to deposit cash into a checking account, then move the money to Axos via ACH.
Fees and account rules
Axos charges no monthly maintenance fee, no overdraft fee (because savings accounts do not overdraft), and no fee for ACH transfers. There is no minimum balance to open or maintain the account. You can withdraw money as often as you want without penalty, though federal rules once limited savings withdrawals to six per month—those rules were suspended, but some banks still enforce limits. Axos does not.
If your account sits inactive for a long time, Axos may close it, though the bank will contact you first. This is standard practice across the industry and is not specific to Axos.
Security and FDIC protection
Axos is FDIC-insured, which means your deposits up to $250,000 are protected if the bank fails. This protection applies to each account type separately, so if you have both a savings account and a checking account at Axos, each is insured up to $250,000. If you have more than $250,000 to save, you would need to split it across multiple banks or multiple account types to stay fully protected.
Axos uses standard online security: encryption for data in transit, two-factor authentication for login, and fraud monitoring. If someone makes an unauthorized transfer from your account, you can report it and Axos will investigate. The bank's fraud liability policy is similar to other banks—you are not responsible for unauthorized transfers if you report them promptly.
When Axos makes sense and when it does not
Axos is a good fit if you have $1,000 or more to save, do not need to deposit cash in person, and want a straightforward account with no fees or surprises. The rate is competitive, and the lack of minimums and fees means you can keep money there without worrying about account maintenance.
Axos is less ideal if you frequently deposit cash, need to speak to someone by phone or in person about account issues, or prefer to keep all your banking at one institution that has both online and physical branches. If you already bank at a credit union or regional bank with branches, moving savings to Axos means managing accounts at two different places.
How to open an account and what to expect
You open an Axos savings account online by providing your name, address, Social Security number, and initial funding source. Axos will verify your identity and may ask for additional information. The account typically opens within one business day, and you can start transferring money in immediately.
Your first transfer from another bank may take longer than usual—sometimes up to five business days—while Axos verifies the account. After that, transfers are faster. You can also fund the account by having your employer or another source send money directly to your Axos account number and routing number.
Frequently Asked Questions
Can I use Axos if I do not have a checking account?
Yes. You can open a savings account at Axos without a checking account. You will need a way to fund it initially—usually a transfer from another bank, a wire transfer, or a direct deposit from your employer. After that, you can move money in and out via ACH transfers.
What happens to my interest if the Federal Reserve cuts rates?
Your APY will drop when Axos lowers its rate. The bank is not required to notify you in advance, but the new rate applies to all new interest earned going forward. You can check your current rate anytime by logging into your account or visiting Axos's website.
Can I set up automatic transfers to save money regularly?
Yes. Axos lets you schedule recurring transfers from your checking account (at Axos or another bank) to your Axos savings account. These are free and happen on the schedule you choose—weekly, biweekly, monthly, or any other interval.
Is my money stuck in Axos if I want to switch banks?
No. You can transfer all your money out to another bank anytime using a free ACH transfer, which takes one to three business days. There is no penalty for closing the account or moving your balance elsewhere.
What if I have more than $250,000 to save?
FDIC insurance covers only $250,000 per account type at one bank. If you have more, you can open accounts at multiple banks, each insured separately, or look into money market funds or other investments that are not bank deposits. Talk to a financial advisor about options for larger amounts.