Matthew GoldbergWritten by
Marc WojnoEdited by
Greg McBride, CFAReviewed by
Marc WojnoEdited by
Greg McBride, CFAReviewed by
Updated July 22, 2024
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High-yield savings accounts can be a great place to put money that you’re saving and want to earn a competitive APY on, but you aren’t sure on the time horizon for the money. Bankrate’s top high-yield savings offers pay much higher APYs than the national average yield of 0.61 percent.
Bankrate provides you with timely news and rate information on the top savings yields from some of the most popular and largest Federal Deposit Insurance Corp. (FDIC)-insured banks and National Credit Union Administration (NCUA)-insured credit unions. This way you don’t have to spend time searching many bank and credit union websites. Since 1976, Bankrate has been a trusted source of banking information to help you make well-informed decisions on your finances.
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Table of contents
- Best high-yield savings accounts
- Recent news on high-yield savings account rates
- How to choose a high-yield savings account
- What to know about high-yield savings accounts
- Pros and cons of high-yield savings accounts
- Alternatives to high-yield savings accounts
- High-yield savings FAQs
- Research methodology
Best online high-yield savings account rates
- BrioDirect — 5.30% APY
- UFB Direct — 5.25% APY
- Bread Savings — 5.15% APY
- Bask Bank — 5.10% APY
- EverBank (formerly TIAA Bank) — 5.05% APY
- Popular Direct — 5.05% APY
- TAB Bank — 5.02% APY
- Salem Five Direct — 5.01% APY
- CIBC Bank USA — 5.01% APY
- LendingClub Bank — 5.00% APY
Note: Annual percentage yields (APYs) shown were updated between July 19 and July 25. All other information is current as of July 22. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
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The following accounts can be found at most banks and credit unions. They’re federally insured for up to $250,000 and offer a safe place to put your money while earning interest.
Certificate of Deposit (CD)
CDs are best for individuals looking for a guaranteed rate of return that’s typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.
Checking account
Checking accounts are best for individuals who want to keep their money safe while still having easy, day-to-day access to their funds. ATM and other transactional fees may apply.
Savings / Money Market Accounts (MMA)
Savings and MMAs are good options for individuals looking to save for shorter-term goals. They’re a safe way to separate your savings from everyday cash, but may require larger minimum balances and have transfer limitations.
Current savings trends
Bankrate Partner average
4.64% APY
National average
0.61% APY
The "Bankrate Partner average" is calculated from the average of the top savings account offers from the institutions we track, included on this page as of 7/26/2024. "National average" is determined by Bankrate's comprehensive national survey of savings accounts and CDs.
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- Best high-yield savings accounts
- Recent news on high-yield savings account rates
- How to choose an online high-yield savings account
- What to know about high-yield savings accounts
- Pros and cons of high-yield savings accounts
- Alternatives to high-yield savings accounts
- High-yield savings FAQs
- Research methodology
Best high-yield savings accounts for July 2024
Note: Annual percentage yields (APYs) shown were updated between July 19 and July 25. All other information is current as of July 22. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
BrioDirect
Rating: 4.6 stars out of 5
4.6
Overview
BrioDirect offers a High-Yield Savings account that offers a competitive yield that requires $5,000 to open.
Read Bankrate's Expert BrioDirect Review
5.30% APY
$5,000 min. deposit to open
UFB Direct
Rating: 5 stars out of 5
5.0
Overview
UFB Direct is known for its high-yield savings account and money market account. Both the UFB Secure Savings account and UFB Secure Money Market account have very competitive yields. One of the differences is that the UFB Secure Savings account, which has ATM access, doesn’t have a monthly service fee. The UFB Secure Money Market account has a $10 monthly maintenance fee if you don’t keep at least $5,000 in the account.
Read Bankrate's Expert UFB Direct Review
5.25% APY
$0 min. deposit to open
Bread Savings
Rating: 4.8 stars out of 5
4.8
Overview
Bread Savings is an online bank that offers a high-yield savings account and five terms of CDs. Bread Savings requires at least $100 to open this account.
Read Bankrate's Expert Bread Savings Review
5.15% APY
$0 min. balance for APY
$100 min. deposit to open
Bask Bank
Rating: 4.7 stars out of 5
4.7
Overview
Bask Bank is known for its high-yielding Bask Interest Savings account. It’s also known for a unique account, the Bask Mileage Savings account, where you can earn American Airlines miles. Bask Bank, a division of Texas Capital Bank, made its debut in early 2020 with its Mileage Savings Account. In February 2022, Bask introduced its Interest Savings Account, which offers a very competitive yield and doesn’t require a minimum opening deposit.
Read Bankrate's Expert Bask Bank Review
5.10% APY
$0 min. balance for APY
$0 min. deposit to open
EverBank (formerly TIAA Bank)
Rating: 5 stars out of 5
5.0
Overview
The EverBank Performance℠ Savings account earns more than the national average APY. There’s no minimum deposit required to open the account.
Read Bankrate's Expert EverBank (formerly TIAA Bank) Review
5.05% APY
$0 min. balance for APY
$0 min. deposit to open
Popular Direct
Rating: 4.8 stars out of 5
4.8
Overview
Popular Direct is known for offering competitive yields. But those competitive yields have $100 minimum opening deposit requirements with the Popular Direct High-Rise Savings account. (The minimum opening requirement is much higher for its CDs.) The account also has a $25 fee for closing it within your first 180 days, so definitely make sure you’re going to keep this account for at least that amount of time. Popular Direct has been around since 2016. It offers a savings account and eight terms of CDs. The CDs have terms ranging from three months to five years.
Read Bankrate's Expert Popular Direct Review
5.05% APY
$100 min. deposit to open
TAB Bank
Rating: 4.9 stars out of 5
4.9
Overview
TAB Bank is known for offering competitive yields. It’s also known for its unique checking account for truck drivers. TAB Bank’s High Yield Savings Account doesn’t require a minimum opening deposit and doesn’t have a monthly maintenance fee. TAB Bank pays the same yield on any balance. (But of course, you’ll want to make sure that you’re within FDIC insurance limits and guidelines.)
Read Bankrate's Expert TAB Bank Review
5.02% APY
$0 min. deposit to open
Salem Five Direct
Rating: 4.9 stars out of 5
4.9
Overview
Salem Five Direct is known for being the online division of Salem Five, a bank founded in 1855 in Salem, Massachusetts. It’s also known for offering a high-yield savings account, checking account and CDs. Its eOne Savings account only requires a $10 opening deposit, and it doesn’t have a monthly service fee or minimum balance requirements.
Read Bankrate's Expert Salem Five Direct Review
5.01% APY
$10 min. deposit to open
CIBC Bank USA
Rating: 4.9 stars out of 5
4.9
Overview
CIBC Bank USA is currently known for offering a competitive yield on its CIBC Agility Online Savings Account, which charges no monthly service fee. The bank also is known for offering CDs that have a slightly higher yield.
Read Bankrate's Expert CIBC Bank USA Review
5.01% APY
$0 min. balance for APY
$1,000 min. deposit to open
LendingClub Bank
Rating: 4.9 stars out of 5
4.9
Overview
LendingClub was known for its lending products. But with its acquisition of Radius Bank, which closed in early 2021, LendingClub is also known for its deposit products. LendingClub Bank’s High-Yield Savings account doesn’t have a monthly service fee and comes with an ATM card. You can open the account with $100.
Read Bankrate's Expert LendingClub Bank Review
5.00% APY
$0 min. balance for APY
$100 min. deposit to open
Bankrate's expertise
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Our banking editorial team regularly evaluates data from more than a hundred of the top financial institutions across a range of categories (brick-and-mortar banks, online banks, credit unions and more) to help you find the options that work best for you.
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Recent news on high-yield savings account rates
Even though the Federal Reserve kept the federal funds rate the same in June, you can currently find savings accounts with yields greater than the rate of inflation.
The Fed might cut rates only one time this year. That rate cut might reduce top savings yields, but it’s likely not to be significant. It’s important to remember that the Fed raised rates 11 times in the current rate cycle, and some of those were large increases.
Returns on savings accounts will likely remain at attractive levels for some time, with little change expected until the prospect of Fed rate cuts becomes clearer.— Greg McBride, CFA, Bankrate chief financial analyst
While it’s easy to find a top-yielding account these days that beats inflation, there are plenty of other savings accounts that earn uncompetitive rates. For instance, the national average savings account rate as of July 26, 2024, is just 0.61 percent APY, according to Bankrate’s most recent survey of banks. That average factors in competitive rates commonly offered by online banks, as well as rock-bottom rates often found at large brick-and-mortar banks.
Bankrate insights
Only 67 percent of Americans with short-term savings currently have an online savings account that earns a competitive yield of 4 percent or greater, Bankrate’s Online Savings Survey found.
- Nearly 1 in 5 people (17 percent) with a savings account earn a rock-bottom rate of less than 1 percent.
- Also, nearly 1 in 5 (17 percent) of savers indicated they aren’t earning any interest.
How to choose an online high-yield savings account
The top three factors to look for when choosing a high-yield savings account are:
What to know about high-yield savings accounts
High-yield savings accounts typically pay a much higher APY than traditional savings accounts, providing savers the ability to earn more on their money while still enjoying the security of a federally insured account. Traditional savings accounts are commonly offered at brick-and-mortar banks and larger banks. These accounts may yield close to nothing, often around 0.01 percent APY. High-yield savings accounts can earn hundreds of times more these days.
Most high-yield savings accounts have a variable APY, which means the yield is subject to change. Consumers looking for a guaranteed yield should consider a certificate of deposit (CD), and a no-penalty CD might be a good option for those who prefer both a fixed APY and access to their money without incurring a penalty.
Savings accounts usually earn compound interest, which simply means you’ll earn interest on interest. As such, you’ll earn interest on your principal as well as the interest that accumulates over time.
Below are a few important features to consider when searching for a high-yield savings account. When choosing which account is right for you, also take a look at Bankrate’s expert reviews of popular banks, many of which offer high-interest savings accounts.
- Annual percentage yield (APY)
- APY incorporates the effect of compounding. Simply stated, compound interest is the interest you earn on interest. You’ll earn interest on your initial deposit as well as on the interest that accumulates over time.
- Minimum opening deposit required
- The amount you’ll need to open your account.
- Minimum balance required
- The balance you’ll need to keep in your account to avoid a monthly service fee.
- Monthly maintenance fees
- The fee you’ll incur if your balance falls below the minimum balance requirement in your account.
Learn more:What is a high-yield savings account?
Who should get an online high-yield savings account?
A high-yield savings account is ideal for someone who’s currently earning low interest on their savings account – or no interest at all – and is eager to boost their savings potential.
A good time to get a savings account is when:
- You’re not earning any interest – or you’re earning a low APY – in your current bank account.
- You don’t have an emergency fund, or you have your emergency fund commingled with your checking account at a brick-and-mortar bank.
High-yield savings accounts with no minimum opening deposit requirement, no minimum balance requirement and no monthly service fees can be a good choice for nearly anyone. People can have different money-related goals and be at different stages in their financial life and benefit from these accounts. Here are a few examples:
Future homebuyers
A high-yield savings account is a great way to ensure your down payment money will grow until you need it to buy a house, condo or apartment. And unlike most CDs, you can add to your balance at any time.
Jetsetters and road-trippers
A good strategy when saving for your next vacation is to determine how much you’ll need for the trip and then open a dedicated savings account for it. Consider automating your savings to keep your savings goals on track.
Soon-to-be married couples
A high-yield savings account allows you to earn a competitive yield on your balance as you save for your wedding. You can keep adding to this account all the way up until you say “I do.” Having a separate account devoted to wedding savings can help you monitor your progress more easily, which helps you meet your savings goals for the big day.
How to open a savings account
Before you dump your money into an account at your local bank, there are several steps you should take.
Learn more
Pros and cons of high-yield savings accounts
Savings accounts are a good place to set aside funds for many financial goals. Here are the pros and cons of online high-yield savings accounts, so you can make sure one is right for you.
Pros
Online high-yield savings accounts typically pay a much higher APY than traditional savings accounts.
Many high-yield savings accounts offer digital tools that allow you to manage your savings easily through your computer, smartphone or tablet.
High-yield savings accounts at most banks and credit unions are insured by the federal government, meaning your money is safe.
Unlike with a certificate of deposit, funds in a high-yield savings account are easily accessible.
Cons
Rates for high-yield savings accounts are variable and could fall.
Some banks restrict withdrawals/transfers to only six a month.
Checks generally can’t be written using savings accounts.
Your money could get higher returns if you invest it.
Not all online banks offer branch or ATM access.
Alternatives to high-yield savings accounts
High-yield savings FAQs
Research methodology
Bankrate’s editorial team is made up of five banking experts. These experts have researched numerous banks and at least twice a month review bank websites to make sure readers stay up to date on the latest rates and bank products.
We select banks that have high annual percentage yields (APYs), low minimum balances, banks that have highly-rated apps and banks that are popular and broadly available. We also include some of the largest banks, to help readers compare those to online-only banks.
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