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If you're a saver looking to open a bank account, a high-yield savings account is an excellent option. The best high-yield savings accounts currently pay 4.75% APY or more right now. These accounts also pay better savings rates than traditional savings accounts you'd find at brick-and-mortar banks.
Best Online Savings Account Rates from Our Partners
Account Name | APY (Annual Percentage Yield) Accurate as of 3/6/2024 | Minimum Account Opening Balance |
Western Alliance Bank High-Yield Savings Premier | 5.36% | $500 |
Customers Bank High Yield Savings Account | 5.30% | $1 |
UFB Secure Savings | 5.25% | $0 |
Upgrade Premier Savings | 5.21% (with $1,000 minimum balance) | $0 |
CIT Bank Platinum Savings | 5.05% (with $5,000 minimum balance) | $100 |
Wealthfront Cash Account | 5.00% | $1 |
Estimate Your Interest Earnings
Best High-Yield Savings Accounts of March 2024
We monitor rates daily to find the best high-interest savings accounts in three categories — the best rates overall, accounts that let you earn a high rate with minimal effort (like low minimum deposits and balance requirements), and high rates with popular brands. We have also included a market leader so you know the highest savings rate available throughout local financial institutions.
Our top picks for savings accounts are federally insured by the FDIC or NCUA. Federal insurance protects up to $250,000 per depositor in the event of a bank failure.
DCU Primary Savings Account
DCU Primary Savings Account
Insider’s Rating
4/5
Fees
No monthly maintenance fees
Annual Percentage Yield (APY)
Earn 6.17% APY on up to and including the first $1,000, then earn 0.15% to 6.17% on the remaining balance.
0.15% to 6.17%
Minimum Opening Deposit
$5
Pros
- Low minimum opening deposit
- No monthly maintenance fees
- Earn a high interest rate on the first $1,000 in your account
Cons
- Low interest rate for balances over $1,000
Product Details
- 23 branches in Massachusetts and New Hampshire
- To become a member of Digital FCU, you or a family member must meet one of the following requirements: 1) You work or are retired from a company that is listed as a participating employer; 2) You belong to an organization that is listed as a participating organization; 3) You live, work, worship, or go to school in a select area in a Massachusetts county (Chelmsford, Lowell, Tewksbury, Worcester are eligible counties) or live in a New Hampshire condominium association
- Access to over 5,500 shared branches and 30,000 surcharge-free ATMs through the CO-OP Shared Branch and ATM networks
- Earn 6.17% APY on the first $1,000 in your account
- Interest rate drops on the remaining balance on your account
- Must keep $5 in account to maintain membership status
- Interest compounded and deposited monthly
- Federally insured by the NCUA
The DCU Primary Savings Account is currently the only savings account that offers 6% APY. You can earn 6.17% APY on balances up to $1,000. If you have an account balance above $1,000, the interestrate drops to 0.15% APY. This account doesn't charge monthly service fees.
To open the Digital Federal Credit Union Primary Savings Account, you'll have to meet certain membership eligibility requirements. You must live in select areas of Massachusetts, live in a New Hampshire participating condominium community, work for a Select Employer Group, or belong to a local participating organization.
Digital Federal Credit Union currently has an A+ rating from the BBB. The credit union hasn't been involved in any recent public controversies.
Western Alliance Bank High-Yield Savings Premier Account
Western Alliance Bank High-Yield Savings Premier
Western Alliance Bank, FDIC Insured.
Perks 5.36% annual percentage yield (APY) is accurate as of 01/17/24 and subject to change at the Bank’s discretion. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Accurate as of the time of publication. The national average rate referenced is from the FDIC’s published National Rates and Rate Caps for Savings deposit products, accurate as of 02/20/24. See the FDIC website for more information. https://www.fdic.gov/resources/bankers/national-rates/index.html
Take advantage of today's rates and earn 5.36% APY on your entire account balance – that’s 12 times the national average
Fees
no account activity or maintenance fees
Annual Percentage Yield (APY)
5.36% annual percentage yield (APY) is accurate as of 01/17/24 and subject to change at the Bank’s discretion. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
5.36%
Minimum Opening Deposit
$500
Pros
- High APY
- No account activity or maintenance fees
Cons
- $500 minimum opening deposit
- Can only link to one external bank account
- Can’t use checks or wire transfers to fund account
Insider’s Take
Western Alliance Bank High-Yield Savings Premier pays significantly more than the average interest rate on savings accounts. It may be a good choice if you have at least $500 to open an account.
High-Yield Savings Premier review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- FDIC insured
- Open your account online in five minutes or less
- No account activity or maintenance fees
- Enhanced security by connecting one external account from which money can be moved to and from
- Open with $500 minimum deposit
The Western Alliance Bank High-Yield Savings Premier account offers 5.36% APY on the entire account balance. It has no account activity or maintenance fees. This account might be a good choice if you're looking for an account that does not require a certain amount of money to stay in the account to earn a high interest rate.
This account does require a $500 minimum deposit when opening the account, which is pretty high when compared to many other savings accounts. Additionally, Western Alliance Bank (Member FDIC) is primarily a business bank and doesn't offer many other personal banking services. If you don't have $500 to open the account, or if you'd prefer to do all your banking in one place, this might not be the account for you.
Western Alliance Bank does not currently have a rating from the BBB. It has not had any recent controversies.
Western Alliance Bank High-Yield Savings Premier Review
BrioDirect High-Yield Savings Account
BrioDirect High-Yield Savings Account
Insider’s Rating
4.25/5
Perks You must deposit at least $5,000 to open your account and maintain $25 to earn the disclosed APY.
Earn 5.35% APY when you open a new account with qualifying deposit. No monthly maintenance fees.
Fees
no monthly service fee
Annual Percentage Yield (APY)
5.35%
Minimum Opening Deposit
$5,000
Pros
- High interest rate
- No monthly service fees
Cons
- High minimum opening deposit
Insider’s Take
BrioDirect does offer a competitive savings account rate. The BrioDirect High-Yield Savings Account is great if you have at least $5,000 to open an account. It also has no monthly service fee.
BrioDirect High-Yield Savings Account review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Must maintain at least $1 in account to earn interest
- Interest compounded daily and deposited monthly
- FDIC insured
The BrioDirect High-Yield Savings Account offers a competitive rate of 5.35% APY and doesn't charge monthly maintenance fees. You also might like BrioDirect if you're looking for a 1-year CD that pays more than the national average.
You might consider another bank if you'd like to open a high-yield savings account with a low minimum opening deposit. The BrioDirect High-Yield Savings Account requires $5,000 to open an account.
The BBB also gave BrioDirect's parent company, Webster Bank, aB- rating because it received numerous customer complaints and hasn't resolved one of the complaints.
Webster Bank has also been involved in a recent controversy. In January 2024, Webster paid $1.4 million in a settlement over a class action lawsuit. The lawsuit was over a ransomware attack on Webster Bank that resulted in some customers of the bank having their personal information stolen.
BrioDirect Review
My Banking Direct High-Yield Savings Account
My Banking Direct High Yield Savings Account
Insider’s Rating
4.25/5
Fees
no monthly service fee
Annual Percentage Yield (APY)
5.35%
Minimum Opening Deposit
$500
Pros
- High interest rate
- No monthly service fees
Cons
- High minimum opening deposit
Product Details
- My Banking Direct is an online division of Flagstar Bank
- No interest earned on balances below $1
- Interest is calculated on a simple interest basis and deposited monthly
- FDIC-insured
The My Banking Direct High Yield Savings Account may be a solid option if you have at least $500 to open a savings account. The My Banking Direct High-Yield Savings Account pays 5.35% APY on balances of $1 or more. It also doesn't charge any monthly services.
Keep in mind that a $500 minimum opening deposit is pretty steep compared to other financial institutions. You might consider one of our other top picks if you don't have that much money to deposit upfront.
My Banking Direct is an online bank and part of Flagstar Bank. Flagstar Bank has received an A- ranking because it hasn't responded to one complaint. It hasn't been involved in any recent public settlements.
Customers Bank High Yield Savings Account
Customers Bank High Yield Savings Account
Raisin, FDIC or NCUA Insured Accounts
Perks
Earn 5.30% Annual Percentage Yield (APY). $1 minimum deposit. FDIC Insured.
Fees
no monthly service fee
Annual Percentage Yield (APY)
5.30%
Minimum Opening Deposit
$1
Pros
- Accounts pay high interest rates
- No fees
- Open accounts you might not be able access outside of Raisin
- Minimum opening requirements are often lower than if you opened an account directly with a bank
Cons
- No checking accounts or business accounts
- Only way to deposit or withdraw money is by connecting to an external account
- Can’t connect to third-party budgeting apps
Insider’s Take
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.
Customers Bank High Yield Savings Account, powered by Raisin review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- 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
The Customers Bank High Yield Savings Account is the highest-yield savings account on Raisin. Through Raisin, you can use one platform to find, fund, and manage multiple high-yield savings accounts and CDs from a variety of banks and credit unions. There are also other savings accounts and CDs available on Raisin that pay 5.00% APY or more, though.
Raisin doesn't have checking accounts, so it's not ideal if you want to do all your banking with the same institution. Also, you'll need to be comfortable with a completely digital experience.
Raisin received a B+ rating from the BBB because there are numerous complaints against the company on the BBB website.
Raisin Review
Ivy Bank High Yield Savings Account
Ivy Bank High-Yield Savings Account
Insider’s Rating
3.75/5
Fees
no monthly service fee
Annual Percentage Yield (APY)
Earn a 5.30% APY with a minimum balance of $2,500 guaranteed through 6/30/2024.
up to 5.30%
Minimum Opening Deposit
$2,500
Pros
- No monthly service fees
Cons
- $2,500 minimum opening deposit
- $2,500 minimum balance to earn highest interest rate
- Residents in California can’t apply for an Ivy bank account
Product Details
- Online division of Cambridge Savings Bank
- To earn 0.05% APY, maintain a minimum balance between $10 and $2,499.99
- To earn 5.30% APY, maintain a minimum balance of $2,500
- Interest compounded and deposited monthly
- FDIC insured
The Ivy Bank High-Yield Savings Account might be a good choice if you have at least $2,500 to open an account. You'll also need to maintain an account balance between $2,500 and $1 million to earn 5.30% APY. Otherwise, you'll only earn 0.05% APY on account balances under $2,500.
Ivy Bank is an online-only division of Cambridge Savings Bank. Anyone in the United States is eligible to open an Ivy Bank account except for California residents.
Ivy Bank hasn't been rated yet by the Better Business Bureau. However, Cambridge Savings Bank has received an A- rating because it has failed to respond to two customer complaints.
TAB Bank High-Yield Savings Account
TAB High-Yield Savings Account
Insider’s Rating
4.5/5
Fees
no monthly maintenance fee
Annual Percentage Yield (APY)
5.27%
Minimum Opening Deposit
$0
Pros
- High APY
- No minimum opening deposit
- No monthly maintenance fees
Cons
- No physical branch locations
TAB High-Yield Savings review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Must maintain $0.01 minimum daily balance to earn APY
- Interest compounds daily to maximize earnings
- FDIC insured
The TAB High-Yield Savings Account pays a high interest rate with no monthly maintenance fee. This account also might be a good choice if you'd like to open a savings account with $0 upfront.
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 anA ratingbecause government action has been taken against the bank.
In 2022, the bank entered anAssurance 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 it provides a 30-day notice to the state and follow the state code.
TAB Bank Review
Newtek Bank High-Yield Savings
Newtek Bank Personal High Yield Savings Account
Start saving
Newtek Bank, FDIC Insured.
Insider’s Rating
4.25/5
Fees
no monthly service fee
Annual Percentage Yield (APY)
5.25%
Minimum Opening Deposit
$0
Pros
- No minimum opening deposit
- No monthly service fees
- No minimum balance requirements
Cons
- No physical locations
Newtek Bank Personal High Yield Savings Account review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Minimum balance of $0.01 needed to earn
- Interest compounded daily and deposited monthly
- FDIC insured
Newtek Bank Personal High Yield Savings Account offers a competitive interest rate and a $0 minimum opening deposit. Newtek Bank also has one of the best 6-month CD rates.
Newtek Bank received an A+ rating from the BBB.
Newtek Bank doesn't have a personal checking account, and you can't get a debit card or ATM card with a high-yield savings account. If you need to withdraw money, you'll have to transfer it to an external bank account.
Newtek Bank Savings Review
UFB SecureSavings
UFB Secure Savings
UFB (Axos Bank), Member FDIC
Perks The Annual Percentage Yield (APY) is accurate as of 03/04/2024. 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.
Earn 5.25% APY on your savings. No monthly maintenance fees. No minimum deposit is required to open an account.
Fees
no monthly service fee
Annual Percentage Yield (APY)
5.25%
Minimum Opening Deposit
$0
Pros
- High interest rate
- No monthly service fee
- No minimum opening deposit
- ATM card included
Cons
- May not be easy to deposit cash (Only cash accepting ATMs)
Insider’s Take
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.
UFB Secure Savings review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Earn up to 5.25% 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 03/04/2024. 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.
UFB Secure Savings might be worth considering if you want easy access to your account. It 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.
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.
UFB Direct Review
Upgrade Premier Savings
Upgrade Premier Savings
FDIC Insured Account
Fees
no monthly service fee
Annual Percentage Yield (APY)
up to 5.21%
Minimum Opening Deposit
$0
Pros
- High interest rate
- No monthly service fees
- No minimum opening deposit
Cons
- Must maintain at least $1,000 in account to earn interest
- May not be easy to deposit cash
- No joint bank accounts
Upgrade Premier Savings review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Fintech company that offers personal loans, credit cards, bank accounts, and credit monitoring tools
- Upgrade Premier Savings is a standalone savings account; Existing Upgrade Rewards Checking customers will have to open an Upgrade Everyday Savings account
- Must maintain at least $1,000 in account to earn interest
- Interest compounded and deposited monthly
- Banking services provided by Cross River Bank, Member FDIC
Upgrade Premier Savings offers a high APY without any monthly fees. Your account is also FDIC-insured, so your money will be safe in this account. Upgrade partners with Cross River Bank to provide this service.
However, Upgrade only offers this high of an APY if you have $1,000 or more in your account. If you don't want to put that much money to put in an account, some of our other choices might be a better pick for you.
Upgrade has an A+ rating through the BBB. However, its partner bank, Cross River Bank, only has a C- rating due to a large number of complaints filed against the business, with some of those complaints unresolved.
In 2023, Cross River Bank entered into a consent order with the Financial Deposit Insurance Corporation. The FDIC says that Cross River Bank didn't properly follow fair lending laws and regulations. Cross River Bank does not admit or deny these claims.
Upgrade Review
BMO Alto Online Savings Account
BMO Alto Online Savings Account
Insider’s Rating
4/5
Perks
No fees or minimum balance requirements. $0 minimum opening deposit.
Fees
no fees
Annual Percentage Yield (APY)
5.10%
Minimum Opening Deposit
$0
Bonus
N/A
Pros
- High interest rate
- No minimum opening deposit
- No minimum balance requirements
- No monthly maintenance fee
Cons
- No mobile app
- Doesn’t accept cash or check deposits
- Cannot visit a BMO Branch for support
Insider’s Take
With no minimum opening deposit or monthly fees, BMO's savings accounts are affordable options for those who’d like to build their savings. BMO Alto offers lucrative interest rates on par with some of the best high-yield savings accounts.
BMO Alto Online Savings Account review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- Interest compounded daily and deposited monthly
- FDIC insured
The BMO Alto Online Savings Account is a good choice if you want to open a savings account with a $0 minimum opening deposit and get a competitive savings rate.
BMO Alto is an online-only division of BMO Financial Group, and it has a high-yield savings account and CDs. You won't be able to visit BMO branches for customer support. That said, customer service is still available 24/7 by phone.
You might consider another financial institution if you prioritize mobile banking. BMO Alto doesn't have a mobile banking app.
BMO has received an A+ grade from the Better Business Bureau. However, the bank has been involved in one recent public controversy.
In 2022, a Minnesota jury ordered the bank to pay $564 million in damagesin a lawsuit involving a Ponzi scheme operated by a Minnesota businessman. That said, the Ponzi scheme was uncovered in 2008 at M&I Bank, and BMO Harris didn't buy M&I Bank until 2011.
BMO Alto Accounts
Betterment Cash Reserve
Betterment Cash Reserve Account
Insider’s Rating
4.25/5
Perks
New customers will earn 5.50% APY (Annual Percentage Yield) for three months, then 4.75% APY. $10 minimum deposit. FDIC Insured.
Fees
no monthly service fee
Annual Percentage Yield (APY)
5.50% APY for new customers' first three months, then 4.75% APY
Minimum Opening Deposit
$10
Pros
- Competitive APY
- $10 minimum deposit
- No minimum balance requirements
- No monthly service fees
- No transaction limits
- FDIC insured for up to $4 million
- Create savings goals
- The "two-way sweep" moves extra money from checking to cash reserve to help you save
Cons
- No physical branch locations
- Mobile check deposit is limited to certain customers
- You can only deposit up to $1,500 in paper checks per day
- No way to deposit cash
Insider’s Take
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.
Betterment Cash Reserve Account review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- 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
The Betterment Cash Reserve Account is offering a promotional APY boost to new customers. With the APY boost, you can earn 5.50% APY for three months. After the 3-month period, you'll earn the standard rate.
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. Once you make the deposit, the rate on your Cash Reserve Account will be raised by 0.75% APY for 92 days. You cannot have an existing Betterment account. Existing customers will earn the standard rate.
If you're looking for a place where you can save and invest, Betterment may be a strong choice.
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 several 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.
Betterment Cash Reserve Review
Synchrony High-Yield Savings Account
Synchrony High Yield Savings Account
Insider’s Rating
4.75/5
Perks
Earn 4.75% Annual Percentage Yield (APY). $0 minimum deposit. FDIC Insured.
Fees
no monthly service fee
Annual Percentage Yield (APY)
4.75%
Minimum Opening Deposit
$0
Pros
- Competitive APY
- Comes with an ATM card
- No required opening deposit or minimum account balance
- No monthly service fee
Cons
- No physical branch locations
- Only reimburses up to $5 of out-of-network ATM fees per month
Insider’s Take
With a high rate and no fees, the Synchrony High Yield Savings Account is a great option for savers. But if you want to open a checking account to do all of your banking at one place, you may want to consider one of the best online banks instead.
Synchrony High Yield Savings Account review External link Arrow An arrow icon, indicating this redirects the user."
Product Details
- 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
The Synchrony High Yield Savings Account is one of the best online savings accounts because it has no minimum opening deposit, and it charges zero monthly fees. It also comes with an ATM card so you can access your savings quickly. Synchrony high-yield savings ratesand CD rates also make this bank an appealing option.
Synchrony has anA+ ratingfrom the BBB.
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 couple of recent public controversies. In 2023, Synchrony was required to pay $2.6 million in a settlementwhen 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 settlementwhen accused of making unreasonable phone calls to debtors living in California.
Synchrony Bank Review
Best Savings Account Interest Rates
- DCU Primary Savings Account: 0.15% to 6.17% APY
- Western Alliance Bank High-Yield Savings Premier: 5.36% APY
- BrioDirect High-Yield Savings Account: 5.35% APY
- My Banking Direct High Yield Savings Account: 5.35% APY
- Customers Bank High Yield Savings Account, powered by Raisin: 5.30% APY
- Ivy Bank High-Yield Savings Account: up to 5.30% APY
- TAB High-Yield Savings Account: 5.27% APY
- Newtek Bank Personal High Yield Savings Account: 5.25% APY
- UFB Secure Savings: 5.25% APY
- Upgrade Premier Savings: up to 5.21% APY
- BMO Alto Online Savings Account: 5.10% APY
- Betterment Cash Reserve Account: 5.50% APY for new customers' first three months, then 4.75% APY
- Synchrony High Yield Savings Account: 4.75% APY
What to Do When Your High-Yield Savings Account Rate Drops
Interest rates on high-interest savings accounts closely follow the federal funds rate. This means rates are variable and can change several times per year at the whim of the Federal Reserve. Savings rates may go up or drop after a Fed meeting.
If the interest rate on your savings account drops significantly, you may 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 types of 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.
How to Choose the Best High-Yield Savings Account for Your Needs
The interest rate isn't the only thing that matters in a high-yield savings account. When choosing an account, make sure you can afford the minimum deposit. You should also check whether there is a monthly service fee — and if so, find out if you qualify to waive it — or any requirements to earn the highest interest rate. Some institutions also limit the number of monthly withdrawals/transfers you can make from your high-yield savings account before charging you a fee. You want an account that will result in a high interest rate and few to no fees so you can earn as much as possible.
What to Know About the Highest Interest Savings Account Interest Rates
Generally, you'll find the best nationwide savings interest rates at online banks. That said, a local credit union currently offers the highest interest rate on a savings account overall. You may get 6.17% APY on up to $1,000 in your savings if you join Digital Federal Credit Union. Membership, however, is limited to people who live in select areas of Massachusetts, live in a New Hampshire participating condominium community, work for a Select Employer Group, or belong to a local participating organization.
How 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 it is opened. 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.
Typical Interest Rates on High-Yield Savings Accounts
The average savings account in the United States offers 0.46% APY as of March 2024.
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 unionsusually offer higher rates.
High-Yield Savings Account Fees
Depending on where you bank, some savings accounts may charge monthly bank maintenance 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 that some savings accounts do not charge certain fees at all.
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 obtain a high interest rate.
Maximizing Your Earnings with High-Yield Savings Accounts
To maximize your earnings with a high-yield savings account, shop around to find one that pays a high rate and doesn't charge monthly service or excess withdrawal fees for taking money out regularly. You may find it helpful to set up automatic transfers from your checking account to your high-yield savings account. If you receive your paycheck as a direct deposit, you can also ask your employer to send a percentage of your paycheck to your high-yield savings account each pay period. As your balance grows with automatic savings and direct deposits, you'll earn more interest.
Alternatives to High-Yield Savings Accounts
High-Yield Savings Accounts vs. CDs
The best CD rates are comparable to the best high-yield savings account rates. You might prefer a CD if you want to lock in a high rate for a set period of time, because your rate is fixed. You won't risk your rate decreasing as you would with a savings account. But CDs offer less flexibility. You can't put in more money after the initial opening deposit, and you'll pay a penalty if you take out money before the term ends.
If you're trying to decide between CDs versus high-yield savings accounts, your choice could come down to when you need to deposit and/or withdraw money.
High-Yield Savings Accounts vs. Money Market Accounts
Money market accounts are similar to high-yield savings accounts, but they typically make it easier to access your savings. The best money market accounts come with features checking accounts might have, such as an ATM card, debit card, or paper checks.
High-Yield Savings Accounts vs. High-Yield Checking Accounts
High-yield checking accounts are great tools for earning even more interest on your money. But checking account balances are often lower than savings account balances because you use them to spend money. If you're serious about using interest to grow your balance, a high-yield savings account is usually the better bet.
High-Yield Savings Account Frequently Asked Questions
What does APY mean?
APY stands for annual percentage yield. The APY of a savings account will tell you how much money you'll earn in a year, factoring in compound interest.
Should you open multiple savings accounts?
It may be beneficial to open more than one savings account if you're trying to save for multiple savings goals. However, if you think it may be overwhelming to manage multiple bank accounts, you might prefer to keep things simple and stick to one savings account.
What is the highest-paying high-yield savings account?
Digital Federal Credit Union currently offers the highest savings account rate right now, paying 6.17% APY on balances up to $1,000. Credit Union membership is limited to people who live in select areas of Massachusetts, live in a New Hampshire participating condominium community, work for a Select Employer Group, or belong to a local participating organization.
How high will savings interest rates go in 2024?
Savings account rates will likely be highest at the beginning of 2024, and comparable to current savings rates. However, the savings rate forecast for 2024 also indicates rates are expected to drop in 2024 once the Federal Reserve begins to cut rates.
Which bank is giving 7% interest on a savings account?
There are currently no banks that offer 7% interest on their high-yield savings accounts. The highest rate currently offered is a6% APY for savings accounts. This rate can be found at The Digital Federal Credit Union with their Primary Savings Account. It offers 6.17% APY on the first $1,000 you put in the account, and 0.15% APY on the rest.
Can you lose money in a high-yield savings account?
It's safe to keep all of your money in a high-yield savings account if your balance is $250,000 or less (for an individual account) or $500,000 or less (in a joint account). The FDIC and NCUA insure up to $250,000 per owner, per category. So if your bank fails, all of your insured money would be safe. If you have more than the FDIC or NCUA would insure, consider opening a second account at another institution or investing some money if it makes sense for you.
How much will $10,000 make in a high-yield savings account?
Many high-yield savings accounts offer an APY of 5% or higher. With a 5% APY, you would have $10,500 in your account at the end of one year.
Is it worth putting money into a high-yield savings account?
Yes; high-yield savings accounts are a great way to earn a high interest rate on your money while still being able to access it if you need to. Your money is also safe in a high-yield savings account, as it is FDIC-insured up to $250,000 for a single-owner bank account and $500,000 for a joint-owner account.
How much will $1,000 make in a high-yield savings account?
The best high-yield savings accounts pay at least 4.50% APY. In one year, 4.50% APY on $1,000 would add around $45 to your account.
Where can I get 5% interest on my savings account?
Several banks offer a 5% interest rate on their high-yield savings accounts, including Western Alliance Bank, BrioDirect, and Ivy Bank.
Does the interest rate on my savings account change?
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.
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.
- Tania Brown, certified financial planner at SaverLife
- Roger 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 Business Insider
- Mykail James, MBA, certified financial education instructor, BoujieBudgets.com
Here's what our expert panel had to say about high-interest savings accounts. (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, Business 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: How We Chose the Best Savings Accounts
There are many high-yield savings accounts available across financial institutions. 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.
At Business Insider, we aim 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 »
Banking Editor
Sophia Acevedo is a banking editor at Business Insider. She edits and writes bank reviews, banking guides, and banking and savings articles for the Personal Finance Insider team. She is also a Certified Educator in Personal Finance (CEPF).Sophia joined Business Insider in July 2021. Sophia is an alumna of California State University Fullerton, where she studied journalism and minored in political science. She is based in Southern California.You can reach out to her on Twitter at @sophieacvdo or email sacevedo@businessinsider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services >>Below are links to some of her most popular stories:
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Evelyn He is a compliance and operations associate at Business Insider who supports the Personal Finance Insider team. Personal Finance Insider is Business Insider's personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that Business 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 Business 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.Outside of work, she enjoys spending time with her 15-year-old Shih Tzu named Money, and her 5-year-old Bichon named Tibber.
Personal Finance Insider editorial fellow
Kit Pulliam (they/them) is a Personal Finance Insider editorial fellow at Business Insider, specializing in banking. Kit joined Business Insider in January 2024. They cover bank reviews, savings rates, and more.Kit is an alumnus of Vanderbilt University, where they studied English and psychology. Kit previously worked as an editorial specialist at Tax Analysts. They are based in the DC area. You can email them at kpulliam@businessinsider.com.Read more about how Personal Finance Insider chooses, rates, and covers financial products and services >>
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