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Tag: LendingClub Corp

  • Best emergency loans of October 2024

    Best emergency loans of October 2024

    Whether you’re facing a sudden home repair or unexpected medical expenses, if you’re in a pinch for cash, emergency loans may be able to help. Emergency loans are a type of personal loan so they generally have much more favorable interest rates and fees than payday loans.

    CNBC Select rounded up the best emergency loans with fast applications and quick access to funds. We also considered factors like interest rates, fees, loan amounts and term lengths offered, plus other features including how your funds are distributed, any discounts and customer service options. (Read more about our methodology below.)

    Compare personal loans

    Best for low credit scores

    Upstart Personal Loans

    • Annual Percentage Rate (APR)

    • Loan purpose

      Debt consolidation, credit card refinancing, wedding, moving or medical

    • Loan amounts

    • Terms

    • Credit needed

      Credit score of 300 on at least one credit report (but will accept applicants whose credit history is so insufficient they don’t have a credit score)

    • Origination fee

      0% to 12% of the target amount

    • Early payoff penalty

    • Late fee

      The greater of 5% of last amount due or $15, whichever is greater

    Pros

    • Open to borrowers with fair credit (minimum 300 score)
    • Will accept applicants who have insufficient credit history and don’t have a credit score
    • No early payoff fees
    • 99% of personal loan funds are sent the next business day after completing required paperwork before 5 p.m. Monday through Friday

    Cons

    • High late fees
    • Origination fee of 0% to 10% of the target amount (automatically withheld from the loan before it’s delivered to you)
    • $10 fee to request paper copies of loan agreement (no fee for eSigned virtual copies)
    • Must have a Social Security number

    Who’s this for? Upstart is ideal if you have a poor credit score as it only requires a minimum score of 300. It also considers applicants who don’t have enough history to generate a credit score.

    Standout benefits: Upstart looks at more factors than just your credit when reviewing applications, including your education and employment history. You can check your loan terms without a hard inquiry before you apply. Once approved, you can get the funds as quickly as the next business day.

    [ Jump to more details ]

    Best for longest loan terms

    LightStream Personal Loans

    • Annual Percentage Rate (APR)

      6.99% – 25.49%* APR with AutoPay

    • Loan purpose

      Debt consolidation, home improvement, auto financing, medical expenses, and others

    • Loan amounts

    • Terms

      24 to 240 months* dependent on loan purpose

    • Credit needed

    • Origination fee

    • Early payoff penalty

    • Late fee

    Terms apply. *AutoPay discount is only available prior to loan funding. Rates without AutoPay are 0.50% points higher. Excellent credit required for lowest rate. Rates vary by loan purpose.

    Pros

    • Same-day funding available through ACH or wire transfer (conditions apply)
    • Loan amounts up to $100,000
    • No origination fees, no early payoff fees, no late fees
    • LightStream plants a tree for every loan

    Cons

    • Requires several years of credit history
    • No option to pay your creditors directly
    • Not available for student loans or business loans
    • No option for pre-approval on website (but pre-qualification is available on some third-party lending platforms)

    Who’s this for? LightStream is worth looking into if you want more time to repay your loan. It offers low annual percentage rates (APRs) and loan terms for as long as 20 years, the longest on this list.

    Standout benefits: LightStream offers its users a $100 guarantee if they are not completely satisfied with their loan process.

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    Best for co-borrowers

    LendingClub Personal Loans

    • Annual Percentage Rate (APR)

    • Loan purpose

      Debt consolidation, major expenses, emergency costs, moving, weddings

    • Loan amounts

    • Terms

    • Credit needed

    • Origination fee

      3.00% to 8.00% of the loan amount

    • Early payoff penalty

    • Late fee

      15-day grace period to make payments with no penalty

    Pros

    • Co-borrowers are permitted
    • No prepayment penalty
    • Loan amounts as low as $1,000
    • Quick application you can submit in just a few minutes
    • Ability to check your rate without hurting your credit score

    Cons

    • Doesn’t accept co-signers
    • Origination fee of 2% to 6% of the loan amount
    • Only two loan terms to choose from (3 or 5 years)

    Who’s this for? LendingClub is a great option if you want the option to add a co-borrower to your loan to potentially boost your approval odds. The co-borrower’s income and credit history will also be considered, and they will also be responsible for paying the debt.

    Standout benefits: LendingClub offers a 15-day grace period to make payments to avoid any penalty fees.

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    Best for no credit

    OneMain Financial Personal Loans

    • Annual Percentage Rate (APR)

    • Loan purpose

      Debt consolidation, major expenses, emergency costs

    • Loan amounts

    • Terms

    • Credit needed

    • Origination fee

      Origination fee starting at $25 to $500 or percentage ranging from 1% to 10% (depends on your state)

    • Early payoff penalty

    • Late fee

      Up to $30 per late payment or up to 15% (depends on your state)

    Terms apply.* Click here to see if you prequalify for a personal loan offer.

    Pros

    • Approves applicants with bad or fair credit
    • No early payoff fees
    • Reasonable loan minimums ($1,500) for smaller needs
    • Can pre-qualify with a soft credit check (no hard inquiry right away)
    • ACH funding within 1-2 business days (sometimes same day with proper paperwork)
    • Option to apply for secured loan (with collateral) for potentially lower rates
    • Borrowers can choose the date the bill is due each month
    • Applicants may apply with a co-applicant or, if married, may apply for a loan separately from spouse

    Cons

    • High origination fee
    • High interest rates
    • No autopay APR discount
    • No co-signers

    *You must complete a loan application and continue to meet any criteria used to select you for a loan offer. Not all applicants are approved. Loan approval and actual loan terms depend on applicant’s state of residence and ability to meet OneMain Financial credit standards such as a responsible credit history, sufficient income after monthly expenses, and if applicable, availability of eligible collateral.

    Not all approved applicants qualify for larger loan amounts, lower APRs, or the most favorable loan terms. For example, larger loan amounts typically require a first lien on a motor vehicle that is no more than ten years old, meets our value requirements, and is titled in applicant’s name with valid insurance. APRs are generally higher on loans not secured by a vehicle. 

    Example Loan: A $6,000 loan with a 24.99% APR that is repayable in 60 monthly installments would have monthly payments of $176.07.

    OneMain charges origination fees allowed by law. Depending on the state where the loan is opened, the origination fee may be either a flat amount or a percentage of the loan amount. Flat fees vary by state, ranging from $25 to $500. Percentage-based fees vary by state, ranging from 1% to 10% of the loan amount subject to certain state limits on the fee amount. 

    For information about these fees and minimum and maximum loan sizes available in certain states, visit omf.com/loanfees.

    Current OneMain Customers: Loan offers presented to a consumer assume the individual has no active loan with OneMain or one of its affiliates. If a customer applies for a new loan offer, a OneMain representative will discuss available options.

    Active-duty military, their spouse or dependents covered by the Military Lending Act (MLA) may not pledge any vehicle as collateral. If you are covered by the MLA, you are not eligible for secured loans.Loan proceeds cannot be used for postsecondary educational expenses as defined by the CFPB’s Regulation Z such as college, university or vocational expense; for any business or commercial purpose; to purchase cryptocurrency assets, securities, derivatives or other speculative investments; or for gambling or illegal purposes.

    Time to Fund Loans: Funding within one hour after loan closing through SpeedFunds® must be disbursed to a bank-issued debit card. Disbursement by check or ACH may take up to 1-2 business days after closing.

    Who’s this for? OneMain Financial could be a good option if you have little or no credit history as it has no minimum credit score requirements.

    Standout benefits: Once you accept your loan you could receive access to your funds in as little as one hour. OneMain Financial also doesn’t charge prepayment penalties if you pay off your loan balance earlier than expected.

    [ Jump to more details ]

    Best for fair credit

    Avant Personal Loans

    • Annual Percentage Rate (APR)

    • Loan purpose

      Debt consolidation, major expenses, emergency costs, home improvements

    • Loan amounts

    • Terms

    • Credit needed

    • Origination fee

      Administration fee up to 9.99%

    • Early payoff penalty

    • Late fee

      Up to $25 per late payment after 10-day grace period

    Click here to see if you prequalify for a personal loan offer. Terms apply.

    Pros

    • Lends to applicants with scores lower credit scores
    • No early payoff fees
    • Can pre-qualify with a soft credit check (no hard inquiry)
    • Quick funding (often by the next day)
    • Late payment grace period of 10 days

    Cons

    • Origination fee
    • Potentially high interest (caps at 35.99% APR)
    • No autopay APR discount
    • No direct payments to creditors (for debt consolidation)
    • No co-signers

    Who’s this for? Avant appeals to those with fair credit scores as most of its customers have a score between 600 and 700.

    Standout benefits: Avant offers a 10-day grace period to make payments without a penalty. It also has a user-friendly mobile app where you can receive notifications about your loan, change key dates and make payments.

    [ Jump to more details ]

    Best for discounts

    Upgrade Personal Loans

    • Annual Percentage Rate (APR)

    • Loan purpose

      Debt consolidation/refinancing, home improvement, major purchase

    • Loan amounts

    • Terms

    • Credit needed

    • Origination fee

      1.85% to 9.99%, deducted from loan proceeds

    • Early payoff penalty

    • Late fee

      Up to $10 (with 15-day grace period)

    Pros

    • No early payoff fees
    • Loans up to $50,000
    • Fixed interest rates (no surprises)
    • Can pay creditors directly (may take up to two weeks)
    • Several available discounts including autopay
    • Fast funding in as little as four days

    Cons

    • Origination fee of up to 9.99% (deducted from your loan)
    • Not available in Washington D.C.

    Why Upgrade is the best for financial literacy:

    • Free credit score simulator to help you visualize how different scenarios and actions may impact your credit
    • Charts that track your trends and credit health over time, helping you understand how certain financial choices affect your credit score
    • Ability to sign up for free credit monitoring and weekly VantageScore updates

    Who’s this for? Upgrade can help you save money thanks to its many discounts, such as for enrolling in autopay, using the loan to pay off existing debt and for having other eligible Upgrade products.

    Standout benefits: Upgrade loans come with a 15-day grace period. Upgrade also offers secured loans that require collateral in exchange for a potentially better rate.

    [ Jump to more details ]

    Best for large emergency loans

    SoFi Personal Loans

    • Annual Percentage Rate (APR)

      8.99% – 29.49% when you sign up for autopay

    • Loan purpose

      Debt consolidation/refinancing, home improvement, relocation assistance or medical expenses

    • Loan amounts

    • Terms

    • Credit needed

    • Origination fee

    • Early payoff penalty

    • Late fee

    Pros

    • No origination fees required, no early payoff fees, no late fees
    • Unemployment protection if you lose your job
    • DACA recipients can apply with a creditworthy co-borrower who is a U.S. citizen/permanent resident by calling 877-936-2269
    • Can have more than one SoFi loan at a time (state-permitting) 
    • May accept offer of employment (to start within the next 90 days) as proof of income
    • Co-applicants may apply

    Cons

    • Applicants who are U.S. visa holders must have more than two years remaining on visa to be eligible
    • No co-signers allowed (co-applicants only)

    Fixed rates from 8.99% APR to 29.49% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.

    Who’s this for? SoFi could be a good fit if you’re looking to take out a large emergency loan as it has high upper limits of $100,000.

    Standout benefits: If you’re planning to use your loan to pay down credit card debt, SoFi offers Direct Pay, which will pay your credit card company directly using your loan funds. It also offers a 0.25% discount on your APR for signing up for autopay and doesn’t charge any late fees, origination fees, or prepayment penalties.

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    Best for peer-to-peer loans

    Prosper Personal Loans

    • Annual Percentage Rate (APR)

    • Loan purpose

      Debt consolidation/refinancing, home improvement, auto/motor, medical or dental, big purchase and more

    • Loan amounts

    • Terms

      24, 36, 48, and 60 months

    • Credit needed

    • Origination fee

      1%-9.99%, deducted from loan proceeds

    • Early payoff penalty

    • Late fee

      5% of monthly payment amount or $15, whichever is greater (with 15-day grace period)

    Pros

    • Co-borrowers are permitted
    • Repeat borrowers may qualify for APR discounts
    • Option to change your payment date according to when works best for you
    • Wide range of loan amounts
    • No prepayment penalty

    Cons

    • High late fees
    • Origination fee of 1% to 9.99%, deducted from loan proceeds

    Who’s this for? Prosper is worth considering if you are looking for an alternative lender than a big bank or credit union.

    Standout benefits: Prosper is a peer-to-peer lender and allows you to use a co-applicant to boost your approval odds or lower your rate. You can check your rates before applying without affecting your credit score.

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    Best for same-day funding

    Rocket Loans

    • Annual Percentage Rate (APR)

      8.99% to 29.99% *rate without autopay discount

    • Loan purpose

    • Loan amounts

    • Terms

    • Credit needed

    • Origination fee

    • Early payoff penalty

    • Late fee

    Pros

    • No early payoff fee
    • Offers autopay discount
    • Can receive your funds as soon as the same business day

    Cons

    • Charges a late fee
    • Origination fee is quite high

    Who’s this for? Rocket Loans offers you the ability to receive your funds within the same day of your approval depending on eligibility.

    Standout benefits: Rocket Loans offers a discount for making automatic payments and doesn’t charge a prepayment penalty.

    [ Jump to more details ]

    Best for secured options

    Best Egg Personal Loan

    • Annual Percentage Rate (APR)

    • Loan purpose

      Debt consolidation, home improvement, moving expenses, major purchases, adoption and more

    • Loan amounts

    • Terms

    • Credit needed

    • Origination fee

      0.99%–9.99% of the loan amount

    • Early payoff penalty

    • Late fee

      $15 fee if the borrower’s bank account has insufficient funds

    Pros

    • Possible to secure financing in as little as 24 hours
    • An average APR discount of 20% compared to their unsecured loan*
    • Factors besides credit scores are considered when applying
    • Access to Best Egg Financial Health

    Cons

    • 0.99% to 9.99% origination fee
    • Home may be difficult to sell or refinance before the secured loan is repaid

    *The Best Egg Secured Loan is a personal loan secured using a lien against fixtures permanently attached to your home such as built-in cabinets, light fixtures, and bathroom vanities. Rest assured, your home itself will not be used as collateral.

    Who’s this for? Best Egg offers both unsecured and secured loans which might appeal if you are still on the fence about some of your options.

    Standout benefits: Best Egg offers a $150 gift card to you and a friend should you refer them and they complete the required steps.

    [ Jump to more details ]

    More on our top emergency loans

    Upstart

    Upstart has originated over $39 billion in loans for its customers. It offers three and five-year loans between $1,000 and $50,000. It charges no prepayment penalty fees but its loans can still potentially come with high costs. For instance, you may have to pay up to 12% in origination fees. Funds can be disbursed as quickly as the next business day if you accept the loan before 5 p.m. EST Monday through Friday.

    • Loan amounts: $1,000 to $50,000
    • Loan terms: 36 and 60 months
    • Credit needed: Credit score of 300 on at least one credit report, but may accept applicants with insufficient credit history
    • Quickest funding time: 1 business day

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    LightStream

    LightStream, part of Truist Bank, offers loans with competitive rates and flexible terms for people with good credit or higher. It doesn’t charge any origination, administration or early payoff fees and offers an autopay discount of .50% off your interest rate. If you get approved for an unsecured loan with a lower rate from a competing lender, LightStream promises to beat it by 0.10%.

    • Loan amounts: $5,000 to $100,000
    • Loan terms: 24 to 144 months
    • Credit needed: Good
    • Quickest funding time: Same day

    [ Return to summary ]

    LendingClub

    OneMain Financial

    OneMain Financial aims to provide nonprime customers access to credit. It has over 1,300 physical branches across 44 states. While there are no early payoff penalties, the lender charges origination fees of either a flat fee ranging from $25 to $500 or a percentage of the loan you’ve taken out, ranging from 1% to 10%, depending on your state. And while most personal loans are unsecured, OneMain Financial offers borrowers the option of using collateral to potentially receive better loan terms.

    • Loan amounts: $1,500 to $20,000
    • Loan terms: 24 to 60 months
    • Credit needed: Poor/fair
    • Quickest funding time: 1 hour after closing

    [ Return to summary ]

    Avant

    Avant Personal Loans can be a good option for those who need money in a pinch. It works with applicants with credit scores as low as 580 and you can prequalify with only a soft inquiry. You can receive your funds as early as the next day, can borrow as little as $2,000 and as much as $35,000, and loan terms range from 24 to 60 months. While there are no early payoff penalties, there is an origination fee of up to 4.75% and a late fee of up to $25 after the 10-day grace period.

    • Loan amounts: $2,000 to $35,000
    • Loan terms: 24 to 60 months
    • Credit needed: Poor/fair
    • Quickest funding time: 1 business day

    [ Return to summary ]

    Upgrade

    Upgrade was founded in 2016 and has since provided its users with over $31 billion in credit. You can borrow up to $50,000 with terms ranging from just two years to 84 months. The online application process can be completed in minutes and you can receive your funds as quickly as the same day.

    If you have an Upgrade Rewards Checking Plus account and contribute a $1,000 monthly direct deposit, you can qualify for loan interest rates of up to 20% lower.

    • Loan amounts: $1,000 to $50,000
    • Loan terms: 24 to 84 months
    • Credit needed: 600+
    • Quickest funding time: 1 business day

    [ Return to summary ]

    SoFi

    Founded in 2011, SoFi has helped its customers pay off over $34 billion in debt. You can receive up to $100,000 in personal loan funding, the largest amount available on this list. SoFi personal loans do not require origination fees and there’s a 0.25% interest rate reduction for signing up for autopay. 

    In addition to personal loans, SoFi offers a range of other financial products, such as checking and savings accounts, mortgages, investing accounts, credit cards, credit monitoring and more. SoFi customers also enjoy special perks like free personalized advice from a financial planner.

    • Loan amounts: $5,000 to $100,000
    • Loan terms: 24 to 84 months
    • Credit needed: Good/excellent
    • Quickest funding time: Same day

    [ Return to summary ]

    Prosper

    Prosper was started in 2005 with the goal of helping their customers achieve financial well-being through their reasonable rates and quick approvals. It offers a peer-to-peer personal loan marketplace that provides an alternative to large financial institutions. Origination fees are between 2.41% to 5% and get deducted from the loan proceeds. Similar to many lenders, checking your rate with Prosper will not impact your credit score. If approved, you can have your money deposited into your bank account in as little as one business day.

    • Loan amounts: $2,000 to $50,000
    • Loan terms: 24, 36, 48 or 60 months
    • Credit needed: 640+
    • Quickest funding time: 1 business day

    [ Return to summary ]

    Rocket Loans

    Rocket Loans is one of the sister companies of Rocket Mortgage, one of the nation’s largest mortgage lenders. Rocket Loans can provide same-day funding and doesn’t charge a prepayment penalty. It only offers two repayment terms: three or five years.

    • Loan amounts: $2,000 to $45,000
    • Loan terms: 36 or 60 months
    • Credit needed: Not disclosed
    • Quickest funding time: Same day

    [ Return to summary ]

    Best Egg

    Best Egg aims to provide users with the financial products they need to succeed. It offers secured and unsecured personal loans of up to $50,000, though the maximum may be slightly lower in some states. Borrowers are charged an origination fee of 0.99% to 8.99% which is deducted from the loan proceeds. According to the site, about half of its customers get their funds the next day. To be considered for a term of up to 84 months, you must apply for the secured loan option. Otherwise, the maximum loan term is 60 months.

    • Loan amounts: Up to $50,000
    • Loan terms: 36 to 84 months
    • Credit needed: Not disclosed
    • Quickest funding time: 1 business day

    [ Return to summary ]

    What is an emergency loan?

    An emergency loan often refers to a shorter-term, unsecured loan, that can provide you with funds quickly to cover an unexpected financial need. The timeline is a key part of emergency loans as they are typically paid off within one to three years — more traditional loan lenders often have repayment terms of around one to seven years, with some even longer.

    Paying off your loan quickly means you’ll pay less in interest compared to the same loan with a longer repayment term. Similarly to other loans, having a strong credit score will often benefit you through more favorable terms.

    How to choose an emergency loan

    There are a few factors to consider when choosing an emergency loan, including:

    FAQs

    Do you have to have a credit score for an emergency loan?

    While having a strong credit score will often mean you get more favorable loan rates, some lenders, like OneMain Financial, do not have a minimum credit score requirement.

    What is the easiest loan to get approved for?

    One of the easiest loan to get approved for is often a payday loan since it’s a short-term loan often used to bring used to bridge a financial gap. However, payday loans are considered a form of predatory lending by the National Association of Consumer Advocates and can charge exorbitant interest rates, some as high as 400%.

    How quickly can you get an emergency loan?

    The exact timeline will vary depending on several factors, but many emergency loans you can get approved for and receive funds on the same day or one business day later.

    What qualifies as an emergency loan?

    While the exact definition may vary between institutions, emergency loans are frequently shorter-term, unsecured loans meant to cover urgent needs ranging from car repairs to medical bills and more.

    Can you pay back personal loans early?

    While some lenders may charge for this privilege, every lender on this list allows its loans to be paid back early with no prepayment penalties.

    Why trust CNBC Select?

    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 personal loan review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of personal loan 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 emergency loans.

    Subscribe to the CNBC Select Newsletter!

    Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox. Sign up here.

    Our methodology

    To determine which emergency loans may be the best fit for applicants, CNBC Select analyzed dozens of U.S. personal loans offered by both online and brick-and-mortar banks, including large credit unions. Some of those options may have origination fees. We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

    When narrowing down and ranking the best personal loans, we focused on the following features:

    • Fixed-rate APR: With a fixed-rate APR, you lock in an interest rate for the duration of the loan’s term, which means your monthly payment won’t vary.
    • Flexible loan lengths: Each lender provides multiple loan lengths to select from.
    • No early payoff penalties: The lenders on our list do not charge you for paying off loans early.
    • Streamlined application process: We considered whether lenders offered same-day approval decisions and a fast online application process.
    • Customer support: Every provider on our list has customer service available via telephone, email or online messaging.
    • Unsecured loans: Every provider on this list offers unsecured loans, while some may also offer secured loans.
    • Fund disbursement: The loans on our list deliver funds promptly and securely, some within the same day of approval.
    • Creditor payment limits and loan sizes: The above lenders provide loans in an array of sizes, from $1,000 to $100,000. Each lender advertises its respective payment limits and loan sizes, and completing a preapproval process can give you an idea of what your interest rate and monthly payment would be for such an amount.

    We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.  

    The rates and fee structures advertised for personal loans are subject to fluctuate in accordance with the Fed rate. However, once you accept your loan agreement, a fixed-rate APR will guarantee your interest rate and monthly payment will remain consistent throughout the entire term of the loan. Your APR, monthly payment and loan amount depend on your credit history and creditworthiness. To take out a loan, many lenders will conduct a hard credit inquiry and request a full application, which could require proof of income, identity verification, proof of address and more.

    Catch up on CNBC Select’s in-depth coverage of credit cards, banking and money, and follow us on TikTok, Facebook, Instagram and Twitter to stay up to date.

    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.

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  • This bank just boosted its 1-year CD yield to more than 5%, even as traders await Fed rate cuts

    This bank just boosted its 1-year CD yield to more than 5%, even as traders await Fed rate cuts

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  • How thousands of Americans got caught in fintech’s false promise and lost access to bank accounts

    How thousands of Americans got caught in fintech’s false promise and lost access to bank accounts

    Natasha Craft, a 25-year-old FedEx driver from Mishawaka, Indiana. She has been locked out of her Yotta banking account since May 11.

    Courtesy: Natasha Craft

    When Natasha Craft first got a Yotta banking account in 2021, she loved using it so much she told her friends to sign up.

    The app made saving money fun and easy, and Craft, a now 25-year-old FedEx driver from Mishawaka, Indiana, was busy getting her financial life in order and planning a wedding. Craft had her wages deposited directly into a Yotta account and used the startup’s debit card to pay for all her expenses.

    The app — which gamifies personal finance with weekly sweepstakes and other flashy features — even occasionally covered some of her transactions.

    “There were times I would go buy something and get that purchase for free,” Craft told CNBC.

    Today, her entire life savings — $7,006 — is locked up in a complicated dispute playing out in bankruptcy court, online forums like Reddit and regulatory channels. And Yotta, an array of other startups and their banks have been caught in a moment of reckoning for the fintech industry.

    For customers, fintech promised the best of both worlds: The innovation, ease of use and fun of the newest apps combined with the safety of government-backed accounts held at real banks.

    The startups prominently displayed protections afforded by the Federal Deposit Insurance Corp., lending credibility to their novel offerings. After all, since its 1934 inception, no depositor “has ever lost a penny of FDIC-insured deposits,” according to the agency’s website.

    But the widening fallout over the collapse of a fintech middleman called Synapse has revealed that promise of safety as a mirage.

    Starting May 11, more than 100,000 Americans with $265 million in deposits were locked out of their accounts. Roughly 85,000 of those customers were at Yotta alone, according to the startup’s co-founder, Adam Moelis.

    CNBC reached out to fintech customers whose lives have been upended by the Synapse debacle.

    They come from all walks and stages of life, from Craft, the Indiana FedEx driver; to the owner of a chain of preschools in Oakland, California; a talent analyst for Disney living in New York City; and a computer engineer in Santa Barbara, California. A high school teacher in Maryland. A parent in Bristol, Connecticut, who opened an account for his daughter. A social worker in Seattle saving up for dental work after Adderall abuse ruined her teeth.

    ‘A reckoning underway’

    Since Yotta, like most popular fintech apps, wasn’t itself a bank, it relied on partner institutions including Tennessee-based Evolve Bank & Trust to offer checking accounts and debit cards. In between Yotta and Evolve was a crucial middleman, Synapse, keeping track of balances and monitoring fraud.

    Founded in 2014 by a first-time entrepreneur named Sankaet Pathak, Synapse was a player in the “banking-as-a-service” segment alongside companies like Unit and Synctera. Synapse helped customer-facing startups like Yotta quickly access the rails of the regulated banking industry.

    It had contracts with 100 fintech companies and 10 million end users, according to an April court filing.

    Until recently, the BaaS model was a growth engine that seemed to benefit everybody. Instead of spending years and millions of dollars trying to acquire or become banks, startups got quick access to essential services they needed to offer. The small banks that catered to them got a source of deposits in a time dominated by giants like JPMorgan Chase.

    But in May, Synapse, in the throes of bankruptcy, turned off a critical system that Yotta’s bank used to process transactions. In doing so, it threw thousands of Americans into financial limbo, and a growing segment of the fintech industry into turmoil.

    “There is a reckoning underway that involves questions about the banking-as-a-service model,” said Michele Alt, a former lawyer for the Office of the Comptroller of the Currency and a current partner at consulting firm Klaros Group. She believes the Synapse failure will prove to be an “aberration,” she added.

    The most popular finance apps in the country, including Block’s Cash App, PayPal and Chime, partner with banks instead of owning them. They account for 60% of all new fintech account openings, according to data provider Curinos. Block and PayPal are publicly traded; Chime is expected to launch an IPO next year.

    Block, PayPal and Chime didn’t provide comment for this article.

    ‘Deal directly with a bank’

    While industry experts say those firms have far more robust ledgering and daily reconciliation abilities than Synapse, they may still be riskier than direct bank relationships, especially for those relying on them as a primary account.

    “If it’s your spending money, you need to be dealing directly with a bank,” Scott Sanborn, CEO of LendingClub, told CNBC. “Otherwise, how do you, as a consumer, know if the conditions are met to get FDIC coverage?”

    Sanborn knows both sides of the fintech divide: LendingClub started as a fintech lender that partnered with banks until it bought Boston-based Radius in early 2020 for $185 million, eventually becoming a fully regulated bank.

    Scott Sanborn, LendingClub CEO

    Getty Images

    Sanborn said acquiring Radius Bank opened his eyes to the risks of the “banking-as-a-service” space. Regulators focus not on Synapse and other middlemen, but on the banks they partner with, expecting them to monitor risks and prevent fraud and money laundering, he said.

    But many of the tiny banks running BaaS businesses like Radius simply don’t have the personnel or resources to do the job properly, Sanborn said. He shuttered most of the lender’s fintech business as soon as he could, he says.

    “We are one of those people who said, ‘Something bad is going to happen,’” Sanborn said.

    A spokeswoman for the Financial Technology Association, a Washington, D.C.-based trade group representing large players including Block, PayPal and Chime, said in a statement that it is “inaccurate to claim that banks are the only trusted actors in financial services.”

    “Consumers and small businesses trust fintech companies to better meet their needs and provide more accessible, affordable, and secure services than incumbent providers,” the spokeswoman said.

    “Established fintech companies are well-regulated and work with partner banks to build strong compliance programs that protect consumer funds,” she said. Furthermore, regulators ought to take a “risk-based approach” to supervising fintech-bank partnerships, she added.

    The implications of the Synapse disaster may be far-reaching. Regulators have already been moving to punish the banks that provide services to fintechs, and that will undoubtedly continue. Evolve itself was reprimanded by the Federal Reserve last month for failing to properly manage its fintech partnerships.

    In a post-Synapse update, the FDIC made it clear that the failure of nonbanks won’t trigger FDIC insurance, and that even when fintechs partner with banks, customers may not have their deposits covered.

    The FDIC’s exact language about whether fintech customers are eligible for coverage: “The short answer is: it depends.”

    FDIC safety net

    While their circumstances all differed vastly, each of the customers CNBC spoke to for this story had one thing in common: They thought the FDIC backing of Evolve meant that their funds were safe.

    “For us, it just felt like they were a bank,” the Oakland preschool owner said of her fintech provider, a tuition processor called Curacubby. “You’d tell them what to bill, they bill it. They’d communicate with parents, and we get the money.”

    The 62-year-old business owner, who asked CNBC to withhold her name because she didn’t want to alarm employees and parents of her schools, said she’s taken out loans and tapped credit lines after $236,287 in tuition was frozen in May.

    Now, the prospect of selling her business and retiring in a few years seems much further out.

    “I’m assuming I probably won’t see that money,” she said, “And if I do, how long is it going to take?”

    When Rick Davies, a 46-year-old lead engineer for a men’s clothing company that owns online brands including Taylor Stitch, signed up for an account with crypto app Juno, he says he “distinctly remembers” being comforted by seeing the FDIC logo of Evolve.

    “It was front and center on their website,” Davies said. “They made it clear that it was Evolve doing the banking, which I knew as a fintech provider. The whole package seemed legit to me.”

    He’s now had roughly $10,000 frozen for weeks, and says he’s become enraged that the FDIC hasn’t helped customers yet.

    For Davies, the situation is even more baffling after regulators swiftly took action to seize Silicon Valley Bank last year, protecting uninsured depositors including tech investors and wealthy families in the process. His employer banked with SVB, which collapsed after clients withdrew deposits en masse, so he saw how fast action by regulators can head off distress.

    “The dichotomy between the FDIC stepping in extremely quickly for San Francisco-based tech companies and their impotence in the face of this similar, more consumer-oriented situation is infuriating,” Davies said.

    The key difference with SVB is that none of the banks linked with Synapse have failed, and because of that, the regulator hasn’t moved to help impacted users.

    Consumers can be forgiven for not understanding the nuance of FDIC protection, said Alt, the former OCC lawyer.

    “What consumers understood was, ‘This is as safe as money in the bank,’” Alt said. “But the FDIC insurance isn’t a pot of money to generally make people whole, it is there to make depositors of a failed bank whole.”

    Waiting for their money

    For the customers involved in the Synapse mess, the worst-case scenario is playing out.

    While some customers have had funds released in recent weeks, most are still waiting. Those later in line may never see a full payout: There is a shortfall of up to $96 million in funds that are owed to customers, according to the court-appointed bankruptcy trustee.

    That’s because of Synapse’s shoddy ledgers and its system of pooling users’ money across a network of banks in ways that make it difficult to reconstruct who is owed what, according to court filings.

    The situation is so tangled that Jelena McWilliams, a former FDIC chairman now acting as trustee over the Synapse bankruptcy, has said that finding all the customer money may be impossible.

    Despite weeks of work, there appears to be little progress toward fixing the hardest part of the Synapse mess: Users whose funds were pooled in “for benefit of,” or FBO, accounts. The technique has been used by brokerages for decades to give wealth management customers FDIC coverage on their cash, but its use in fintech is more novel.

    “If it’s in an FBO account, you don’t even know who the end customer is, you just have this giant account,” said LendingClub’s Sanborn. “You’re trusting the fintech to do the work.”

    While McWilliams has floated a partial payment to end users weeks ago, an idea that has support from Yotta co-founder Moelis and others, that hasn’t happened yet. Getting consensus from the banks has proven difficult, and the bankruptcy judge has openly mused about which regulator or body of government can force them to act.

    The case is “uncharted territory,” Judge Martin Barash said, and because depositors’ funds aren’t the property of the Synapse estate, Barash said it wasn’t clear what his court could do.

    Evolve has said in filings that it has “great pause” about making any payments until a full reconciliation happens. It has further said that Synapse ledgers show that nearly all of the deposits held for Yotta were missing, while Synapse has said that Evolve holds the funds.

    “I don’t know who’s right or who’s wrong,” Moelis told CNBC. “We know how much money came into the system, and we are certain that that’s the correct number. The money doesn’t just disappear; it has to be somewhere.”

    In the meantime, the former Synapse CEO and Evolve have had an eventful few weeks.

    Pathak, who dialed into early bankruptcy hearings while in Santorini, Greece, has since been attempting to raise funds for a new robotics startup, using marketing materials with misleading claims about its ties with automaker General Motors.

    And only days after being censured by the Federal Reserve about its management of technology partners, Evolve was attacked by Russian hackers who posted user data from an array of fintech firms, including Social Security numbers, to a dark web forum for criminals.

    For customers, it’s mostly been a waiting game.

    Craft, the Indiana FexEx driver, said she had to borrow money from her mother and grandmother for expenses. She worries about how she’ll pay for catering at her upcoming wedding.

    “We were led to believe that our money was FDIC-insured at Yotta, as it was plastered all over the website,” Craft said. “Finding out that what FDIC really means, that was the biggest punch to the gut.”

    She now has an account at Chase, the largest and most profitable American bank in history.

    — With contributions from CNBC’s Gabriel Cortes.

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  • CNBC's best high-yield savings accounts of 2024

    CNBC's best high-yield savings accounts of 2024

    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

    Best overall

    LendingClub High-Yield Savings

    • Annual Percentage Yield (APY)

    • Minimum balance

      No minimum balance requirement after $100.00 to open the account

    • Monthly fee

    • Maximum transactions

    • Excessive transactions fee

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

    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.

    Runner-up

    UFB Secure Savings

    • Annual Percentage Yield (APY)

    • Minimum balance

    • Monthly fee

    • Maximum transactions

      No max number of transactions; Max transfer amounts may apply

    • Excessive transactions fee

    • Overdraft fees

      Overdraft fees may be charged, according to the terms, but a specific amount is not specified; overdraft protection service available

    • Offer checking account?

    • Offer ATM card?

    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.

    Best for earning a high APY

    Western Alliance Bank Savings Account

    • Annual Percentage Yield (APY)

    • Minimum balance

    • Monthly fee

    • Maximum transactions

      Up to 6 transactions each month

    • Excessive transactions fee

      The bank may charge fees for non-sufficient funds

    • Overdraft fee

    • Offer checking account?

    • Offer ATM card?

    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.

    Best for no fees

    Marcus by Goldman Sachs High Yield Online Savings

    • Annual Percentage Yield (APY)

    • Minimum balance

      None to open; $1 to earn interest

    • Monthly fee

    • Maximum transactions

      At this time, there is no limit to the number of withdrawals or transfers you can make from your online savings account.

    • Excessive transactions fee

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

    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.

    Best for checking/savings combo

    Ally Bank Online Savings Account

    • Annual Percentage Yield (APY)

    • Minimum balance

    • Monthly fee

      No monthly maintenance fee

    • Maximum transactions

      Unlimited withdrawals or transfers per statement cycle

    • Excessive transactions fee

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

      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. 

    Best for easy access to your cash

    Synchrony Bank High Yield Savings

    • Annual Percentage Yield (APY)

    • Minimum balance

    • Monthly fee

    • Maximum transactions

      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

    • Excessive transactions fee

      None, but may result in account closure

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

    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.

    Best for earning airline miles

    Bask Bank Interest Savings Account

    • Annual Percentage Yield (APY)

    • Minimum balance

    • Monthly fee

    • Maximum transactions

      Up to 6 free withdrawals or transfers per statement cycle

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

    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.

    Best for welcome bonus

    SoFi Checking and Savings

    • Monthly maintenance fee

    • Minimum deposit to open

    • Minimum balance

    • Annual Percentage Yield (APY)

      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)

    • Free ATM network

      55,000+ fee-free ATMs within the Allpoint® Network

    • ATM fee reimbursement

    • Overdraft fee

      No-Fee Overdraft Coverage is available; however, SoFi requires $1,000 of monthly direct deposit inflows to unlock it

    • Mobile check deposit

    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.

    Best if you want extra help saving

    Varo Savings Account

    • Annual Percentage Yield (APY)

      Begin earning 3.00% and qualify to earn 5.00% if you meet requirements

    • Minimum balance

      None; $0.01 to earn savings interest

    • Monthly fee

    • Maximum transactions

      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

    • Excessive transactions fee

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

      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.

    Find the best savings account for you: Help your money grow by finding the savings account that offers the best rates and features for you.

    What is a high-yield savings account?

    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.

    Common high-yield terms you should know

    • 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?

    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.

    Why trust CNBC Select?

    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.

    Our methodology

    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.

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  • Share of six-figure earners living paycheck to paycheck jumps, report finds. Advisor offers ways to break the cycle

    Share of six-figure earners living paycheck to paycheck jumps, report finds. Advisor offers ways to break the cycle

    Where you live determines your financial standing

    Depending on where you live, $100,000 may not stretch that far, according to Anuj Nayar, LendingClub’s financial health officer.

    A separate report by SmartAsset analyzed how far six figures will go in America’s 25 largest cities. In New York, for example, $100,000 amounts to just $35,791 after accounting for taxes and the high cost of living. 

    In contrast, a six-figure salary is worth much more in Memphis — roughly the equivalent of $86,444 due to a lower cost of living and no state income tax. (Here’s a breakdown of how much you need to earn to afford to live in the country’s most popular cities.)

    Colorful cafe bars at the iconic Beale Street music and entertainment district of downtown Memphis, Tennessee.

    benedek | iStock | Getty Images

    In general, 69% of city dwellers live paycheck to paycheck, 25% more than their suburban counterparts, LendingClub found.

    “While income is obviously a major factor, where you live appears to be almost equally important in factoring whether a consumer is living paycheck to paycheck,” Nayar said.

    Along with surging mortgage rates and home prices, rents are still higher in many cities across the country, according to the latest data from rental listings site Rent.com. 

    How to determine if you should rent or buy in the current real estate market

    As of last month, 29 of the 50 most populous U.S. cities notched year-over-year rent increases, Rent.com found.

    Compared to two years ago, rents have jumped more than 16% — that’s the equivalent of a $275 increase in monthly rent bills, according to Jon Leckie, researcher for Rent.

    “That kind of growth over such a short period of time is going to put a lot of pressure on pocket books.”

    How to break the paycheck-to-paycheck cycle

    High earners and urbanites are often susceptible to “lifestyle creep,” said CFP Carolyn McClanahan, founder of Life Planning Partners in Jacksonville, Florida. 

    As consumers earn more, they spend more, she said, particularly on eating out or deliveries through DoorDash, as well as additional subscription services. It’s easy to “fall into the trap of too much convenience spending.”

    To break the cycle, “the first thing to do is look at convenience spending and figure out ways to cut the spending that is not bringing them value,” said McClanahan, who also is a member of CNBC’s Advisor Council. 

    “Immediately divert that money to savings to create an emergency fund.” Once you have three to six month set aside, “start saving more for other goals.”

    Subscribe to CNBC on YouTube.

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  • Apple and fintechs like Robinhood chase yield-hungry depositors as Fed rate hikes continue

    Apple and fintechs like Robinhood chase yield-hungry depositors as Fed rate hikes continue

    Upgrade CEO Renaud Laplanche speaks at a conference in Brooklyn, New York, in 2018.

    Alex Flynn | Bloomberg via Getty Images

    The technology industry is known for innovation and spawning the next big thing. But at a time of economic uncertainty and rising interest rates, a growing piece of the tech sector is going after one of the most noninnovative products on the planet: yield.

    With U.S. Treasury yields climbing late last year to their highest in more than a decade, consumers and investors can finally generate returns just by parking their money in savings accounts.

    Banks are responding by offering higher-yielding offerings. American Express, for example, offers consumers a 3.75% annual percentage yield (APY), and First Citizens‘ CIT Bank has a 4.75% APY for customers with at least $5,000 in deposits. Ally Bank, which is online only, is promoting a 4.8% certificate of deposit.

    However, some of the highest rates available to savers aren’t coming from traditional financial firms or credit unions, but rather from companies in and around Silicon Valley.

    Apple is the most notable new entrant. Last month, the iPhone maker launched its Apple Card savings account with a generous 4.15% APY in partnership with Wall Street giant Goldman Sachs.

    Then there’s the whole fintech market, consisting of companies offering consumer financial services with a focus on digital products and a friendly mobile experience instead of physical branches with costly bank tellers and loan officers.

    Stock trading app Robinhood has a feature called Robinhood Gold, which offers 4.65% APY. Interest is earned on uninvested cash swept from the client’s brokerage account to partner banks. It’s part of a $5-a-month subscription that also includes lower borrowing costs for margin investing and research for stock investing.

    The company lifted its yield from 4.4% on Wednesday after the Federal Reserve approved its 10th rate increase in a little more than a year, raising its benchmark borrowing rate by 0.25 percentage point to a target range of 5%-5.25%.

    Fed Chair Jerome Powell speaks during a conference at the Federal Reserve Bank of Chicago on June 4, 2019.

    Scott Olson | Getty Images

    “At Robinhood, we’re always looking for ways to help our customers make their money work for them,” the company said in a press release announcing its hike.

    LendingClub, an online lender, is promoting an account with a 4.25% yield. The company told CNBC that deposit growth was up 13% for the first quarter of 2023 compared with the prior quarter, “as depositors looked to diversify their money out of traditional banks and earn increased savings.” Year over year, savings deposits have increased by 81%.

    And Upgrade, which is led by LendingClub founder Renaud Laplanche, offers 4.56% for customers with a minimum balance of $1,000.

    “It’s really a trade-off for consumers, between safety or the appearance of safety, and yield,” Laplanche told CNBC. Upgrade, which is based in San Francisco, and most other fintech players keep customer deposits with institutions backed by the Federal Deposit Insurance Corp., so consumer funds are safe up to the $250,000 threshold.

    SoFi is the rare example of a fintech with a banking charter, which it acquired last year. It offers a high-yield savings product with a 4.2% APY.

    The story isn’t just about rising interest rates.

    Across the emerging fintech spectrum, companies like Upgrade are, intentionally or not, taking advantage of a moment of upheaval in traditional finance. On Monday, First Republic became the third American bank to fail since March, following the collapses of Silicon Valley Bank and Signature Bank. All three saw depositors rush for the exits as concerns about a liquidity crunch led to a cycle of doom.

    Shares of PacWest and other regional banks have plummeted this week, even after First Republic’s orchestrated sale to JPMorgan Chase was meant to signal stability in the system.

    After the collapse of SVB, Laplanche said Upgrade’s banking partners came to the company and asked it to step up the inflow of funds, an apparent effort to stanch the withdrawals at smaller banks. Upgrade farms out the money it attracts to a network of 200 small- and medium-sized banks and credit unions that pay the company for the deposits.

    Used to be dead money

    For well over a decade, before the recent jump in rates, savings accounts were dead money. Borrowing rates were so low that banks couldn’t profitably offer yield on deposits. Also, stocks were on such a tear that investors were doing just fine in equities and index funds. A subset of those with a stomach for risk went big in crypto.

    As the price of bitcoin soared, a number of crypto exchanges and lenders began mimicking the banks’ savings model, offering very high yield (up to 20% annually) for investors to store their crypto. Those exchanges are now bankrupt following the crypto industry’s meltdown last year, and many thousands of clients lost their funds.

    There is some potential instability for fintechs, even those outside of the crypto space. Many of them, including Upgrade and Affirm, partner with Cross River Bank, which serves as the regulated bank for companies that don’t have charters, allowing them to offer lending and credit products.

    Last week, Cross River was hit with a consent order from the FDIC for what the agency called “unsafe or unsound banking practices.”

    Cross River said in a statement that the order was focused on fair lending issues that occurred in 2021, and that it “places no limitations on our extensive existing fintech partnerships or the credit products we presently offer in partnership with them.”

    While fintechs broadly are under far less regulatory pressure than crypto companies, the FDIC’s action suggests that regulators are beginning to pay closer attention to the kinds of products that high-yield accounts are designed to complement.

    Still, the emerging group of high-yield savings products are much more mainstream than what the crypto platforms were promoting. That’s largely because the deposits come with government-backed insurance protections, which have a long history of safety.

    They’re also not designed to be big profit centers. Rather, by offering high yields for consumers who have long housed their money in stagnant accounts, tech and fintech companies are opening the door to potentially new customers.

    Apple has a whole suite of financial products, including a credit card and payments app, that pair smoothly with the savings account, which is only available to the 6 million-plus Apple Card holders. Those customers reportedly put in nearly $1 billion in deposits in the first four days the service was on the market.

    Apple didn’t respond to a request for comment. CEO Tim Cook said on the company’s earnings call Thursday that, “we are very pleased with the initial response on it. It’s been incredible.”

    Apple savings account

    Apple

    Robinhood, meanwhile, wants more people to use its trading platform, and companies like LendingClub and SoFi are building relationships with potential borrowers.

    Laplanche said high-yield savings accounts, while compelling for the consumer, aren’t core to most fintech businesses but serve as an onboarding tool to more lucrative products, like consumer lending or conventional credit cards.

    “We started with credit,” Laplanche said. “We think that’s a better strategy.”

    SoFi launched its high-yield savings account in February of last year. In its annual SEC filing, the company said that offering checking and high-yield savings accounts provided “more daily interactions with our members.”

    Affirm, best known as a buy now, pay later firm, has offered a savings account since 2020 as part of a “full suite” of financial products. Its yield is currently 3.75%.

    “Consumers can use our app to manage payments, open a high-yield savings account, and access a personalized marketplace,” the company said in a 2022 SEC filing. A spokesperson for Affirm told CNBC that the saving account is “one of the many solutions in our suite of products that empower consumers with a smarter way to manage their finances.”

    Set against the backdrop of a regional banking crisis, savings products from anywhere but a national bank might seem unappealing. But chasing yield does come with at least a little bit of risk.

    “Citi or Chase, feels like it’s safe,” to the consumer, Laplanche said. “Apple and Goldman aren’t inherently risky, but it’s not the same as Chase.”

    — CNBC’s Darla Mercado contributed to this report.

    WATCH: Consumers are spending more for the same items than they were a year ago

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  • CNBC’s best high-yield savings accounts of 2022

    CNBC’s best high-yield savings accounts of 2022

    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.

    High-yield savings accounts reward you with higher interest rates than traditional savings accounts and allow your money to grow faster thanks to compound interest — which lets you earn interest on interest. The higher your annual percentage yield (APY), the faster your money grows and you get a better return than you would with a traditional savings account.

    While rates can fluctuate over time, high-yield savings accounts generally offer APYs over 10 times greater than the national average on savings accounts. So, if you’re building an emergency fund or saving up for a large expense, putting your money in a high-yield savings account can help you reach your goals quicker.

    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 savings accounts selected 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 2022

    Best overall

    LendingClub High-Yield Savings

    LendingClub Bank, N.A., Member FDIC

    • Annual Percentage Yield (APY)

    • Minimum balance

      No minimum balance requirement after $100.00 to open the account

    • Monthly fee

    • Maximum transactions

    • Excessive transactions fee

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

    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

    Who’s this for? 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.

    To add money to your savings account at LendingClub, you can deposit cash at select ATMs, deposit checks via the mobile app, do a direct deposit, make an electronic transfer from an external bank or make a wire transfer.

    Best for no fees

    Marcus by Goldman Sachs High Yield Online Savings

    Goldman Sachs Bank USA is a Member FDIC.

    • Annual Percentage Yield (APY)

    • Minimum balance

      None to open; $1 to earn interest

    • Monthly fee

    • Maximum transactions

      At this time, there is no limit to the number of withdrawals or transfers you can make from your online savings account.

    • Excessive transactions fee

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

    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

    Who’s this for? 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.

    To add money to your account, you can transfer funds, make direct deposit payments, deposit a check or make a wire transfer. 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.

    While there are no ATM cards or checking account options available through Marcus, the bank does offer a variety of no-fee personal loans as well.

    Best for checking/savings combo

    Ally Bank Online Savings Account

    Ally Bank is a Member FDIC.

    • Annual Percentage Yield (APY)

    • Minimum balance

    • Monthly fee

      No monthly maintenance fee

    • Maximum transactions

      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

    • Excessive transactions fee

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

      Yes, if have an Ally checking account

    Pros

    • Strong annual percentage yield on all balance tiers
    • No minimum balance
    • No monthly maintenance fee
    • Up to 6 free withdrawals or transfers per statement cycle*
    • Option to add a checking account
    • ATM access if you have a checking account

    Cons

    • $10 fee per transaction if you make more than 6 in a statement cycle
    • $25 overdraft fee

    Who’s this for? Ally is a good choice for anyone looking to do all their banking in one place. While the Ally Online Savings Account is a good high-yield account on its own, account holders can enjoy even more benefits if they also have an Ally checking account.

    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.

    You can’t deposit cash in your Ally savings account, which is standard for many online banks, but you can deposit checks remotely with eCheck Deposit on the mobile app. 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. 

    Best for easy access to your cash

    Synchrony Bank High Yield Savings

    Synchrony Bank is a Member FDIC.

    • Annual Percentage Yield (APY)

    • Minimum balance

    • Monthly fee

    • Maximum transactions

      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

    • Excessive transactions fee

      None, but may result in account closure

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

    Pros

    • Strong APY
    • No minimum balance
    • No monthly fees
    • Up to 6 free withdrawals or transfers per statement cycle*
    • Easy ATM access
    • 1 physical branch (in Bridgewater, New Jersey)

    Cons

    • Account could close if you make more than 6 transactions in a statement cycle
    • No option to add a checking account

    Who’s this for? Withdrawing money is quick and easy when you have a 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 $3.14. Just going to the ATM twice in one month would already put you over the refundable amount.

    To deposit money into your savings account at Synchrony Bank, you can make an electronic transfer from an external bank account that you’ve linked, do a direct deposit, make a wire transfer, mail a check or use the bank’s mobile app to deposit a check.

    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.

    Best for earning airline miles

    Bask Bank Interest Savings Account

    Bask Bank and BankDirect are divisions of Texas Capital Bank, Member FDIC.

    • Annual Percentage Yield (APY)

    • Minimum balance

    • Monthly fee

    • Maximum transactions

      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

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

    Pros

    • Strong APY
    • No minimum balance 
    • No monthly fees
    • Ability to earn American Airlines AAdvantage miles instead

    Cons

    • No option to add a checking account
    • No ATM access

    Who’s this for? If you want to maximize your interest-earning potential, the Bask Bank Interest Savings Account may be for you. It offers a very respectable cash APY to all savings account holders.

    Here’s the kicker: If you’re a frequent traveler, you can opt to earn American Airlines AAdvantage® miles back instead. 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 accounts offer 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.

    Best for welcome bonus

    SoFi Checking and Savings

    Information about SoFi Checking and Savings has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication.

    • Monthly maintenance fee

    • Minimum deposit to open

    • Minimum balance

    • Annual Percentage Yield (APY)

      Members with direct deposit earn 3.75% APY on savings and Vaults balances, and 2.50% APY on their checking balances. Members without direct deposit will earn 1.20% APY.

    • Free ATM network

      55,000+ fee-free ATMs within the Allpoint® Network

    • ATM fee reimbursement

    • Overdraft fee

      No-Fee Overdraft Coverage is available; however, SoFi requires $1,000 of monthly direct deposit inflows to unlock it

    • Mobile check deposit

    Pros

    • No minimum deposit to open an account
    • 1.80% 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

    Who’s this for? 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 anywhere from $50 to $300, depending on the total of your direct deposits in a 30-day period.

    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.

    Best if you want extra help saving

    Varo Savings Account

    Bank Account Services are provided by Varo Bank, N.A., Member FDIC.

    • Annual Percentage Yield (APY)

      Begin earning 3.00% and qualify to earn 5.00% if you meet requirements

    • Minimum balance

      None; $0.01 to earn savings interest

    • Monthly fee

    • Maximum transactions

      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

    • Excessive transactions fee

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

      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

    Who’s this for? 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.

    Find the best savings account for you: Help your money grow by finding the savings account that offers the best rates and features for you.

    FAQs

    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.

    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 definitely worth considering.

    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.

    Can you withdraw money from a high-yield savings account?

    By law, consumers can withdraw or transfer cash out of a high-yield savings account up to six times per month without paying any fees. However, some accounts let you make more withdrawals for no additional fee.

    What are the cons of a high-yield savings account?

    The biggest con of a high-yield savings account is that you’re usually limited to a certain number of withdrawals each month before you’re hit with a fee — just like a traditional savings account. Further, interest rates can fluctuate over time, but that applies to all types of savings accounts. Withdrawing money may also be a slightly slower process as only a few high-yield savings accounts offer ATM cards. Most of the online high-yield savings account banks don’t have physical locations.

    Common high-yield terms you should know

    • 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.

    Our methodology

    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.

    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.

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  • CNBC’s best high-yield savings accounts of 2023

    CNBC’s best high-yield savings accounts of 2023

    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.

    High-yield savings accounts have been in the spotlight in 2023. While the stock market has been highly volatile, high-yield savings accounts have been consistently paying out higher annual percentage yields (APYs) to their customers. Some of this year’s highest rates have exceeded 4% APY.

    These types of accounts reward you with higher interest rates than traditional savings accounts and allow your money to grow faster thanks to compound interest — which lets you earn interest on interest. The higher your APY, the faster your money grows and you get a better return than you would with a traditional savings account.

    While rates can fluctuate over time, high-yield savings accounts generally offer APYs over 10 times greater than the national average on savings accounts. So, if you’re building an emergency fund or saving up for a large expense, putting your money in a high-yield savings account can help you reach your goals quicker.

    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 savings accounts selected 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 2023

    Best overall

    LendingClub High-Yield Savings

    LendingClub Bank, N.A., Member FDIC

    • Annual Percentage Yield (APY)

    • Minimum balance

      No minimum balance requirement after $100.00 to open the account

    • Monthly fee

    • Maximum transactions

    • Excessive transactions fee

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

    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

    Who’s this for? 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.

    To add money to your savings account at LendingClub, you can deposit cash at select ATMs, deposit checks via the mobile app, do a direct deposit, make an electronic transfer from an external bank or make a wire transfer.

    Best for earning high APY

    UFB Preferred Savings

    UFB Best Savings is a Member FDIC.

    • Annual Percentage Yield (APY)

    • Minimum balance

    • Monthly fee

    • Maximum transactions

      No max number of transactions; Max transfer amounts may apply

    • Excessive transactions fee

    • Overdraft fees

      Overdraft fees may be charged, according to the terms, but a specific amount is not specified; overdraft protection service available

    • Offer checking account?

    • Offer ATM card?

    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

    Who’s this for? The UFB Preferred Savings account is for anyone who’s focused on maximizing their returns. It offers one of the highest interest rates currently available.

    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.

    Best for no fees

    Marcus by Goldman Sachs High Yield Online Savings

    Goldman Sachs Bank USA is a Member FDIC.

    • Annual Percentage Yield (APY)

    • Minimum balance

      None to open; $1 to earn interest

    • Monthly fee

    • Maximum transactions

      At this time, there is no limit to the number of withdrawals or transfers you can make from your online savings account.

    • Excessive transactions fee

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

    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

    Who’s this for? 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.

    To add money to your account, you can transfer funds, make direct deposit payments, deposit a check or make a wire transfer. 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.

    While there are no ATM cards or checking account options available through Marcus, the bank does offer a variety of no-fee personal loans as well.

    Best for checking/savings combo

    Ally Bank Online Savings Account

    Ally Bank is a Member FDIC.

    • Annual Percentage Yield (APY)

    • Minimum balance

    • Monthly fee

      No monthly maintenance fee

    • Maximum transactions

      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

    • Excessive transactions fee

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

      Yes, if have an Ally checking account

    Pros

    • Strong annual percentage yield on all balance tiers
    • No minimum balance
    • No monthly maintenance fee
    • Up to 6 free withdrawals or transfers per statement cycle*
    • Option to add a checking account
    • ATM access if you have a checking account

    Cons

    • $10 fee per transaction if you make more than 6 in a statement cycle
    • $25 overdraft fee

    Who’s this for? Ally is a good choice for anyone looking to do all their banking in one place. While the Ally Online Savings Account is a good high-yield account on its own, account holders can enjoy even more benefits if they also have an Ally checking account.

    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.

    You can’t deposit cash in your Ally savings account, which is standard for many online banks, but you can deposit checks remotely with eCheck Deposit on the mobile app. 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. 

    Best for easy access to your cash

    Synchrony Bank High Yield Savings

    Synchrony Bank is a Member FDIC.

    • Annual Percentage Yield (APY)

    • Minimum balance

    • Monthly fee

    • Maximum transactions

      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

    • Excessive transactions fee

      None, but may result in account closure

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

    Pros

    • Strong APY
    • No minimum balance
    • No monthly fees
    • Up to 6 free withdrawals or transfers per statement cycle*
    • Easy ATM access
    • 1 physical branch (in Bridgewater, New Jersey)

    Cons

    • Account could close if you make more than 6 transactions in a statement cycle
    • No option to add a checking account

    Who’s this for? Withdrawing money is quick and easy when you have a 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 $3.14. Just going to the ATM twice in one month would already put you over the refundable amount.

    To deposit money into your savings account at Synchrony Bank, you can make an electronic transfer from an external bank account that you’ve linked, do a direct deposit, make a wire transfer, mail a check or use the bank’s mobile app to deposit a check.

    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.

    Best for earning airline miles

    Bask Bank Interest Savings Account

    Bask Bank and BankDirect are divisions of Texas Capital Bank, Member FDIC.

    • Annual Percentage Yield (APY)

    • Minimum balance

    • Monthly fee

    • Maximum transactions

      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

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

    Pros

    • Strong APY
    • No minimum balance 
    • No monthly fees
    • Ability to earn American Airlines AAdvantage miles instead

    Cons

    • No option to add a checking account
    • No ATM access

    Who’s this for? If you want to maximize your interest-earning potential, the Bask Bank Interest Savings Account may be for you. It offers a very respectable cash APY to all savings account holders.

    Here’s the kicker: If you’re a frequent traveler, you can opt to earn American Airlines AAdvantage® miles back instead. 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 accounts offer 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.

    Best for welcome bonus

    SoFi Checking and Savings

    Information about SoFi Checking and Savings has been collected independently by CNBC Select and has not been reviewed or provided by the issuer prior to publication.

    • Monthly maintenance fee

    • Minimum deposit to open

    • Minimum balance

    • Annual Percentage Yield (APY)

      Members with direct deposit earn 3.75% APY on savings and Vaults balances, and 2.50% APY on their checking balances. Members without direct deposit will earn 1.20% APY.

    • Free ATM network

      55,000+ fee-free ATMs within the Allpoint® Network

    • ATM fee reimbursement

    • Overdraft fee

      No-Fee Overdraft Coverage is available; however, SoFi requires $1,000 of monthly direct deposit inflows to unlock it

    • Mobile check deposit

    Pros

    • No minimum deposit to open an account
    • 1.80% 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

    Who’s this for? 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 anywhere from $50 to $300, depending on the total of your direct deposits in a 30-day period.

    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.

    Best if you want extra help saving

    Varo Savings Account

    Bank Account Services are provided by Varo Bank, N.A., Member FDIC.

    • Annual Percentage Yield (APY)

      Begin earning 3.00% and qualify to earn 5.00% if you meet requirements

    • Minimum balance

      None; $0.01 to earn savings interest

    • Monthly fee

    • Maximum transactions

      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

    • Excessive transactions fee

    • Overdraft fees

    • Offer checking account?

    • Offer ATM card?

      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

    Who’s this for? 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.

    Find the best savings account for you: Help your money grow by finding the savings account that offers the best rates and features for you.

    FAQs

    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.

    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 definitely worth considering.

    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.

    Can you withdraw money from a high-yield savings account?

    By law, consumers can withdraw or transfer cash out of a high-yield savings account up to six times per month without paying any fees. However, some accounts let you make more withdrawals for no additional fee.

    What are the cons of a high-yield savings account?

    The biggest con of a high-yield savings account is that you’re usually limited to a certain number of withdrawals each month before you’re hit with a fee — just like a traditional savings account. Further, interest rates can fluctuate over time, but that applies to all types of savings accounts. Withdrawing money may also be a slightly slower process as only a few high-yield savings accounts offer ATM cards. Most of the online high-yield savings account banks don’t have physical locations.

    Common high-yield terms you should know

    • 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.

    Our methodology

    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.

    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.

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