Best High Yield Savings Accounts in USA
A savings account helps you grow your wealth safely while keeping your money close at hand. You can open one with most banks and credit unions, but the best online savings accounts are available through online banks. Here’s a look at our picks for the top savings accounts, as well as some guidance on what to look for when choosing a savings account. These banks have some great APYs (Annual Percentage Yield) and are good options to explore.
What is a savings account?
A savings account is a type of bank account designed to hold funds you don’t plan to spend immediately. It has an annual percentage yield (APY), which dictates how much interest you earn on the money you keep there. You can open one of these with any bank or credit union, and you can usually contribute as much as you’d like to the account.
How does a savings account work?
Banks use savings accounts to encourage people to keep money in the bank. You add your funds by direct deposit, electronic transfer, check, or some other method. In exchange, your bank pays you interest on your money, usually every month.
How much you earn depends in part on your savings account’s APY and on your balance. A higher APY leads to more money in your pocket, and a higher balance often does, too. Sometimes, banks use a tiered APY system where you qualify for a higher APY if you keep more money in the bank.
How do I access my money?
You’re free to withdraw your money from a savings account at any time, but accessing your funds isn’t always easy. Most savings accounts don’t offer check-writing capabilities or a debit card, so you have to first transfer the funds to a checking account before you can use them.
Some banks also impose limits on the number of free monthly withdrawals you can make from your savings account. This used to be required by a federal law known as Regulation D, but the government lifted this early in the COVID-19 pandemic and has yet to reinstate it. You can check with your bank to find out if your savings account has this sort of limitation.
It’s also a good idea to ask about monthly fees and balance requirements when deciding on a savings account. Some savings accounts require you to pay a monthly fee if you don’t maintain a certain balance, and this can negate all the interest you’ve earned. Fortunately, many online banks these days offer savings accounts with no maintenance fees.
What does the bank do with my money?
Banks use your savings to fund loans for their customers. Borrowers then pay interest on the loan, and your bank sends some of that interest to your savings account. A larger balance or a higher savings account interest rate results in more interest.
Types of savings accounts
Here’s a look at the common types of savings accounts you’ll run into.
Traditional savings account
Traditional savings accounts are usually offered by brick-and-mortar banks. They are typically pretty easy to open and most let you directly withdraw cash through a nearby bank branch. You can manage your money online as well. But APYs tend to be pretty low, and most of these accounts carry maintenance fees if your balance falls below a certain threshold.
High-yield savings account
High-yield savings accounts are more common with online banks. These are similar to traditional savings accounts, but they offer much higher APYs and most don’t have monthly maintenance fees. This is the best choice for most people who are comfortable handling their basic banking needs online.
Money market account
Money market accounts offer the APYs of a savings account with the easier access of a checking account. Some include check-writing capabilities, a debit card, or both. However, these accounts usually have higher minimum balance requirements than typical savings accounts.
Certificate of deposit (CD) account
Certificates of deposit (CDs) usually offer higher APYs than any of the savings accounts discussed above. But you have to agree not to withdraw your funds for the full CD term. This can be anywhere from a few days to five years or more, depending on the type of CD you open. If you take your money out early, you can face penalties.
Cash management account
Cash management accounts are available through many online brokers. Money you keep in here earns some interest, and you can decide to invest it if you’d like to potentially earn even more later on. Many still give you access to the online banking features you’re probably used to. Some of these are FDIC insured, like the bank accounts listed above — this means you’ll get some or all of your money back if the bank fails. But not all of them are. If you keep funds in a non-FDIC insured account and the company goes under, you could lose that money.
Specialty savings account
A specialty savings account is a savings account that’s geared at a certain group of people. Kids’ savings accounts are a great example. These are designed for minors who may not be able to open a savings account on their own right away.
Other types of specialty savings accounts include:
- Student savings accounts
- Health savings accounts (HSAs)
- Accounts for specific goals, like Christmas Club savings accounts
Pros and cons of savings accounts
There are advantages and disadvantages that come along with savings accounts. Before deciding if a savings account suits your needs, it’s important to consider both.
Pros
- Earning interest
- Saving as much as you like
- Paying bills with automatic bill pay
- Knowing your money is insured with the FDIC
Cons
- Monthly maintenance fees (sometimes)
- No ATM card or checks (usually)
- Only six free withdrawals per month
- Fees for extra withdrawals after your first six withdrawals at some banks
What is a high-yield savings account?
A high-yield savings account earns more interest than most other savings accounts. This is known as a higher APY — or annual percentage yield. The APY on the best high-yield savings accounts can be up to eight times higher than the national average (and sometimes even higher).
High-yield savings accounts are usually found at online banks. Without a large branch network to maintain, these banks are able to pass their savings on to you in the form of higher APYs and lower fees.
Most online savings accounts carry the same FDIC insurance as traditional banks do. But because these banks don’t have branches, you often have fewer options for accessing your funds. This shouldn’t pose a serious issue for most people, though, as these accounts are intended for saving, not frequent spending.
What is the difference between an online savings account and a traditional savings account?
Traditional savings accounts are usually offered by brick-and-mortar banks. Online savings accounts don’t have the overhead of running physical branches and so can offer higher interest rates. As such, the best online savings accounts are often high yield. Early on, many bank customers were concerned that hackers might gain access to their information. As a result, online banks attracted deposits by offering interest rates that brick-and-mortar banks couldn’t match.
Now, the banking world has turned upside down. Many people prefer the convenience of online banking. Indeed, traditional brick-and-mortar banks have created online systems to give their customers the same online services.
Here are some of the key differences between savings accounts at online and brick-and-mortar banks:
- Interest rates: The best online banks still offer far better rates than their brick-and-mortar counterparts, especially on basic savings accounts. Many brick-and-mortar banks pay next to nothing in interest, relying on other features to bring customers in.
- Hours of operation: Online banks are more convenient for conducting regular business at any time (although hours can vary if you need to talk to a real person). You don’t have to worry about branch location hours or what transactions your brick-and-mortar bank will let you do through an ATM.
- ATM networks: Unlike online banks, brick-and-mortar banks have extensive networks of proprietary ATMs. However, many online banks partner with a nationwide fee-free ATM network or offer ATM fee rebates.
- Customer service: Online banks typically have call centers that provide service on an extended schedule, and a few give their customers 24/7 support. Some also offer online chat assistance. However, no online bank can match the in-person relationships brick-and-mortar banks offer. These are their main competitive advantage over their internet-focused rivals.
- Account access: Most online bank transactions require customers to transfer funds electronically. This typically takes a couple of days to complete. Wire transfers are available for more time-critical needs, but you’ll often pay an extra fee. When you need quick access to your money and an ATM won’t cut it, brick-and-mortar banks let you immediately withdraw as much as you need at a branch.
The type of bank that’s best for you depends on which features are most important to you. Unless you really need to be able to visit a branch and speak to a live person, an online bank should be able to satisfy your needs most of the time. Plus, you can earn a higher APY in the process.
The best savings accounts have a high APY, no monthly maintenance fees, and FDIC insurance. Keep those things in mind as you compare your savings account options.
Savings account terminology
Here are a few key terms to know before you open a savings account. These are important terms for online savings accounts, traditional savings accounts, and high-yield savings accounts.
APY: This stands for “annual percentage yield.” People often use this term interchangeably with interest rate, but the two aren’t the same. APY takes into account the actual interest rate as well as how often that interest compounds. A higher APY means more interest for you.
Monthly maintenance fee: This is a fee your bank charges to maintain your savings account. Some banks, especially online banks, don’t charge this fee, and others will waive it if you meet certain requirements.
Liquidity: Liquidity refers to how easy it is to turn your money into cash. Highly liquid accounts make this simple, while low-liquidity accounts make it a lot more challenging to get cash when you need it.
What should I look for in a savings account?
The best high-yield savings accounts, both online and traditional, will meet the following criteria:
- FDIC insurance: Most banks offer FDIC insurance. It’s unlikely you’ll ever use it, but it’s risky not to have it. If your bank fails and your funds aren’t insured, you lose your money.
- High APY: APYs fluctuate from bank to bank and over time, so there’s no solid definition of a high APY. You don’t need the highest rate on the market, but you should choose one that’s close to the highest around. This will earn you more interest.
- Low fees: Fees can eat into your profits and possibly cost you more than you’re earning in interest. Check your bank’s fee schedule to learn about any costs associated with the account, and avoid a monthly maintenance fee if you can. Also, check to see if there’s a minimum balance requirement on the account.
- Accessibility: Make sure you’re comfortable with the ways you can deposit money into your savings account and withdraw it when necessary. You likely also want a bank with an online portal and mobile banking so you can manage your funds remotely.
What should I use a high-yield savings account for?
A savings account is a good place for money you don’t need for everyday spending but aren’t willing to risk on the stock market. It’s a good idea to keep your emergency fund in a savings account, as well as money you’re saving toward a large purchase in the next few years.
Investing these funds is usually not a good idea. There’s a chance you could earn a higher rate on your money, but there’s also a risk your investments could lose money, particularly over the short term. You could be forced to sell your assets at a loss when you need money, and even then, it can take time to get the funds. With a savings account, your money’s always right there when you need it.
Savings accounts aren’t good places for cash you need to access on a day-to-day basis, because withdrawals in excess of six per month could bring fees. They’re also not the best choice for money you don’t plan to use for decades. That’s because savings account interest rates are usually lower than the return you can get on the stock market.
Can I keep an emergency fund in a savings account?
Yes, a savings account (especially a high-yield savings account) is a great place for your emergency savings. Here’s why:
Your emergency fund should be easily accessible to you. Keep your emergency savings in an account that allows you to transfer or withdraw money quickly. A certificate of deposit account is not recommended because no one can predict when financial emergencies are going to happen, and you might have to pay a penalty if you withdraw money from a CD before the maturity date.
Your emergency fund should be protected from losses. It’s generally not advisable to put your emergency fund in the stock market or other account that could experience fluctuations, because you wouldn’t want the value to be in a dip when you have a financial emergency.
Your emergency fund should grow. This is why you shouldn’t keep your money under the mattress, even if you feel that it would be safe from theft. A high-yield savings account allows you to maximize your earnings. Stashing cash — or leaving your money in a traditional savings account — means you forego the opportunity to earn as much as possible in interest.
Best High-Yield Savings Account Rates
- CFG Bank – 2.55% APY
- Ivy Bank – 2.30% APY
- Prime Alliance Bank – 2.26% APY
- UFB Direct – 2.21% APY
- Bask Bank – 2.20% APY
- My Banking Direct – 2.20% APY
- Fitness Bank – 2.20% APY
- BrioDirect – 2.15% APY
- Bread Savings – 2.15% APY
- Northpointe Bank – 2.15% APY
- Rising Bank – 2.10% APY
- Citizens Access – 2.10% APY
- CIBC USA – 2.08% APY
- LendingClub – 2.07% APY
- Quontic Bank – 2.05% APY
- First Foundation Bank – 2.02% APY
- Citi – 2.00% APY
- E*Trade Bank – 2.00% APY
- Live Oak Bank – 2.00% APY
The top savings account rates in the country are listed below in order of APY. Where more than one institution has the same rate, we’ve ranked accounts by those requiring the smallest minimum ongoing balance.
CFG Bank, High Yield Money Market Account – 2.55% APY
- Minimum initial deposit: $1,000
- Minimum ongoing balance: $1,000 to earn stated APY
- Monthly fee: None with $1,000 ongoing balance; otherwise, $10/month
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: Yes
- Note: Although this account has “money market” in its name, it offers no check-writing privileges and instead operates like a savings account.
Ivy Bank, High-Yield Savings Account – 2.30% APY
- Minimum initial deposit: $2,500
- Minimum ongoing balance: $2,500 to earn stated APY
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: Yes
Prime Alliance Bank, Personal Savings Account – 2.26% APY
- Minimum initial deposit: Any amount
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: Only with linked checking
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
UFB Direct, High Yield Savings Account – 2.21% APY
- Minimum initial deposit: Any amount
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: Yes
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: No
Bask Bank, Interest Savings Account – 2.20% APY
- Minimum initial deposit: Any amount
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: No
My Banking Direct, High Yield Savings Account – 2.20% APY
- Minimum initial deposit: $500
- Minimum ongoing balance: $1 to earn stated interest rate
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
Fitness Bank, Savings Account – 2.20% APY
- Minimum initial deposit: $100
- Minimum ongoing balance: $100
- Monthly fee: None with a $100 ongoing balance; otherwise, $10/month
- ATM card: No
- Mobile check deposit: No
- Checking accounts available: No
- CDs available: No
- Note: In order to earn its highest rate, Fitness Bank requires an average daily step count of 12,500, which is tracked through its app. However, additional APY tiers are offered for lower step counts. In addition, an interest rate boost is offered to those who pair this account with a Fitness Bank checking account.
BrioDirect, High-Yield Money Market Account – 2.15% APY
- Minimum initial deposit: $25
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
- Note: Although this account has “money market” in its name, the High-Yield Money Market account offers no check-writing privileges and instead operates like a savings account.
Bread Savings, High-Yield Savings Account – 2.15% APY
- Minimum initial deposit: $100
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: Yes
Northpointe Bank, Ultimate Savings – 2.15% APY
- Minimum initial deposit: $100
- Minimum ongoing balance: $25,000 to earn stated APY
- Monthly fee: None
- ATM card: No (only with checking account)
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
Rising Bank, High Yield Savings Account – 2.10% APY
- Minimum initial deposit: $1,000
- Minimum ongoing balance: $1,000 to earn stated APY
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
Citizens Access, Online Savings Account – 2.10% APY
- Minimum initial deposit: $5,000
- Minimum ongoing balance: $5,000 to earn stated APY
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: Yes
CIBC USA, Agility Online Savings Account – 2.08% APY
- Minimum initial deposit: $1,000
- Minimum ongoing balance: One penny
- Monthly fee: None
- ATM card: No
- Mobile check deposit: No
- Checking accounts available: Yes
- CDs available: Yes
LendingClub, High-Yield Savings – 2.07% APY
- Minimum initial deposit: $100
- Minimum ongoing balance: $2,500 to earn stated APY
- Monthly fee: None
- ATM card: Yes
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
Quontic Bank, High Yield Savings – 2.05% APY
- Minimum initial deposit: $100
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: Yes
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
First Foundation Bank, Online Savings Account – 2.02% APY
- Minimum initial deposit: $1,000
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: Yes (upon request only)
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
Citi, Accelerate Savings Account – 2.00% APY
- Minimum initial deposit: Any amount
- Minimum ongoing balance: Any amount
- Monthly fee: None with $500 minimum balance; otherwise, $4.50/month
- ATM card: Yes
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
- Note: May not be available in all zip codes
E*Trade, Premium Savings Account – 2.00% APY
- Minimum initial deposit: Any amount
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: No (only with checking account)
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: No
Live Oak Bank, High-Yield Online Savings – 2.00% APY
- Minimum initial deposit: Any amount
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: Yes
How Often Do Savings Rates Change?
The APY that a savings account pays on the day you make your initial deposit is not guaranteed. In fact, the account’s rate can change at any time.
Whether the rate goes up or down, and how often it changes, is largely influenced by the Federal Reserve. When it adjusts the federal funds rate, banks and credit unions often follow suit in the same direction.
That said, rate changes among savings accounts are not typically a daily or weekly event. Barring recent moves by the Fed, rates often remain at the same level for weeks or months at a time.