Best High-Yield Online Savings Accounts of March 2024 (Up to 5.27%) - NerdWallet (2024)

Here is more information about high-yield savings accounts.

What is a high-yield savings account?

A high-yield savings account is a type of federally insured savings product that earns rates that are much better than the national average. They can earn around 5%. By comparison, the national average rate is 0.46%.

» Looking for the top overall online-only banks? Check out NerdWallet's picks for best online banks

Why choose a high-yield savings account?

With a high-yield savings account, also known as a high-interest savings account, your balance can grow faster over time than it would in an average savings account. This is without additional effort on your part. Your money is working harder for you in a higher-rate account.

What is the difference between a high-yield savings account and a traditional savings account?

A high-yield savings account earns a much higher rate than a regular savings account. While some traditional savings accounts, particularly those at large national banks, earn rates as low as 0.01% APY, high-yield accounts earn many times more. Currently, rates at the best high-yield accounts earn around 5% APY.

Alternatives to high-yield savings accounts

High-yield savings account vs money market account

High-yield savings accounts and money market accounts are both types of savings accounts, but MMAs typically offer debit cards and checks, with the ability to make a few purchases each month. Both types of accounts generally let you link to other deposit accounts, such as checking accounts, to make electronic withdrawals and deposits. But with the added benefit of debit cards or checks, money market accounts give easier access to your funds. This can be helpful if you need fast access to your cash. However, some MMAs also charge monthly fees and have high minimum opening deposits.

» Want to explore more? See our list of the best money market accounts

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

High-yield savings accounts and certificates of deposit are both federally insured deposit accounts, but CDs tend to have higher rates in return for locking in your money for a set time period. CDs are best for funds that can be put away for the entire CD term, which can typically range from a few months to five years or more. If you have a short-term savings goal for an item you’d like to purchase in a few years, consider opening a CD. Funds in high-yield savings accounts can generally be withdrawn at any time, though there may be a limit of six per month for certain types of withdrawals. Compared to a CD, a high-yield savings account is a better option for an emergency fund.

» Learn more about the best CD rates

High-yield savings account vs checking account

The difference between a high-yield savings account and a checking account is that a high-yield savings account is used for building your account balance, while a checking account is used for everyday spending. Some checking accounts earn interest or offer cash-back rewards, but a high-yield savings account likely pays more interest, though it may also limit certain types of withdrawals to a maximum of six per month.» Looking for online checking? Read about the best online checking accounts

How much interest will I get on $10,000 after a year in a high-interest savings account?

If your money is in an account that earns a strong rate, your balance will grow faster without any additional effort on your part. With a 5% APY, a savings balance of $10,000 would earn a bit more than $500 after a year. It may not make you rich, but the earnings are much better than an account with a 0.40% APY, which would earn about $40 dollars.

How do I choose the best high-interest savings accounts?

Look for accounts that have high interest rates and low service charges. You want to make sure you don’t have to pay a fee each month. Some institutions don’t charge monthly fees, while others do but will waive them if you meet a balance minimum.

Be willing to look beyond the larger, well-known banks. Many smaller institutions — including online banks and apps — feature good rates and low deposit requirements.

» Want to explore checking accounts instead? Take a look at NerdWallet’s best checking accounts

High-yield savings accounts: Pros and cons

Here's a look at benefits and drawbacks of typical high-yield savings accounts compared with other ways to grow your funds.

High-yield savings account pros:

  • Earns higher rates than other savings accounts.

  • Is a deposit account, so it has federal insurance (unlike investments).

  • Typically can be opened online, without the need to leave your home.

High-yield savings account cons:

  • Sometimes requires a higher minimum opening balance compared with regular savings accounts.

  • While they can be opened online (a pro), some are online-only, so face-to-face customer service is not an option.

The highest APY savings accounts are easy to access

With online banking, you can access your account securely day or night. Online banks, credit unions and nonbank providers offer some of the best savings rates on the market while charging fewer fees than traditional banks. They also often offer good websites and mobile apps that typically let customers deposit checks and pay bills.

How to open an account with the best interest rates

Depending on the type of financial institution, you can open an account either online or in person. You’ll need to provide your Social Security number and contact information, along with at least one form of identification, such as a driver’s license or a passport. (For a joint account, everyone wanting access to the account must provide this information and ID.) You will often be required to deposit money into the new account right away. You can do that by depositing cash or checks, or through a wire transfer.

» Find high rates across checking, savings and other accounts in NerdWallet's list of high-interest accounts

What to do if you can’t open a high-interest savings account

Occasionally, your application to open an account may not be approved. This is likely because of issues with your previous banking history.

Unpaid bank fees and bounced checks can result in a negative file on ChexSystems, a consumer reporting agency that financial institutions use to evaluate a prospective customer’s banking history.

There are options for customers who have a ChexSystems file, including opportunities to open alternative accounts. For more information, read our primer on what to do if you have a ChexSystems record.

Are high-yield savings accounts safe?

In short, yes. High-yield savings accounts at banks and credit unions are federally insured up to $250,000 per depositor, and many nonbank providers partner with banks for insurance. Accounts at banks are backed by the Federal Deposit Insurance Corp., while credit union accounts are backed by the National Credit Union Administration. This means that even if the financial institution fails, the government makes sure your money is safe and accessible. Read NerdWallet's primer on FDIC insurance to learn more.

What’s the difference when NerdWallet notes “Member FDIC” vs. “funds insured by FDIC” on savings accounts?

When we describe a savings account that is offered by a bank, we note “Member FDIC,” since the bank is a member of the Federal Deposit Insurance Corp. and the account is federally insured. If a financial technology company — not a bank — offers a savings account, it typically partners with a bank that is an FDIC member to hold the funds so deposits can be insured. In those cases, we note “funds insured by the FDIC.” Savings accounts at credit unions are federally insured by the National Credit Union Administration, so we note “funds insured by the NCUA.”

High-yield savings account terminology

Here’s a look at some important savings terms to know.

Savings account: A deposit account from a financial institution that earns interest.

Money market account: A type of savings account that often offers higher interest rates in return for a steep minimum deposit. (Think $5,000 or more.)

Interest: Money a financial institution pays into an account over time.

Compound interest: Compound interest is the interest you earn on both your original money and on the interest you keep accumulating. In an account that pays compound interest, the return is added to the original principal at the end of every compounding period, typically daily or monthly. Each time interest is calculated and added to the account, the larger balance earns more interest.

Annual percentage yield: The APY, or annual percentage yield, is the amount of compound interest an account earns in a year. The calculation is based on the account's interest rate and the number of times interest is paid during the year. A savings account with the highest APY grows faster than an account with a lower yield.

» Read more about 10 essential banking terms you need to know

Full list of editorial picks: best high-yield online savings accounts

When selecting the best high-yield online savings accounts, NerdWallet uses multiple data points, including monthly fees, minimum balance requirements, APY, mobile app ratings and customer service availability. Click the financial institution’s name in the table below to read a full review.

Financial Institution

NerdWallet Overall Institution Rating

APY

Minimum balance to open

Affirm, funds insured by FDIC.

4.0.

4.35%.

No minimum to open account.

Ally, Member FDIC.

5.0.

4.35%.

No minimum to open account.

American Express, Member FDIC.

4.0.

4.35% APY (annual percentage yield) as of 12/14/2023.

Minimum to open = $0.

Barclays, Member FDIC.

4.0.

4.35%.

No minimum to open account.

Bask Bank, Member FDIC.

4.0.

5.10%.

No minimum to open account.

BMO Alto, Member FDIC.

4.5.

5.10%.

No minimum to open account.

Bread Savings, funds insured by FDIC.

4.5.

5.15%.

Bread Savings disclosure

Bread Savings adds: "All Bread Savings APYs are accurate as of 01/18/2024. APYs are subject to change at any time without notice. Offers apply to personal accounts only. Fees may reduce earnings. For high-yield savings accounts, a minimum of $100 is required and must be deposited in a single transaction. For high-yield savings accounts, the rate may change after the account is opened."

$100 minimum to open account.

Capital One 360, Member FDIC.

4.5.

4.35%.

No minimum to open account.

CIBC U.S., Member FDIC.

3.5.

5.01%.

$1,000 minimum to open account.

CIT Bank, Member FDIC.

4.0.

5.05%.

$100 minimum to open account.

Citibank, Member FDIC.

4.0.

4.45%.

No minimum to open account.

Citizens, Member FDIC.

4.0.

4.50%.

$0.01 minimum to open account.

ConnectOne Bank, Member FDIC.

3.5.

4.60%.

$2,500 minimum to open account.

Discover® Bank, Member FDIC.

4.5.

4.30%.

No minimum to open account.

EverBank (formerly TIAA Bank), Member FDIC.

4.5.

5.15%.

No minimum to open account.

First Foundation Bank, Member FDIC.

3.5.

4.90%.

$1,000 minimum to open account.

LendingClub, Member FDIC.

4.5.

5.00%.

$100 minimum to open account.

Live Oak Bank, Member FDIC.

4.0.

4.40%.

No minimum to open account.

Marcus by Goldman Sachs, Member FDIC.

4.5.

4.50%.

No minimum to open account.

Popular Direct, Member FDIC.

4.0.

5.15%.

$100 minimum to open.

Quontic Bank, Member FDIC.

4.0.

4.50%.

$100 minimum to open account.

Salem Five Direct, Member FDIC.

4.0.

5.01%.

$10 minimum to open account.

Sallie Mae Bank, Member FDIC.

4.0.

4.50%.

No minimum to open account.

SoFi, Member FDIC.

5.0.

4.60% (variable and subject to change).

No minimum to open account.

Synchrony Bank, Member FDIC.

4.5.

4.75%.

No minimum to open account.

TAB Bank, Member FDIC.

4.5.

5.27%.

No minimum to open account.

UFB Direct, Member FDIC.

4.5.

Editor's note:

Over the past year, NerdWallet readers have described delays in getting issues resolved through customer support. These complaints don't factor into UFB Direct's star ratings. Please read the full review for more details.

5.25%.

No minimum to open account.

Upgrade, funds insured by FDIC.

4.5.

5.21%.

No minimum to open account.

Varo, Member FDIC.

4.5.

3.00% (5.00% if certain requirements are met.)

No minimum to open account.

» Interested in getting money from banks? See NerdWallet's best bank account promotions and bonuses

Historical savings rates

The table below shows movement that some financial institutions have seen with savings rates over the last few months. We chose a few online institutions and two national banks to compare.

Note: Rates are accessed at the beginning of the month unless otherwise noted. Current rates may change at any time.

March 2024

February 2024

January 2024

December 2023

November 2023

October 2023

September 2023

August 2023

July 2023

June 2023

May 2023

April 2023

March 2023

February 2023

January 2023

December 2022

November 2022

October 2022

September 2022

August 2022

July 2022

June 2022

May 2022

Online institutions

Ally, Member FDIC.

4.35% APY.

4.35% APY.

4.35% APY.

4.25% APY.

4.25% APY.

4.25% APY.

4.25% APY.

4.25% APY.

4.00% APY.

3.85% APY.

3.75% APY.

3.75% APY.

3.40% APY.

3.40% APY.

3.30% APY.

3.30% APY.

3.00% APY.

2.35% APY.

1.85% APY.

1.85% APY.

1.25% APY.

1.00% APY.

0.60% APY.

CIT Bank, Member FDIC.

5.05% APY.

5.05% APY.

5.05% APY.

5.05% APY.

5.05% APY.

5.05% APY.

5.05% APY.

5.05% APY.

4.95% APY.

4.85% APY.

4.75% APY.

4.50% APY.

4.05% APY.

4.05% APY.

4.05% APY.

3.85% APY.

3.60% APY.

3.00% APY.

2.10% APY.

2.10% APY.

1.90% APY.

1.20% APY.

0.90% APY.

LendingClub, Member FDIC.

5.00% APY.

5.00% APY.

4.65% APY.

4.65% APY.

4.50% APY.

4.50% APY.

4.50% APY.

4.50% APY.

4.25% APY.

4.25% APY.

4.25% APY.

4.25% APY.

4.00% APY.

4.00% APY.

4.00% APY.

3.60% APY.

3.25% APY.

3.12% APY.

2.07% APY.

2.07% APY.

2.07% APY.

1.26% APY.

0.85% APY.

National brick-and-mortar banks

Bank of America, Member FDIC.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

Chase Bank, Member FDIC.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

0.01% APY.

Historic APY data is current as of the day it is accessed

APY data for March 2024 accessed on March 1, 2024.APY data for February 2024 accessed on February 1, 2024.APY data for January 2024 accessed on January 2, 2024.APY data for December 2023 accessed on December 1, 2023.APY data for November 2023 accessed on November 8, 2023.APY data for October 2023 accessed on October 2, 2023.APY data for September 2023 accessed on September 18, 2023.APY data for August 2023 accessed on August 1, 2023.APY data for July 2023 accessed on July 13, 2023.APY data for June 2023 accessed on June 1, 2023.APY data for May 2023 accessed on May 3, 2023.APY data for April 2023 accessed on April 3, 2023.APY data for March 2023 accessed on March 3, 2023.APY data for February 2023 accessed on February 3, 2023.APY data for January 2023 accessed on January 17, 2023.APY data for December 2022 accessed on December 20, 2022.APY data for November 2022 accessed on November 30, 2022.APY data for October 2022 accessed on October 31, 2022.APY data for September 2022 accessed on September 6, 2022.APY data for August 2022 accessed on August 30, 2022.APY data for July 2022 accessed on July 29, 2022.APY data for June 2022 accessed on June 29, 2022.APY data for May 2022 accessed on May 26, 2022.

Best High-Yield Online Savings Accounts of March 2024 (Up to 5.27%) - NerdWallet (2024)

FAQs

Which bank gives 7% interest on savings accounts? ›

7% Interest Savings Accounts: What You Need To Know. Why Trust Us? As of July 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

Where can I get 5% interest on my money? ›

Here are the institutions on this list with APYs of 5% or more.
  • My Banking Direct, 5.45% APY.
  • UFB Direct, 5.25% APY.
  • Upgrade, 5.21% APY.
  • Bread Savings, 5.15% APY.
  • Bask Bank, 5.10% APY.
  • BMO Alto, 5.10% APY.
  • EverBank, 5.05% APY.
  • Popular Direct, 5.05% APY.
4 days ago

Who has the highest paying high-yield savings account? ›

Best High-Yield Savings Account Rates for July 2024
  • Ivy Bank – 5.30% APY.
  • TotalDirectBank – 5.26% APY.
  • Jenius Bank – 5.25% APY.
  • Newtek Bank – 5.25% APY.
  • UFB Direct – 5.25% APY.
  • Evergreen Bank Group – 5.25% APY.
  • VirtualBank – 5.25% APY.
  • CFG Bank – 5.25% APY.

How high will savings interest rates go in 2024? ›

The average APY on savings accounts in 2024 (0.45%) is nearly seven times higher than the average rate in 2022. Since the federal funds rate is unchanged, the APY on savings accounts is unlikely to change for now, and rates should remain steady. However, rates may go down later in the year and into 2025.

Where can I get 7% on savings? ›

Plus, if you want to close your account early, you can without a penalty – and any interest earned will be added to your account balance.
  • First Direct Regular Saver - 7% AER.
  • Co-operative Bank Regular Saver - 7% AER.
  • Skipton Building Society - 7% AER.
  • Nationwide Flex Regular Saver - 6.5% AER.

How to get 7% interest on money? ›

There are not any banks offering 7% interest on a savings account right now. However, two financial institutions are paying at least 7% APY on checking accounts: Landmark Credit Union Premium Checking Account, and OnPath Rewards High-Yield Checking.

Where to put $10,000 for best interest? ›

The best place to invest 10k includes different types of tax-free investments, such as pensions, stocks and shares ISAs and lifetime ISAs. You can choose what to invest in within these products. Each tax-free investment type comes with an annual allowance, and you choose how to invest your ISA allowance.

How do I get 10% interest on my money? ›

Investments That Can Potentially Return 10% or More
  1. Growth Stocks. Growth stocks represent companies expected to grow at an above-average rate compared to other companies. ...
  2. Real Estate. ...
  3. Junk Bonds. ...
  4. Index Funds and ETFs. ...
  5. Options Trading. ...
  6. Private Credit.
Jun 12, 2024

Where can I get 5% on my money? ›

Best 5% interest savings accounts
Savings AccountAPY
EverBank Performance℠ Savings5.05% APY
TAB Save Account5.02% APY
Salem Five Direct eOne Savings5.01% APY
CIT Bank Platinum Savings5.00% APY on balances of $5,000 or more; 0.25% APY on balances under $5,000
19 more rows
Jul 17, 2024

What is the downside of a high-yield savings account? ›

Potential Drawbacks of High-Yield Savings Accounts

They are savings accounts, so they can prove limited in how much they earn over time. They may not be a substitute for riskier investment accounts or relied on solely for larger goals like retirement.

Do millionaires use high-yield savings accounts? ›

Millionaires Like High-Yield Savings, but Not as Much as Other Accounts. Usually offering significantly more interest than a traditional savings account, high-yield savings accounts have blown up in popularity among everyone, including millionaires.

Should I put all my money in a high-yield savings account? ›

Although each financial situation is unique, it doesn't typically make sense for you to keep all of your money in a high-yield savings account. After all, most high-yield savings accounts limit withdrawals to only six per month, so a checking account is typically a better place to store your spending cash.

Can you get 6% on a CD? ›

Can you get 6% on a CD? It's possible for some people to get 6% on a CD right now, but only if you are eligible to join a smaller credit union since no nationally available financial institutions are currently offering them.

Will CD rates go up in 2024? ›

While it largely depends on the Federal Reserve's decisions, CD rates in early 2024 are generally expected to be on par with current CD rates. It's likely CD rates will also begin to drop sometime in 2024.

What is the Fed target interest rate in 2024? ›

The Federal Reserve has decided to hold interest rates steady after its meeting on June 11 and 12, 2024. The federal funds target rate has remained at 5.25% to 5.5% since July 2023.

Which bank gives 7% interest on CD? ›

Right now, there aren't any financial institutions offering 7% interest on a CD.

Which bank gives 8 interest on savings accounts? ›

DCB Bank savings account interest rates

This private sector lender is offering an interest rate of 8% for savings account customers maintaining balances ranging from Rs 10 lakh to Rs 2 crore.

Who pays 7 interest? ›

If you're with one of these banks, you could be missing out on up to 7% interest on your savings
ProviderProductRate Type
First DirectRegular SaverFixed
Skipton Building SocietyMember Regular Saver (Issue 3)Fixed
Nationwide Building SocietyFlex Regular Saver (Issue 3)Variable
Lloyds BankClub Lloyds Monthly SaverFixed
Feb 6, 2024

Where can I get 6% on my savings? ›

Currently, there's only one account that pays 6% APY — Digital Federal Credit Union's savings account — and it only pays 6.17% APY on balances up to $1,000.

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