Savers who want to earn the most interest on their money should look at the best high-yield savings accounts. With interest rates on the rise, savers are earning higher rates in HYSA than they have in more than a decade.

These accounts offer the functionality of traditional savings accounts but receive a much higher interest rate to grow your balances. Many of these accounts have no opening balance or minimum balance requirements, so they are open to every type of saver. Learn more about how to choose your savings account, how they work and the best type of account based on your goals.

My Banking Direct

Western Alliance Bank

UFB Direct

Valley Direct High-Yield Savings Account

Milli Bank

Bread Savings

Bask Interest Savings

Betterment Cash Reserve

CIT Platinum Savings

Sofi Savings & Checking

Quontic High-Yield Savings

Live Oak Personal Savings

Barclays Bank

Discover® Online Savings

Best high-yield savings accounts compared

More high-yield savings accounts

High-yield savings account guide

What is a high-yield savings account?

A high-yield savings account is a traditional savings account but with a higher interest rate. Just like savings accounts, they are liquid, so you can add or withdraw money at any time. Additionally, they are guaranteed up to $250,000 by the FDIC.

How do high-yield savings accounts work?

High-yield savings accounts offer much higher rates of interest than traditional savings accounts. They work the same way as traditional savings accounts, but many are online-only accounts that cannot be opened in a traditional brick-and-mortar branch.

Many high-yield savings accounts are offered by online banks and have reduced fees and balance requirements. In some cases, there are no minimum balance requirements to open or maintain an account. Plus, many eliminate monthly service charges, so there are no costs to keep your account open.

However, some high-yield savings accounts require larger balances to avoid fees or earn the best savings account interest rates. Banks may implement tiered interest rates that offer the best rates to certain types of customers.

Savings account calculator

Wondering how a high-yield savings account can impact your money over time? Input your initial deposit, the interest rate, and your preferred duration to see a clear projection of your savings' growth.

How to choose your high-yield savings account

When comparing the best savings accounts, customers should focus on fees, interest rates and the functionality of the accounts. Here are a few features that matter most when choosing your account.

• Opening balance requirement. How much do you need to deposit when opening your account? Many accounts allow customers to open an account with no minimum balance or as little as one dollar.
• Monthly fees. Most banks waive the monthly fees when you maintain a minimum balance. Some banks waive fees entirely.
• Monthly minimum balance. Some high-yield savings accounts require customers to meet a minimum balance to earn the best savings account rates.
• Interest rate. The amount of interest you'll earn based on your balance is advertised so you know how much your money will make.
• Interest rate tiers. Does the bank offer different interest rates based on your balance? Some banks reserve the highest rates for larger customers, while others cap the balances that can earn the best savings rates. For example, CIT Platinum Savings pays a higher rate on balances of $5,000 or more.
• Compounding. When your interest compounds, the accrued interest is added to your balance, and the new, higher balance then also earns interest. Ideally, your interest should compound at least monthly.
• Access to account. How easy is it to access your funds, and how long does it take? Some high-yield savings accounts also offer an ATM card to withdraw cash.

Frequently asked questions (FAQs)

What do you need to open a high-yield savings account?

To open a high-yield savings account, you'll need to provide your name, contact information, Social Security Number and date of birth. Additionally, you should be prepared to make an initial deposit to fund your account and start earning interest. It is wise to have existing bank account information so you can link your accounts for future transfers.

Are high-yield savings rates increasing?

Yes, high-yield savings rates have increased as the Federal Reserve has raised rates to combat inflation. Customers with money in their savings accounts benefit from these rising rates by earning more interest.

How do banks determine APYs for high-yield savings accounts?

Savings account interest rates are represented as annual percentage yield (APY) to factor in compounding interest. APY is based on the account's interest rate and the number of times the bank pays interest each year. The APY formula is 100 [ (1 + Interest/Principal)(365/Days in term) - 1], but most people use a calculator instead of figuring it out by hand.

What is a good APY for a high-yield savings account?

A good APY depends on the current market, economic conditions and the available alternative options. In today's savings account interest rate environment, you should aim for an account that earns at least 3.50%, with the best savings accounts offering upwards of 4.5%. Many banks offer interest rates at this level or higher without charging monthly fees or requiring large balances.

Can you lose money in a high-yield savings account?

Bank accounts are insured for up to $250,000 per person at each bank. If you keep your balances below this level, you will not lose money, even if the bank goes out of business.

How often do savings rates change?

Unlike CD rates, banks change savings account interest rates on a regular basis. They adjust rates based on market conditions, what competitors are doing and how much they need deposits. If your bank's interest rates are not competitive, consider opening a new high-yield savings account.

†5.36% annual percentage yield (APY) is accurate as of 01/17/2024 and subject to change at the Bank's discretion. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.

^No account activity or maintenance fees.

* APY as of June 25, 2024. APYs vary, so check with your financial institution to get the most up-to-date information.

* * Withdrawals on CDs before maturity date are subject to penalties. Money market funds are limited to 6 withdrawals per statement cycle. High-interest checking accounts require 10 debit card point of sale transactions of $10 or more per statement cycle to earn the maximum APY per account balance tier. If the qualifying activity requirement is NOT fulfilled, the interest rate paid on the entire balance will be 0.10% APY. APY stands for Annual Percentage Yield.