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Best High-Yield Savings Accounts for October 2024: Up to 5.50% By Sabrina Karl
Full Bio
Sabrina Karl has over two decades of experience writing about savings, CDs, and other banking topics. She is currently a staff writer at Investopedia and one of the country's top experts on how to earn as much as possible on the money you hold in the bank. She previously wrote for Bankrate.com, CreditCards.com, DepositAccounts.com, and RateSeeker. Learn about our editorial policies Updated October 11, 2024 Reviewed by Michael J Boyle
Reviewed by Michael J Boyle Full Bio Michael Boyle is an experienced financial professional with more than 10 years working with financial planning, derivatives, equities, fixed income, project management, and analytics. Learn about our Financial Review Board Fact checked by Amanda Bellucco-Chatham Fact checked by Amanda Bellucco-Chatham Full Bio
Amanda Bellucco-Chatham is an editor, writer, and fact-checker with years of experience researching personal finance topics. Specialties include general financial planning, career development, lending, retirement, tax preparation, and credit.
Learn about our editorial policies
The best high-yield savings account rate from a nationally available institution is 5.50% APY available from Pibank. That's nearly 12 times the FDIC's national average for savings accounts of 0.46% APY. It's also just one of 15 or more top rates you can find in our daily ranking of the best savings accounts. All savings accounts and rates in our rankings were collected, verified, and available to open as of Oct. 11, 2024.
Every business day, we publish a ranking based on the highest savings account APYs available that day. Below, you'll find our partners' savings and cash management accounts—from banks, credit unions, and other financial institutions that use partner banks—followed by our top 15 ranking of the best savings account rates available nationwide.
In the News
The Fed cut rates for the first time since 2020, reducing them by 50 basis points to a range of 4.75%–5.00% at its Sept. 18 meeting. The federal funds rate had been at a two-decade high after 11 increases from March 2022 through July 2023 in an effort to bring down inflation. Further cuts are expected, which means savings rates will decline after reaching heights not seen in more than 20 years.
Open a New Account Advertiser Disclosure × The offers that appear in this table are from partnerships from which we receive compensation. For more details, see our full advertiser disclosure. Institution Apy Min. To Earn Apy Highlights Open a New Account Advertiser Disclosure × The offers that appear in this table are from partnerships from which Dotdash receives compensation.
Best High-Yield Savings Account Rates for October 2024
- Pibank – 5.50% APY
- TotalBank – 5.26% APY
- Newtek Bank – 5.25% APY
- BrioDirect – 5.15% APY
- Bank5Connect – 5.10% APY
- EverBank – 5.05% APY
- Jenius Bank – 5.05% APY
- Vio Bank – 5.05% APY
- Valley Direct – 5.05% APY*
- Western Alliance Bank – 5.01% APY
- Forbright Bank – 5.00% APY
- My Banking Direct – 5.00% APY
- Jovia Financial Credit Union – 5.00% APY
- Fitness Bank – 5.00% APY*
- CFG Bank – 5.00% APY
- Poppy Bank – 5.00% APY
- Ivy Bank – 5.00% APY
The top savings account rates in the country are listed below in order of APY. Where more than one financial institution has the same rate, we've ranked accounts by those requiring the smallest minimum ongoing balance, and if the same there as well, we list the tied institutions alphabetically.
Note that some banks call their savings accounts “money market” accounts. Money market accounts traditionally offer the ability to write checks, while savings accounts do not. None of the accounts listed here offer check-writing privileges, even if the name might suggest otherwise. It’s smart to also check our ranking of the best money market accounts, some of which pay comparable interest rates.
Pibank – 5.50% APY
- Required opening deposit: Any amount
- Minimum balance requirement: Any amount
- Monthly fee: None
- ATM card available: No
- Mobile check deposit: No
- Checking accounts available: No
- CDs available: No
- Overview: Pibank is an online and app-based savings product operated by Intercredit Bank, established in Miami in 1992. Intercredit originally established Pibank in Spain in 2018, but then launched it in the U.S. in 2024.
- Rate verified as of Oct. 11, 2024
TotalBank, Money Market Account – 5.26% APY
- Required opening deposit: $25,000
- Minimum balance requirement: $2,500 to earn stated APY
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: Yes
- Overview: TotalBank is an online-only operation of City National Bank of Florida, established in Miami in 1946.
- Rate verified as of Oct. 11, 2024
Note: TotalBank is available to customers nationwide except for Florida residents.
Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account.
Newtek Bank, Personal High Yield Savings – 5.25% APY
- Required opening deposit: $0
- Minimum balance requirement: Any amount
- Monthly fee: None
- ATM card: No
- Mobile check deposit: No
- Checking accounts available: No
- CDs available: Yes
- Overview: FDIC-insured since 1963 as National Bank of New York City, Newtek is the bank's 2023 rebranded identity, which operates one branch each in New York and Miami while serving nationwide customers online.
- Rate verified as of Oct. 11, 2024
BrioDirect, High-Yield Savings Account – 5.15% APY
- Required opening deposit: $5,000
- Minimum balance requirement: $25 to earn stated APY
- Monthly fee: None; $5 with paper statements
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: Yes
- Overview: BrioDirect is an online-only bank operated by Webster Bank, which merged with Sterling National Bank in 2022.
- Rate verified as of Oct. 11, 2024
Bank5 Connect, Jumbo Savings – 5.10% APY
- Minimum deposit requirement: $25,000
- Minimum ongoing balance: $25,000
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
- Overview: Bank5 Connect is the online division of BankFive, a Massachusetts community bank operating since 1855.
- Rate verified as of Oct. 11, 2024
EverBank, Performance Savings – 5.05% APY
- Required opening deposit: Any amount
- Minimum balance requirement: Any amount
- Monthly fee: None
- ATM card available: No
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
- Overview: EverBank, the Fortune 500 employee retirement plan provider, offers banking services online through EverBank and via 11 brick-and-mortar branches in Florida.
- Rate verified as of Oct. 11, 2024
Jenius Bank, Savings – 5.05% APY
- Required opening deposit: Any amount
- Minimum balance requirement: Any amount
- Monthly fee: None
- ATM card available: No
- Mobile check deposit: No
- Checking accounts available: No
- CDs available: No
- Overview: Jenius is the digital banking division of SMBC MANUBANK, part of the SMBC group, which has offices worldwide and U.S. headquarters in New York.
- Rate verified as of Oct. 11, 2024
Vio Bank, Cornerstone Money Market Savings Account – 5.05% APY
- Required opening deposit: $100
- Minimum balance requirement: Any amount
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: Yes
- Overview: Vio Bank is the online banking division of MidFirst Bank, an Oklahoma institution established in 1911 that is among the Top 100 largest U.S. banks.
- Rate verified as of Oct. 11, 2024
Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account.
Valley Direct, Savings Promo – 5.05% APY*
- Required opening deposit: $5,000
- Minimum balance requirement: Any amount
- Monthly fee: None
- ATM card available: No
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: Yes
- Overview: Valley Direct is an online division of Valley National Bank, which was established in 1927 and is headquartered in Passaic, New Jersey.
- Rate verified as of Oct. 11, 2024
*New customers only
Western Alliance Bank – 5.01% APY
- Required opening deposit: $500
- Minimum balance requirement: Any amount
- Monthly fee: None
- ATM card available: No
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
- Overview: Western Alliance Bank is headquartered in Phoenix, Arizona, and dates back to 2003.
- Rate verified as of Oct. 11, 2024
Forbright Bank, Growth Savings – 5.00% APY
- Required opening deposit: Any amount
- Minimum balance requirement: Any amount
- Monthly fee: None
- ATM card available: No
- Mobile check deposit: No
- Checking accounts available: No
- CDs available: Yes
- Overview: Formerly Congressional Bank, an FDIC member since 2003, Forbright Bank is the result of a 2021 rebranding. It operates three physical branches in Maryland and Virginia and serves nationwide customers online.
- Rate verified as of Oct. 11, 2024
My Banking Direct, High Yield Savings Account – 5.00% APY
- Required opening deposit: $500
- Minimum balance requirement: Any amount
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
- Overview: My Banking Direct is an internet-only division of New York Community Bank, which was founded in 1859 and operates more than 200 branches in five states.
- Rate verified as of Oct. 11, 2024
Jovia Financial Credit Union, Online Savings Account – 5.00% APY
- Minimum opening deposit: $5
- Minimum ongoing balance: $5
- Monthly fee: None
- ATM card: Yes
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
- Overview: Anyone can join Jovia by agreeing to a free membership in the affiliated CrossState Foundation and keeping at least $5 in a savings account. Jovia Financial Credit Union was established in 1938 and is headquartered in Westbury, New York.
- Rate verified as of Oct. 11, 2024
Fitness Bank – 5.00% APY*
- Minimum opening deposit: $100
- Minimum balance requirement: $100
- Monthly fee: None with $100 ongoing balance
- ATM card available: No
- Mobile check deposit: No
- Checking accounts available: No
- CDs available: No
- Overview: Fitness Bank is a division of Affinity Bank, which dates back to 1928 and is headquartered in Covington, Georgia.
- Rate verified as of Oct. 11, 2024
*In order to earn its highest rate, Fitness Bank requires an average daily step count of 12,500, which is tracked through its app. However, additional APY tiers are offered for lower step counts.
CFG Bank, High Yield Money Market Account – 5.00% APY
- Required opening deposit: $1,000
- Minimum balance requirement: $1,000 to earn stated APY
- Monthly fee: None with $1,000 ongoing balance; otherwise, $10/month
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
- Overview: Headquartered in Baltimore with two brick-and-mortar branches in that area, CFG offers select banking products online to customers throughout the country.
- Rate verified as of Oct. 11, 2024
Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account.
Poppy Bank – 5.00% APY
- Required opening deposit: Any amount
- Minimum balance requirement: $1,000 to earn stated APY
- Monthly fee: None with electronic statements; otherwise $5
- ATM card: Yes
- Mobile check deposit: No
- Checking accounts available: Yes
- CDs available: Yes
- Overview: Founded in 2005, Poppy Bank is based in Santa Rosa, California, and operates 18 branches across the state, as well as serves nationwide customers online.
- Rate verified as of Oct. 11, 2024
Ivy Bank, High-Yield Savings Account – 5.00% APY
- Required opening deposit: $2,500
- Minimum balance requirement: $2,500 to earn stated APY
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: Yes
- Overview: Ivy Bank is an online-only division of Cambridge Savings Bank, which has been serving the greater Boston area since 1834.
- Rate verified as of Oct. 11, 2024
Why You Can Trust Us
Investopedia collects savings account rates from over 100 banks and credit unions every weekday. When ranking high-yield savings account rates, we look at factors that will help readers choose the best savings account, like minimum opening deposit. We also research banks and credit unions to provide unbiased, comprehensive reviews to ensure our readers make the right decisions for their needs. Investopedia launched in 1999 and has been helping readers find the best high-yield savings account rates since 2019.
Compare the Best High-Yield Savings Accounts
| Institution | APY | Required Opening Deposit | Minimum Balance |
|---|---|---|---|
| Pibank | 5.50% | Any amount | Any amount |
| TotalBank | 5.26% | $25,000 | $2,500 |
| Newtek Bank | 5.25% | Any amount | Any amount |
| BrioDirect | 5.15% | $5,000 | $25 |
| Bank5 Connect | 5.10% | $25,000 | $25,000 |
| EverBank | 5.05% | Any amount | Any amount |
| Jenius Bank | 5.05% | Any amount | Any amount |
| Vio Bank | 5.05% | $100 | Any amount |
| Valley Direct | 5.05% | $5,000 | Any amount |
| Western Alliance Bank | 5.01% | $500 | Any amount |
| Forbright Bank | 5.00% | Any amount | Any amount |
| My Banking Direct | 5.00% | $500 | Any amount |
| Jovia Financial Credit Union | 5.00% | $5 | $5 |
| Fitness Bank | 5.00% | $100 | $100 |
| CFG Bank | 5.00% | $1,000 | $1,000 |
| Poppy Bank | 5.00% | Any amount | $1,000 |
| Ivy Bank | 5.00% | $2,500 | $2,500 |
What Is a High-Yield Savings Account?
As the name implies, high-yield savings accounts pay much higher interest rates than traditional ones. Often offered online, whether by an internet-only bank or the online division of a brick-and-mortar bank, they’re a type of savings account that’s based on the idea of holding your savings wherever it can earn a competitively high yield, even if that’s a different bank than where you hold your checking account.
The difference in savings account interest rates can be dramatic, with the top accounts in the country typically offering 10 to 12 times the national average rate. And you can still keep your checking account where it is, because it’s simple to link a high-yield savings account to your primary account for easy transfers.
Reasons to Open a High-Yield Savings Account
Stashing some of your cash in a savings account is smart whether you're saving for something specific, or just want to sock money away for when you'll need it in the future. For instance, one common reason to open a savings account is for building up an emergency fund. By putting your emergency money in a high-yield account, you'll be able to boost your balance with monthly interest earnings, while also leaving your funds fully accessible should a financial emergency arise.
Other common reasons to open a high-yield savings account are to reach a specific goal, such as buying a house or a car, sending your son or daughter to college, or going on a special vacation. When you have a savings target in mind, earning as much return on your cash as you can will help you reach your goal more quickly.
Expert Take
I first opened a high-yield savings account with American Express in 2019, and have urged friends and family to open high-yield savings accounts, too. While Amex doesn't offer the top rate nationwide, it has a great mobile app, which is how I do most of my banking. I can see my high-yield savings account right next to my credit cards, and can easily deposit money from my checking to my savings via the app. ~Hilarey Gould, Editorial Director at Investopedia
How Much Money Can You Make in a High-Yield Savings Account?
The amount of money you can earn in a high-yield savings account will be based on how much you deposit, how much you contribute per month, and what your interest rate is.
Let's say you start with $1,000 in a high-yield savings account. You have a 5.00% APY and contribute $100 per month. After three months, you'd earn about $13 in interest. After six months, you'd earn about $31 in interest. After 12 months, you'd earn about $77 in total interest and have an ending balance of $2,277.
Now, let’s say you do the same thing—$1,000 starting balance and $100 monthly contributions—but in a regular savings account. In September 2024, the national average rate for savings accounts was 0.46%, which is still higher than what many big banks pay on savings accounts. U.S. Bank, Chase, and Wells Fargo, for example, all pay just 0.1% interest on their traditional savings accounts. For this example, we’ll use 0.1% since that is so often what banks pay on savings accounts.
After three months, you'd earn about 27 cents in interest. After six months, you'd earn about 62 cents in interest. After 12 months, you'd earn about $1.55 in total interest and have an ending balance of $2,201.55. That's over $75 less than what you could earn in a high-yield savings account.
| Account | APY | Monthly Contribution | 3-Month Earnings | 6-Month Earnings | 9-Month Earnings | 12-Month Earnings | Balance After 12 Months |
|---|---|---|---|---|---|---|---|
| High-Yield Savings | 5.00% | $100 | $13.50 | $30.84 | $52.08 | $77.26 | $2,277.26 |
| Traditional Savings | 0.10% | $100 | 27 cents | 62 cents | $1.05 | $1.55 | $2,201.55 |
How to Choose the Best High-Yield Savings Account
Once you’ve decided to open up a new high-yield savings account, you’ll want to do your homework to make sure you’re choosing the best one for your needs. Searching for a top annual percentage yield (APY) is a good starting point when choosing a high-yield savings account, as you’ll want to earn a competitive rate.
Though the interest rate can change, it makes sense to choose an account that is paying one of the highest rates in the country, since the higher your rate, the more interest you’ll collect every month and every year. Also, through the power of compounding, you can make interest off your interest, and the higher the APY on your account, the better.
But beyond the interest rate, you'll also want to make sure the account either doesn't have a minimum balance requirement, or has one that you feel confident you can regularly maintain. Also, note if there is a minimum balance required to earn the top APY.
Why Different Banks Pay Different Rates
Each bank is a business that has different needs for customer deposits, operating in its own regional market. As a result, some banks have to work harder to attract funds, such as smaller banks with names you may not be familiar with.
Also important is the lending activity the bank is undertaking. If, for instance, a bank is in a strategic push to build its commercial lending portfolio, it will need to attract more customer deposits in order to fund those loans it hopes to make. One way they can do this is offering a promotional APY for a short period to boost their deposits balance, but then lowering it after they've accumulated enough funds.
Common Savings Account Terms to Understand
When researching high-yield savings accounts to find the best one for you, be sure you understand what these commonly used terms mean.
- Minimum opening deposit or initial deposit: Some bank accounts—whether a savings, checking, or money market account—stipulate a minimum deposit you need to make to open the account. It could be quite low, like $25, or could be as much as $25,000 for some high-balance accounts. And some accounts have no requirement, letting you open the account with no money deposited. Note that if an account has a initial deposit requirement but then no minimum ongoing balance, you do not need to keep that money at the bank after your initial deposit.
- Minimum balance requirement or ongoing balance: Unlike a minimum initial deposit, a minimum balance requirement refers to the least amount of money you can keep in the account on an ongoing basis. For instance, a bank may require your balance to stay at or above $100 or $1,000 for its account—or any other amount the bank prefers. Falling below the minimum requirement could mean being hit with a fee, or could instead mean you won’t earn the high-yield interest rate on the account. So be sure the account you choose either has no minimum ongoing balance or one that you feel confident you can always stay above.
- Monthly maintenance fee: Banks and credit unions charge various types of fees. Unlike ones triggered by a transaction, such as an insufficient funds fee or a wire transfer fee, the monthly service fee is a standard fee you could be charged every statement cycle. Many accounts do not have a monthly maintenance fee, while some others provide ways for you to avoid the fee each month. Be sure you understand the fee rules for any account you’re considering.
- Mobile check deposit: The ability to deposit checks using the camera on your smartphone or tablet—rather than having to take the check to a branch—is called mobile check deposit or remote check deposit. Most institutions’ mobile apps offer this as an easy way to get money deposited into your account.
- External or ACH transfer: The electronic process of moving funds between two financial institutions is called an external or ACH transfer. Virtually every high-yield savings account allows you to send or receive external transfers so that you can easily move money in and out of your savings account.
How to Open a High-Yield Savings Account
After comparing the best high-yield savings account and landing on a choice, the next step is to open the account online. Here's how that generally works:
- The bank or credit union will ask you to provide various personal information, including your social security number, since your interest earnings will be reportable to the IRS.
- The bank's account opening process will also involve security measures designed to ensure you are who you say you are.
- You'll also be presented with one or more options on how to fund your account. The most common method is by ACH transfer from another bank, and you'll be provided with instructions on how to set this up.
- Alternatively, some institutions allow you to make your initial deposit with a debit card, a credit card, or even a paper check sent through the mail.
Once the application process is completed, you may be able to set up online banking right away, or you may need to wait a day or two for your account to be fully opened.
Transfers between different institutions will take one to three days to complete, so be sure to keep enough of a cash cushion either in your checking account or in a linked savings account at that same institution. That way you won’t run into trouble if you can’t get funds from your high-yield account for a couple of days.
Pros and Cons of High-Yield Savings Accounts
Pros
-
Higher APY than traditional savings accounts
-
Ability to withdraw or deposit funds at any time
-
Extremely safe, with virtually no risk
-
Excellent vehicle for an emergency fund or saving for a big goal
-
In times of rising rates, your APY may go up
Cons
-
Earning a top yield may require opening an account with a new institution
-
Some accounts have withdrawal limits of six per month
-
Easy access can make it tempting to dip into savings
-
Account could have a fee or minimum balance requirement
-
In times of decreasing rates, your APY may go down
Who Is a High-Yield Savings Account Best For?
Anyone with surplus savings in the bank can benefit from a high-yield savings account. If you have more money in the bank than you need to hold in your checking account, high-yield savings accounts offer a way to sock some of those funds away to earn an especially high annual percentage yield (APY). High-yield savings accounts are also well suited to those comfortable with internet or mobile banking, as moving money in and out of an online savings account must generally be done on your computer or via a mobile banking app on your phone.
When choosing the best savings account for you, you'll want to check the rules of the account, such as whether it limits the number of withdrawals you can make in a month, and if you'll be assessed a monthly maintenance fee. Lastly, check that the bank is an FDIC member (or an NCUA member if it's a credit union) so that your money is insured by the federal government—up to $250,000 per depositor—should the bank or credit union fail. Online reviews of a bank's customer service may also prove useful.
Alternatives to High-Yield Savings Accounts
High-yield savings accounts are just one vehicle for stashing your cash, and they often pay the highest APYs. But there are several alternatives for holding your funds until you need them.
High-Yield Savings Account vs. Checking Account
While the easiest place to keep surplus funds is in your checking account, this has two major downsides. First, money kept in your everyday checking account is very easy to spend, making it difficult to leave earmarked as savings. Second, checking accounts tend not to pay any interest—or if they do, the rate is a pittance. A high-yield savings account offers an opportunity to earn a reasonable return on your money.
Some high-yield or rewards checking accounts do exist, with rates that are more competitive. But these accounts require jumping through some hoops—sometimes every month—in order to earn their high rate. Still, if you’re a heavy debit card user, one of the best rewards checking accounts may be a good option for you.
High-Yield Savings Account vs. Traditional Savings Account
There is no formal definition of how high a rate needs to be to qualify as "high yield". In short, it's up to each institution how to name their savings accounts. Traditional banks and credit unions more often offer traditional savings accounts, while online banks are more likely to offer a high-yield savings account. But again, the distinctions are fuzzy, rather than hard-and-fast rules.
High-Yield Savings Account vs. Money Market Account
A money market account operates very much like a savings account, with the exception that it allows writing checks. In the past, money market accounts typically imposed high minimum deposit requirements in exchange for higher rates than savings accounts. This has shifted in recent years, however, with savings and money market accounts both having a variety of required minimum balances—including no-minimums accounts. In addition, high-yield savings accounts often pay more competitive rates than money markets, though sometimes you can find a higher APY among the top-paying money market accounts.
High-Yield Savings Account vs. Certificate of Deposit (CD)
If some of your savings can be socked away and not touched for a period of time, you may be able to earn a higher rate with a certificate of deposit. CDs require you to commit your funds to remain on deposit for a number of months or years, imposing a penalty if you request to withdraw the funds before the CD’s maturity date. But in exchange, your interest rate is locked and guaranteed, even if the Fed lowers rates. Our daily ranking of the best nationwide CDs can lead you to the highest available APYs no matter the CD term you choose.
Frequently Asked Questions
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Are High-Yield Savings Accounts Safe?
Some people wonder if you can lose money in a high-yield savings account. In a worst-case scenario, a savings account will pay no interest, meaning your funds don't grow at all. But you would never lose the money you put into the account, other than due to fees you've been assessed. So it's important to choose an account where you can easily avoid paying any fees.
As for losing money due to a bank failure, the vast majority of banks—whether physical or online—are covered by the Federal Deposit Insurance Corporation (FDIC), which protects banking customers by insuring up to $250,000 of their deposits per institution if the bank fails. The U.S. government similarly backs credit union customers for up to $250,000 by providing insurance through the National Credit Union Administration (NCUA).
That means whether your institution is a traditional brick-and-mortar bank with branches or is an online bank or credit union, and whether it’s big or small, your deposits up to $250,000 are equally safe and protected.
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Who Has the Highest-Paying High-Yield Savings Account?
The top-paying institutions for savings accounts vary, with no one bank perpetually leading the rate rankings. In general, the top rate contenders tend to be online operations, whether owned by a physical bank or set up as a fully online-only institution. You can always find today's highest rates—currently well above 5%—and the institutions that offer them by regularly checking our ranking in this article. Or for a list that is exclusive to banks (no credit unions), you can check our daily ranking of the best banks for savings accounts.
-
Which Banks Are Paying 7% Interest on High-Yield Savings Accounts?
While it would be nice to earn 7% on money held in savings, no banks or credit unions are paying that much—and they aren't likely to anytime in the near future. Savings account rates surged in 2023 and 2024, thanks the Federal Reserve's aggressive rate-hike campaign. But at its highest point, the top savings account rate in the country reached 5,55% APY in April 2024.
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Why Don't I Recognize the Banks in Your Rankings?
We track the savings account rates of over 100 banks and credit unions every weekday. While we do check the rates at big banks—including the five largest banks of Chase, Bank of America, Wells Fargo, Citi, and U.S. Bank—their rates aren't usually high enough to make our ranking. Meanwhile, other institutions may not qualify for our ranking because they aren't available to customers in at least 40 states, or they significantly limit the balance on which you can earn their high-yield APY.
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How Much Does a High-Yield Savings Account Get Taxed?
What any bank offers in interest—whether paid on a savings, checking, money market, or CD account—will need to be reported on your annual tax return. You'll be able to see on your monthly statement or online register how much you were paid each month, and at the end of the calendar year, it will be taxed along with all of your other income from employment and other sources.
The bank where you hold your high-yield savings account will not tax you directly, but in January of each year, they will send you and the IRS a Form 1099-INT indicating how much interest you were paid in the previous calendar year. You must then report this interest income on your tax return.
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Do High-Yield Savings Account Rates Change?
The APY on a savings account is variable, meaning what it pays when you first open your account will most likely change sometime in the future, and it can change at any time without warning.
Whether the rate goes up or down, and how often it changes, is largely influenced by the Federal Reserve. When the Fed adjusts the federal funds rate, banks and credit unions often follow suit in the same direction.
That said, rate changes among savings accounts are not typically a daily or weekly event. Barring recent moves by the Fed, rates often remain at the same level for weeks or months at a time.
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Can You Ever Lose Money With High-Yield Savings Account?
The risk of losing money in a high-yield savings account is very low. Banks and credit unions are typically insured by the FDIC or NCUA. Interest rates on high-yield savings accounts are variable, but they are guaranteed based on the balance in the account (the bank won't take that money back after paying it to you). So if you're worried that a high-yield savings account comes with the same risk as investing in the stock market, think again. These accounts are much safer and there's virtually no risk of losing money in the account (unless you spend it of course).
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What Are the Downsides to a High-Yield Savings Account?
There are few drawbacks to putting some of your money into a high-yield savings account. The primary downside is that your money will likely reside at a different institution than where you do your primary banking. As a result, you may not be able to instantaneously transfer money from your high-yield savings to your primary checking account, as transfers between banks generally take 1-3 days.
This issue can be easily handled, however, by making sure you keep some level of cash cushion at the bank where you have your checking, enabling you to make a quick transfer to checking if you need it.
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Which Banks Do You Track for High-Yield Savings Accounts?
Every business day, we check the savings account rate for about 100 banks and credit unions that offer their accounts to customers nationwide. They include the following:
5Star Bank, Abington Bank, ableBanking, Affirm, Alliant Credit Union, Ally Bank, Amalgamated Bank, American Express, American Heritage Federal Credit Union, Axos Bank, Bank5 Connect, Bank5 Connect, Bank7, BankPurely, BankPurely, Barclays, Bask Bank, Blue Federal Credit Union, BluPeak Credit Union, BMO / BMO Alto, Bread Savings, BrioDirect, Capital One, CFG Bank, Chime, CIBC USA, CIT Bank, CIT Bank, CIT Bank, Citi, Citizens Access, CNB Bank Direct, CNB Bank Direct, Colorado Federal Savings Bank, CommunityWide Federal Credit Union, ConnectOne Bank, Credit Karma, Customers Bank, Digital Federal Credit Union, Discover, DollarSavingsDirect, E*TRADE Bank, Elements Federal Credit Union, Elements Financial, EmigrantDirect.com, EverBank, Evergreen Bank Group, First Foundation Bank, First Internet Bank, Fitness Bank, FNBO Direct, Forbright Bank, Hanscom Federal Credit Union, iGObanking, iGObanking, Ivy Bank, Jovia Financial Credit Union, Laurel Road, Lending Club, Live Oak Bank, Marcus by Goldman Sachs, MemoryBank, Milli, mph.bank, MutualOne Bank, My Banking Direct, MySavingsDirect, Nationwide by Axos, nbkc bank, Neighbors Bank, Newtek Bank, North American Savings Bank, Northfield Bank, Northpointe Bank, ONE, One American Bank, Panacea Financial, Pen Air Federal Credit Union, PenFed Credit Union, Popular Direct, Presidential Bank, Prime Alliance Bank, Primis Bank, Quontic Bank, Quorum Federal Credit Union, RBMAX, Rising Bank, Salem Five Direct, Sallie Mae Bank, SFGI Direct, SmartyPig, Synchrony Bank, TAB Bank, TotalDirectBank, UFB Direct, Upgrade, USAlliance Financial, Valley Direct, Vio Bank, VirtualBank, Web Bank, Western State Bank, and Workers Credit Union.
How We Find the Best High-Yield Savings Account Rates
Every business day, Investopedia tracks the rate data of about 100 banks and credit unions that offer high-yield savings accounts to customers nationwide. We determine daily rankings of the top-paying savings accounts first and foremost by the annual percentage rate (APY) offered. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account’s minimum initial deposit must not exceed $25,000.
Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. If the savings account is accessible only through a mobile app, we require that the app be available on both the iOS and Android platforms.
For more about how we choose the best high-yield savings accounts, read our full methodology.
Learn More About High-Yield Savings Accounts
- What Is a High-Yield Savings Account?
- What Is an APY?
- How to Open a High-Yield Savings Account
- Best High-Yield Business Savings Accounts
- Best Banks for Savings Accounts
- How Many Savings Accounts Should I Have?
- Why Choose a Money Market Instead of a Savings Account
- Best Money Market Accounts
- Best Online Banks
- Savings Account vs. Roth IRA: What’s the Difference?
