Best High-Yield Savings Accounts Of January 2024 (2024)

We compared 73 online savings accounts at 53 nationally available banks and credit unions to find some of the best high-yield savings accounts available.

Best Online High-Interest Savings Rates

Annual percentage yield (APY) was a main factor, but not the only factor considered when building our list of the best accounts. Here’s a summary of our top accounts organized by the highest APY that one could get.

• Milli Savings Account: 5.50% APY
• UFB Secure Savings: Up to 5.25% APY
• Bread Savings High-Yield Savings Account: 5.15% APY
• Bask Interest Savings Account: 5.10% APY
• BMO Alto Online Savings Account: 5.10% APY
• M1 High-Yield Savings Account: Up to 5.00% APY
• Synchrony Bank High Yield Savings: 4.75% APY
• SoFi Checking and Savings Account: Up to 4.60% APY
• Citizens Access® Savings: 4.50% APY

See below to learn why we picked each account, including its pros and cons, and to access individual bank reviews.

Annual percentage yields (APYs) and account details are accurate as of December 22, 2023.

Milli Savings Account: Best for Separate Savings Goals

Milli’s savings account is best for those who are working toward multiple savings goals. With Milli Savings Jars, you can create and customize up to five different savings goals. Plus, you’ll earn one of the highest savings rates available.

Bask Interest Savings Account: Best for Simple High-Yield Savings

If you prioritize ease of use and high interest over an abundance of features, this account should be on your radar. Bask Bank’s Interest Savings account is a straightforward account with no monthly fees, no minimum balance requirements and a competitive interest rate on any balance.

M1 High-Yield Savings Account: Best for High Balances

M1’s High-Yield Savings Account is best for customers who plan to keep a high balance in their savings account. Typical FDIC insurance covers $250,000 per institution, but M1 offers up to $5 million in FDIC coverage through its network of insured institutions.

UFB Secure Savings: Best for Cash Withdrawals

UFB Secure Savings is best for customers who make a lot of cash withdrawals. While ATM cards aren’t common with savings accounts, UFB provides a complimentary card and access to over 91,000 fee-free ATMs.

Bread Savings High-Yield Savings Account: Best for Frequent Deposits

The Bread Savings High-Yield Savings Account is best for those who need to make frequent deposits into their savings accounts. While some banks put a limit on monthly deposits, Bread allows unlimited mobile check deposits and ACH transfers. Plus, there’s no fee for incoming wire transfers.

SoFi Checking and Savings: Best for Combined Checking and Savings

SoFi Checking and Savings is best for customers who do all their banking—from spending to saving money—in one account. Those who prefer the convenience of a single account will love the accessible checking features and the high-yield interest earnings.

Citizens Access Savings: Best for No Fees

Citizens Access Savings is best for those who want a no-fee savings account—period. Many online savings accounts forgo monthly fees but charge fees for excess transactions, ATM use or other services. Citizens Access has no fees or hidden costs, so you can be confident this is a truly free account.

Synchrony High Yield Savings: Best for ATM Reimbursem*nts

Synchrony High Yield Savings is the best high-yield savings account for ATM reimbursem*nts. Not only does the account come with an ATM card for convenient access to your funds, but Synchrony will reimburse up to $5 per month in out-of-network ATM fees.

BMO Alto Online Savings Account: Best for Unlimited Transfers and Withdrawals

BMO Alto’s Online Savings account is best for unlimited transfers and withdrawals. If you frequently move money in and out of savings or need unlimited access to your funds, this account may be a good fit.

The accounts on this list have some of the best APYs available. They also rank well according to our overall criteria for the Best Savings Accounts Of 2023.

To create a list of the best savings accounts, Forbes Advisor analyzed 73 online savings accounts at 53 financial institutions, including a mix of traditional brick-and-mortar banks, online banks, and credit unions. We ranked each account on 12 data points within the categories of APY, fees, minimum requirements, customer experience and digital experience. All of the accounts on our list are online-based accounts.

Here’s the weighting assigned to each category for high-yield savings accounts:

• APY: 70%
• Fees: 10%
• Digital experience: 5%
• Customer experience: 5%
• Minimum deposit requirement: 5%
• Minimum balance to avoid monthly: 5%

We also considered whether there were complex tier structures or requirements to earn the APY or other stipulations to earn the APY. Minimum deposit requirements of $10,000 or higher affected scores negatively, as did high minimum balance requirements to avoid fees. The savings account must be nationally available to appear on this list.

To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.

• High-Yield Savings Accounts Rates Today
• Are Savings Interest Rates Going Up?
• What Is a High-Yield Savings Account?
• How Do High-Yield Savings Accounts Work?
• High-Yield Savings Account Terms To Know
• Are High-Yield Savings Accounts Safe?
• Online Savings Accounts Fees
• How To Pick a High-Yield Savings Account
• Pros and Cons of High-Yield Savings Accounts
• How To Open a High-Yield Savings Account Online
• Best Ways To Use a High-Yield Savings Account
• Are High-Yield Savings Accounts Worth It?
• Alternatives to High-Yield Savings Accounts
• Recap: Best High-Yield Savings Accounts Of 2024
• Banks We Monitor

High-yield savings account rates were on a steady upward trend through 2022 and 2023. That’s largely due to the Federal Open Market Committee’s efforts to fight inflation by steadily increasing the federal funds rate, which is the interest rate at which banks lend money to one another overnight.

When the federal funds rate adjusts, banks typically follow suit and shift rates for savings and other deposit accounts accordingly. Rate hikes often translate to banks paying higher rates for deposit accounts. Throughout 2023, the national average savings rate steadily increased alongside the federal funds rate—from 0.33% in January to 0.46% in December, according to the FDIC.

However, rates are stabilizing and may even begin to fall in 2024. Federal Reserve rate cuts can trigger further reductions in savings account APYs.

A high-yield savings account is a type of savings account that typically offers higher interest rates than a traditional savings account. You can generally find high-yield savings accounts at online banks and credit unions. These financial institutions normally don’t carry the overhead costs or profit-margin requirements of a traditional brick-and-mortar bank, allowing them to pass those savings on to customers through higher rates and lower fees.

Interest rates vary based on several factors, but it’s not uncommon to find high-yield savings accounts that offer up to 4.00% APY or more. A high-yield savings account may earn as much as 10 times the national average rate on standard savings accounts.

A high-yield savings account works similarly to a traditional savings account. The primary difference is that high-yield savings accounts drastically outearn traditional savings accounts. Online banks, which typically have lower overhead costs, are more likely to offer high-yield savings accounts than traditional brick-and-mortar banks.

Both traditional and high-yield savings accounts keep your money safe while your balance earns interest. Some accounts have monthly fees or require a minimum balance to earn interest, but the best ones don’t. Generally, you can make withdrawals and deposits whenever you want, but some banks may limit your monthly transactions. Online banks may allow ATM withdrawals and cash deposits at third-party retailers—otherwise, you’re limited to electronic transactions.

When researching high-yield savings accounts, there are certain terms you’re likely to come across. Understanding what they mean can help you to find the right savings option.

• Annual percentage yield (APY). The annual percentage yield or APY on a savings account reflects the interest you could earn on your savings over the course of a year when compounding interest is factored into the equation.
• Compounding interest. Compounding interest is interest earned on your previously accrued interest. It’s calculated based on your principal deposits and the interest you earn as you go.
• High yield. High yield means that a savings account offers a higher-than-average interest rate.
• Minimum deposit requirement. A minimum deposit requirement for a high-yield savings account is the amount you’ll need to deposit to open the account. Depending on the bank, this may be as low as $1 or even $0.
• Monthly maintenance fee. A monthly maintenance fee is a fee certain banks charge you to keep your account open. The advantage of opening a high-yield savings account with an online bank is that they don’t usually charge monthly maintenance fees.
• Online bank. Online banks operate on the internet and typically do not have branches. Instead, you access your money via web browsers or mobile banking apps. Some online banks also offer ATM access.

High-yield savings accounts are generally considered to be safe places to keep your money. When you deposit money into a high-yield savings account, you’re keeping it at a bank that’s FDIC-insured or a credit union with NCUA insurance to protect your deposit.

In terms of security, banks and other financial institutions that offer high-yield savings accounts institute a number of measures to protect your personal and financial information. Those measures can include multifactor authentication, data encryption and secure data storage.

Can You Lose Money in a High-Yield Savings Account?

You can’t lose money in a savings account if you’re saving at an FDIC-insured bank or an insured credit union.

The FDIC insures accounts at member banks up to $250,000 per depositor, per account ownership type and per financial institution. The National Credit Union Administration (NCUA) extends similar coverage to deposit accounts at member credit unions.

If your bank or credit union fails and that institution is insured, then you can’t lose money in savings up to the allowed limits. Given the rarity of bank failures, there’s very little risk of ever losing money.

You may, however, lose some of the value of saving if interest rates are unable to keep pace with inflation. When inflation results in higher prices, your actual savings balance doesn’t change but that money loses some of its spending power.

Generally, online savings accounts have fewer and lower fees than traditional savings accounts. Many online savings accounts have no monthly maintenance fees or minimum account balance requirements.

Each of our picks for the best online savings accounts has no monthly maintenance fee (or has the option to waive the fee by signing up for e-statements). But that doesn’t mean these accounts are totally fee-free. They may charge for things like paper statements and excessive transactions. As with any account or financial product, it’s important to read the fine print to make sure you’re aware of any fees before opening an account.

Choosing the best high-yield savings account isn’t always obvious, so comparing accounts will help you find the best option. Here are some factors to consider before opening an account.

Interest Rate

Perhaps the most important factor when choosing a high-yield account is the interest rate. Earning a higher interest rate will help maximize your savings more quickly.

Deposit Requirements

Some accounts require a minimum opening deposit for a new account. You may also need to maintain a specific balance to earn interest or avoid monthly fees.

Account Fees

Fees can cancel out interest earned on your savings. Check the account’s fee schedule to determine if you’ll be charged a monthly service fee or other fees. Some banks will waive fees if you keep a certain amount in your account.

Compounding Frequency

Interest on a savings account can compound daily, weekly, monthly, quarterly or annually, depending on the bank. When interest compounds, you earn interest on your interest. Choosing an account that compounds more frequently can help you earn more interest over time.

Pros

• Higher interest rates than traditional savings accounts
• Lower or no fees
• User-friendly mobile platforms
• Unique savings tools

Cons

• In-person banking may not be an option
• Cash withdrawals and deposits may not be available
• May have requirements you must meet to earn the highest APY
• Interest rates are variable and can change at any time

You can open a high-yield savings account relatively quickly. Once you’ve found an account that matches your needs, you’ll need to fill out an online application. The bank may ask for this specific information to verify your identity during the application process:

• Name
• Address
• Email address
• Phone number
• Date of birth
• Social Security number
• Number from your driver’s license or other government-issued photo ID
• Funding source account information

If you’re opening a joint account, both parties will need to provide personal and financial information.

Once the account is approved, you can fund it using a linked bank account or other acceptable methods.

Because of their earning potential, high-yield savings accounts are excellent for reaching savings goals. Having a specific account for savings goals allows you to keep those funds separate from your everyday spending account. You can use a high-yield savings account to save for a variety of goals, including:

• An emergency fund
• Upcoming vacations
• A wedding
• Home renovations
• Home furnishings
• A down payment on a home
• A new car
• Educational expenses

High-yield savings accounts are ideal for short-term financial goals, but they’re not good for holding your retirement savings. A tax-advantaged retirement or investment account typically offers better returns and tax savings not found with high-yield savings accounts.

Large Expenses

High-yield savings accounts can be used to save for a variety of large expenses. Some of the goals you might save for include:

• A down payment on a home
• Home renovations or repairs
• A new car or recreational vehicle
• Wedding expenses
• New furniture

You could also use a high-yield account to hold your emergency fund. Emergency funds are generally best kept in an account that’s liquid and easily accessed, in case you need money quickly.

Education

A high-yield savings account is something you might consider if you want to set aside money for education expenses. Some of the expenses you could save for include:

• Private school tuition and fees for elementary, middle or high school students
• Extracurricular costs, such as band instruments, travel expenses for competitive sports or class trips
• College tuition and fees
• In-school living expenses, such as meals or rent

If you specifically want to save money for college, you might consider a 529 savings plan in place of a high-yield savings account. With a 529 account, you can invest money for college and withdraw it tax-free for qualified education expenses.

Vacation

High-yield savings accounts are also an attractive place to save money for vacations or travel. You might use a high-yield account to save for:

• Flights
• Hotel or resort stays
• Local transportation
• Meals
• Souvenirs
• Entry fees for attractions or experiences

You could use a travel rewards credit card to pay for those expenses and potentially earn some money back in the form of travel miles or points. However, if you end up carrying a balance month to month, your credit card’s APR could wipe out the value of any rewards you earn.

If you’d rather earn interest than pay it, you might be better off saving for vacation plans with a high-yield savings account instead.

A high-yield savings account is an effective savings vehicle if you have funds you want to set aside for short-term financial goals or needs. It’s not a replacement for a retirement or tax-advantaged investment account, but it’s a great option for certain savings goals.

For example, a high-yield savings account is a good place to park your emergency fund. You can access the funds easily, but they earn more interest than they would in a traditional savings account. On the other hand, it wouldn’t be worth keeping your kid’s college savings in a high-yield savings account if you have a decade or longer to invest.

A high-yield savings account isn’t the only place to keep your savings. There are some alternatives you might consider, including:

• Money market accounts
• Certificates of deposit
• Cash management accounts
• Investment accounts

High-Yield Savings vs. Money Market Account

Money market accounts are deposit accounts that combine features of checking and savings accounts. You might earn interest the same way you would with a savings account. But you may also be able to write checks from your account or make purchases using a linked debit card. These are features you typically don’t get with a savings account.

So, which is better, a money market account or high-yield savings?

The answer depends on what you need the account to do for you, how much you’re willing to pay for it and what kind of APY you’re hoping to earn. Money market accounts can offer more flexibility and access to your savings, though you still may be limited to a certain number of withdrawals and transfers per month. On the other hand, high-yield savings accounts could offer better interest rates.

High-Yield Savings vs. Certificates of Deposit (CD)

Certificates of deposit (CDs) are similar to savings accounts in that you earn interest on your balance. The key difference is that money you deposit into a CD is locked up for a specific time period, such as three months or one year. If you withdraw your savings before the CD matures, you could forfeit some or all of the interest earned.

The main benefits of CDs over high-yield savings accounts are higher rates and fixed earnings since your rate generally won’t fluctuate over the term of your CD. Though CDs allow you to lock in a rate for a specific period, the downside is it’s not as easy (or cheap) to access your money. For this reason, CDs make sense if you’re sure you won’t need to access your savings before the maturity date.

Other High-Yield Savings Account Alternatives

• CDs. The best CDs can pay excellent rates, but you have to lock your money in for a certain amount of time. If you withdraw your savings before the CD matures, you could forfeit some or all of the interest earned.
• Cash management accounts. Cash accounts are usually associated with taxable brokerage accounts, and these accounts are designed to hold money you plan to invest later or receive after selling investments you own. A cash account can function like a checking account and earn interest like a savings account, often at competitive rates.
• Investment accounts. These accounts are designed for investing in the financial markets. A brokerage account could yield a substantially better return than a savings account, but you risk losing your money.

Americans’ Considerations When Comparing Savings Accounts

A Forbes Advisor survey conducted by OnePoll asked participants which three features they consider the most important when shopping around for a new savings account.

Fees (65%) and interest rates (55%) were the top two concerns, followed by branch access (42%) and ATM access (35%).

This online survey of 1,000 Americans (18+) who have at least one bank (checking and/or savings) account was commissioned by Forbes Advisor and conducted by market research company OnePoll, in accordance with the Market Research Society’s code of conduct. Data was collected from November 9 to November 13, 2023. The margin of error is +/- 3.1 points with 95% confidence. This survey was overseen by the OnePoll research team, which is a member of the MRS and has corporate membership with the American Association for Public Opinion Research (AAPOR).

• Milli Savings Account: 5.50% APY
• UFB Secure Savings: Up to 5.25% APY
• Bread Savings High-Yield Savings Account: 5.15% APY
• Bask Interest Savings Account: 5.10% APY
• BMO Alto Online Savings Account: 5.10% APY
• M1 High-Yield Savings Account: Up to 5.00% APY
• Synchrony Bank High Yield Savings: 4.75% APY
• SoFi Checking and Savings Account: Up to 4.60% APY
• Citizens Access® Savings: 4.50% APY

Opening a high-yield savings account can be a good option if you’d like to keep your money in a secure place while earning a great rate. Comparing the best high-yield savings accounts at online banks, traditional banks and credit unions can help you to find an account that best fits your needs.

We included these institutions in our research for the best high-yield savings account rates: Affirm, Alliant Credit Union, Ally Bank, American Express, Axos Bank, Bank of America, Bank5 Connect, BankDirect, BankPurely, Barclays, Bask Bank, BrioDirect Banking, Capital One, Charles Schwab Bank, Chase, Chime®, CIBC Bank, CIT Bank, Citibank, Citizens Access, Colorado Federal Savings Bank, Bread Financial, Connexus Credit Union, Consumers Credit Union, Discover, Dollar Savings Direct, E*Trade Bank, Fitness Bank, FNBO Direct, HSBC, HSBC Direct, iGoBanking, Incredible Bank, Live Oak Bank, Marcus by Goldman Sachs, My eBanc, MySavingsDirect, Navy Federal Credit Union, nbkc Bank, PNC Bank, Popular Direct, Purepoint Financial, Quontic, Rising Bank, SalemFiveDirect, Sallie Mae Bank, SFGI Direct, SmartyPig Bank, Synchrony Bank, U.S. Bank, UFB Direct, Varo Bank and VIO Bank.

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