Editor’s Note: APYs listed in this article are up-to-date as of the time of publication. They may fluctuate (up or down) as the Fed rate changes. CNBC Select will update as changes are made public.
Thanks to interest rate hikes by the Federal Reserve, banks have been offering especially high annual percentage yields (APYs) on their high-yield savings accounts in recent months, with some banks offering APYs of over 5%.
Unlike certificates of deposit (CDs), the interest rate of a high-yield savings account can go up or down while your money is in the account. Still, you can generally expect an APY that’s over 10 times greater than the average traditional savings account.
To determine which high-yield savings accounts are the best overall, CNBC Select analyzed and compared dozens of savings accounts offered by online and brick-and-mortar banks, including large credit unions. We considered factors like the account’s APY, its ease of use, account accessibility, monthly fees and minimum balance requirements. The top savings accounts offer an above-average APY to all customers (no matter their balance), are FDIC-insured, have zero monthly maintenance fees and low (or no) minimum balance requirements. (See our methodology for more information on how we choose the best high-yield savings accounts.)
Best high-yield savings accounts of 2024
- Best overall: LendingClub High-Yield Savings
- Runner-up: UFB Secure Savings
- Best for earning a high APY: Western Alliance Bank Savings Account
- Best for no fees: Marcus by Goldman Sachs High Yield Online Savings
- Best for checking/savings combo: Ally Savings Account
- Best for easy access to your cash: Synchrony Bank High Yield Savings
- Best for earning airline miles: Bask Bank Mileage Savings Account
- Best for welcome bonus: SoFi Checking and Savings
- Best if you want extra help saving: Varo Savings Account
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No minimum balance requirement after $100.00 to open the account
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Pros
- Strong APY
- No minimum balance required
- No monthly fees
- Free ATM card and no ATM fees
Cons
- $100 minimum opening deposit required, though there’s no minimum balance after that
- No physical branch locations
The LendingClub High-Yield Savings account stands out for offering one of the highest returns on your money, charging no monthly maintenance fee and not having a minimum balance requirement. You just need an initial $100 deposit to open the account.
Unlike many savings accounts, LendingClub provides customers with a free ATM card and never charges any ATM fees. This makes it easy to access your savings account and withdraw money whenever you want. You can also use your funds to pay bills, send money to friends and family and make internal and external transfers.
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No max number of transactions; Max transfer amounts may apply
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Overdraft fees may be charged, according to the terms, but a specific amount is not specified; overdraft protection service available
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Pros
- Strong APY
- No minimum balance
- No monthly fees
- Free ATM card
- Free transfers between direct deposit accounts
- Online and SMS banking available
- Mobile check deposits
Cons
- No option to add a checking account
- No physical branch locations
- Potential overdraft fee, though, overdraft protection is offered
UFB Secure Savings is ideal for anyone who wants to earn a high return, while also maintaining easy access to their cash.
The account charges no monthly fees, allows unlimited transfers and has no minimum deposits. Whether you deposit $1 or $1,000, you’ll earn the same, high return.
As with the other banks on this list, UFB Direct is an online-only bank, and it is a division of Axos Bank. Although there are no physical branches and you can’t add a checking account, customers do get a free ATM card.
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Up to 6 transactions each month
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The bank may charge fees for non-sufficient funds
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See our methodology, terms apply.
Pros
- Strong APY
- Low minimum deposit required
- No monthly fees
Cons
- Bank may charge non-sufficient funds
- Doesn’t offer checking account or ATM access
- Accounts are opened and managed on Raisin.com
The Western Alliance Bank Savings Account account is for anyone who’s focused on maximizing their returns. With a 5.32% APY, it offers one of the highest interest rates currently available.
Western Alliance requires just a $1 minimum deposit to open an account and charges no monthly fees. Plus, there is no cap for offering this high APY.
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None to open; $1 to earn interest
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At this time, there is no limit to the number of withdrawals or transfers you can make from your online savings account.
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Pros
- No minimum balance (just $1 to earn interest)
- No monthly fees
- No limit on withdrawals or transfers per statement cycle
- Easy-to-use mobile banking app
- Offers no-fee personal loans
Cons
- No option to add a checking account
- No ATM access
Marcus by Goldman Sachs High Yield Online Savings offers no fees whatsoever, no minimum deposits and easy mobile access. It’s the most straightforward savings account to use when all you want to do is grow your money with zero conditions attached.
The Marcus account also stands out thanks to its mobile banking app, which is simple to use and allows you to set up recurring deposits, track your savings goals and see how much interest you’ve earned this year. The bank’s U.S.-based contact center is open 24/7 for live customer support over the phone or through online chat.
Account holders can withdraw money from their Marcus savings account online and by phone through ACH or by free wire transfer to a linked account at another bank. You can also request a withdrawal by check mailed to you. Marcus doesn’t charge a fee if you link other bank accounts for incoming and outgoing transfers, but keep in mind that your other bank might.
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No monthly maintenance fee
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Unlimited withdrawals or transfers per statement cycle
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Yes, if have an Ally checking account
Pros
- Strong annual percentage yield on all balance tiers
- No minimum balance
- No monthly maintenance fee
- Unlimited withdrawals or transfers per statement cycle
- Option to add a checking account
- ATM access if you have a checking account
- No excessive transactions or overdraft fees
Cons
- Higher APYs offered elsewhere
Ally is a good choice for anyone looking to do all their banking in one place. While the Ally Savings Account is a good high-yield account on its own, account holders can enjoy even more benefits if they also have an Ally Bank Spending Account (Ally’s checking product).
In addition to a solid APY, no minimum account balance and no monthly maintenance fees, an Ally checking and savings account also gives you access to over 43,000 free Allpoint® ATMs, making it easy to withdraw cash when you need to. If you only have an online savings account, you won’t have access to a debit card.
If you use an out-of-network ATM, Ally doesn’t charge a fee and if the ATM provider does, Ally will reimburse those fees up to $10 per month.
Not all online banks also offer a checking account option. Saving your money with a bank that doesn’t offer a checking account means you would have to transfer your money between banks, which could take a couple of days. By law, account holders with Ally can withdraw or transfer money online up to six times per month with no penalty. After, Ally charges $10 per transfer. You can also call the bank to request a mailed check, which doesn’t count as one of your six transactions.
Account holders can organize their saving goals by creating up to 10 different “buckets” within the same savings account. For example, you can create a designated fund for a “Future Vacation” and another for “Emergency Savings.”
Ally is also a consumer favorite because of its easy-to-use mobile app and 24/7 live customer service that is available over the phone, through online chat or on the Ally mobile app.
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Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D
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None, but may result in account closure
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Pros
- Strong APY
- No minimum balance
- No monthly fees
- Up to 6 free withdrawals or transfers per statement cycle*
- Easy ATM access
Cons
- Account could close if you make more than 6 transactions in a statement cycle
- No option to add a checking account
Withdrawing money is quick and easy with the Synchrony Bank High Yield Savings account. There is no minimum balance requirement, no monthly fees and a strong APY. But what makes this account stand out is its convenient withdrawal options.
Synchrony Bank offers an optional ATM card to its savings account holders. You can access your money by ATM, wire transfer (up to three free per statement cycle) or through an electronic transfer to or from accounts you have at other banks.
Though you are limited to six free withdrawals or transfers per statement cycle, Synchrony Bank allows you to conduct unlimited transactions at an ATM. The bank won’t charge an ATM fee, but the ATM provider may. For these charges, Synchrony Bank refunds ATM fees in the U.S. up to $5 per statement cycle.
Still, you should be wary of how much you withdraw from an ATM because the fees, even with a $5 refund, can add up. According to Bankrate, ATM operators charge customers an average fee of $3.15. Just going to the ATM twice in one month would already put you over the refundable amount.
Synchrony Bank’s customer service line is available seven days a week by phone or online chat, as well as 24/7 through its app so you can manage your account on the go. Additional customer perks include complimentary identity theft assistance, travel discounts and free webinars.
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Up to 6 free withdrawals or transfers per statement cycle
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Pros
- Strong APY
- No minimum balance
- No monthly fees
Cons
- No option to add a checking account
- No ATM access
If you’re a frequent traveler, you can opt for the Bask Bank Mileage Savings Account to earn American Airlines AAdvantage® miles instead of cash. You can use these miles for flights on American Airlines or any of its 20+ partner airlines. So, you can effectively fund your next vacation without any spending.
The account has no monthly fees and no minimum deposits. Just note that the bank may close your account if it remains unfunded for 60 days. Bask Bank is a division of Texas Capital Bank, but operates completely online.
If you want to maximize your interest-earning potential in cash, the Bask Bank Interest Savings Account is a great choice too. It offers a very respectable cash APY to all savings account holders.
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Members with direct deposit earn 4.60% APY on savings and Vaults balances and .50% APY on checking balances; members without direct deposit earn 1.20% APY on all account balances in checking and savings (including Vaults)
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55,000+ fee-free ATMs within the Allpoint® Network
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No-Fee Overdraft Coverage is available; however, SoFi requires $1,000 of monthly direct deposit inflows to unlock it
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Pros
- No minimum deposit to open an account
- 4.60% APY with direct deposit
- 2-day-early-paycheck automatically when you set up direct deposit
- Save your change automatically with Roundups and set savings goals with Vaults
- Get up to 15% cash back at local establishments
- No foreign transaction fees
Cons
- No reimbursement for out-of-network ATM fees
- Not a standalone checking or savings account
The SoFi Checkings and Savings account stands out for offering a valuable welcome bonus after you set up and receive direct deposit payments. You can earn up to $300 with direct deposit.
The account also gives you a solid return. The only caveat is that you must opt-in to direct deposit in order to get the maximum interest.
In addition, the account comes with a debit card that has fee-free ATM access through the Allpoint® Network, which has over 55,000 locations across the country. And while paying with a debit card can sometimes lack rewards, you can get up to 15% cash back when you use your card at specific merchants.
And if you’re looking to fully immerse yourself in the fintech/online bank space, SoFi offers a variety of financial products, including student loans, personal loans, mortgage refinancing, auto loans and more.
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Begin earning 3.00% and qualify to earn 5.00% if you meet requirements
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None; $0.01 to earn savings interest
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Up to 6 free withdrawals or transfers per statement cycle *The 6/statement cycle withdrawal limit is waived during the coronavirus outbreak under Regulation D
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Yes, if have a Varo Bank Account
Pros
- High APY and option to earn even higher
- No minimum balance
- No monthly fees
- Up to 6 free withdrawals or transfers per statement cycle*
- ATM access at 55,000 fee-free AllPoint® ATMs with a Varo Bank Account
- Offers 2 programs to help automate your savings
Cons
- Cash deposits are only available through third-party services, which charge a fee
Varo is an all-mobile national bank, so for those looking to save and don’t mind banking entirely over the phone or online, the Varo Savings Account makes a good option.
Varo offers a solid APY to all savings account holders, as well as a checking account option. Neither accounts require minimum balances to open and neither charges monthly maintenance fees.
Varo stands out because of its uniquely tiered APY program that encourages you to save more.
For those who want extra help saving, the online bank offers two programs that automatically transfer money from your Varo bank account to your savings account: Save Your Pay, which transfers a percentage of your paycheck into your savings, and Save Your Change, which rounds up your checking account transactions to the nearest dollar and transfers the difference to your savings.
Varo also offers an ATM network with no fees (as well as no penalty for overdrafts up to $50). For any cash deposits, note that Varo only makes these available through third-party services, which may charge a fee.
A high-yield savings account is like a normal savings account but offers a higher interest rate, or APY, on one’s cash. With a higher APY, your money grows faster as it sits in your account. Note, however, that these offered interest rates are variable, meaning they can go up or down at any time.
Not only does your money earn a better return in a high-yield savings account than in traditional savings, but you still have access to your cash when you need it as you would in a normal savings account. Your money in a high-yield savings account is federally insured by the FDIC, which means that deposits up to $250,000 are protected if the bank were to suddenly collapse.
- Annual Percentage Yield (APY): The amount of interest an account earns in a year.
- ACH transfer: When you want to make small and frequent payments electronically (direct deposit, automated bill payments, etc.); typically always free but usually takes at least one business day to complete the transfer.
- Wire transfer: When you want to move funds from one bank account to another and have the money be available for use in the same business day; banks usually charge a fee.
- Mobile deposit: Instead of going to the bank to deposit a check, you can use your mobile banking app to scan a photo of the check and have the funds immediately deposited into your account. It can sometimes take a day or two for the funds to be accessible.
- ATM networks: ATMs can either be in-service or out-of-network, depending on which bank you have. When you make a transaction at an ATM that is outside your bank’s network, then a fee will most likely be applied by both the ATM operator and your bank.
FAQs
What is the difference between a high-yield savings account and a traditional savings account?
The main difference between high-yield savings accounts and traditional savings accounts is that high-yield savings accounts offer higher interest rates, which in turn allow your money to grow faster. Also, unlike traditional savings accounts, high-yield savings accounts are generally offered by online banks that don’t have physical branch locations.
Why are most high-yield savings accounts online?
High-yield savings accounts, by nature, offer higher returns largely because they operate solely online. They do this because of the savings they get by not having to pay for overhead costs that traditionally come with operating physical branches, such as the cost of real estate and the additional workers to work in those branches.
How do online savings accounts work?
While online savings accounts offer some of the highest APYs, it’s also more tedious to access your money than banking at a brick-and-mortar institution, since you’ll usually have to transfer to a checking account to use your money. This is arguably a good thing if you’re trying to grow your emergency savings, as you won’t have easy access to withdraw from the account.
While it may seem nerve-wracking to have limited access to your savings, one of the big reasons to put your emergency fund into a high-yield account is to watch it grow. The higher your account balance is, the more money you will earn in compound interest over time.
How often do savings rates change?
Interest rates on high-yield savings accounts are variable and can fluctuate at any time. In general, savings rates change every few months after a Fed committee meets to adjust the federal funds rate.
Are high-yield savings rates increasing?
Yes, high-yield savings rates are increasing. Rates have increased throughout 2023 as the Fed raises its benchmark rate in an effort to tamper with inflation. We’ve seen this reflected in high-yield savings accounts’ APYs, which are now around 5% to even 6% APY. And, as of now, interest rates are poised to increase even more throughout the rest of the year.
Can you lose money in a high-yield savings account?
There’s a near-zero risk of capital loss when you open a savings account at an FDIC-insured bank, as your account is insured for up to $250,000. Interest rates may decrease, but your cash will not. Theoretically, your money would lose value if the inflation rate is higher than your APY, but that’s no different than a traditional savings account. So, opening a high-yield savings account is safe and worth considering.
Can you withdraw money from a high-yield savings account?
You can withdraw funds from a high-yield savings account like you can a traditional savings account.
How often can I take money out of a high-yield savings account?
It used to be a rule that consumers could only withdraw or transfer cash out of a high-yield savings account up to six times per month without paying any fees. However, since the pandemic this rule has ended and it is now up to each individual bank’s discretion to choose how often savers can withdraw. Most banks have stuck to this six-times-per-month rule, while others let you make unlimited withdrawals at no cost.
Do you pay taxes on a high-yield savings account?
Interest accrued on a high-yield savings account is taxed as ordinary income. You must report the interest on your tax return for any account that earned more than $10 in one year.
What are the cons of a high-yield savings account?
The biggest con of high-yield savings accounts is that though they offer high interest rates, those rates can fluctuate at any time. Withdrawing money may also be a slightly slower process as only a few high-yield savings accounts offer ATM cards. And, if you care about in-person banking, most of the online high-yield savings account banks don’t have physical locations.
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every high-yield savings account review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of banking products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best savings accounts.
To determine which high-yield savings accounts offer the best return on your money, CNBC Select analyzed dozens of U.S. savings accounts offered by online and brick-and-mortar banks, including large credit unions. We narrowed down our ranking by only considering those savings accounts that offer an above-average APY, no monthly maintenance fees and low (or no) minimum balance requirements.
While the accounts we chose in this article consistently rank as having some of the highest APY rates, we also compared each savings account on a range of features, including ease of use and account accessibility, as well as factors such as insurance policies and customer reviews when available. We also considered users’ deposit options and each account’s compound frequency.
All of the accounts included on this list are FDIC-insured up to $250,000. Note that the rates and fee structures for high-yield savings accounts are not guaranteed forever; they are subject to change without notice and they often fluctuate in accordance with the Fed rate. Your earnings depend on any associated fees and the balance you have in your high-yield savings account. To open an account, most banks and institutions require a deposit of new money, meaning you can’t transfer the money you already had in an account at that bank.
Information about the Synchrony Bank High Yield Savings Account has been collected independently by CNBC and has not been reviewed or provided by the bank prior to publication.
* SoFi members with direct deposit can earn up to 4.50% 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 4.50% APY for savings. Members without direct deposit will earn up to 1.20% annual percentage yield (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 8/2/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
