The best high-yield savings account rate from a nationally available institution is 5.55% APY, available from Flagstar Bank. That's more than 15 times the FDIC's national average for savings accounts of 0.36% APY and is just one of 15 or more top rates you can find in our daily ranking of the best savings accounts. Since 2019, we've researched rates from over 100 banks and credit unions that are open to customers nationwide, and every weekday we publish the best APYs for you to compare. While our rankings are based on the highest returns, we also outline the major account features of every contender in our list, such as the minimum opening deposit, ongoing balance requirements, fees, and much more. Below you'll find our partners' savings and cash management accounts—from banks, credit unions, and other financial institutions that use partner banks—followed by our Top 15 ranking of the best savings account rates available nationwide. Additionally, you may be interested in reviewing our ranking of the best money market account rates. The Fedheld rates steady for a seventh consecutive timeat its June 12meeting. The federal funds rate is at its highest level since 2001, but Fed officials are projecting one or possibly two rate cuts before the end of the year. Savings account yields closely follow thefed funds rateand climbed to a new high in April. But once the Fed starts cutting rates, savings account rates will fall. The top savings account rates in the country are listed below in order of APY. Where more than one financial institution has the same rate, we've ranked accounts by those requiring the smallest minimum ongoing balance, and if the same there as well, we list the tied institutions alphabetically. Note that some banks call their savings accounts "money market" accounts. Money market accounts traditionally offer the ability to write checks, while savings accounts do not. None of the accounts listed here offer check-writing privileges, even if the name might suggest otherwise. It's smart to also check our ranking of the best money market accounts, some of which pay comparable interest rates. Note: This rate is guaranteed for five months from the date the account is opened. Note: This rate is guaranteed for 90 days from the date the account is opened. Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account. *Not available to residents of Kansas and Missouri Note: TotalBank is available to customers nationwide except for Florida residents. Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account. Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account. Note: VirtualBank is available to customers nationwide except for California residents. Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account. Investopedia collects savings account rates from over 100 banks and credit unions every weekday. When ranking high-yield savings account rates, we look at factors that will help readers choose the best savings account, like minimum opening deposit. We also research banks and credit unions to provide unbiased, comprehensive reviews to ensure our readers make the right decisions for their needs. Investopedia launched in 1999 and has been helping readers find the best high-yield savings account rates since 2019. As the name implies, high-yield savings accounts pay much higher interest rates than traditional ones. Often offered online, whether by an internet-only bank or the online division of a brick-and-mortar bank, they're a type of savings account that's based on the idea of holding your savings wherever it can earn a competitively high yield, even if that's a different bank than where you hold your checking account. The difference in savings account interest rates can be dramatic, with the top accounts in the country typically offering 10 to 12 times the national average rate. And you can still keep your checking account where it is, because it's simple to link a high-yield savings account to your primary account for easy transfers. Stashing some of your cash in a savings account is smart whether you're saving for something specific, or just want to sock money away for when you'll need it in the future. For instance, one common reason to open a savings account is for building up an emergency fund. By putting your emergency money in a high-yield account, you'll be able to boost your balance with monthly interest earnings, while also leaving your funds fully accessible should a financial emergency arise. Other common reasons to open a high-yield savings account are to reach a specific goal, such as buying a house or a car, sending your son or daughter to college, or going on a special vacation. When you have a savings target in mind, earning as much return on your cash as you can will help you reach your goal more quickly. Each bank is a business that has different needs for customer deposits, and each operates in its own regional market. As a result, some banks have to work harder to attract funds, such as smaller banks with names you may not be familiar with. Also important is the lending activity the bank is undertaking. If, for instance, a bank is in a strategic push to build its commercial lending portfolio, it will need to attract more customer deposits in order to fund those loans it hopes to make. Rates at an institution can also change from time to time. Perhaps they'll offer a promotional APY for a period of time, to boost up their deposits balance, but then lower it after they've accumulated enough funds. When researching high-yield savings accounts to find the best one for you, be sure you understand what these commonly used terms mean. Pros Higher APY than traditional savings accounts Ability to withdraw or deposit funds at any time Extremely safe, with virtually no risk Excellent vehicle for an emergency fund or saving for a big goal In times of rising rates, your APY may go up Cons Earning a top yield may require opening an account with a new institution Some accounts have withdrawal limits of six per month Easy access can make it tempting to dip into savings Account could have a fee or minimum balance requirement In times of decreasing rates, your APY may go down Anyone with surplus savings in the bank can benefit from a high-yield savings account. If you have more money in the bank than you need to hold in your checking account, high-yield savings accounts offer a way to sock some of those funds away to earn an especially high annual percentage yield (APY). High-yield savings accounts are also well suited to those comfortable with internet or mobile banking, as moving money in and out of an online savings account must generally be done on your computer or via a mobile banking app on your phone. I first opened a high-yield savings account with American Express in 2019. The rate at the time was about half of what it is now, and because I have seen it go higher over the years, I've urged friends and family to open high-yield savings accounts, too. While Amex doesn't offer the top rate nationwide, it has a great mobile app, which is how I do most of my banking. I can see my high-yield savings account right next to my credit cards, and can easily deposit money from my checking to my savings via the app. When choosing the best savings account for you, you'll want to check the rules of the account, such as whether it limits the number of withdrawals you can make in a month, and if you'll be assessed a monthly maintenance fee. Lastly, check that the bank is an FDIC member (or an NCUA member if it's a credit union) so that your money is insured by the federal government—up to $250,000 per depositor—should the bank or credit union fail. Online reviews of a bank's customer service may also prove useful. Transfers between different institutions will take one to three days to complete, so be sure to keep enough of a cash cushion either in your checking account or in a linked savings account at that same institution. That way you won’t run into trouble if you can’t get funds from your high-yield account for a couple of days. High-yield savings accounts are just one vehicle for stashing your cash, and they often pay the highest APYs. But there are several alternatives for holding your funds until you need them. While the easiest place to keep surplus funds is in your checking account, this has two major downsides. First, money kept in your everyday checking account is very easy to spend, making it difficult to leave earmarked as savings. Second, checking accounts tend not to pay any interest—or if they do, the rate is a pittance. A high-yield savings account offers an opportunity to earn a reasonable return on your money. Some high-yield or rewards checking accounts do exist, with rates that are more competitive. But these accounts require jumping through some hoops—sometimes every month—in order to earn their high rate. Still, if you're a heavy debit card user, one of the best rewards checking accounts may be a good option for you. There is no formal definition of how high a rate needs to be to qualify as "high yield". In short, it's up to each institution how to name their savings accounts. Traditional banks and credit unions more often offer traditional savings accounts, while online banks are more likely to offer a high-yield savings account. But again, the distinctions are fuzzy, rather than hard-and-fast rules. A money market account operates very much like a savings account, with the exception that it allows writing checks. In the past, money market accounts typically imposed high minimum deposit requirements in exchange for higher rates than savings accounts. This has shifted in recent years, however, with savings and money market accounts both having a variety of required minimum balances—including no-minimums accounts. In addition, high-yield savings accounts often pay more competitive rates than money markets, though sometimes you can find a higher APY among the top-paying money market accounts. If some of your savings can be socked away and not touched for a period of time, you may be able to earn a higher rate with a certificate of deposit. CDs require you to commit your funds to remain on deposit for a number of months or years, imposing a penalty if you request to withdraw the funds before the CD’s maturity date. But in exchange, your interest rate is locked and guaranteed, even if the Fed lowers rates. Our daily ranking of the best nationwide CDs can lead you to the highest available APYs no matter the CD term you choose. There are also a number of options that don't involve banks and credit unions: If you have a brokerage account, you can also keep some of your cash in a money market fund or a cash reserve account. Just be sure you research the yields, as many of these options pay a far inferior return than what you can earn by instead putting your money in a high-yield savings account. It is also easy to link a high-yield savings account for transferring funds in and out of your brokerage account. Once you've decided to open up a new high-yield savings account, you'll want to do your homework to make sure you're choosing the best one for your needs. Searching for a top annual percentage yield (APY) is a good starting point when choosing a high-yield savings account, as you'll want to earn a competitive rate. Though the interest rate can change, it makes sense to choose an account that is paying one of the highest rates in the country, since the higher your rate, the more interest you'll collect every month and every year. Also, through the power of compounding, you can make interest off your interest, and the higher the APY on your account, the better. But beyond the interest rate, you'll also want to make sure the account either doesn't have a minimum balance requirement, or has one that you feel confident you can regularly maintain. Also, note if there is a minimum balance required to earn the top APY. After comparing the best high-yield savings account and landing on a choice, the next step is to open the account online. Here's how that generally works: Once the application process is completed, you may be able to set up online banking right away, or you may need to wait a day or two for your account to be fully opened. In a worst-case scenario, a savings account will pay no interest, meaning your funds don't grow at all. But you would never lose the money you put into the account, other than due to fees you've been assessed. So it's important to choose an account where you can easily avoid paying any fees. As for losing money due to a bank failure, the vast majority of banks—whether physical or online—are covered by the Federal Deposit Insurance Corporation (FDIC), which protects banking customers by insuring up to $250,000 of their deposits per institution if the bank fails. The U.S. government similarly backs credit union customers for up to $250,000 by providing insurance through the National Credit Union Administration (NCUA). That means whether your institution is a traditional brick-and-mortar bank with branches or is an online bank or credit union, and whether it’s big or small, your deposits up to $250,000 are equally safe and protected. Just be sure to check for the words “FDIC member” or the FDIC logo on the website of any bank where you’re considering doing business (or NCUA, if it’s a credit union). The top-paying institutions for savings accounts vary, with no one bank perpetually leading the rate rankings. In general, the top rate contenders tend to be online operations, whether owned by a physical bank or set up as a fully online-only institution. You can always find today's highest rates—currently well above 5%—and the institutions that offer them by regularly checking our ranking in this article. Or for a list that is exclusive to banks (no credit unions), you can check our daily ranking of the best banks for savings accounts. We track the rates of over 100 banks and credit unions every weekday. While we do check the rates at big banks—including the five largest banks of Chase, Bank of America, Wells Fargo, Citi, and U.S. Bank—their rates aren't usually high enough to make our ranking. That's because large banks typically don't need to attract deposits in the way that smaller institutions do. Other institutions may not appear in our ranking because they don't meet our qualification criteria, such as not being available to customers in at least 40 states, significantly limiting the balance on which you can earn the high-yield APY, or not offering what qualifies as a high yield rate. Online-only banks, or the online operations of traditional banks, are able to avoid a lot of overhead costs by not having to build, maintain, and staff any physical branches. As a result, they can put those costs savings to use by offering higher interest rates that will attract customers and their deposits. What any bank offers in interest—whether paid on a savings, checking, money market, or CD account—will need to be reported on your annual tax return. You'll be able to see on your monthly statement or online register how much you were paid each month, and at the end of the calendar year, it will be taxed along with all of your other income from employment and other sources. The bank where you hold your high-yield savings account will not tax you directly, but in January of each year, they will send you and the IRS a Form 1099-INT indicating how much interest you were paid in the previous calendar year. You must then report this interest income on your tax return. The APY on a savings account is variable, meaning what it pays when you first open your account will most likely change sometime in the future, and it can change at any time without warning. Whether the rate goes up or down, and how often it changes, is largely influenced by the Federal Reserve. When the Fed adjusts the federal funds rate, banks and credit unions often follow suit in the same direction. That said, rate changes among savings accounts are not typically a daily or weekly event. Barring recent moves by the Fed, rates often remain at the same level for weeks or months at a time. When interest rates are moderate to high, you stand to earn dramatically more on your money in the bank if you open an outside savings account that pays one of the country's most competitive rates. Here are some examples: Having a separate high-yield account also can make it easier to reach your savings goals. Setting up a monthly automated transfer from your checking account to your high-yield account can be an easy way to stick to a "pay yourself first" strategy. So in short, yes, it's worth opening a high-yield savings account since you'll earn far better returns on money that's just sitting in the bank, as well as perhaps helping you build your savings more quickly. There are few drawbacks to putting some of your money into a high-yield savings account. The primary downside is that your money will likely reside at a different institution than where you do your primary banking. As a result, you may not be able to instantaneously transfer money from your high-yield savings to your primary checking account, as transfers between banks generally take 1-3 days. This issue can be easily handled, however, by making sure you keep some level of cash cushion at the bank where you have your checking, enabling you to make a quick transfer to checking if you need it. Every business day, we check the savings account rate for about 100 banks and credit unions that offer their accounts to customers nationwide. They include the following: 5Star Bank, Abington Bank, ableBanking, Affirm, Alliant Credit Union, Ally Bank, Amalgamated Bank, American Express, American Heritage Federal Credit Union, Axos Bank, Bank5 Connect, Bank5 Connect, Bank7, BankPurely, BankPurely, Barclays, Bask Bank, Blue Federal Credit Union, BluPeak Credit Union, BMO / BMO Alto, Bread Savings, BrioDirect, Capital One, CFG Bank, Chime, CIBC USA, CIT Bank, CIT Bank, CIT Bank, Citi, Citizens Access, CNB Bank Direct, CNB Bank Direct, Colorado Federal Savings Bank, CommunityWide Federal Credit Union, ConnectOne Bank, Credit Karma, Customers Bank, Digital Federal Credit Union, Discover, DollarSavingsDirect, E*TRADE Bank, Elements Federal Credit Union, Elements Financial, EmigrantDirect.com, EverBank, Evergreen Bank Group, First Foundation Bank, First Internet Bank, Fitness Bank, FNBO Direct, Forbright Bank, Hanscom Federal Credit Union, iGObanking, iGObanking, Ivy Bank, Jovia Financial Credit Union, Laurel Road, Lending Club, Live Oak Bank, Marcus by Goldman Sachs, MemoryBank, Milli, mph.bank, MutualOne Bank, My Banking Direct, MySavingsDirect, Nationwide by Axos, nbkc bank, Neighbors Bank, Newtek Bank, North American Savings Bank, Northfield Bank, Northpointe Bank, ONE, One American Bank, Panacea Financial, Pen Air Federal Credit Union, PenFed Credit Union, Popular Direct, Presidential Bank, Prime Alliance Bank, Primis Bank, Quontic Bank, Quorum Federal Credit Union, RBMAX, Rising Bank, Salem Five Direct, Sallie Mae Bank, SFGI Direct, SmartyPig, Synchrony Bank, TAB Bank, TotalDirectBank, UFB Direct, Upgrade, USAlliance Financial, Valley Direct, Vio Bank, VirtualBank, Web Bank, Western State Bank, and Workers Credit Union. Every business day, Investopedia tracks the rate data of about 100 banks and credit unions that offer high-yield savings accounts to customers nationwide. We determine daily rankings of the top-paying savings accounts first and foremost by the annual percentage rate (APY) offered. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account's minimum initial deposit must not exceed $25,000. Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. If the savings account is accessible only through a mobile app, we require that the app be available on both the iOS and Android platforms. For more about how we choose the best high-yield savings accounts, read our full methodology. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. FDIC. "National Rates and Rate Caps." Federal Reserve. "Federal Reserve Issues FOMC Statement." Federal Reserve. "Summary of Economic Projections." FDIC. "Deposit Insurance." Related Terms Passbook Loan: Meaning, How it Works, Pros and Cons A passbook loan is a personal loan made to a savings account holder by the custodial bank using the balance of the savings account as collateral. more What Is a Savings Account and How Does It Work? A savings account is a bank or credit union account designed to keep your money safe while providing interest. Learn how savings accounts work. more Tiered-Rate Accounts: Examples of How They Work A tiered-rate account is a bank account—checking or savings—that pays different rates of interest depending on the amount of funds held in it. more What Is a Certificate of Deposit (CD)? Pros and Cons A certificate of deposit (CD) is a type of savings account offered by banks and credit unions. It pays a fixed interest rate for a set period of time. more Treasury General Account: The Government's Checking Account The Treasury General Account is the general checking account that the Department of the Treasury uses. more What Is a Checking Account? Here's Everything You Need To Know A checking account is an account held at a financial institution that allows deposits and withdrawals. Learn how checking accounts work and how to get one. moreIn the News
Best High-Yield Savings Account Rates for July 2024
Flagstar Bank, Savings Plus – 5.55% APY
Poppy Bank – 5.50% APY
My Banking Direct, High Yield Savings Account – 5.45% APY
Forbright Bank, Growth Savings – 5.30% APY
Vio Bank, Cornerstone Money Market Savings Account – 5.30% APY
North American Savings Bank, E-Savings – 5.30% APY*
BrioDirect, High-Yield Savings Account – 5.30% APY
Ivy Bank, High-Yield Savings Account – 5.30% APY
TotalBank, Money Market Account – 5.26% APY
Jenius Bank, Savings – 5.25% APY
Newtek Bank, Personal High Yield Savings – 5.25% APY
UFB Direct, Secure Savings Account – 5.25% APY
Evergreen Bank Group, High-Yield Online Savings – 5.25% APY
VirtualBank, eMoney Market – 5.25% APY
CFG Bank, High Yield Money Market Account – 5.25% APY
Compare the Best High-Yield Savings Accounts
Institution APY Required Opening Deposit Minimum Balance Flagstar Bank 5.55% Any amount $25,000 Poppy Bank 5.50% Any amount $1,000 My Banking Direct 5.45% $500 Any amount Forbright Bank 5.30% Any Amount Any amount Vio Bank 5.30% $100 Any amount North American Savings Bank 5.30% $10,000 Any amount BrioDirect 5.30% $5,000 $25 Ivy Bank 5.30% $2,500 $2,500 TotalBank 5.26% $25,000 $2,500 Jenius Bank 5.25% Any amount Any amount Newtek Bank 5.25% Any amount Any amount UFB Direct 5.25% Any amount Any amount Evergreen Bank Group 5.25% $100 Any amount VirtualBank 5.25% $100 Any amount CFG Bank 5.25% $1,000 $1,000 Why You Should Trust Us
What Is a High-Yield Savings Account?
Reasons to Open a High-Yield Savings Account
Why Different Banks Pay Different Savings Account Rates
Common Savings Account Terms to Understand
Pros and Cons of High-Yield Savings Accounts
Who Is a High-Yield Savings Account Best For?
Hilarey Gould, Editorial Director for Financial Products and Services at Investopedia
Alternatives to High-Yield Savings Accounts
High-Yield Savings Account vs. Checking Account
High-Yield Savings Account vs. Traditional Savings Account
High-Yield Savings Account vs. Money Market Account
High-Yield Savings Account vs. Certificate of Deposit (CD)
Non-Bank Alternatives to a High-Yield Savings Account
What Is APY—And Why It Matters in Choosing an Account
How to Open a High-Yield Savings Account
Frequently Asked Questions
Are High-Yield Savings Accounts Safe? Can You Lose Money In a High-Yield Account?
Which Banks Pay the Highest Savings Account Rates? Where Can I Earn 5%?
Why Don't I Recognize the Banks in Your Rankings?
Why Are Most High-Yield Savings Accounts Online?
Will I Be Taxed on My High-Yield Savings Account?
Do High-Yield Savings Account Rates Change?
Is a High-Yield Savings Account Worth It?
What Are the Downsides to a High-Yield Savings Account?
Which Banks Do You Track for High-Yield Savings Accounts?
How We Find the Best High-Yield Savings Account Rates
Learn More About High-Yield Savings Accounts
Best High-Yield Savings Accounts for July 2024: Up to 5.55% (2024)
Table of Contents
In the News
Best High-Yield Savings Account Rates for July 2024
Flagstar Bank, Savings Plus – 5.55% APY
Poppy Bank – 5.50% APY
My Banking Direct, High Yield Savings Account – 5.45% APY
Forbright Bank, Growth Savings – 5.30% APY
Vio Bank, Cornerstone Money Market Savings Account – 5.30% APY
North American Savings Bank, E-Savings – 5.30% APY*
BrioDirect, High-Yield Savings Account – 5.30% APY
Ivy Bank, High-Yield Savings Account – 5.30% APY
TotalBank, Money Market Account – 5.26% APY
Jenius Bank, Savings – 5.25% APY
Newtek Bank, Personal High Yield Savings – 5.25% APY
UFB Direct, Secure Savings Account – 5.25% APY
Evergreen Bank Group, High-Yield Online Savings – 5.25% APY
VirtualBank, eMoney Market – 5.25% APY
CFG Bank, High Yield Money Market Account – 5.25% APY
Compare the Best High-Yield Savings Accounts
Why You Should Trust Us
What Is a High-Yield Savings Account?
Reasons to Open a High-Yield Savings Account
Why Different Banks Pay Different Savings Account Rates
Common Savings Account Terms to Understand
Pros and Cons of High-Yield Savings Accounts
Who Is a High-Yield Savings Account Best For?
Hilarey Gould, Editorial Director for Financial Products and Services at Investopedia
Alternatives to High-Yield Savings Accounts
High-Yield Savings Account vs. Checking Account
High-Yield Savings Account vs. Traditional Savings Account
High-Yield Savings Account vs. Money Market Account
High-Yield Savings Account vs. Certificate of Deposit (CD)
Non-Bank Alternatives to a High-Yield Savings Account
What Is APY—And Why It Matters in Choosing an Account
How to Open a High-Yield Savings Account
Frequently Asked Questions
Are High-Yield Savings Accounts Safe? Can You Lose Money In a High-Yield Account?
Which Banks Pay the Highest Savings Account Rates? Where Can I Earn 5%?
Why Don't I Recognize the Banks in Your Rankings?
Why Are Most High-Yield Savings Accounts Online?
Will I Be Taxed on My High-Yield Savings Account?
Do High-Yield Savings Account Rates Change?
Is a High-Yield Savings Account Worth It?
What Are the Downsides to a High-Yield Savings Account?
Which Banks Do You Track for High-Yield Savings Accounts?
How We Find the Best High-Yield Savings Account Rates
Learn More About High-Yield Savings Accounts
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