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If you’re looking for a way to earn more interest on your money, a high-yield savings account is a great option. The national average savings account rate is 0.42% APY, but high-yield savings accounts pay much more than that. There are online banks paying up to 5.25% APY on high-yield savings accounts right now.
OceanFirst Bank High Yield Savings Account
3.75/5
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Annual Percentage Yield (APY)
5.25%
Minimum Deposit Amount
$1
Fees
no monthly service fee
OceanFirst Bank High Yield Savings Account
3.75/5
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Annual Percentage Yield (APY)
5.25%
Minimum Deposit Amount
$1
Fees
no monthly service fee
Raisin, FDIC or NCUA Insured Accounts
OceanFirst Bank High Yield Savings Account
Raisin, FDIC or NCUA Insured Accounts
Raisin is a great option if your ultimate goal is to earn the best savings account, money market account, and CD rates out there. It’s a marketplace that connects you with accounts you might not be able to access otherwise, including ones at community-driven and minority-owned institutions.
Details
Fees
no monthly service fee
Annual Percentage Yield (APY)
5.25%
Minimum Deposit Amount
$1
Pros & Cons
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Accounts pay high interest rates
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No fees
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Open accounts you might not be able access outside of Raisin
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Minimum opening requirements are often lower than if you opened an account directly with a bank
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No checking accounts or business accounts
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Only way to deposit or withdraw money is by connecting to an external account
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Can’t connect to third-party budgeting apps, like Mint
Highlights
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Raisin is an online marketplace that partners with banks to offer competitive rates
Offers high-yield savings accounts, money market accounts, CDs, and no-penalty CDs
Filter your search by institution, or by type of institution (e.g., minority-led, family-owned, or supports small business)
Interest is compounded daily and paid monthly
Deposits are federally insured by the FDIC or NCUA
Additional Reading
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The best high-yield savings rate is 5.25% APY, available at Milli, Betterment, and Raisin. To qualify for a high APY at Betterment, you’ll have to be a new customer.
We monitor our guide daily to find the best high-interest savings accounts in three categories — popular brands with good rates, accounts that let you earn a high rate with minimal effort, and best rates overall — so you have well-rounded options to choose from.
Compare the Best High-Yield Savings Accounts
Best Rates on High-Yield Savings Accounts With Minimal Effort
UFB Priority Savings
4/5
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Annual Percentage Yield (APY)
5.06% (as of 07/19/2023)
Minimum Deposit Amount
$0
Fees
no monthly service fee
UFB Priority Savings
4/5
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Annual Percentage Yield (APY)
5.06% (as of 07/19/2023)
Minimum Deposit Amount
$0
Fees
no monthly service fee
UFB (Axos Bank), Member FDIC
UFB Priority Savings
UFB (Axos Bank), Member FDIC
UFB Direct is an excellent option if you’re searching for a competitive interest rate on a money market account or savings account. If you’d also like a checking account or CD, you might consider other institutions because UFB Direct doesn’t have these accounts.
Details
Fees
no monthly service fee
Annual Percentage Yield (APY)
5.06% (as of 07/19/2023)
Minimum Deposit Amount
$0
Pros & Cons
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High interest rate
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No monthly service fee
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No minimum opening deposit
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ATM card included
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May not be easy to deposit cash (Only cash accepting ATMs)
Highlights
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Earn up to 5.06% APY*.
No monthly maintenance fees.
No minimum deposit required to open an account.
Access your funds 24/7 with easy-to-use digital banking tools.
Enjoy peace of mind with FDIC insurance up to the maximum allowance limit ® Certificate #35546.
* The Annual Percentage Yield (APY) is accurate as of 07/19/2023. The interest rate and corresponding APY for savings is variable and is set at UFB’s discretion. This is a tiered variable rate account. Interest rates may change as often as daily without prior notice. Fees may reduce earnings.
Additional Reading
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Popular Direct Savings
3.5/5
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Annual Percentage Yield (APY)
5.05%
Minimum Deposit Amount
$100
Popular Direct Savings
3.5/5
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Annual Percentage Yield (APY)
5.05%
Minimum Deposit Amount
$100
Popular Bank, Member FDIC
Popular Direct Savings
Popular Bank, Member FDIC
Popular Direct’s high-yield savings account is featured in our best high-yield savings account guide because it has one of the highest rates available. The bank’s CDs also offer high rates, but these accounts may not be as appealing due to the high minimum opening deposits and early withdrawal penalties.
Details
Annual Percentage Yield (APY)
5.05%
Minimum Deposit Amount
$100
Pros & Cons
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High APY
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No monthly service fee
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Compounds interest daily
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$5,000 minimum opening deposit
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$5 excess withdrawal fee
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For the first 70 days, the only account you can transfer money to is your linked funding account
Highlights
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Must link to external bank account and transfer funds to access your savings
Interest compounded daily, paid monthly
FDIC insured
Additional Reading
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TAB High-Yield Savings Account
4.5/5
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Annual Percentage Yield (APY)
5.02%
Minimum Deposit Amount
$0
TAB High-Yield Savings Account
4.5/5
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Annual Percentage Yield (APY)
5.02%
Minimum Deposit Amount
$0
TAB High-Yield Savings Account
Details
Annual Percentage Yield (APY)
5.02%
Minimum Deposit Amount
$0
Pros & Cons
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High APY
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No minimum opening deposit
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No monthly service fees
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No physical branch locations
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$5 paper statement fee
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Must maintain $1 minimum daily balance to earn APY
Interest compounds daily to maximize earnings
FDIC insured
Additional Reading
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Salem Five Direct eOne Savings
4.5/5
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Annual Percentage Yield (APY)
5.01%
Minimum Deposit Amount
$10
Fees
no monthly service fee
Salem Five Direct eOne Savings
4.5/5
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Annual Percentage Yield (APY)
5.01%
Minimum Deposit Amount
$10
Fees
no monthly service fee
Salem Five Direct, Member FDIC
Salem Five Direct eOne Savings
Salem Five Direct, Member FDIC
You might like Salem Five Direct if you’re searching for an online institution with a high-yield savings account and cash-back checking account. It has one of the best high-yield savings accounts right now.
Details
Fees
no monthly service fee
Annual Percentage Yield (APY)
5.01%
Minimum Deposit Amount
$10
Pros & Cons
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High APY on balances under $1 million
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$10 minimum opening deposit
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No monthly service fees
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Can’t open if you have a savings or checking account opened at a Salem 5 branch
Highlights
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Earn 5.01% APY on daily account balances under $1 million
If you have a daily balance over $1 million your money may be transferred to a Salem Statement Savings Account, which pays 0.01% APY
Can’t open if you have a savings or checking account opened at a Salem 5 branch
Interest compounded and deposited monthly
FDIC insured
Additional Reading
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Best Rates Overall
OceanFirst Bank High Yield Savings Account
3.75/5
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Annual Percentage Yield (APY)
5.25%
Minimum Deposit Amount
$1
Fees
no monthly service fee
OceanFirst Bank High Yield Savings Account
3.75/5
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Annual Percentage Yield (APY)
5.25%
Minimum Deposit Amount
$1
Fees
no monthly service fee
Raisin, FDIC or NCUA Insured Accounts
OceanFirst Bank High Yield Savings Account
Raisin, FDIC or NCUA Insured Accounts
Raisin is a great option if your ultimate goal is to earn the best savings account, money market account, and CD rates out there. It’s a marketplace that connects you with accounts you might not be able to access otherwise, including ones at community-driven and minority-owned institutions.
Details
Fees
no monthly service fee
Annual Percentage Yield (APY)
5.25%
Minimum Deposit Amount
$1
Pros & Cons
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Accounts pay high interest rates
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No fees
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Open accounts you might not be able access outside of Raisin
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Minimum opening requirements are often lower than if you opened an account directly with a bank
Dash icon
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No checking accounts or business accounts
Dash icon
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Only way to deposit or withdraw money is by connecting to an external account
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Can’t connect to third-party budgeting apps, like Mint
Highlights
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Raisin is an online marketplace that partners with banks to offer competitive rates
Offers high-yield savings accounts, money market accounts, CDs, and no-penalty CDs
Filter your search by institution, or by type of institution (e.g., minority-led, family-owned, or supports small business)
Interest is compounded daily and paid monthly
Deposits are federally insured by the FDIC or NCUA
Additional Reading
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Milli Account
4.25/5
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Annual Percentage Yield (APY)
up to 5.25%
Minimum Deposit Amount
$0
Fees
no monthly service fee
Milli Account
4.25/5
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Annual Percentage Yield (APY)
up to 5.25%
Minimum Deposit Amount
$0
Fees
no monthly service fee
Milli, FDIC Insured Account
Milli Account
Milli, FDIC Insured Account
Milli is a solid choice if you’re comfortable with a mobile-only banking experience and want to keep your checking and savings all in one place. Milli offers a Spending and Savings Account.
Details
Fees
no monthly service fee
Annual Percentage Yield (APY)
up to 5.25%
Minimum Deposit Amount
$0
Pros & Cons
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High APY on Savings Account and Jar Accounts
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No minimum opening deposit
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No monthly service fees
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No overdraft fees
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No ATM fees
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Does not reimburse out-of-network ATM Fees
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Does not accept cash deposits
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No weekend customer support
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Mobile-only banking platform and division of National Bank of Omaha
Must open Spending Account to also get Savings and Jar Accounts
Earn 5.25% APY on Savings Account and Jar Account
No interest earned on Spending Account
Access to over 55,000 ATMs through AllPoint network
Interest compounded daily and credited monthly
FDIC insured
Betterment Cash Reserve Account
4.25/5
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Annual Percentage Yield (APY)
5.25%
Minimum Deposit Amount
$10
Betterment Cash Reserve Account
4.25/5
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Annual Percentage Yield (APY)
5.25%
Minimum Deposit Amount
$10
Betterment, FDIC Insured Account
Betterment Cash Reserve Account
Betterment, FDIC Insured Account
Betterment has strong checking and cash reserve accounts. However, Betterment won’t be a good fit if you need to deposit cash, or need to deposit checks but don’t qualify.
Details
Annual Percentage Yield (APY)
5.25%
New Customer Offer: Earn 5.25% (variable) APY* when you open your first cash account with qualifying deposit
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Minimum Deposit Amount
$10
Pros & Cons
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Competitive APY
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$10 minimum deposit
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No minimum balance requirements
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No monthly service fees
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No transaction limits
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FDIC insured for up to $4 million
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Create savings goals
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The “two-way sweep” moves extra money from checking to cash reserve to help you save
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No physical branch locations
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Mobile check deposit is limited to certain customers
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You can only deposit up to $1,500 in paper checks per day
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No way to deposit cash
Highlights
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By linking to a Betterment Checking Account (Member FDIC), you can set up the “two-way sweep,” which helps you save automatically, earn more interest, and set up overdraft protection
You can use mobile check deposit if a) you’ve been a Betterment customer for at least 30 days, and b) you have received at least $500 in direct deposits in the last month
Interest compounds daily, pays monthly
FDIC insured through partner banks
Additional Reading
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Bank5 Connect Jumbo Savings Account
4/5
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Annual Percentage Yield (APY)
5.10%
Minimum Deposit Amount
$25,000
Bank5 Connect Jumbo Savings Account
4/5
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Annual Percentage Yield (APY)
5.10%
Minimum Deposit Amount
$25,000
Bank5 Connect, Member FDIC
Bank5 Connect Jumbo Savings Account
Bank5 Connect, Member FDIC
Bank5 Connect is a solid online option for a fee-free high-interest savings or checking account.
Details
Annual Percentage Yield (APY)
5.10%
Minimum Deposit Amount
$25,000
Pros & Cons
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High interest rate
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No monthly service fees
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Offers more federal insurance than most banks
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Receive direct deposits up to 2 days early with early direct deposit
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High minimum opening deposit
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Must maintain $25,000 balance to earn interest
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$1 paper statement fee
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Interest compounds monthly, not daily
Highlights
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Bank5 Connect is the online subsidiary of BankFive
Link to Bank5 Connect High-Interest Checking Account for overdraft protection
Member FDIC
Offers Depositors Insurance Fund (DIF) protection; FDIC insurance covers up to $250,000 for individual accounts, but DIF offers additional insurance on more than $250,000; all of your money in this account will be insured
Interest compounded monthly, paid monthly
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Best Rates on Popular High-Yield Savings Accounts
Synchrony High-Yield Savings Account
5/5
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Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$0
Fees
no monthly service fee
Synchrony High-Yield Savings Account
5/5
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Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$0
Fees
no monthly service fee
Synchrony Bank, Member FDIC
Synchrony High-Yield Savings Account
Synchrony Bank, Member FDIC
The Synchrony high-yield savings account and CDs are some of the best savings accounts right now. They pay high rates with $0 minimum opening deposits. You’ll need to be comfortable banking digitally, though, because it’s an online-only bank.
Details
Fees
no monthly service fee
Annual Percentage Yield (APY)
4.50%
Minimum Deposit Amount
$0
Pros & Cons
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Competitive APY
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Comes with an ATM card
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No required opening deposit or minimum account balance
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No monthly service fee
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No physical branch locations
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Only reimburses up to $5 of out-of-network ATM fees per month
Highlights
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Access your cash online, by phone or via ATM
Manage your accounts from virtually anywhere in the Synchrony app
No minimum balance
Interest compounded daily, paid monthly
FDIC insured
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SoFi Checking and Savings
4.25/5
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Annual Percentage Yield (APY)
up to 4.40% with direct deposit
Minimum Deposit Amount
$0
Fees
$0 monthly service fee
SoFi Checking and Savings
4.25/5
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Annual Percentage Yield (APY)
up to 4.40% with direct deposit
Minimum Deposit Amount
$0
Fees
$0 monthly service fee
SoFi Checking and Savings
SoFi Checking and Savings is a great account option if you don’t mind keeping your savings and checking in one account.
Details
Fees
$0 monthly service fee
Annual Percentage Yield (APY)
up to 4.40% with direct deposit
SoFi members with direct deposit can earn up to 4.40% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.40% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 7/11/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
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Minimum Deposit Amount
$0
Pros & Cons
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FDIC insured for $2 million
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High interest rate
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Earn a higher interest rate if you set up direct deposit
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No minimum opening deposit
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No monthly service fees
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No overdraft fees
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Up to $250 bonus with qualifying direct deposit (terms apply)
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Earn up to 15% cash back at local retailers if you use a SoFi debit card
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No-fee overdraft coverage if you overdraw up to $50
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Savings tools
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Early direct deposit
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Joint account available
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Declined purchase if you overdraw by more than $50
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Doesn’t reimburse out-of-network ATM providers’ fees
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May deposit cash at Green Dot locations but there’s a $4.95 fee
Highlights
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FDIC insured for $2 million
Free access to 50,000+ Allpoint ATMs worldwide
Hybrid checking/savings account
Earn up to 15% cash back on local retailers when you use a SoFi debit card; Retailer information is available through online banking
Earn 4.40% APY on savings balances (Vaults included) and 0.50% APY on checking balances if you set up direct deposit
Earn 1.20% APY on SoFi Checking and Savings if you don’t set up direct deposit
Earn up to $250 cash bonus available through December 31, 2023; receive a $50 bonus if you make a direct deposit between $1,000 and $4,999 in the first 30 days of opening an account; receive a $250 bonus if you make a direct deposit of $5,000 or more in the first 30 days of opening an account
Create up to 20 Money Vaults to save for individual savings goals like an emergency fund or vacation
$4.95 fee each time you deposit cash at a Green Dot location
To get no-fee overdraft coverage you must have at least $1,000 in direct deposits
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Barclays Online Savings Account
4.25/5
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Annual Percentage Yield (APY)
4.35%
Minimum Deposit Amount
$0
Barclays Online Savings Account
4.25/5
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Annual Percentage Yield (APY)
4.35%
Minimum Deposit Amount
$0
Barclays Bank, Member FDIC
Barclays Online Savings Account
Barclays Bank, Member FDIC
Details
Annual Percentage Yield (APY)
4.35%
Minimum Deposit Amount
$0
Pros & Cons
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High APY
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No minimum opening deposit
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A check mark. It indicates a confirmation of your intended interaction.
No monthly service fees
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Must transfer money to external bank to access it
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Low mobile app ratings in the Apple store
Highlights
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No checking account or debit card, so you must transfer funds to an external bank account to access your money
Compounds interest daily to maximize earnings
Interest compounded daily, deposited monthly
FDIC insured
Discover Online Savings Account
4.75/5
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Annual Percentage Yield (APY)
4.30% (as of 7/27/23)
Minimum Deposit Amount
$0
Fees
no monthly service fee
Discover Online Savings Account
4.75/5
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A five pointed star
A five pointed star
A five pointed star
Annual Percentage Yield (APY)
4.30% (as of 7/27/23)
Minimum Deposit Amount
$0
Fees
no monthly service fee
Discover Bank, Member FDIC
Discover Online Savings Account
Discover Bank, Member FDIC
Discover is a strong online bank. However, if you’d prefer to open an CD or money market account with a low minimum opening deposit, you might consider other options.
Details
Fees
no monthly service fee
Annual Percentage Yield (APY)
4.30% (as of 7/27/23)
Minimum Deposit Amount
$0
Pros & Cons
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Competitive APY
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A check mark. It indicates a confirmation of your intended interaction.
No monthly service fee
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A check mark. It indicates a confirmation of your intended interaction.
No opening deposit
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A check mark. It indicates a confirmation of your intended interaction.
No insufficient funds fee
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A check mark. It indicates a confirmation of your intended interaction.
No excess withdrawal fee
Dash icon
A dash. It often indicates an interaction to shrink a section.
Only 1 branch location
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A dash. It often indicates an interaction to shrink a section.
No debit card unless you open a checking account
Highlights
Chevron icon
It indicates an expandable section or menu, or sometimes previous / next navigation options.
No monthly balance requirements
100% US-based customer service available 24/7
No hidden fees
Interest compounded daily, paid monthly
FDIC insured
Additional Reading
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Our top picks for savings accounts are protected by FDIC or NCUA insurance. Although three banks failed in 2023, keep in mind money is safe at a federally insured financial institution. When a financial institution is federally insured, up to $250,000 per depositor is secure in a bank account.
High-Yield Savings Account Rates
High-Yield Savings Account Reviews
UFB Priority Savings
Why it stands out: UFB Priority Savings comes with a complimentary ATM card, so you’ll have easy access to your bank account.
The Better Business Bureau gave UFB Direct an A+ rating. The BBB looks at a company’s responses to customer complaints, honesty in advertising, and transparency about business practices to determine ratings. UFB Direct also hasn’t been involved in any recent public scandals.
What to look out for: Customers with existing savings accounts may have to call customer service to get upgraded to the newest rate.
It also may not be easy to deposit cash at UFB Direct. You’ll have to see if there are cash-accepting ATMs in your area.
Popular Direct Savings
Why it stands out: Popular Direct has an online savings account and CDs. It’s a good option if you’re specifically searching for competitive savings and CD rates, and you do not need immediate access to your savings. Popular Direct doesn’t have a checking account, so you’ll have to transfer money to an external account, which could take a couple of business days.
What to look out for: Popular Direct has a $100 minimum opening deposit. If you would prefer to open an account with less money upfront, one of our other top picks will be more appealing.
You might prefer another financial institution if you’re an avid mobile app user. The Popular Direct mobile app has lackluster ratings in the Google Play and Apple stores. That said, the app doesn’t have a lot of ratings yet.
We usually consider ratings from the BBB, which rates businesses on transparent business practices and customer service issues. However, Popular Direct doesn’t have a rating from the BBB yet.
TAB Bank High-Yield Savings Account
Why it stands out: TAB Bank pays a high interest rate with no monthly service fees. This account also might be a good choice if you’d like to open a savings account with $0 upfront.
What to look out for: TAB Bank does not have an ATM network. If you’d like to withdraw money from an ATM, TAB charges a $2 ATM fee.
The BBB gave TAB Bank an A- rating because government action has been taken against the bank. In 2022, the bank entered an Assurance of Discontinuance with the State of Iowa. According to the settlement, the State of Iowa accused TAB Bank of charging Iowa residents more than the permitted maximum APR for consumer installment loans. The bank has stopped making consumer installment loans to Iowa residents and can resume if they provide a 30-day notice to the state and follow the state code.
Salem Five Direct eOne Savings
Why it stands out: Salem Five Direct, an online division of the Massachusetts-based institution Salem Five Bank, pays 5.01% APY, and has a $10 minimum opening deposit. The account also doesn’t have monthly service fees.
Salem Five has an A- rating from the BBB because it has failed to respond to one customer complaint.
What to look out for: You won’t be eligible to open Salem Five Direct eOne Savings if you currently have a checking or savings account with Salem Five Bank. (If you have an eOne Checking Account with Salem Five Direct, you’ll still qualify to open an eOne Savings Account.) When you open the account, you also have to use “new money.” New money refers to funds that have not already been deposited into another Salem Five or Salem Five Direct bank account.
Salem Five Direct may transfer money to a Statement Savings Account if you have more than $1 million in your account. This account only offers 0.01% APY.
OceanFirst Bank High-Yield Savings Account
Why it stands out: Through Raisin, you can use one platform to find, fund, and manage multiple high-yield savings accounts and CDs from over 20 banks and credit unions. Currently, the OceanFirst Bank High-Yield Savings Account is the highest-yield savings account on Raisin. That said, there are also other savings accounts available on Raisin that pay 5.00% APY or more.
Raisin received an A grade from the BBB because there are 27 complaints against the company on the BBB website.
What to look out for: You might prefer one of our other top picks if you would rather open a bank account directly with a bank. You also can’t get a checking account with Raisin, so it may not be the best option if you want to do all your banking with one company.
Milli Account
Why it stands out: Milli is a solid choice if you’re comfortable with a mobile-only banking experience and want to keep your checking and savings all in one place. Milli offers a Spending and Savings Account. You can earn 5.25% APY on the Savings Account. Milli also has a savings tool called Jars that helps you track money for individual goals without having to create a new savings account. There are no minimum balance requirements to earn interest.
Milli doesn’t have a Better Business Bureau rating yet, First National Bank of Omaha has an A+ grade.
What to look out for: Milli doesn’t accept cash deposits. It only offers customer service on weekdays from 8 a.m. to 5 p.m. CT, and only through chat or email.
Betterment Cash Reserve
Why it stands out: If you’re looking for a place where you can save and invest, Betterment may be a strong option. The online investing platform is offering a high rate of 5.25% APY on the Betterment Cash Reserve Account for new customers. To earn the promotional rate, you’ll open it through the signup link and make a deposit from an external bank account in the first 14 days.
The APY boost will be applied to your account until December 31, 2023. Afterward, you’ll earn the standard rate.
What to look out for: To be eligible for the APY boost, you cannot have an existing Betterment account. Existing customers will earn the standard rate. You may also prefer another institution if you’d like to open CDs or money market accounts. Betterment only offers a checking account and cash reserve account, which is similar to a high-yield savings account.
The Better Business Bureau gave Betterment an F rating because it has a high volume of customer complaints on the BBB website and six unresolved complaints. It has also been involved in a recent public controversy. In 2023, the Securities and Exchange Commission required Betterment to pay $9 million in a settlement that accused the investment advisory firm of omitting information regarding automated tax loss harvesting, which the SEC claimed affected clients.
Bank5 Connect Jumbo Savings
Why it stands out: This account pays a high interest rate and has no monthly fees. It also offers early direct deposit so you can receive your paycheck up to two days early. Its most unique feature is that, along with FDIC insurance, it offers Depositors Insurance Fund (DIF) protection. FDIC insurance protects up to $250,000 in an individual account, and DIF insurance protects any deposits above that amount. So every penny in your Jumbo Savings Account is secure.
Bank5 Connect is the online subsidiary of Bank Five, which has an A+ from the BBB.
What to look out for: This account is only a good option if you have at least $25,000. You need $25,000 to open the account, and you must maintain this balance to earn interest. Bank5 Connect also compounds interest monthly, not daily. Depending on how much you save, this may or may not make a significant difference in how much you earn.
Synchrony High-Yield Savings Account
Why it stands out: The Synchrony High-Yield Savings Account pays a high interest rate, has no minimum opening deposit, and charges zero monthly fees. It also comes with an ATM card so you can access your savings quickly.
Synchrony has an A+ rating from the BBB.
What to look out for: Synchrony doesn’t have a checking account, so it might not be the best option if you want to do all your banking with one institution.
Synchrony has also been involved in a few public controversies. In 2023, Synchrony was required to pay $2.6 million in a settlement when accused of calling customers about bank accounts they didn’t have. In 2021, the bank also was required to pay $3.5 million in a settlement when accused of making unreasonable phone calls to debtors living in California.
SoFi Checking and Savings
Why it stands out: If you’d like to manage your money in one account, SoFi Checking and Savings is a great option. It’s a hybrid bank account that combines checking and savings features.
You can earn a competitive interest rate that’s higher than the average savings account pays if you set up direct deposits.
SoFi has an A+ grade from the BBB.
What to look out for: The account is a hybrid savings/checking account, so you’ll need to keep that in mind to get the most out of the account. If you deposit cash, you also might need to pay a fee.
SoFi has been involved in a recent public controversy. In 2021, the Security and Exchange Commission required SoFi Wealth to pay $300,000 in a settlement that stated the bank failed to tell customers of a conflict of interest when it put account holders’ assets into SoFi ETFs instead of third-party ETFs.
Barclays Online Savings Account
Why it stands out: Barclays pays a great interest rate, and there’s a $0 minimum deposit and no monthly service fee.
The Better Business Bureau gives Barclays an A- rating because of the length of time the bank has taken to respond to a customer complaint.
What to look out for: Barclays doesn’t have a checking account, only savings accounts and CDs. To access your savings quickly, you’ll have to transfer money to an external bank account and then withdraw it. If you would rather have your checking and savings accounts at the same bank, you might consider one of the other options on our list.
Barclays also has lackluster mobile app ratings. The mobile app has received 1.9 out of 5 stars in the Google Play store, and 3.4 out of 5 stars in the Apple store.
The bank has been involved in one recent public controversy. In 2022, the Securities and Exchange Commission required Barclays to pay $361 million in a settlement that accused the bank of having unregistered sales of securities.
Discover Online Savings
Why it stands out: Discover pays a high interest rate, and there’s a $0 minimum deposit and no monthly service fee. Discover also has an A+ grade from the BBB.
What to look out for: You can earn slightly higher interest rates at some other big-name, online banks.
High-Yield Savings Account FAQs
You can earn 5% or more with several savings accounts, including the Milli Account, Betterment Cash Reserve, Bank5 Connect Jumbo Savings Account, and more. You can also earn above 5% with several accounts through Raisin, an online savings marketplace that sets you up with high rates from partner banks.
The highest yield savings accounts pay 5.25% APY. Through Raisin, the OceanFirst Bank High Yield Savings Account pays 5.25% aPY. Milli, a mobile-only platform, pays 5.25% APY on its Savings Account. Betterment, an investment platform, is also offering a promotional rate of 5.25% APY to new customers who open Cash Reserve.
The best savings accounts are free to open and to maintain, so there’s no real downside to having multiple accounts. In fact, experts often recommend assigning a savings account to a single goal — house, car, wedding — so it’s always clear how much you have for a given goal, and you aren’t tempted to use money meant for one goal to pay for another.
Yes, you have to pay taxes on the interest earned from a savings account. If you earn more than $10 in interest on your savings account, the bank holding your account will send you a Form 1099-T to include in your tax return. This is one reason why you shouldn’t keep retirement savings in a savings account.
You may withdraw money from your savings account by phone, in person (if your bank has physical locations), via ATM, or by cashier’s check — but doing your transaction online is usually easier. If you’re moving money between banks, expect it to take at least one business day. Some banks may charge a fee for too many withdrawals in a given time frame.
Yes, you can set up direct deposit to your savings account. You can typically have your paycheck, or a portion of your paycheck, deposited directly into savings, or you can set up recurring automatic deposits from checking into savings. To do this, you can call or visit a branch (if your bank has physical locations) or log into your bank’s website or app.
Yes, the interest rate on your savings account will most likely change. Interest rates on savings accounts are variable, meaning they can and will change regularly and without advance notice. These fluctuations are based on the federal funds rate, which is set by the Federal Reserve.
No, your savings account doesn’t help you build credit. Credit shows banks and lenders whether they can trust you to pay back a loan, based on your past behavior. You build credit by borrowing money and paying it back on time, whether that’s money borrowed through a credit card, a personal loan, a student loan, a car loan, or a mortgage.
Experts typically say enough savings is about three to six months’ worth of expenses in a savings account as an emergency fund, to be used only in case of emergency like job loss or a medical event. However, “enough” savings will be different for everyone, depending on your goals, financial obligations, and life stage. Remember that retirement savings and investments will not be stored in a savings account.
What To Do When Your Savings Account Interest Changes
Interest rates on high-yield savings account closely follow the federal funds rate. That is to say, rates are variable and can change multiple times per year at the whim of the Federal Reserve.
If the interest rate on your savings account changes significantly, you might decide to look at other financial institutions to see if you can find a more competitive interest rate elsewhere. However, bear in mind that changing accounts may not be worth the effort, particularly if your new account’s rate drops afterward.
You also might consider other savings account options. For example, buying savings bonds or setting up a CD ladder may be worth considering if you’ve already established your emergency fund.
Typical Interest Rates on High-Yield Savings Accounts
Nationally, as of July 2023, the average traditional savings account earns just 0.42% APY.
If you’re more comfortable banking with a brick-and-mortar bank, a traditional savings account might be a better option for you. Just know that you may not be getting the best possible interest rate, because online banks and credit unions usually offer higher rates.
High-Yield Savings Account Basics
A savings account is an interest-earning bank account. Accounts that are backed by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) are secure. Up to $250,000 per owner is insured in these bank accounts.
What To Look For in a High-Yield Savings Account
When you’re looking for a savings account, you’ll want to read through the account disclosures and terms to review the account’s minimum balance requirements and minimum opening deposits. The account disclosure may also specify any fees associated with the account, and whether there are any transaction limits.
What to Know About the Highest Interest Savings Account Interest Rates
Generally, you’ll find the best savings interest rates at online banks. Right now, the highest interest savings account on our list is 5.25% APY. Betterment and Milli have accounts that offer this APY. However, keep in mind that Betterment is offering this rate specifically to new customers, and Milli’s APY applies to its Savings Account and Jars.
High-Yield Savings Account Fees
Depending on where you bank, some savings accounts may charge monthly service fees. A monthly service fee is an amount you’ll have to pay each month to maintain an account. Some accounts will allow you to waive a monthly service fee if you meet certain requirements while others cannot be waived. Bear in mind, some savings accounts do not charge certain fees at all.
How High-Yield Savings Accounts Work
A savings account is a type of interest-earning bank account. A savings account rate is variable, which means it can fluctuate after you’ve opened the account. Your bank will usually email you to tell you the rate will go up or down soon.
Savings accounts may also have transfer limits, according to federal rule Regulation D. Generally, if a savings account has a transfer limit, this means that you’ll only be permitted to make six transfers from the account each month. If you exceed the transfer limit, you will have to pay a fee for each additional transfer.
The Board of Governors of the Federal Reserve has recently amended Regulation D, so banks may choose to suspend the monthly transfer limit so customers can make unlimited monthly transactions, or they could enforce a six-per-month limit.
The Different Types of Savings Accounts
There are six types of savings accounts: traditional savings accounts, high-yield savings accounts, money market accounts, certificates of deposit, cash management accounts, and specialty savings accounts. The best savings account for you may depend on your banking preference, goals, and when you’ll need to access your money.
A high-yield savings account, for example, is a strong choice if you’re comfortable with banking digitally and want to earn a high interest rate.
Savings Account Glossary
Below is an overview of all the terms you may need to know about savings accounts:
Savings Account Alternatives and Related Products
Bread Savings High-Yield Savings Account: Bread Savings pays a lower interest rate on its savings account than our top picks for minimal effort.ONE Account: This account makes it possible to earn a high interest rate if you meet certain criteria, but you can earn higher rates with our top picks for the best rates.
Bask Bank: Bask Bank pays 4.85% APY, but other financial institutions offer even more competitive savings rates right now.
Laurel Road High Yield Savings: Laurel Road has a competitive interest rate, but our top picks are even more competitive right now.Capital One 360 Performance Savings: Capital One 360 Performance Savings pays 4.30% APY. However, it was involved in a public settlement with the Office of the Comptroller of the Currency in 2020. Most of our other top picks also offer higher savings rates. Apple Savings Account: Apple has recently released a high-yield savings account for Apple users that pays 4.15% APY. It wasn’t one of our top picks because you need to have an iPhone and Apple Card.Marcus High Yield Online Savings Account: Marcus pays 4.15% APY, but it doesn’t offer a checking account — this can make it difficult to access your savings quickly.Panacea Financial High-Yield Savings Account: The Panacea Financial High-Yield Savings Account only pays 3.00% APY, and it’s changed its eligibility requirements so only doctors, aspiring doctors, or their immediate family members may open an account.M1 High Yield Savings Account: The M1 High Yield Savings Account pays a high rate if you’re an M1 Plus client. However, M1 Plus clients have to pay a membership fee of $10 per month or an annual fee of $95 per year. Currently, there is a 3-month free trial to become an M1 Plus member, and if you refer a friend you’ll get six months free. If you’re not an M1 Plus Client, you’ll earn a lower rate. Our top picks overall either offers a higher interest rate or may offer easier requirements for earning interest. Citi® Accelerate Savings: This account pays a good rate, but it’s only available in certain states.First Foundation Bank Online Savings Account: First Foundation pays a very high savings rate — just not quite as high as our top picks for highest rates overall.CIT Bank Platinum Savings: This account pays an impressive rate of 5.05% APY for balances of $5,000 or more, but you can earn a slightly higher rate with our picks for our highest rates overall.American Express® High Yield Savings Account: This account has a competitive rate for a big-name bank, but you can find slightly stronger accounts elsewhere.Primis Savings Account: The Primis Savings Account pays a high interest rate and has a $1 minimum opening deposit, but it’s currently unavailable to open online.Newtek Bank Personal High Yield Savings Account: The Newtek Personal High Yield Savings Account offers 5.00% APY, but it’s currently unavailable for new customers to open. If you’re interested in opening an account once accounts are available, you may fill out a waitlist form.Ivy Bank High-Yield Savings Account: The Ivy Bank High-Yield Savings Account pays up to 4.80% APY, but it requires a $2,500. Our top picks for best rates have even more competitive rates right now.Upgrade Premier Savings: While Upgrade Premier Savings pays up to up to 4.81% APY, our top picks for the best rates overall are even higher. You’ll also need to maintain at least $1,000 in your account to earn any interest.CIT Bank Savings Connect Account: The CIT Savings Connect Account offers a solid interest rate, but our best high-yield savings accounts with minimal effort pay more competitive savings rates.Citizens Access Savings: Citizens pays a great interest rate, but our top picks for minimal effort have even higher rates right now.LendingClub High-Yield Savings Account: LendingClub pays 4.50% APY, but our top picks for minimal effort have higher interest rates.PNC High Yield Savings℠ Account: Our top picks for minimal effort have more competitive interest rates.MySavingsDirect Savings Account: MySavingsDirect offers a competitive interest rate, but our top picks for best rates have even more competitive offerings right now.Chase Premier Savings℠ Account: This savings account has a low minimum opening deposit, but it pays a lower interest rate than the average savings account.Bank of America Advantage Savings Account: The Bank of America Advantage Savings Account pays only 0.01% to 0.04% APY. Other financial institutions offer more competitive interest rates.Huntington Premier Savings Account: This savings pays a lower interest rate than the average savings account.Wells Fargo Platinum Savings Account: While the Wells Fargo Platinum Savings Account pays a decent interest rate, the bank has been involved in public settlements involving overdraft fees on checking and savings accounts, fake bank accounts to meet sales goals, and predatory mortgage lending.Live Oak Bank Online Savings Account: Live Oak doesn’t have minimum balance requirements on its savings account, but it has lackluster mobile app ratings.TIAA Bank Yield Pledge® Online Savings: TIAA Bank might be worthwhile if you’d like to avoid monthly service fees, but it lacks the distinguishing features that our top picks have.Ally Savings Account: Ally pays a solid rate on its savings account, but our top picks for national brands pay even higher rates right now.Sallie Mae SmartyPig Account: Sallie Mae has a high interest rate on its savings account, but our top picks for best rates have even more competitive interest rates right now.Quorum Federal Credit Union HighQ Savings Account: Quorum Federal Credit Union has a solid savings account, but our top picks for best rates pay higher rates.Empower Personal Cash™: Empower Personal Cash™ might be ideal if you’re looking for a competitive interest rate or if you invest with Empower. However, our top picks also have more bank account options or have more unique features.Axos High Yield Savings Account: Axos is a solid free savings account, but our top picks for best rates offer more competitive interest rates right now.Vio Bank Online High-Yield Savings Account: Vio has a solid fee-free savings account, but our top picks have lower minimum opening deposits and pay higher interest rates.Chime Savings Account: Chime has unique savings features to help save for goals, but its interest rate is lower than all of our top picks for best rates with minimal fees.HSBC Direct Savings Account: The HSBC Direct mobile app has received negative reviews, and has a lower interest rate than our best rates category.CIBC Agility Online Savings Account: You only need to maintain a balance of $0.01 to earn interest on the account, but it has a lower interest rates than our top picks for best rates.Fitness Bank Fitness Savings Account: This unique savings account determines your APY by the number of steps you take on an average day. While there’s potential to earn a high rate on your money, it’s conditional on your level of commitment.SFGI Direct Savings Account: Although SFGI Direct’ account earns a respectable APY, it requires $500 to open.Credit Karma Money Save Account: Credit Karma Money Save pays a high interest rate, but our top picks offer more standout features, like a higher interest rate, an ATM card, savings tools, or the ability to open a joint bank account.USAA Savings Account: This account could be a good fit for military members and families, but you’ll earn a low rate and need at least $25 to open an account.Nationwide My Savings Account: You need $100 to open an account with Nationwide, and its interest rate is only so-so.
Why You Should Trust Us: Experts’ Advice on Choosing the Best High-Yield Savings Account
We consulted banking and financial planning experts to inform these picks and provide their advice on finding the best high-yield savings accounts for your needs.
Insider
Tania Brown, certified financial planner at SaverLifeRoger Ma, certified financial planner with lifelaidout® and author of “Work Your Money, Not Your Life”Sophia Acevedo, Certified Educator in Personal Finance, banking reporter at Personal Finance InsiderMykail James, MBA, certified financial education instructor, BoujieBudgets.com
Here’s what our expert panel had to say about high-yield savings. (Some text may be lightly edited for clarity.)
Generally, what makes a high-yield savings account good or not good?
Roger Ma, certified financial planner with lifelaidout® and author of”Work Your Money, Not Your Life”:
“It might not be as seamless to get your money out of an online savings account as it is a brick-and-mortar, but you don’t want to have so much friction where it’s such a pain to get the money out when you need it.”
Mykail James, MBA, certified financial education instructor, BoujieBudgets.com:
“Anything with a fee is not a good high-yield savings account. Anything that restricts how much you can save is, to me, not very good. If I can’t save more than $10,000 in this account, and then I have to move it over somewhere else — to me, that’s not a really good savings account, because it’s not really prepared to help me expand and grow, which is what a savings account is supposed to do. I also look at interest rates, definitely. I look to see when the interest is paid. Is it quarterly, or is it monthly? How often do they pay out interest, and what are the interest rate stipulations?”
Sophia Acevedo, certified educator in personal finance, banking reporter, Personal Finance Insider:
“I would consider looking for features that will help manage your account. Some banks have high-yield savings accounts that let you separate your savings into individual goals and track your progress. Other financial institutions will let you deposit cash at ATMs or some retailers. A good high-yield savings account will likely be an account where you can grow your savings without unnecessary hassles.”
How should someone decide whether to put their money in a high-yield savings account, money market account, or CD?
Tania Brown, certified financial planner at SaverLife:
“So I guess we’ll start off with how much money you want to put in and the level of transactions you want to have. If you want to have any transactions, that automatically takes out CDs. Then you’re stuck between the high-yield savings and the money market account.”
Sophia Acevedo, CEPF:
“I would create a list of what I prioritize most in a bank account. For example, some banks have accounts that charge monthly service fees. I would look to see what the requirements are for waiving the monthly service fee and whether I think I could feasibly meet those requirements each month. If I’m searching for an interest-earning bank account, I’ll pay attention to interest rates. I would make sure the account pays a higher interest rate than the average bank account.”
Our Methodology
There are a lot of high-yield savings accounts out there. Through our research, we’ve found that the best high-yield savings accounts are offered by banks with a strong online presence, robo-advisors, and other internet-only financial companies. If you’re more comfortable banking with a national brick-and-mortar bank, you’ll likely have to consider a premium savings account to earn a more competitive interest rate.
We review savings accounts at nearly three dozen institutions weekly to identify the strongest options. While interest rates are an important aspect of any savings account, we also consider minimum deposits and balance requirements, transfer limitations, and any other standout features.
Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.
See our full ratings methodology for checking, business checking, savings, and money market accounts »
Sophia Acevedo is a banking reporter at Insider. She covers bank reviews, banking guides, and banking and savings articles for Personal Finance Insider. She is also a Certified Educator in Personal Finance (CEPF).
Sophia joined Insider in July 2021 and is an alumna of California State University Fullerton where she studied journalism and minored in political science. She is based in Los Angeles.
You can reach out to her on Twitter at @sophieacvdo or email [email protected].
Read more about how Personal Finance Insider chooses, rates, and covers financial products and services>>
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Compliance Associate
Evelyn He is a compliance associate at Insider who supports the Personal Finance Insider team. Personal Finance Insider is Insider’s personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that Insider readers already know and love.
The compliance team’s mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.
Before joining Insider, she served in various legal and compliance roles in different industries, including the legal and pharmaceutical industries.
Evelyn obtained her M.S. degree in Marketing at Boston University in 2022. Prior to combining and consolidating her knowledge of law and business, she spent one year finishing 1L courses at Suffolk University Law School to further her legal knowledge. She has also completed MBA business law courses while working on her Bachelor of Business Administration in Management at the University of Massachusetts, Amherst.
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