Best High-Yield Savings Accounts
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High-yield savings accounts remain popular for building up funds for emergency use, vacations, special purchases, and other financial needs. In the past, many standard banks offered decent savings account interest rates for holding your money. But now online banks, unburdened by costs associated with a branch footprint, offer rates that far surpass those traditional financial institutions offer.
After the steady increase in Fed interest rates, banks and financial institutions have increased their offerings with some of the highest interest rates seen in decades.
In this article
Better banking is here.
- No account fees
- Earn up to 4.20% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Overview of the best high-yield savings accounts
- Best for no fees or minimums: Capital One 360 Performance Savings Account
- Best for high APY: Citi® Accelerate Savings
- Best for same-day fund transfer: Marcus Online Savings Account
- Best for easy access to money: American Express High-Yield Savings Account
- Best for no fees: Discover Online Savings Account
- Best for savings goals: Ally Bank Online Savings Account
- Best for mobile access: Vio Bank Online Savings Account
- Best for a trusted brand: Barclays Online Savings Account
- Best for savings boosters: Varo Savings Account
- Best for ATM access: Synchrony Bank High Yield Savings Account
Comparing the high-yield savings accounts
Bank | Opening deposit | APY | Online, physical branch or both | Fees |
$0 | Both | $0 | ||
$0 | Both | $4.50 monthly service fee unless linked to a Citi checking account or maintain an average monthly balance of $500+ | ||
$0 | Online | $0 | ||
$0 | Online | $0 | ||
$0 | Online | $0 | ||
$0 | Online | $0 | ||
$100 | Online | $0 if paperless | ||
$0 | Online | $0 | ||
$0 | Online | $0 | ||
$0 | Online | $0 |
Best for no fees or minimums: Capital One 360 Performance Savings Account
APY:
With a current interest rate of APY, the Capital One 360 Performance Savings Account is perfect if you want to save for a future expense or have an emergency fund.
Capital One 360 Performance Savings Accounts have no fees or minimum to maintain. It also pays interest on checking and savings accounts that are higher than traditional banks offer. Both benefits allow you to get the most out of your money without worrying about fees or seeing your money sit in an account without earning any interest.
Capital One also has plenty of ATMs and mobile banking options to get money on the road or pay your bills from anywhere. It doesn’t have bank branches in every state, so you may need to become comfortable with online banking.
Capital One’s checking and savings accounts are worth trying because they’re free. That’s not something you often hear from banks.
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Or read Joywallet's review of Capital One.
Best for highest APY: Citi® Accelerate Savings
APY:
Citibank is one of the oldest financial institutions in the United States and remains in the top five rankings of nationwide banks. Although branch locations are limited throughout the country, Citibank does a great job connecting to customers online and offering all the services you might need through digital apps. It also offers one of the highest returns at .
If you’re looking for a strong national bank with access to digital tools and a high-yield savings account, Citibank might be the right choice for you. If you require a more personal touch or want to opt out of monthly fees, you might want to look locally or at other online banks.
Visit Citibank
Or read Joywallet's review of Citi Checking and savings account.
Best for same-day fund transfer: Marcus Online Savings Account
APY:
With an APY of , Marcus by Goldman Sachs doesn’t require a minimum deposit to open or maintain your high-yield savings account to avoid fees. In fact, you will not incur any monthly maintenance fees, and you can make unlimited withdrawals. When you need your money, you can make same-day transfers of less than $100,000; however, the bank you transfer the funds to may impose restrictions on when you can withdraw the money. But if you'd like to earn interest, Marcus requires that you have at least $1 in your account.
As an online financial institution, Marcus by Goldman Sachs provides access to your account through its website, mobile app, and phone. Although you can reach customer service by phone or using the online chat feature, customer service is unavailable 24/7.
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Best for easy access to your money: American Express High-Yield Savings Account
APY:
With American Express National Bank, your high-yield savings account earns an above-average percentage yield — currently — without any monthly fees or minimum balance requirements.
Unlike a traditional savings account, you won’t receive an ATM or debit card or have check-writing capabilities. Still, savers can make up to nine free withdrawals or monthly transfers to access your money. If you set up the transfer from your American Express online account, you may qualify for express transfers that may occur on the same day.
To add money to your savings account, you need to link another account to transfer funds, set up a direct deposit, or mail a check. You can initiate transfers by logging into your online banking account. There is no mobile app at this time.
If you need customer service, you can talk with a representative at any time by phone, and, as a nationwide operator, accessibility is high.
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Best for no fees : Discover Online Savings Account
APY:
Another account with no monthly fees or minimum balance requirements, the Discover online savings account currently offers a percentage yield of . In addition to no monthly fee, you also won’t be charged for insufficient funds, official bank checks, stop payment orders, returned items, or excessive withdrawals.
However, if you frequently exceed your allowed number of transactions (currently six per month), Discover may close your account. In addition, any outgoing wire transfer from your account incurs a $30 service charge.
When accessing your account online or using the mobile app, you can check your account balance or set up transfers. With the mobile app, you can also deposit a check by snapping a photo of it. Other ways to deposit funds into your account include online transfers, direct deposit, and mailing a check.
To withdraw money from your savings account, you can transfer funds to another bank account, set up a wire transfer, or request an official bank check. You are limited to six withdrawals per month, although the number of official checks you can receive is unlimited. In addition, there is no fee for expedited delivery of official checks.
If you need assistance, customer service is available 24/7 by phone, or you can mail the bank. Of course, Discover is known for credit cards and a host of financial products.
Visit Discover
Or read Joywallet's review of Discover Bank.
Best for savings goals: Ally Financial Online Savings Account
APY:
Regardless of your account balance, with an Ally online savings account, you will earn a rate of on your money. With no monthly fees, no initial deposit requirement, and no required minimum balance, this is a great option for anyone, regardless of their financial standing.
When accessing your account online or using the mobile app, you can use Ally’s “buckets” to organize your money based on specific savings goals. You also can implement “boosters” such as recurring transfers you set up or “surprise savings” transfers initiated by Ally to increase your savings.
With Ally, you can open a free checking account to quickly transfer funds from savings to checking, which you can access using checks, a debit card, or at an ATM.
If you need to talk with someone, 24/7 customer support is available by phone, online chat, or email.
Visit Ally Financial
Or read Joywallet's review of Ally.
Better banking is here.
- No account fees
- Earn up to 4.20% APY
- Up to 2-day-early-paycheck
- No-fee Overdraft Coverage.
- Do it all in one app.
- Up to $2M of additional FDIC insurance through a network of participating banks.
Best for mobile access: Vio Bank Online Savings Account
APY:
Vio Bank’s high-yield online savings account requires $100 to open a new account. It does not incur monthly fees unless you opt for paper statements, which cost $5. If you exceed the maximum of six monthly withdrawals, you will be charged $10 per excessive withdrawal. While it has a low APY, it's Cornerstone Money Market offers APY.
Deposits can be made to your account through transfers from another bank account, by depositing a check using the mobile app, or by mailing a check to Vio Bank’s office in Oklahoma City. Vio Bank typically holds incoming deposits for five business days.
When sending money out from your savings accounts, external transfers may take up to five business days to process, so you won’t get your money quickly. It’s also possible the receiving bank may put a hold on when you can obtain your money, adding to the delay in getting your funds.
You can access your account online or using the mobile app to view real-time account information, see e-statements, or make transfers. You can call the automated phone service or talk to a customer service representative during daily business hours if you need customer service.
Visit Vio Bank
Or read Joywallet's review of Vio Bank.
Best for a trusted brand: Barclays Online Savings Account
APY:
Barclays is one of this group's highest high-yield savings accounts, currently offering a percentage yield of . It also does not charge monthly fees or have minimum balance requirements.
You can set up online transfers, direct deposit, or mail a check to add to your savings. You also can upload an image of your check from your computer, laptop, or mobile device. Transferring money from your savings account could take up to three business days to land in your receiving account.
Account access is available online or through the mobile app. In addition to deposits and withdrawals, you can see your account information, add external bank accounts for transfers, view statements, and update your personal information.
Using the Barclays savings assistant, you can input your savings goals and such factors as how much you want to save, how much you can contribute each month, and your current savings amount to calculate when you’ll reach your goal. You can adjust these numbers to determine your desired timeframe and help set you up with an emergency fund.
Visit Barclays
Or read Joywallet's review of Barclays.
Best for savings boosters: Varo Savings Account
APY:
With an APY of 3.00%, a Varo savings account has no monthly fees or minimum balance requirements. You can deposit money into your account through direct deposits, transfers from other bank accounts or digital wallets (PayPal, Venmo, etc.), or cash deposits at Green Dot locations. Varo also allows customers to qualify to earn up to on up to $5,000, if they provide a direct deposit totaling $1,000 or more and end the month with a positive balance in both a Varo Bank Account and Savings Account.
Varo also offers two programs to boost your savings automatically. “Save Your Pay” will transfer a percentage of your direct deposits in your regular bank account into your savings account. Using “Save Your Change,” Varo will round up all transactions in your regular account to the nearest dollar and transfer that amount into your savings account.
Visit Varo
Or read Joywallet's review of Varo Bank.
Best for ATM access: Synchrony Bank High Yield Savings
APY:
With a current interest rate of , Synchrony Bank’s high-yield savings account offers the highest savings rate. It does not have any monthly fees or minimum balance requirements. You can deposit funds in your account through transfers, mobile check deposits using the app, direct deposits, or mail checks to the bank’s Atlanta address.
In addition to transferring your money to other accounts, you can withdraw funds by phone or using an ATM card, which you can request from Synchrony Bank. ATM withdrawals are free when using in-network ATMs; you also can receive ATM fee reimbursement of up to $5 per statement cycle.
Account access is available both online and through the mobile app. Customer service is available through online chat, phone, and mail.
Visit Synchrony Bank
Or read Joywallet's review of Synchrony Bank.
We make it easy for you to start building your savings
- 4.80% APY
- Comes with a card for ATM withdrawals
- $1 minimum to open
- For new customers
What is a high-yield savings account?
A high-yield savings account is a type of savings account that typically offers a higher interest rate than a traditional savings account. Online banks or credit unions often offer these accounts and are designed to help consumers earn more interest on their savings.
The interest rates on high-yield savings accounts can vary, but they are generally higher than those traditional savings accounts offer. Some accounts may offer an interest rate several times higher than the national average, which can help consumers earn more money on their savings over time.
In exchange for the higher interest rate, high-yield savings accounts may have some restrictions, such as a minimum balance requirement or limits on the number of withdrawals per month. It's important to review the account terms and conditions carefully to understand the requirements and any potential fees associated with the account.
Overall, a high-yield savings account can be a good option for consumers who want to earn more interest on their savings while keeping their money accessible and liquid.
Lowest-yield savings accounts
While banks and financial companies may tout rising interest rates, not all percentage yields are equal. For example, Axos Bank is a digital bank offering "high-yield savings" at . That's well below the nearly 4% rates offered by several digital and traditional banks. Then again, as a digital bank, it's much higher than big banks. For example, Chase and Bank of America start their savings yields at 0.01%, a drop in the bucket.
It's a good idea to shop around and compare rates from multiple financial institutions to find the best APY for your savings. Keep in mind that interest rates can change over time, so it's important to monitor your account and review your options regularly to ensure you get the most out of your savings.
Average percentage yield of savings accounts
A savings account's average annual percentage yield (APY) can vary depending on the type of account and the financial institution offering it. As of October 2024, the national average annual percentage yield for a savings account in the United States is around 0.58%, according to Bankrate.
However, it's important to note that some banks and credit unions may offer higher rates, especially for high-yield savings accounts. These accounts may have restrictions, such as minimum balance requirements or a limit on the number of withdrawals. Still, they can offer a higher percentage yield and help consumers earn more interest on their savings over time.
It's a good idea to shop around and compare rates from multiple financial institutions to find the best percentage yield for your savings. Keep in mind that the interest rates offered by savings accounts can fluctuate over time, so it's important to monitor your account and review your options regularly to ensure that you are getting the most out of your savings. Each of these high-yield savings accounts is member FDIC-insured, so your savings (up to $250,000) are protected. In addition, interest compounds daily and is deposited into your account monthly. Plus, most of these accounts can be set up and opened within minutes.
Why you should (or shouldn’t) use a high-yield savings account
Most of these high-yield savings accounts are a good choice if you want to earn interest, particularly if you don’t plan to dip into your savings very often. Although you won’t get rich off the interest, it’s much better than the rates offered at most brick-and-mortar banks. The lack of fees also adds to the appeal of these accounts.
Because the interest rates change, you may receive a lower interest rate on your high-yield savings account than you initially received when you set up your account. Of course, the opposite is true as well. If your interest rate drops and remains low, you can shop with other banks to see if they offer better high-yield interest rates on their savings accounts.
If you want quick access to your money, you should seek out a high-yield savings account that offers same-day transfers or ATM access. Many online banks take up to three days to transfer funds to another account. For those that do offer immediate access, you may incur a fee to get your money.
FAQs
How often do high savings rates change?
Savings rates can change frequently and may be influenced by a variety of factors such as changes in the economy, the Federal Reserve's monetary policy, or the bank's own financial situation. The frequency of rate changes can vary widely depending on the bank and the type of savings account. Some banks may adjust their rates on a daily basis, while others may do so less frequently, such as once a month or quarterly.
What is the difference between a high-yield savings account and a money market account?
While both a high-yield savings account and money market account earn interest on your money, it’s easier to access those funds with a money market account. (The same goes with certificates of deposit.) These personal finance accounts often come with checks, debit cards or ATM cards so you can make withdrawals as needed. Both performance savings account types do have withdrawal limits, though, so it’s important to keep those in mind to avoid incurring fees.
Are high-yield savings accounts FDIC-insured?
Federal Deposit Insurance Corporation (FDIC) provides federal protection in the event of a bank’s collapse. If your high-yield savings account is with an FDIC-insured bank, then your account also is insured. However, the FDIC only insures up to $250,000 per depositor per ownership category at each FDIC-insured bank. Therefore, if you have a total of $250,000 in your accounts with one bank, you should consider opening up additional accounts at different financial institutions to protect all of your assets.
Why are most high-yield savings accounts online?
Most high-yield savings accounts are offered online because online banks have lower overhead costs than traditional brick-and-mortar banks. This allows them to offer higher interest rates on savings accounts without sacrificing profitability. By operating solely online, these banks save on the costs of maintaining physical branches and paying for other overhead expenses, such as rent, utilities, and staff salaries.
In addition, online banks are able to offer more competitive rates by attracting a larger customer base from across the country. Without the geographical restrictions of a physical branch network, online banks can offer their products and services to customers nationwide, which allows them to pool deposits from a larger customer base and generate more interest income.
Finally, the rise of digital banking has made online banking more convenient and accessible than ever before. With features like mobile check deposit, 24/7 customer service, and easy online account management, online banks have become a popular choice for consumers who value convenience and flexibility.
What is the downside of a high-yield savings account?
One potential downside of a high-yield savings account is that the interest rate may not remain consistently high. These types of accounts often offer higher interest rates than traditional savings accounts, but the rates are variable and can change over time. If the interest rate drops, you may earn less interest on your savings than you had expected.
Another potential downside is that there may be restrictions on accessing your money. Some high-yield savings accounts require a minimum balance or limit the number of withdrawals or transfers you can make each month without incurring fees or penalties. This can make it difficult to access your money quickly in case of an emergency.
Lastly, the high interest rates offered by high-yield savings accounts may still be lower than the inflation rate. This means that the purchasing power of your savings may decrease over time, as the cost of goods and services increases faster than the interest you earn on your savings.
The bottom line
High-yield savings accounts offer a great way to boost your savings with higher interest rates than standard ones. Because most of these accounts don’t have monthly fees or minimum balance requirements, it’s easy to start with them and build up your savings over the long term.
Plus, given these high-yield savings accounts are offered through online banks, you can open and maintain your account from anywhere. Most also offer mobile apps to grow your savings on the go.
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Writer
Karon Warren is a freelance writer who has covered articles in finance, insurance and health for sites like Reviews.com, USA Today, Healthgrades, among others.
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