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

We compared 73 online savings accounts at 57 nationally available banks and credit unions to find some of the best high-yield savings accounts available.

Here’s a summary of our top accounts organized by the highest APY that one could get.

• Milli Savings Account: 5.50% APY
• UFB Secure Savings: Up to 5.25% APY
• Bread Savings High-Yield Savings Account: 5.15% APY
• Bask Interest Savings Account: 5.10% APY
• BMO Alto Online Savings Account: 5.10% APY
• M1 High-Yield Savings Account: Up to 5.00% APY
• Synchrony Bank High Yield Savings: 4.75% APY
• SoFi Checking and Savings Account: Up to 4.60% APY
• Citizens Access® Savings: 4.50% APY

APY was a main factor, but not the only factor considered when building our list of the best accounts.

Annual percentage yields (APYs) and account details are accurate as of February 12, 2024.

The accounts on this list have some of the best APYs available. They also rank well according to our overall criteria for the Best Savings Accounts Of 2024.

To create a list of the best savings accounts, Forbes Advisor analyzed 73 online savings accounts at 57 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 and digital experience. All of the accounts on our list are online-based accounts.

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

• APY: 70%
• Fees: 10%
• Digital experience: 5%
• Customer experience: 5%
• Minimum deposit requirement: 5%
• Minimum balance to avoid monthly: 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.

Today’s highest savings account interest rate is 5.84%. High-yield savings rates follow a similar trend for other deposit accounts, including money market and certificate of deposit accounts. Among high-yield saving account offerings, online banks tend to feature the best rates for savers.

Data accurate as of February 14, 2024.

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. The FOMC held the federal funds rate steady at its last few meetings, indicating that while the Fed is still keeping an eye on inflation, rates will likely begin to fall at some point this year.

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 to 0.46% in December, according to the FDIC.

However, savings rates are stabilizing. In the coming months, any Federal Reserve rate cuts can trigger further reductions in savings account APYs.

• What Is a High-Yield Savings Account?
• Best Ways To Use a High-Yield Savings Account
• Online Savings Accounts Fees
• Pros and Cons of High-Yield Savings Accounts
• How To Pick a High-Yield Savings Account
• How To Open a High-Yield Savings Account Online
• Alternatives to High-Yield Savings Accounts
• Are High-Yield Savings Accounts Worth It?
• Recap: Best High-Yield Savings Accounts Of February 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 from the FDICon standard savings accounts.

High-Yield Savings Account Terms To Know

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.

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, including:

• An emergency fund
• Upcoming vacations
• A wedding
• Home renovations
• Home furnishings
• A down payment on a home
• A new car
• Educational expenses

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.

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.

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

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

1. 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.

2. 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.

3. 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.

4. 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.

Opening a high-yield savings account is a relatively simple process.

• Step 1: Research available accounts and select one that matches your needs.
• Step 2: Apply for the account by visiting a branch or filling out an online application. Be prepared to provide your name, address, phone number, email address, date of birth, Social Security number, driver’s license number and other details to verify your identity. If you’re opening a joint account, both parties will need to provide personal and financial information.
• Step 3: Once your account is approved, you can fund it using a linked bank account or other acceptable deposit methods, such as cash or a check.
• Step 4: Optionally set up recurring transfers to your savings account from a linked checking account.

• Money Market Accounts (MMAs). MMAs are deposit accounts that combine features of checking and savings accounts. You earn interest like a savings account but are also able to write checks or make purchases using a linked debit card. 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. High-yield savings accounts usually offer better interest rates than MMAs.
• Certificates of deposit (CDs). 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, and if you withdraw your savings before the term ends, you could forfeit some or all of the interest earned. CDs generally offer higher rates than savings accounts, and your earnings are fixed since your rate won’t fluctuate.
• 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.

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.

• Milli Savings Account: 5.50% APY: Milli’s savings account is best for those who are working toward multiple savings goals. With Milli Savings Jars, you can create and customize up to five different savings goals. Plus, you’ll earn one of the highest savings rates available.
• UFB Secure Savings: Up to 5.25% APY: UFB Secure Savings is best for customers who make a lot of cash withdrawals. While ATM cards aren’t common with savings accounts, UFB provides a complimentary card and access to over 91,000 fee-free ATMs.
• Bread Savings High-Yield Savings Account: 5.15% APY: The Bread Savings High-Yield Savings Account is best for those who need to make frequent deposits into their savings accounts. While some banks put a limit on monthly deposits, Bread allows unlimited mobile check deposits and ACH transfers. Plus, there’s no fee for incoming wire transfers.
• Bask Interest Savings Account: 5.10% APY: If you prioritize ease of use and high interest over an abundance of features, this account should be on your radar. Bask Bank’s Interest Savings account is a straightforward account with no monthly fees, no minimum balance requirements and a competitive interest rate on any balance.
• BMO Alto Online Savings Account: 5.10% APY: BMO Alto’s Online Savings account is best for unlimited transfers and withdrawals. If you frequently move money in and out of savings or need unlimited access to your funds, this account may be a good fit.
• M1 High-Yield Savings Account: Up to 5.00% APY: M1’s High-Yield Savings Account is best for customers who plan to keep a high balance in their savings account. Typical FDIC insurance covers $250,000 per institution, but M1 offers up to $5 million in FDIC coverage through its network of insured institutions.
• Synchrony Bank High Yield Savings: 4.75% APY: Synchrony High Yield Savings is the best high-yield savings account for ATM reimbursem*nts. Not only does the account come with an ATM card for convenient access to your funds, but Synchrony will reimburse up to $5 per month in out-of-network ATM fees.
• SoFi Checking and Savings Account: Up to 4.60% APY: Up to 4.60% APY: SoFi Checking and Savings is best for customers who do all their banking—from spending to saving money—in one account. Those who prefer the convenience of a single account will love the accessible checking features and the high-yield interest earnings.
• Citizens Access® Savings: 4.50% APY: Citizens Access Savings is best for those who want a no-fee savings account—period. Many online savings accounts forgo monthly fees but charge fees for excess transactions, ATM use or other services. Citizens Access has no fees or hidden costs, so you can be confident this is a truly free account.

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, Purepoint Financial, Quontic, Rising Bank, SalemFiveDirect, Sallie Mae Bank, SFGI Direct, SmartyPig Bank, Synchrony Bank, U.S. Bank, UFB Direct, Varo Bank and VIO Bank.

• Savings Calculator: How Much Could You Save?
• 6 Types Of Savings Accounts
• Capital One Savings Account Interest Rates
• Chase Savings Account Interest Rates