Best High-Yield Savings Accounts For April 2024 - Up to 5.35% | Bankrate (2024)

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Updated April 1, 2024

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Bankrate provides you with timely news and rate information on the top savings yields from some of the most popular and largest FDIC banks and NCUA credit unions. This way you don’t have to spend time searching many bank and credit union websites. Since 1976, Bankrate has been a trusted source of banking information to help you make well-informed decisions on your finances.

Best high-yield savings accounts for April 2024

Note: Annual percentage yields (APYs) shown were updated between March 25, 2024 and March 31, 2024. All other information is current as of April 1, 2024. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

Even though the Federal Reserve didn’t increase rates for a 12th time in January, you can currently find savings accounts with yields greater than the rate of inflation.

Returns on savings accounts will likely remain at attractive levels for some time, with little change expected until the prospect of Fed rate cuts becomes clearer.— Greg McBride, CFA, Bankrate chief financial analyst

What is a high-yield savings account?

High-yield savings accounts typically pay a much higher APY than traditional savings accounts, providing savers the ability to earn more on their money while still enjoying the security of a federally insured account. Traditional savings accounts are commonly offered at brick-and-mortar banks and larger banks. These accounts may yield close to nothing, often around 0.01 percent APY. High-yield savings accounts can earn hundreds of times more these days.

Most high-yield savings accounts have a variable APY, which means the yield is subject to change. Consumers looking for a guaranteed yield should consider a certificate of deposit (CD), and a no-penalty CD might be a good option for those who prefer both a fixed APY and access to their money without incurring a penalty.

Savings accounts usually earn compound interest, which simply means you’ll earn interest on interest. As such, you’ll earn interest on your principal as well as the interest that accumulates over time.

High-yield savings terms to know

Below are a few important features to consider when searching for a high-yield savings account. When choosing which account is right for you, also take a look at Bankrate’s expert reviews of popular banks, many of which offer high-interest savings accounts.

Annual percentage yield (APY)

APY incorporates the effect of compounding. Simply stated, compound interest is the interest you earn on interest. You’ll earn interest on your initial deposit as well as on the interest that accumulates over time.

Minimum opening deposit required

The amount you’ll need to open your account.

Minimum balance required

The balance you’ll need to keep in your account to avoid a monthly service fee.

Monthly maintenance fees

The fee you’ll incur if your balance falls below the minimum balance requirement in your account.

Are online high-yield savings accounts safe?

How to open a high-yield savings account

To find the best account for your financial needs, consider an account that has the following features:

• Earns a high, competitive APY.
• Has a low minimum opening deposit or no minimum.
• Doesn’t have a monthly service fee.

Opening a high-yield savings account is relatively simple. Here’s how:

1. Shop around. High-yield savings accounts are offered by online banks and traditional banks that operate branches and credit unions. Online-only banks typically offer the highest yields.
2. Fill out an application. Once you’ve chosen a high-yield savings account, you’ll need to fill out an application, whether online or in person. This includes your driver’s license number, Social Security number, mailing address and date of birth. When applying online, you might need to scan a copy of a government-issued photo ID. You might also need to lift a security freeze on your credit file, if you have one.
3. Fund your account. After your application is approved, it’s time to fund the account if the bank requires an opening deposit. This can be done online by linking a checking account to the new savings account and transferring funds. Depending on the bank, you might be able to fund the new savings account through a wire transfer or by mailing a check. A mobile check deposit might also be an option.

Be sure to deposit enough money to meet the account’s minimum deposit requirement.

Pros and cons of high-yield savings accounts

Savings accounts are a good place to set aside funds for many financial goals. Here are the pros and cons of online high-yield savings accounts, so you can make sure one is right for you.

Alternatives to high-yield savings accounts

High-yield savings vs. traditional savings account

High-yield savings accounts and traditional savings accounts share certain similarities, yet there are some key differences. High-yield accounts are frequently available online, while some traditional savings accounts — which include both passbook and statement savings accounts — might be restricted to opening and managing at a bank branch.

As the name suggests, high-yield savings accounts typically earn much higher rates than traditional savings accounts, and they may require a larger opening deposit and have minimum monthly balance requirements. Both accounts are subject to monthly fees, depending on the institution, but many banks offer high-yield and traditional savings accounts that charge no fees.

High-yield savings account vs. certificate of deposit (CD)

A high-yield savings account is a liquid account that’s meant for money you might need to withdraw at any time. Besides the flexibility of making withdrawals on demand (though they might be limited per statement cycle), you’re also able to add money to this account anytime.

Unlike savings accounts, CDs lock in your money for a set term, and if you withdraw your money before the term expires, you’ll usually incur an early-withdrawal penalty. What’s more, you typically can’t add money to a regular CD during its term.

High-yield savings account vs. money market account

Generally, a high-yield savings account doesn’t permit account holders to write checks against the account, while many money market accounts provide check-writing privileges.

Otherwise, money market and high-yield savings accounts are similar and typically available at FDIC-insured banks. Savings accounts are slightly more common than money market accounts, but many banks offer both.

High-yield savings account vs. checking account

A high-yield savings account is likely to pay a better yield than a checking account. Savings accounts might limit the number of withdrawals or transfers you can make per statement cycle.

Checking accounts are more for transactional purposes, such as paying bills or making debit card purchases. Checking accounts usually don’t have monthly transaction limits.

High-yield savings FAQs

Research methodology

Bankrate has been around since 1976. It is a leading publisher of rates and personal finance articles. It is also often cited by some of the most respected and well-known publications and websites. The Bankrate promise is that we strive to help our readers make smarter financial decisions, adhering to strict principles of editorial integrity and transparency.

Bankrate’s editorial team is made up of five banking experts. These experts have researched numerous banks and at least twice a month review bank websites to make sure readers stay up to date on the latest rates and bank products.

We select banks that have high annual percentage yields (APYs) and that are popular and broadly available, and we include some of the largest banks.