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High-yield savings accounts help you earn a competitive annual percentage yield (APY) on your money. They usually earn many times the yield of the average savings account. Some banks may charge a fee or limit the number of withdrawals or transfers you can make per statement cycle.
The following accounts can be found at most banks and credit unions. They’re federally insured for up to $250,000 and offer a safe place to put your money while earning interest.
CDs are best for individuals looking for a guaranteed rate of return that’s typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.
Checking accounts are best for individuals who want to keep their money safe while still having easy, day-to-day access to their funds. ATM and other transactional fees may apply.
Savings and MMAs are good options for individuals looking to save for shorter-term goals. They’re a safe way to separate your savings from everyday cash, but may require larger minimum balances and have transfer limitations.
Note: Annual percentage yields (APYs) shown are as of Nov. 16, 2022. Bankrate's editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
BrioDirect – 3.75% APY, $25 minimum opening deposit
TAB Bank’s High Yield Savings Account doesn’t require a minimum opening deposit and it doesn’t have a monthly maintenance fee.
Bask Bank, a division of Texas Capital Bank, made its debut in early 2020 with its Mileage Savings Account. Bask has since introduced its Interest Savings Account which offers a very competitive yield and doesn’t require a minimum opening deposit.
Bread Savings is an online bank that offers a high-yield savings account and five terms of CDs. Bread Savings requires at least $100 to open this account.
CIBC Bank USA offers a competitive yield on its Agility Online Savings Account. And it doesn’t have a monthly service fee.
LendingClub Bank’s online savings account doesn’t have a monthly service fee and it will help you earn a top-tier yield on your savings. Although you’ll need to do your banking online, LendingClub Bank offers access to an ATM card so customers can deposit cash and make withdrawals. There is no minimum balance required to earn interest.
Popular Direct - 3.25% APY, $5,000 minimum opening deposit
Popular Direct has been around since 2016. It offers a savings account and eight terms of CDs. The CDs have terms ranging from three months to five years.
PNC Bank - 3.20% APY, $0 minimum opening deposit
The PNC High Yield Savings account offers a competitive yield in certain markets. It requires no opening deposit and charges no monthly service fee.
Sallie Mae Bank - 3.10% APY, $0 minimum opening deposit
Sallie Mae’s High-Yield Savings Account doesn’t require a minimum opening deposit — just like Sallie Mae’s Money Market Account and its SmartyPig savings account.
Citibank - 3.10% APY, $0 minimum opening deposit/$1 minimum for APY
The Citi Accelerate Savings account has a competitive APY in select markets. It’s not available in some larger states, such as California and New York state. The savings account doesn’t require a minimum balance to open the account.
There is a $10 monthly service fee if you have a checking and savings account linked and don’t meet the requirements to have the fee waived.
High-yield savings accounts typically pay a much higher annual percentage yield (APY) than traditional savings accounts, providing savers the ability to earn more on their savings while still enjoying the security of a federally insured account. Traditional savings accounts are offered at some brick-and-mortar banks and larger banks. These accounts tend to yield close to nothing, often around 0.01 percent APY. High-yield savings accounts can yield hundreds of times more these days.
Most high-yield savings accounts have a variable APY, which means the yield is subject to change. Consumers looking for a fixed yield should consider a certificate of deposit, and a no-penalty CD might be a good option for those looking for both a fixed APY and access to their money without incurring a penalty.
High-yield savings accounts help you earn a higher yield than a typical savings account. The national average savings account APY is 0.18 percent. But that’s just the average. There are savings accounts earning even less yield than that — some of which are offered by the large brick-and-mortar banks.
Once you put money in a high-yield savings account, it earns interest. Then the interest, which is typically credited on a monthly or quarterly basis, begins to earn interest. That’s compound interest, and it’s how your money starts to really grow over time.
Here are a few important things to consider when searching for a high-yield savings account. Also take a look at Bankrate’s expert reviews of popular banks that offer high-interest savings accounts when choosing which account is right for you.
One of the most important considerations when choosing a high-yield savings account is the APY.
APY incorporates the effect of compounding: the interest earned on your initial deposit in addition to the interest earned on top of other interest earnings. When it comes to APYs, higher is usually better, but it’s important to weigh the APY against the requirements to earn the yield.
You can use Bankrate’s compound interest calculator to calculate your potential earnings on any savings account.
Minimum deposit amounts vary by bank — some require nothing to open an account, while others require $10,000 or more. Decide how much you can realistically invest when comparing high-yield savings products. If you’re trying to hit a particular goal, consider how much you’re willing to save and over what period of time.
Accounts requiring a higher minimum deposit might not offer the best yields, so it pays to check minimum deposit requirements at all institutions you’re considering before opening an account. Online banks, for example, often require no minimum opening deposit or no minimum balance, and may also come without any monthly maintenance fees.
Not only do some high-yield savings accounts require a minimum deposit to open an account, they may also have a minimum balance required to earn the APY offered or avoid fees.
What’s important to consider when weighing the minimum balance requirements of various high-interest savings accounts is how often you’ll need to access the money, and whether you’ll be able to maintain the balance to earn the APY.
The main fee to look out for with savings accounts is monthly service fees. These are fees that a bank may charge you if you go below a certain balance – or average daily balance – during a statement cycle.
Competitive banks and credit unions have a tendency to adjust interest rates based on the Federal Reserve’s rate decisions.
Unlike CDs, which lock in a rate for a period of time, savings account yields tend to be variable, which means they could change at any time.
A bank may lower or raise savings account APYs for various reasons. It may raise its rate as part of a promotion to attract more deposits, or it may adjust rates in response to broader economic factors, such as changes to monetary policy by the Federal Reserve.
High-yield savings accounts offer a safe place to stash cash for emergencies, large expenses and short-term savings goals while earning interest. The FDIC insures up to $250,000 per depositor, per FDIC-insured bank, per ownership category. This guarantees consumers that their money is safe in the event of a bank failure, as long as it’s within the limits and guidelines.
You can confirm your bank is FDIC-insured by using the FDIC’s BankFind Suite. Meanwhile, if you bank at a credit union, make sure the institution is backed by NCUA insurance.
High-yield savings accounts with no minimum opening deposit requirement, no minimum balance requirement and no monthly service fees can be good options for nearly any person. Different people are going to have different financial goals and be at different stages in their financial life. Here are a few examples:
A high-yield savings account is a great way to have your down payment money growing until you need it to buy a house, condo or apartment. And unlike most CDs, you can add to your balance at any time.
A high-yield savings account allows you to earn a competitive yield on your balance as you save for your wedding. You can keep adding to this account all the way up until you say “I do.” Having a separate account while saving for your wedding can help you more easily monitor your progress to make sure you meet your savings goals for the big day.
Determine how much you’ll need for your next vacation. And then open a savings account to achieve your saving goals.
A savings account allows you to earn compound interest with the ability to add to this account throughout the year. You might want to also set up a split deposit from your direct deposit into this savings account. Or you can set up an automatic transfer from your checking account – or other savings account – into this account to make sure your savings goals stay on track. (Just make sure you’ll always have enough in this other account so you don’t incur overdraft fees.)
Savings accounts are right for many financial goals. Here’s the pros and cons so you can make sure a savings account is right for you.
Whether it’s building an emergency fund or saving for a vacation or another big expense, a high-interest savings account can help you reach your goals. Opening a high-yield savings account is relatively simple, too. Here’s how:
1. Shop around. High-yield savings accounts are offered by online banks, traditional banks that operate branches and credit unions. Online banks typically offer the highest rates because they don’t have the overhead associated with maintaining branches and can pass the savings, in the form of higher rates, along to customers. Along with APY, compare the fees and services to find the right fit for your finances.
2. Fill out an application. Once you’ve chosen a high-interest savings account, you’ll need to fill out an application, whether online or in person. The bank or credit union will likely ask for personal information, including your driver’s license number, Social Security number, mailing address and date of birth.
3. Fund your account. After the application is approved, it’s time to fund the account, which can be done by linking a checking account to the new savings account and transferring funds. Depending on the bank, the new savings account can also be funded with cash, through a wire transfer or by mailing a check. Many banks also permit mobile deposits.
Deposit enough money to meet the account’s minimum deposit requirement, otherwise you may be assessed a maintenance fee or earn a lower than expected interest rate, until the minimum is met.
If you’re unsuccessful in opening a new account, ask the bank why this may have happened. Depending on the answer, you might want to go to ChexSystems’ website and request a report to see whether your banking history is the reason why.
ChexSystems is a national specialty consumer reporting agency that keeps track of some of your banking history. Your check cashing history, any suspected fraud activity and closed accounts are some of the things that may appear on a ChexSystems report.
High-yield savings accounts and traditional savings accounts are similar. High-yield accounts are frequently available online, while some traditional savings accounts, which include both passbook and statement savings accounts, may be restricted to opening and managing at a bank branch.
Also, as the name suggests, high-yield savings accounts typically earn much higher rates than traditional savings accounts, and may require a larger opening deposit and minimum monthly balance requirements. Both accounts are subject to monthly fees, depending on the institution, but many banks offer high-yield and traditional savings accounts that charge no fees.
A high-yield savings account is meant for liquid money that you might need at any time. Besides the flexibility of making withdrawals on demand (though they might be limited per statement cycle), you’re also able to add money to this account anytime.
CDs generally have a term where if you withdrew money from it during that time you’d incur an early-withdrawal penalty. And generally you can’t add money to regular CDs during the CD’s term.
Generally, a high-yield savings account doesn’t permit account holders to write checks against the account, while many money market accounts provide check-writing privileges.
Otherwise, money market and high-yield savings accounts are similar and typically available at FDIC-insured banks. Savings accounts are slightly more common than money market accounts, but many banks offer both.
A high-yield savings account is likely to pay a higher yield than a checking account. Savings accounts might limit the number of withdrawals or transfers that you can make per statement cycle.
Checking accounts are more for transactional purposes – money that will be used to pay bills or other expenses. Generally, checking accounts don’t have monthly transaction limits.
Bankrate’s editorial team regularly updates rates on this page about every two weeks. We mainly look for the highest APYs and break ties using the minimum balance to open a CD. Bankrate’s editorial team has reviewed nearly all of the banks and credit unions that they track. These institutions were selected because they offer competitive APYs, are larger (based on the amount of deposits or assets), frequently appear in internet searches or other possible factors. These banks and credit unions typically offer accounts that are available nationwide. All of these banks are insured by the Federal Deposit Insurance Corp. (FDIC) and all of the credit unions are National Credit Union Administration (NCUA) credit unions, insured by the National Credit Union Share Insurance Fund (NCUSIF).
Bankrate has more than four decades of experience in financial publishing, so you know you’re getting information you can trust. Bankrate was born in 1976 as “Bank Rate Monitor,” a print publisher for the banking industry and has been online since 1996. Hundreds of top publications rely on Bankrate. Outlets such as The Wall Street Journal, USA Today, The New York Times, CNBC and Bloomberg depend on Bankrate as the trusted source of financial rates and information.
These financial institutions are featured in our high yield savings account rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank 5 Connect, Bank of America, Bank of the West, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, BrioDirect, Bread Savings (formerly Comenity Direct), Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Credit One Bank, Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, HSBC, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, LendingClub Bank, Limelight Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Morgan Stanley Private Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, PurePoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees' Credit Union, Suncoast Credit Union, Synchrony Bank, TD Bank, TIAA Bank, U.S. Bank, UFB Direct, Union Bank (California), U.S. Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.