Written by
Heather Taylor
Edited by
Melanie Grafil
Those who want to reach their financial goals, like building an emergency fund or saving for a home down payment, often struggle to find the money in their budget. In fact, a recent GOBankingRates survey found that half of Americans have less than $500 in savings, which makes it that much more important to earn high interest on their money.
A high-yield savings account offers higher interest rates than traditional savings accounts. This is a win-win for banking customers, as it means they get a better return on their savings and can utilize compound interest to grow their savings faster.
To find the Best High-Yield Savings Accounts of 2024, GOBankingRates ranked banks’ offerings based on the following factors:
- Minimum deposit
- Minimum needed to earn APY
- Savings APY
- Fees
- Mobile app ratings
Here are GOBankingRates’ Best High-Yield Savings Accounts of 2024.
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Compare the Best High-Yield Savings Accounts
Account
Best For
APY
Min. Balance for APY
Monthly Fees
Learn More
FNBO Direct High-Yield Online Savings Account
Best for Pairing With Checking
$0.01
$0
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GOBankingRates Best High-Yield Savings Accounts
Best for No-Frills Saving
Bask Bank Interest Savings Account
Annual Percentage Yield
Minimum Balance for APY
$0.01
Monthly Fees
$0
WHY WE LIKE BASK BANK INTEREST SAVINGS ACCOUNT
Some financial institutions have complicated banking to the point that consumers are overwhelmed by the sheer number of accounts available, and by trying to figure out which is best. Bask Bank takes a uniquely back-to-basics approach with it’s Bask Interest Savings Account, which is great for current or new customers. It’s a high-yield savings account with no monthly fee and no minimum deposit or balance requirements. It’s that simple.
This savings account sells itself with a straightforward and high APY. Though it’s an online-only option, you can earn this amount of interest on just a basic account so much that you won’t even miss physical branches.
Best for Unlimited Withdrawals
Betterment Cash Reserve Account
Annual Percentage Yield
Minimum Balance for APY
$0.01
Monthly Fees
$0
WHY WE LIKE BETTERMENT CASH RESERVE ACCOUNT
A savings account is only as good as your ability to access your cash when you need it. GOBankingRates likes Betterment’s Cash Reserve high-yield savings account for its unlimited withdrawals. Not only can you withdraw money whenever you want, you can also transfer funds to your Betterment investing account as often as you need to, hassle-free.
Betterment’s higher-than-average APY is another standout feature for those who want to quickly grow their uninvested funds.
Ranked as one of GOBankingRates’ Best High-Yield Savings Accounts, a great feature is that banking customers may open a Cash Reserve account with as little as $10. There are no minimum balance requirements or monthly service fees. Plus, Betterment customers may make unlimited withdrawals from their account penalty-free.
Best for NO FEES
BMO Alto Online Savings Account
Annual Percentage Yield
Minimum Balance for APY
$0.01
Monthly Fees
$0
WHY WE LIKE BMO ALTO ONLINE SAVINGS ACCOUNT
Fees can put a big dent in your savings account balance, no matter how high the APY. BMO Alto eliminates that drain with its fee-free Online Savings Account that also happens to pay one of the best rates available in a high-yield savings account. If you need to grow your money quickly, whether you’re building an emergency fund or saving for a down payment, opening a high-yield savings account with BMO Alto may be your best bet.
Banking customers receive several additional benefits, including no minimum balance requirements, a $0 minimum opening deposit and unlimited transfers and withdrawals.
Best for Pairing With a CD
Bread Financial High-Yield Savings Account
Annual Percentage Yield
Minimum Balance for APY
$100
Monthly Fees
$0
WHY WE LIKE BREAD FINANCIAL HIGH-YIELD SAVINGS ACCOUNT
A multi-prong approach to building savings is often the way to go. Bread Financial offers the perfect opportunity to implement that strategy — specifically, by paring its High-Yield Savings Account with a Bread Financial CD. The pairing lets you take advantage of the savings APY with cash you want to keep available, and an even higher APY on funds you won’t need for a year.
Another thing to like about the Bread Financial High-Yield Savings Account is once you open an account, you can start growing its savings as soon as today. This account requires a $100 minimum opening deposit and is fully FDIC-insured to ensure the safety of your money. Plus, with no hidden fees and compounded daily interest, you’re well on your way to saving more money and reaching all of your financial goals.
Best for FOR Pairing With Checking
FNBO Direct High-Yield Online Savings Account
Annual Percentage Yield
Minimum Balance for APY
$0.01
Monthly Fees
$0
WHY WE LIKE FNBO DIRECT HIGH-YIELD ONLINE SAVINGS ACCOUNT
FNBO Direct’s High-Yield Online Savings Account has an impressively high APY, and you only need a single dollar to open the account. The benefit is that you can open a savings account and still have funds for a checking account you can start using right away. FNBO Direct’s Online Checking also earns interest, so it’s a perfect partner account for your high-yield savings.
Another eye-catching perk is that FNBO Direct’s High-Yield Online Savings Account touts the same digital payment and mobile capabilities as the bank’s checking account, so customers can conduct transactions in a convenient way from their phones or computers.
Best for Mobile Banking
GO2bank High-Yield Savings Account
Annual Percentage Yield
Minimum Balance for APY
$0.01
Monthly Fees
$5, waivable
WHY WE LIKE GO2BANK HIGH-YIELD SAVINGS ACCOUNT
GO2bank’s High-Yield Savings Account is an online account, so strong mobile tools are a must. GO2bank delivers with a full-featured app that has 4.8 stars on the App Store and 4.5 stars on Google Play.
The account also features a higher-than-average APY and minimal to no fees across a variety of features. It’s free to open an online account, and banking customers pay $0 when they make a direct deposit, transfer money from a linked bank account or make an in-network ATM withdrawal. As an added banking bonus, customers that direct deposit their tax refund to their GO2bank account are automatically entered for a chance to win $500 and can add more to their tax refund savings.
Best for High APY
Milli Savings Account*
Annual Percentage Yield
Minimum Balance for APY
$0.01
Monthly Fees
$0
WHY WE LIKE MLLI SAVINGS ACCOUNT
Milli because it prioritizes saving and rewards consumers with a very competitive APY. You can even track your accrued interest in your Milli dashboard.
Milli’s Savings Account is not only a powerful savings tool in its own right, but it allows customers to create savings ‘Jars’ within it to save toward specific goals. For people who prefer a mobile-only banking experience with a great return, Milli gets the job done.
*Milli announced it will be closing on Nov. 15, 2024, and will not be accepting new applications. The APY and information above was last reported on Sept. 16, 2024. For more information, visit Milli’s website here.
Best for Pairing With Checking
Salem Five Direct eOne Savings Account
Annual Percentage Yield
Minimum Balance for APY
$0.01
Monthly Fees
$0
WHY WE LIKE SALEM 5 DIRECT EONE SAVINGS ACCOUNT
The Salem Five Direct eOne Savings Account is a great opportunity for anyone who wants to quickly make your savings earn for you, with a high APY and minimal fees or required balances. With no limit on transactions and easy transfers, this is a perfect savings account to pair with eOne Checking.
Not only does the Salem Five Direct eOne Savings pay a high APY on every dollar of savings, but you can open the account with just $10. Without those maintenance fees or minimum balance requirements, it’s an excellent way to get ahead on your savings.
Best for HIGH APY
TAB Bank High Yield Savings Account
Annual Percentage Yield
Minimum Balance for APY
$0.01
Monthly Fees
$0
WHY WE LIKE TAB BANK HIGH YIELD SAVINGS ACCOUNT
TAB Bank’s High Yield Savings Account really delivers, with the highest APY on this list that’s much higher than you’ll find at a traditional bank.
With TAB, there are no monthly fees eating away at your savings. This is an account you can literally count on to earn you money while you save. There are also no balance caps, and the mobile app is well-rated with 4.7 stars on the Apple Store and 4.3 on Google Play.
Best for High-Net-Worth Individuals
Wealthfront Cash Account
Annual Percentage Yield
Minimum Balance for APY
$0.01
Monthly Fees
$0
WHY WE LIKE WEALTHFRONT CASH ACCOUNT
As its name implies, Wealthfront’s mission is to make it easy to build wealth, so it’s a natural fit for individuals already on that path through Wealthfront’s investment platform. Through its network of partner banks, Wealthfront protects your money with FDIC insurance up to $8 million, which is way more than the federally required minimum and much higher than most banks offer.
This Cash Account requires no minimum deposit and delivers a yield of APY, putting it near the top of the pack when it comes to high-yield savings.
Perfect for those who are serious about building long-term and short-term savings, Wealthfront also makes it easy to access your money in an emergency. Wealthfront offers unlimited money transfers and same-day withdrawals, no minimum balance requirements and no account fees. There is no limit to the interest you can earn, either.
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Research Methodology
To determine rankings GOBankingRates looked at the following factors from all banks: (1) minimum deposit to open an account; (2) monthly savings fee ratio (percent the minimum to avoid fee compared to the monthly fee itself); (3) minimum needed to earn APY; (4) savings APY; and (5) the average mobile app rating between the Google Play (Android) and Apple stores. All factors were then scored and combined, with the lowest score being the best. Factors (2) and (3) weighed 1.5 times, factor (4) weighed 4 times; and factor (5) weighed 0.5 times. All products and offerings had to be available as of Nov. 8, 2023 to be considered. To be considered for the HYSA, the product offered had to have an APY above 0.45%. Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Nov. 22, 2024.
What To Know About High-Yield Savings Accounts
You may know it’s important to open a high-yield savings account, but do you understand how these accounts work? Here’s a closer look.
What Is a High-Yield Savings Account?
In simple terms, a high-yield savings account is a type of savings account that offers higher-than-average interest rates on deposits. You can find a high yield savings account at credit unions, as well as at traditional and online banks. Some financial institutions even offer them. While the APY rates d vary, generally they are significantly more than a traditional savings account.
How High-Yield Savings Accounts Work
When you open a high-yield savings account and put a specific sum of money in it, this money is able to grow — typically much faster than it would in a traditional savings account. This is because of the annual percentage yield.
Essentially, the higher the APY on a savings account, the faster the money saved in this account grows. The daily impact of compounding interest means banking customers may reach financial goals much faster than if they saved their money in a traditional savings account.
Why You Should Open a High-Yield Savings Account
Because of daily compounding interest, opening a high-yield savings account means you can reach your financial goals and save money much faster than you would in many other types of accounts. Compound interest plays an especially important role in growing your savings. With 49% of Americans, living paycheck-to-paycheck according to a GOBankingRates study, it could be one way to keep finances in check.
Minimums and Fees To Be Aware Of
These will vary depending on your financial institution. It’s always a good idea to do a bit of research when reviewing high yield savings accounts at credit unions or banks and to determine which fees or minimum balance requirements you may need to adhere to as a customer.
Is My Money Safe in a High-Yield Savings Account?
The answer is yes, if the high-yield savings account is FDIC-insured. The variable rates do mean the interest may go up or down a bit, but the overall financial product itself is safe.
Pros and Cons of High-Yield Savings Accounts
Here are a few pros and cons associated with high-yield savings accounts.
Pros
- Higher yields
- Compounding daily interest
- Low, or no, minimum balance requirement
- No bank fees
- FDIC-insured to ensure safety of your money
- Easy to access if you need the money
Cons
- Variable interest rates
- You may be asked to pay a fee after reaching a certain number of withdrawals
- Not the best method for growing wealth long-term
How To Choose a High-Yield Savings Account
Take the following factors into consideration when determining which high-yield savings account you should open:
- Higher than average APY
- No bank fees
- Zero recurring fees
- Ease in accessing the money
- Make sure the financial institution of your choice is FDIC-insured
Alternatives to High-Yield Savings Accounts
Let’s compare and contrast various types of accounts to high-yield savings accounts.
High-Yield Savings Account vs. Traditional Savings Accounts
The most notable difference between high-yield savings accounts and traditional savings accounts, or standard savings accounts, is their higher yields. In many cases, the average interest rate for a high-yield savings account can be up to 10 times — or greater! — the average rate of a standard savings account.
High-Yield Savings Accounts vs. Checking Accounts
The overall functions between a checking account and a high-yield savings account tend to occupy different spaces in one’s financial journey. A checking account earns much less interest than a high-yield savings account. A checking account is a good choice for those who need to make everyday transactions, like paying bills or buying essential items. A high-yield savings account is ideal for those saving money to reach a financial goal, as their savings will quickly earn interest that way.
High-Yield Savings Accounts vs. Money Market Accounts
Money market accounts share similarities with high-yield savings accounts. Both accounts are FDIC-insured and have higher yields than a traditional savings account.
One of the biggest differences, however, is the minimum balance requirement. Many high-yield savings accounts have low, or no, minimum balance requirements. A money market account’s minimum balance requirement may be as low as a few hundred dollars or several thousand dollars. It is possible to find a money market account with a lower minimum balance requirement, so it’s advised that banking customers do their due diligence to determine their options.
High-Yield Savings Accounts vs. CDs
If the fluctuating nature of high-yield savings account interest rates does not appeal to you, you may consider a certificate of deposit.
A CD allows you to lock in an interest rate for a term period, which can be a few months or several years. High-yield savings accounts have variable rates, which may change and cannot be locked in like a CD.
High-Yield Savings Accounts vs. Investing
Regardless of how much higher than average the APY is on a high-yield savings account, it is not generally recommended to open a high-yield savings account in lieu of investing. While investing does come with risks, investments carry a higher rate of potential long-term returns. Connect with a financial professional to determine which you should prioritize and ask additional questions.
High-Yield Savings Accounts vs. Money Market Funds
While both high-yield savings accounts and money market funds allow you to quickly build a short term savings, there are several differences between the two to consider. Money market funds differ from high-yield savings accounts in that they may offer even more substantial interest rates.
However, one of the biggest differences pertains to FDIC insurance. High-yield savings accounts are FDIC-insured and money market funds are not, though they are considered low-risk investments.
High-Yield Savings Accounts vs. Roth IRAs
The biggest difference between a high-yield savings account and a Roth IRA is that the former is used to save money temporarily. A Roth IRA is a retirement account and is treated with long-term investing in mind.
How To Open a High-Yield Savings Account
If you’re ready to open a high-yield savings account, you’ll need to obtain the following items before getting started.
Identification
You must be able to provide a government-issued ID, such as a driver’s license, state-issued ID or passport, with your legal name and birth date. You will also be asked for your Social Security number or an Individual Taxpayer Identification Number.
Additional necessary information to provide includes your home address, home phone number and email address.
Minimum Deposit
If there is a minimum deposit required to open a high-yield savings account, you will need to pay this amount. Depending on your financial institution, you may be able to pay using the routing and account numbers for a separate bank account, a debit card or a money order.
Application
Fill out the appropriate application to open a high-yield savings account. You may do this in-person at a financial institution branch location, over the phone or online.
Interest Rates on High-Yield Savings Accounts
Here’s more about the role of interest rates on high-yield savings accounts.
How Does Interest Work on a High-Yield Savings Account?
A high-yield savings account utilizes compound interest to grow its savings. This means you earn interest on the principal balance and the interest the balance earns.
High-Yield Savings Account Interest Rate Forecast for 2024
Most predictions indicate that these interest rates will stay high, likely in the 4% range and possibly higher. However, these rates may also be subject to fluctuation. It’s a good idea to review the APYs on high-yield savings accounts at financial institutions you’re interested in banking at before making a decision.
How To Find the Best High-Yield Savings Rates
Review GOBankingRates’ Best Banks list to find out which financial institutions offer the best high-yield savings accounts in 2024.
Is High-Yield Savings Account Interest Taxable?
Yes. After earning more than $10 in interest, you will receive Form 1099-INT, Interest Income from the IRS as you file your federal taxes.
How Often Do High-Yield Savings Interest Rates Change?
These rates are variable, so they are subject to fluctuating with market conditions.
Daria Uhlig, Sarah Sharkey, Cynthia Measom, Cynthia Bowman, Karen Doyle and Melanie Grafil contributed to the reporting for this article.
Recap of Winners
- Bask Bank Interest Savings Account – Best for No-Frills Saving
- Betterment Cash Reserve Account – Best for Unlimited Withdrawals
- BMO Alto Online Savings Account – Best for No Fees
- Bread Financial High-Yield Savings Account – Best for Pairing With a CD
- FNBO Direct High-Yield Online Savings Account – Best for Pairing With Checking
- GO2bank High-Yield Savings Account – Best for Mobile Banking
- Milli Savings Account- Best for High APY
- Salem Five Direct eOne Savings Account – Best for Pairing With Checking
- TAB Bank High Yield Savings Account – Best for High APY
- Wealthfront Cash Account – Best for High-Net-Worth Individuals
FAQ
Here are some common questions and answers about high-yield savings accounts.- Are high-yield savings accounts FDIC-insured?
- Yes, your money is safe in a high-yield savings account at FDIC-insured banks and financial institutions.
- Which bank gives 7% interest on high-yield savings accounts?
- GOBankingRates has not identified a bank with savings account rates that high. Review GOBankingRates’ Best Banks list to find out more about the Best High-Yield Savings Accounts in 2024.
- How often can I take money out of a high-yield savings account?
- By law, you may withdraw cash out of a high-yield savings account up to six times each month. While that law is currently suspended, some financial institution continue to enforce it.
- How can I earn high interest rates besides a high-yield savings account?
- You may open a CD and lock in a specific interest rate for a term period, which may range from months to years. Another option is to purchase Treasury notes or bonds. The higher the interest rate and the longer the maturity is, the more the note or bond pays out.
- Do any banks have high-yield savings accounts?
- Yes, many banks offer high-yield savings accounts. Review GOBankingRates’ Best Banks list to discover the Best High-Yield Savings Accounts in 2024.
- Is a high-yield savings account worth it?
- A high-yield savings account is recommended by many financial experts for those interested in reaching short- and long-term financial goals. The compounding daily interest helps to grow your money quickly. Do a bit of research to determine if this is the right savings account for you and your financial situation.
- Can you lose money in a high-yield savings account?
- The interest rate on a high-yield savings account may fluctuate, but there is no risk of losing money if you follow FDIC insurance guidelines. In the event of a significant financial loss, FDIC insurance covers up to $250,000 per depositor.
- What is the downside of a high-yield savings account?
- A few cons associated with high-yield savings accounts include variable interest rates, being asked to pay a fee after completing a certain amount of withdrawals and the high-yield savings account as a less-than-ideal vehicle for building long-term wealth.
- Why should you consider a high-yield savings account?
- Opening a high-yield savings account allows you to quickly grow your savings thanks to higher-than-average interest rates and the power of compound interest. Many high-yield savings accounts also have no or low additional costs, and your money is easy to access in this account, if you need it.
- Is it safe to keep your money in a high-yield savings account?
- Generally, high-yield savings accounts are considered safe accounts for your money. These accounts are FDIC-insured, as they meet the standard insurance limit of $250,000 per depositor, per bank and per ownership category.
- Where can I get 5% interest on my savings account?
- You can find APYs on savings accounts offering 5.00% and even higher in some cases. These include: Varo Savings Account, Bread Savings High-Yield Savings Account, Centier Bank Connect Savings Account. Western Alliance Bank Savings Account and UFB High Yield Savings Account. You can even get up to 6.17% with Digital Federal Credit Union's Online Savings Account.
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