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Best High-Yield Savings Accounts For April 2024

Updates Editor,  Banking Reviewer and Writer
Deputy Editor

Reviewed

Updated: Mar 28, 2024, 5:44am

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

High-yield savings accounts can help you grow your savings faster than traditional savings accounts. The best high-yield savings rates currently range from 4.50% APY to 5.25% APY—far higher than the national average savings account rate of 0.47% according to the Federal Deposit Insurance Corporation (FDIC). Right now, the best APY can be found with the UFB Direct Secure Savings Account, which currently earns up to 5.25% APY.

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Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. We use data-driven methodologies to evaluate financial products and companies, so all are measured equally. You can read more about our editorial guidelines and the banking methodology for the ratings below.

  • 57 national banks and credit unions analyzed
  • 73 high-yield savings accounts investigated
  • 12 data points weighed and ranked

Read More

Best High-Yield Savings Accounts of April 2024

We compared 73 online savings accounts at 57 nationally available banks and credit unions to find some of the best high-yield savings accounts available.

Best Online High-Interest Savings Rates

Annual percentage yield (APY) was a main factor, but not the only factor considered when building our list of the best accounts. Here’s a summary of our top accounts organized by the highest APY that one could get.

See below to learn why we picked each account, including its pros and cons, and to access individual bank reviews.

Annual percentage yields (APYs) and account details are accurate as of March 25, 2024.


Summary: Best High-Yield Online Savings Accounts

Account Forbes Advisor Rating Annual Percentage Yield Minimum Deposit Requirement Monthly Maintenance Fee LEARN MORE
Milli Savings Account 4.8 5-removebg-preview 4.75% $0 $0 Learn More On Bankrate.com's Website
Bask Interest Savings Account 4.6 4.5-removebg-preview-1 5.10% $0 $0 Learn More On Bask Bank's Website Member FDIC
M1 High-Yield Savings Account 4.5 4.5-removebg-preview-1 Up to 5.00% $0 $10 per month for Active Plus membership Learn More Read Our Full Review
UFB Secure Savings 4.4 4.5-removebg-preview Up to 5.25% $0 $0 Learn More On UFB Direct's Website
Bread Savings High-Yield Savings Account 4.4 4.5-removebg-preview 5.15% $100 $0 Learn More On Bankrate.com's Website
Citizens Access® Savings 4.3 4.5-removebg-preview 4.50% $0.01 $0 Learn More On Bankrate.com's Website
SoFi Checking and Savings Account 4.3 4.5-removebg-preview Up to 4.60% $0 $0 Learn More On SoFi's Website
Synchrony Bank High Yield Savings 4.2 4-removebg-preview-4 4.75% $0 $0 Learn More On Bankrate.com's Website
BMO Alto Online Savings Account 4.2 4-removebg-preview-4 5.10% $0 $0 Learn More On Bankrate.com's Website

Best for Emergency Funds

Milli Savings Account

4.8
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

4.75%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Learn More Arrow
On Bankrate.com's Website

4.75%

$0

$0

Why We Picked It

We chose the Milli Savings Account because it lets you organize your savings into “Jars” to designate funds for different goals, and all Jars earn the same rate regardless of balance. This makes it a good option for emergency funds, large expenses and other milestones.

Why We Like It

We like the Milli Savings Account because it offers a competitive savings rate without fees, minimum balance requirements or withdrawal limits.

What We Don’t Like

Milli offers relatively few products compared to most other institutions on this list. Also, you can only access your account via Milli’s mobile app, as the bank doesn’t have branches or offer browser-based banking.

Who It’s Best For

Consider the Milli Savings Account if you’re mobile-minded because its unique savings features are designed with those in mind.

Pros & Cons
  • No monthly fees or minimum deposit and balance requirements
  • Ability to separate savings into Jars
  • Interest compounds daily
  • Milli Bank only offers checking and savings
  • No online banking
  • No in-person branches
Details

Milli Bank is a mobile-only banking division of the First National Bank of Omaha (FNBO). Currently, Milli exclusively offers a savings account and a checking account. It does not operate branches or have an online banking platform, so this account is best for those who like smartphone banking.

Interest compounds daily and is credited monthly at the end of each statement cycle. All customers earn 4.75% APY, with no minimums, activity requirements or balance tiers.

Best for High Interest on All Balances

Bask Interest Savings Account

4.6
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

APY as of July 31, 2023. APY is variable and subject to change after account opening. No monthly account fees or minimum deposit required. Must fund within 15 days of account opening.

5.10%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Learn More Arrow
On Bask Bank's Website
Member FDIC

APY as of July 31, 2023. APY is variable and subject to change after account opening. No monthly account fees or minimum deposit required. Must fund within 15 days of account opening.

5.10%

$0

$0

Why We Picked It

We chose the Bask Interest Savings Account for its high APY of 5.10% and the fact that you don’t need to maintain a certain balance to earn interest.

Why We Like It

Aside from its attractive APY, we like the Bask Interest Savings Account because it has few fees and no minimum deposit requirement.

What We Don’t Like

Bask doesn’t offer a checking account, so you must have an account at a second institution to transfer or withdraw funds. Transfers to external banks can take three days, slowing down the time it takes to access your cash.

Who It’s Best For

Bask Interest Savings Account is a stand-out option all around, especially for those who prefer fee-free banking.

Pros & Cons
  • No monthly fees
  • No minimum deposit or balance requirements
  • Interest compounds daily
  • No live chat support
  • No in-person branches
Details

Bask Bank is part of Texas Capital Bank. This savings account charges fees for outgoing wire transfers. Though you can’t walk into a branch as this is an online-only bank, Bask Bank customers have access to both email and phone support.

Interest compounds daily and is credited monthly on the last day of each statement cycle. Customers earn 5.10% APY with no minimums or activity requirements. Customers need to make a deposit within 15 days of account opening to avoid closure.

Best for High FDIC Insurance Limit

M1 High-Yield Savings Account

4.5
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

Up to 5.00%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$10 per month for Active Plus membership

Learn More Arrow
Read Our Full Review

Up to 5.00%

$0

$10 per month for Active Plus membership

Why We Picked It

We chose the M1 High-Yield Savings Account for its high FDIC insurance limits and competitive APY of 5.00% APY with M1 Plus membership, non-members earn 1.50% APY. This account uses a deposit network made up of other institutions to insure savings deposits up to $5 million, compared to the standard $250,000 limit.

Why We Like It

We like the M1 High-Yield Savings Account because you aren’t required to make a minimum deposit or maintain a minimum balance to earn the advertised APY, which is among the best available.

What We Don’t Like

You must pay for an M1 Plus membership to qualify for the best rate.

Who It’s Best For

Due to its brokerage services and robo-advisor, this account is best for active investors or those interested in buying and selling stocks.

Pros & Cons
  • FDIC insurance up to $5 million
  • No minimum deposit or balance requirements
  • Full suite of banking products including checking, investing and lending
  • Monthly fee required to earn the higher APY
  • Interest compounds monthly
  • Check deposits are not permitted
  • M1 does not support ACH deposits from certain banks
  • No in-person branches
Details

M1 Plus also includes cash back on credit card spending, loan discounts and more investing options. M1 Plus costs $10 per month or $95 per year after a three-month free trial.

M1 isn’t a bank but a fintech company. M1 savings deposits are held by FDIC-insured B2 Bank. Through B2 Bank’s Insured Deposit Network Program, which utilizes the coverage of other FDIC institutions, M1 deposits can be insured up to $5 million.

Interest compounds and is credited to your account monthly. Customers can earn 5.00% APY with M1 Plus membership, non-members earn 1.50% APY.

Best for Cash Withdrawals

UFB Secure Savings

4.4
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

Accurate as of 8/11/2023

Up to 5.25%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Learn More Arrow
On UFB Direct's Website

Accurate as of 8/11/2023

Up to 5.25%

$0

$0

Why We Picked It

We chose the UFB Secure Savings because account holders receive a complimentary ATM card for convenient cash withdrawals at more than 91,000 fee-free ATMs.

Why We Like It

We like the UFB Secure Savings because it offers a competitive APY of up to 5.25% APY on all balance tiers and has no maintenance or service fees and no minimum deposit. UFB also offers 24/7 phone support.

What We Don’t Like

UFB doesn’t offer a checking account, so it’s not a suitable choice for an all-in-one bank.

Who It’s Best For

This account is best for those who already have a checking account and want easy access to the cash in their savings account, as it includes an ATM card.

Pros & Cons
  • Comes with an ATM card
  • No monthly fees
  • No minimum deposit requirements
  • Interest compounds daily
  • No in-person branches
  • Excess withdrawal fee of $10
Details

UFB Direct accounts are offered through Axos Bank. While this account technically has balance tiers, all balances currently earn the same rate. You earn up to 5.25% APY on all balance tiers, with no activity or minimum requirements you have to meet to qualify. Interest is compounded daily and credited monthly. Most transactions are limited to six per statement period.

Best for Free Incoming Wire Transfers

Bread Savings High-Yield Savings Account

4.4
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

5.15%

Minimum Deposit Requirement

$100

Monthly Maintenance Fee

$0

Learn More Arrow
On Bankrate.com's Website

5.15%

$100

$0

Why We Picked It

We chose Bread Savings High-Yield Savings Account because it’s a simple, high-earning account with a couple of standout perks, including unlimited mobile check deposits and ACH transfers and fee-free incoming wire transfers.

Why We Like It

We like Bread Savings High-Yield Savings Account because it pays an APY of 5.15% on all balances and has no fees.

What We Don’t Like

Bread doesn’t offer a checking account or 24/7 live support, plus you’ll need at least $100 to open an account.

Who It’s Best For

This account is ideal for people who want a hands-off savings account and plan to make deposits more often than withdrawals.

Pros & Cons
  • Highly competitive APY
  • No monthly fees
  • Unlimited deposits with mobile check deposit and ACH transfer
  • $100 minimum opening deposit requirement
  • No in-person branches
  • No live chat customer support
Details

Bread Savings is a division of Bread Financial. Interest compounds daily and is credited to your account monthly. A minimum deposit of $100 is required to open an account.

Best for No Fees

Citizens Access® Savings

4.3
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

4.50%

Minimum Deposit Requirement

$0.01

Monthly Maintenance Fee

$0

Learn More Arrow
On Bankrate.com's Website

4.50%

$0.01

$0

Why We Picked It

We chose the Citizens Access® Savings because it has no fees and no hidden costs.

Why We Like It

We like the Citizens Access® Savings because any balance earns a generous 4.50% APY—with no catch. And, with a highly rated mobile app and phone support seven days a week, Citizens Access customers are well taken care of.

What We Don’t Like

Despite its name, this account is not especially accessible. Citizens Access accounts can’t be accessed from Citizens Bank branches or ATMs. You must transfer funds to an external account or request a check by mail to access your money.

Who It’s Best For

This account is best for those looking for a simple high-yield savings account that has no fees and a competitive APY.

Pros & Cons
  • No fees
  • Low minimum opening deposit
  • Highly rated mobile app
  • No cash deposits or wire transfers
  • Citizens Access doesn’t offer a checking account
Details

Citizens Access is the digital banking division of Citizens Bank. You can access your deposits by linking your Citizens Access account to an external bank account or requesting a check. Interest compounds daily and is credited monthly. This account has no fees or transaction limits.

Best for Combined Checking and Savings

SoFi Checking and Savings Account

4.3
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

Up to 4.60%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Learn More Arrow
On SoFi's Website

Up to 4.60%

$0

$0

Why We Picked It

We chose the SoFi Checking and Savings Account because it combines a competitive interest rate with spending features in a hybrid account.

Why We Like It

We like the SoFi Checking and Savings Account because it offers up to 0.50% APY on checking and 4.60% APY on savings if you set up direct deposit or by depositing $5,000 or more every 30 days. Customers who don’t mee this criteria earn 1.20% APY on savings balances—plus, you can earn a $50 bonus when you receive $1,000 to $4,999.99 in qualifying direct deposits or a $300 bonus when you receive at least $5,000 in qualifying direct deposits during the bonus period. It also has no account fees and unlimited transfers between accounts.

What We Don’t Like

SoFi doesn’t offer stand-alone checking or savings accounts, so it’s not great for folks who like to keep their funds separate.

Who It’s Best For

This account is best for those seeking checking and savings features in a single, flexible account.

Pros & Cons
  • Competitive APY
  • Few fees
  • Early direct deposit
  • Can earn cash-back rewards using SoFi debit card
  • Large fee-free ATM network
  • Must sign up for direct deposit or deposit $5,000 or more every 30 days to earn the highest interest rate
  • No stand-alone checking account
Details

You have to set up direct deposit to earn 4.60% APY on your savings and Vaults balances and 0.50% on your checking balance. Alternatively, you can earn these rates by depositing at least $5,000 every 30 days. If you don’t meet any of these requirements, your savings and Vaults balances will earn 1.20% APY, and your checking will earn 0.50%. Interest compounds daily and is credited monthly.

This account has no fees. You can withdraw cash for free at any Allpoint ATM, and you can deposit cash at certain third-party retailers.

To earn the cash bonus, you have to set up and receive direct deposits totaling at least $1,000 within the Direct Deposit Bonus Period. Customers who receive direct deposits totaling $1,000 to $4,999.99 will get a $50 bonus, and customers who receive $5,000 or more will get a $250 bonus.

Disclosure

SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period 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 stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period 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.

Best for ATM Reimbursements

Synchrony Bank High Yield Savings

4.2
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

4.75%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Learn More Arrow
On Bankrate.com's Website

4.75%

$0

$0

Why We Picked It

We chose the Synchrony Bank High Yield Savings because it includes an ATM card that makes it easy to access your funds. Plus, Synchrony will reimburse up to $5 per month in ATM fees charged by other financial institutions.

Why We Like It

We like Synchrony’s High Yield Saving Account because it earns a competitive 4.75% APY with no minimum deposit, monthly fee or minimum balance requirement.

What We Don’t Like

Synchrony doesn’t offer a checking account, so you won’t be able to do all of your banking with a single institution.

Who It’s Best For

The ATM access and reimbursement make this account best for someone who needs easy and frequent access to their funds.

Pros & Cons
  • No monthly fee and few other fees
  • ATM fee reimbursement for charges from other banks
  • Competitive APY
  • Highly rated mobile app
  • No surcharge-free ATM network
  • No physical locations
Details

Interest compounds daily and is credited monthly. The only fees currently charged by this account include outgoing wire fees, stop payment fees and overnight check fees. While there are no minimum balance requirements, Synchrony may close accounts that have a balance of $0 for over 60 days.

Best for Unlimited Transfers and Withdrawals

BMO Alto Online Savings Account

4.2
Our ratings take into account a product's APYs, fees, minimums and other category-specific attributes. All ratings are determined solely by our editorial team.

Annual Percentage Yield

5.10%

Minimum Deposit Requirement

$0

Monthly Maintenance Fee

$0

Learn More Arrow
On Bankrate.com's Website

5.10%

$0

$0

Why We Picked It

We chose the BMO Alto Online Savings Account because it offers an outstanding APY and includes unlimited transfers and withdrawals.

Why We Like It

We like the BMO Alto Online Savings Account because you don’t need to meet any requirements to earn its 5.10% APY, and there are no fees or minimum deposit requirements.

What We Don’t Like

Your account is only accessible via a web browser. BMO Alto doesn’t have a mobile app, nor can you access accounts from branches or ATMs.

Who It’s Best For

This account is worthy of consideration if you’re looking for a free high-yield savings account that doesn’t penalize excess transactions.

Pros & Cons
  • Highly competitive interest rate on all balances
  • Unlimited transfers and withdrawals
  • No mobile app for BMO Alto account holders
  • Limited ways to fund your account
Details

BMO Alto is an online division of BMO Bank. BMO Alto has no branch locations and no mobile app, so customers have to do all of their banking through the BMO Alto website. The only way to make deposits into your account is via an ACH transfer.

BMO Alto doesn’t have minimum balance requirements for savings accounts, but your account will be automatically closed if it has a balance of $0 for 90 consecutive days. Interest compounds daily and is credited to your account monthly.


Methodology

To create a list of the best savings accounts, Forbes Advisor analyzed 73 online savings accounts at 57 financial institutions, including a mix of traditional brick-and-mortar banks, online banks, and credit unions. We ranked each account on 12 data points within the categories of APY, fees, minimum requirements, customer experience and digital experience. All of the accounts on our list are online-based accounts.

Here’s the weighting assigned to each category for high-yield savings accounts:

  • APY: 70%
  • Fees: 10%
  • Digital experience: 5%
  • Customer experience: 5%
  • Minimum deposit requirement: 5%
  • Minimum balance to avoid monthly: 5%

We also considered whether there were complex tier structures or requirements to earn the APY or other stipulations to earn the APY. Minimum deposit requirements of $10,000 or higher affected scores negatively, as did high minimum balance requirements to avoid fees. The savings account must be nationally available to appear on this list.

To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.


All About High-Yield Savings Accounts


Are Savings Interest Rates Going Up?

High-yield savings account rates were on a steady upward trend through 2022 and 2023. That’s largely due to the Federal Open Market Committee’s efforts to fight inflation by steadily increasing the federal funds rate, which is the interest rate at which banks lend money to one another overnight.

However, inflation began to cool in late 2023. The FOMC held the federal funds rate steady at its last few meetings, indicating that while the Fed is still keeping an eye on inflation, rates will likely begin to fall at some point this year. As of March, Federal Reserve Chair Jerome Powell expressed that inflation is still a concern and acknowledged the risks of cutting rates too quickly. At the same time, he made it clear that interest rates are likely to begin trending downward this year.

We expect inflation to come down, the economy to keep growing. If that’s the case, it will be appropriate for interest rates to come down significantly over the coming years.
Federal Reserve Chair Jerome Powell, March 2024

When the federal funds rate adjusts, banks typically follow suit and shift rates for savings and other deposit accounts accordingly. Rate hikes often translate to banks paying higher rates for deposit accounts. Throughout 2023, the national average savings rate steadily increased alongside the federal funds rate—from 0.33% in January 2023 to 0.46% in December 2023, according to the FDIC.

However, savings rates are stabilizing. In the coming months, any Federal Reserve rate cuts can trigger further reductions in savings account APYs. Review savings interest rates today to see what institutions are paying on consumers’ deposits.

How High Will Savings Interest Rates Go in 2024?

No one knows for sure how high savings interest rates will go in the near future, but it’ll depend largely on what happens with the federal funds rate. Currently, the target federal funds rate ranges between 5.25% and 5.50%—the highest it’s been in over 20 years.

However, the Federal Reserve has held rates steady in its recent meetings. Looking ahead, the FOMC projects multiple rate cuts by the end of 2024.

Pro Tip
Brick-and-mortar banks rarely offer high-yield savings accounts because they have far more overhead expenses than online banks. If you’re looking for the highest rates around, online banks are your best bet.

What Is a High-Yield Savings Account?

A high-yield savings account is a type of savings account that typically offers higher interest rates than a traditional savings account. You can generally find high-yield savings accounts at online banks and credit unions. These financial institutions normally don’t carry the overhead costs or profit-margin requirements of a traditional brick-and-mortar bank, allowing them to pass those savings on to customers through higher rates and lower fees. 

Interest rates vary based on several factors, but it’s not uncommon to find high-yield savings accounts that offer up to 4.00% APY or more. A high-yield savings account may earn as much as 10 times the national average rate on standard savings accounts.


High-Yield Savings Account Terms To Know

When researching high-yield savings accounts, there are certain terms you’re likely to come across. Understanding what they mean can help you to find the right savings option.

  • Annual percentage yield (APY). The annual percentage yield or APY on a savings account reflects the interest you could earn on your savings over the course of a year when compounding interest is factored into the equation.
  • Compounding interest. Compounding interest is interest earned on your previously accrued interest. It’s calculated based on your principal deposits and the interest you earn as you go.
  • High yield. High yield means that a savings account offers a higher-than-average interest rate.
  • Minimum deposit requirement. A minimum deposit requirement for a high-yield savings account is the amount you’ll need to deposit to open the account. Depending on the bank, this may be as low as $1 or even $0.
  • Monthly maintenance fee. A monthly maintenance fee is a fee certain banks charge you to keep your account open. The advantage of opening a high-yield savings account with an online bank is that they don’t usually charge monthly maintenance fees.
  • Online bank. Online banks operate on the internet and typically do not have branches. Instead, you access your money via web browsers or mobile banking apps. Some online banks also offer ATM access.

Are High-Yield Savings Accounts Safe?

High-yield savings accounts are generally considered to be safe places to keep your money. When you deposit money into a high-yield savings account, you’re keeping it at a bank that’s FDIC-insured or a credit union with NCUA insurance to protect your deposit.

In terms of security, banks and other financial institutions that offer high-yield savings accounts institute a number of measures to protect your personal and financial information. Those measures can include multifactor authentication, data encryption and secure data storage.

Can You Lose Money in a High-Yield Savings Account?

You can’t lose money in a savings account if you’re saving at an FDIC-insured bank or an insured credit union.

The FDIC insures accounts at member banks up to $250,000 per depositor, per account ownership type and per financial institution. The National Credit Union Administration (NCUA) extends similar coverage to deposit accounts at member credit unions.

If your bank or credit union fails and that institution is insured, then you can’t lose money in savings up to the allowed limits. Given the rarity of bank failures, there’s very little risk of ever losing money.

You may, however, lose some of the value of saving if interest rates are unable to keep pace with inflation. When inflation results in higher prices, your actual savings balance doesn’t change but that money loses some of its spending power.


Online Savings Accounts Fees

Generally, online savings accounts have fewer and lower fees than traditional savings accounts. Many online savings accounts have no monthly maintenance fees or minimum account balance requirements.

Each of our picks for the best online savings accounts has no monthly maintenance fee (or has the option to waive the fee by signing up for e-statements). But that doesn’t mean these accounts are totally fee-free. They may charge for things like paper statements and excessive transactions. As with any account or financial product, it’s important to read the fine print to make sure you’re aware of any fees before opening an account.


How To Choose a High-Yield Savings Account

Choosing the best high-yield savings account isn’t always obvious, so comparing accounts will help you find the best option. Here are some factors to consider before opening an account.

Interest Rate

Perhaps the most important factor when choosing a high-yield account is the interest rate. Earning a higher interest rate will help maximize your savings more quickly.

Deposit Requirements

Some accounts require a minimum opening deposit for a new account. You may also need to maintain a specific balance to earn interest or avoid monthly fees.

Account Fees

Fees can cancel out interest earned on your savings. Check the account’s fee schedule to determine if you’ll be charged a monthly service fee or other fees. Some banks will waive fees if you keep a certain amount in your account.

Compounding Frequency

Interest on a savings account can compound daily, weekly, monthly, quarterly or annually, depending on the bank. When interest compounds, you earn interest on your interest. Choosing an account that compounds more frequently can help you earn more interest over time. 

Pro Tip
When choosing a high-yield savings account, it’s important to read the fine print. If the advertised APY seems exceptionally high, it might be a promotional rate that only applies to your balance for a certain period of time.

Pros and Cons of High-Yield Savings Accounts

Pros

  • Higher interest rates than traditional savings accounts
  • Lower or no fees
  • User-friendly mobile platforms
  • Unique savings tools

Cons

  • In-person banking may not be an option
  • Cash withdrawals and deposits may not be available
  • May have requirements you must meet to earn the highest APY
  • Interest rates are variable and can change at any time

How To Open a High-Yield Savings Account Online

You can open a high-yield savings account relatively quickly. Once you’ve found an account that matches your needs, you’ll need to fill out an online application. The bank may ask for this specific information to verify your identity during the application process:

  • Name
  • Address
  • Email address
  • Phone number
  • Date of birth
  • Social Security number
  • Number from your driver’s license or other government-issued photo ID
  • Funding source account information

If you’re opening a joint account, both parties will need to provide personal and financial information.

Once the account is approved, you can fund it using a linked bank account or other acceptable methods.


Best Ways To Use a High-Yield Savings Account

Because of their earning potential, high-yield savings accounts are excellent for reaching savings goals. Having a specific account for savings goals allows you to keep those funds separate from your everyday spending account. You can use a high-yield savings account to save for a variety of goals and large expenses, including:

  • An emergency fund
  • Vacation costs such as flights, hotel stays, meals and souvenirs
  • A wedding
  • Home renovations or repairs
  • Furniture and appliances
  • A down payment on a home
  • A new car
  • Educational costs such as tuition, extracurriculars and living expenses (but consider a 529 plan for long-term education savings)

High-yield savings accounts are ideal for short-term financial goals, but they’re not good for holding your retirement savings. A tax-advantaged retirement or investment account typically offers better returns and tax savings not found with high-yield savings accounts.


Are High-Yield Savings Accounts Worth It?

A high-yield savings account is an effective savings vehicle if you have funds you want to set aside for short-term financial goals or needs. It’s not a replacement for a retirement or tax-advantaged investment account, but it’s a great option for certain savings goals.

For example, a high-yield savings account is a good place to park your emergency fund. You can access the funds easily, but they earn more interest than they would in a traditional savings account. On the other hand, it wouldn’t be worth keeping your kid’s college savings in a high-yield savings account if you have a decade or longer to invest.

I like to use my high-yield savings account as an “in-between” place for cash I don’t have plans for yet. I’ll transfer my extra income from checking first, and then I’ll think about where to move it. I might ultimately send some to my investment account, some to CDs to save for different goals and some to loan accounts to pay off debt while keeping a set buffer or minimum for emergencies. I think of high-interest savings like a good street parking spot—it’s convenient, and I’m happy to have it, but it’s not my destination.

Lauren Graves, Forbes Advisor Staff


Alternatives to High-Yield Savings Accounts

A high-yield savings account isn’t the only place to keep your savings. Here are some alternatives to consider.

High-Yield Savings vs. Money Market Account

Money market accounts are deposit accounts that combine features of checking and savings accounts. You might earn interest the same way you would with a savings account. But you may also be able to write checks from your account or make purchases using a linked debit card. These are features you typically don’t get with a savings account.

So, which is better, a money market account or high-yield savings?

The answer depends on what you need the account to do for you, how much you’re willing to pay for it and what kind of APY you’re hoping to earn. Money market accounts can offer more flexibility and access to your savings, though you still may be limited to a certain number of withdrawals and transfers per month. On the other hand, high-yield savings accounts could offer better interest rates.

High-Yield Savings vs. Certificates of Deposit (CD)

Certificates of deposit (CDs) are similar to savings accounts in that you earn interest on your balance. The key difference is that money you deposit into a CD is locked up for a specific time period, such as three months or one year. If you withdraw your savings before the CD matures, you could forfeit some or all of the interest earned.

The main benefits of CDs over high-yield savings accounts are higher rates and fixed earnings since your rate generally won’t fluctuate over the term of your CD. Though CDs allow you to lock in a rate for a specific period, the downside is it’s not as easy (or cheap) to access your money. For this reason, CDs make sense if you’re sure you won’t need to access your savings before the maturity date.

Other High-Yield Savings Account Alternatives

  • Cash management accounts. Cash accounts are usually associated with taxable brokerage accounts, and these accounts are designed to hold money you plan to invest later or receive after selling investments you own. A cash account can function like a checking account and earn interest like a savings account, often at competitive rates.
  • Investment accounts. These accounts are designed for investing in the financial markets. A brokerage account could yield a substantially better return than a savings account, but you risk losing your money.

Recap: Best High-Yield Savings Accounts Of 2024

  • UFB Secure Savings: Up to 5.25% APY: UFB Secure Savings is best for customers who make a lot of cash withdrawals. While ATM cards aren’t common with savings accounts, UFB provides a complimentary card and access to over 91,000 fee-free ATMs.
  • Bread Savings High-Yield Savings Account: 5.15% APY: The Bread Savings High-Yield Savings Account is best for those receiving a lot of wire transfers or making frequent deposits into their savings accounts. While some banks put a limit on monthly deposits, Bread allows unlimited mobile check deposits and ACH transfers, and there’s no fee for incoming wire transfers.
  • Bask Interest Savings Account: 5.10% APY: If you prioritize ease of use and high interest over an abundance of features, this account should be on your radar. Bask Bank’s Interest Savings account is a straightforward account with no monthly fees, no minimum balance requirements and a competitive interest rate on any balance.
  • BMO Alto Online Savings Account: 5.10%: BMO Alto’s Online Savings account is best for unlimited transfers and withdrawals. If you frequently move money in and out of savings or need unlimited access to your funds, this account may be a good fit.
  • M1 High-Yield Savings Account: Up to 5.00% APY: M1’s High-Yield Savings Account is best for customers who plan to keep a high balance in their savings account. Typical FDIC insurance covers $250,000 per institution, but M1 offers up to $5 million in FDIC coverage through its network of insured institutions.
  • Milli Savings Account: 4.75% APY: Milli’s savings account is best for those building an emergency fund or working toward multiple savings goals. With Milli Savings Jars, you can create and customize up to five different savings goals. Plus, you’ll earn one of the highest savings rates available.
  • Synchrony Bank High Yield Savings: 4.75% APY: Synchrony High Yield Savings is the best high-yield savings account for ATM reimbursements. Not only does the account come with an ATM card for convenient access to your funds, but Synchrony will reimburse up to $5 per month in out-of-network ATM fees.
  • SoFi Checking and Savings Account: Up to 4.60% APY: SoFi Checking and Savings is best for customers who do all their banking—from spending to saving money—in one account. Those who prefer the convenience of a single account will love the accessible checking features and the high-yield interest earnings.
  • Citizens Access® Savings: 4.50% APY: Citizens Access Savings is best for those who want a no-fee savings account—period. Many online savings accounts forgo monthly fees but charge fees for excess transactions, ATM use or other services. Citizens Access has no fees or hidden costs, so you can be confident this is a truly free account.

Banks We Monitor

We included these institutions in our research for the best high-yield savings account rates: Affirm, Alliant Credit Union, Ally Bank, American Express, Axos Bank, Bank of America, Bank5 Connect, BankDirect, BankPurely, Barclays, Bask Bank, BrioDirect Banking, Capital One, Charles Schwab Bank, Chase, Chime®, CIBC Bank, CIT Bank, Citibank, Citizens Access, Colorado Federal Savings Bank, Bread Financial, Connexus Credit Union, Consumers Credit Union, Discover, Dollar Savings Direct, E*Trade Bank, Fitness Bank, FNBO Direct, HSBC, HSBC Direct, iGoBanking, Incredible Bank, Live Oak Bank, Marcus by Goldman Sachs, My eBanc, MySavingsDirect, Navy Federal Credit Union, nbkc Bank, PNC Bank, Popular Direct, Quontic, Rising Bank, SalemFiveDirect, Sallie Mae Bank, SFGI Direct, SmartyPig Bank, Synchrony Bank, U.S. Bank, UFB Direct, Varo Bank and VIO Bank.


Frequently Asked Questions (FAQs)

How do you calculate interest on a high-yield savings account?

The quickest way to calculate compound interest is with a compound interest calculator. But if you want to do the math yourself, this guide to calculating compound interest includes a formula and examples.

Which high-yield savings account is best?

The best high-yield savings accounts earn competitive interest rates, come with no fees and address your needs. The best account depends on your banking needs and can vary from person to person.

Why did rates on high-yield savings accounts go down?

Interest rates on high-yield savings accounts dropped in recent years partially because rates on loans dropped during the Covid-19 pandemic. Banks typically keep APYs lower than rates on lending products to ensure profitability. But now that the Fed has repeatedly raised interest rates to fight inflation, APYs are rising rapidly.

How often do high-yield savings accounts pay interest?

Interest payouts on high-yield savings accounts typically occur on a monthly basis but may depend on the financial institution.

How many high-yield savings accounts can I open?

You can open as many high-yield savings accounts as you want, though some banks restrict the number of savings accounts you can hold at one time. To work around this, you can spread your savings across different banks or open an account that lets you allocate your savings to various goals, reducing the need for multiple accounts.


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Brooke Enloe
Updates Editor

Brooke Enloe is an Updates Editor on the Banking team. She is an editor and writer, passionate about producing enlightening content for readers. Her articles are about recent banking news, specifically bonuses and new products. Brooke has written copy for various websites, including blogs and news releases. Brooke is a graduate of Clemson University with a degree in Communication and a double minor in Brand Communication and Writing in Media Studies.

Emily Batdorf
Banking Reviewer and Writer

With a background in education and a fascination with finance, Emily Batdorf writes approachable content for consumers who want to deepen their understanding of personal finance topics. She loves writing about financial foundations—like opening the right bank accounts, building an emergency fund and tackling debt. Her work has been featured on sites including USA Today, MarketWatch, Credible and LendEDU.

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