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Savers who want to earn the most interest on their money should look at the best high-yield savings accounts. With interest rates on the rise, savers are earning higher rates in HYSA than they have in more than a decade.
These accounts offer the functionality of traditional savings accounts but receive a much higher interest rate to grow your balances. Many of these accounts have no opening balance or minimum balance requirements, so they are open to every type of saver. Learn more about how to choose your savings account, how they work and the best type of account based on your goals.
Top high-yield savings accounts compared
| Name | APY | Minimum Deposit | Best For |
|---|---|---|---|
UFB Priority Savings | Up to 5.25%* | $0 | No limits to earning best APY |
Up to 5.05%* | $100 | Unique promotions | |
5.00%* | $0 | Customer support | |
4.50%* | $100 | Multiple high-yield products | |
4.50%* | $0 | Welcome bonus | |
4.35%* | $0 | Minimum balance required | |
4.35%* | $0 | All-around banking | |
Discover Online Savings Member FDIC | 4.30%* | $0 | No-fee wire transfers |
4.30%* | $0 | Access to cash | |
4.25%* | $0 | Monthly maintenance fees | |
4.15%* | $0 | Small business owners |
Open a high-yield savings account
Best for earning high APY*: UFB Priority Savings
UFB Priority Savings ranks among the best high-yield savings accounts. Customers can earn 5.25% APY* across all of their balances with no minimum deposit. Additionally, there are no maintenance or service fees to worry about. Customers receive a complimentary ATM card and can transfer money between accounts for free.
Best for unique promotions: CIT Platinum Savings
CIT Bank's Platinum Savings Account is an excellent choice for those seeking a high-yield savings product. The bank's rate stands out in the market, providing customers a competitive edge in growing their savings. What makes CIT Bank particularly intriguing are its unique promotions, which typically offer substantial bonuses or even higher interest rates for new deposits or accounts.
While the bank operates primarily online, its user-friendly interface and top-notch customer service make banking a breeze. Security is also paramount at CIT Bank, ensuring your funds are safe and protected. However, keep in mind that this savings account may not be the best choice for those who prefer traditional, brick-and-mortar banking, or for those who frequently need to withdraw funds, as it might come with certain limitations. In summary, the CIT Bank's Platinum Savings Account, with its high APY* and attractive promotions, is an excellent option for customers looking to maximize their savings potential.
Best for customer support: Bask Interest Savings
The Bask Interest Savings Account offers a high rate with no monthly account fees and no minimum account balance. And Bask Bank is a standout for service. Customers can call the support line between 7 am and 7 pm CST Monday through Friday, and on Saturdays between 9 am and 4 pm. There’s also information online and on the Bask app. The account doesn’t provide an ATM or debit card, however. It is important to note that while there does not appear to be a minimum opening deposit required, any account with no balance will be closed after 15 days.
Best for multiple high-yield products: Quontic High Yield Savings
Quontic stands out for the many ways you can increase the earning potential of your cash. In addition to their high-yield savings account growing your money at a high rate, Quontic also offers certificates of deposit and money market accounts.**.
Best for welcome bonus: Sofi Savings & Checking
If you want to earn a welcome bonus for opening a high-yield savings account, consider Sofi Savings & Checking. New customers can earn up to $250 when they open a new account and set up direct deposit. Plus, the account earns a high interest rate with no account fees.
Best for minimum balance required: Barclays Online Savings
Accounts with no minimum balance requirements help customers avoid monthly fees. The Barclays offer a high rate of interest without monthly fees or minimum balance requirements.
Best for all-around banking: Citi Accelerate High-Yield Savings
Deposits searching for a high-yield savings account with no minimum should open a Citi Accelerate High-Yield Savings account. It offers a high interest rate with no minimum to open the account and no limit on earnings. The account is FDIC-insured and Citi is one of the world's largest financial institutions. Citi also offers money market accounts (MMA), credit cards, investing and other financial products.
Best for no-fee wire transfers: Discover Online Savings
Discover Online Savings is the ultimate choice for those seeking a hassle-free wire transfer experience without incurring any fees. With their robust online banking platform, customers can effortlessly initiate wire transfers from the comfort of their own homes, eliminating the need for time-consuming visits to physical branches.
Discover prioritizes customer convenience and ensures that hard-earned money can be moved swiftly and securely, all at no extra cost. Furthermore, their Online Savings account offers a highly competitive Annual Percentage Yield (APY), allowing individuals to maximize their earnings on savings.
By combining the convenience of fee-free wire transfers with a lucrative APY, Discover empowers its customers to effortlessly grow their savings while enjoying unparalleled flexibility and financial freedom. Member FDIC.
Best for access to your cash: Marcus Online Savings
Customers who need access to their cash quickly will benefit from a Marcus Online Savings from Goldman Sachs, a company well-known for investing and private banking. The account has no monthly fees or minimum deposit requirements while earning a high interest rate. Customers enjoy same-day transfers of up to $100,000 to or from other banks, so there's no delay in accessing their money.
Best for monthly maintenance fees: American Express HYSA
Avoiding monthly maintenance fees ensures that the interest you earn is yours to keep. While primarily known for offering credit cards, American Express offers a high-yield savings account with no monthly maintenance fees and a solid interest rate. With this account, your interest compounds daily and is deposited into your account each month.
Best for small business owners: Live Oak Personal Savings
Customers can quickly open an online savings account with Live Oak to receive a competitive interest rate with no monthly fees or minimum balance requirements. Two features that set it apart are the ability to initiate wire transfers from your savings account and to connect with QuickBooks. These features make it an ideal savings account for entrepreneurs and small business owners. While there are no minimum deposit or balance requirements, if your account balance is less than $10.01 for 24 consecutive months, the bank will close your account and charge a dormant account fee equal to your remaining balance.
What is a high-yield savings account?
A high-yield savings account is a traditional savings account but with a higher interest rate. Just like savings accounts, they are liquid, so you can add or withdraw money at any time. Additionally, they are guaranteed up to $250,000 by the FDIC.
How do high-yield savings accounts work?
High-yield savings accounts offer much higher rates of interest than traditional savings accounts. They work the same way as traditional savings accounts, but many are online-only accounts that cannot be opened in a traditional brick-and-mortar branch. These accounts must also follow Regulation D, which limits the number of certain types of withdrawals each month.
Many high-yield savings accounts are offered by online banks and have reduced fees and balance requirements. In some cases, there are no minimum balance requirements to open or maintain an account. Plus, many eliminate monthly service charges, so there are costs to keep your account open.
However, some high-yield savings accounts require larger balances to avoid fees or earn the best savings account interest rates. Banks may implement tiered interest rates that offer the best rates to certain types of customers.
How to choose your high-yield savings account
When comparing the best savings accounts, customers should focus on fees, interest rates and the functionality of the accounts. Here are a few features that matter most when choosing your account.
- Opening balance requirement. How much do you need to deposit when opening your account? Many accounts allow customers to open an account with no minimum balance or as little as one dollar.
- Monthly fees. Most banks waive the monthly fees when you maintain a minimum balance. Some banks waive fees entirely.
- Monthly minimum balance. Some high-yield savings accounts require customers to meet a minimum balance to earn the best savings account rates.
- Interest rate. The amount of interest you'll earn based on your balance is advertised so you know how much your money will make.
- Interest rate tiers. Does the bank offer different interest rates based on your balance? Some banks reserve the highest rates for larger customers, while others cap the balances that can earn the best savings rates. For example, CIT Platinum Savings pays a higher rate on balances of $5,000 or more.
- Compounding. When your interest compounds, the accrued interest is added to your balance, and the new, higher balance then also earns interest. Ideally, your interest should compound at least monthly.
- Access to account. How easy is it to access your funds, and how long does it take? Some high-yield savings accounts also offer an ATM card to withdraw cash.
Frequently asked questions (FAQs)
What do you need to open a high-yield savings account?
To open a high-yield savings account, you'll need to provide your name, contact information, Social Security Number and date of birth. Additionally, you should be prepared to make an initial deposit to fund your account and start earning interest. It is wise to have existing bank account information so you can link your accounts for future transfers.
Are high-yield savings rates increasing?
Yes, high-yield savings rates have increased as the Federal Reserve has raised rates to combat inflation. Customers with money in their savings accounts benefit from these rising rates by earning more interest.
How do banks determine APYs for high-yield savings accounts?
Savings account interest rates are represented as annual percentage yield (APY) to factor in compounding interest. APY is based on the account's interest rate and the number of times the bank pays interest each year. The APY formula is 100 [(1 + Interest/Principal)(365/Days in term) - 1], but most people use a calculator instead of figuring it out by hand.
What is a good APY for a high-yield savings account?
A good APY depends on the current market, economic conditions and the available alternative options. In today's savings account interest rate environment, you should aim for an account that earns at least 3.50%, with the best savings accounts offering upwards of 4.5%. Many banks offer interest rates at this level or higher without charging monthly fees or requiring large balances.
Can you lose money in a high-yield savings account?
Bank accounts are insured for up to $250,000 per person at each bank. If you keep your balances below this level, you will not lose money, even if the bank goes out of business.
How often do savings rates change?
Unlike CD rates, banks change savings account interest rates on a regular basis. They adjust rates based on market conditions, what competitors are doing and how much they need deposits. If your bank's interest rates are not competitive, consider opening a new high-yield savings account.
*APY as of September 12th, 2023. APYs vary, so check with your financial institution to get the most up-to-date information.
** Withdrawals on CDs before maturity date are subject to penalties. Money market funds are limited to 6 withdrawals per statement cycle. High-interest checking accounts require 10 debit card point of sale transactions of $10 or more per statement cycle to earn the maximum APY per account balance tier. If the qualifying activity requirement is NOT fulfilled, the interest rate paid on the entire balance will be 0.10% APY. APY stands for Annual Percentage Yield.
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