Everyone needs a high interest savings account. It doesn’t matter if you’re in the middle class or very wealthy – you need a place to store your emergency fund or short-term savings.
A high yield savings account allows your money to make money until you need it. They pay a much higher annual percentage rate than average (the average savings account pays just 0.42% APY) and don’t have early withdrawal penalties like CDs have.
So don’t stash your cash under a mattress earning nothing, put your money to work with the best high yield savings accounts listed below.
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13 Best High-Yield Savings Accounts
The following savings accounts offer the best interest rates with no fees. All banks listed here are FDIC insured and each credit union mentioned is covered by NCUA insurance, so if you’re looking for a bank account that earns you the highest yield without the fuss, these are it.
1. UFB Direct – 5.25% APY
UFB Direct, an online division of Axos Bank, offers a savings account called UFB High Yield Savings. This account is geared towards savers and offers an industry best-rate of 5.25% APY on all balances.
This savings account features no monthly maintenance or service fees, no minimum deposit requirement, and a complimentary ATM card for convenient access to your money. FDIC insurance is covered through their parent bank, Axos Bank (FDIC Cert #35546).
UFB Direct’s superb interest rates are due to its digital banking model that allows them to keep their overhead costs down and pass the savings along to customers. Read my in-depth UFB Direct review to learn more.
2. Pacific Western Bank – 5.25% APY
Get a top rate of 5.25% APY with the money market savings account from PacWest Bank. This money market account has no fees, no minimum balance requirement, and no limits on the frequency of withdrawals. Interest on this account is compounded daily and credited monthly.
PacWest Bank is a subsidiary of Pacific Western Bank, an FDIC-insured and publicly traded bank with assets totaling $41.2 billion. Your deposits are federally insured up to $250,000 (FDIC Cert #24045). This is an exclusive rate offered via PacWest’s partnership with Raisin.
3. Valley Bank – 5.25% APY
Valley Bank, headquartered in New Jersey and in operations for 95+ years, is one of the largest regional banks in the United States with nearly $42 billion in assets. It launched an online high-yield savings account called Valley Direct that provides a 5.25% APY, which is 12x the national average.
To open an account, you need to be at least 18 years old, have a Social Security Number, and possess a government issued ID (e.g. driver’s license, non-driver state ID, passport, U.S. permanent resident card).
Access your money 24/7 with Valley Bank’s website or mobile app. This account requires only a $1 minimum deposit, has no monthly account fees, and is FDIC-insured up to $250,000 per depositor, for each account ownership category.
4. Hanover Bank – 5.26% APY
Earn an exceptional rate of 5.26% APY with a high-yield savings account from Hanover Bank, which is 12x higher than the national average. The account features no fees, a minimum deposit of just $1, and 24/7 online account access.
Ranked as the nation’s #1 top-performing bank with assets greater than $50 billion (per American Banker), your funds are insured up to $250,000 by the FDIC (FDIC Cert #58675). This is an exclusive rate offered via Hanover Bank’s partnership with Raisin.
5. Upgrade Premier Savings – 5.07% APY
Upgrade is a financial technology company that offers a savings account called Premier Savings, which earns an outstanding 5.07% APY on balances of $1,000 or more.
In addition to no monthly account fees, Premier Savings has a generous online transfer limit of $100,000 to and from other banks. Deposits are held at Cross River Bank, Member FDIC, and are insured up to $250,000.
I became a customer several months ago when I opened the Upgrade Rewards Checking account, as the $200 welcome bonus was too good to pass up.
6. CIT Bank – 4.65% APY
CIT is a division of First Citizens Bank that currently offers a 4.65% APY on the CIT Bank Savings Connect account. Benefits of this FDIC-insured savings account include:
- Earn over 11x the national savings account average with a 4.65% APY
- Access to your account with online banking and the CIT Bank mobile app
- Deposit checks and make transfers remotely with the mobile app
The minimum deposit is $100 and you can transfer funds with an electronic transfer, mail-in check, or wire transfer. There are no monthly service fees to worry about.
7. Bask Bank – 5.00% APY
Get a phenomenal 5.00% APY with the Bask Interest Savings Account – one of the best savings rate currently available.
With no minimum balance and no monthly maintenance fees, the Bask Interest Savings Account is a great place to put your savings. You can access your account at anytime through Bask Bank’s website or using their app available on Apple and Android.
What’s really interesting about this bank is that you can also open a Bask Mileage Savings Account and earn 2.5 American Airlines AAdvantage® miles for every $1 saved. As your priorities shifts, you can seamlessly transfer your money between the Bask Interest Savings Account and the Bask Mileage Account at any time.
8. Discover Bank – 4.30% APY
Discover Bank is the fourth biggest issuer of credit cards, but not many people realize they have traditional banking services. In fact, Discover offers a compelling high-yield savings account.
Right now, you can earn a 4.30% APY with the Discover Online Savings Account. While it doesn’t offer the absolute highest rates for a savings account, you’ll also sleep easy knowing that you’re saving money at a bank with a great reputation and security.
9. Quontic Bank – 4.25% APY
Quontic is a national, digital bank that offers savings, checking, and CD accounts with some of the best APYs in banking. All their accounts feature:
- No Overdraft Fees
- No Wire Transfer Fees
- No Monthly Service Fees
- 90,000+ Fee-Free ATMs
- U.S.-based Customer Service Team
Get a 4.25% annual percentage yield when you open a Quontic Online Savings account. This high yield savings account compounds interest daily and gets credited to your account monthly.
The minimum deposit is $100 and you can make your initial deposit from an external account via ACH or using Plaid’s technology.
10. American Express – 4.25% APY
Enjoy an above average 4.25% APY, no minimum balance or monthly service fees, and 24/7 customer support with the American Express® High-Yield Savings Account.
There’s no limit to the number of deposits you can make into the high-yield savings account, and you can withdraw or transfer money a maximum of nine times a month, which should be more than enough for savers.
You can easily connect an external bank account within minutes and make seamless transfers between your linked accounts. Transfers generally take less than 24 hours to complete.
American Express is not only my favorite financial services company – it’s the one I trust the most. I’m a cardholder of many of their consumer credit cards and business charge cards, and a banking customer of both personal and business savings accounts.
Other High Interest Savings Account Options
While the savings accounts listed here can give you interest rates as high as 5.00% APY, they do come with specific requirements or limitations. For example, the interest rate may be capped at a certain amount or you may need to have a direct deposit on a regular basis to enjoy the rate.
Many of them come with a nice bank bonus, usually for opening an account and completing the bonus requirements. Here’s a full list of the best bank bonuses.
11. SoFi – Up to 4.50% APY + $275 Bonus
SoFi is offering up to a $275 welcome bonus when you open a new SoFi Checking and Savings account and set up a direct deposit. This is also valid for existing customers that haven’t previously made a direct deposit into their account.
You’ll get a $25 bonus once you open an account and deposit $10. Plus, receive another checking bonus up to $200 based on your total direct deposit amount. The more you deposit, the bigger your sign-up bonus:
| Deposit Amount | Bonus |
| $1,000 – $4,999 | $50 |
| $5,000+ | $200 |
Additionally, you can earn up to a 4.50% APY in your savings account, which is 14x the national average checking rate. All customers earn a 1.20% APY, while those that make a direct deposit (even if it’s just $0.01) or have monthly deposits of at least $5,000 will earn a 4.50% APY instead.
See this SoFi Promotions post for more details or open an account now with the link below to get the bonus offer.
12. Juno – 5.00% APY + $25 Bonus
Juno is a fintech company that offers FDIC-insured banking services. The company launched in 2017 with headquarters in Singapore and offices in the US and India.
Their mission is to provide a top-notch platform with higher interest rates than traditional banks. You will earn 5.00% APY on the first $25,000 and 4.00% APY on balances up to $250,000 with the Juno checking account. Customers can also get up to 10% cashback at popular brands with the Juno debit card.
Join now and receive a $25 welcome bonus when you open a new account with a deposit of $50 or more. Learn more about Juno promotions or use the link below to claim the offer.
13. Marcus – up to 5.50% APY
Marcus by Goldman Sachs has a high-yield savings account product that currently earns a base rate of 4.40% APY, but can be boosted all the way up to 5.50% APY.
You earn a 1.00% APY bonus for three months when you open a Marcus Online Savings Account with an invitation link from an existing Marcus customer (here’s mine). Plus, earn a 0.10% APY bonus if you’re an AARP member, which you can join for free get paid to join with this Swagbucks promotion.
In total, you can earn up to a 5.50% APY. Keep this rate beyond the initial three months by inviting a friend or family to open a Marcus savings account using your referral link.
Before Savings Accounts, Consider I Bonds
Before we begin I’d be remiss not to mention I Bonds, which are savings bonds issued by the U.S. Department of the Treasury and fully backed by the full faith and credit of the U.S. government.
Currently, I Bonds are paying a 4.30% APY. Interest rates are determined by inflation, which as you may know has been a bit high lately. While inflation is bad for the economy, it’s great for I Bonds.
Keep in mind you can only buy up to $10,000 per calendar year and I Bonds have a minimum one year holding period, but they make a great option for a short to medium-term emergency fund or a place to park your cash.
If you need your funds in a highly liquid account though, then it’s hard to beat a HYSA.
Frequently Asked Questions (FAQs)
The short answer is the stock market. It’s the best place to accumulate wealth over the long-term, especially for those who are younger with many years left to invest.
But the right answer for you depends on your age, risk appetite, and money goals.
High-yield savings accounts are the best options right now for people who want to grow their money risk free.
An HYSA is simply a better version of a traditional savings account. The major banks offer a really low APY (the average right now is 0.35%). Compare that to the best HYSAs that offer more than 14x that rate.
The only drawback (and this is being nitpicky) of an HYSA vs a regular savings account is the additional time it takes to withdraw your money. Since there’s no place to physically go to withdraw money, you have to first transfer it to a traditional bank account which can take up to 3 to 5 business days.
Currently, UFB Direct, PacWest Bank, and CIT Bank offers the highest rate for a savings account with no balance limits at 5.25% APY, 5.25% APY, and 4.65% APY, respectively.
The best accounts are UFB High Yield Savings, Pacific Western Bank HYSA, and CIT Savings Connect. All offer a high interest rate with no monthly account fees.
You should open at least two savings accounts. One should be a “hub” for your money that has high transfer limits and fast transfer times.
I recommend using Discover Online Savings Account as one of your hub accounts. It has an incoming transfer limit up to $250,000 per 30-day rolling period and an outgoing transfer limit up to $250,000 per 30-day rolling period, per registered Account Center owner (limits are subject to a combined incoming/outgoing limit of up to $300,000 per 30-day rolling period).
Compare that to most banks that have a limit of $5,000 or $10,000 per day.
The second one should be a bank account that earns you the best interest rate for your money. That could be any of the high-yield savings accounts listed here that best fits your needs.
Check to see if there are any account fees as that could eat up the interest you’ve earned. Make sure the bank is FDIC insured (all the banks and fintech companies in this post are).
As you narrow down on which bank account to open, check to see if there’s a bank bonus. Some banks offer a sign-up bonus for opening an account as an incentive to try them out.
The Bottom Line
Interest rates on savings accounts fluctuate over time so I’ll constantly update this list of the best high yield savings accounts.
If you’re wondering if it’s worth switching bank accounts for a better rate, my answer is yes. It’s free money and the difference in the amount of interest you’d earn only gets bigger over time.
For example, I recently deposited $250,000 to the highest APY savings account on this list. Here’s my analysis of how much interest I’ll earn over the next 12 months compared to the average national bank:
| Bank | APY Rate | Earned Interest |
| Top Listed Bank | 5.25% | $13,125 |
| Average National Bank | 0.42% | $1,050 |
That’s a difference of $12,075!
From my years of observing rate changes, I’ve noticed that UFB Direct, Pacific Western Bank, and CIT Bank have consistently updated their rates to be at or near the top of the scale.
There’s an advantage to sticking with a few banks that have a consistent track record of giving good interest rates since some of the top rates might be bait-and-switch. They reel you in with a high rate and then lower it hoping you don’t make the effort to switch (or even notice).
While I always advise people to move their money to a bank account with the highest interest rates, the process of “rate chasing” can be time-consuming. Personally, I opened five bank accounts with the best rates and then transfer back and forth between them as the rates adjust.
Banks like Ally, American Express, Bask Bank, CIT Bank, and UFB Direct have been known to offer competitive interest rates for many years. Their rates will also fluctuate, but they will likely always be a good rate.
Hi John,
Thanks for this list and sharing your personal experiences. Do you have an opinion on Newtek Bank, currently offering 5.15% APY for their Personal High Yield Savings? I would prefer opening an account directly with the bank. I’ve considered one of the high yield savings accounts via Raisin, but I’m still nervous about using a third party (yes, I read your review on Raisin).
Thanks,
Nicole
Hey Nicole! Everyone is different and I understand your concerns. You need to do what you’re comfortable with.
Regarding Newtek Bank – they’re a legit bank and FDIC insured, although there are quite a lot of feedback that the bank is experiencing growing pains (slow customer service, technical online issues). But if your top priority is safety, I wouldn’t worry about my money deposited with them.
Alternatively, if you want to open an account directly with a reputable bank, you should also take a look at some others on this list. For example, Valley Bank is currently offering the highest APY outside of the Raisin-affiliated banks. CIT Bank is also direct and relatively competitive with its interest rate. Discover Bank is an extremely strong brand with solid financials.
Thanks again, John! I still haven’t made a decision. Lol. My money is currently in a high yield savings account at a credit union, but they’re rate is a measely 3.75%. When reading reviews for the banks with the highest rates, it seems the negative reviews are consistently about holds/length of time to transfer money, transfer limits, and other roadblocks to accessing funds. It’s very worrisome to hear people not being able to get to their money easily. Do you have a recommendation of a place that has a good rate AND also makes tranfering money in and out easy? Maybe I’m asking for too much!
-Nicole
Welcome back to the comments section, haha! It’s okay, these are valid questions. Personally, I have a few savings accounts that are holding money for an upcoming rental investment. The accounts I’m using are at Raisin, UFB Direct (it has the highest APY currently), and Discover Bank.
I’ve never had an issue with any of them and all of them have easy electronic transfers. In terms of transfer time, Discover Bank probably has the fastest clearing time, but we’re talking about a difference of 2-3 days vs 4-5 days at other ones.
Keep in mind you can always take your money out if you try a bank and later decide you want it at a different bank. Nothing is permanent. It’s better to let your money make more money for you ASAP 😉
Thank you for making this list, John! I was saving money at a credit union earning 3.25% and thought that was the best rate available. It was much higher than any rate my friends were getting at their banks, but I see now that there are much better HYSAs out there.
You’re welcome! I’m glad this post helped you in finding a better yield for your money. It’s definitely worth it to go from 3.25% to 5%. That’s 1.75% make a big difference in the long run.
John,
If I open a HYSA can I transfer funds ,when needed, to a credit union savings account as easy as another bank savings account ?
Absolutely. A HYSA acts in the same exact way as a typical bank savings account so moving funds in and out of a credit union won’t be an issue. I actually have one of my credit unions (I have many as you may have already guessed, ha) linked to the CIT Bank and everything is working as expected (transfer time, transfer setup process, etc.).
I tried to access the Western Alliance promotion supposedly offered thru Save Better. Neither Save Better nor Western Alliance could confirm its existence.
The bonus exists – I added a screenshot of the promotion details. Customer service representatives from Western Alliance and/or SaveBetter may not be aware of it since it’s offered to the end users.
Wealthfront is also a great option. 4.05% APY, no fees / unlimited transfers, and $2M FDIC insurance.
You have misrepresented the relationship between the FDIC deposit insurance coverage and the gaping holes that exist between the depositor and the non-bank entity, Wealthfront. Here’s what Wealthfront has to say about it, and they minimize the risk taken when you choose to “deposit” any amount of money with Wealthfront. Their contention that funds you entrust to them as your fiduciary eventually make it to an FDIC insured institution, but that should NEVER be represented as any sort of guarantee that your deposits at Wealthfront are, in fact, fully and continuously insured by the Federal Deposit Insurance Corporation. “Clients sometimes ask us if their money is protected while it’s in transit to or from a partner bank, and the answer is yes. This rarely comes up because we sweep your cash to our partner banks on the same day we receive it. But even if your funds take a day to arrive, they’re still well protected because our Cash Account is offered by Wealthfront Brokerage, a federally registered broker-dealer, and therefore includes Securities Investor Protection Corporation or SIPC insurance. SIPC insurance covers up to $250,000 of your cash while it’s on its way to a partner bank, so you’re protected even before FDIC insurance kicks in.”
Is there a bank/credit union that consistently has one of the highest interest rates or must one frequently switch banks?
UFB Direct and Bask Bank update their rates often and are consistently at the highest rates. I do have more savings accounts (opening bank accounts doesn’t affect your credit score) and transfer money when it’s worth it.
It’s real easy to move money back and forth in some cases. For example, the rates offered by American First Credit Union, Blue FCU, and SkyOne CU are all under the SaveBetter marketplace so you can seamlessly switch between all the financial institutions.
Is it concerning that if I go to American First CU site directly, I can’t get this 4% MM rate, but can only get it by going through SaveBetter, a third party? This feels like an extra security risk to add a “middle man” so to speak. What are your thoughts?
Hey Jessica, thanks for your question. SaveBetter is an online savings marketplace where most banks and credit unions offer better rates as they have to compete against one another. I think the extra interest is worth it. Personally, I opened a few CDs and a couple of savings accounts through them with no issues.
I wouldn’t worry about the security – they have been around for a long time with a great reputation. You’ll find many major financial institutions partner with them (e.g. Sallie Mae). Additionally, all your funds are FDIC insured at banks and NCUA insured at credit unions.
sofi just sent out an email that they are going to 3% on savings on 11/3. I can forward you the email if you would like.
Thanks Josh for giving me a heads up! I just saw it – update made for the SoFi APY going from 2.50% to 3.00%.
Thank you for the I Bond tip! I’m going to put $10k into these bonds and looking over this post, I plan on moving my cash over to a HYSA or MM. Which account should I choose for about $50k investment?
If a High-Yield Savings Account (HYSA), Certificate of Deposit (CD), and Money Market (MM) are equivalent (e.g. no service or monthly fees and no early withdrawal penalties) then you should be indifferent and take the one that offers the highest rate.
Visit Bask Bank of Texas to see their EXCELLENT (FDIC insured) savings account.