The most lucrative high-yield savings account will help you build funds much faster than typical accounts. The savings accounts on this page come with an annual percent yield, also known as APYs, that can be as high as 5 percent or more. This is a lot higher than the average rate in the United States of 0.46 percent.
In light of recently announced Federal Reserve rate increases, APYs are increasing and now is a great moment to open a higher-yielding savings account. The accounts listed below will help you build your emergency fund, or prepare for large purchases. Go to the bottom of this page for more details on the way these financial products function.
Why you should be confident in NerdWallet: Our writers and editors adhere to strict guidelines in the area of editorial to ensure accuracy and fairness in our reporting to assist you in choosing the financial account that works best for you. Review our guidelines for reviewing credit unions and banks.
Methodology for research into APYs: The APYs shown are current as of the publishing date on this page. Every weekday we look over rates on our accounts to ensure that we have the most current rates.
High-Yield Online Savings Accounts
SoFi Checking and Savings
Why We Like It
SoFi Savings and Checking is a combined savings and checking account that pays a high annual percentage yield of 4.60 percent (variable but subject to changes) on the cash you deposit into the savings section within the accounts. To earn this rate, you’ll need to complete either of these things: Make a direct deposit of any amount or make a manual deposit of at least $5,000 every 30 days. In the absence of a direct or minimum amount of manual deposits, you’ll be able to earn 1.20% APY on the savings balance.
The funds you hold in the checking section of your account earn 0.50% APY either with or without deposit (APY is subject to changes).
There’s no minimum deposit amount for opening an account and there’s no maintenance fee per month either.
Also Read:-2023-2024 Tax Brackets and Federal Income Tax Brackets
Barclays Online Savings Account
Why We Like It
Barclays Savings account provides an excellent interest rate and there aren’t charges for monthly or minimum amount of balances. It also comes with the ability to set savings goals.
Discover® Online Savings
Why We Like It
The Discover Bank’s APY is robust and the website is easy to navigate. The iOS as well as Android apps are rated highly. There is a branch located in Delaware and customer service is available 24/7. Discover also provides a $150 or $200 bonus when creating your very first Discover Online Savings Account (expires 03/14/2024).
Details on the bonus offer From Discover: “To get your $150 or $200 Bonus, what do you have to accomplish: Apply for your first Discover Online Savings Account on the internet, through Discover’s Discover App, or over the phone. Use the promo code NW124 when you apply. Deposit to your account at least $15,000 to receive a $150 Bonus, or deposit at least $25,000 for 200 Bonus. The deposit must be made to the accounts within the first 30 days from the account opening date. Maximum bonus eligibility is $200.
Information to be aware of: Offer cannot be used by customers who are current or former Discover savings customers, or for existing or previous customers with savings accounts cobranded or affinity accounts offered by Discover. The eligibility criteria are determined by the primary account holder. Accounts must be opened at the time of crediting bonus. Bonus funds will be credited to an account after 60 days from the date of receiving the bonus. Bonuses are subject to the filing of Form 1099-INT. Offer ends 03/14/2024, 11:59 PM ET. The offer may be changed or canceled at any time without notification.”
Also Read :-Credit Cards with $2,000 Limit Guaranteed Approval
EverBank Performance℠ Savings
Why We Like It
This savings account offers a competitive rate of return. In comparison to the national average savings rate of 0.46%, a account that has a higher yield will help you grow your money more quickly in time.
American Express® High Yield Savings Account
Why We Like It
The rate of return of this account is more than the national average savings rate of 0.46 percent. The higher yield means that your money earns you more every month.
What is a high-yield savings account?
A high-yield savings account is an example of a savings product that is insured by the federal government and has rates that are more than the national average. They could earn as high as five percent. The average for the nation is 0.46 percent.
Why choose a high-yield savings account?
If you have a high-yielding savings account, which is also known as a high-interest savings account your balance could grow more in time than in a typical savings account. It’s all without extra effort from you. Your money is doing more for you, thanks to a higher-rate account.
What is the difference between a high-yield savings account and a traditional savings account?
A high-yielding savings account earns more than a standard savings account. While regular savings accounts, especially those offered by large national banks, can earn rates that are as low as 0.01 percent APY, high-yield accounts can earn a large amount more. Current rates for most high-yield accounts average approximately 5% annualized.
Alternatives to high-yield savings accounts
High-yield savings account vs money market account
Savings accounts with high yields and Money market accounts comprise two types of savings accounts. However, MMAs generally offer debit cards and checks with the possibility of making small purchases per month. Both kinds of accounts typically permit you to link with different deposit account types, like the checking account, to allow electronic deposits and withdrawals. With the added benefit of debit cards and check accounts, cash market funds provide easier access to your money. They can be beneficial when you require quick access to money. However, certain MMAs have monthly charges and also have large minimum deposits for opening.
High-yield savings account vs certificate of deposit (CD)
High-yield savings accounts as well as certificates of deposits are all federally insured deposit accounts However, CDs generally have higher interest rates for locking your money for a specific time. CDs are ideal for cash that can be saved for the entire term of the CD which can range from a few weeks to 5 years and more. If you’re looking to meet goals for savings in the short term, such as something you’d like to buy in the next couple of years, you should consider opening the CD. Savings accounts with high yields can be taken out anytime, but there is a minimum of six monthly withdrawals for specific types of withdrawals. As compared to the CD high-yield savings account is a more suitable option to have an emergency fund.
Also Read :-Credit Cards with $2,000 Limit Guaranteed Approval
High-yield savings account vs checking account
The difference between a high-yield savings account and a checking account is that a high-yield savings account is used for building your account balance, while a checking account is used for everyday spending. Some checking accounts earn interest or offer cash-back rewards, but a high-yield savings account likely pays more interest, though it may also limit certain types of withdrawals to a maximum of six per month.
How much interest will I get on $10,000 after a year in a high-interest savings account?
If your savings are in a bank account that is earning a high rate, your account will increase in value without additional effort from you. With an APY of 5, that means a savings account of $10,000 will earn little more than $500 over an entire year. It might not be a millionaire however the profits are higher than one with 0.40 percent APY, which will earn around $40.
How do I choose the best high-interest savings accounts?
Find accounts with higher interest rates and lower service fees. It is important to ensure that you don’t need to pay a monthly fee. Certain institutions do not have monthly charges, whereas others do, but can waive them if you reach a certain amount of balance.
Consider looking beyond the bigger, well-known banks. A lot of smaller institutions (including mobile and online banks offer competitive rates and minimal deposit requirements.
High-yield savings accounts: Pros and cons
This article will review the advantages and drawbacks of typical high-yielding savings accounts, compared to other options to increase your savings.
High-yield savings account pros:
- Earns higher rates than other savings accounts.
- Is a deposit account, so it has federal insurance (unlike investments).
- Typically can be opened online, without the need to leave your home.
High-yield savings account cons:
- Sometimes requires a higher minimum opening balance compared with regular savings accounts.
- While they can be opened online (a pro), some are online-only, so face-to-face customer service is not an option.
The highest APY savings accounts are easy to access
Through online banking, customers can access your account with security all day and at night. Credit unions, online banks, and nonbank lenders provide some of the highest savings rates available and charge fewer charges than traditional banks. They typically also offer excellent mobile and web-based apps that allow customers to make deposits on checks and pay for bills.
How to open an account with the best interest rates
Based on the type of bank You can create an account on the Internet as well as in person. You’ll have to provide you with a Social Security number and contact details, as well as at minimum one form of ID, such as a driving license or passport. (For joint accounts each person who wishes to access the account needs to provide these details and a valid ID.) It is common to transfer money into the account immediately. This can be done by depositing checks or cash or a wire transfer.
What to do if you can’t open a high-interest savings account
Sometimes, your application to open a bank account might not be accepted. It could be due to problems with your financial background.
Bank fees that are not paid and bounced checks could cause a negative record on ChexSystems, a consumer report agency that banks utilize to analyze a potential customer’s history with banks.
There are options available to those with ChexSystems records, such as options to open new accounts. For more information, refer to our guide on how to proceed when you have the ChexSystems file.
Are high-yield savings accounts safe?
In short, yes. High-yield savings accounts at banks and credit unions are federally insured up to $250,000 per depositor, and many nonbank providers partner with banks for insurance. Accounts at banks are backed by the Federal Deposit Insurance Corp., while credit union accounts are backed by the National Credit Union Administration. This means that even if the financial institution fails, the government makes sure your money is safe and accessible.
What’s the difference when NerdWallet notes “Member FDIC” vs. “funds insured by FDIC” on savings accounts?
If we talk about an account for savings that is provided by a bank, we mention “Member FDIC,” since the bank is an FDIC member. Federal Deposit Insurance Corp. and the account is insured by the federal government. If a financial technology firm (not a bank) provides an account for savings and it usually partners with a bank that’s an FDIC member to store the account’s funds, so deposits are insured. In such cases, we’ll make note of “funds that are insured by FDIC.” Accounts for savings with credit unions are insured federally with the National Credit Union Administration, therefore we will note “funds that are insured by NCUA.”
High-yield savings account terminology
Here’s a look into some crucial savings terms you need to know.
Saver’s account The account of a deposit from a bank that earns interest.
Account for money market: This is the type of savings account that typically offers higher interest rates for a large deposit. (Think at least $5,000.)
The term “interest” refers to The money bank deposits into an account over time.
Compounded interest The term “compound” refers to the amount of interest you earn on both the money you initially invested and the interest that you accrue. If you have an account that earns an interest rate that is compound, this amount can be added to the initial principal after each compounding period, which is usually every day or monthly. Every when interest rates are calculated and then added to an account, the higher balance will earn more interest.
Annual percentage yield The annual percentage yield, also known as the APY represents the total amount that that an account earns over a year. The calculation is dependent on the account’s interest rate as well as the number of instances that interest is paid out. A savings account that has the highest rate of return on investment grows more quickly than accounts with lower yields.
Full list of editorial picks: best high-yield online savings accounts
In deciding on the most profitable high-yielding savings account online, NerdWallet uses multiple data elements, including the monthly fee minimum balance requirements, APY mobile app scores, and accessibility to customer service. Click the name of the institution in the below table to read the complete review.
| Financial Institution | NerdWallet Overall Institution Rating | APY | Minimum balance to open |
|---|---|---|---|
| Affirm, funds insured by FDIC. | 3.5. | 4.35%. | No minimum to open account. |
| Ally, Member FDIC. | 5.0. | 4.35%. | No minimum to open an account. |
| American Express, Member FDIC. | 4.0. | 4.35% APY (annual percentage yield) as of 12/14/2023. | Minimum to open = $0. |
| Barclays, Member FDIC. | 4.0. | 4.35%. | No minimum to open an account. |
| Bask Bank, Member FDIC. | 4.0. | 5.10%. | No minimum to open an account. |
| BMO Alto, Member FDIC. | 4.5. | 5.10%. | No minimum to open an account. |
| Bread Savings, funds insured by FDIC. | 4.5. | 5.15%.Bread Savings disclosure | No minimum to open an account. |
| Capital One 360, Member FDIC. | 4.5. | 4.35%. | $100 minimum to open an account. |
| CIBC U.S., Member FDIC. | 3.5. | 5.01%. | $1,000 minimum to open account. |
| CIT Bank, Member FDIC. | 4.0. | 5.05%. | $1,000 minimum to open an account. |
| Citibank, Member FDIC. | 4.0. | 4.45%. | $100 minimum to open an account. |
| Citizens, Member FDIC. | 4.0. | 4.50%. | No minimum to open an account. |
| ConnectOne Bank, Member FDIC. | 3.5. | 4.90%. | $2,500 minimum to open account. |
| Discover Bank, Member FDIC. | 4.5. | 4.35%. | $0.01 minimum to open an account. |
| EverBank (formerly TIAA Bank), Member FDIC. | 4.5. | 5.15%. | No minimum to open an account. |
| First Foundation Bank, Member FDIC. | 3.5. | 5.00%. | $1,000 minimum to open account. |
| LendingClub, Member FDIC. | 4.5. | 4.65%. | $1,000 minimum to open an account. |
| Live Oak Bank, Member FDIC. | 3.5. | 4.40%. | No minimum to open an account. |
| Marcus by Goldman Sachs, Member FDIC. | 4.5. | 4.50%. | $100 minimum to open an account. |
| Popular Direct, Member FDIC. | 4.0. | 5.20%. | $100 minimum to open. |
| Quontic Bank, Member FDIC. | 4.0. | 4.50%. | $10 minimum to open an account. |
| Salem Five Direct, Member FDIC. | 4.0. | 5.01%. | No minimum to open an account. |
| Sallie Mae Bank, Member FDIC. | 4.0. | 4.50%. | $100 minimum to open an account. |
| SoFi, Member FDIC. | 5.0. | 4.60% (variable and subject to change). | No minimum to open an account. |
| Synchrony Bank, Member FDIC. | 4.5. | 4.75%. | No minimum to open an account. |
| TAB Bank, Member FDIC. | 4.5. | 5.27%. | No minimum to open an account. |
| UFB Direct, Member FDIC. | 4.5.Editor’s note: | 5.25%. | No minimum to open an account. |
| Upgrade, funds insured by FDIC. | 4.5. | 5.07%. | No minimum to open an account. |
| Varo, Member FDIC. | 4.5. | 3.00% (5.00% if certain requirements are met.) | No minimum to open an account. |
Historical savings rates
The table below shows the movement that some financial institutions have seen with savings rates over the last few months. We chose a few online institutions and two national banks to compare.
Note: Rates are accessed at the beginning of the month unless otherwise noted. Current rates may change at any time.
| January 2024 | December 2023 | November 2023 | October 2023 | September 2023 | August 2023 | July 2023 | June 2023 | May 2023 | April 2023 | March 2023 | February 2023 | January 2023 | December 2022 | November 2022 | October 2022 | September 2022 | August 2022 | July 2022 | June 2022 | May 2022 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Online institutions | |||||||||||||||||||||
| Ally, Member FDIC. | 4.35% APY. | 4.25% APY. | 4.25% APY. | 4.25% APY. | 4.25% APY. | 4.25% APY. | 4.00% APY. | 3.85% APY. | 3.75% APY. | 3.75% APY. | 3.40% APY. | 3.40% APY. | 3.30% APY. | 3.30% APY. | 3.00% APY. | 2.35% APY. | 1.85% APY. | 1.85% APY. | 1.25% APY. | 1.00% APY. | 0.60% APY. |
| CIT Bank, Member FDIC. | 5.05% APY. | 5.05% APY. | 5.05% APY. | 5.05% APY. | 5.05% APY. | 5.05% APY. | 4.95% APY. | 4.85% APY. | 4.75% APY. | 4.50% APY. | 4.05% APY. | 4.05% APY. | 4.05% APY. | 3.85% APY. | 3.60% APY. | 3.00% APY. | 2.10% APY. | 2.10% APY. | 1.90% APY. | 1.20% APY. | 0.90% APY. |
| LendingClub, Member FDIC. | 4.65% APY. | 4.65% APY. | 4.50% APY. | 4.50% APY. | 4.50% APY. | 4.50% APY. | 4.25% APY. | 4.25% APY. | 4.25% APY. | 4.25% APY. | 4.00% APY. | 4.00% APY. | 4.00% APY. | 3.60% APY. | 3.25% APY. | 3.12% APY. | 2.07% APY. | 2.07% APY. | 2.07% APY. | 1.26% APY. | 0.85% APY. |
| National brick-and-mortar banks | |||||||||||||||||||||
| Bank of America, Member FDIC. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. |
| Chase Bank, Member FDIC. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. | 0.01% APY. |
Historic APY data is current as of the day it is accessed
APY data for January 2024 was accessed on January 2, 2024.
APY data for December 2023 was accessed on December 1, 2023.
APY data for November 2023 was accessed on November 8, 2023.
APY data for October 2023 was accessed on October 2, 2023.
APY data for September 2023 was accessed on September 18, 2023.
APY data for August 2023 was accessed on August 1, 2023.
APY data for July 2023 was accessed on July 13, 2023.
APY data for June 2023 was accessed on June 1, 2023.
APY data for May 2023 was accessed on May 3, 2023.
APY data for April 2023 was accessed on April 3, 2023.
APY data for March 2023 was accessed on March 3, 2023.
APY data for February 2023 was accessed on February 3, 2023.
APY data for January 2023 was accessed on January 17, 2023.
APY data for December 2022 was accessed on December 20, 2022.
APY data for November 2022 was accessed on November 30, 2022.
APY data for October 2022 was accessed on October 31, 2022.
APY data for September 2022 was accessed on September 6, 2022.
APY data for August 2022 was accessed on August 30, 2022.
APY data for July 2022 was accessed on July 29, 2022.
APY data for June 2022 was accessed on June 29, 2022.
APY data for May 2022 was accessed on May 26, 2022.
Frequently asked questions
Is my money safe in an online savings account?
In short, yes, online accounts are safe. Most online financial institutions are federally insured by the Federal Deposit Insurance Corp., up to $250,000 per depositor. If the account is with a credit union, the account will likely be insured through the National Credit Union Administration, also for $250,000 per depositor. So if a provider fails and goes out of business, you will not lose the money in the account up to the insured amount.
What is a high-yield savings account?
High-yield savings accounts are deposit accounts from financial institutions that earn above-average yields. Typically, the rates are also better than those offered by checking accounts. Some of the best savings interest rates come from online banks and providers. They can provide greater returns to customers because they don’t have to pay for operating branches and can pass the savings along.
What is the difference between a high-interest savings account and a money market account?
Money market accounts are a type of savings account. They generally come with high APYs, high minimum deposit requirements, and some check-writing privileges.
A high-interest savings account, on the other hand, typically does not come with checks, though it will still offer a strong APY.
How often do high savings rates change?
Institutions typically don’t change savings rates hourly, daily, or even weekly. It’s common to see some rates remain unchanged for several months.
However, it’s important to note that rates are variable and can theoretically change at any time. In addition, many providers will adjust their rates based on their competitors’ actions. As a result, you will often see groups of financial institutions increase or decrease their APYs around the same time, especially if the Federal Reserve recently hiked or cut rates.
Do the best online savings accounts have fixed rates?
No, rates are variable and can change over time. The accounts featured in this article are among those with the consistently highest rates.
How often can I take money out of a high-yield savings account?
Financial institutions usually limit the number of certain kinds of withdrawals from any type of savings account to a maximum of six per month. These include online withdrawals, overdraft protection transfers, and transfers initiated by telephone. If you have more than six transactions per statement cycle, your provider may levy an excess withdrawal fee each time you exceed the limit. However, on April 24, 2020, the Federal Reserve allowed providers to eliminate this cap. Contact your financial institution’s customer service line to find out if it has eased restrictions. If it hasn’t, keep in mind that withdrawing cash from an ATM does not count toward the limit.
