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:
|$1,000 – $4,999||$50|
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.
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.