Best High-Yield Savings Accounts of June 2024

Key Takeaways

• To save you time from having to review bank and credit union websites, we reviewed account terms from 128 banks and conducted first-hand research by opening up accounts at the top nine banks on this list.
• To determine the top high-yield savings accounts, banks were evaluated based on account options, fees, rates, terms and user experience.
• With a 5.25% rate, UFB Direct offers the highest APY high-yield savings account.
• In both our MarketWatch Guides rating and user experience ranking, SoFi Bank came out on top and still pays up to 4.60% APY.

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Best High-Yield Savings Accounts

We researched 128 financial institutions to evaluate their account options, fees, rates, terms and customer experience to determine the top high-yield savings accounts. Our list below includes nine financial institutions which all have APYs over 4%, minimal or no monthly fees and low or no deposit requirements. Our research team also conducted first-hand research by opening accounts at each of these banks (and some others). Read more on our findings about each bank below.

Our writer and editor were supported by a research team of four which included a Certified Public Accountant, a Masters of Business Administration, and private equity investor.

SoFi High-Yield Savings Account

Best Checking and Savings Account Combo

4.8

Minimum Deposit None Savings APY 1.20% to 4.60% Bonus Up to $300 bonus

Why We Like It

Aside from its competitive APY, we like SoFi’s high-yield savings account for a few reasons. For one thing, it transfers money faster than any bank we tested. For money transferred in, we were able to see money available instantly in many cases, but one business day at the longest. Most banks take two to five business days. SoFi’s account is also fee-free, doesn’t limit the number of withdrawals you can make and has some great free budgeting tools.

Our First-Hand Experience Opening a SoFi HYSA

Overall, our experience with opening a high-yield savings account with SoFi was positive. We liked the following features:

• Robust budgeting tools free with account: We were able to connect multiple accounts, see spending trends and even get estimates of our car’s value and our net worth.
• Fast availability of funds: We were able to transfer money in and out of the account and have it available by the end of a business day.
• Online cancellation: This was one of the few banks that offered the option to close an account online.
• Easy opening process: While it did take us 12 clicks to open the account, which is about average, the whole process only took six minutes, which is fairly fast. 
• Speedy customer service: It did take three clicks to get to chat, but we were on hold for less than a minute.

Source: Sofi.com via MarketWatch Guides user testing.

We also found a few areas that needed improvement:

• No Zelle availability: Many banks use Zelle for bank-to-bank transfers, so it might be inconvenient for you that SoFi doesn’t.
• Unclear rate disclosure: We felt the advertising doesn’t make it clear that you have to use direct deposit to get the full savings APY.
• Unclear menu navigation: Several key actions and features, such as mobile check deposit and the ATM locator, are located under the “More” tab on the bank’s website, which our researchers found difficult to find.

Savings Tools and Cash Deposits

Savings Tools

The bank’s optional Roundups feature rounds your debit card purchases up to the nearest dollar and automatically transfers the change from your interest-bearing SoFi checking account to your savings.

There are also SoFi Vaults, which allows savers to divide a single savings account into as many as 20 segments. These segments can then be used to make savings goals such as setting up an emergency fund or saving for a down payment for a home.

How To Deposit Cash

Depositing cash in a SoFi savings account comes with one hurdle: You first have to go to a Green Dot location, such as CVS or Walmart, to deposit cash on your SoFi debit card. This service can cost up to $4.95. After that, you can transfer money from your checking account to your savings.

 

SoFi Bank Promotions

Through June 30, 2024, you can get a cash bonus for opening an account and setting up direct deposits on a SoFi checking and savings account. The offer also applies to new and existing customers who haven’t set up direct deposits.

• Get a $50 bonus for receiving direct deposits between $1,000 and $4,999.99.
• Get a $300 bonus for receiving direct deposits of $5,000 or more.

Pros & Cons

Pros Fastest transfers among the banks we used, with funds ready by the end of the business day No account fees or minimum balance requirements Lowest rate is still more than twice the national average Offers tools such as rounding up debit card purchases and dividing savings into multiple goals Savings account comes with a high-yield checking account Cons Direct deposit or $5,000 in monthly deposits required to earn the highest APY Doesn’t allow account holders to deposit cash directly into savings Fee of to $4.95 to deposit cash in the included checking account No Zelle availability

Bask Bank Interest Savings Account

Best for Quick Account Set-up Process

4.7

Minimum Deposit None Savings APY 5.10% Bonus N/A

Why We Like It

If you want a high rate and don’t need immediate access to the money you deposit, the Bask Bank Interest Savings Account could work for you. Account holders can only make deposits via mobile check deposit, automated clearing house (ACH) transfer or wire transfer. It also doesn’t have a minimum deposit requirement to open an account. 

Our First-Hand Experience Opening a Bask Bank HYSA

Bask Bank’s account opening process was one of our favorites. Here’s why we liked it:

• Simple application process: Opening an account with Bask Bank took us eight steps. Only one other company we tested (Upgrade) required fewer steps.

We also encountered a few issues with Bask Bank:

• Slow transfers: Transfers can take up to five business days to complete. This is among the longest transfer times of the banks we evaluated, according to our research.
• Chat isn’t instant: Unlike with some of its competitors, you’ll have to send a message and wait for a response from chat – up to 24 hours.
• ID required for login: You’ll need a government-issued ID to log in and complete your application. Not all banks require this, so while it adds a layer of security, we believe it’s unnecessary.
• No Zelle availability: While it’s not the only bank to not offer Zelle, it’s a convenience that many customers look for due to speed and safety of transactions.

Source: Baskbank.com via MarketWatch Guides user testing

Pros & Cons

Pros Easy account-opening process APY is more than 10 times the national average No minimum balance or minimum opening deposit requirements No monthly account fees Offers mobile check deposit Cons No physical branches No ATM or debit cards and no option to deposit cash Monthly limit of six withdrawals via ACH transfers Can take up to five business days to transfer funds ID required for sign-up

Discover High-Yield Savings Account

Best Customer Service

4.6

Minimum Deposit None Savings APY 4.25% Bonus Up to $200

Why We Like It

We always like a bank with no monthly fees and no minimum opening deposit or monthly balance requirement, and those are some of the things Discover Bank offers. Its customer service is also hassle-free, extremely helpful and available 24/7 – plus it’s fully based in the U.S.

Our First-Hand Experience Opening a Discover HYSA

When our team opened a high-yield savings account with Discover, we were impressed by its customer service and quick processes. Here’s why:

• Quick phone tree: When we called customer service, it required just one screen, and we were connected with a live agent in less than a minute. 
• 24/7 customer service: Discover offers around-the-clock support via phone.

However, we did find some areas where the bank could improve:

• Hold on funds: Discover has a 48-hour hold on deposited funds before they become available for use.
• Delayed Zelle availability: Zelle isn’t accessible until 90 days after the account has been funded.
• Multistep wire transfer process: Discover requires eight steps to send a wire transfer, which is more involved than most of the banks we opened accounts with.

Pros & Cons

Pros No monthly account fees No minimum deposit or minimum balance requirements Zelle access for person-to-person payments Fast customer service and 24/7 availability Cons Lower APY than some other high-yield savings accounts Doesn’t accept cash deposits No ATM access for savings account holders No physical branches Zelle only available 90 days after account funding

UFB Direct Secure Savings

Best for ATM Access

4.6

Minimum Deposit None Savings APY 5.25% Bonus N/A

Why We Like It

As another bank with no minimum opening balance requirements and no monthly fees, UFB Direct is also one of our top picks. And because, unlike a lot of other online banks, it still offers versatile phone support, it’s a great option for those who prefer to deal with “real people.” Additionally, you can access your money easily at one of the roughly 91,000 ATM locations across the country.

Our First-Hand Experience Opening UFB Direct HYSA

We uncovered some impressive features when opening our account with UFB Direct:

• Strong security features: After just 10 minutes of inactivity, we had to complete a CAPTCHA (“I am not a robot” test) and two-factor authentication to log into our account. 
• Custom alerts: We had the option to set up phone alerts for things such as statement availability or a low balance. This is not only convenient but also allows us to take quick action if there’s suspicious activity.
• Versatile phone service: While some banks have moved almost exclusively to online support, UFB Direct offers a variety of services over the phone, including wire transfers.

We also observed a few noteworthy limitations:

• Delayed information change process: Personal information can’t be edited for the first 30 days after the account is opened, which can be inconvenient if you need to update details such as a change of address.
• Several steps to link external accounts: Linking outside bank accounts to our UFB Direct account requires multiple steps, unlike our experience with some competitors we tested out.
• Sparse main dashboard: The main dashboard lacks some of the features we’d expect to see, such as our APY and statement details.

Pros & Cons

Pros One of the highest rates available for savings accounts Free access to 91,000 ATMs No account fees No minimum balance or minimum deposit requirements Cons Only one branch, located in San Diego Sparse user dashboard when logged in

Milli High-Yield Savings Account

Best for Tracking Spending

4.6

Minimum Deposit None Savings APY 4.75% Bonus N/A

Why We Like it

We like Milli best for its “Jars” feature that allows savings account holders to earmark their money for up to five financial goals. Along with this feature comes the detailed spending insights that categorize your spending, helping you to visualize your habits and build a better budget.

Our First-Hand Experience Opening a Milli HYSA

We found that Milli was one of the most complicated accounts to set up. And because it’s app-only and doesn’t allow you to manage your account through the website, the user experience isn’t the best.

But Milli has its benefits. Here are a few positive takeaways:

• Innovative budgeting tools free with account: Milli allows you to split funds into customizable “jars.” It also has detailed spending insights that list your purchases based on the merchant and category and whether it was under $10.
• Visibility on interest earned: Milli shows you the daily interest that has accrued even before the funds hit your account, giving you insight into your savings’ growth.
• Comprehensive FAQ: Milli’s app provides an extensive FAQ document, which could answer many of the questions you might have.

Source: MarketWatch Guides user testing.

Here’s what we didn’t particularly like about opening a savings account with Milli:

• App only: Milli’s high-yield savings account is entirely app-based, meaning you must apply for an account and manage it entirely on a mobile device.
• Limited customer service: Milli only offers support via chat and email. There’s no customer service phone number listed.
• No check deposits: Unlike the other providers we listed here, Milli doesn’t have an option to deposit checks. Your only options are direct deposit and bank transfers.
• Slow transfers: Milli states that it can take up to five business days for a transfer to hit your account, which was our experience with our opening deposit.

Pros & Cons

Pros No account fees No minimum opening deposit or minimum balance requirements No monthly withdrawal limits Innovative budgeting tools Cons No ATM access or option to deposit cash No customer service by phone Can take up to five business days for transfers App-only service

Zynlo Bank Tomorrow Savings

Best for Roundup Savings Tools

4.5

Minimum Deposit $10 Savings APY 5.00% Bonus N/A

Why We Like It

We like this account for its easy opening process and cool savings features. Requiring the least amount of information, this account was one of the most streamlined to open. Also, you can create your savings goals right on your home screen and participate in automatic rounding from your checking account to deposit your spare change into savings. 

Our First-Hand Experience Opening a Zynlo Bank HYSA

We liked Zynlo Bank’s account opening process and its savings goals feature.

• Savings goals feature: Zynlo Bank allows you to create savings goals directly on your account’s home screen. This feature, called folders, tracks your progress and provides updates for motivation.
• Streamlined account opening process: Among the banks we tested, Zynlo was one that required the least amount of information to open an account.
• Low minimum deposit requirement: We only needed to deposit $10 to get started.

Source: Zynlobank.com via MarketWatch Guides user testing.

Zynlo fell short for us in website performance and customer service availability. Here’s our take:

• Lackluster website performance: We found the website to be slow, and it was difficult to navigate linking a new external account.
• No chat support: Zynlo doesn’t offer chat for customer service. FAQs are all that’s available online, but there’s phone support 24/7.
• No wire transfers: You’ll only be able to make deposits via mobile check deposit and electronic transfers.

Savings Tool

With Zynlo’s Roundup Savings, customers with both high-yield checking and savings accounts from Zynlo can also have their debit card purchases rounded up to the next dollar, with the change going to their savings. Zynlo fully matches the rounded amount in the first 100 days after you open an account.

You can also continue to receive the full match if you keep a $5,000 minimum average daily balance in your checking account. You’ll receive a 25% match if your balance is lower.

Zynlo is an FDIC-insured online-only bank that provides services through PeoplesBank.

Pros & Cons

Pros Competitive APY Low minimum opening deposit Matches some savings when paired with a checking account No account fees or minimum balance Cons No physical branches Doesn’t accept cash deposits No wire transfers

Synchrony High-Yield Savings Account

Best for Linking Outside Bank Accounts

4.5

Minimum Deposit None Savings APY 4.75% Bonus N/A

Why We Like It

Synchrony also has a smooth account opening process, and efficiency is high on our list of likes. Not to mention, setting up recurring deposits and linking other bank accounts is virtually effortless. And, like some of the other banks on our list, this one has no minimum deposit, minimum balance or monthly fees. But the best part is that you can make the debit card free to use out of network since the bank reimburses up to $5 of ATM fees per statement cycle. 

Our First-Hand Experience Opening a Synchrony HYSA

Synchrony Bank stood out to us for its speedy account opening process and its rate transparency. Here’s what we observed: 

• Efficient account opening process: It only took us about five minutes to open a Synchrony account. This was one of the quickest processes among the banks we tested.
• Transparency: Synchrony Bank provides clear and upfront details about its savings account’s APY and the tiers for its rewards program.
• Seamless account integration: We found it easy to set up recurring deposits and link to an outside bank account.
• Accessibility: Synchrony’s application allows you to decline providing a phone number if you have a hearing or speech disability.

Source: Synchrony.com via MarketWatch Guides user testing.

However, the following things may present problems for some users:

• Difficulty with customer service: It was challenging to find the bank’s phone number on the website. Then, it was cumbersome to get through seven voice prompts to reach a customer service representative.
• Limited wire transfer options: You can only complete wire transfers by phone, making it fairly inconvenient for those who like to complete their transactions online.

Pros & Cons

Pros Competitive APY compared to other high-yield savings accounts Optional ATM card Reimburses up to $5 in third-party ATM fees per statement cycle No minimum deposit, minimum balance or monthly fees Cons Limit of six withdrawals per month via checks, automatic or telephone transfers or purchases on your ATM card No physical branches Doesn’t offer checking accounts

EverBank (Formerly TIAA Bank) High-Yield Savings Account

Best for Fast Deposits

4.5

Minimum Deposit None Savings APY 5.05% Bonus N/A

Why We Like It

A few of the banks on our list have budgeting tools, and we found EverBank’s to be arguably the best. These tools allow you to link your bill payment accounts, categorize your spending, and even run reports to see where your money’s going. 

Our First-Hand Experience Opening an EverBank HYSA

We liked EverBank for its swift deposit speeds and handy budgeting tools, but our researchers found the application process frustrating and had multiple errors.

Here are our positive findings:

• Fast processing of deposits: EverBank impressed us by making deposits available within just one day.
• Robust budgeting tools: You can link your bill payment accounts to your EverBank savings account to set up budget categories and run spending reports.
• Online account closure: Unlike some competitors, EverBank lets you close your account online instead of by calling.

Source: Everbank.com via MarketWatch Guides user testing.

Here’s the problem we faced:

• Clunky website: We had issues getting through the account application process without errors. It took us three attempts to get past the form section. Also, we were often redirected to TIAA’s website. (TIAA’s banking segment became EverBank when it was sold in 2023.)

Pros & Cons

Pros APY is more than 10 times the national average No account maintenance fees or minimum balance requirements No minimum opening deposit Mobile check deposit available Cons Limited physical presence Cash deposits only available at the bank’s nine Florida branches

Upgrade High-Yield Savings

Best for Easy Application Process

4.5

Minimum Deposit None Savings APY 5.21% Bonus N/A

Why We Like It

We like Upgrade for its quick application process – just five minutes and only seven steps. They also offer several other products, including personal loans, that not all online banks have.

Our First-Hand Experience Opening an Upgrade HYSA

The fintech company Upgrade offered a quick and streamlined application process compared with other banks we’ve reviewed.

• Fast application process: We had an easy experience completing Upgrade’s application. It required minimal steps and personal information compared to the other financial institutions we opened accounts with. 

However, if you’ve recently moved, you may have to wait to open an Upgrade savings account. 

• Rejected due to recent address change: We’re unable to detail the complete experience with Upgrade because our team member was denied an account due to their recent address change.

Pros & Cons

Pros Competitive APY as long as there’s at least a $1,000 daily closing balance No monthly fees No minimum opening deposit Offers other financial products, including checking accounts Cons $1,000 minimum balance required to earn interest No cash deposits or ATM access Joint accounts not available

*APYs (Annual Percentage Yields) accurate as of June 26, 2024

Top High-Yield Savings Account Rates Today

Below are the banks with the highest APYs on their high-yield savings accounts as of June 28, 2024. These products can have stricter minimum deposit requirements or geographic limitations. This data is sourced daily by Curinos.

High-Yield Savings Account Trends

High-yield savings accounts are deposit accounts with much higher interest rates than standard savings accounts. They’re most commonly found with online banks and credit unions that have lower overhead costs, allowing these financial institutions to offer better deposit rates.

Another key feature of most high-yield savings accounts is their variable APY, which means the interest rate can fluctuate with the market. As of May 2024, the Fed has yet to decrease interest rates as it waits for inflation to trend down toward its 2% target. If the Fed indeed cuts rates in the second half of the year, as expected, interest rates for savings accounts will also likely fall.

Below are APYs from six top banks offering a high-yield savings account:

“Be wary of teaser introductory rates from less-established institutions; oftentimes their interest rates will plummet after a set number of months after the initial deposit.”

- Thomas Schulte CFP, partner and director of financial planning at Napier Financial.

High-yield savings accounts can also be a useful part of a broader investment strategy, said experts we spoke with, because they offer a way to keep a portion of your money accessible while still earning a return.

They can be used alongside other investments, such as retirement accounts like an IRA or 401(k), a college savings fund (529 account), stocks and bonds. “Consider housing additional savings in certificates of deposit or investing in stocks, bonds, ETFs or mutual funds, where your money has the potential to grow your wealth even more,” Rob Williams, managing director of wealth management at Charles Schwab, said.

>> Related: Learn more about the average saving account interest rate

What Makes the Best High-Yield Savings Accounts?

A high-yield savings account is a savings account with a significantly higher interest rate than your average account. This means your money grows faster so you can get a boost for your financial goals. 

But what makes the best high-yield account? Consider these other features:

1. Competitive APY: The rate your money earns annually is a big part of what makes a high-yield savings account so appealing. The higher the APY, the faster your money grows.
2. Accessibility: Make sure the bank you choose offers convenient ways to access your cash, such as in-network ATMs or quick fund transfers.
3. Low fees: Nothing kills your earnings faster than fees. The best accounts don’t have a monthly maintenance fee or other hidden charges.
4. Dependable customer service: Make sure you can access an agent during convenient times. Look for chat, email and phone support and excellent customer reviews.
5. Low or no minimum balance: Many accounts on our list don’t require you to keep a minimum balance to get the best rates, but check that carefully before you commit.
6. Transparency: If you have to sleuth out a bank’s terms and conditions to understand what you’re getting, you might want to look elsewhere or ask a lot of questions so you know exactly what you’re getting into.
7. Stellar reputation: Look for a bank with a reputable brand name. It’s best to entrust your savings to a company that has stood the test of time and earned the trust of its customers.
8. Long track record: A strong rate history of above-average APY is a good indication that the account’s APY is likely to remain attractive into the future.  It’s time-consuming to switch bank accounts, so you’ll want to make sure you’re not falling for a teaser rate – and that your account is likely to keep its attractive rate of return.

Ask an Expert

 Brandon Renfro

Ph.D., CFP, RICP, EA

“High-yield savings accounts offer a good combination of yield and accessibility that allows you to earn a decent rate on your short-term savings. However, understand that the rate[s] on high-yield savings accounts can adjust quickly, so they may not be appropriate for longer-term savings.”

>> Related: What is a high-yield savings account?

Our First-Hand Customer Experience

The Marketwatch Guides rating methodology presents a single rating to help you sort through more than 100 major banks’ offerings.  The methodology heavily emphasizes the financial return of a high-yield savings account.  While we consider many factors, the four most important factors are all financially-related: (1) the annual percentage yield; (2) bank fees; (3) minimum opening deposit; and (4) sign-up bonuses.  

Depending on your personal situation, these factors may be more or less important to you.  

Dana Wallace, the Controller of a growth equity firm, said, “I want a minimum level of APY.  After that I want ease, ease, ease.  I don’t have time to resolve customer service issues.”  

Katie Welch, a stay-at-home mom with four young children said, “Rate matters a lot, but so does the ability to do everything from my phone.  I always have background noise and need to be able to use messaging to resolve issues or better yet, not have issues and just get everything done in the app.”  

The Marketwatch Guides team assembled a small group of consumers to review and comment on our methodology.  We heard numerous questions about the customer experience such as: “Is it easy to reach customer service?  Can I access my funds quickly?  Is the digital banking experience intuitive?”  

To answer these questions, the Marketwatch Guides team did something no other review website has done -- we opened accounts at nine of the highest-rated providers.  We deposited more than $5,000 across these banks to learn what goes into setting up an account, accessing your funds and dealing with customer service issues.  Each bank had at least 4.00% APY and none had more than a $10 minimum deposit.  Beyond these two criteria, we tested 41 different factors and summarized these tests into four factors: 

• Time Taken to Open Account: We timed how long it took to open an account, cataloged the number of steps and assessed how long it took to complete funding.
• Ease of transferring money out: We assessed the number of steps to transfer funds, whether the bank integrated with Zelle and the number of steps to send a wire.
• Digital customer service: We simulated customer service questions and used live chat, app-based messaging and email to seek a resolution.
• Phone-based customer service: We simulated customer service questions and called the bank’s customer service phone number to seek a resolution.

Below were a few highlights -- and lowlights -- from our experience with each of these banks, quoted directly from our team members' experiences.

Online Banking vs. Traditional Banking: High-Yield Savings Accounts

Most of the high-yield savings accounts offering the best rates are from banks and credit unions that operate exclusively online. Online banks are generally able to offer higher APYs than brick-and-mortar banks because they don’t have the overhead costs associated with branches and their staff. 

While traditional brick-and-mortar banks don’t tend to offer high savings account rates, there are exceptions. For example, the Citi Accelerate Savings account has an APY over 4%* and no minimum opening deposit. It has a $4.50 monthly service fee, but there are options for getting the fee waived.

Another traditional bank with a high-yield savings account is PNC Bank, which also offers an APY above 4%*. PNC doesn’t require a minimum opening deposit, and it doesn’t charge monthly maintenance fees.

“Oftentimes, long-time, loyal customers at traditional financial institutions pay more for loans and earn less on savings than new customers,” Alia Dudum, millennial money expert at LendingClub, told MarketWatch Guides. “If you have money sitting idly, consider switching to a digital bank.”

Online Banks vs. Brick-and-Mortar Banks

>> Related: Learn more about the best online banks

Why You Should Get a High-Yield Savings Account

High-yield savings accounts can be beneficial for a broad range of customers, but they may be particularly well suited for savers with certain objectives:

• Maximize return on money you may need to access: Long-term investments (such as stocks) will have highly uncertain short-term returns. A savings account offers less total return, but substantially lower risk (as long as the bank is insured by the FDIC or NCUA).  If you know you will need to access the money in a shorter timeframe, savings accounts protect your principal.  
• Build an emergency fund to guard against the unexpected: If your car breaks down or you have a medical emergency, a high-yield savings account has both easy access for such a time and competitive rates to grow your money.
• Avoid fees or forfeited interest from Certificates of Deposit: If you’re saving for a goal such as purchasing a new home or wedding, a high-yield savings account can give you a higher APY than traditional savings accounts and let you withdraw money when you want, unlike typical CDs which can have stiff penalties if you withdraw funds before maturity.

“If you’re just starting to save for short-term goals or to establish an emergency fund, a savings account might be a good bet. It also makes sense if you’re planning to make a big purchase — such as a refrigerator, vacation or down payment on a car — within a year or so."

- Mary Hines Droesch, head of Consumer and Small Business Products at Bank of America

How Much Does a High-Yield Savings Account Earn?

While many financial institutions offer 4% to 5% APYs (or higher) on high-yield savings accounts, our recent consumer banking survey shows 62% of Americans earn less than 3% in interest on their savings or money market accounts.

Keeping your savings in a high-yield savings account can make a big difference in the long run. The chart below shows how much you can earn in interest over five years holding $10,000 in a traditional savings account compared to a high-yield savings account.

Because they give you a higher return, high-yield savings accounts are better than regular savings accounts for lowering the impact of inflation on your deposits. As the Fed has raised the federal funds rate in an attempt to reduce inflation, APYs on high-yield savings accounts have generally gone up.

A low-interest savings account typically offers APYs that may not keep pace with the rate of inflation, so the purchasing power of your money typically decreases over time. On top of providing better rates, high-yield savings accounts often don’t have monthly maintenance fees or minimum balance requirements.

High-Yield Savings Account Calculator

Use our savings account calculator to see exactly how much you can earn with a high-yield savings account.

Alternatives to High-Yield Savings Accounts

Because high-yield savings accounts can have limitations, such as limited physical access and variable APYs, some customers prefer alternative ways to save. 

Comparison of Deposit Accounts

There are many ways to invest your savings and while a high-yield savings account may work for you, here are some other options to consider:

>> Related: Read about savings accounts vs. money market accounts

Our Recap of the Best High-Yield Savings Account

• SoFi Bank Review: Best Checking and Savings Account Combo
• Bask Bank Review: Best for Quick Account Set-Up Process
• Discover Savings Account Rates: Best Customer Service
• UFB Direct Savings Account Rates: Best for ATM Access
• Milli Savings Account Rates: Best for Tracking Spending
• Zynlo Bank Review: Best for Roundup Savings Tools
• Synchrony Bank Review: Best for Linking Outside Bank Accounts
• EverBank Review: Best for Fast Deposits
• Upgrade Savings Account Rates: Best for Easy Application Process

Expert Tips and Insights

Heather Bono, Ph.D.

Chair of Accounting and Finance, University of West Georgia

See answers

Read bio

What impact do factors like inflation and monetary policy have on the returns of high-yield savings accounts?

Outside factors, like inflation and market conditions, cause fluctuations in the interest rates of high-yield savings accounts, just like those for traditional savings accounts. For example, during good economic times when consumers are increasing their spending and banks need to attract deposits, rates are likely to increase so that the banks have access to funds to loan. Currently, average rates of high-yield savings accounts are 4% to 5%, which are much higher than those for traditional accounts, around 0.47%.

At what stage in a person’s life would you recommend they get a high-yield savings account?

The earlier an individual starts saving, the better. The younger an individual is, the longer they have for their savings to grow. Parents can obtain accounts for their minor children to help them start saving. The FDIC or NCUA insures deposits like conventional savings accounts, which protects your deposits up to $250,000 per account. The FDIC and NCUA provide a list of banks or credit unions with this insurance on their websites.

Are there any other savings vehicles or accounts that individuals should consider?

Various savings vehicles are available, but they are not one-size-fits-all. Individuals should consider their time to save, their risk tolerance, and other factors related to their finances, such as their current debt levels, in addition to their savings goals (vacation, college, house, etc.). For example, an individual might consider using certificates of deposit (CDs) to increase their savings, which have much higher interest rates than a traditional savings account. However, these vehicles have specified maturity times (3 months to 10 years), which an individual must save or incur early withdrawal penalties.

Dr. Heather Bono is the chairwoman and associate professor of finance in the accounting and finance department at the University of West Georgia. She has taught business statistics, consumer economics, microeconomics, personal finance, corporate finance and investments courses. Her research interests include real estate finance and economics, personal finance and student success.

Dr. Stephen Gray, D.B.A

Assistant Professor of Finance, Western Illinois University

See answers

Read bio

What impact do factors like inflation and monetary policy have on the returns of high-yield savings accounts?

Returns on high-yield savings accounts are primarily influenced by inflation, the effects of which are seen when the Federal Reserve adjusts the federal funds rate up to reflect an increase in inflation, or down to indicate decreasing inflation.  Changes in the economy, either positive or negative, can also impact the returns of high-yield savings accounts.  A final dynamic that can affect returns is a financial institution's demand for loanable deposits; online banks may offer higher rates to attract more deposits to achieve a greater market presence, while brick-and-mortar banks may offer higher savings rates to obtain loanable deposits.

At what stage in a person’s life would you recommend they get a high-yield savings account?

A high-yield savings account is appropriate for any age. Even though reasons for opening a high-yield savings account may differ by age, the need for this type of account can be considered universal.

Are there any other savings vehicles or accounts that individuals should consider?

A primary consideration when determining the type of savings account for various savings goals is time horizon.  Short-term savings goals (e.g., vacation, down payment on a home or car) necessitate that attention be given to liquidity of funds and preservation of capital, providing support for the use of high-yield savings accounts.  Long-term savings goals (e.g., retirement) compel individuals to look for savings vehicles that will not only achieve returns that exceed inflation, but that result in growth of capital.  Investments to consider for long-term savings goals include stocks, bonds, mutual funds and exchange-traded funds.

Dr. Stephen Gray is an assistant professor of finance in the department of accounting, finance, economics, and decision sciences at Western Illinois University.  His teaching areas are personal finance, real estate, futures and options markets and portfolio management.  Steve has been actively involved in the ownership and management of several small businesses.  Steve earned his doctorate of business administration (DBA) in 2017 from the University of Wisconsin-Whitewater, an MBA in 1997 from Western Illinois University, and a bachelor’s degree in agriculture education in 1984, also from Western Illinois University.

Bryce Palar, D.B.A

Visiting Assistant Professor of Business, Augustana College

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When are high-yield savings accounts worthwhile?

To have a significant impact in the short term, the average individual would need five-figures just in savings to make these products worthwhile, in my opinion. Short-term high-yield saving accounts are more of a feel-good product for most customers out there.

At what stage in a person’s life would you recommend they get a high-yield savings account?

Personally, high-yield savings accounts are not something I would encourage unless customers were able to commit at least $10,000 to the savings account and were able to leave it there with no concern. It may also be something to consider if the money contributed to this type of account was expected to be used within 12 to 24 months.

Are there any other savings vehicles or accounts that individuals should consider?

When I think of people needing to save money, earning money from saving is secondary. First, individuals need to have the discipline to save. This is hard for most.  If you are a disciplined saver, then you can consider several products to make your money work for you. These would include CDs, IRAs, and of course, high-yield savings accounts, if you were to stay within the traditional banking realm. In order to maximize dollars earned on savings vehicles one needs to be able to set money aside and have the ability to leave it alone for a specified time, no matter which of the avenues you choose.

Bryce Palar is a visiting assistant professor of business at Augustana College. As a faculty member, he strives to help students tell the story of business and grow their confidence as decision-makers. He teaches several business, accounting and economics courses, and his research interests include ethics in financial decision-making and strategic competitiveness. He earned his earned his doctorate of business administration (DBA) from St. Ambrose University.

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