High-yield savings accounts have gained popularity in recent years, especially with the convenience of online banking. These accounts offer better interest rates than traditional savings accounts, helping your money grow faster while still maintaining safety and accessibility. This article reviews the best online high-yield savings accounts available today, helping you choose the one that suits your financial goals.
What Is a High-Yield Savings Account?
A high-yield savings account is a savings account that offers a higher annual percentage yield (APY) than regular savings accounts. This means that the money you save earns more interest over time. Online banks often offer better rates than traditional brick-and-mortar banks because they have lower overhead costs, allowing them to pass on the savings to customers through higher interest rates.
Benefits of High-Yield Savings Accounts
High-yield savings accounts have several benefits that make them an attractive option for savers. Below are some key advantages:
Higher Interest Rates
The primary benefit of a high-yield savings account is the higher interest rate. While a traditional savings account might offer a rate as low as 0.01% APY, high-yield savings accounts can offer rates that are 10 to 20 times higher. This means your savings can grow significantly faster, especially over time.
FDIC or NCUA Insurance
High-yield savings accounts from reputable banks and credit unions are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). This ensures that your money is protected up to $250,000 in the event the bank or credit union fails.
Liquidity
Unlike certificates of deposit (CDs) or other long-term investments, high-yield savings accounts offer liquidity. You can access your money whenever you need it, making these accounts ideal for emergency funds or short-term savings goals.
No or Low Fees
Many online high-yield savings accounts come with minimal fees. Some banks even waive maintenance fees, and there are no fees for transferring money in or out of your account. This helps you maximize your earnings without worrying about fees eating into your savings.
How to Choose the Best High-Yield Savings Account
With so many options available, it can be difficult to choose the right high-yield savings account. Here are some factors to consider when making your decision:
Interest Rate (APY)
The interest rate is one of the most important factors to consider. A higher APY means your savings will grow faster. However, make sure to check whether the interest rate is fixed or variable, as some banks may lower the rate after a promotional period.
Minimum Balance Requirements
Some high-yield savings accounts require a minimum balance to open the account or to earn the advertised APY. Make sure to choose an account with a minimum balance requirement that you can easily maintain.
Fees
Look for an account with low or no fees. Common fees include monthly maintenance fees, transfer fees, and ATM withdrawal fees. Avoid accounts that charge excessive fees, as these can offset the benefits of a higher interest rate.
Accessibility
Consider how easily you can access your funds. Some online savings accounts limit the number of transfers or withdrawals you can make each month. Make sure the account you choose allows you to access your money when you need it.
Customer Service
Good customer service is essential, especially when banking online. Look for banks that offer 24/7 customer support, live chat options, or easy-to-use mobile apps to manage your account on the go.
Best Online High-Yield Savings Accounts
Below is a review of some of the best high-yield savings accounts available online. These accounts offer competitive APYs, low fees, and other features that make them stand out.
1. Marcus by Goldman Sachs
APY: 4.30%
Marcus by Goldman Sachs is a popular choice for high-yield savings accounts. With an APY of 4.30%, this account offers one of the highest interest rates available. There are no monthly fees, and no minimum balance is required to open an account or earn the high APY.
Key Features:
- Competitive APY of 4.30%
- No minimum balance requirement
- No monthly maintenance fees
- FDIC insured
Pros:
- High interest rate
- No fees
- Easy online access
Cons:
- No ATM access
- Limited customer service options
2. Ally Bank
APY: 4.25%
Ally Bank is another top contender in the high-yield savings account market. With an APY of 4.25%, Ally offers competitive rates and a user-friendly online platform. There are no monthly maintenance fees, and the account includes features like savings buckets and automatic transfers to help you reach your financial goals.
Key Features:
- APY of 4.25%
- No minimum deposit to open
- No monthly fees
- Savings buckets for goal-setting
- FDIC insured
Pros:
- High APY
- Great online tools
- No fees
Cons:
- No branch locations
- Limited ATM access
3. Discover Online Savings Account
APY: 4.20%
Discover Bank offers a solid high-yield savings account with an APY of 4.20%. The account comes with no minimum balance requirement, no monthly fees, and access to Discover’s well-regarded customer service. This account is ideal for those who value customer support and easy access to their funds.
Key Features:
- APY of 4.20%
- No minimum balance to open
- No fees
- 24/7 customer service
- FDIC insured
Pros:
- Excellent customer service
- High APY
- No fees
Cons:
- No ATM card
- Transfer limits
4. American Express® High Yield Savings Account
APY: 4.15%
American Express is known for its credit cards, but it also offers a high-yield savings account with an APY of 4.15%. There are no monthly fees or minimum balance requirements, making it an accessible option for many savers. The account is easy to manage through American Express’s online platform.
Key Features:
- APY of 4.15%
- No fees or minimum balance requirements
- FDIC insured
- Reputable brand
Pros:
- High interest rate
- No fees
- Trusted bank
Cons:
- No ATM access
- Limited customer service hours
5. Synchrony Bank High Yield Savings
APY: 4.30%
Synchrony Bank offers a high-yield savings account with an APY of 4.30%. This account stands out for its inclusion of an ATM card, making it easier to access your funds. Synchrony’s account has no monthly fees and no minimum balance requirements.
Key Features:
- APY of 4.30%
- No monthly fees
- ATM card included
- FDIC insured
Pros:
- High APY
- ATM access
- No fees
Cons:
- Limited customer service
- No physical branches
6. CIT Bank Savings Connect
APY: 4.60%
CIT Bank offers one of the highest APYs in the market at 4.60%. The account requires a minimum deposit of $100 to open, but there are no monthly fees. CIT Bank also offers a mobile app that makes it easy to manage your savings on the go.
Key Features:
- APY of 4.60%
- $100 minimum deposit to open
- No monthly fees
- FDIC insured
Pros:
- Very high APY
- Easy online access
- Mobile app available
Cons:
- Minimum deposit required
- No ATM access
7. Capital One 360 Performance Savings
APY: 4.30%
Capital One 360 Performance Savings offers an APY of 4.30% with no fees and no minimum deposit requirements. Capital One is known for its strong customer service and user-friendly online platform. This account is a good option for those looking for a hassle-free savings experience.
Key Features:
- APY of 4.30%
- No fees or minimum balance
- Excellent customer service
- FDIC insured
Pros:
- Competitive interest rate
- Easy account management
- No fees
Cons:
- Limited ATM access
- No branch locations in some areas
How to Open an Online High-Yield Savings Account
Opening an online high-yield savings account is usually quick and easy. Here are the general steps you can follow:
Step 1: Compare Accounts
Before opening an account, compare different high-yield savings accounts to find the one that best meets your needs. Look at factors like APY, fees, minimum balance requirements, and accessibility.
Step 2: Gather Personal Information
To open an account, you’ll need to provide personal information such as your name, address, Social Security number, and a valid form of identification. Some banks may also ask for your employment details.
Step 3: Complete the Application
Most online banks offer a simple application process that can be completed in a matter of minutes. You’ll typically fill out the required information online and agree to the bank’s terms and conditions.
Step 4: Fund Your Account
Once your application is approved, you’ll need to fund your new high-yield savings account. This can usually be done by linking an existing bank account and transferring funds electronically.
Step 5: Start Earning Interest
After funding your account, you can start earning interest on your savings. Many high-yield savings accounts offer interest that compounds daily, allowing your money to grow faster over time.
Conclusion
Choosing the best high-yield savings account depends on your individual needs and financial goals. With numerous online options available, you can find an account that offers a competitive APY, low fees, and convenient access to your funds.
In summary, high-yield savings accounts are an excellent way to grow your savings while maintaining flexibility and security. The accounts reviewed in this article—Marcus by Goldman Sachs, Ally Bank, Discover Online Savings, American Express High Yield Savings, Synchrony Bank, CIT Bank, and Capital One 360 Performance Savings—each offer unique features that cater to different preferences.