Banks Paying the Most Interest on Savings Accounts
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Growing up in the Midwest, we had limited options for banks. So my first banking experience was with Wells Fargo. Yeah, yikes.
I, fortunately, was unaffected by any of the Wells Fargo scandals, but they still completely lost my trust as a customer. I’m far more careful now about who I use for my banking. Every bank has its benefits, and one of those is to make you money via interest earned. Officially, this is called APY or Annual Percentage Yield.
Here’s a breakdown of banks paying the best rates on savings accounts.
In this article
Overview of the best banks paying the most interest on savings accounts
Bank | Best for… |
Capital One | Long-distance travelers in search of ATMs |
Cit Bank | Those burning the midnight oil in need of 24-hour banking |
American Express | Savers who value traditional banks with a long history |
Marcus by Goldman Sachs | The money mover who needs an extra bank account |
LendingClub | Savers looking for the best of both worlds with savings and CDs |
UFB Direct | Those looking for great APY on savings accounts |
Discover | Savers seeking good credit rewards |
Synchrony Bank | Those on the lookout for a great CD account |
Ally Bank | Savers who value built-in organization and free tools |
Axos | Those are excited by biometric security features |
Barclays | International travelers looking to move to the UK |
TAB Bank | Truckers looking for one-stop online banks tailored for them |
The best banks paying the most interest on savings accounts
Capital One
You might be more worried about easy access than high yielding. In that case, Capital One would fit your needs.
Capital One is a national bank offering traditional savings accounts online and mobile banking. With one of these accounts, you can access a network of over 70,000 fee-free ATMs stretching across the US. And its mobile app works well, gaining great ratings on Google Play and the App Store.
Capital One’s 360 Performance Savings accounts offer FDIC-insured high-yield online savings at APY. Overall, this bank can potentially bring easy access to savings to travelers. But if you like brick-and-mortar banks, you’ll need to live in Boston, New York City, or one of the five other cities where branches are located.
Read a full review on Capital One banking.
CIT Bank
For those who work night and evening shifts, scheduling a bank visit around sleep and work is a hassle. An easy solution is a bank that is 100% online. CIT Bank has no physical branches; instead, they provide services through its website and mobile app.
CIT Bank offers three savings account options — Savings Connect, Money Market, and Savings Builder. The highest APY is offered through Savings Connect at . This account comes with the convenience of online banking and mobile deposits. Additionally, the bank is FDIC insured with no maintenance fees. The one downside is that you must make a minimum opening deposit of $100.
One thing to note, CIT Bank does not issue checks. You’ll have to use a card or cash from an ATM for any payments you make. Fortunately, the bank reimburses up to $30 monthly for ATM fees. That could quickly run out depending on how often you use an ATM.
Another thing to be aware of is issues with its mobile app. The app has done fairly well on Google Play and The App Store, but many reviewers complained about accessibility and login issues.
American Express
Sometimes, going for a national bank with a long track record is a good idea. American Express has been in business for 172 years and has been accredited by the Better Business Bureau since 1948. (And they have an A+ rating.)
American Express offers a great APY for its High Yield Savings accounts at . And it requires no minimum deposits for its savings accounts.
American Express has locations across the U.S. in Palo Alto, California, Phoenix, Salt Lake City, and a few more. However, you can also access them through online banking and its mobile app. The Amex app has done well on both Google Play and the App Store, garnering over four stars on each platform.
In addition to everything else, American Express also offers a rewards checking account. While this account is only available to members of three months or more, it does have some benefits.
Marcus by Goldman Sachs
If you’ve already set large savings goals, putting your money where you have less access is a good idea. This way, your money can grow without being tempted to withdraw regularly. This is where Marcus by Goldman Sachs comes in, offering good APY on both savings and CDs.
I recommend using Marcus by Goldman Sachs as a second bank. Why? Well, this financial institution doesn’t use cards. You can still deposit checks, but you access your deposited money by wire transfers or online. This means you should probably have another bank you use for everyday expenses. The upside is you can use this as a savings account you don’t want to dip into, like an emergency fund.
Marcus by Goldman Sachs offers APY on its high-yield savings. The bank requires no minimum deposit for savings. In addition to its financial offerings, the bank supplies consumers with multiple tools for calculating savings and compound interest. They also offer financial products like MarcusPay.
LendingClub
A good, balanced bank will have great APY for both savings and CDs. If you have no shortage of cash, look no further than LendingClub.
LendingClub offers a high-yield savings account at APY. The savings account requires a $100 initial deposit to open, but no minimum account balance is required after that. Additionally, LendingClub offers pretty nice rewards checking accounts requiring an initial deposit of $25 to open.
LendingClub seems to be keeping up with a high volume of BBB complaints and responding satisfactorily. Its app has done well on the App Store but seems to have struggled on Google Play, earning 3.6 stars.
The higher your balance, the more you’ll earn.
- 4.55% APY on balances of $5,000 or more
- 0.25% APY with a balance of less than $5,000
- Get started with as little as $100
UFB Direct
Do you need more access to your funds over everything else? Then UFB Direct has a savings account for you.
UFB Direct offers the highest APY on this list for savings accounts at APY each. They offer two options: an Elite Savings or an Elite Money Market account.
The Elite Savings account is good for those looking to stow away small amounts of money. The account has no maintenance or monthly service fees, no minimum balance requirements, and comes with a free ATM card. They also offer free transfers between direct deposit accounts, so you can link another account to raise more savings.
Discover
Discover would be a good fit if you want a savings account that can open the door for good rewards. Discover offers a decent online savings account with APY.
Banks often offer your credit card application more consideration when you bank with them. And Discover is well-known for its cash-back rewards. They offer a wide selection of credit cards with options tailored to your specific needs.
It also has a great free savings calculator on its website that factors in earnings from interest. If nothing else, this is a great tool to see how much you could save over time.
Discover’s online savings account comes with mobile check deposits and instant transfers between Discover accounts (or 4-5 day transfers between other institutions).
Synchrony Bank
A higher CD would be a good idea if you have some cash. Synchrony offers a good high-yield savings account at APY. This account also requires no minimum deposit or balance. They also charge no monthly maintenance fees. Do note that the user agreement mentions liability for fees several times without outlining those fees.
Traveling a lot lets you access your account through over 400,000 ATMs nationwide.
Unfortunately, you will pay ATM fees because they are other banks’ ATMs. Synchrony does reimburse up to $5 in ATM fees per month, but that’s not much compared to other banks. However, the combined great CD and good savings account could be worth it.
With 90 years of business, Synchrony knows what it’s doing. Its mobile app has done well on Google Play and the App Store.
Read a full review on Synchrony.
Ally Bank
If organization is important to you, Ally Bank has the best system. If you’ve heard of the envelope method, you’ll love its buckets for savings accounts. Ally Bank allows you to divide your savings account into 10 buckets for categorizing your savings. Its buckets also track how far you’ve progressed toward your savings goals.
Ally also has boosters attached to its savings accounts. You might love Surprise Savings, which deposits "safe-to-save" money into your savings from your checking.
It also has good APY for both savings and Certificates of Deposit. Its savings account is offered at APY, without a minimum deposit.
Ally charges no monthly service fees and outlines its specific fees clearly. And the best part with Ally is that you can withdraw money from 43,000+ ATMs in the U.S. for free, plus Ally reimburses you for fees incurred by other ATMs.
Read a full review on Ally Financial.
Barclays
Planning a move to the U.K.? You’re going to want something that’s trusted both here and abroad. Barclays offers its International Bank Account, which can be opened from the U.S. once you have a U.K. phone number. This account offers access to international wire transfers and the ability to bank using multiple currencies. However, you must have £100,000 or just under $111,000 to open this account.
If you plan to stay in the U.S., Barclays has great savings online. You can create an account online with a TIN or an SSN. Its U.S. savings account offers APY, without a minimum deposit to open.
In addition to its savings accounts, you might access free tools such as its Savings Assistant and CD Calculator. The Savings Assistant can calculate the exact time to save for three savings goals, factoring in compound interest.
If you live in the U.K. without a bank branch near you, they also have a solution for that with the Barclays Van. You can schedule a visit with it, bringing physical banking directly to you.
Read a full review on Barclays.
Best banks paying the most interest on savings accounts summary table
We know that these banks offer great APY. But how do they stack up against each other? Here’s a table breaking down the basics.
Bank | Savings APY | Access | Summary |
Capital One | Online and Major US Cities | Wide range access to bank branches and fee-free ATMs | |
CIT Bank | Online Only | Multiple good CD options, require money to get started | |
American Express | Online and US, Latin America, Europe, Asia-Pacific Region | Long history of banking experience, great long-term CD rates, good credit cards | |
Marcus by Goldman Sachs | Online Only | No fees, option of a no penalty CD | |
LendingClub | Online Only | More expensive but with both high savings and CD APY | |
UFB Direct | Online Only | High APY for savings with fees | |
Discover | Online Only | Access to good credit cards and solid loans | |
Synchrony Bank | Online Only | Highest rate for CD APY with fees | |
Ally Bank | Online Only | Buckets make organization easy without opening additional accounts | |
Barclays | Online or UK | International bank account that can make moving simple |
FAQs
Why get a savings account?
Savings accounts often garner more APY than checking accounts. They’re meant to help you build up your earnings, aside from the funds you use for expenses. You can use a savings account to create an emergency fund or save up for a house. It’s a low-risk way to make money with your money.
What’s the difference between a savings account and a money market account?
Money market accounts generally have higher APY than savings accounts. But they’re basically savings accounts with more rules and more privileges, such as check-writing.
How often can you transfer funds?
Most banks only allow up to six free transfers of funds out of a savings account per month, according to federal law. Be sure to look at your bank’s rules so you’re not racking up fees.
Why is mobile banking important?
In the digital age, we see many banks move to online-only. Brick-and-mortar banks have to pay more for the branches they keep open. It’s far more cost-effective to skip the physical location. But this means consumers must adjust digitally, meaning a move to mobile banking.
The higher your balance, the more you’ll earn.
- 4.55% APY on balances of $5,000 or more
- 0.25% APY with a balance of less than $5,000
- Get started with as little as $100
Why you should consider a bank with a high interest rate
Banks with high interest rates on their savings accounts will help you earn more passive income over time. With an online bank like the ones listed above, you can easily deposit checks and transfer funds to your savings account using an online dashboard or mobile app. And the easier it is to save money, the more you’ll save.
You might also consider saving with a credit union. They’re smaller, and they often offer better APY than banks. They may also be less accessible to you, so if you’re tempted to spend your savings prematurely, that could be a reason to go with a credit union rather than an online bank.
Either way, finalize on an FDIC-insured bank or credit union. This prevents your savings from vanishing.
The bottom line
The digital age has brought myriad options, from brick-and-mortar banks to the full online experience. While this might feel like picking a Netflix movie on a Friday night, don’t fret. Consider your needs and settle down with some consumer and third-party reviews.
You should have a savings account that works for you at the end of your search. And if it doesn’t work out, leave an honest review and transfer your savings cautiously. Some banks charge a fee if you close your account too soon. Always read up on your account agreement before making a move.
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Writer
A veteran wordsmith and research nerd, Brittany Wren spent a decade working in higher education where she helped people overcome challenges to chart a path forward. These days, she writes about personal finance, careers, parenting and education. Her content has been published by a wide variety of brands including T-Mobile, Intuit, LifeLock, Reliant Fund Administration and CURO Financial Technologies Corp.
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