Compare interest rates and maximize your savings by putting your money in the best high-yield savings account.
Best high-yield savings accounts with interest rates
The following are the financial institutions that offer the highest-yield savings accounts along with the annual percentage yield (APY) and important information about them.
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Related article: Money Market vs. Savings Accounts
Popular Direct – 5.20% APY
The Popular Direct Select Savings account earns 5.20% APY, is FDIC-insured, and requires a $5,000 minimum deposit. Popular Direct offers a competitive interest rate, and it requires a higher minimum deposit than most financial institutions.
Bread Savings by Comenity Direct – 5.00% APY
The Bread Savings High-Yield Savings Account offers 5.00% APY on all balances. It’s FDIC-insured and requires a $100 minimum opening balance. If you enroll in online statements, there aren’t any monthly fees. If you choose paper statements, you’ll be charged $5 per month. There’s also a maximum deposit balance limit of $10 million per account holder.
Synchrony Bank – 4.50% APY
Synchrony Bank’s High Yield Savings Account earns 4.50% APY on all balances without a minimum balance requirement or monthly fees. Your account is FDIC-insured, and you can get an optional ATM card for accessibility. Synchrony Bank will also reimburse up to $5 of domestic ATM fees per month.
Affirm – 4.35% APY
To get a savings account with Affirm, you need to download the app. There aren’t any minimum balance requirements or fees. The Affirm Savings account is also FDIC-insured up to $250,000, and you’ll earn 4.15% APY regardless of your balance.
Capital One – 4.30% APY
The Capital One 360 Performance Savings Account offers 4.30% APY without a minimum balance or maintenance fees. Capital One also offers excellent credit cards. If you want a central place to do your banking, consider Capital One.
Ally Bank – 4.25% APY
Ally Bank’s Online Savings account pays you 4.25% APY regardless of your balance. Ally Bank is FDIC-insured up to $250,000, which means your funds are safe. There aren’t any monthly maintenance fees or minimum balance requirements.
American Express – 4.25% APY
American Express is well-known for credit cards. However, the High Yield Savings Account is worth some attention because it pays 4.25% APY without monthly fees or minimum balance requirements. It’s also FDIC-insured, so you can rest assured that your money is backed.
Morgan Stanley E-Trade – 4.25% APY
Through E-Trade, Morgan Stanley offers one of the top high-yield savings accounts.
The Premium Savings Account offers an APY of 4.25%.
It doesn’t have a minimum balance requirement or monthly fees. You can do ACH and wire transfers or deposit funds with a check.
Alliant Credit Union – 3.10% APY
Alliant Credit Union is a member-owned not-for-profit financial cooperative. The High-Rate Savings account earns 3.10% APY if you have an average daily balance of $100 or more. It’s one of the highest rates in the nation and the best among credit unions. A $5 initial deposit is required, and there’s no monthly fee if you choose eStatements.
Frequently asked questions
What’s a high-yield savings account?
High-yield savings accounts are the same as a traditional savings account, but they pay a higher interest rate, which means you’ll get better returns.
Are online savings accounts a good idea?
As long as you choose a financial institution that’s federally insured, online savings accounts are a terrific idea. They’re just as safe and secure as banking with a brick-and-mortar financial institution. Banks are insured by the FDIC, and credit unions are insured by the NCUA.
How often do savings account interest rates change?
The interest rate can change at any time because it’s influenced by the Federal Reserve. When the Federal Reserve increases the federal funds rate, loan and deposit account rates go up. The same goes for it going down. Rates typically stay the same for weeks or months.
Are high-yield savings accounts worth it?
Yes, high-yield savings accounts are worth it because you’ll earn more than a savings account with a lower interest rate. Although you won’t have the same potential as investing in stocks, it’s much better than a low-yield savings account.
Does opening a high-yield savings account affect credit score?
No, it won’t affect your credit score because financial institutions screen your banking history. A lot of financial institutions will use ChexSystems, which gives you a score based on your banking history.
Featured image courtesy of Pixabay.
About David Em
David Em is the founder of More Money More Choices, which he launched to help you take control of your finances and build your dream life. Before More Money More Choices, David worked in leadership positions in the finance industry.