Best High-Yield Savings Accounts For April 2024 (2024)

We compared 287 savings accounts at 175 nationally available banks and credit unions to find some of the best high-yield savings accounts available.

Annual percentage yield (APY) was a main factor but not the only factor considered when building our list of the best accounts.

• BrioDirect High Yield Savings Account: 5.35% APY
• Ivy Bank High-Yield Savings Account: 5.30% APY
• TAB Bank High Yield Savings: 5.27% APY
• UFB Secure Savings: Up to 5.25% APY
• EverBank Performance℠ Savings: 5.15% APY
• Bask Interest Savings Account: 5.10% APY
• LendingClub High-Yield Savings Account: 5.00% APY
• Varo Savings Account: 3.00% to 5.00% APY
• Laurel Road High Yield Savings®: 5.00% APY
• Quontic Bank High Yield Savings: 4.50% APY

See below to learn why we picked each account, including its pros and cons, and to access individual bank reviews.

Annual percentage yields (APYs) and account details are accurate as of April 8, 2024.

• Are Savings Interest Rates Going Up?
• What Is A High-Yield Savings Account?
• High-Yield Savings Account Terms To Know
• Are High-Yield Savings Accounts Safe?
• Online Savings Accounts Fees
• How To Choose a High-Yield Savings Account
• Pros And Cons Of High-Yield Savings Accounts
• How To Open a High-Yield Savings Account Online
• Best Ways To Use a High-Yield Savings Account
• Are High-Yield Savings Accounts Worth It?
• Alternatives To High-Yield Savings Accounts
• Methodology
• Frequently Asked Questions (FAQs)

High-yield savings account rates were on a steady upward trend through 2022 and 2023. That’s largely due to the Federal Open Market Committee’s efforts to fight inflation by steadily increasing the federal funds rate, which is the interest rate at which banks lend money to one another overnight.

However, inflation began to cool in late 2023. As a result, the FOMC has not changed the federal funds rate since July 2023, when it set a target range of 5.25% to 5.50%. The committee opted to maintain this rate as recently as March 2024. In March, Federal Reserve Chair Jerome Powell expressed that inflation is still a concern and acknowledged the risks of cutting rates too quickly. At the same time, he made it clear that interest rates are likely to begin trending downward this year.

We expect inflation to come down, the economy to keep growing. If that’s the case, it will be appropriate for interest rates to come down significantly over the coming years.
– Federal Reserve Chair Jerome Powell, March 2024

When the federal funds rate adjusts, banks typically follow suit and shift rates for savings and other deposit accounts accordingly. Rate hikes often translate to banks paying higher rates for deposit accounts. Throughout 2023, the national average savings rate steadily increased alongside the federal funds rate—from 0.33% in January 2023 to 0.46% in December 2023, according to the FDIC.

Recently, savings rates have been stabilizing. For 2024, the national average was 0.47% in January, 0.46% in February and 0.47% in March. While 2023 saw rising consumer savings rates, 2024 has seen mostly consistent rates so far. In the coming months, any Federal Reserve rate cuts can trigger further reductions in savings account APYs.

Learn about today’s savings rates and the APYs institutions currently offer with the federal funds rate in mind.

How High Will Savings Interest Rates Go in 2024?

No one knows for sure how high savings interest rates will go in the near future, but it’ll depend largely on what happens with the federal funds rate. Currently, the target federal funds rate ranges between 5.25% and 5.50%—the highest it’s been in over 20 years.

However, the Federal Reserve has held rates steady in its recent meetings. Looking ahead, the FOMC projects multiple rate cuts by the end of 2024.

A high-yield savings account is a type of savings account that typically offers higher interest rates than a traditional savings account. You can generally find high-yield savings accounts at online banks and credit unions. These financial institutions normally don’t carry the overhead costs or profit-margin requirements of a traditional brick-and-mortar bank, allowing them to pass those savings on to customers through higher rates and lower fees.

Interest rates vary based on several factors, but it’s not uncommon to find high-yield savings accounts that offer up to 4.00% APY or more. A high-yield savings account may earn as much as 10 times the national average rate on standard savings accounts.

When researching high-yield savings accounts, there are certain terms you’re likely to come across. Understanding what they mean can help you to find the right savings option.

• Annual percentage yield (APY). The annual percentage yield or APY on a savings account reflects the interest you could earn on your savings over the course of a year when compounding interest is factored into the equation.
• Compounding interest. Compounding interest is interest earned on your previously accrued interest. It’s calculated based on your principal deposits and the interest you earn as you go.
• High yield. High yield means that a savings account offers a higher-than-average interest rate.
• Minimum deposit requirement. A minimum deposit requirement for a high-yield savings account is the amount you’ll need to deposit to open the account. Depending on the bank, this may be as low as $1 or even $0.
• Monthly maintenance fee. A monthly maintenance fee is a fee certain banks charge you to keep your account open. The advantage of opening a high-yield savings account with an online bank is that they don’t usually charge monthly maintenance fees.
• Online bank. Online banks operate on the internet and typically do not have branches. Instead, you access your money via web browsers or mobile banking apps. Some online banks also offer ATM access.

High-yield savings accounts are safe because they are generally protected by insurance and security features.

You can’t lose money in a savings account if you’re saving at an insured bank or credit union, as long as your balance is within coverage limits. The FDIC insures accounts at member banks up to $250,000 per depositor, per account ownership type and per financial institution. The National Credit Union Administration (NCUA) extends the same amount of coverage to member credit union deposits.

If an insured bank or credit union fails, you can’t lose money up to the combined maximum of $250,000 for your deposit accounts. Given the rarity of bank failures, there’s little risk of ever losing money. You may, however, lose some of the value of your savings if interest rates do not keep up with inflation. When inflation is high, your money may lose some of its spending power.

In terms of security, banks and other financial institutions that offer high-yield savings accounts institute a number of measures to protect your personal and financial information. Those measures can include multifactor authentication, data encryption and secure data storage.

Generally, online savings accounts have fewer and lower fees than traditional savings accounts. Many online savings accounts have no monthly maintenance fees or minimum account balance requirements.

Each of our picks for the best online savings accounts has no monthly maintenance fee (or has the option to waive the fee by signing up for e-statements). But that doesn’t mean these accounts are totally fee-free. They may charge for things like paper statements and excessive transactions. As with any account or financial product, it’s important to read the fine print to make sure you’re aware of any fees before opening an account.

Choosing the best high-yield savings account isn’t always obvious, so comparing accounts will help you find the best option. Here are some factors to consider before opening an account.

Interest Rate

Perhaps the most important factor when choosing a high-yield account is the interest rate. Earning a higher interest rate will help maximize your savings more quickly.

Deposit Requirements

Some accounts require a minimum opening deposit for a new account. You may also need to maintain a specific balance to earn interest or avoid monthly fees.

Account Fees

Fees can cancel out interest earned on your savings. Check the account’s fee schedule to determine if you’ll be charged a monthly service fee or other fees. Some banks will waive fees if you keep a certain amount in your account.

Compounding Frequency

Interest on a savings account can compound daily, weekly, monthly, quarterly or annually, depending on the bank. When interest compounds, you earn interest on your interest. Choosing an account that compounds more frequently can help you earn more interest over time.

Pros

• Higher interest rates than traditional savings accounts
• Lower or no fees
• User-friendly mobile platforms
• Unique savings tools

Cons

• In-person banking may not be an option
• Cash withdrawals and deposits may not be available
• May have requirements you must meet to earn the highest APY
• Interest rates are variable and can change at any time

You can open a high-yield savings account relatively quickly. Once you’ve found an account that matches your needs, you’ll need to fill out an online application. The bank may ask for this specific information to verify your identity during the application process:

• Name
• Address
• Email address
• Phone number
• Date of birth
• Social Security number
• Number from your driver’s license or other government-issued photo ID
• Funding source account information

If you’re opening a joint account, both parties will need to provide personal and financial information.

Once the account is approved, you can fund it using a linked bank account or other acceptable methods.

Because of their earning potential, high-yield savings accounts are excellent for reaching savings goals. Having a specific account for savings goals allows you to keep those funds separate from your everyday spending account. You can use a high-yield savings account to save for a variety of goals and large expenses, including:

• An emergency fund
• Vacation costs such as flights, hotel stays, meals and souvenirs
• A wedding
• Home renovations or repairs
• Furniture and appliances
• A down payment on a home
• A new car
• Educational costs such as tuition, extracurriculars and living expenses (but consider a 529 plan for long-term education savings)

High-yield savings accounts are ideal for short-term financial goals, but they’re not good for holding your retirement savings. A tax-advantaged retirement or investment account typically offers better returns and tax savings not found with high-yield savings accounts.

A high-yield savings account is an effective savings vehicle if you have funds you want to set aside for short-term financial goals or needs. It’s not a replacement for a retirement or tax-advantaged investment account, but it’s a great option for certain savings goals.

For example, a high-yield savings account is a good place to park your emergency fund. You can access the funds easily, but they earn more interest than they would in a traditional savings account. On the other hand, it wouldn’t be worth keeping your kid’s college savings in a high-yield savings account if you have a decade or longer to invest.

A high-yield savings account isn’t the only place to keep your savings. Here are some alternatives to consider.

High-Yield Savings vs. Money Market Account

Money market accounts are deposit accounts that combine features of checking and savings accounts. You might earn interest the same way you would with a savings account. But you may also be able to write checks from your account or make purchases using a linked debit card. These are features you typically don’t get with a savings account.

So, which is better, a money market account or high-yield savings?

The answer depends on what you need the account to do for you, how much you’re willing to pay for it and what kind of APY you’re hoping to earn. Money market accounts can offer more flexibility and access to your savings, though you still may be limited to a certain number of withdrawals and transfers per month. On the other hand, high-yield savings accounts could offer better interest rates.

High-Yield Savings vs. Certificates of Deposit (CD)

Certificates of deposit (CDs) are similar to savings accounts in that you earn interest on your balance. The key difference is that money you deposit into a CD is locked up for a specific time period, such as three months or one year. If you withdraw your savings before the CD matures, you could forfeit some or all of the interest earned.

The main benefits of CDs over high-yield savings accounts are higher rates and fixed earnings since your rate generally won’t fluctuate over the term of your CD. Though CDs allow you to lock in a rate for a specific period, the downside is it’s not as easy (or cheap) to access your money. For this reason, CDs make sense if you’re sure you won’t need to access your savings before the maturity date.

Other High-Yield Savings Account Alternatives

• Cash management accounts. Cash accounts are usually associated with taxable brokerage accounts, and these accounts are designed to hold money you plan to invest later or receive after selling investments you own. A cash account can function like a checking account and earn interest like a savings account, often at competitive rates.
• Investment accounts. These accounts are designed for investing in the financial markets. A brokerage account could yield a substantially better return than a savings account, but you risk losing your money.

To create a list of the best savings accounts, Forbes Advisor analyzed 287 savings accounts at 175 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each account on 12 data points within the categories of APY, fees, minimum requirements, customer experience, digital experience and in-person access.

Here’s the weighting assigned to each category for high-yield savings accounts:

• APY: 65%
• Fees: 10%
• Digital experience: 10%
• Customer experience: 7%
• Access: 3%
• Minimum deposit requirement: 2.5%
• Minimum balance to avoid monthly fee: 2.5%

We also considered whether there were complex tier structures or requirements to earn the APY or other stipulations to earn the APY. Minimum deposit requirements of $10,000 or higher affected scores negatively, as did high minimum balance requirements to avoid fees. The savings account must be nationally available to appear on this list.

To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.

Banks We Monitor

We included these institutions in our research for the best high-yield savings account rates: Affirm,Alliant Credit Union,Ally Bank,American Express,Axos Bank,Bank of America,Bank5 Connect, BankDirect,BankPurely, Barclays,Bask Bank,BrioDirect Banking,Capital One,Charles Schwab Bank,Chase,Chime®,CIBC Bank,CIT Bank,Citibank,Citizens Access, Colorado Federal Savings Bank,Bread Financial,Connexus Credit Union,Consumers Credit Union,Discover,Dollar Savings Direct, E*Trade Bank, Fitness Bank,FNBO Direct,HSBC,HSBC Direct,iGoBanking, Incredible Bank,Live Oak Bank,Marcus by Goldman Sachs,My eBanc,MySavingsDirect,Navy Federal Credit Union,nbkc Bank,PNC Bank, Popular Direct,Quontic, Rising Bank,SalemFiveDirect,Sallie Mae Bank,SFGI Direct, SmartyPig Bank,Synchrony Bank,U.S. Bank, UFB Direct,Varo BankandVIO Bank.

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