Are high-yield savings accounts safe?

High-yield savings accounts are safe if they’re offered at an FDIC-insured bank or a National Credit Union Administration (NCUA) credit union and within federal insurance limits and guidelines.

How much interest can I earn on $10,000 after a year in a high-yield savings account?

You can earn $500 of interest if the $10,000 you stash in a savings account earns 4.85 percent APY in a year. Savings APYs are generally variable, so you’d only earn $485 if the APY remains at 4.85 percent APY for the whole year, and you keep your money in your account.

What should I do if I am unable to open a high-yield savings account?

If you’re unsuccessful in opening a new account, you can ask the bank why this happened. Depending on the answer, you might want to go to ChexSystems’ website and request a report to see whether your banking history is the reason you were denied the account. ChexSystems is a national specialty consumer reporting agency that keeps track of some of your banking history. Things that can appear on a ChexSystems report include your check-cashing history, any suspected fraudulent activity and a list of closed accounts.

How often do savings rates change?

Competitive banks and credit unions have a tendency to adjust their interest rates based on the Federal Reserve’s rate moves. Unlike CD rates, which are locked for a set term, savings account yields tend to be variable, which means they could change at any time. A bank may decide to lower or raise savings account APYs for various reasons. It may increase its rate as part of a promotion to attract more deposits, or it may adjust rates in response to broader economic factors, such as changes to monetary policy by the Federal Reserve.

How often can I take money out of a high-yield savings account?

Most banks limit the number of times you can withdraw money from a savings account. Check with your bank to see its policy so that you’re not charged an excessive transfer fee. A bank could even close your account for excessive transactions. Checking accounts are meant to have frequent withdrawals for spending money and paying bills. But savings accounts are generally meant for accumulating money, those accounts are generally liquid.

Do I pay taxes on interest earned in a high-yield savings account?

The IRS specifically says that interest earned on bank accounts is taxable interest. Interest is usually taxed as ordinary income. All interest income is taxable, even if it’s not reported on a Form 1099-INT. That form is usually generated toward the beginning of the calendar year, after you’ve earned more than $10 in interest during the previous tax year.

Why are most high-yield savings accounts online?

The best high-interest savings accounts are usually found online. The best online banks tend to offer the most competitive yields on their accounts. One reason why these banks can pay more is that they have fewer expenses since they don’t operate branches. But these online banks also need a way to get your attention. Often, a high yield is the way to do that. Many online banks also don’t charge a monthly service fee for their accounts, and some of them don’t have minimum balance or minimum opening deposit requirements either.

Best high-yield savings accounts of January 2025

Written by

Edited by

Reviewed by

Edited by

Reviewed by

Updated Dec. 23, 2024

Editorial note: While our partners compensate us from links on this page, we maintain editorial integrity, and partners don't influence our product evaluations. Here's how we make money and here is our advertiser disclosure.

A high-yield savings account can be a safe place to earn interest on your money while keeping it easily accessible for emergencies or other expenses. Annual percentage yields (APYs) on top high-yield savings accounts are 4.5 percent and above, which is around nine times the current national average rate of 0.56 percent.

Bankrate has been a trusted source of banking information since 1976, and its team of experts assesses high-yield savings accounts based on rates, balance requirements, fees and ease of access. Bankrate regularly provides you up-to-date news and rate information on top savings account yields from some of the most popular Federal Deposit Insurance Corp. (FDIC) banks and National Credit Union Administration (NCUA)-insured credit unions.

Best online high-yield savings account rates

LendingClub Bank — 4.75% APY
BrioDirect — 4.75% APY
Bread Savings — 4.65% APY
Popular Direct — 4.60% APY
Bask Bank — 4.50% APY
EverBank — 4.40% APY
CIBC Bank USA — 4.38% APY
TAB Bank — 4.37% APY
CIT Bank — 4.35% APY
PNC Bank — 4.15% APY

Note: Annual percentage yields (APYs) shown were updated between Dec. 19 and Dec. 25. All other information is current as of Dec. 23. 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.

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Best high-yield savings accounts for January 2025

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LendingClub Bank

5.0 Bankrate savings score

Bankrate Savings rating = 5/5

Bankrate scores are objectively determined by our editorial team. Annual percentage yields (APYs), minimum opening deposit requirements and minimum balances to avoid monthly service fees are some of the things that make up Bankrate’s score.

Annual percentage yield

4.75%
Min. balance for APY

$0
Min. deposit to open

$0

Why LendingClub Bank?

LendingClub was originally known for its lending products, but with its acquisition of Radius Bank in 2021, LendingClub now offers many attractive deposit products. The bank's LevelUp savings accounts offers a special higher yield when you deposit at least $250 monthly into the account, though savers will still earn a competitive yield if you don't meet this requirement in a given statement period.

Pros

LendingClub Bank offers a top-tier savings APY on its LevelUp account.
Having no minimum opening deposit requirement and no monthly service fees makes it an accessible option for all savers.
You can use a debit card to make a deposit when opening your account.
Cons

To earn the LevelUp savings rate, you need to deposit at least $250 each month into your account. If you miss a monthly cycle, you will earn a lower, but still high-yielding standard rate.
As an online-only bank, LendingClub's savings account can only be opened online.
A Bankrate staff member reported an overall positive experience with their high-yield savings account (HYSA) at LendingCub Bank. Opening an account and connecting it to external accounts in order to move money between them is a breeze, according to our staff member. This, combined with no monthly fee and a low minimum balance, made LendingClub’s HYSA an appealing option.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

LendingClub Bank

APY

APY last updated between 12/19 and 12/25.

National average APY

How do we get this data?

Bankrate independently tracks hundreds of APYs and product details for banking institutions nationwide. We retain the historical data of every rate we track in our database. If there are any gaps where we weren’t actively tracking a rate at the time, the graph will reflect the missing data.

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	LendingClub Bank APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
11/26/2024	4.00%	0.57%
11/25/2024	4.75%	0.57%
11/12/2024	4.30%	0.57%
11/06/2024	5.00%	0.57%
10/29/2024	4.30%	0.57%
10/22/2024	4.70%	0.57%
10/17/2024	5.15%	0.57%
10/15/2024	4.70%	0.57%
10/03/2024	5.30%	0.57%
10/01/2024	5.00%	0.57%
09/03/2024	5.00%	0.61%
08/28/2024	5.30%	0.59%
08/27/2024	5.00%	0.59%
08/21/2024	5.30%	0.59%
05/07/2024	5.00%	0.59%
04/02/2024	5.00%	0.58%
03/05/2024	5.00%	0.57%
02/06/2024	5.00%	0.58%
01/30/2024	4.65%	0.58%
01/25/2024	5.00%	0.58%
01/02/2024	4.65%	0.58%
12/26/2023	4.65%	0.54%

Read review

BrioDirect

4.6 Bankrate savings score

Bankrate Savings rating = 4.6/5

Annual percentage yield

4.75%
Min. deposit to open

$5,000

Why BrioDirect?

BrioDirect offers a High-Yield Savings account that offers a competitive yield that requires $5,000 to open.

Pros

BrioDirect offers a competitive yield on its High-Yield Savings account.
Cons

You need to keep at least $25 in the account to earn the APY.
You need at least $5,000 to open this account.
Your account may be closed if it doesn’t have money in it for 21 or more days.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

BrioDirect

APY

APY last updated between 12/19 and 12/25.

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	BrioDirect APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/24/2024	4.75%	0.57%
11/19/2024	4.85%	0.57%
10/29/2024	5.00%	0.57%
10/15/2024	5.05%	0.57%
10/01/2024	5.15%	0.57%
09/24/2024	5.15%	0.61%
09/03/2024	5.30%	0.61%
06/04/2024	5.30%	0.59%
05/07/2024	5.35%	0.59%
04/02/2024	5.35%	0.58%
03/05/2024	5.35%	0.57%
01/02/2024	5.35%	0.58%
12/26/2023	5.35%	0.54%

Read review

Bread Savings

4.9 Bankrate savings score

Bankrate Savings rating = 4.9/5

Annual percentage yield

4.65%
Min. balance for APY

$0
Min. deposit to open

$100

Why Bread Savings?

Bread Savings is an online bank that offers a high-yield savings account and five terms of CDs. Bread Savings requires at least $100 to open this account.

Pros

Bread Savings pays very competitive yields on its savings account.
With just $100 needed to open an account and no monthly maintenance fees, savers of all types may find it to be an appealing option.
Cons

A paper statement will cost you $5 per request at Bread Savings.
The bank also charges $25 to send a wire transfer.
A Bankrate staff member reported that opening a Bread Savings account was easy, taking them less than 10 minutes. The main reason for opening the account was the high annual percentage yield (APY) and no fees for withdrawals. While making their initial deposit while opening the account was easy, the staff member reported making additional deposits was difficult, requiring them to log into various bank accounts multiple times.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

Bread Savings

APY

APY last updated between 12/19 and 12/25.

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Bread Savings APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
11/27/2024	4.65%	0.57%
10/15/2024	4.75%	0.57%
09/16/2024	5.10%	0.61%
07/22/2024	5.15%	0.59%
04/18/2024	5.15%	0.58%
03/21/2024	5.15%	0.57%

Read review

Popular Direct

4.8 Bankrate savings score

Bankrate Savings rating = 4.8/5

Annual percentage yield

4.60%
Min. deposit to open

$100

Why Popular Direct?

Popular Direct is known for offering competitive yields. But those competitive yields have $100 minimum opening deposit requirements with the Popular Direct High-Rise Savings account. (The minimum opening requirement is much higher for its CDs.) The account also has a $25 fee for closing it within your first 180 days, so definitely make sure you’re going to keep this account for at least that amount of time. Popular Direct has been around since 2016. It offers a savings account and eight terms of CDs. The CDs have terms ranging from three months to five years.

Pros

The Popular Direct Select Savings account earns a competitive yield.
The account has no monthly maintenance fee.
Cons

A $25 fee applies if the account is closed within the first 180 days.
The bank charges a $5 fee for each withdrawal or transfer over the six-withdrawal limit per statement cycle, according to its product guide.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

Popular Direct

APY

APY last updated between 12/19 and 12/25.

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Popular Direct APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
11/19/2024	4.60%	0.57%
11/05/2024	4.65%	0.57%
10/22/2024	4.76%	0.57%
10/08/2024	4.85%	0.57%
10/01/2024	4.90%	0.57%
09/24/2024	4.95%	0.61%
09/03/2024	5.01%	0.61%
08/20/2024	5.01%	0.59%
06/25/2024	5.05%	0.59%
05/07/2024	5.15%	0.59%
04/02/2024	5.15%	0.58%
03/12/2024	5.15%	0.57%
03/05/2024	5.20%	0.57%
01/09/2024	5.20%	0.58%
01/02/2024	5.25%	0.58%
12/26/2023	5.35%	0.54%

Read review

Bask Bank

5.0 Bankrate savings score

Bankrate Savings rating = 5/5

Annual percentage yield

4.50%
Min. balance for APY

$0
Min. deposit to open

$0

Why Bask Bank?

Bask Bank is known for its high-yielding Bask Interest Savings account. It’s also known for a unique account, the Bask Mileage Savings account, where you can earn American Airlines miles. Bask Bank, a division of Texas Capital Bank, made its debut in early 2020 with its Mileage Savings Account. In February 2022, Bask introduced its Interest Savings Account, which offers a very competitive yield and doesn’t require a minimum opening deposit.

Pros

Bask Bank has consistently offered a top-tier APY on its Interest Savings Account since it first debuted in early 2022.
Bask Bank doesn’t have a minimum balance requirement.
The Bask Bank Interest Savings Account doesn’t have a monthly service fee.
The bank has a unique savings account, the Bask Mileage Savings account, where you can earn American Airlines miles.
Cons

You’ll need to fund your Bask Bank Interest Savings Account within 15 days of opening it; otherwise, the account could be closed.
The bank charges $35 for outgoing wire transfers.
Though Bask Bank has a top-tier yield, some banks do offer higher APYs.
A Bankrate staff member reported an overall positive experience with Bask Bank. They were drawn to the high yield, and opening an account took just about 10 minutes. Since opening the account, the Bankrate staff member has been able to easily check in on their annual percentage yield (APY) from time to time.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

Bask Bank

APY

APY last updated between 12/19 and 12/25.

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	Bask Bank APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/19/2024	4.50%	0.57%
11/13/2024	4.65%	0.57%
10/01/2024	4.85%	0.57%
09/30/2024	4.85%	0.61%
09/03/2024	5.10%	0.61%
05/07/2024	5.10%	0.59%
04/02/2024	5.10%	0.58%
03/05/2024	5.10%	0.57%
01/02/2024	5.10%	0.58%
12/26/2023	5.10%	0.54%

Read review

EverBank

5.0 Bankrate savings score

Bankrate Savings rating = 5/5

Annual percentage yield

4.40%
Min. balance for APY

$0
Min. deposit to open

$0

Why EverBank?

The EverBank Performance℠ Savings account earns more than the national average APY. There’s no minimum deposit required to open the account.

Pros

There’s no monthly maintenance fee.
EverBank doesn’t have a minimum opening balance requirement for its Performance℠ Savings account.
Cons

Some savings accounts from other banks offer slightly higher yields.
Switching from an account earning a nominal yield, a Bankrate staff member opened an EverBank Performance Savings account for its stellar annual percentage yield (APY) and lack of fees. “We have a big chunk of money in savings because we hope to buy a house once mortgage rates drop,” said the staff member. “But we want that money to be earning money for us, instead of sitting there losing value due to inflation.”

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

EverBank

APY

APY last updated between 12/19 and 12/25.

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	EverBank APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/20/2024	4.40%	0.57%
11/07/2024	4.75%	0.57%
10/01/2024	5.05%	0.57%
09/03/2024	5.05%	0.61%
05/31/2024	5.05%	0.59%
01/03/2024	5.15%	0.58%

Read review

CIBC Bank USA

4.9 Bankrate savings score

Bankrate Savings rating = 4.9/5

Annual percentage yield

4.38%
Min. balance for APY

$1
Min. deposit to open

$1,000

Why CIBC Bank USA?

CIBC Bank USA is currently known for offering a competitive yield on its CIBC Agility Online Savings Account, which charges no monthly service fee. The bank also is known for offering CDs that have a slightly higher yield.

Pros

The CIBC Bank USA Agility Online Savings Account offers a top-tier yield.
It’s a good option for some savers who have at least $1,000 to initially deposit. The Agility Online Savings Account doesn’t have a monthly service fee.
Cons

CIBC’s Agility Online Savings Account requires at least $1,000 as an opening deposit. This is a much higher requirement than some other online banks.
You also won’t be able to make external transfers via CIBC NetBanking during the first 30 days that you have the account.
The Agility Online Savings Account doesn’t have ATM access.
A Bankrate staff member reported an overall positive experience with CIBC. One bright spot is the high APY for the Agility Savings account. Our staffer also notes the CIBC website’s ease of use when it comes to basic banking. Customers can view account snapshots, make transfers and pay bills. In addition, CIBC offers a user-friendly app that displays menus of all options at the top and bottom of the main screen.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

CIBC Bank USA

APY

APY last updated between 12/19 and 12/25.

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	CIBC Bank USA APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/20/2024	4.38%	0.57%
11/25/2024	4.51%	0.57%
10/01/2024	4.61%	0.57%
09/23/2024	4.61%	0.61%
09/03/2024	5.01%	0.61%
05/07/2024	5.01%	0.59%
04/02/2024	5.01%	0.58%
03/05/2024	5.01%	0.57%
01/02/2024	5.01%	0.58%
12/26/2023	5.01%	0.54%

Read review

TAB Bank

4.9 Bankrate savings score

Bankrate Savings rating = 4.9/5

Annual percentage yield

4.37%
Min. deposit to open

$0

Why TAB Bank?

TAB Bank is known for offering competitive yields. It’s also known for its unique checking account for truck drivers. TAB Bank’s High Yield Savings Account doesn’t require a minimum opening deposit and doesn’t have a monthly maintenance fee. TAB Bank pays the same yield on any balance. (But of course, you’ll want to make sure that you’re within FDIC insurance limits and guidelines.)

Pros

TAB Bank pays a very competitive yield on its savings account.
TAB’s savings account doesn’t require an opening deposit
The account also doesn’t have a monthly service fee.
Cons

Paper statements cost $5 for TAB Bank’s High Yield Savings Account. Outgoing wire transfers cost $30.
Outgoing wire transfers cost $30.
There’s a $30 fee if you deposit an item that ends up being returned.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

TAB Bank

APY

APY last updated between 12/19 and 12/25.

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	TAB Bank APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/10/2024	4.37%	0.57%
10/08/2024	4.52%	0.57%
10/01/2024	5.02%	0.57%
09/03/2024	5.02%	0.61%
07/23/2024	5.02%	0.59%
05/07/2024	5.27%	0.59%
04/02/2024	5.27%	0.58%
03/05/2024	5.27%	0.57%
01/02/2024	5.27%	0.58%
12/26/2023	5.27%	0.54%

Read review

CIT Bank

4.6 Bankrate savings score

Bankrate Savings rating = 4.6/5

Annual percentage yield

4.35%
Min. balance for APY

$5,000
Min. deposit to open

$100

Why CIT Bank?

CIT Bank is known for offering multiple savings accounts. CIT Bank’s Platinum Savings account earns the highest yield on balances of $5,000 or more, while the Savings Connect account can be opened with just $100. These accounts don't charge a monthly maintenance fee. CIT Bank also has most of the other bank accounts a person could need, including a checking account, a money market account and CDs.

Pros

CIT Bank offers a very competitive yield.
Like many online banks, it doesn’t have a monthly service fee.
Cons

You’ll need at least $5,000 in the Platinum Savings account to earn a competitive APY.
Bankrate staff members were pleased with their CIT Bank experience. Some standout features include quick transfers between savings and checking accounts, the addition of Zelle and bill pay, a user-friendly app and a high APY.

While there were positive points, there were also some drawbacks. Staffers noted that it can take up to one week for transfers to become available. They also weren’t pleased with the limited app features and hard-to-find disclosures.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

CIT Bank

APY

APY last updated between 12/19 and 12/25.

National average APY

How do we get this data?

Date Bankrate gathers rate data either directly from our partners, or through our proprietary rate surveying service. The rate change date is based on when Bankrate received or captured the rate change and may differ from the actual date the rate changed.	CIT Bank APY APY last updated between 12/19 and 12/25. APY last updated between 12/19 and 12/25	National average APY The “national average” is determined by Bankrate’s comprehensive national survey of savings accounts and CDs and reflects the monthly average APY for each product.
12/20/2024	4.35%	0.57%
11/18/2024	4.55%	0.57%
10/01/2024	4.70%	0.57%
09/04/2024	4.85%	0.61%
09/03/2024	5.00%	0.61%
05/13/2024	5.00%	0.59%
05/07/2024	5.05%	0.59%
05/01/2024	5.00%	0.59%
04/02/2024	5.05%	0.58%
03/05/2024	5.05%	0.57%
01/02/2024	5.05%	0.58%
12/26/2023	5.05%	0.54%

Read review

PNC Bank

5.0 Bankrate savings score

Bankrate Savings rating = 5/5

Annual percentage yield

4.15%
Min. balance for APY

$0
Min. deposit to open

$1

Why PNC Bank?

PNC is known for being one of the largest banks. It’s also known for having a competitive yield — through its PNC High Yield Savings account — in certain markets. This high-yield savings account doesn’t require an opening deposit and doesn’t have a monthly service fee. Those in a market where it’s offered should consider PNC’s High Yield Savings account.

Pros

PNC’s High Yield Savings account doesn’t require an opening deposit.
It offers a competitive yield and has no monthly maintenance fee.
You can deposit checks through PNC’s app.
Cons

Your account might be closed if you have a zero balance for 180 days.
This account might not be available in all areas.

See how rates for this account have changed over time. Interact with the trend lines to view APY by date.

PNC Bank

APY

APY last updated between 12/19 and 12/25.

National average APY

How do we get this data?

Bankrate's expertise

Bankrate’s trusted industry knowledge

Read our full methodology

Our banking editorial team regularly evaluates data from more than 100 of the top financial institutions across a range of categories (brick-and-mortar banks, online banks, credit unions and more) to help you find the best options.

48 years

of industry experience

3 k

deposits rates tracked

120

banks reviewed

Recent news on high-yield savings account rates

The Federal Reserve lowered rates by another 25 basis points — or a quarter of a percentage point — on Dec. 18. The federal funds rate now sits at a range of 4.25-4.50 percent. This marks the third consecutive rate cut by the central bank this year.

Since September’s rate cut, banks have steadily lowered their savings account yields. This trend is expected to continue if the Fed continues slashing rates in 2025, but savings accounts are still offering rates that outpace the rate of inflation, which is 2.7 percent year-over-year as of November, according to the latest Consumer Price Index.

Savings yields, unlike certificates of deposit (CDs), are generally variable. That noted, you can still currently find savings accounts offering more than 4.5 percent APY, which would earn you almost $500 a year in interest with a $10,000 deposit – assuming the yield didn’t change during that 12-month period. The current national average for savings accounts, which has generally trended downwards over the last couple of weeks, is 0.56 percent APY.

Although two-thirds of savers earn APYs that aren’t competitive, it’s not hard to find a high-yielding account at an online-only bank. These banks also typically don’t require a set minimum balance or charge monthly service fees.

What our industry experts are saying

Alvin Carlos

CFA, CFP, and managing partner of District Capital Management

Savings account interest rates will likely decline by 0.50 percent to 0.75 percent by the end of 2024. The Federal Reserve is expected to cut rates by 25 basis points during their September, November and December meetings. Savings account interest rates will immediately follow suit. You will no longer see any 5% high-yield savings account rates by the end of 2024.

How to choose an online high-yield savings account

The top three factors to look for when choosing a high-yield savings account are:

You want to earn a competitive APY on your money. And in 2024 the rates on many high-yield savings account are outpacing the rate of inflation.
It pays to find an account that won't charge service fees that can eat into your savings.
Being able to withdraw your money easily is important, especially in an emergency. Ways you can take out money may include visiting an ATM or using Zelle to transfer money to another account.

What to know about high-yield savings accounts

High-yield savings accounts typically pay a much greater 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 often earn APYs that are hundreds of times more these days.

Most high-yield savings accounts have a variable APY, which means the yield is subject to change at the bank's discretion. 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.

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. Essentially, 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.

Learn more: What is a high-yield savings account?

Who should get an online high-yield savings account?

A high-yield savings account is a good choice for anyone who wants to earn a competitive yield on their savings account to boost their savings potential.

A good time to get a savings account is when:

You’re not earning any interest – or you’re earning a low APY – in your current bank account.
You don’t have an emergency fund, or you have your emergency fund commingled with your checking account.

High-yield savings accounts can be a good choice for nearly anyone because they don’t require any minimum opening deposit, don’t require any ongoing minimum balance, and don’t charge monthly service fees. Anyone can benefit from a high-yield savings account, regardless of their stage of life and their money-related goals. Here are a few examples:

Future homebuyers

A high-yield savings account is a great way to ensure your down payment money will grow until you need it to buy a house, condo or apartment. And unlike most CDs, you can add to your balance at any time.

Jetsetters and road-trippers

A good strategy when saving for your next vacation is to determine how much you’ll need for the trip and then open a dedicated savings account for it. Consider automating your savings to keep your savings goals on track. This consists of setting up recurring transfers from your checking to your savings account.

Soon-to-be married couples

A high-yield savings account allows you to earn a competitive yield on your balance as you save for your wedding. You can keep adding to this account all the way up until you say “I do.” Having a separate account devoted to wedding savings can help you monitor your progress more easily, which helps you meet your savings goals for the big day.

How to open a savings account

Before you dump your money into an account at your local bank, there are several steps you should take.

Learn more

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.

Pros

Online high-yield savings accounts typically pay a much higher APY than traditional savings accounts.
Many high-yield savings accounts come with digital tools that allow you to manage your savings easily through your computer, smartphone or tablet.
High-yield savings accounts at most banks and credit unions are insured by the federal government, meaning your money is safe.
Unlike with a CD, funds in a high-yield savings account are easily accessible.

Cons

Rates for high-yield savings accounts are variable and could fall.
Some banks restrict withdrawals/transfers to only six a month.
Checks generally can’t be written using savings accounts.
Your money could get higher returns if you invest it.
Not all online banks offer branch or ATM access.

Alternatives to high-yield savings accounts

Traditional savings accounts

These accounts typically earn a very low yield, especially at major national banks – often less than the national average APY.

CDs

These generally earn a fixed APY for a certain period of time.

Money market accounts

A savings deposit account that typically offers check-writing privileges.

Checking accounts

Accounts for your daily transactions.

High-yield savings FAQs

High-yield savings accounts are safe if they’re offered at an FDIC-insured bank or a National Credit Union Administration (NCUA) credit union and within federal insurance limits and guidelines.
You can earn $500 of interest if the $10,000 you stash in a savings account earns 4.85 percent APY in a year. Savings APYs are generally variable, so you’d only earn $485 if the APY remains at 4.85 percent APY for the whole year, and you keep your money in your account.
If you’re unsuccessful in opening a new account, you can ask the bank why this happened. Depending on the answer, you might want to go to ChexSystems’ website and request a report to see whether your banking history is the reason you were denied the account.

ChexSystems is a national specialty consumer reporting agency that keeps track of some of your banking history. Things that can appear on a ChexSystems report include your check-cashing history, any suspected fraudulent activity and a list of closed accounts.
Competitive banks and credit unions have a tendency to adjust their interest rates based on the Federal Reserve’s rate moves.

Unlike CD rates, which are locked for a set term, savings account yields tend to be variable, which means they could change at any time.

A bank may decide to lower or raise savings account APYs for various reasons. It may increase its rate as part of a promotion to attract more deposits, or it may adjust rates in response to broader economic factors, such as changes to monetary policy by the Federal Reserve.
Most banks limit the number of times you can withdraw money from a savings account. Check with your bank to see its policy so that you’re not charged an excessive transfer fee. A bank could even close your account for excessive transactions.

Checking accounts are meant to have frequent withdrawals for spending money and paying bills. But savings accounts are generally meant for accumulating money, those accounts are generally liquid.
The IRS specifically says that interest earned on bank accounts is taxable interest. Interest is usually taxed as ordinary income. All interest income is taxable, even if it’s not reported on a Form 1099-INT. That form is usually generated toward the beginning of the calendar year, after you’ve earned more than $10 in interest during the previous tax year.
The best high-interest savings accounts are usually found online. The best online banks tend to offer the most competitive yields on their accounts. One reason why these banks can pay more is that they have fewer expenses since they don’t operate branches.

But these online banks also need a way to get your attention. Often, a high yield is the way to do that. Many online banks also don’t charge a monthly service fee for their accounts, and some of them don’t have minimum balance or minimum opening deposit requirements either.

Research methodology

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), low minimum balances, banks that have highly-rated apps and banks that are popular and broadly available. We also include some of the largest banks, to help readers compare those to online-only banks.

Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank of America, Bank5 Connect, Barclays Bank, Bask Bank, Bethpage Federal Credit Union, BMO Alto, BMO Bank, Bread Savings, BrioDirect, Capital One, CFG Community Bank, Charles Schwab Bank, Chase Bank, CIBC Bank USA, CIT Bank, Citibank, Citizens Access, Comerica Bank, Connexus Credit Union, Credit One Bank, Customers Bank, Delta Community Credit Union, Discover Bank, EverBank, Fifth Third Bank, First Citizens Bank, First Internet Bank of Indiana, First National Bank of America, FNBO Direct, Forbright Bank, Golden 1 Credit Union, Heritage Bank, Huntington National Bank, iGOBanking.com, Jenius Bank, KeyBank, LendingClub Bank, Limelight Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Morgan Stanley Private Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, Openbank, Pentagon Federal Credit Union, PNC Bank, Popular Direct, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, SoFi, State Employees' Credit Union, Suncoast Credit Union, Synchrony Bank, TAB Bank, UFB Direct, US Bank, USAA Bank, Varo Bank, Vio Bank, VyStar Credit Union, Wells Fargo, Zions Bank

Learn more

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Best high-yield savings accounts of January 2025

Best high-yield savings accounts for January 2025

LendingClub Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why LendingClub Bank?

Pros and cons

Our experience with LendingClub Bank's savings account

Rate history for LendingClub Bank's savings account

BrioDirect

Annual percentage yield

Min. deposit to open

Why BrioDirect?

Pros and cons

Rate history for BrioDirect's savings account

Bread Savings

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Bread Savings?

Pros and cons

Our experience with Bread Savings's savings account

Rate history for Bread Savings's savings account

Popular Direct

Annual percentage yield

Min. deposit to open

Why Popular Direct?

Pros and cons

Rate history for Popular Direct's savings account

Bask Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why Bask Bank?

Pros and cons

Our experience with Bask Bank's savings account

Rate history for Bask Bank's savings account

EverBank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why EverBank?

Pros and cons

Our experience with EverBank's savings account

Rate history for EverBank's savings account

CIBC Bank USA

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why CIBC Bank USA?

Pros and cons

Our experience with CIBC Bank USA's savings account

Rate history for CIBC Bank USA's savings account

TAB Bank

Annual percentage yield

Min. deposit to open

Why TAB Bank?

Pros and cons

Rate history for TAB Bank's savings account

CIT Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why CIT Bank?

Pros and cons

Our experience with CIT Bank's savings account

Rate history for CIT Bank's savings account

PNC Bank

Annual percentage yield

Min. balance for APY

Min. deposit to open

Why PNC Bank?

Pros and cons

Rate history for PNC Bank's savings account

Bankrate's expertise

Bankrate’s trusted industry knowledge

Recent news on high-yield savings account rates

What our industry experts are saying

How to choose an online high-yield savings account