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Important
The annual percentage yields (APYs) listed below are current as of the date of publication on this article. Investopedia’s team follows strict editorial guidelines to ensure fairness and accuracy in our coverage. Our methodology consists of reviewing CD rates from banks and credit unions every weekday morning and updating the information below accordingly.
The best high-yield savings account rate you can earn from a nationally available institution is currently 5.40% APY, available from Popular Direct. That's nearly 12 times the FDIC's national average for savings accounts of 0.46% APY, and is just one of 15 or more top rates you can find in our rankings below. Drawn from our daily rate research on about 100 banks and credit unions that offer nationwide high-yield savings accounts, even the 10th-best rate on the list pays 5.25% APY.
Below you'll find featured savings accounts available from our partners, followed by our complete ranking of the best savings account rates nationwide.
In the News
Today’s savings accounts are paying higher rates than we’ve seen in more than 20 years, pushed up by the Federal Reserve’s rate-hike campaign that began in March 2022 to tame decades-high inflation. Though the Fed held its benchmark rate steady for a second consecutive meeting on Nov. 1—after 11 hikes in the previous 12 meetings—it has indicated that an additional increase is still on the table. Savings rates closely follow the fed funds rate, so if the Fed implements a further increase, that could nudge savings rates higher still.
Best High-Yield Savings Account Rates
- Popular Direct – 5.40% APY
- BrioDirect – 5.35% APY
- BluPeak Credit Union* – 5.33% APY
- Ivy Bank – 5.30% APY
- Vio Bank – 5.28% APY
- TAB Bank – 5.27% APY
- TotalDirectBank – 5.26% APY
- Milli* – 5.25% APY
- Newtek Bank – 5.25% APY
- UFB Direct – 5.25% APY
- Valley Direct – 5.25% APY
- Evergreen Bank Group – 5.25% APY
- CFG Bank – 5.25% APY
- EverBank (formerly TIAA Bank) – 5.15% APY
- FNBO Direct – 5.15% APY
- RBMAX – 5.15% APY
- Bread Savings – 5.15% APY
- Western State Bank – 5.15% APY
- Jovia Financial Credit Union – 5.15% 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.
Popular Direct, Select Savings – 5.40% APY
- Minimum opening deposit: $100
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: Yes
BrioDirect, High-Yield Savings Account – 5.35% APY
- Minimum opening deposit: $5,000
- Minimum ongoing balance: $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
BluPeak Credit Union, Preferred Savings Account* – 5.33% APY
- Minimum opening deposit: $25
- Minimum ongoing balance: Any amount
- Monthly fee: None with $200 ongoing balance; otherwise, $5
- ATM card: Yes
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
- Membership: Based out of San Diego, anyone nationwide can join BluPeak by making a $25 donation to KPBS.
*Account available for new members only.
Ivy Bank, High-Yield Savings Account – 5.30% APY
- Minimum opening deposit: $2,500
- Minimum ongoing balance: $2,500 to earn stated APY
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: Yes
Vio Bank, Cornerstone Money Market Savings Account – 5.28% APY
- Minimum opening deposit: $100
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: Yes
Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account.
TAB Bank, High Yield Savings Bank – 5.27% APY
- Minimum opening deposit: $0
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
TotalDirectBank, Money Market Account – 5.26% APY
- Minimum opening deposit: $25,000
- Minimum ongoing balance: $2,500 to earn stated APY
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: Yes
Note: TotalDirectBank 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.
Milli* – 5.25% APY
- Minimum opening deposit: $0
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: Yes
- Mobile check deposit: No
- Checking accounts available: No
- CDs available: No
*This savings account is accessible only via a mobile app.
Newtek Bank, Personal High Yield Savings – 5.25% APY
- Minimum opening deposit: $0
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: No
- Mobile check deposit: No
- Checking accounts available: No
- CDs available: Yes
UFB Direct, Priority Savings Account – 5.25% APY
- Minimum opening deposit: $0
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: Yes
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: No
Valley Direct, High-Yield Savings Account – 5.25% APY
- Minimum opening deposit: $1
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: Yes
Evergreen Bank Group, High-Yield Online Savings – 5.25% APY
- Minimum opening deposit: $100
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: Yes
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
CFG Bank, High Yield Money Market Account – 5.25% APY
- Minimum opening deposit: $1,000
- Minimum ongoing balance: $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
Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account.
EverBank (formerly TIAA Bank), Yield Pledge Online Savings – 5.15% APY
- Minimum opening deposit: $0
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: Yes
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: Yes
FNBO Direct, Online Savings Account – 5.15% APY
- Minimum opening deposit: $1
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: Yes
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: No
RBMAX, Max Interest Savings – 5.15% APY
- Minimum opening deposit: $10
- Minimum ongoing balance: Any amount
- Monthly fee: None with electronic statements; otherwise, $4
- ATM card: Yes
- Mobile check deposit: Yes
- Checking accounts available: Yes
- CDs available: No
Bread Savings, High-Yield Savings Account – 5.15% APY
- Minimum opening deposit: $100
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: No
- Mobile check deposit: Yes
- Checking accounts available: No
- CDs available: Yes
Western State Bank, Online Money Market Account – 5.15% APY
- Minimum opening deposit: $5,000
- Minimum ongoing balance: Any amount
- Monthly fee: None
- ATM card: No
- Mobile check deposit: No
- Checking accounts available: Yes
- CDs available: No
Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account.
Jovia Financial Credit Union, Online Savings Account – 5.15% 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
- Membership: Anyone can join Jovia by agreeing to a free membership in the affiliated CrossState Foundation and keeping at least $5 in a savings account.
Pros and Cons of High-Yield Savings Accounts
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
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 Should Get an Online High-Yield Savings Account?
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, online high-yield savings accounts offer a way to sock some of those funds away to earn more interest. High-yield savings accounts are also best for those comfortable with online banking, as moving money in and out of a high-yield savings account must generally be done online or through a mobile banking app.
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
The easiest place to keep surplus funds is in your checking account. While it's true this option provides the ultimate in convenience, it has two major downsides. First, money kept in your everyday checking account is very easy to spend, making it difficult to earmark as savings—and leave untouched. 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 not only earn interest on your money, but to earn substantially more.
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, so that you won’t run into trouble if you can’t get funds from your high-yield account for a couple of days.
High-Yield Savings Account vs. Traditional Savings Account
There are generally two types of savings accounts: standard traditional ones paying a fairly modest interest rate, and high-yield savings accounts that specifically feature an interest rate far above the national average. There is no formal definition, however, of how high a rate needs to be to qualify as "high yield". In short, it's up to each institution to name their savings accounts what they like.
Traditional banks and credit unions typically offer traditional savings accounts, while high-yield accounts are often offered by online banks. But again, the distinctions here are general, not 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 offers the ability to write checks. In the past, money market accounts required large balances but paid 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 options with no balance minimums. In addition, high-yield savings accounts often pay more competitive rates than money markets.
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.
High-Yield Savings Account vs. I Bonds
The U.S. Treasury offers I Series savings bonds, known as I bonds, whose rate is indexed to current inflation rates. Though I bonds can sometimes offer very attractive rates, your return is unpredictable because the interest rate is recalculated every May and November. I bonds offer other advantages, such as tax flexibility, but they also require your funds to stay fully locked for the first 12 months, without exception. Just like a savings, money market, or CD account, I bonds pay compound interest.
High-Yield Savings Account vs. Treasuries
Another way to earn a return on your cash is to lend it to the U.S. government. This can be done with the purchase of a T-bill, which is a Treasury note having a duration of 1 year or less. Treasuries are considered one of the safest investments in the world, but their rates are not always as high as the best high-yield bank accounts.
High-Yield Savings Account vs. Bond Funds
Though it’s difficult to thoroughly research individual corporate or municipal bond offerings, you can put your money in a bond ETF, which represents a bundle of various bonds. Though you can easily enter and exit a bond ETF, bond returns are not guaranteed, and losses in value could erode your principal investment.
High-Yield Savings Account vs. Money Market Fund or Cash Reserve Account
If you have a brokerage account, you can also keep some of your cash in a money market fund or a cash reserve account. Just be sure you research the yields, as many of these options pay a far inferior return than what you can earn by instead putting your money in a high-yield savings account. It is also easy to link a high-yield savings account for transferring funds in and out of your brokerage account.
How to Choose a 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.
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.
You'll also 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 a FDIC-insured (or an NCUA member if it's a credit union) so that your funds will be federally protected should the bank or credit union fail.
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. 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 or credit card, or even to send in a paper check.
Frequently Asked Questions
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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 interest rates can be dramatic, with the top savings 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.
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Are High-Yield Savings Accounts Safe? Can You Lose Money In a High-Yield 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—carry FDIC insurance, 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. Just be sure to check for the words “FDIC member” or the FDIC logo on the website of any bank where you’re considering doing business (or NCUA, if it’s a credit union).
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How Much Will $1,000 Make in a High-Yield Savings Account? What About $10,000?
The answer depends on your interest rate, and that can vary widely depending on what bank you choose. In addition, since savings account rates are variable, not fixed, you don't know how much you'll be earning on the account in the future.
That said, if you score one of today's rates of around 5.00% APY and are able to earn that for a year, your $1,000 deposit would earn $50, or about $4/month. Compare that to the national average of 0.46% APY, which would pay you only $4.60 over an entire year, or about 38 cents a month.
Of course, the more you can sock away, the more you'll earn. If you can average a balance of $10,000 over a year, a 5.00% APY savings account will pay you $500, or about $42 per month.
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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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Which Banks Pay the Highest Savings Account Rates?
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 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.
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Why Are Most High-Yield Savings Accounts Online?
Online-only banks, or the online operations of traditional banks, are able to avoid a lot of overhead costs by not having to build, maintain, and staff any physical branches. As a result, they can put those costs savings to use by offering higher interest rates that will attract customers and their deposits.
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Why Don't I Recognize the Banks in Your Rankings?
You typically won't see big names like Chase, Bank of America, or Wells Fargo in our list of the best high-yield savings accounts. We do monitor their savings rates, but they aren't high enough to make our ranking. That's because large banks typically don't need to attract deposits in the way that smaller institutions do, so their rates tend to be lower. You may sometimes see one of the Top 25 U.S. banks in our rankings—such as Citi, BMO, or Ally Bank—as these institutions do occasionally offer competitive high-yield rates.
Some banks you may be looking for that we track but that don't make our ranking are American Express, Axos by Nationwide, Barclays, Capital One, CIBC Bank USA, Citizens Access, Discover, E*Trade, LendingClub, Marcus by Goldman Sachs, Sallie Mae Bank, SoFi, and Synchrony Bank.
Still other institutions may not appear in our ranking because they don't meet our qualification criteria, such as not being available to customers in at least 40 states, significantly limiting the balance on which you can earn the high-yield APY, or not offering what qualifies as a high yield rate. These include U.S. Bank, PNC, Varo, American Airlines Federal Credit Union, Delta Community Credit Union, Boeing Employees' Credit Union, and Bethpage Federal Credit Union, and Western Alliance Bank.
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Will I Be Taxed on My High-Yield Savings Account?
What any bank account earns in interest—whether 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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Is a High-Yield Savings Account Worth It?
When interest rates are moderate to high, you stand to earn dramatically more on your money in the bank if you open an outside savings account that pays one of the country's most competitive rates. Here are some examples:
- An average balance of $2,000 will earn just $9.20 over the course of a full year if held in a savings account paying the national average of 0.46%, but will earn $100 in a 5.00% high-yield account.
- If you have a large balance that averages $20,000 over a year, your gains from opening a high-yield account jump into the hundreds, with a 5.00% account paying $1,000 compared to just $50 from the 0.25% savings account.
Having a separate high-yield account also can make it easier to reach your savings goals. Setting up a monthly automated transfer from your checking account to your high-yield account can be an easy way to stick to a "pay yourself first" strategy.
So in short, yes, it's worth opening a high-yield savings account since you'll earn far better returns on money that's just sitting in the bank, as well as perhaps helping you build your savings more quickly.
Our Savings Account Rate Collection Methodology
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.
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Investopedia / Alice Morgan