Earn More Than 5% Interest On Your Money: The Best High-Yield Savings Accounts Of 2024
Investing your money in a high-yield savings account can help you save more quickly for big expenses like a down payment on a house or emergency fund accumulation.
In contrast to conventional savings accounts, high-yield savings accounts provide you with a greater interest rate, and compound interest, which allows you to earn interest on interest, accelerates the growth of your funds. The faster your money grows and the greater the annual percentage yield (APY), the more you get back compared to a regular savings account.
The Federal Deposit Insurance Corporation (FDIC) reports that the average annual percentage yield (APY) on savings accounts nationwide is a pitiful 0.42%. That’s more than twelve times less than the highest-yield savings accounts give, which are between five and six percent APY. Additionally, banks are responding to the Federal Reserve’s ongoing interest rate increases by offering their clients larger annual percentage yields, or APYs.
CNBC Select examined and contrasted dozens of high-yield savings accounts from online and physical institutions, including sizable credit unions, to find the top ones overall. We discovered that while the majority of online banks lack physical branch facilities, they generally provide greater overall advantages, lower costs, and higher APYs than national brick-and-mortar banks.
We rated our top nine accounts based on the annual percentage yield (APY), monthly fees, accessibility, convenience of usage, and minimum balance restrictions. The chosen savings accounts have no monthly maintenance fees, no minimum balance requirements, no FDIC insurance, and an above-average annual percentage yield (APY) for all users, regardless of account size. (For additional details on how we select the top high-yield savings accounts, view our methodology.)
Best high-yield savings accounts
- Best overall: LendingClub High-Yield Savings
- Runner-up: UFB Secure Savings
- Best for earning a high APY: Western Alliance Bank Savings Account
- Best for no fees: Marcus by Goldman Sachs High Yield Online Savings
- Best for checking/savings combo: Ally Savings Account
- Best for easy access to your cash: Synchrony Bank High Yield Savings
- Best for earning airline miles: Bask Bank Mileage Savings Account
- Best for the welcome bonus: SoFi Checking and Savings
- Best if you want extra help saving: Varo Savings Account
Compare offers to find the best savings account
Best overall
LendingClub High-Yield Savings
Customers of LendingClub receive a free ATM card and are never charged an ATM fee, in contrast to many savings accounts. You may easily access your savings account and take out money whenever you’d like thanks to this. Additionally, you can send money to friends and family, pay bills, and make both internal and external transactions with your funds.
You have a few options for funding your LendingClub savings account: you can use the mobile app, ATMs, direct deposits, wire transfers, electronic transfers from other banks, and direct deposits.
Runner-up
UFB Secure Savings
For those who wish to have fast access to their money and receive a high return, the UFB Secure Savings is the best option.
The account has no minimum deposit requirements, no monthly fees, and limitless transfer capabilities. With a $1 deposit or a $1,000 deposit, you will receive the same substantial return.
UFB Direct is an online-only bank and a branch of Axos Bank, just like the other banks on this list. Customers do receive a free ATM card even though there are no physical locations and no option to add a bank account.
Best for earning a high APY
Western Alliance Bank Savings Account
The Western Alliance Bank Savings Account is intended for individuals who prioritize optimizing their financial gains. It offers one of the highest interest rates on the market right now, at 5.20% APY.
Western Alliance doesn’t impose monthly fees and just requires a $1 minimum deposit to create an account. Furthermore, delivering an APY this high has no upper limit.
Best for no fees
Marcus by Goldman Sachs High Yield Online Savings
Marcus from Goldman Sachs High Yield Online Savings provides simple mobile access, no minimum deposit requirements, and no fees of any kind. This is the easiest savings account to use if all you want to do is increase your money without any restrictions.
The Marcus account is distinguished further by its user-friendly mobile banking app, which lets you track your savings objectives, schedule recurring deposits, and view the interest you’ve earned so far this year. Live phone and online chat help is available around the clock at the bank’s U.S. contact center.
A free wire transfer to a connected account at another bank or an ACH withdrawal from the Marcus savings account can be made by phone or online by account holders. A withdrawal request via mail-order check is also available.
You have several options for adding money to your account: wire transfers, checks, direct deposits, and transfers of money. Linking other bank accounts to Marcus for inbound and outbound transfers is free of charge, however be aware that your other bank might
Best for checking/savings combo
Ally Bank Savings Account
If you want to handle all of your banking in one location, Ally is a great option. Even though the Ally Savings Account is a solid high-yield account on its own, owners who also have an Ally Bank Spending Account (Ally’s checking product) can take advantage of even additional benefits.
An Ally bank or savings account not only offers a competitive annual percentage rate (APY), but it also waives monthly maintenance costs and provides access to over 43,000 free Allpoint® ATMs, making it simple to take out cash when needed. You won’t be able to use a debit card if all you have is an online savings account.
Ally does not charge fees for using an out-of-network ATM, and if the ATM provider does, Ally will reimburse those costs up to a monthly maximum of $10.
Not every online bank provides the option of a checking account. If the bank where you save your money doesn’t provide a checking account, you’ll need to move your money between institutions, which could take a few days. Account holders with Ally are legally permitted to make online withdrawals or transfers up to six times per month without incurring fees. Ally then charges $10 for each transfer. In addition, you can request a mailed check over the phone from the bank; this does not count against your six transactions.
As is common with many online banks, you are unable to deposit cash into your Ally savings account; however, you can use the mobile app’s eCheck Deposit feature to remotely deposit checks. Up to ten distinct “buckets” can be created within a single savings account to help account holders arrange their savings objectives. You may set up a fund specifically for “Future Vacation” and another for “Emergency Savings,” for instance.
Another reason why Ally is a customer favorite is its user-friendly mobile app and round-the-clock live customer support that can be accessed via phone, online chat, or the Ally app.
Best for easy access to your cash
Synchrony Bank High Yield Savings
Taking money out of your Synchrony Bank High Yield Savings account is simple and quick. There is a robust APY, no monthly fees, and no minimum balance requirement. However, the account’s practical withdrawal choices are what set it apart.
Savings account customers at Synchrony Bank have the opportunity to get an ATM card. You get three free options for wire transfers every statement cycle, ATM access, and electronic transfers to and from other banks’ accounts.
Synchrony Bank permits you to do an unlimited number of transactions at an ATM, even though you are only permitted to make six complimentary withdrawals or transfers per statement cycle. The ATM provider may levy a fee; the bank will not. Synchrony Bank reimburses up to $5 in ATM fees per statement cycle for these charges in the United States.
Even with a $5 reimbursement, you should still exercise caution when withdrawing large amounts from ATMs because the costs might mount up. Bankrate reports that the average cost charged by ATM operators to users is $3.14. You would exceed the refundable amount if you used the ATM twice in a single month.
You have several options for funding your Synchrony Bank savings account: you can use the bank’s mobile app, mail a check, perform a direct deposit, make a wire transfer, or make an electronic transfer from an external bank account that you’ve linked.
You may manage your account on the go using Synchrony Bank’s app, which is accessible 24/7, or via phone or online chat seven days a week. Free webinars, travel discounts, and identity theft aid are among the other benefits offered to customers.
Best for earning airline miles
Bask Mileage Savings Account
Think about Bask Bank if you wish to optimize your possibilities for generating interest. All holders of savings accounts are eligible for the very competitive 5.00% APY offered by the Bask Bank Interest Savings Account.
The best part is that if you travel frequently, you can choose to receive American Airlines AAdvantage® miles in return by opening a Bask Bank Mileage Savings Account. You will receive 2.5 miles with the mileage savings account for every $1 you save each year. These miles can be redeemed for travel on American carriers or any of its more than 20 partner carriers. Thus, you won’t have to spend any money to pay for your upcoming trip.
Both minimum deposits and monthly fees are waived for these accounts. Please be aware that if your account is not funded after 15 business days, the bank may close it. Despite being entirely online, Bask Bank is a branch of Texas Capital Bank.
Best for the welcome bonus
SoFi Checking and Savings
One notable feature of the SoFi Checkings and Savings account is its generous welcome bonus, which is awarded once you sign up and start receiving direct deposit payments. With direct deposit, you can make up to $300.
Also, the account offers a healthy return. The only catch is that to receive the highest interest rate of 4.60% APY*, you have to choose to have direct deposit enabled. In the absence of direct deposit, the APY drops to 1.20%.
The account also includes a debit card that may be used at any Allpoint® Network ATM, which has over 55,000 locations nationwide, without paying a fee. Even while using a debit card to make purchases occasionally may not yield rewards, using your card at certain merchants can earn you up to 15% in cash back.
SoFi provides a range of financial products, such as auto loans, student loans, personal loans, mortgage refinancing, and more, if you want to fully immerse yourself in the fintech/online bank environment.
Best if you want extra help saving
Varo Savings Account
The Varo Savings Account is a wonderful choice for people who want to save money and don’t mind doing all of their banking online or over the phone because Varo is an all-mobile national bank.
All savings account customers at Varo have access to a 3.00% APY in addition to the choice of a checking account. Neither account has a monthly maintenance fee nor a minimum balance requirement to open.
Varo distinguishes itself with its exclusive tiered APY model, which motivates you to save more. Regardless of your account balance, you can benefit from a 3.00% APY, but if you achieve specific monthly conditions, you can earn up to 5.00% APY: In a single month, account holders are required to use their Varo Visa® Debit Card for a minimum of five transactions, have direct deposits of $1,000 or more each month, and maintain a $5,000 maximum amount in their savings account (there is no minimum balance).
The online bank offers two automatic transfer programs, Save Your Pay and Save Your Change, which rounds up your checking account transactions to the nearest dollar and transfers the difference to your savings, for those who would like additional assistance with saving. Save Your Pay transfers a portion of your paycheck into your savings account.
Additionally, Varo provides a fee-free ATM network (with no penalties for overdrafts up to $50). Keep in mind that Varo only offers cash deposits through third-party providers, some of which may have a cost.
What is a high-yield savings account?
Similar to a regular savings account, a high-yield savings account pays a higher annual percentage rate (APY) on deposits. As money sits in your account, it increases more quickly with a greater APY. But take note that these available interest rates are changeable, indicating that they could change at any time.
In addition to earning a higher return than traditional savings, your money in a high-yield savings account is still accessible to you when you need it, just like it would be in a regular savings account. The FDIC offers federal insurance on funds in high-yield savings accounts, protecting deposits up to $250,000 in the event of a bank failure.
Common high-yield terms you should know
When you wish to make frequent, minor electronic payments (direct deposit, automated bill payments, etc.); the transfer usually takes a minimum of one business day to complete, but it is almost always free.
Banks typically charge a fee if you wish to transfer money between accounts and have it accessible for use on the same business day.
You may use your mobile banking app to take a snapshot of a check and have the money instantly deposited into your account, saving you the trip to the bank. The money may not always be available for use for a day or two.
ATMs can be found in or out-of-network, contingent upon your bank. Both the ATM operator and your bank will most likely charge you a fee when you use an ATM that is not part of their network.
What is the difference between a high-yield savings account and a traditional savings account?
High-yield savings accounts and standard savings accounts differ primarily in that the former offers greater interest rates, which enable your money to grow more quickly. Additionally, high-yield savings accounts are typically provided by online banks without actual branch facilities, in contrast to standard savings accounts.
Why are most high-yield savings accounts online?
Since high-yield savings accounts are entirely online, they naturally provide larger returns. They take this action because of the financial benefits they receive from not having to cover overhead expenses that are typically associated with running physical branches, such as the cost of real estate and hiring more staff for those locations.
How do online savings accounts work?
Even while online savings accounts have some of the greatest annual percentage yields (APYs), accessing your money is more time-consuming than it is at a physical bank because you typically need to transfer funds to a checking account to use them. Given that you won’t have quick access to withdraw money from the account, this may be a positive thing if you’re seeking to increase your emergency reserves.
Putting your emergency fund in a high-yield account is a great way to watch it grow, even though it may be unsettling to have less access to your funds. Over time, compound interest will increase in proportion to the amount in your account.
How often do savings rates change?
High-yield savings account interest rates are variable and subject to change at any time. Savings rates often fluctuate every few months following a Fed committee meeting to modify the federal funds rate.
Are high-yield savings rates increasing?
Indeed, rates of high-yield savings are rising. In an attempt to control inflation, the Fed has raised its benchmark rate, which has resulted in rate increases throughout 2023. The APYs on high-yield savings accounts, which are currently 5% to even 6% APY, show this. Furthermore, interest rates are currently expected to rise further during the remainder of the year.
Can you lose money in a high-yield savings account?
Opening a savings account with a bank that is FDIC-insured has almost no risk of capital loss because the account is guaranteed up to $250,000. Your cash will not decrease even if interest rates do. In a perfect world, your money would lose value if the rate of inflation exceeded your annual percentage yield (APY), but that would happen with any savings account. Opening a high-yield savings account is therefore secure and worthwhile.
Can you withdraw money from a high-yield savings account?
A high-yield savings account allows you to take money out just like a regular savings account.
How often can I take money out of a high-yield savings account?
A high-yield savings account’s monthly limit on the number of times customers could withdraw or transfer money without incurring penalties was formerly six. But since the pandemic, this regulation has been lifted, and banks are free to determine how frequently savers can take withdrawals. While some banks allow you to make unlimited free withdrawals, the majority of banks have adhered to this six-times-per-month limitation.
Do you pay taxes on a high-yield savings account?
High-yield savings account interest is subject to ordinary income taxation. For any account that earned more than $10 in a single year, you have to include the interest on your tax return.
What are the cons of a high-yield savings account?
The largest drawback of high-yield savings accounts is that, despite their high-interest rates, they are subject to sudden changes. Because not all high-yield savings accounts provide ATM cards, withdrawing money could potentially take a little longer. If you are concerned about physical banking, the majority of online banks offering high-yield savings accounts do not have any physical locations.