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Being strategic about where you put your money can give your savings a boost and help you meet your goals sooner. So, if you’re earning a low interest rate on your money, consider putting it in a high-yield savings account.
Not sure where to find the best high-yield savings accounts available today? We did the heavy lifting for you: Our team compared today's high-yield savings accounts offered by federally insured financial institutions and identified the 10 best based on interest rate, fees, account features, customer service and more.
Table of contents
Interest rates, fees, and requirements are accurate as of the publish date. Please verify account details directly with the financial institution.
SoFi High-Yield Savings Account
Account details:
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APY: Up to 3.80%
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Minimum opening deposit: $0
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Monthly fee: $0
SoFi’s online bank account — a combination checking and high-yield savings account — made our list for its competitive APY, lack of fees, and bundled approach to saving and spending.
It currently offers up to 3.80% APY on savings balances and 0.50% APY on checking account balances. There are no monthly maintenance fees, minimum balance requirements, or minimum deposit requirements to open an account.
The online bank account from SoFi comes with several additional perks, such as purchase round-ups that are deposited into your savings account and multiple savings vaults to help you stay organized and save for different goals. Right now, new customers can also earn up to a $300 bonus when they meet certain requirements.
Barclays Online Savings Account
Account details:
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APY: 3.90%
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Minimum opening deposit: $0
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Monthly fee: $0
The Barclays Online Savings Account offers an APY almost 10 times the national average. With no monthly maintenance fees and no minimum balance required to open, this account is a great option for savers who are just getting started and may not have a lot of money to put away just yet. Barclays also offers a free savings assistant tool to help customers figure out how much they need to save each month to reach their goals.
Read our full review of Barclays Bank
Bask Interest Savings Account
Account details:
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APY: 4.35%
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Minimum opening deposit: $0
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Monthly fee: $0
At 4.35% APY, the Interest Savings Account from Bask Bank pays more than 10 times the national average. With no minimum opening deposit or monthly fees, this account could be a great option for savers who want to keep their banking costs low.
Bask operates as an online-only bank, meaning there are no physical branches. However, if you need assistance with your account, Bask Bank provides generous phone customer support hours, including Saturdays.
Read our full review of Bask Bank
Synchrony Bank Online High-Yield Savings Account
Account details:
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APY: 4.00%
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Minimum opening deposit: $0
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Monthly fee: $0
The Online High Yield Savings Account from Synchrony Bank offers a competitive 4.00% APY — which is nearly 10 times the national average for traditional savings accounts.
This account is free to open and doesn’t charge any monthly fees. Interest is compounded daily and credited monthly. Synchrony also offers an optional ATM card for savings account holders; the bank refunds customers up to $5 per statement cycle for any domestic ATM fees they have incurred.
Read our full review of Synchrony Bank
UFB Portfolio Savings Account
Account details:
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APY: 4.01%
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Minimum opening deposit: $0
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Monthly fee: $0
UFB Direct’s Portfolio Savings Account offers a competitive 4.01% APY, which applies to all balances. UFB customers also receive a complimentary ATM card for easy access to their funds and a host of digital tools to make banking easier, including mobile deposits and SMS banking.
This account also stands out due to UFB’s highly rated mobile app. Customers can use the app to check account balances, view transaction history, transfer funds between eligible accounts, and contact a customer service representative.
Read our full review of UFB Direct
Ally Savings Account
Account details:
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APY: 3.60%
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Minimum opening deposit: $0
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Monthly fee: $0
The Ally Bank Savings Account is a high-yield savings option with no minimum deposit required to open and zero monthly fees. At 3.60% APY, this account’s interest rate is more than eight times the national average.
Account holders can maximize their savings potential through round-ups, recurring transfers to their savings account, and surprise savings through tools that analyze your checking account spending and transfer “safe-to-save” money to your savings account.
Read our full review of Ally Bank
American Express High-Yield Savings Account
Account details:
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APY: 3.70%
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Minimum opening deposit: $0
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Monthly fee: $0
The American Express High-Yield Savings Account made our top 10 list thanks to its competitive 3.70% APY and lack of minimum opening deposit or minimum balance requirements. Interest on your account balance is compounded daily and deposited into your account on a monthly basis.
One drawback: This account does not provide account holders with an ATM card, debit card, or checks. In order to access your money, you’ll need to transfer your funds electronically. That’s why this account may be better for those who plan to keep their funds on deposit for the long-term and don’t anticipate needing immediate access.
Read our full review of American Express National Bank
EverBank Performance Savings Account
Account details:
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APY: 4.30%
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Minimum opening deposit: $0
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Monthly fee: $0
EverBank’s Performance Savings Account gives account holders the opportunity to earn 4.30% APY on their savings balance with no minimum opening deposit, minimum balance requirements, or monthly maintenance fee. Interest is also compounded daily.
Note that while EverBank does have extended customer service hours, the only way to reach a representative is by telephone — there is no live chat or email option.
Read our full review of EverBank
TAB Bank Save Account
Account details:
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APY: 4.26%
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Minimum opening deposit: $0
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Monthly fee: $0
The TAB Save account made our top 10 list thanks to its impressive 4.26% APY. This account is free to open and has no minimum opening deposit or monthly fee. Interest is compounded daily and credited to your account monthly.
Despite its high APY, TAB ranked lower on our list due to its average mobile app rating and lack of extra account perks or savings tools to help customers maximize their savings.
Read our full review of TAB Bank
Capital One 360 Performance Savings
Account details:
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APY: 3.70%
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Minimum opening deposit: $0
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Monthly fee: $0
The Capital One 360 Performance Savings account took the final spot on our list for its competitive interest rate, lack of fees, and highly rated mobile app. Account holders earn 3.70% APY regardless of their balance. However, unlike the other accounts on our list, interest compounds monthly rather than daily.
Capital One’s mobile app stood out in particular. Savers can use it to move money between linked Capital One accounts and external bank accounts, create multiple Performance Savings accounts for each of their financial goals, deposit checks with their mobile devices, and create savings plans.
Read our full review of Capital One
Why should I open a savings account?
Opening a savings account is a smart financial move. For one, these accounts provide a safe place to store your money while earning interest, helping your savings grow over time. Plus, unlike keeping cash on hand or in a checking account, a savings account encourages financial discipline by separating money meant for future goals from everyday spending. And as long as you open an account with a reputable, federally insured bank or credit union, your deposits are protected in case the financial institution fails — up to $250,000 per depositor, per institution, per ownership category. Learn more: 6 benefits of opening a savings account you shouldn't overlook.
What is a high-yield savings account?
A high-yield savings account functions similarly to a traditional savings account. The main difference is that HYSAs offer much higher interest rates. In fact, some of the best HYSAs offer annual percentage yields (APYs) 10 times higher than the national average savings account rate.
Keep in mind that some banks may require you to maintain a minimum balance to earn interest or avoid a monthly service charge. However, there are plenty of accounts that offer the same rate regardless of your balance and do not charge monthly fees. When shopping around for an HYSA, it's important to compare multiple offers and select an account that fits your needs. Learn more: High-yield savings account vs. traditional savings account: Which one is better?
What is APY?
A high-yield savings account’s interest rate represents how much you’ll earn in simple interest. On the other hand, the annual percentage yield (APY) is the rate of return including compound interest, which is the interest you earn on both the principal balance and interest you've accrued previously. Most savings accounts compound interest daily or monthly. The more often interest compounds, the faster your money will grow.
HYSAs come with variable interest rates. That means your bank or credit union can change your APY at any time. Generally, APYs increase when the economy is doing well, and the Federal Reserve raises its benchmark rate. Conversely, rates can drop when the economy weakens, and the Fed lowers rates. Learn more: What is compound interest, and how is it calculated?
What is a good savings account rate?
Because savings account rates fluctuate, what is considered a "good" rate can change over time. Generally, a savings account that earns more than the national average is considered good. Today, the national average rate is just 0.41%, while the top high-yield savings accounts offer around 3% to 4% APY. Learn more: What is a good savings account interest rate?
Do you pay taxes on high-yield savings accounts?
Yes, the interest earned in an HYSA is taxable income. You should receive a Form 1099-INT from your bank if you earn more than $10 in interest during the year, which you need to report on your tax return. However, even if you don't receive this form, you are responsible for reporting all interest income to the IRS. Learn more: How to avoid taxes on savings account interest.
Pros and cons of high-yield savings accounts
There are many benefits of opening a high-yield savings account, particularly the opportunity to earn a competitive rate on your balance. However, there are some drawbacks to consider as well. Let’s take a closer look at the pros and cons of high-yield savings accounts:
Pros:
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Higher interest rates: You’ll generally earn more interest than you would with a traditional savings account.
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Compound interest: Compounding interest helps your balance grow more quickly. Interest in an HYSA may compound daily or monthly.
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Accessibility: These accounts are a great place to stash money you may need to access quickly, such as your emergency fund. Other types of accounts, such as certificates of deposit (CDs), offer high rates but impose penalties if you withdraw money prior to the maturity date.
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Minimal or no fees: Fees with high-yield savings accounts are rare, so you won’t need to worry about these costs eating into your balance.
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Low-risk: High-yield savings accounts are insured by the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA). Plus, unlike investments, account performance isn’t tied to the stock market and you can’t lose money, making HYSAs a low-risk option for your money.
Cons:
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Variable rates: Your savings account’s APY can increase or decrease over time. While individual banks set rates at their discretion, these rates are loosely tied to the federal funds rate. Banks may choose to increase or decrease savings rates when the Fed adjusts its target rate.
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Minimum balance requirement: Some accounts may have a high minimum opening deposit.
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Tiered APYs: Some banks may have tiered APYs depending on the deposit amount. For instance, you may earn a higher rate if you deposit $5,000 vs. $100. So, while a $5,000 deposit isn’t necessarily required, it could result in a better APY.
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Better for short-term savings: High-yield savings accounts aren’t the best choice for long-term savings goals, like retirement. Investment accounts tend to offer higher long-term returns.
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Withdrawal limits may apply: Depending on your bank, you may have a limit on monthly withdrawals.
Alternatives to high-yield savings accounts
An HYSA can be a smart place to store your savings, but it's not your only option. Here's a look at some of the alternatives you may want to consider.
Money market accounts
Money market accounts and high-yield savings accounts both offer higher interest rates compared to traditional savings accounts. However, these accounts come with different features. For instance, MMAs typically offer check-writing abilities and debit cards, though they might require higher minimum balances to earn the top interest rates. High-yield savings accounts, on the other hand, are designed to store your savings longer-term with fewer withdrawal options. Learn more about money market accounts vs. high-yield savings accounts.
CDs
Like high-yield savings accounts, CDs can provide a safe place to store your savings while earning a competitive return. The big difference is that CDs require you to lock in your money for a set period, known as the term, which can range from a few months to several years. For this reason, CDs are a better option for people who don't need immediate access to their funds. Learn more about high-yield savings accounts vs. CDs.
Investing
High-yield savings accounts and investing serve vastly different financial goals and risk profiles. HYSAs provide stable, low-risk returns with interest rates higher than traditional savings accounts. They're best for short-term financial goals or emergency funds due to their liquidity and FDIC insurance. Investing in bonds, stocks, mutual funds, and other securities typically involves higher risk — but also the potential for higher returns over the long run. Investing your money makes more sense for long-term financial goals like retirement since the returns generally outpace inflation and help grow wealth over time. Learn more about high-yield savings accounts vs. investing.
Overview of today's high-yield savings account rates
Today, savings accounts offer competitive rates by historical standards. Even though the national average rate for traditional savings accounts is just 0.41%, the best high-yield savings accounts still pay upwards of 4% APY.
Over the past decade, savings account interest rates have experienced significant fluctuations. In the mid-2010s, rates were considerably low — below 1% — thanks to the Federal Reserve's efforts to stimulate economic growth following the 2008 financial crisis. As the economy recovered, the Fed incrementally increased the federal funds rate between 2015 and 2018, leading to a gradual rise in savings account rates. However, the onset of the COVID-19 pandemic in 2020 prompted a return to near-zero interest rates to support economic activity, resulting in a decline in savings yields.
However, this led to a period of rising inflation, so the Fed implemented several rate hikes, contributing to the current higher yields on savings accounts. Even so, rates are now back on a downward trend as the Fed began cutting its target rate again in late 2024.
Tips for finding the best high-yield savings account
Competitive rates are great, but considering other factors besides APY can help you find an account that best meets your needs. Learn more: How to choose the right high-yield savings account for you.
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New account offers: Look at high-yield savings account offers for new depositors with high APYs, low to no account fees, and are free to open. High savings account rates will earn you more interest, but the financial institution offering those rates might not necessarily be the best option for your finances, so do your research before opening an account.
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Required deposits: Research applicable deposit requirements. Is there a minimum initial deposit requirement? Do any other deposit requirements apply? Are there tiered APYs depending on your deposit amount?
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Fees: Some accounts may have monthly maintenance fees or other fees. Look into which fees may apply before opening a new account.
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Accessibility: Understand how you can access your money before opening a new account. For example, can you log into an online dashboard? Does your bank have a mobile app? Is it connected to an ATM network?
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Deposit options: Review available deposit options. Are mobile check deposits via a mobile banking app an option? Can you make direct deposits via an ATM?
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Account linking: Look into whether you can link your new account to an existing checking account at another bank. Make sure there are no restrictions or waiting periods when it comes to accessing your money.
How to open a high-yield savings account
Once you’ve determined the best high-yield savings account for you, opening one is simple and can be done in person or online. You’ll generally need to provide your personal information, proof of identity, and address to open a new account. Make sure you have your driver’s license, Social Security number, and copies of a recent mortgage statement or utility bill.
Depending on the account, a minimum deposit amount could apply when you open your HYSA account. If that’s the case, you’ll also need to be ready to transfer money from an existing account to meet the deposit requirement. Learn more: How to open a high-yield savings account.
Frequently asked questions about high-yield savings accounts
Is your money safe in a HYSA?
As long as your account is held by an FDIC- or NCUA-insured institution, your money is federally insured up to the $250,000 limit.
How often do HYSA rates change?
Savings account rates are subject to change at your bank’s discretion. To get the most recent rate information for the accounts you’re considering, you’ll need to visit those institutions’ websites or call them directly to learn more.
Can you withdraw money from a HYSA?
Yes, you can withdraw money from a high-yield savings account. However, these accounts may have rules in place regarding the maximum number of withdrawals you can make within a given month or statement period without incurring a fee.
What is the highest paying high-yield savings account?
Among our list of the 10 best high-yield savings accounts, the highest rate available is 5.05% APY, offered by EverBank.
Are high-yield savings accounts still worth it?
High-yield savings accounts are one of the best places to keep extra cash, whether for your emergency fund or short-term savings. The best rates currently hover between 3% and 4% APY.
Can savings account interest rates change?
Interest rates on savings accounts can change at any time. They're influenced by several factors, including the federal funds rate, general economic conditions, and individual bank policies.
What type of bank account gives the most interest?
Typically, high-yield savings accounts, CDs, and money market accounts offer higher interest rates compared to standard checking or savings accounts.
Can you lose money in a high-yield savings account?
In most cases, you won't lose money in a high-yield savings account as long as the financial institution is insured by the FDIC or NCUA, which cover up to $250,000 per depositor, per institution, per ownership category. However, there are certain instances when your HYSA could lose money.
Best high-yield savings account methodology
Our grading system, collected and carefully reviewed by our personal finance experts, comprised nearly 300 data points for approximately 30 federally insured savings accounts to develop our list of the top 10 high-yield savings accounts. We considered accounts with yields higher than the national average for traditional savings accounts.
We evaluated these accounts according to several key metrics, including annual percentage yield, minimum opening deposit, minimum balance requirement, monthly fees, compounding frequency, and more.
The accounts on our list could earn a maximum of 45 points across all metrics. Here’s a closer look at the categories we considered:
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Annual percentage yield (APY): Accounts with higher APYs were rewarded with more points than those with lower APYs. Note that rates on our list are current at the time of publishing but are subject to change at any time.
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Minimum balance to earn interest: Some banks and credit unions require a minimum balance to earn the advertised rate. We favored accounts that had no or low minimum balance requirements.
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Minimum opening deposit: Many high-yield savings accounts require a minimum deposit to open an account. High-yield savings accounts with no or low minimum deposit requirements were given preference in our rankings.
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Monthly fees: It’s not uncommon for high-yield accounts to charge a monthly maintenance or service fee. We rewarded accounts with no monthly fees.
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Compounding frequency: Compounding can happen daily, monthly, or even annually. We awarded more points to accounts that compound interest frequently.
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Account bonus: Accounts with a current bonus promotion earned extra points.
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Maximum bonus amount: We awarded more points to the accounts with higher welcome bonuses.
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Customer service contact methods: Our team awarded one point for every contact method available to customers (phone, email, chat).
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Mobile app rating: High-yield savings accounts at banks with a higher average mobile app rating on the Apple and Google storefronts scored more points than those with lower user ratings.
