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High-yield savings accounts have proliferated in recent years amid a rise in online banks and fintechs competing for business against traditional banks, giving consumers a wide range of choices to grow their savings in a hurry. Show
High-yield savings accounts can offer better interest rates than regular savings accounts — in some cases more than 10 times the current average annual percentage yield (APY) of 0.46%. With that kind of return, it pays to scout out the best high-yield savings accounts to ensure you’re not leaving money on the table. Methodology Our team of experts analyzed hundreds of data points and then used data-driven methodology and thorough fact-checking to come up with the best high-yield savings accounts. We heavily emphasized APY because maximizing earnings is the most important feature of high-yield savings accounts. You can . Why is now a good time to open a high-yield savings account?
UFB Direct High Yield SavingsBest for customer ratings![](https://www.cnn.com/cnn-underscored/money/images/uploads/2023/11/09204543/ufb-direct.png?width=1000&fit=cover&format=webp 038;fit=cover&format=webp)Why we picked it UFB Direct is an online bank owned by Axos Bank, which means it has a large, FDIC-insured financial institution behind it. The UFB Direct High Yield Savings Account offers an APY of 5.25% across all balance tiers. It also scored high customer ratings from Trustpilot, Google app and Apple app, though it does only have one physical branch. Pros
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Who should use it UFB Direct is a good option if you want one of the highest savings-account APYs in the industry and are comfortable with online banking. Varo Savings AccountBest for monthly fees![](https://www.cnn.com/cnn-underscored/money/images/uploads/2023/11/09055838/varo-usat.png?width=1000&fit=cover&format=webp 038;fit=cover&format=webp)Why we picked it Varo is a digital-only bank with more than 3 million customers that boasts one of the best high-yield savings account rates in the business. Its Varo Savings Account offers an APY of 5.00% on balances of up to $5,000 and 3.00% APY on the rest. You’ll have to set up direct deposits of at least $1,000 monthly to get the highest interest rate. Customers also have access to the Varo Believe card, a secured charge card designed to help you raise your credit score. You may also qualify for quick cash advances of up to $250 (Varo charges a sliding flat fee depending on how much you borrow.) Pros
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Who should use it If you have up to a few thousand dollars to save and you want a high APY. Varo seems tailored to younger bank customers who enjoy the digital banking experience, want a high APY and need to build their credit scores. Laurel Road High Yield Savings® accountBest for full banking experience![](https://www.cnn.com/cnn-underscored/money/images/uploads/2023/10/18151038/laurel-road-e1699611657330.png?width=1000&fit=cover&format=webp 038;fit=cover&format=webp)Why we picked it Laurel Road is an FDIC-insured digital banking platform owned by KeyBank, which acquired the brand in 2019. Because Laurel Road is affiliated with a larger banking company, it has financial might at its disposal that some online banks lack. It also has a wider lineup of products, including a checking account, credit card and loans. The Laurel Road High Yield Savings Account offers a 5.00% APY on all balances — interest compounds daily and is paid out monthly. Pros
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Who should use it Laurel Road is a good option for consumers who want a full banking experience to go with their high-yield savings account. Popular Direct High-yield Savings AccountBest for high APY![](https://www.cnn.com/cnn-underscored/money/images/uploads/2023/11/08133946/popular-direct.png?width=1000&fit=cover&format=webp 038;fit=cover&format=webp)Why we picked it Popular Direct is another digital banking brand of a larger company — in its case, Popular Bank, the US banking subsidiary of publicly traded Popular, Inc. — meaning it has the financial backing of a major financial firm. The Popular Direct High-yield Savings Account offers a 5.40% APY, which ranks it among the best in the industry. It’s worth noting that it does require a $100 minimum deposit to open an account. Pros
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Who should use it This account is all about the high APY on all balances, making it a good choice if you want to build your savings in a hurry. Popular Direct also offers high-yield CDs. Bask Bank Interest Savings AccountBest for no minimum deposit![](https://www.cnn.com/cnn-underscored/money/images/uploads/2023/11/09060104/bask-bank-usat-e1706509047548.png?width=1000&fit=cover&format=webp 038;fit=cover&format=webp)Why we picked it Bask Bank has a long history with digital banking, laying claim to being the first online-only savings bank in the US when it launched through Texas Capital Bank in 1999. The Bask Bank Interest Savings Account offers a 5.10% APY and is FDIC-insured. Customers also have access to a mileage savings account and CDs that can be linked, however, there is no checking account option. Pros
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Who should use it Bask Bank is a good choice for consumers who prefer digital banking and want a wider range of savings options than those offered by other online banks. TAB Bank High Yield SavingsBest for range of products![](https://www.cnn.com/cnn-underscored/money/images/uploads/2023/10/18151253/tab-bank-e1706509373619.png?width=1000&fit=cover&format=webp 038;fit=cover&format=webp)Why we picked it TAB Bank is an online bank that started operations in 1998 as Transportation Alliance Bank. Today it offers a full suite of products and services for consumers and businesses, including checking and savings accounts, insurance and loans. Its high-yield savings account offers a 5.27% APY on all balances with no minimum deposit to open and no monthly service fees, though there is no in-person banking option. Pros
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Who should use it TAB Bank’s high APY should appeal to customers who want a good return on their money along with access to other products not found at many online-only banks. First Foundation Online Savings AccountBest for branch access![](https://www.cnn.com/cnn-underscored/money/images/uploads/2023/11/08135342/first-foundation.png?width=1000&fit=cover&format=webp 038;fit=cover&format=webp)Why we picked it First Foundation is a full-service bank with a wide lineup of personal and business accounts, about $13 billion in bank assets and 31 branch locations scattered among five states: California, Florida, Hawaii, Nevada and Texas. This sets it apart from the online-only banks on this list. The First Foundation Online Savings Account offers a 5.00% APY and is FDIC-insured, though you do need to deposit a minimum of $1,000 to open an account. Pros
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Who should use it Although consumers nationally can sign up for First Foundation’s online savings account, it’s an especially good choice if you live in its branch service area and want access to in-person banking. Salem Five Direct eOne SavingsBest for large balances![](https://www.cnn.com/cnn-underscored/money/images/uploads/2023/11/08135809/salem-fiv.png?width=1000&fit=cover&format=webp 038;fit=cover&format=webp)Why we picked it Salem Five Direct is a digital banking unit of Salem Five, a financial services company that offers a full lineup of banking, loan, insurance, investment and wealth management services. The Salem Five Direct eOne Savings account offers a 5.01% APY on all balances up to $1 million and also gives you access to the bank’s many other products, though you need to deposit at least $10 to open an account. Pros
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Who should use it Salem Five has more than 25 branches in Massachusetts, so the Salem Five Direct eOne Savings account is ideal for people in its service area. It’s also a good choice if you value a full-service banking experience. Synchrony Bank High Yield SavingsBest for app ratings![](https://www.cnn.com/cnn-underscored/money/images/uploads/2023/11/09060953/synchrony-logo-usat-e1706508614819.png?width=1000&fit=cover&format=webp 038;fit=cover&format=webp)Why we picked it Synchrony Bank is one of the bigger and better-known online banks. It’s owned by Synchrony, a Fortune 500 company that’s been around for more than 80 years, so there’s a strong and established company behind the account. Synchrony gets decent marks on its Google app (4.6) and iOS app (4.8) and its high-yield savings account offers an APY of 4.75%, which is somewhat lower than other banks on this list. Pros
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Who should use it This account works well if you already have a relationship with Synchrony and want a competitive APY to go along with the other services. Betterment Cash ReserveBest for promotional APY![](https://www.cnn.com/cnn-underscored/money/images/uploads/2023/11/08140908/Betterment-_logo-removebg-preview.png?width=1000&fit=cover&format=webp 038;fit=cover&format=webp)Why we picked it Betterment is perhaps best known as a digital investment company with a lineup that includes IRAs, 401(k)s, crypto investing and socially responsible investing. Its banking products include a checking account and high-yield Cash Reserve account. The Cash Reserve account’s base variable rate is 4.75%, but Betterment also has a promotion offering an extra 0.75% APY for the rest of the year when you open your first account, pushing the APY to 5.50%. The promotional rate is subject to a qualifying deposit. Pros
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Who should use it This is a good option if you need investment services and also want access to a high-yield savings account. As with most accounts on this list, you should be comfortable with digital banking. Our picks at a glanceWhat are high-yield savings accounts?They’re savings accounts that give you much better-than-average interest rates on your money, resulting in high APYs. It’s worth noting that there are no meaningful differences between a savings account and a high-yield savings account, so you should look at the account names interchangeably when comparing APYs. As of January 2024, the average APY for all types of US savings accounts was 0.47%, according to the FDIC. However several high-yield savings accounts offered rates of 5.00% and higher. Many of the best rates are offered by online-only banks because they have much lower operating costs than traditional, brick-and-mortar banks, allowing them to offer high APYs to attract customers. Why should you consider high-yield savings accounts?High-yield savings accounts are a great place to put money that you want to grow quickly but also can access anytime. While regular savings accounts are easy to access, they generally don’t earn as much as high-yield savings accounts. You can get a better return on your money than you would with other types of deposit accounts, allowing you to grow your wealth a lot faster. High-yield savings accounts are also worth considering if you are saving toward a specific goal such as an emergency fund or down payment on a new home. You not only earn high interest — you also have a single, convenient place to add to your savings. Keep in mind that high-yield savings account interest rates fluctuate based on market conditions. Take advantage of these high rates before they drop, which might happen later this year. What to consider when choosing a high-yield savings accountThe same basic rules apply to choosing a high-yield savings account that apply to any other bank account: It all comes down to your financial goals. Here are a few things to consider:
Online bank vs. traditional bank high-yield savings accountsThe main difference between online banks and traditional banks is that with the former, all of your business is conducted digitally, either on a website or app. With most traditional banks, you have the choice of banking online or in person at a branch. Some online banks are stand-alone startups with little more than a digital platform and a single account, while others are digital subsidiaries of larger banking companies. Because online banks don’t have to invest large sums of money in labor, real estate or physical operations, they can afford to offer higher interest rates and lower fees than traditional banks. The downside is that you might not find as many products at online banks and you don’t have the option of in-person service. Traditional banks are convenient and much easier to move money around, especially if you open a savings account where you also have your main checking account. But you risk losing out on earning more money. The one thing you want to make sure of when considering an online bank is whether it is insured by the FDIC. The FDIC covers most online banks but it’s important to check before opening an account, which you can do with the FDIC’s BankFind tool. Pros and cons of high-yield savings accountsNo bank account offers everything, and that’s the case with high-yield savings accounts as well. Here’s a look at some of their strengths and weaknesses: Pros
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Maximizing your high-yield savings accountTo get the most out of your high-yield savings account, the first thing you want to do is ensure the rate is competitive with the best in the industry. This will require comparing different accounts at different banks. Next, double-check the fine print regarding how long the rate lasts, what the minimum deposit and balance requirements are, how often interest is compounded and whether your deposits are FDIC-insured. When it comes to fees, you want to make sure you pay as little as possible. Here are some different fees to keep an eye on:
How to open a high-yield savings accountThe specific process of opening a high-yield savings account depends on the account and the bank. You can usually find the requirements and instructions on the app or website. Here’s what most banks require when opening a new account:
In most cases, you’ll have the option of choosing how to receive account statements, set up account alerts and automatic deposits and link your high-yield savings account to other accounts. Alternatives to high-yield savings accountsThe purpose of high-yield savings accounts is to give you the biggest return possible with a savings account, but it’s not always the best option. For example, when the Federal Reserve raises interest rates (like it did in 2022 and 2023) you can get bond yields that are competitive with the best high-yield savings accounts — with the bonus of having the rates locked in for a set period. Similarly, some money market accounts offer rates that are competitive with high-yield savings accounts while also letting you write checks. This is also the case with certain high-yield checking accounts. CDs are a good alternative to high-yield savings accounts. They’re best for folks who have a large lump-sum deposit and want to lock in a rate before the Fed makes changes to the interest rate. Once you’ve got your CD rate, it can stay that way until the terms are up. This might be a better option if you don’t want to lose out on optimal yields this year. MethodologyCNN Underscored Money analyzed 65 savings accounts from 54 financial institutions to come up with the rankings for the best high-yield savings accounts. This included accounts from a mix of traditional banks, online banks and credit unions that are available nationally. We ranked each account on nine data points across six categories. Here are the categories we analyzed and how we weighted each: APY (70%)The amount of interest you earn on your savings is the most important part of choosing a high-yield savings account for many consumers, so we weighted this highest of any factor. Fees (10%)Fees are a critical factor to consider with your high-yield savings account because they can eat away at any interest earnings, especially if an account has a high monthly maintenance fee. Customer experience (5%)While you’ll likely deal with your bank less often with a high-yield savings account than you will with a checking account, it’s still important to have a bank that’s trustworthy and easy to reach when you need help. Digital experience (5%)You’ll want a bank with a usable app and plenty of online features so that it’s easy to bank from anywhere. Minimum deposit requirement (5%)A high minimum deposit makes a savings account less accessible, so we rewarded accounts that more people can use. Minimum balance to avoid a monthly fee (5%)A high minimum balance to avoid monthly fees limits flexibility with your savings account because you’re limited in how much you can transfer or use for unexpected expenses without being penalized by fees. We also considered several other factors like welcome bonuses and tier structures to earn APY. Frequently asked questions (FAQs) One difference is that high-yield savings accounts can pay higher interest rates than regular savings accounts, but this isn’t always true and the two accounts are very similar. You might also see lower fees at high-yield savings accounts offered by online banks. As long as the account is offered by an FDIC member institution, it protects your money like any other FDIC-insured account. This means your savings are insured up to $250,000 per depositor, per insured bank, for each account ownership category. If your high-yield savings account is offered by a credit union, your money is insured for up to $250,000 per depositor by the NCUA. Under the federal government’s Regulation D, all savings accounts let you withdraw or transfer money up to six times a month without paying any fees. Although this regulation was indefinitely suspended during the Covid-19 pandemic, many banks still impose the six-withdrawal limit. Some banks might charge a fee if you close a savings account soon after opening it, but it’s up to the individual bank. There is no specific industry regulation imposing penalties for closing a high-yield savings account. What are some current events going on right now?Australian woman injured in shark attack while swimming: Reports. ... . Sec. ... . White House vows response for three soldiers killed. ... . Biden: U.S. 'shall respond' after drone strike kills troops in Jordan. ... . A fascinating look at Amelia Earhart. ... . What the ICJ's Gaza order means for Israel-Hamas war.. What's the top news in the world today?World News. Analysis-Europe's Angry Farmers Fuel Backlash Against EU Ahead of Elections. ... . Philippines Plans to Buy Submarines to Defend Sovereignty in South China Sea - Senior Official. ... . Pakistan Election Panel Summons Meeting on Rising Poll Violence. ... . Fatigue Sets in for Japan Earthquake Survivors Facing Long Road to Recovery.. |