If you’re like the 81% of Americans we surveyed who currently earn less than 4% APY on their savings accounts, it may be time to consider another option.
For our list of the best high-yield savings accounts, we at the MarketWatch Guides team researched more than 154 banks and credit unions and reviewed the 126 of them that offer savings accounts. We also opened our own accounts with all nine of our top picks to provide you with first-hand experience on the application process and managing your account. We evaluated various factors, including rates, requirements and user experience to help you decide where to put your money.
- With a 4.90% rate, Veritex Community Bank offers the highest APY high-yield savings account.
- To save you time from having to review bank and credit union websites, we reviewed account terms from 126 banks and conducted first-hand research by opening up accounts at the top eight 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.
- In both our MarketWatch Guides rating and user experience ranking, SoFi Bank came out on top and pays up to 4.00% APY with generous bonuses.
The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.
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Learn more about the best savings accounts.
Best High-Yield Savings Accounts of December 2024
We researched 126 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 eight 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). We were further supported on this article by a four-person research team, which included a certified public accountant, a masters of business administration, and a private equity investor. Read more of our findings on each bank below.
The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.
SoFi High-Yield Savings Account
Best Checking and Savings Account Combo
Why We Like It
Why We Picked SoFi: 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.
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 checking account to your savings. There’s also SoFi Vaults, which allows you to break up your money into various savings goals like setting up an emergency fund or saving for a down payment for a home.
SoFi’s account is also fee-free like 60% of the banks we reviewed, offers Zelle, doesn’t limit the number of withdrawals you can make and has some great free budgeting tools.
Our First-Hand Experience Opening a SoFi High-Yield Savings Account
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:
- 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.
SoFi Bank Promotions
SoFi offers the largest sign-up bonus of our top picks for new clients. Through December 31, 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.
Another awesome bonus: if you’re a Rakuten customer and you open the SoFi account through your Rakuten link on a web browser and directly deposit $500 or more within 45 days, you’ll earn an additional $250.
Pros & Cons
What Reviewers Say About SoFi
Most Praised Features
Customer service: Several positive reviews mentioned SoFi’s quality customer service, particularly its helpful and friendly support staff.
Easy account setup process: SoFi’s account setup process was praised for its simplicity and speed. Users mentioned that it was straightforward and user-friendly.
Quick funding: Many reviewers praised how quick SoFi’s funding process was for their loans, noting they received their funds quickly after loan approval.
Most Common Complaints
Miscommunication and delays: Two common frustrations threading negative reviews were slow response times and lack of clear communication from SoFi, especially with account or loan issues.
Problems with account management: Several negative reviews highlighted account management issues such as difficulties with account closures and funds being held.
Customer service issues: Some customers experienced poor customer service, particularly with resolving disputes and handling account concerns.
We reached out to SoFi for comment on its negative customer reviews but did not receive a response.
*To provide these insights, we compiled and analyzed 5,305 reviews from user-review sites such as Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.
Bask Bank Interest Savings Account
Best for Quick Account Set-up Process
Why We Like It
Why We Picked Bask Bank: 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. Bask’s extremely competitive rate beats 95% of the banks we reviewed. Account holders can only make deposits via mobile check deposit, automated clearing house (ACH) transfer or wire transfer. The account has no monthly fees and there’s no minimum deposit requirement to open an account.
Our First-Hand Experience Opening a Bask Bank High-Yield Savings Account
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
What Reviewers Say About Bask Bank
Most Praised Features
Competitive interest rates: Customers routinely praised the high interest rates offered, particularly on savings accounts and CDs.
Reliable money transfers: Once accounts are set up, customers noted that transfers between Bask Bank and other accounts are smooth and quick.
No-frills banking: Some reviewers mentioned that Bask provided a simple banking experience, with consistently high interest and no complicated services.
Most Common Complaints
Poor customer service: A common complaint was difficulty reaching customer support, further complicated by long wait times and no resolution to issues.
Cumbersome account setup and verification process: Many reviewers cited a difficult and frustrating experience setting up accounts, especially with biometric verification (such as uploading a driver’s license or using face recognition).
Account access issues: A few reviewers said they had issues with their accounts being locked or disabled with no explanation, which often required extensive efforts to restore.
We reached out to Bask Bank for comment on its negative customer reviews but did not receive a response.
*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.
Discover High-Yield Savings Account
Best Customer Service
UFB Direct Portfolio Savings Account
Best for ATM Access
Why We Like It
Why We Picked UFB Direct: 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 two-thirds of the banks we reviewed, it still offers 24/7 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. One note: its Portfolio Savings is part of a hybrid checking and savings account bundle you’ll need to open at the same time. You can also earn several APY “boosts” for qualifying direct deposits of $5,000 or more, savings balances of $10,000 or more and 10 or more debit card transactions.
Our First-Hand Experience Opening UFB Direct High-Yield Savings Account
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.
Source: UFBdirect.com via MarketWatch Guides user testing
- 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
What Reviewers Say About UFB Direct
Most Praised Features
Competitive interest rates on savings accounts: Many reviewers appreciated UFB Direct’s competitive high-yield savings rates, particularly in comparison to other online banks.
Efficient money transfers: People liked that, once set up, money transfers — including mobile deposits and ACH transfers — worked smoothly and without delays.
Customer service responsiveness via chat or email: A few reviewers highlighted UFB Direct’s prompt and helpful online customer service (especially through chat or email) in resolving issues.
Most Common Complaints
Technical issues with the website and mobile app: Numerous people reported problems accessing their accounts, listing frequent glitches, login failures and poor user experience as some of the most common issues.
Customer service difficulties: Reviewers frequently cited frustration with UFB Direct’s customer service, commonly complaining about long wait times, limited assistance and language barriers with representatives.
Delayed fund transfers: Several negative reviews criticized how long it took UFB Direct to process their transfers, with some users noting that deposits took several days to post, causing frustration and financial inconvenience.
We reached out to UFB Direct for comment on its negative customer reviews but did not receive a response.
*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.
Zynlo Bank Tomorrow Savings Account
Best for Roundup Savings Tools
Why We Like It
Why We Picked Zynlo: Zynlo is an FDIC-insured, online-only bank that provides services through PeoplesBank. 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.
Also, when you use your debit card, in addition to rounding up your purchases, Zynlo will match the roundup and transfer the match to savings. The website says this can help you earn an additional 4.11% return on your money.
Our First-Hand Experience Opening a Zynlo Bank High-Yield Savings Account
We liked Zynlo Bank’s account opening process and its savings goals feature, but it does have a $10 minimum required opening deposit — a higher minimum than about half the banks we reviewed.
- 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.
Zynlo Promotions
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.
Pros & Cons
What Customers Say About Zynlo Bank
Most Praised Features
Interest rates: Several positive reviews mentioned Zynlo’s high interest rates for its savings accounts.
User-friendliness: Reviewers praised the convenience and simplicity of Zynlo’s mobile app and online banking systems.
Most Common Complaints
Account opening: One complaint cited difficulty opening accounts due to system verification issues.
Software limitations: Some reviews mentioned software issues that would not allow a manual account opening unless another person was added to a joint account.
*Zynlo Bank had only received three reviews at the time of publishing. Weigh this small sample size accordingly before making a decision.
We reached out to Zynlo for comment on its negative customer reviews but the bank declined to be quoted.
*Reviews aggregated from Trustpilot. Read our customer review methodology to learn more.
Synchrony Bank High-Yield Savings Account
Best for Linking Outside Bank Accounts
Why We Like It
Why We Picked Synchrony: Synchrony 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 only a quarter of the banks we researched, 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 High-Yield Savings Account
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
What Reviewers Say About Synchrony Bank
Most Praised Features
Helpful customer service in specific cases: A common praise for Synchrony was how helpful customer service was in resolving account issues.
High-Interest Rates on Savings Accounts: Many customers appreciate the higher interest rates on savings accounts compared to other banks, making it a favorable choice for those seeking good returns.
Easy Transfers Between Accounts: Customers also mention the convenience of transferring funds between their Synchrony accounts and external accounts, praising the bank’s seamless process.
Most Common Complaints
Delayed or inconsistent customer support: Many customers shared their frustration with the bank’s slow response times and poor customer service when trying to resolve account issues, often leading to long wait times and concerns that went unresolved.
Account freezes without notice: Several customers reported sudden account freezes with no clear reason or prior notification. Customers additionally had difficulty accessing funds, even after completing verification steps.
We reached out to Synchrony for comment on its negative customer reviews but did not receive a response.
*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.
EverBank (Formerly TIAA Bank) Performance Savings Account
Best for Fast Deposits
Why We Like It
Why We Picked EverBank: 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 High-Yield Savings Account
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
What Reviewers Say About EverBank
Most Praised Features
Competitive interest rates: Several reviewers mentioned the higher-than-average interest rates offered on CDs and savings accounts.
Online banking features: Positive reviews highlighted useful online banking tools for depositing funds and recording transactions.
Easy to use: A few long-time users noted they were happy with the simplicity of the bank’s platform before recent changes.
Most Common Complaints
Customer service issues: The majority of negative reviews cited poor customer service with long wait times, unhelpful representatives and unresolved disputes.
Account access problems: Many reviewers said they had difficulties logging into their accounts and some reported inexplicably locked accounts or missing funds.
Issues with new platform rollout: Numerous negative reviews criticized EverBank’s new platform (after transitioning from TIAA), citing frequent technical issues with both the mobile app and website, and difficulty overall with the migration process.
We reached out to EverBank for comment on its negative customer reviews but the bank declined to be quoted.
*Reviews aggregated from Trustpilot, the Better Business Bureau (BBB), Consumer Affairs, WalletHub and Best Company. Read our customer review methodology to learn more.
Upgrade High-Yield Savings Account
Best for Easy Application Process
*APYs (Annual Percentage Yields) accurate as of November 21, 2024
Summary: The Best High-Yield Savings Accounts
The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.
|
Star Rating
APY*
4.00%**
Balance Needed to Earn Top APY
Some direct deposit requirements**
Bonus Offer
Up to $300
What Stands Out
Seamlessly combines with an excellent checking account
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|
Star Rating
APY*
4.01%
Balance Needed to Earn Top APY
$0
Bonus Offer
None
What Stands Out
Offers a huge APY boost if you open a checking account as well
|
|
Star Rating
APY*
4.14%
Balance Needed to Earn Top APY
$1,000 minimum daily closing balance
Bonus Offer
None
What Stands Out
Real-time alerts can notify you if bills are due or if your balance is low
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|
Star Rating
APY*
4.40%
Balance Needed to Earn Top APY
$0
Bonus Offer
None
What Stands Out
Bill pay guarantee that reimburses your late fees if payment doesn’t hit deadlines
|
|
Star Rating
APY*
4.50%
Balance Needed to Earn Top APY
$0
Bonus Offer
None
What Stands Out
Earns a high rate of interest on all balances
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*APYs (Annual Percentage Yields) accurate as of November 21, 2024
**with direct deposit or $5,000 in qualifying monthly deposits, or 1.20% without either
Jump to our methodology to learn how we rated these savings accounts.
High-Yield Savings Accounts: In the News
On Nov. 7, the Federal Reserve reduced the federal funds rate by 0.25% to a range of 4.50% to 4.75%. Stephen Kates, a certified financial planner and principal analyst for Annuity.org, suggests this cut might not immediately mean cuts in rates for some high-yield savings products. The next Fed meeting is Dec. 17-18.
“The direct impact of this 0.25% rate cut on fixed-income securities will likely be overshadowed by the recent election results,” Kates said. “Under normal circumstances, this cut would be expected to directly impact the rates offered on short-term and cash-equivalent investments by lowering the prevailing rates. However, actual changes may deviate from this expectation based on shifting investor expectations.”
This delay of banks following rate cuts could allow savers to continue earning competitive rates for high-yield savings accounts a bit longer.
“The strength of current yields offers savers more time to decide how to act, but yields will not defy the Fed’s cuts forever,” Kates said.
Top High-Yield Savings Account Rates Today
Here are the very highest rates in the country for high-yield savings accounts. While the following banks have the highest APYs as of December 29, 2024, they may not make it into our top picks list because of some limitations: they can have stricter minimum deposit requirements, geographic restrictions or membership requirements. Their rates may also change frequently, meaning they may only offer a high rate for a limited time period. This data is sourced daily by Curinos.
| Bank | APY | One Week Trend |
|---|---|---|
| Veritex Community Bank | 4.90% | APY is steady compared to last week |
| Wilson Bank & Trust | 5.00% | APY is steady compared to last week |
| Great Southern Bank | 5.00% | APY is steady compared to last week |
| Newtek Bank | 4.90% | APY is a decrease compared to last week |
| Northern Bank Direct | 4.75% | APY is a decrease compared to last week |
| LendingClub Bank | 4.75% | APY is a decrease compared to last week |
| BrioDirect | 4.75% | APY is steady compared to last week |
| Blue Foundry Bank | 4.75% | APY is steady compared to last week |
High-Yield Savings Account Rate 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:
Is Now the Best Time to Open a HYSA?
A key feature of most high-yield savings accounts is their variable APY, which means the interest rate can fluctuate with the market. While the last two years have brought much higher APYs for these accounts due to the Federal Reserve’s interest rate hikes, rates will almost inevitably go down in the future when rates are lowered. As of August 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 latter part of the year, as expected, interest rates for savings accounts will also likely fall.
“It is likely that rates will start falling before the end of the year when the Fed finally makes its move to cut rates. Any consumers who want to lock in long-term rates at 4%+ will need to plan ahead with other fixed income products like CDs, bonds or fixed annuities.”
>> 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:
- 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.
- Accessibility: Make sure the bank you choose offers convenient ways to access your cash, such as in-network ATMs or quick fund transfers.
- Low fees: Nothing kills your earnings faster than fees. The best accounts don’t have a monthly maintenance fee or other hidden charges.
- Dependable customer service: Make sure you can access an agent during convenient times. Look for chat, email and phone support and excellent customer reviews.
- 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.
- 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.
- 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.
- 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.
>> Related: What is a high-yield savings account?
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.”
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. 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:
| Factor | High-Yield Savings Accounts | Money Market Accounts | CDs | Savings Bonds | Checking Accounts |
|---|---|---|---|---|---|
| Accessibility | May offer ATM access or only electronic transfers | May offer check-writing capabilities and ATM access | Generally don’t allow access to funds until the term ends | No access for the first year | Unlimited transactions, providing easy access to funds |
| APY | Variable rates that are usually higher than checking rates | Competitive, variable rates similar to high-yield savings accounts | Can offer competitive (often fixed) rates that tend to be higher than savings and money market rates | Typically competitive rates, but fluctuate every 6 months based on inflation | Typically don't earn interest |
| Minimum requirements | May require minimum balances or opening deposits | Often require substantial balances or initial deposits | May require high initial deposits | Bonds are purchased for $25 - $10,000 | May require minimum balances or opening deposits |
| Risk | Generally low risk, but returns may vary | Generally low risk, but returns may vary | Low risk, with returns that are usually guaranteed upon maturity | Some risk: credit risk - the issuer could default; interest rate risk, market risk | Minimal risk, but they don’t tend to earn interest |
| Withdrawal restrictions | May have monthly withdrawal limits | May have monthly withdrawal limits | Typically charge a penalty for withdrawing funds before the term ends | Can be withdrawn after 1 year | Generally allow unlimited transactions |
>> Related: Read about savings accounts vs. money market accounts
High-Yield Savings Account FAQs
The amount of interest you can earn on $10,000 in a high-yield savings account will depend on the account’s APY and how often interest is compounded. For example, if the APY is 5.25% for the entire year and interest is compounded daily, you’ll earn about $525 in a year.
APYs on savings accounts are variable and can change without notice. The amount and frequency of change varies depending on the bank’s policies, competition and external economic factors such as the Fed’s changes to its benchmark rates.
Your bank sets the limit on the number of withdrawals you can make from your high-yield savings account each month. That number could be six times per month, since that used to be the federal limit. If you exceed your savings account’s withdrawal limit, you’ll likely be charged fees.
Yes, interest earned from a high-yield savings account is typically considered taxable income and must be reported when you file your taxes. If you earn at least $10 in interest in a calendar year, your bank will likely issue you Form 1099-INT, which details the amount of interest you received.
You’re unlikely to find an FDIC-insured savings product that will provide a 7% interest rate. However, many online CDs and high-yield savings accounts offer APYs in the range of 4% to 5% or more.
The best high-yield savings accounts right now offer above 5% APY. These are generally from online banks and credit unions.
The earnings for a high-yield savings account depend on the account’s APY and the time frame you’re considering. At 4.35% APY, $50,000 would earn about $2,176 in one year, assuming the rate doesn’t change and interest is compounded daily.
Your money is safe if your financial institution is insured by the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA). The FDIC – for banks – and the NCUA – for credit unions – insure member financial institutions up to $250,000 per depositor.
Our Methodology
To determine the best high-yield savings accounts in the U.S., the MarketWatch Guides team analyzed data across 126 of the largest and most prominent financial institutions offering these accounts. We compared banks, credit unions and fintechs across five factors, weighting them across the percentages listed:
- Rates (40%): Annual percentage yields (APY) on high-yield savings accounts vary widely across banks. More than a third of the institutions we considered offer an APY of 4% or higher.
- Monthly fees (20%): While many institutions won’t charge a monthly fee for holding a high-yield savings account with them, others do. The highest monthly fee across banks and credit unions is about $10, which can significantly cut into interest earned on your savings.
- Required opening deposits (15%): Nearly 70% of the banks we looked at require a minimum deposit. The standard minimum is $50, but at a select number of banks, minimum deposits exceed $1,000.
- Sign-up and referral bonuses (15%): Similar to popular credit card offers, some banks offer sign-up and referral bonuses. Top bonuses exceed $100.
- Account features (10%): Financial institutions that invest in helpful savings tools, such as sub-savings accounts or “buckets” that help consumers save towards specific goals, earn extra points.
We ranked each bank in every metric and using the factor weightings determined our final list. Our ranking of the best high-yield savings accounts is made up of the eight banks, credit unions and fintech companies that were top scorers. We opened accounts with each to bring you first-hand accounts of the process. Read our comprehensive methodology here.
Customer Review Methodology
To provide in-depth perspective on how reviewers feel overall about banks that offer high-yield savings accounts, the MarketWatch Guides team compiled 5,305 reviews from publicly available user-review sites such as Trustpilot, the Better Business Bureau, Consumer Affairs, WalletHub and Best Company.
We then categorized each review and analyzed the sentiment to determine whether it was positive or negative. With this data, we highlighted the most praised features and most common complaints for each bank.
Our Sources
We relied on several additional sources to research and write this article outside of financial institutions websites and MarketWatch user testing.
Data Sources:
- FDIC: National Rates and Rate Caps
- The Fed - CA 21-3: Suspension of Regulation D Examination Procedures (federalreserve.gov)
Experts Cited:
- Heather Bono, Ph.D., Chief of Accounting and Finance, University of West Georgia
- Dr. Stephen Gray, D.B.A. Assistant Professor of Finance, Western Illinois University
- Stephen Kates, CFP®, Principal Financial Analyst for Annuity.org
- Bryce Palar, D.B.A, Visiting Assistant Professor of Business, Augustine College
*Rates accurate as of November 21, 2024. Rates may vary by location. APYs based on Houston for Citi and PNC Bank.
**Data accurate at time of publication
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.
