Savings account interest rates have reached new heights in the past two years, but a top-tier APY is just one piece of the puzzle. You also want to put your money where you won’t incur any unnecessary fees or have to maintain a huge balance to earn the advertised rate.
If you’re looking for the right place to keep your savings but aren’t sure where to start, don’t worry: we’ve got your back. The Fortune Recommends team regularly reviews more than 60 high-yield savings accounts to bring you our top picks based on annual percentage yield (APY), deposit requirements, fees, and more.
The 5 highest-paying savings rates today
If your top priority is simply finding the top interest rates, you may want to narrow your search to a high-yield savings account. Our team has partnered with industry experts at Curinos to help you find the highest savings interest rates available today, but please note that we may not have reviewed each of these banks in detail. Keep scrolling to learn more about banks we've conducted extensive research on to give savers the most well-rounded intel.
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10 best savings accounts of April 2024
*Rates updated daily but are subject to change. You can read our full methodology here.
The best savings accounts: our top picks
We rounded up accounts currently offering APYs of more than 4% to help you choose the best account for your savings. Here’s a quick look at 10 high-yield savings accounts available today.
Why we picked it
SoFi offers a savings and checking account combo—so when you sign up, you automatically get a checking account, too. With the SoFi savings account, you can score a stellar interest rate and welcome bonus.
The savings account offers a 4.60% APY and a $50 to $300 welcome bonus, depending on the direct deposit requirements you meet. You’ll also receive a debit card, so you can easily access your cash.
Why we picked it
You can earn an impressive 5.45% APY with the Priority Savings account from UFB Direct. The account boasts no fees or minimum deposit requirements and comes with a complimentary ATM card.
Why we picked it
With the Varo high-yield savings account, you can earn up to a 5.00% APY on cash, but there are some requirements you’ll need to meet first.
In order to be eligible for the 5.00% APY, you’ll earn 3% for the first month and then you must either receive direct deposits totaling $1,000 or have a positive balance on your Varo bank account and savings account at the end of the month.
And for balances above $5,000, you’ll earn a 3% APY on any amount that exceeds $5,000.
Why we picked it
With the LendingClub savings account, you can earn a 5.00% APY with few strings attached—you’ll need to make a minimum opening deposit of $100 and then maintain a balance of at least $0 to earn the APY.
Plus, even though it’s a savings account, you’ll receive an ATM card to access your cash when you need it.
Why we picked it
Opening and maintaining a Credit Karma Money Save account is easy, and there are almost no barriers to entry: You don't need to worry about meeting a minimum opening deposit or dealing with monthly maintenance fees. Plus, you can score a whopping 5.10%% APY and get increased FDIC coverage.
Since Credit Karma isn’t a bank, your deposits are held at MVB Bank and its network banks, which means you can get up to $5 million worth of FDIC insurance.
Why we picked it
TAB Bank offers a high-yield savings account with 5.27% APY—more than 11 times the national average. You only need $0.01 on deposit to earn this rate and there is no ongoing minimum balance requirement. There are also no monthly fees.
We like TAB Bank because in addition to its excellent savings rates, its rewards checking and CD rates are also phenomenal. As of April 2024, you can earn an additional 3.50% APY on funds in a TAB Spend account and up to 5.27% on a 12-month CD.
Why we picked it
At Newtek Bank, you can earn a hefty 5.25% APY on your savings and enjoy no minimum deposit or monthly fees. You’ll also get to skip pesky expenses such as service charges and transaction fees.
Since your Newtek savings account is fully online, you can easily check in on your savings via the online banking portal. Opening a new account is simple—all it takes is two minutes to fill out the necessary information.
Why we picked it
To open a Quontic high-yield savings account, you’ll only need $100. After that, you get a solid 4.50%% APY without paying any monthly maintenance fees.
Interest is compounded daily but credited to your account monthly. If you ever need help with your account, you can reach out via phone call, audio, or chat.
Why we picked it
The high-yield savings account from Cloudbank 24/7 offers a market-leading 5.26% APY with no fees and a very low minimum opening deposit of $1. It’s only accessible through Raisin, so you’ll need to create a Raisin account to get this rate.
Why we picked it
Laurel Road’s bread and butter is student loan refinancing, and it offers several account perks designed specifically for those who maintain student loans with it. Additionally, its high-yield savings accounts with rates up to 5.00% make it an attractive option for those who are only looking for a place to park a chunk of change.
What is a savings account?
A savings account is a type of deposit account offered by banks, credit unions, and other types of financial institutions. Savings accounts allow you to keep your money on deposit in exchange for earning interest. The exact interest rate will depend on the financial institution and can range from 0.01% to upwards of 5%.
Savings accounts are also a fairly liquid type of account, which means you can access your money just about as often as you want. Some banks may limit the number of withdrawals you can make in a month (typically, it’s six transactions per month), but you’re still able to exceed any withdrawal cap in place—you’ll just need to pay a fee on each additional transaction.
Finally, savings accounts are considered one of the safest places to keep your money because unlike market investments, there is no risk to your principal deposit. Plus, your money is insured up to $250,000 per depositor, per institution, as long as your bank is backed by the FDIC (or the NCUA for credit unions).
What are the pros and cons of high-yield savings accounts?
Pros
- Liquid
- Insured by the government up to $250,000
- Principal and interest are protected from loss
Cons
- APY can decrease
- Returns can’t compete with stock market investments
- There could be a cap on monthly withdrawals
Before you open a savings account, it’s important to consider the pros and cons of putting your money in one.
Of course, one of the biggest benefits of a savings account is that you can earn interest on your balance. The exact interest rate you receive may be higher or lower than the national average of 0.47% APY, but many of the high-yield accounts on our list have rates above 5.00%.
You can also rest assured that your money is safe in a savings account, which unlike some types of investments, will never allow you to lose money. Plus, most high-yield accounts are insured by the FDIC (banks) or NCUA (credit unions) up to $250,000 per depositor, per institution in the event of a bank failure.
That said, there are some downsides to keeping your money in a savings account. For one, even high-yield savings accounts don’t offer the same level of earnings as investing your money in the market. But all savings accounts are sensitive to market fluctuations, and the APY can go up or down at the discretion of your bank.
You may also be limited in how many monthly withdrawals you can make. Your financial institution might charge a fee for each additional transaction over the limit.
Savings account fees and requirements
If you plan to open a new savings account, it’s important to review the fees associated with the account and any requirements that need to be met to avoid fees. These may include:
- Monthly fees: Some financial institutions charge a monthly fee that’s meant to cover the administrative costs of providing a savings account. However, this fee can easily wipe out any interest you earn. The good news is that monthly maintenance fees can often be waived if you meet certain requirements, such as linking a checking account or maintaining a minimum balance in the savings account. Better yet, many banks and credit unions offer savings accounts with no monthly fees at all. So when shopping around for a high-yield savings account, look for one that makes it easy to avoid fees.
- Minimum deposit requirements: The minimum deposit required to open a savings account and/or earn the specified interest rate varies widely. Some banks and credit unions offer savings accounts with no minimum deposit requirement, allowing customers to open an account with any amount—even just a few dollars. Other institutions might require a minimum deposit ranging from $25 to $100 or even more. (It’s more common for premium or specialty savings accounts to come with higher minimum deposit requirements.) It’s always a good idea to check with the specific financial institution regarding their minimum deposit requirements before opening an account.
How do savings account interest rates work?
Financial institutions set their savings account rates loosely based on the federal funds rate. This is the interest rate that banks charge other banks to lend money overnight. When the Fed raises its rates, this can increase the cost of borrowing and push banks to raise their APYs to attract new customers.
The interest rate on a savings account is typically variable, meaning it can fluctuate over time. These rate changes are influenced by several factors, including monetary policy set by the Federal Reserve, general economic conditions, and competition among banks. It's a good practice to periodically check the interest rates on your savings accounts and compare them with rates offered by other institutions to ensure you’re maximizing your earnings.
What is considered a high-yield savings account rate?
The national average savings account rate is 0.47%, so a rate above that benchmark would be considered above-average. However, many banks offer high-yield savings accounts with as much as 4% to 5% APY. It pays to shop around to find the highest rates available if you’re looking for a new account.
Interest rate vs. APY: what’s the difference?
The interest rate on a savings account is essentially the base rate. The APY provides a more comprehensive view of your earnings by factoring in the effects of compounding and calculates how much you'll earn over the course of a year.
What is 5% APY on $1,000?
To determine how much $1,000 will make in a savings account, you need to know the APY of the account and the length of time you plan to keep the money deposited. Additionally, the frequency of interest compounding (daily, monthly, or annually) can impact your final amount.
For example, if you deposited $1,000 into a high-yield savings account that earns 5% APY and compounds annually, you’d have a total balance of $1,050 at the end of one year (assuming you don’t make any more contributions). If the interest compounds daily, you’d have a bit more.
What is 5% APY on $10,000?
If you deposited $10,000 into a savings account that earns 5% APY and compounds annually, you’d have a total balance of $10,500 at the end of one year (assuming you don’t make any more contributions). If the interest compounds daily, you’d have $10,512.67.
How to choose the best savings account for you
Choosing the right savings account requires careful consideration of your financial needs, preferences, and goals. Here are a few considerations to keep in mind as you shop around.
- Interest rates: One of the most important features of a savings account to evaluate is the interest rate, or APY. This dictates how much your money can earn; the higher the rate, the more your money can grow over time. Start by reviewing the national average rates for savings accounts, which are regularly updated by the FDIC. Then look for a high-yield savings account that offers a rate at least 10 times that average.
- Balance requirements: Some accounts require a minimum balance to avoid fees or to earn the advertised APY. Ensure you're comfortable with any minimum balance requirements. Or better yet, look for an account that doesn’t have any minimums, especially if you’re just getting started with saving and don’t have a large balance built up yet.
- Fees: Be wary of monthly maintenance fees, excessive withdrawal fees, and other charges that could eat into your interest earnings. Some accounts may waive fees if you maintain a minimum balance or meet other criteria, while others don’t charge these types of fees at all. Decide what types of fees you’re comfortable with and whether the perks of the account outweigh the potential costs.
- Account access: Many savings accounts are provided by online banks, which means you may not have physical branch access. If that’s the case, be sure the account offers access in other ways, such as via a large ATM network. Alternatively, you might prefer a financial institution that offers face-to-face support.
- Digital tools: If you prefer the convenience of digital banking, be sure the account you choose is offered by a bank with robust online features and tools, such as a user-friendly mobile app, free and fast online transfers, digital deposits, and other tech-friendly options.
- Customer service: Finally, it’s important to consider how you’ll get in touch with a representative if you have a question or need help with your account. Some financial institutions take a hands-off approach and don’t offer easy access to a real human. Others are just a phone call or email away. Make sure the bank’s customer service options are aligned with your preferred method of communication.
Alternatives to savings accounts
A savings account is an important tool that just about anyone should have as part of their larger financial plan. However, it isn't always the best place to put your money. There are other types of deposit accounts to consider as well:
Traditional savings account vs. high-yield savings
A high-yield savings account isn’t that much different from a traditional savings account. Both are deposit accounts offered by financial institutions that allow you to set aside money and earn interest on the balance. The primary difference is that a high-yield savings account offers a much higher APY on your funds than a typical savings account. And through the power of compound interest, you’ll earn interest on the principal balance and any interest you earned previously. That means you’ll essentially earn interest on your interest, allowing your savings to grow that much faster.
Savings account vs. checking account
A savings account is designed for storing money over a longer period and earning interest, which encourages saving. It may have limitations on the number of withdrawals or transfers per month. A checking account, on the other hand, is intended for managing daily transactions and offers more accessibility. It usually provides a debit card, check-writing capabilities, and often has no limits on the number of transactions. However, checking accounts generally offer lower or no interest compared to savings accounts.
Savings account vs. certificates of deposit (CDs)
Savings accounts and CDs are both savings vehicles that offer interest on your deposits. However, while savings accounts provide relatively easy access to funds with a variable interest rate, CDs lock in your money for a specified term (from a few months to several years) at a (usually) higher, fixed interest rate. Withdrawing funds from a CD before its maturity date typically incurs a penalty, which can reduce the earned interest.
On the other hand, savings accounts may have limits on the number of monthly withdrawals, but offer more liquidity than CDs. When choosing between the two, it’s crucial to weigh the importance of access to funds against potentially higher fixed returns with CDs.
Savings account vs. MMAs
Savings accounts work similarly to money market accounts (MMAs) in that you’ll earn interest on your balance and can easily access your funds. While savings accounts focus primarily on providing a safe, liquid place to store cash, MMAs often combine the features of both savings and checking accounts, providing higher interest earnings and more flexible access to funds, such as through checks or debit cards. However, MMAs might require higher minimum balances to avoid fees or to earn the advertised rate.
Overall, a savings account would be the best choice in situations where you prioritize earning some interest on your money while maintaining relatively easy access to the funds, without exposing the principal to market risk.
How to open a high-yield savings account
When you’re ready to open an account, you’ll follow these general steps:
- Research financial institutions: It’s important to do some research ahead of time to compare interest rates, fees, features, and customer reviews among various financial institutions. Decide whether you’re comfortable with an online-only bank or prefer a bank or credit union with physical branches.
- Check the requirements: Find out if you need a minimum deposit to open an account or if you’re expected to maintain a minimum balance to avoid fees. Be sure you understand the terms of the account fully.
- Visit the bank or apply online: Whether online or in-person, you'll need to contact the financial institution for an application and be prepared to share the details mentioned below. Online applications often allow you to save and return if needed.
- Fill out the application: You will need to provide some personal information, including your Social Security number or individual taxpayer identification number, a valid ID (such as a passport or driver’s license), and contact information.
- Deposit funds: When your application gets approved, all that’s left is to deposit your funds into the account and start earning.
Our methodology
To narrow down our top picks for the best high-yield savings accounts, the Fortune RecommendsTM team evaluated more than 60 online savings accounts from a variety of traditional brick-and-mortar banks, online banks, and credit unions.
All the accounts on our list are available to customers in the U.S. no matter where you’re located, subject to the terms of each account. The savings accounts on this list offer an APY at least 10 times the national average.
We ranked each account in these five core categories:
- APY (40%): This number represents the real rate of return on your balance; the higher the APY, the better.
- Monthly fees (10%): Some banks charge monthly maintenance fees. We ranked banks with lower (or zero) monthly fees higher on the list.
- Minimum amount to earn APY (10%): To earn the high APY, some banks require that you maintain a certain dollar amount in the account, which we view as a limiting factor.
- Minimum opening deposit (15%): Some financial institutions require a deposit amount when you open your account. We rate a higher opening deposit as less attractive.
- Customer support (5%): Top picks offer customers various ways to get in contact: chat support, by phone, or even email—phone support was weighted more heavily.
- Budgeting and money management tools (5%): Some banks offer digital tools that make it easier for customers to track their spending and savings, and these receive bonus points.
- ATM or debit card (5%): While high-yield savings accounts are meant for long-term saving, some banks provide an ATM or debit card so you can easily spend the funds in your account.
- Mobile app rating (5%): Most banks have a mobile app you can use to manage your account. We looked at banks’ mobile app ratings in the Apple store.
- Security features (5%): When we evaluated banks, we checked if they offered features like website encryption, multi-factor authentication, and fraud protection to ensure that customers’ financial and personal information is kept safe.
The rates and fee structures for the accounts mentioned are available for limited periods, and APYs are subject to fluctuation, which could impact how much interest you earn. All the bank accounts and credit unions on this list are insured by the FDIC and NCUA, respectively. To open an account, financial institutions, including banks and credit unions, require a deposit of new money, so you may not be able to transfer money you already had in an account at that bank.
Frequently asked questions
Are savings accounts liquid?
In general, saving accounts are highly liquid accounts, meaning it's fast and easy to access your funds when needed. Federal law used to dictate that account holders could transfer funds out of their accounts up to six times per month. However, this rule was paused in 2020 and you can now make an unlimited number of transfers and withdrawals from savings accounts in many cases. However, some financial institutions still limit the number of withdrawals allowed per month and may impose a fee for excessive transactions.
Are savings accounts safe?
Savings accounts are generally safe, especially when they are held at banks that are insured by the FDIC or at credit unions insured by the NCUA. Both entities insure deposits up to $250,000 per depositor, per institution, for each account ownership category.
Do I have to pay taxes on money in a savings account?
The interest you earn in a savings account is usually subject to income tax. If you earn $10 or more in interest from a savings account in a year, the bank or financial institution will send you a Form 1099-INT, which reports the amount of interest you earned. Even if you don't receive a Form 1099-INT (e.g., if you earned less than $10), you're still generally required to report and pay tax on any interest income.
Is it worth putting money in a savings account?
If your goal is to keep cash safe for short-term needs or emergencies, a savings account is a good option since it offers easy access and security for your money.
What does a savings account do?
A savings account is a type of bank account that allows you to deposit money, keep it safe, and earn interest on your balance over time. It's designed for short-term savings, offering easy access to your money with lower risk compared to other investment options.
Can you lose money in a savings account during a recession?
Savings accounts are generally considered safe and are usually backed by the government. In the rare event of a bank failure, if the bank is not insured or if your savings exceed the insured amount, there is a risk of losing money. However, this situation can be avoided by keeping your money in an FDIC- or NCUA-insured account up to the federal maximum of $250,000 for insurance.
