Best High-Yield Savings Accounts for 2024

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Saving money is great, but earning interest on that cash is even better. While historically low interest rates are great when you need a loan, they don’t help much when you want to put your money to work. However, there are still several acceptable high-yield savings accounts currently available that offer high-interest yields.

They vary in terms of fees, balance minimums, and extra perks, so you have plenty of options available. Review each one carefully before picking the right one to house your hard-earned money.

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Best High-Yield Savings Accounts with No Minimum Balance Requirements

A lot of high-yield savings accounts require you to make a minimum deposit to open an account. But not everyone wants to start their savings account with a ton of cash, especially for those just beginning to save.

Luckily, you can still access high-yield savings accounts without worrying about any type of starting deposit. Here are our top picks that don’t require any cash upfront.

SoFi

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SoFi offers a high-yield savings account with a lucrative rate of up to 4.60% APY. You could also be eligible to receive a sign-up bonus of up to $300 when you set up direct deposit.

With SoFi, there’s no need to worry about any hidden costs since they don’t impose any account fees. What’s more, they even offer no-fee overdraft coverage, making banking with them even more affordable.

Unlike many traditional banks, SoFi also provides a 2-day-early-paycheck feature, meaning you get your salary in your account faster. This is a clear advantage over many competitors in the market.

As for safety, SoFi ensures your money is secure. They offer up to $2M of FDIC insurance through a network of participating banks, considerably higher than the standard $250,000 offered by many institutions.

UFB Direct

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UFB Direct is part of Axos Bank and offers high-interest money market accounts and savings accounts for consumers. Because UFB Direct doesn’t have to pay for a brick-and-mortar location, they can offer much more generous savings rates.

The UFB Preferred Savings Account comes with 5.25% APY, and there are no account minimums or monthly fees to worry about.

Additionally, you don’t have to maintain a specific balance to earn the highest interest rate, as all savings balances earn the same rate.

Your savings account includes a complimentary debit card, and you can transfer funds between accounts without fees. You can also withdraw funds at over 91,000 ATM locations without incurring fees.

Although UFB Direct is entirely online, customer support is available 24/7 for assistance with your accounts. The UFB Direct app is also available, enabling you to manage your money on the go.

Bread Savings

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Bread Savings (formerly Comenity Direct) offers a high-interest savings account as well as CDs. The savings account comes with a generous APY of 5.00%.

You only need $100 to open the savings account, and your account will earn interest on up to $10 million. With Bread Savings, there are no hidden fees and no monthly fees.

You’ll receive free online statements, free ACH transfers, and free incoming wire transfers. And you can deposit your money using the free mobile app. And when you bank with Bread Savings, your money is FDIC insured.

Ally

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We like Ally because there’s no minimum balance required to earn interest. Additionally, the 4.25% annual percentage yield (APY) allows for relatively swift accrual of interest compared to other online savings accounts that have a much lower APY.

There’s no monthly maintenance fee, and you can receive wire transfers at no cost. In addition, you can transfer funds to any other bank account up to six times per statement cycle (after that it costs $10 per transaction per federal law).

If you’re only making a few withdrawals each month, Ally is a great choice.

If you make frequent check deposits, you can use the Ally eCheck Deposit app on your smartphone to take a picture.

Then, just mail in the paper check using a postage-paid envelope. This is good because you won’t have to worry about finding a branch or ATM each time you need to make a check deposit.

Like many other online-only banks, Ally doesn’t charge overdraft fees.

American Express National Bank

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American Express offers a high-yield savings account with a generous rate of 4.30% APY. Additionally, there’s no need to open new accounts with American Express, since your existing accounts will link seamlessly.

There are no monthly fees and no minimum account balance required to get started. And like many of the other banks on this list, American Express National Bank comes with FDIC insurance on accounts up to $250,000.

You will be limited to six transactions per billing cycle. If you exceed your transaction requests, the online bank may deny your request to withdraw more money.

Alliant Credit Union

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Alliant Credit Union offers a savings account with a rate of 3.10% APY. You only need a $5 minimum opening deposit, and the online application process is easy.

With Alliant, you’ll have access to both mobile and online banking, and there’s no monthly fee if you choose to receive eStatements. Plus, Alliant gives you access to thousands of ATMs nationwide.

The minimum balance requirement is $100 to keep earning interest with your savings account. And per federal regulations, you’ll be limited to six withdrawals per month.

But all in all, Alliant Credit Union is a great option for anyone looking for a flexible high-yield savings account.

Barclays

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The Barclays Online Savings account offers a competitive annual percentage yield (APY) of 4.35%.

This account provides a secure, convenient, and accessible way to manage your funds with 24/7 online access. You can easily transfer funds to and from other banks online, and set up direct deposit to make saving simple and effortless.

Additionally, there are no monthly maintenance fees and no minimum balance requirement to open this account.

To help you reach your savings goals, the Barclays Online Savings account also provides useful tools to track and manage your savings.

Chime

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Chime® is an online-only banking option that offers a checking and high-yield savings account to customers.

With Chime, you get the ease of online banking, plus all of your accounts are FDIC-insured, so you know your money is safe.

Chime’s savings account8 offers a rate of 2.00%3 APY, which is much higher than what you’d get with a traditional savings account.

Best of all, the bank never charges any hidden fees, like maintenance fees or overdraft fees.

Your savings account is easy to track and manage with the Chime app. And you can deposit more money using the online deposit feature.

Marcus: By Goldman Sachs

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When you hear the name Goldman Sachs, you might think of Wall Street investment bankers, but the company also operates GS Bank for individuals.

A Marcus online savings account offers a competitive 4.30% APY and has no minimum balance needed to earn that interest rate. There is, however, a maximum balance of $1,000,000 you may keep in your account.

To make a deposit, you have four options. You can send an electronic transfer from any bank, send a wire transfer, mail a check, or enroll in direct deposit from your employer or Social Security.

When you’re ready to withdraw funds, you can log onto your account online and request an electronic transfer or call the toll-free phone number to take out money. You can do all of this while enjoying no transaction fees and no monthly service fee.

Citizens Access

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Citizens Access offers competitive savings rates on both savings accounts and CDs. The savings account comes with a generous rate of 4.50% APY, and there are no hidden fees.

However, you will need a minimum balance of $5,000 to open an account, which is much higher than what other banks require. If you’re unable to maintain a $5,000 balance, your interest will drop to 0.25% APY.

Citizens Access doesn’t offer any brick-and-mortar branches, but there are multiple ways to contact the bank for additional support. However, there’s no mobile app, and the bank doesn’t give you the option to do wire transfers.

MySavingsDirect

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MySavingsDirect is an online division of Emigrant Bank, which has been around since 1850 and is one of the oldest savings banks in New York City. Its online presence now makes it available to consumers throughout the country.

With an APY of 4.35%, the account comes with no fees and no minimum deposits.

MySavingsDirect is an online bank, so you need to be comfortable with an electronic process if you’re considering a bank account.

When you first open the account with a deposit, you can either mail in a check or electronically transfer funds online. However, once it is set up, you can only use the electronic funds transfer to deposit or withdraw funds.

It can take two to four days of processing time. Withdrawals, on the other hand, are held for five business days before they’re available (which is done for security reasons).

Therefore, be sure to plan your need for funds well in advance so you don’t run the risk of being late with any payments.

Best High-Yield Savings Accounts with Minimum Balance Requirements

Some of the best high-yield savings accounts do require an initial deposit to open your account. But most of them aren’t extremely high thresholds and don’t create a barrier for many people.

If you’ve already started saving money, check out these savings accounts with low opening balances.

CIT Bank

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CIT Bank has recently become one of the top online banks for high interest savings accounts.

The CIT Bank Platinum savings account comes with a 5.00% APY on savings balances of $5,000 or more, and drops to 0.25% APY on balances less than $5,000.

There is no monthly maintenance fee, so you’re truly making money on cash you deposit into your account.

Savings account holders get access to all of CIT Bank’s online banking features and also can maximize earnings through daily compounding interest.

Salem Five Direct

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Salem Five Direct’s eOne Savings currently offers a 5.01% APY for new customers. It only takes a $100 deposit to open your online savings account to get this highly competitive rate.

There’s no minimum balance requirement or monthly fee to pay, but this high interest rate only applies to balances up to $1,000,000.

Thereafter, your account is automatically switched to a Statement Savings Account that only earns an APY of 0.05%. K keep an eye on high dollar balances so you don’t effectively cut your interest rate to nearly zero.

They do charge fees in certain situations that you’ll want to educate yourself on so you don’t rack up unnecessary fines.

For example, if you don’t elect to enroll in electronic account statements within the first 30 days of opening your account, you’ll be charged $2.75 each month for paper statements.

You might also incur fees for certain types of transfers performed outside the bank’s online system. It’s best to read all the details and fine print before making a decision to make sure your preferred banking habits don’t result in exorbitant fees.

Discover Bank

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Discover is known more as a credit card company. However, they offer a high-interest savings account that beats out most of its large-scale national peers. There’s no minimum deposit to get started or minimum daily balance requirement with their online savings account.

With a 4.30% APY, you can start earning fast. Interest is compounded daily and dispersed monthly. Plus, there is no monthly fee to worry about, so you truly get paid to keep your money in your Discover account.

A Discover savings account has a $30 insufficient funds fee, although it’s capped at just one fee per day. There’s also a $15 charge for each excessive withdrawal over the federal maximum of six per month. And a six-month stop payment costs $15.

If you have the cash to open a $500 savings account and prefer working with a large financial institution, then Discover Bank is definitely worth considering.

Aside from their rewards credit cards, Discover also has a checking account with cashback rewards for debit card purchases.

What is a high-yield savings account?

High-yield savings accounts, as the name suggests, are savings accounts that offer a higher interest rate than standard savings accounts. They are offered by banks and credit unions. Like traditional savings accounts, they are also insured. The Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA) provide this insurance. This coverage goes up to the legal limit, ensuring your money is safe.

How do high-yield savings accounts work?

The functioning of high-yield savings accounts is similar to that of regular savings accounts. You deposit money into the account, and the bank pays you interest on your balance. However, the key difference lies in the interest rate.

High-yield savings accounts offer significantly higher interest rates, often more than 20 times the national average of a standard savings account. This means that the money you deposit into a high-yield savings account will grow at a much faster pace.

The interest on these bank accounts is usually compounded daily or monthly and paid out monthly. The interest earned gets added to your initial deposit, forming a larger base on which future interest is calculated, thereby accelerating your savings growth.

Pros and Cons of High-Yield Savings Accounts

High-yield savings accounts offer a multitude of benefits but, like any financial product, they also come with a few potential drawbacks. Understanding these will help you make an informed decision about whether a high-yield savings account is the right fit for you.

Pros

  • Increased earnings: With their higher interest rates compared to traditional savings accounts, high-yield savings accounts help your money grow faster.
  • Safety: Deposits in high-yield savings accounts at FDIC or NCUA member institutions are insured up to the legal limit, reducing the risk of loss.
  • Accessibility: Unlike many investment options, you are permitted up to six withdrawals or deposits per month, providing a degree of liquidity.
  • Ease of use: Many online savings accounts, particularly those offered by online banks, offer user-friendly digital platforms and mobile access, simplifying account management.

Cons

  • Variable interest rates: The interest rates are variable and can fluctuate over time, potentially reducing the rate of return.
  • Minimum balance requirements: Some high-yield savings accounts require a minimum balance to earn the stated interest rate or avoid monthly fees, which could be a drawback for some customers.
  • Limited transactions: Federal regulations typically limit certain types of withdrawals and transfers to six per month. Exceeding this limit could result in fees or other penalties.
  • Potential for fees: Some high-yield savings accounts come with fees, such as maintenance fees or withdrawal fees, which could offset the benefits of the higher interest rate.
  • Less access than checking accounts: While a high-yield savings account provides more access than some investment vehicles, they offer less frequent access to funds than checking accounts.

How to Choose a High-Yield Savings Account

Here’s what to consider when choosing the best high-yield savings account for your needs:

  • Annual percentage yield: The most important factor in choosing a high-yield savings account is the annual percentage yield (APY). There are many savings accounts available with varying annual percentage yields. Make sure to compare rates and find the one that offers the highest rate for your particular needs.
  • Fees: Some savings accounts may have monthly maintenance fees associated with them. So, make sure to check for any potential account fees or other charges.
  • Accessibility: If you need to access your money quickly, you should look for a savings account with easy and convenient access. Consider whether you need to be able to access the funds online or if you need a physical bank location.
  • Minimum deposit and balance requirements: Some savings accounts require a minimum deposit to open or a minimum balance to avoid fees or earn the highest APY. Make sure you can meet these requirements without stretching your finances.
  • Digital access and mobile features: If you value being able to access and manage your account on the go, consider the digital features offered by the account. These may include mobile deposits, online transfers, digital customer service, and more.
  • Customer service: A quality customer service experience is important when considering any type of financial product. Look for a bank or credit union with good customer service ratings and reviews.

By considering these factors, you’ll be able to find the best high-yield savings account for your individual needs. Make sure to do your research and shop around for the best deal.

See also: Best 5% Interest Savings Accounts

Tips on Maximizing Your High-Yield Savings Account

A high-yield savings account offers more than a place to store your money—it provides an opportunity to significantly increase your savings through higher interest rates. To fully benefit from this financial tool, it’s important to grasp how to manage it effectively. Let’s explore some strategies that can help you optimize your high-yield savings account.

The Power of Automatic Transfers

One of the most effective ways of nurturing your high-yield savings account is by setting up automatic transfers. This can be a certain percentage of your paycheck or a fixed sum that moves from your checking account to your savings account regularly.

Automatic transfers take the guesswork and effort out of the saving process, effectively turning it into a seamless, automatic habit. This strategy not only ensures regular deposits into your account but also helps in maintaining a consistent account growth.

Dodging the Fees

While high-yield savings accounts are often marketed as ‘fee-free’, this is frequently contingent upon meeting certain requirements. These could include maintaining a minimum balance, making a limited number of withdrawals, or setting up direct deposits.

Understanding the fee structure of your high-yield savings account is key to avoiding unnecessary charges. Make sure you’re familiar with any potential fees and the requirements to evade them. Maintain your balance above the minimum, limit your transactions, and make use of online platforms over bank branches or ATMs whenever possible to avoid transaction fees.

Withdrawal Limits

Regulatory constraints usually limit the number of certain types of withdrawals or transfers from savings accounts to six per statement cycle. Exceeding this limit typically incurs a fee.

Keep in mind, however, that this limit generally doesn’t apply to in-person withdrawals (at a branch or ATM) and electronic transfers made to repay loans at the same bank. Being aware of these limits and planning your withdrawals accordingly can help you manage your savings more effectively.

Alternatives to High-Yield Savings Accounts

While high-yield savings accounts are a popular choice for many, there are several other financial products available that may better suit your specific needs. Here are some alternatives to consider:

1. Certificates of Deposit (CDs)

CDs are time deposit accounts offered by banks and credit unions. They often offer higher interest rates than savings accounts, but in exchange, you agree to leave your money deposited for a specific term, ranging from a few months to several years. If you withdraw your money before the term ends, you will usually face a penalty. CDs are best for funds you know you won’t need for a set period.

2. Money Market Accounts

A money market account is a type of savings account that often offers higher interest rates in exchange for higher minimum deposit and balance requirements. They sometimes come with check-writing privileges and a debit card, making them a bit more flexible than high-yield savings accounts. However, they also are subject to the six withdrawals per month limit.

3. Checking Accounts

While checking accounts don’t typically offer interest rates as high as high-yield savings accounts, they are designed for frequent transactions, making them ideal for everyday spending. Some checking accounts do offer interest, though rates are typically lower than what you’d get with a savings account.

4. Investment Accounts

Investment accounts, such as brokerage accounts, mutual funds, or retirement accounts, can potentially offer higher returns than high-yield savings accounts, particularly over the long term. However, they also come with a higher risk, and your capital can decrease as well as increase. These accounts are best for long-term goals and should be used in conjunction with, rather than instead of, secure savings methods.

5. Treasury Bonds and Bills

Treasury bonds, bills, and notes are low-risk investments backed by the U.S. government. While they may not offer as high a return as a high-yield savings account, they are virtually risk-free. They can be a viable option for conservative investors looking for a safe place to store money.

Frequently Asked Questions

How often are interest payments made?

Generally, interest payments are made on a monthly basis. However, this can vary depending on the financial institution and the terms of the account.

How often your interest is compounded depends on the bank. With some banks and credit unions, interest is compounded daily, while others do so monthly. The more frequent your interest compounds, the greater your return.

How often do high-yield savings rates change?

Savings rates can change frequently, depending on the financial institution offering the account and the current market conditions. In many cases, savings rates can change several times a year, or even more often than that.

Most financial institutions may also change their savings rates in response to changes in the Federal Reserve’s benchmark interest rate, which can happen several times a year.

Savings rates may also change in response to the type of account and the amount of money you’re keeping in the account. The more money you keep in the account, the more likely it is that the financial institution will offer you a higher rate of interest to keep it there.

Can I open a high-yield savings account if I already have a regular savings account?

Yes, you can open a high-yield savings account even if you already have a regular savings account. Many people maintain both types of accounts for different purposes – for instance, a regular savings account for short-term needs and a high-yield savings account for long-term savings goals.

Is my money safe in a high-yield savings account?

Yes, your money is generally safe in a high-yield savings account. The accounts are offered by banks and credit unions, which are regulated by federal law.

If these financial institutions are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), the money in your high-yield savings account is insured up to the legal limit per depositor. The limit is $250,000 per depositor, per insured bank, for each account ownership category.

Is the interest on a high-yield savings account taxable?

Yes, the interest earned on a high-yield savings account is typically subject to federal (and possibly state) taxes. Banks usually send a 1099-INT form if you earn more than $10 in interest in a year, and you’ll need to report this when you file your taxes.

Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.

3. The Annual Percentage Yield (“APY”) for the Chime Savings Account is variable and may change at any time. The disclosed APY is accurate as of May, 22, 2023. No minimum balance required. Must have $0.01 in savings to earn interest.

8. A Chime Checking Account is required to be eligible for a Savings Account.

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