4.4/5
We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks.
Minimum deposit and fees
APY APY = Annual Percentage Yield.
Min. deposit to open
BMO Alto is the online-only arm of BMO Financial Group, the parent organization to BMO Harris Bank and Bank of the West. BMO Alto offers two deposit accounts: the BMO Alto Online Savings and the BMO Alto Certificate of Deposit.
In addition to earning a competitive APY, its savings account has no monthly fees, minimum initial deposit or minimum balance requirement. The unlimited number of transfers and withdrawals permitted is an added benefit.
This account is best paired with other bank accounts because it doesn’t provide a debit card or ATM access. Money in this account can only be accessed or deposited through externally linked bank accounts.
BMO Alto is the online-only arm of BMO Financial Group, the parent organization to BMO Harris Bank and Bank of the West. BMO Alto offers two deposit accounts: the BMO Alto Online Savings and the BMO Alto Certificate of Deposit.
In addition to earning a competitive APY, its savings account has no monthly fees, minimum initial deposit or minimum balance requirement. The unlimited number of transfers and withdrawals permitted is an added benefit.
This account is best paired with other bank accounts because it doesn’t provide a debit card or ATM access. Money in this account can only be accessed or deposited through externally linked bank accounts.
4.6/5
We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks.
Minimum deposit and fees
APY APY = Annual Percentage Yield.
Min. deposit to open
UFB Direct, an online bank, has consistently ranked near the top of our list each week for APY. That APY applies to all balances, and there are no minimum deposit or balance requirements.
Unlike other high-yield savings accounts, UFB Direct’s savings account comes with a free ATM card. The account has a limit of six withdrawals a month, but that doesn’t apply to ATM transactions. You’ll also have mobile banking, which comes with mobile deposits and transfers.
UFB Direct, an online bank, has consistently ranked near the top of our list each week for APY. That APY applies to all balances, and there are no minimum deposit or balance requirements.
Unlike other high-yield savings accounts, UFB Direct’s savings account comes with a free ATM card. The account has a limit of six withdrawals a month, but that doesn’t apply to ATM transactions. You’ll also have mobile banking, which comes with mobile deposits and transfers.
4.5/5
We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks.
Minimum deposit and fees
APY APY = Annual Percentage Yield.
Min. deposit to open
We like that TAB Bank’s high-yield savings account is pretty straightforward. No monthly maintenance fees, no minimum deposit or balance requirements and a highly competitive APY put TAB Bank at the top of the list of best high-yield savings accounts.
TAB Bank is an online-only bank that offers checking, savings, money market and CD accounts. Its checking account gives you cash-back rewards on your purchases, and it offers special bank accounts for truckers. We also like that this bank has extended customer service hours, including Saturdays, by calling 800-355-3063.
We like that TAB Bank’s high-yield savings account is pretty straightforward. No monthly maintenance fees, no minimum deposit or balance requirements and a highly competitive APY put TAB Bank at the top of the list of best high-yield savings accounts.
TAB Bank is an online-only bank that offers checking, savings, money market and CD accounts. Its checking account gives you cash-back rewards on your purchases, and it offers special bank accounts for truckers. We also like that this bank has extended customer service hours, including Saturdays, by calling 800-355-3063.
4.5/5
We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks.
Minimum deposit and fees
APY APY = Annual Percentage Yield.
Min. deposit to open
Quontic Bank keeps pace with competitors with a solid APY that applies to all balances. Quontic has no monthly maintenance fees or minimum balance requirements, though it requires $100 to open a high-yield savings account.
Quontic compounds interest daily and pays it out monthly – which can earn you more than accounts that only compound monthly. It charges $25 for outgoing domestic wire transfers and $35 for outgoing international wire transfers. All ACH transfers and incoming wire deposits are free.
Quontic Bank keeps pace with competitors with a solid APY that applies to all balances. Quontic has no monthly maintenance fees or minimum balance requirements, though it requires $100 to open a high-yield savings account.
Quontic compounds interest daily and pays it out monthly – which can earn you more than accounts that only compound monthly. It charges $25 for outgoing domestic wire transfers and $35 for outgoing international wire transfers. All ACH transfers and incoming wire deposits are free.
4.6/5
We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks.
Minimum deposit and fees
APY APY = Annual Percentage Yield.
Min. deposit to open
Synchrony Bank is a regular on our list of the best online banks. We like that it offers competitive APYs and extended customer service hours. Its high-yield savings consistently features a competitive APY with no monthly fees or minimum balance requirements.
While there’s no complementary checking account option at Synchrony, its savings accounts have debit cards you can use to withdraw money from ATMs. Synchrony doesn’t charge for non-network ATMs and reimburses $5 per month for other banks’ ATM fees. However, it doesn’t accept cash deposits.
Other savings options are available, including money market accounts, CDs and a few retirement options.
Synchrony Bank is a regular on our list of the best online banks. We like that it offers competitive APYs and extended customer service hours. Its high-yield savings consistently features a competitive APY with no monthly fees or minimum balance requirements.
While there’s no complementary checking account option at Synchrony, its savings accounts have debit cards you can use to withdraw money from ATMs. Synchrony doesn’t charge for non-network ATMs and reimburses $5 per month for other banks’ ATM fees. However, it doesn’t accept cash deposits.
Other savings options are available, including money market accounts, CDs and a few retirement options.
3.5/5
We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks.
Minimum deposit and fees
APY APY = Annual Percentage Yield.
Min. deposit to open
Citizens’ high-yield savings account -- Citizens Access Savings -- has a respectable APY and no hidden fees. Like many other savings accounts, you can make direct deposits and recurring transfers. However, you can’t deposit cash.
Citizens is the digital banking arm of Citizens Bank, a traditional bank that’s now officially Citizens Financial Group. However, Citizens operates only online and mostly provides home loans, student loan refinancing and a high-yield savings account. No checking or money market accounts are available.
Citizens’ high-yield savings account -- Citizens Access Savings -- has a respectable APY and no hidden fees. Like many other savings accounts, you can make direct deposits and recurring transfers. However, you can’t deposit cash.
Citizens is the digital banking arm of Citizens Bank, a traditional bank that’s now officially Citizens Financial Group. However, Citizens operates only online and mostly provides home loans, student loan refinancing and a high-yield savings account. No checking or money market accounts are available.
4.6/5
We score savings accounts based on annual percentage yields, customer experience, minimum deposits and fees. Our savings and high-yield savings account ratings are based on extensive in-house research, which evaluates features and perks, including mobile and online access and surcharge-free ATM networks.
Minimum deposit and fees
APY APY = Annual Percentage Yield.
Min. deposit to open
Varo is the wild card on our list for providing a tiered savings rate that encourages low balances. Varo will give you 5.00% APY if your daily balance never goes over $5,000 during a monthly billing cycle. If it exceeds $5,000, you’ll get only 3.00% APY on the excess amount for that month.
To qualify for any interest at all, you’ll need to have $1,000 in direct deposits every month and end each month with a positive balance in both your Varo Bank and Savings account. While Varo presents a tempting APY for those with lower balances, any amount in your account that exceeds $5,000 earns the lower APY.
Aside from its high-yield savings account, Varo has a checking account with a few sweet perks. You can earn cash back and get your paycheck two days sooner. Keep in mind that Varo is an online bank, so there are no physical branches available to manage your account.
Varo is the wild card on our list for providing a tiered savings rate that encourages low balances. Varo will give you 5.00% APY if your daily balance never goes over $5,000 during a monthly billing cycle. If it exceeds $5,000, you’ll get only 3.00% APY on the excess amount for that month.
To qualify for any interest at all, you’ll need to have $1,000 in direct deposits every month and end each month with a positive balance in both your Varo Bank and Savings account. While Varo presents a tempting APY for those with lower balances, any amount in your account that exceeds $5,000 earns the lower APY.
Aside from its high-yield savings account, Varo has a checking account with a few sweet perks. You can earn cash back and get your paycheck two days sooner. Keep in mind that Varo is an online bank, so there are no physical branches available to manage your account.
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A high-yield savings account, or HYSA, is a type of savings account that offers interest rates at least 10 times higher than the national average. Most HYSAs are found at online-only banks. Since online banks don’t have the overhead costs of maintaining physical branches, they pass some of these savings down to customers in the form of lower fees and better APYs on savings, certificates of deposit and money market accounts.
With the highest rates continuing to sit above 5% APY, transferring some or all of your savings to a high-yield savings account could definitely pay off. And even when rates go down -- which they will eventually -- a high-yield savings account will still outperform a traditional one.
While many high-yield savings accounts offer high APYs on your full balance, some banks cap the amount of money you can earn at this rate. For instance, Digital Federal Credit Union offers an impressive 6.17% APY on its high-yield savings account -- but only on balances up to $1,000. Any balances over that receive a paltry 0.05% APY.
And, in some cases, banks might require a higher minimum deposit to be eligible for the higher APY.
Rita-Soledad Fernandez Paulino Money coach and founder of Wealth Para Todos Anna N’Jie-Konte Certified financial planner and director of Re-Envision Wealth Shang Saavedra Personal finance coach and CEO of Save My Cents
We spoke with financial experts to learn the best way to use high-yield savings accounts, what to look out for and additional tips and guidance in the current rate environment.
Savings rates are soaring. Anna N’Jie-Konte, a certified financial planner, recommends a high-yield savings account for anyone looking for flexibility and easy access to their money -- especially to house an emergency fund.
“High-yield savings accounts should always be a mainstay for emergency funds.”
Currently, some of the best high-yield savings accounts offer APYs as high as 5.30% on all balances. Compare this to some traditional savings accounts, which offer APYs as low as 0.01%, and you’ll see the real value. For example, if you deposit $100 a month into a high-yield savings account for a year with a 5% APY, you’ll earn about $28 in interest (if rates stay the same). If rates go up, you’ll get a bigger return. If you deposit the same amount in a traditional savings account with a 0.01% APY, you’ll only earn $1.
If you’re looking for ways to grow your money faster, you’re not alone. Shang Saavedra, the founder and CEO of Save My Cents, says her followers have been asking her more questions about how high-yield savings accounts work. “The rates are so attractive that some people see it as an investment product,” Saavedra added.
Since the best rates are often at online-only banks, you’ll need to feel comfortable managing your money online. Many online bank names may feel unfamiliar, so Saavedra encourages her followers to read reviews, ask questions and do their research to get more acquainted with how an online bank operates. Most importantly, she suggests ensuring the bank is insured by the Federal Deposit Insurance Corp. or the National Credit Union Administration to protect your funds up to $250,000 per person, per institution.
Don’t assume a high-yield savings APY applies for all balances. Some banks have balance requirements to earn the highest interest rate, while others keep it straightforward, said Rita-Soledad Fernandez Paulino, founder of Wealth Para Todos. For instance, a bank may only offer a 5% APY on up to $3,000 or if you deposit that amount when opening the account. “I prefer to work with a bank that gives me an interest rate that’s going to be the same for all my money,” she said. “Always read the fine print.”
Lastly, don’t expect 5% APY high-yield savings rates to stick around long-term. Savings APYs are variable and often move in lockstep with the federal funds rate. The Federal Reserve issued its first rate cut in years following its September meeting, and we’re starting to see APYs drop slightly. However, rates on high-yield savings accounts remain competitive, and HYSAs are a safe and secure option to maximize your interest growth.
“Right now, we might be in an environment with really, really high interest rates. But by default, the Fed doesn’t like to stay there,” said Delyanne Barros, founder of The Money Coach. If you aren’t earning over 4% on your savings account, you should consider switching to a high-yield account to earn a better return while rates are high.
Read more: Types of Savings Accounts Compared
A high-yield savings account is a great place to park money dedicated to short-term savings goals. Here are a few ways you might use a HYSA:
You shouldn’t use a HYSA as your primary retirement savings vehicle. Although APYs are higher than they’ve been in years, they can’t compete with the compounding interest rates of the stock market. Your main retirement fund should be parked in a 401(k), IRA or other tax-advantaged growth account. But that doesn’t mean you shouldn’t park extra funds in a high-yield savings account as you approach retirement age.
“I’m planning to have two to three years of expenses saved [in a high-yield savings account] by the time I retire. Because if for some reason the market crashes the year that I retire, I don’t want to be pulling out of my investments that year,” Barros said. “That’s when a high-yield savings account or a regular savings account becomes something even more vital to your portfolio.”
The strategy can be helpful so you don’t have to sell your investment assets at reduced prices, echoes Soledad. “If you only have one or two years left before retiring, I suggest you balance between saving in products that provide a guaranteed rate of return,” she said. That can include high-yield savings accounts, CDs, bonds and investments you don’t plan to sell for at least three years.
Keep these factors in mind when comparing your high-yield savings account options.
Since most high-yield savings are at online banks, make sure you understand how you can deposit and withdraw your money. Aside from direct deposit and transfers from other bank accounts, most banks with online access offer mobile check deposit, which lets you take a photo of your check to scan and deposit it into your account.
Just watch out for mobile check deposit limits, Soledad said. Sometimes you can’t exceed a limit of $5,000, for example. If your check is larger than the limit, you can often deposit the money into your checking account and then transfer it.
Some high-yield savings accounts may offer cash deposits at ATMs, but many don’t. This can pose a challenge if you regularly receive money in cash. In this case, depositing into a separate bank account and transferring it to your savings account may work well, but it will take more time.
Many high-yield savings accounts offer ways to earmark money for different savings goals.
“I’m a big fan of Ally because I like their buckets feature,” Soledad said. Ally Bank lets you keep your money in one account, while clearly categorizing it for different savings goals. “Not all high-yield savings accounts have this bucket feature where you can categorize your money.” However, you could also open multiple savings accounts to keep your financial goals separate.
“The ability to categorize your savings so that you can set up sinking funds is very beneficial,” Soledad said. However, some banks will limit how many accounts you can link, she added. For instance, you may have a checking account and several savings accounts to track your goals individually.
If you have multiple accounts, make sure your high-yield savings account is linked to the primary account where your paycheck or other income is deposited so you can easily transfer funds.
If several emergency expenses pop up in a row, you might find yourself tapping into your savings multiple times in a given month. “Look out for how many times you can pull money out a month for this account,” Soledad said.
Although Regulation D (PDF), which limited savings account transfers to six per month, was indefinitely suspended by the Federal Reserve, some banks still adhere to this limit. That means if you exceed this number of transfers, you may be charged an excessive transfer fee. The charge can vary by bank but is usually $10 for each transaction that exceeds the limit.
Experts often recommend high-yield savings accounts as a low-risk way to save money, but there are some drawbacks to consider. Here are a few pros and cons to weigh.
Higher interest: High-yield savings accounts typically have higher APYs than traditional savings and checking accounts, which can yield a bigger return.
Flexibility: You can withdraw money when you need it; it’s not locked in for a set term like a certificate of deposit.
FDIC-insured: As long as your high-yield savings account is at a bank that’s FDIC- or NCUA-insured, your money is protected for up to $250,000 per person, per account.
Can help curb spending: Money that is out of sight is often out of mind. Keeping extra funds in an HYSA can help prevent you from spending on nonessentials.
Limited or no physical bank access: Usually, only online-only banks offer high-yield savings accounts, so you’ll need to be comfortable managing your account online.
Transfer time: It can take one to three business days to transfer money from your savings to an external bank account.
Withdrawal limits and fees: Some banks may limit your withdrawals to six per statement cycle before charging an excessive withdrawal fee.
Variable interest rate: You won’t lock in a fixed savings rate like you can with a CD. Instead, your APY could change anytime.
In general, there are three savings account options if you’re looking for an alternative to high-yield savings accounts.
Traditional savings account: A traditional savings account is typically offered by a brick-and-mortar bank or local credit union. You won’t earn much interest compared with high-yield savings accounts, but you will have ATM access to make cash deposits and withdrawals. Some of these accounts are limited to six monthly withdrawals, although ATM withdrawals may be excluded from that restriction.
Money market account: A money market account combines features of a checking and savings account. This account usually requires a higher balance to earn interest and keep your account in good standing. And you may only be able to make a limited number of withdrawals per month. However, many money market accounts come with checking account features, such as a debit card, ATM access and check writing privileges.
Certificates of deposit: A certificate of deposit, or CD, offers a fixed interest rate for a set period, known as the term. If you withdraw your money before the term ends, you’ll pay an early withdrawal penalty, which is usually a few weeks or months of interest, depending on the bank. And CDs only allow a one-time deposit. Most CDs have terms from three months to five years.
You can typically open a high-yield savings account online in a matter of minutes. While the steps may vary by bank, here’s what the process generally looks like.
High-yield savings accounts are good for anyone saving for emergencies or short-term savings goals, such as car repairs or a vacation. It’s also a great place to put unexpected financial windfalls, such as a tax refund or inheritance, while you decide whether you want to save, invest or spend the money.
While each bank has a proprietary methodology for establishing APYs, many high-yield savings accounts are loosely connected to the federal funds rate -- the interest rate at which banks borrow and lend money to each other. Since the Fed decided to cut the federal funds rates at its September meeting, APYs for deposit accounts such as savings accounts and CDs have started to decline slightly.
After the Fed cut the federal funds rate during its September meeting, we’re starting to see some banks follow suit and drop APYs. However, high-yield savings accounts with APYs of 5% or more remain. It’s best to take advantage of competitive rates while they last.
As experts predicted, the Fed cut rates in September. Some experts expect additional rate cuts before the end of 2024. If this happens, savings account APYs will likely continue to drop. So the sooner you open a high-yield savings account, the more interest you can earn.
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CNET regularly reviews and tracks the annual percentage yields of savings accounts at banks, credit unions and financial institutions with nationwide access. None of the banks on this list charge monthly maintenance fees. Each account, which has been scored between one (lowest) and five (highest), is insured up to $250,000 per person, per account category, per institution by the Federal Deposit Insurance Corporation or National Credit Union Administration.
We review the APYs from the top 25 financial institutions on a weekly basis and compare them to the FDIC’s national average rate as well as the average APY of these banks, credit unions and financial institutions. Banks that score highest in our ranking offer an APY that is at least 10% higher than our CNET average and 10 times higher than the FDIC’s national average rate.
The banks, credit unions and neobanks we reviewed include: Affirm Savings, Alliant Credit Union, Ally, America First Credit Union, American Express High Yield Savings Account, Axos High Yield Savings, Bank of America Advantage Savings, Bank of the West, Bank5 Connect, Barclays, Bask Bank, Bread Savings, BrioDirect High-Yield Savings, Capital One 360 Checking, Charles Schwab, Chase Premier Savings, Chime, Citibank, Citizens Online Savings Account, Colorado Federal Savings Bank, Consumers Credit Union, Discover, First Internet Bank of Indiana, LendingClub, Live Oak Bank, M&T Bank, Marcus, My Banking Direct, Nationwide My Savings, Navy Federal Credit Union, NBKC, OneUnited Bank, PenFed CU, PNC, Popular Direct Select Savings, PurePoint Financial, Quontic Bank, Rising Bank, Salem Five Direct, Sally Mae Smarty Pig, Santander Bank, Synchrony, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, USAA Bank, Varo, Vio and Wells Fargo.
Written by
Toni Husbands
Staff Writer
Toni Husbands is a staff writer with CNET Money who enjoys exploring topics that promote financial wellness. She began writing about personal finance to document her experience paying off $107,000 of debt, which is detailed in her book, The Great Debt Dump. Previously, she contributed as a freelance writer for websites, including CreditCards.com, Centsai and Wisebread. She was also a regular contributor to Business AM TV, and her work has been featured on Yahoo News. Being a part-time real estate investor and amateur gardener also brings her joy.
Written by
David McMillin
David McMillin writes about credit cards, mortgages, banking, taxes and travel. Based in Chicago, he writes with one objective in mind: Help readers figure out how to save more and stress less. He is also a musician, which means he has spent a lot of time worrying about money. He applies the lessons he's learned from that financial balancing act to offer practical advice for personal spending decisions.
CNET editors independently choose every product and service we cover. Though we can’t review every available financial company or offer, we strive to make comprehensive, rigorous comparisons in order to highlight the best of them. For many of these products and services, we earn a commission. The compensation we receive may impact how products and links appear on our site.
Writers and editors and produce editorial content with the objective to provide accurate and unbiased information. A separate team is responsible for placing paid links and advertisements, creating a firewall between our affiliate partners and our editorial team. Our editorial team does not receive direct compensation from advertisers.
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Source: cnet.com