Traditional savings accounts are not the ideal environment to help your money grow over time. According to the FDIC, the national average interest rate for savings accounts is just 0.42% as of July 17, 2023.
By comparison, high-yield savings accounts offer customers the chance to grow their savings at a considerably faster rate. Right now, the best high-yield savings accounts offer rates ranging from 4.50% to 5.25%.
Top High-Yield Savings Account Rates
- CIT Bank Platinum Savings Account: 4.30% APY
- UFB Direct High Yield Savings Account: 5.25% APY
- CIT Bank Savings Connect Account: 4.65% APY
- Citizens Access Online Savings Account: 4.50% APY
- SoFi Checking and Savings: 0.50% - 4.50% APY
- Quontic Bank High Yield Savings Account: 4.50% APY
- Synchrony High-Yield Savings Account: 4.50% APY
To help you decide which high-yield savings account is best for your needs, take a closer look at each of our top picks:
UFB Direct High Yield Savings Account
- Our Rating 5/5 How our ratings work
- APY5.25%
UFB Direct breaks balances into five tiers, but, currently, there is only one interest rate.
- Minimum
Deposit RequiredN/A - Intro Bonus N/A
The UFB High Yield Savings Account has one of the highest interest rates we’ve seen for a high-yield savings account at up to 5.25% APY. Plus, there are no monthly fees and no minimum balance to open.
Overview
With one of the strongest high-yield savings interest rates on the market, as well as no monthly fees or minimum opening deposit, UFB Direct’s High Yield Savings Account is an extremely attractive package.
- Interest rate: Up to 5.25% APY
- Compounding period: Daily
- Fees: No monthly fees or minimum balance requirements
- ATM access: Yes
- Can you bank in person? Not really. While there is one branch in San Diego, California, UFB Direct is primarily an online bank.
- Can you bank online? Yes
Why we like it: UFB Direct’s High Yield Savings Account offers one of the most competitive interest rates, even among high-yield savings accounts. The APY for this account is up to a whopping 5.25%. Plus, it offers all of the resources expected from online banks, included mobile tools, as well as some you wouldn’t expect, like a free ATM card.
About UFB Direct: A division of Axos Bank, UFB Direct is known for having some of the strongest rates in the business. Established in 2000, this FDIC-insured bank is headquartered in San Diego, California.
CIT Bank Savings Connect Account
- Our Rating 4.5/5 How our ratings work
- APY4.65%
Annual Percentage Yield is accurate as of July 27, 2023. Interest rates for the Savings Connect account are variable and subject to change at any time without notice.
- Minimum
Deposit Required$100 - Intro Bonus N/A
CIT Bank’s Savings Connect account is one of our top picks for high-yield savings accounts. Featuring a competitive flat APY on all balances, it can go head-to-head with most of the top savings accounts available. What’s more, you don’t have to do anything special to earn this high interest rate; many similar accounts (including some offered by CIT) only offer their highest interest rates to customers who complete certain requirements.
Overview
With extremely competitive interest rates and a host of convenient features, the CIT Bank Savings Connect account can go head-to-head with nearly any other savings account in the U.S.
- Interest rate: 4.65% APY
- Compounding period: Daily
- Fees: No monthly services fees or minimum balance requirements (but $100 to open)
- ATM access: Reimburse up to $30 in ATM fees per month
- Can you bank in person? No, CIT does not have brick-and-mortar banks
- Can you bank online? Yes
Why we like it: CIT provides some of the best APYs in the business, and and its Savings Connect account features one of its best offers. With virtually no fees and an easy to navigate application process, it’s easy to recommend this FDIC-insured savings account.
While you might also want to consider a CIT Savings Builder Account or CIT Money Market Account, if high APY is your main concern, Savings Connect or Platinum Savings will likely be your best bet.
About CIT Bank: CIT is an online bank that specializes in online savings accounts, CDs and money market accounts. While it can be easily mistaken, CIT is not related to Citibank. CIT stands for Commercial Investment Trust, and was founded in 1908.
Citizens Access Online Savings Account
- Our Rating 4/5 How our ratings work
- APY4.50%
- Minimum
Deposit Required$0.01 - Intro Bonus N/A
If you plan to park your money for some time, the Citizens Access Online Savings Account is a good bet. This account features an incredible APY, and currently all balances earn the highest rate available. You only need to deposit $0.01 to open an account and earn the APY, and this account doesn’t have other fees associated with it.
Overview
Featuring an impressive APY on all balances, the Citizens Access Online Savings Account is one of our favorite high-yield savings options. This account only requires a deposit of $0.01 to open an account, and it doesn’t feature any monthly service fees. While it lacks a corresponding checking account, it’s a great place to store your funds if you don’t plan on touching them for a while, as you’ll enjoy one of the most competitive interest rates on the market.
- Interest rate: 4.50% APY
- Compounding period: Daily
- Fees: No monthly service fees; minimum opening balance requirement of $0.01
- ATM access: None
- Can you bank in person? No
- Can you bank online? Yes, and through the mobile app. You’ll need to connect a checking account, use the app to deposit, or you will need to mail in a check to open the account. To get your money out, move it back to your external banking account via transfer.
Why we like it: If you plan to park your money for some time, Citizens Access is a good bet. On the other hand, if you’re looking for an associated checking account from the same institution, it may not be the right choice.
About Citizens Bank: Citizens Bank is the 13th largest bank in the U.S., and Citizens Access is its online arm, which currently only offers two options for online banking: a savings account and a CD.
Citizens Access is FDIC insured and has been in business (online) since 2018. Citizens Bank has been around since 1828.
SoFi Checking and Savings
- Our Rating 5/5 How our ratings work
- APY0.50% – 4.50%
Customers earn 4.50% APY on savings balances when they set up recurring monthly direct deposit of their paycheck or benefits provider via ACH deposit. Alternatively, deposit at least $5,000 each month to earn 4.50% APY on your savings balance. Checking balances earn 0.50% APY. See full terms and disclosures at sofi.com/banking. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/24. SoFi members with Direct Deposit can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.60% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
- Minimum
Deposit RequiredN/A -
Intro Bonus
$50-$250Expires December 31, 2024
New customers can earn a $250 bonus for opening a new SoFi Checking and Savings account and receiving a total of $5,000+ in qualifying direct deposits within the specified evaluation period; receive $1,000 – $4,999 in qualifying direct deposits to earn a $50 bonus.
SoFi Checking and Savings boasts an impressive 4.50% APY on savings balances for customers who set up direct deposit, or who deposit at least $5,000 each month. This account also offers 0.50% APY on checking balances. There are no monthly maintenance fees, and new customers can even earn a generous signup bonus worth up to $250. If you don’t care about physical bank locations, this is a great option.
Overview
SoFi Checking and Savings features remarkably strong interest rates for customers who receive recurring monthly direct deposit, or who deposit $5,000+ every 30 days. This account also doesn’t have any maintenance fees, overdraft fees or non-sufficient funds fees. To top it off, new customers can earn a signup bonus worth up to $250.
- Interest rate: 0.50% - 4.50% APY
- Compounding period: Monthly
- Fees: None
- ATM access: Access to 55,000 ATMs worldwide through the Allpoint Network
- Can you bank in person? No, SoFi is an online-only bank
- Can you bank online? Yes
Why we like it: So long as you’re not the type of person who needs to bank in person or who handles lots of cash transactions, you’ll likely find a lot to love about the SoFi Checking and Savings Account. Its APY is extremely competitive, and the company is known to regularly offer sign-up bonuses to new customers.
About SoFi: Although the company has been around for years, SoFi officially received approval for a national bank charter in 2022.
While the finance company already offered customers many services associated with traditional online banks, this move allowed SoFi to begin offering a straightforward checking and savings account with a remarkably healthy APY.
Synchrony Bank High-Yield Savings Account
- Our Rating 4/5 How our ratings work
- APY4.50%
The Annual Percentage Yield (APY) as advertised is accurate as of 5/14/2024. Interest rate and APY are subject to change at any time.
- Minimum
Deposit RequiredN/A - Intro Bonus N/A
Synchrony Bank offers an above-average interest rate on its High-Yield Savings Account. And with no minimum balance or opening deposit requirements, it’s easier to hold this account than many similar options. We also appreciate the inclusion of an ATM card for easy funds access.
Overview
With the Synchrony Bank High-Yield Savings Account, you’ll earn a healthy APY on your deposits. While it’s not the highest interest rate you can find right now, Synchrony doesn’t require any minimum opening balance, which makes it more accessible than some similar accounts. Synchrony also makes it easy to access your funds on the go. Account holders receive an ATM card for this savings account. Plus, you can access your money via ATM, online or phone.
- Interest rate: 4.50% APY
- Compounding period: Daily
- Fees: None
- ATM access: Yes. Synchrony says that it doesn’t charge fees for ATM usage and will refund up to $5 per ATM fee that other banks charge. It uses the Accel Network of ATMs.
- Can you bank in person? No, Synchrony is an online-only bank
- Can you bank online? Yes
Why we like it: Synchrony makes it easy to access your funds on the go. For starters, accountholders receive an ATM card for this savings account, but remember, like all savings accounts, you can only have six transactions within a statement cycle. You can access your money via ATM, online or via phone. Synchrony also offers customers what they call “Perks” for keeping money in the account.
About Synchrony: Synchrony is an online bank that offers online savings accounts, CDs, money markets and IRAs. Synchrony Financial also offers retail credit cards for companies like Walmart, JCPenney and Lowe’s. It used to be a part of GE and was spun off as a separate entity.
Synchrony is FDIC insured and has been in business for the last 90 years (under GE). All rates are subject to change at any time.
Quontic Bank High Yield Savings Account
- Our Rating 3.5/5 How our ratings work
- APY4.50%
- Minimum
Deposit Required$100 - Intro Bonus N/A
Quontic High Yield Savings offers customers 4.50% APY, which is a moderately good rate for a high-yield savings account. There’s a low minimum of $100 to open your account, as well as no monthly fees, but as a digital-only bank Quontic does not have physical locations.
Overview
With a minimum opening deposit of $100, Quontic Bank’s High Yield Savings Account offers a flat 4.50% interest rate on all balances.
- Interest rate: 4.50% APY
- Compounding period: Compounds daily and is credited to your account monthly
- Fees: No monthly maintenance fee, overdraft fee or insufficient funds fee
- $100 minimum deposit is required to open an account
- Can you bank in person? No, this is an online-only bank
- Can you bank online? Yes
Why we like it: Quontic High Yield Savings offers a competitive APY at 4.50% without monthly or other common fees. The bank provides digital tools to manage your account along with live phone and chat support.
About Quontic: Founded in 2013, Quontic Bank offers customers banking products, as well as mortgage loans. The bank is a community development financial institution, which means that part of its mission is to expand economic opportunities in low-income communities. Deposits with Quontic are FDIC insured.
What Is a High-Yield Savings Account?
A high-yield savings account is a type of savings account that offers a much higher interest rate than a traditional savings account, resulting in a higher APY.
Typically, high-yield savings accounts are available through online banks, instead of financial institutions with brick-and-mortar locations. With less overhead than conventional banks, online banks usually offer extra perks to customers, like lower fees and higher interest rates on checking and savings accounts.
How Do High-Yield Savings Accounts Work?
In most ways, high-yield savings accounts function identically to traditional savings accounts. The main difference is that high-yield savings accounts tend to offer much higher interest rates, which helps your savings grow faster. The national deposit rate is around 0.40%, but you can find high-yield savings accounts that offer 4.00% APY or higher.
The federal government repealed Regulation D in 2020, which limited the number of withdrawals and select bank transactions on savings accounts to six per monthly statement cycle. However, some banks have stuck with the six-transaction per statement limit as a matter of course. Usually, those banks charge a penalty fee if you exceed the monthly transaction limit.
Here’s an example of how much interest you might earn on a high-yield savings account compared to a traditional savings account.
| APY | Initial Deposit | Monthly Contribution | Interest Earned in 1 Year | Balance at 1 Year | |
|---|---|---|---|---|---|
|
Traditional Savings Account |
0.40% |
$5,000 |
$100 |
$22.20 |
$6,222.20 |
|
High-Yield Savings Account |
3.50% |
$5,000 |
$100 |
$194.13 |
$6,394.13 |
In the example above, you would have earned $172 more in interest in a year if you opted for a high-yield savings account.
Note: Example based on interest compounding daily.
Pros and Cons of High-Yield Savings Accounts
Pros
- Earn higher APYs than traditional savings accounts
- Insured by the FDIC (banks) or NCUA (credit unions) up to $250,000 per depositor per insured bank
- FDIC insurance means there’s very little risk
- Easy access to funds when you need to make a withdrawal
- Online banks generally have lower overhead costs so they can charge fewer or no fees
Cons
- All savings account interest rates fluctuate, so it’s hard to predict earnings
- Not always best for long-term investing due to variable interest rates, inflation and dynamic economic climate
- The government waived withdrawal limits during the pandemic, but some banks charge penalties for exceeding limits
- Most don’t come with checks or debit cards
Getting Started How to Choose the Best High-Yield Savings Account
When looking for a new high-yield savings account, make sure it has the following key characteristics
-
1
Interest Rate
A strong interest rate can be the deciding factor when choosing which high-yield savings account to open. A higher interest rate will help grow your savings more quickly, which can be incredibly valuable.
-
2
Minimum Balance Requirement
Check the minimum balance requirement on any account you’re considering to make sure you can meet it, not only when you open the account, but in case you make withdrawals down the road.
-
3
Fees
The best high-yield savings accounts should either be fee free or have achievable ways to waive monthly fees. Fees can reduce your overall earnings, so they are nearly as important to consider as interest rates.
-
4
Access and Liquidity
Ideally, you’ll want to be able to easily access your funds and make withdrawals without paying excessive fees. In lieu of physical locations, many online banks provide customers with access to fee-free ATMs.
-
5
Loss Protection
The savings account you’re considering should be insured by the Federal Deposit Insurance Corporation (FDIC), as this will protect you against loss if the financial institution fails (or NCUA-insured for credit unions). Also consider the FDIC’s deposit insurance limit, which is currently $250,000 per depositor, per FDIC-insured bank.
How to Open a High-Yield Savings Account
Most banks allow you to open a high-yield savings account online by providing some key information.
Here’s what you’ll need to open a savings account:
- Full name
- Mailing address
- Phone number
- Social Security number and/or driver’s license number
- Old bank account information (to fund new account)
After your application has been approved, you’ll need to fund your account with enough money to meet the minimum deposit requirement. Depending on the bank, you may be able to do this by linking it to another bank account, depositing cash, mailing a check or via a wire transfer.
Who Should Open a High-Yield Savings Account?
With little to no fees and ultra-competitive interest rates, almost anyone can benefit from opening a high-yield savings account. High-yield savings accounts may be especially beneficial for the following types of people:
- Emergency savers: High-yield savings accounts are perfect for building an emergency fund. Not only can you earn a higher APY on your deposits, but it keeps emergency savings separate from your everyday spending. High-yield savings accounts are generally found at online banks, making your funds less accessible than with other banks. This could make it easier to avoid the temptation of withdrawing funds for nonemergencies.
- Short-term savers: This savings option is also good for individuals who want to save for short-term goals. High-yield savings accounts are a good place to store funds for life goals like a downpayment on a house, a vacation fund or funding a child’s college education. Plus, you’ll earn interest as you progress toward your savings goals.
- Digitally savvy consumers: Online banks generally lead the pack regarding banking technology and new features. If you’re comfortable banking online versus in person at your local bank, you could earn a much higher interest rate than you currently earn by switching to an online bank.
What if You Can’t Open a High-Yield Savings Account?
In some cases, you may not be eligible to open a high-yield savings account or have your application denied. This typically occurs when there is negative information in your ChexSystems record or an issue verifying your identity. ChexSystems is a consumer reporting agency that operates similarly to a credit bureau but for bank accounts. Negative marks on your report could include bounced checks or unpaid bank fees.
If your application for a high-yield savings account is denied, see if there are any unresolved issues, like unpaid charges, you can handle to gain access to a new account. Another option is to find a bank that offers second-chance bank accounts. These types of accounts often have higher fees and fewer features than other bank accounts but can help you develop a positive banking record and open the door to a high-yield savings account later on.
Are High-Yield Savings Accounts Safe?
Like traditional savings accounts, reliable high-yield savings accounts are FDIC insured up to $250,000 per depositor. High-yield savings accounts through credit unions will also be insured up to $250,000 per depositor, but are backed by the National Credit Union Administration (NCUA). You can verify that your account is safe through the FDIC BankFind tool.
Compare Account Types
While high-yield savings accounts offer a variety of low-risk benefits, they aren’t the only savings option on the market. Here’s a quick breakdown of how high-yield savings accounts compare to other popular types of savings products.
| High-Yield Savings Account | Traditional Savings Account | Certificate of Deposit | Money Market Account | Checking Account | |
|---|---|---|---|---|---|
|
Earns Interest |
Yes |
Yes |
Yes |
Yes |
Rarely |
|
High APY |
Yes |
No |
Sometimes |
Rarely |
Rarely |
|
Fixed or Variable APY |
Variable |
Variable |
Fixed |
Variable |
Variable (if any) |
|
Can Deposit or Withdraw Anytime |
Yes (but may have limits) |
Yes (but may have limits) |
No |
Yes |
Yes |
|
Withdrawal Penalty |
Sometimes (if exceed limits) |
Sometimes (if exceed limits) |
Usually |
No |
No |
|
Debit Card |
Rarely |
Rarely |
No |
Usually |
Yes |
|
Check-Writing |
Rarely |
Rarely |
No |
Usually |
Yes |
High-Yield Savings Accounts vs. Traditional Savings Accounts
High-yield savings accounts and traditional savings accounts operate almost identically. Both are interest-bearing accounts meant for saving money toward short-term savings goals.
High-yield savings accounts are typically available through online banks, while traditional savings accounts are found at local, regional and national banks. This means that high-yield savings accounts typically have lower fees and higher APYs, whereas traditional savings accounts tend to have lower APYs.
While many banks charge monthly fees for traditional savings accounts, some also offer ways to waive the fee each month, often by meeting minimum balance requirements.
High-Yield Savings Accounts vs. Certificates of Deposit
A certificate of deposit (CD) is a timed deposit account. Banks generally pay higher rates for CDs in exchange for agreeing to leave funds untouched for a predetermined period of time. CD terms range from as short as a week or a month to five or ten years, depending on the financial institution.
CDs are for savers who won’t need access in the short term to the deposited funds. Banks often charge early withdrawal penalties, usually a portion of the interest earned, for withdrawing funds from a CD account before maturity.
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High-Yield Savings Accounts vs. Money Market Accounts
High-yield savings accounts and money market accounts are two types of savings products offered by financial institutions. In both cases, you’ll likely earn a higher interest rate than you would by keeping your money in a traditional savings account.
Money market accounts typically offer some checking account features, such as a debit card and check-writing privileges. While not totally unheard of, high-yield savings accounts don’t usually include either of these features.
High-Yield Savings Accounts vs. Checking Accounts
Checking accounts are meant for everyday spending. They often come with features not included with savings accounts, like a checkbook and debit card. Checking accounts don’t carry the same transaction limits as high-yield savings accounts, which makes them a better option for everyday use like paying bills or at the gas station and grocery store.
Other Accounts to Consider
Savings Account Glossary
- ACH transfer: An electronic fund transfer between financial institutions through the Automated Clearing House network. Transfers include direct deposits, merchant bill payments and banks’ online bill pay services.
- Annual percentage yield (APY): The amount of interest earned on a bank account over one year expressed as a percentage.
- ATM networks: A collection of automated teller machines (ATMs) across a region or country that offer the same services and features that often include withdrawals, deposits and balance inquiries.
- Compounding interest: The interest earned on a bank account’s principal balance and accumulated interest.
- Interest: The cost paid to borrow money. Consumers pay interest to borrow money from a bank and are rewarded with interest when they deposit funds into an interest-bearing account.
- Liquidity: The ease with which an asset is converted into cash without a loss in value.
- Minimum deposit requirement: The minimum amount of money required by a bank or credit union to open an account, avoid fees or access certain benefits.
- Mobile deposit: A deposit of funds, typically from a paper check, electronically through a mobile banking app. Mobile deposits utilize a mobile device’s camera to take images of the front and back of an endorsed check.
- Money market account: A hybrid bank account that combines the benefits and features of checking and savings accounts, like competitive APYs, check-writing privileges and a debit card.
- Monthly maintenance fee: An administration fee charged each month by some financial institutions to service and maintain a bank account. Some banks offer ways to waive fees by meeting specific criteria each month.
- Online bank: A financial institution that operates primarily online or digitally without bank branches.
- Savings account: An interest-bearing bank account that earns interest on funds deposited into the account.
- Wire transfer: A method for electronically transferring funds from one person to another. Banks often charge a fee for international and domestic wire transfers.
Methodology
Slickdeals Money’s editorial team reviews our list of the top high-yield savings accounts on a weekly basis. When choosing which accounts to feature, we consider factors such as APY, cost of holding an account (minimum deposit and balance requirements, fees) bonus offers and features (ATM access, customer service experience, user experience).
Our list of the best high-yield savings accounts is compiled by monitoring over 40 online banks, brick-and-mortar banks and credit unions, including:
Alliant Credit Union, Ally Bank, American Express National Bank, Axos Bank, Bank of America, Bank of the West, Barclays, Bluevine, BMO Harris, Capital One, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens Bank, Discover Bank, Fifth Third Bank, FirstBank, First Tech Federal Credit Union, FNBO Direct, HSBC Bank, Huntington Bank, Keybank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Nationwide (by Axos), nbkc bank, PNC Bank, Radius Bank, Quontic Bank, Regions Bank, SoFi, Stanford Federal Credit Union, Synchrony Bank, TD Bank, UFB Direct and U.S. Bank.
Learn more about how our rating process works.
FAQs
While savings accounts have existed for quite some time, some people aren’t as familiar with online high-yield savings accounts. Here are some of the more common queries related to high-yield savings accounts: