Best high-yield savings accounts for April 2024

A high-yield savings account is a deposit account that typically offers between 10 and 20 times the interest rate of a traditional savings account. Unlike a checking account which allows for everyday spending and frequent withdrawals, a savings account is generally meant to sit and earn interest. If you’re an adult saving money for something in the future, a high-yield savings account might be a safe, lucrative option for you.a

If you want to add a high-yield savings account to your portfolio, the biggest feature to consider is the APY (annual percentage yield). APY represents the return you’ll get on money deposited into your savings account. Some banks require you to maintain a minimum balance to achieve the highest APY, while others only offer the highest APY up to a certain point. This list will help outline some of these different terms for you.

Best high-yield savings accounts summary

*Interest Rates Current as of November 24, 2023

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There is no best high-yield savings account for everyone. Before reading more about each of our top picks, consider your financial situation and what features in a savings account will be most helpful.

LendingClub High-Yield Savings

Best overall high-yield savings account

LendingClub’s High-Yield Savings account is our overall winner because it offers a high rate and a handful of helpful features. Currently, LendingClub doesn’t have a required minimum balance for earning interest. There is also no limit or cap on earning the highest APY, meaning a balance of $0.01 earns the same annual rate as $100,000.

Interested people should note that opening a High-Yield Savings account with LendingClub requires a $100 minimum initial deposit. However, there are no minimum balance requirements once this initial deposit has been made.

Account features from LendingClub include 24/7 mobile banking, a complimentary ATM card, and free internal and external transfers, with some limitations. There is no monthly service fee associated with this account.

Though LendingClub doesn’t offer the highest APY rate of the accounts we reviewed for this list, we like it the most because of its flexibility and exceptional customer service. Of the banks with APY offerings above 4.0%, LendingClub has some of the most glowing user reviews. If the $100 deposit isn’t a barrier, LendingClub offers reliable, competitive savings accounts.

UFB Best Savings

Best for no limits to earning the best APY

UFB Direct’s Best Savings account offers a high rate with no minimum balance required to earn interest. All balances earn the same high-yield APY. The account doesn’t require a minimum balance, making it accessible and consistently lucrative, regardless of your balance. 

The account has no maintenance or service fees and includes a free ATM card. Not all online banks offer ATM access, so look out for this feature if you plan to withdraw cash.

Ultimately, customer service reviews kept the UFB Best Savings account from being the overall winner. Though it’s a division of the reputable Axos Bank, user reviews and feedback were not great for this brand. Still, if the slightly higher APY rate makes the UFB Best Savings account more enticing, it’s worth considering.

Bask Bank Interest Savings Account

Best for no minimum balance

The Bask Interest Savings Account offers one of the highest APYs here with no minimum balance requirements. With zero monthly account fees, the Bask savings account is a newer option with few barriers to enrollment.

As an online-only division of Texas Capital Bank, those who want access to a physical branch and ATMs should look elsewhere. Bask doesn’t have exceptional customer service reviews but offers extended phone support on weekdays.

Bask is an all-around solid choice, with its high APY standing out from most of the pack. New accounts must be funded within 15 days, so don’t fill out the application until you can link an external account and transfer funds.

CFG Bank High Yield Money Market Account

Best for money market savings account

CFG Bank’s High Yield Money Market Account is the only money market savings account on this list. Money market accounts are similar to savings accounts but include helpful features you normally get with checking accounts, notably the ability to write paper checks. This particular account earns a high APY if account holders maintain a $1,000 minimum daily balance.

You may deposit funds at any time, and the account allows for various withdrawal methods, though only six times per month, similar to traditional savings accounts. Funds may be held and unavailable for 30 days after setting up the account. If the account balance drops below $1,000, you must pay a $10 monthly maintenance fee.

This account comes with the highest minimum initial deposit of the accounts in this review, $1,000. Minimums and monthly fees put this account out of reach for some, but the relatively high APY may be enough to make it worth considering.

Quontic High-Yield Savings

Best for getting cash anywhere

Quontic is a New York City-based, online only banking service that offers checking as well as savings accounts, easy access through their mobile app, and best of all a network of over 90,000 fee-free ATMs in the MoneyPass network, Citi ATM Community Network and the AllPoint® Network, among others.

Quontic’s high-yield savings accounts offer a very competitive APY, even for online-only banking services. They also offer high-yield checking accounts, certificates of deposit (CDs), money market accounts, and bitcoin rewards checking that sets them apart from other providers in their class.

Quontic also offers loans and mortgage refinancing.

Varo Savings Account

Best for high APY

The Varo Savings Account currently boasts the highest APY rate of any account on this list. As long as account holders receive direct deposits totaling $1,000 or more and end the month with a positive balance in their Varo Bank and Savings accounts, they’ll earn the top APY on their balance next month.

Savers should note that the top APY only applies to balances below $5,000, with any higher balance earning a lower, but still very good, rate. Even if you don’t receive $1,000 in direct deposits every month, you’ll still earn an interest rate well above average.

As mentioned above, you must open Varo Bank checking and savings accounts together if you sign up. Varo doesn’t charge a monthly fee and offers several helpful savings features, including automatic transaction round-ups. If you care about earning the highest possible APY, a Varo Savings Account may be the right choice.

SoFi Checking and Savings Account

Best for checking and savings combo

If you prefer the convenience of having both your checking and savings accounts under one login, SoFi Checking and Savings may be the best choice. This account offers a competitive APY to anyone receiving qualifying direct deposits into their SoFi bank accounts. There’s no minimum direct deposit to meet this requirement. Those who don’t receive direct deposits earn a lower interest rate.

SoFi’s high-yield savings account comes with features like AutoSave, which automatically moves a portion of your paycheck into your savings account every payday. Like a limited number of others, SoFi also offers Roundups. This feature rounds transactions from your checking account to the nearest dollar and transfers the difference into your savings account.

SoFi doesn’t charge any monthly fees and has no minimum balance requirement. It also offers a bonus of up to $250 for new account holders with qualifying direct deposits. If you prioritize convenience, the SoFi Checking and Savings accounts may fit your banking preferences well. You must open a checking and savings account when signing up with SoFi Bank.

Upgrade Premier Savings

Best for ease of use

With federally-insured Cross River Bank as its partner, Upgrade’s Premier Savings account stands out for its stellar online user reviews, top-rated mobile app, and for not having account fees, overdraft fees, annual fees, or transfer fees. These make Upgrade’s Premier Savings account one of the easiest to enroll in and use.

The account offers one of the higher APY rates in this review, but interest only applies to balances over $1,000. If your daily balance drops below that threshold, your balance will earn zero interest that day.

Upgrade offers a second savings account called the High Yield Savings Account, though it’s only available to existing Upgrade Rewards Checking Account customers. Regardless, the Premier Savings account offers a higher APY than the High Yield Savings Account, making it more enticing. Upgrade's Premier Savings is particularly user-friendly for those with a savings account balance above $1,000.

Live Oak High Yield Online Savings Account

Best for small business owners

Live Oak offers a competitive APY with its High Yield Online Savings Account, however, its yield is in the bottom half of other accounts on this list. Live Oak is an online-only bank, so you have to be comfortable with doing all your banking online. The bank also markets itself to small business owners, which could be an advantage if you are a single proprietor or freelancer who wants to take advantage of a single bank for both personal and business banking.

The benefit of Live Oak's small business offerings include access to SBA, USDA and commercial loans and high-yield CDs, which are good for businesses with a lot of liquid capital they're saving for investment.

Ally Online Savings Account

Best for additional savings features

The Ally Online Savings Account offers a variety of tools to help you organize and boost your savings account. Account holders can divide savings into as many as 10 “buckets” to track specific goals or allocate funds for specific purposes, like an emergency or down payment fund. You can round up purchases and automatically transfer the difference to savings. There’s also a unique “Surprise Savings” feature, which analyzes linked checking accounts and automatically moves cash into your savings account when it’s able.

Ally offers a competitive APY, though it’s not currently as high as the top reviewed accounts. There is no minimum balance to earn interest and no monthly maintenance fees or minimum balance requirements to avoid fees.

Like many other accounts reviewed here, account holders are limited to six monthly withdrawals. Suppose you benefit from organizing your savings into visually distinct categories or having a target date for your savings goals. In that case, Ally offers uniquely impressive features to help you reach your savings goals.

Why you should get a high-yield savings account

A high-yield savings account can earn you more interest on your money than a traditional savings account. They’re considered extremely safe, as funds are insured up to $250,000 per depositor per financial institution by the Federal Deposit Insurance Corporation (FDIC). That means you’ll get up to $500,000 in FDIC coverage for joint accounts. Even if the bank goes out of business, you’re guaranteed to get your funds back, up to those limits, by the government.

If you’re working towards a savings goal, whether short- or long-term, and don’t mind having different accounts at different banks, a high-yield savings account can help you reach your goals faster. Some savvy savers open multiple savings accounts at different banks for different goals and purposes.

How to choose a high-yield savings account

No single high-yield savings account is perfect for everyone. Consider the most helpful features you want in an account. Are you simply looking for an account with the highest return on your money? In that case, pick an account with the highest APY. Do you need to make same-day transfers to and from your savings account? Do you want a bank that automatically rounds up checking account transactions to boost your savings? Each bank has different features and specialties, so it’s worth finding the bank that works best for your spending and saving habits.

How to open a high-yield savings account

If you’re ready to open a new high-yield savings account, follow these general steps to open an account:

1. Shop around for the best rates: If high yields are important to you, start by shopping around and comparing current interest rates. APY enables you to compare accounts apples-to-apples. Also, take note of any minimums or fees.
2. Complete the online application: Most banks offer online applications that are easily completed in under 10 minutes. Ensure you have your contact information, Social Security number, and other supporting documents to finish in one sitting.
3. Fund your new account: Connect an existing checking or savings account and follow instructions to move funds to your new account.

High-yield savings accounts alternatives

One alternative to a high-yield savings account is a certificate of deposit (CD), where you receive an interest rate premium in exchange for giving a bank a lump-sum deposit locked away for a specific period. A traditional savings account or money market account are also safe alternatives. Riskier options may yield even bigger returns on your money and can include brokerage accounts, which enable you to buy and sell investments, including stocks, bonds, ETFs, and mutual funds

Methodology

For this review, our team gathered data and compared a large list of banks and financial institutions, focusing on interest rates, costs and fees, account features, and past customer reviews. While there’s no perfect bank account for everyone, the excellent high-yield savings accounts on this list are industry leaders who could make a good fit for a wide range of users.

Frequently asked questions (FAQs)

What is a high-yield savings account?

A high-yield savings account is a deposit account that earns a higher interest rate than a traditional savings account. Banks express this rate of return as APY, short for annual percentage yield. A high-yield savings account differs from a checking account in that the funds stored are not meant to be accessed or withdrawn regularly.

Money can safely sit and accrue interest in a high-yield savings account. Because of the higher interest rates, these accounts typically grow faster than traditional savings accounts.

How do high-yield savings accounts work?

High-yield savings accounts allow users to deposit funds for long-term storage. Some financial institutions require account holders to meet activity or balance minimums to earn interest or qualify for the top rates. For example, a bank may require accounts to hold a balance of $1,000 or more to earn interest. APYs may vary unless you maintain a specific balance or receive direct deposits, for example.

Rates can change anytime, so monitor your account for any changes if you’re concerned. A high-yield savings account may not include a debit card, so be on the lookout for that feature if you plan to withdraw cash. Government regulations require six or fewer monthly withdrawals from savings accounts, so consider an online checking account as an alternative if you need to access funds more frequently.

How often do high-yield savings account rates change?

High-yield savings account rates can change at any time, though they usually fluctuate in tandem with Federal Funds interest rate set by the Federal Reserve Bank, which meets eight times per year to update to manage this rate.

Are high-yield savings accounts safe?

High-yield savings accounts in the United States are insured by the Federal Deposit Insurance Corporation, with your money being insured up to $250,000 per depositor per institution. If you open an account with a credit union, it is similarly insured by the National Credit Union Administration (NCUA).

Do you pay taxes on interest earned in a high-yield savings account?

Interest earned from a high-yield savings account is generally subject to income tax. Any account holder who earns $10 or more in interest during the year will receive a 1099 form used when filing your annual tax return.

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