Which High-Yield Savings Account Is the Best
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Want your cash to grow without the risk of losing money on your investment? Many people with this goal turn to high-yield savings accounts for risk-free returns. While you might have heard about interest rates on bank accounts generating next to nothing for your money, some high-yield savings accounts have yields above 5%. If you secure that rate for your savings account, your $1,000 will turn into $1,050 within a year.
It's no wonder why risk-averse investors turn to high-yield savings accounts for safe returns, but some of these accounts are better than others. This list will explore some of the top high-yield savings accounts for building wealth.
In this article
Overview of the best high-yield savings accounts
High-Yield Savings Account | Best For |
|---|---|
Citizens Access | Personalized guidance on finances |
SoFi Checking and Savings | High APY for Checking Accounts |
Varo | High APY for accessible cash |
CIT Bank Savings Connect | No-Penalty CDs with High Yield |
Primis Savings Account | High Yield with no Minimum Deposit |
CFG Bank | Highest Yields |
Newtek Bank | Short-Term CDs |
The best high-yield savings accounts
Citizens Access
Citizens Access is a digital bank backed by Citizens Bank that offers savings accounts with a yield. These high-yield accounts do not have any fees or hidden costs, and it only takes a few minutes to set up an account.
Online banks like Citizens Access usually give out the highest rates since an online-only approach saves a lot of money. Citizens Access can send you money if you link to a bank account from another financial institution or ask for a check.
A Citizens Access Certificate of Deposit requires a $5,000 minimum deposit to receive the promotional APY. The requirement may be challenging for some consumers, but a APY awaits on the other side. You will end up with a high rate on your savings that turns your $5,000 into $5,225.
Citizens Access doesn't stop at high rates. The bank also offers personalized guidance to improve your finances and advanced security features. Citizens Access has 24/7 fraud monitoring and alerts, SSL encryption, firewalls, and other security measures that add extra layers of protection around your accounts.
Fees: No fees
Where to start: Citizen Access' website
Where is it accessible: Any U.S. citizen or lawful permanent resident with a valid U.S. address who is 18 years or older can create an account.
Pay off credit card debt and fund your happiness
- Personal loans between $5,000-$40,000.
- Checking your rate is free and won’t impact your credit score.
SoFi Checking and Savings
SoFi is a fintech company that was founded in 2011. Since its early beginnings, SoFi has become a financial juggernaut with over 5.7 million members and $73 billion in funded loans. If you get a savings account with SoFi, a APY awaits.
On top of a great APY, SoFi offers more protection than most banks. The company works with multiple partners to give account holders up to $2 million in FDIC coverage. This coverage is higher than the $250,000 FDIC coverage you will find at most banks.
While other banks have high minimum deposits tied to their promotional rates, SoFi lets you start with any dollar amount. You can open up a CD with as little as $0.01. Having no minimum makes it easier to open up multiple CDs. This process, known as CD laddering, lets you periodically access more funds since the maturity dates are spread across the year.
SoFi savings accounts do not have any account fees and come with no-fee overdraft coverage. Getting protection from overdraft fees can save you a lot of money, and the company's 2-day early paycheck program makes it less likely to end up with a negative balance. Doing your banking with SoFi makes you eligible for the cashback program, which rewards up to 15% cash back on qualifying purchases at local businesses. Qualifying members can also receive a sign-up bonus of up to $250 based on their direct deposit activity.
While you can find higher yields with other savings accounts, APY is respectable and lets you access high-yield checking accounts. Checking accounts are optimal for funds you need to use on upcoming purchases, and you can earn APY on those funds if you store them in a SoFi checking account. You still won't have to worry about fees, and SoFi has no minimum balance requirement.
Fees: No fees
Where to start: SoFi's website
Where is it accessible: Any U.S. citizen, lawful permanent resident, or non-resident with a valid U.S. address who is 18 years or older can create an account.
Varo
Varo is an FDIC-insured online bank that lets you access your high-yield savings anytime. You don't have to wait for a CD to expire or worry about fees. Varo has a two-tiered structure for its savings accounts. Everyone is eligible to earn 3% APY, but qualifying members can earn APY on their savings.
If you qualify for APY, you will earn a higher return on your money with Varo than most other options. To qualify, you need to maintain a positive balance in your Varo checking and savings accounts, deposit at least $1,000 per month into your Varo account, and make at least five monthly purchases with the Varo Bank Visa Debit Card.
Varo members have a few ways to achieve those requirements with very little effort. You can set up five low-priced monthly subscriptions on your Varo Bank Visa Debit Card. For your checking account, a positive balance is sufficient. If you have $1 in your checking account, you fulfill the requirement but will need enough funds to cover debit card expenses. Then, it comes down to depositing at least $1,000 monthly into your account.
One caveat with Varo’s interest rate is that the APY only applies to the first $5,000 in your savings account. Every dollar above $5,000 only receives 3% APY. Varo will give you some of the highest returns if you qualify for APY and have less than $5,000 stashed away. However, if you have $10,000 in your Varo account, you will receive APY from the first $5,000 and 3% APY from the remaining $5,000. That averages out to a 4% APY. If you exceed $10,000 in your Varo account, your average APY will fall below 4%.
Some Varo members fulfill the requirements and only put $5,000 into their accounts to secure the highest possible return without resorting to 3% APY. $5,000 at APY is a respectable $250 per year.
Fees: No fees
Where to start: Varo's website
Where is it accessible: Any U.S. citizen or lawful permanent resident with a valid U.S. address who is 18 years or older can create an account.
CIT Bank Savings Connect
CIT Bank is an online bank unaffiliated with Citibank, providing its members with an attractive APY. The mobile banking app is a division of First Citizens Bank with over 125 years of experience. The account minimum is a generous $100 if you want to start earning a risk-free APY on your extra cash.
While CIT Bank focuses on their APY CD, you can receive a higher rate if you put it in a no-penalty 11-month CD with a $1,000 minimum opening deposit. You won ’t have to worry about opening or maintenance fees with this FDIC-insured account. No penalty CDs let you lock in the rate while keeping the key if you need to access any of your funds.
CIT Bank savings rates get higher if you pick shorter-term CDs. You can receive APY on a 6-month CD. A short-term CD can make sense if you envision yourself needing the money soon. Not everyone can wait a year before accessing funds, and you can also consider a CD ladder to make some of your funds accessible sooner.
The account setup process is straightforward. CIT Bank will invite you to fill out some basic information and fund your account. A CIT Bank Savings Account requires a $100 minimum deposit.
Fees: No fees
Where to start: CIT Bank's website
Where is it accessible: Any U.S. citizen or lawful permanent resident with a valid U.S. address who is 18 years or older can create an account.
Primis Savings Account
A Primis Savings Account has one of the highest APYs in the industry. You can secure APY if you open a savings account and only need $1. Primis also does away with service fees and transaction limits, giving you more control over your money.
A competitive interest rate is a great start, but the bank has more to offer. Consumers can get personal loans, credit cards, checking accounts, and other financial products through Primis. The company’s credit card has a 0% introductory APR for the first 12 billing cycles on purchases and transfers. The low APR makes debt more manageable, but pay it off before the 12th billing cycle concludes. Their cards do not have any annual fees.
Primis lets you skip through the hoops and get started with a loan as low as $2,500 if you want a personal loan. Personal loans are unsecured financing, so you don’t have to put up any collateral. Primis checking accounts have no overdraft fees, free ATM use, paychecks two days early, and only require $1 to open.
Primis offers several financial products and acts as an all-in-one stop for its members. The savings rate is among the most competitive.
Fees: No fees
Where to start: Primis Bank's website
Where is it accessible: Any U.S. citizen or lawful permanent resident with a valid U.S. address who is 18 years or older can create an account. Primis Bank deposit accounts are unavailable in Puerto Rico or other U.S. territories.
CFG Bank
CFG is one of the few banks that offers a high-yield savings account above 5.00% APY. While Varo requires that you jump through a few manageable hoops, CFG Bank cuts right to the chase with a APY high-yield money market account. If you want a 12-month CD instead, you will end up with APY.
While these rates are among the best in the banking industry, you must fulfill minimum balance requirements to obtain and keep those rates. A high-yield money market account requires a $1,000 minimum deposit and a minimum daily balance of over $1,000 to maintain a high interest rate. This account does not have check-writing privileges, but you can add more deposits anytime.
Each CFG Bank CD requires a $500 minimum investment, and you must maintain that balance to keep the high interest rate. The CDs range from 12 months at APY to 60 months at 4.20% APY. It’s the current standard for interest rates to get lower as you secure more years on the CD, but 4.20% APY over five years is higher than average. Many banks don’t give their members much higher than 4% APY for their 12-month CDs.
You cannot make additional deposits after opening a CD with CFG Bank, but you can reinvest the interest payments. If you want to deposit more funds into your CD to capitalize on high rates, you must create an additional CD and have enough money for the $500 minimum deposit requirement.
Fees: No fees
Where to start: CFG Bank's website
Where is it accessible: Any U.S. citizen or lawful permanent resident with a valid U.S. address who is 18 years or older can create an account.
Pay off credit card debt and fund your happiness
- Personal loans between $5,000-$40,000.
- Checking your rate is free and won’t impact your credit score.
Newtek Bank
Newtek Bank is one of the few financial institutions that readily promotes a high-yield savings account with APY. The business-first bank requires no minimum balance, no monthly fees and no hidden fees.
It also offers competitive CDs with 4.60% APY on a selection from one- to 15-months. The rates drop to 4.00% on 18- and 24-month CDs and further down to 2.00% on 36- and 60-month CDs, but for short-term savings, the rates are higher than many traditional bank offerings.
Fees: No fees
Where to start: Newtek Bank's website
Where is it accessible: Any U.S. citizen or lawful permanent resident with a valid U.S. address who is 18 years or older can create an account.
Related: Best No-Fee Savings Accounts (That Are Also High APY)
Summary of the best high-yield savings accounts
High-Yield Savings Account | APY | Minimum Deposit Requirement |
|---|---|---|
Citizens Access | $5,000 | |
SoFi High-Yield Savings | No minimum deposit requirement | |
Varo | for the first $5,000 if you qualify. 3% APY for everything else | No minimum deposit requirement |
CIT Bank Savings Connect | $100 | |
Primis Savings Account | No minimum deposit requirement | |
CFG High-Yield Money Market Account | $500 | |
Newtek Bank | $2,500 |
FAQs
Are high-yield savings accounts risky?
High-yield savings accounts provide risk-free returns. A different investment could earn a higher return, but high-yield savings accounts remove risk.
Which high-yield savings account is the best?
Of the banks examined in this article, CFG Bank has the highest APY across its high-yield savings accounts. Few banks can compete with 5.12% APY, but it is good to look at the strengths of other banks before moving funds from one bank to another.
How much will $1,000 make in a high-yield savings account?
The amount you earn in a high-yield savings account depends on the principal and APY. If you have $1,000 in an account with a 4% APY, you will earn $40 in one year. Your earnings go up to $50 if you have a savings account with a 5% APY.
Why you should (or shouldn’t) use a high-yield savings account?
A high-yield savings account gives you a risk-free return on your investment. With interest rates rising and banks needing to keep their members happy, CD rates have increased significantly over the past year. Consumers can get risk-free annual returns of 4%, with some banks offering more than 5% APY for their savings accounts.
However, a high-yield savings account may not be the best choice if you prefer to invest your money into assets, can’t access your money for a long time, or don’t like the minimum deposit requirement. Some banks make it as easy as possible and have removed minimum deposit requirements and restrictions to capital. You can get a no-penalty CD or partner with an online bank that lets you freely take funds from your high-yield savings account.
Some banks have minimum deposit requirements above $1,000, and although those banks can be legitimate, it’s a steeper hill for consumers to climb. Many banks offer similar APYs without requiring that you put up thousands of dollars upfront.
Many banks don’t have fees for opening accounts and even have generous maintenance requirements or none at all. However, you should look at the bank's fees for overdrafts and other incidents if you plan to use them in the long run. However, you can also find a great APY, store your savings in that account, and use another bank account for your day-to-day expenses. Keeping a high-yield savings account out of sight can make you less prone to withdrawing.
Pay off credit card debt and fund your happiness
- Personal loans between $5,000-$40,000.
- Checking your rate is free and won’t impact your credit score.
The bottom line
Not everyone wants to invest in the stock market or buy real estate. Even if you buy into those assets, keeping some of your cash on the sidelines makes sense to cover emergency expenses and reduce risk. While that cash sits in your bank account, it can earn a solid return.
While bank accounts have gotten a bad rap for low savings rates, many high-yield accounts let you reap 4% APY, and some even let you exceed 5% APY. Rates may not be high this long, but cautious investors can get respectable risk-free returns while they are.
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Writer
Marc Guberti is a business freelance writer who specializes in personal finance, digital marketing, and entrepreneurship. His award-winning book "Content Marketing Secrets" teaches readers how to create, promote and optimize content for growth and revenue. Marc also hosts the "Breakthrough Success Podcast," where listeners learn how to master content marketing and get more clients.
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