10 best high-yield savings accounts in September 2024: Up to 5.30% APY

Monthly maintenance fee

$0

Minimum deposit requirement

$0

On UFB’s Website

Our picks at a glance

All of our ranked high-yield savings accounts have no monthly maintenance fee, are protected by FDIC insurance and feature some of the highest interest rates for savings accounts. Information and rates are current as of September 17, 2024. Estimated earnings are based on a deposit of $10,000 left in each account for one year.

Methodology

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Our team of experts analyzed hundreds of data points and then used data-driven methodology and thorough fact-checking to come up with the best high-yield savings accounts. We heavily emphasized APY because maximizing earnings is the most important feature of high-yield savings accounts. You can read more about our methodology below.

My Banking Direct High Yield Savings

Varo Savings Account

Best for smaller balances

UFB Direct High Yield Savings

Best for Google Play ratings

EverBank Performance Savings

Best for pairing with a CD

Laurel Road High Yield Savings

Best for full banking experience

Bask Bank Interest Savings

Best for no minimum deposit

BrioDirect High-Yield Savings

LendingClub Bank High-Yield Savings

Best for monthly deposits

CIBC U.S. Agility Online Savings

Salem Five Direct eOne Savings

Best for Apple Store ratings

What is a high-yield savings account?

They’re savings accounts that give you much better-than-average interest rates on your money, resulting in high APYs. It’s worth noting that there are no meaningful differences between a savings account and a high-yield savings account, so you should look at the account names interchangeably when comparing APYs.

As of September 2024, the average APY for all types of US savings accounts was 0.46%, according to the FDIC. However, several high-yield savings accounts offered rates of 5.00% and higher. Many of the best HYSA rates are offered by online-only banks because they have much lower operating costs than traditional, brick-and-mortar banks, allowing them to offer high APYs to attract customers.

Historical savings rates of our best HYSA picks

How do high-yield savings accounts work?

Banks provide interest in exchange for you keeping your money in an account. The amount of interest you’ll earn is determined by your balance, the interest rate and how often that rate is compounded.

Compound interest is interest you earn on your initial deposit and interest you’ve earned, so you’re earning interest on interest. This lets your money grow much faster than simple interest, which is interest only on the initial deposit.

An account compounding frequency may be daily, monthly or yearly. The more frequently interest is compounded, the more money you’ll make.

Should I get a high-yield savings account?

High-yield savings accounts are a great place to put money that you want to grow quickly but also can access anytime. While regular savings accounts are easy to access, they generally don’t earn as much as high-yield savings accounts.

“Banks are offering attractive rates; the return is not trivial. You’re getting a decent return for no risk and some nice benefits and services,” said Dr. Steve Pilloff, associate professor of finance at Costello College of Business at George Mason University. “If it’s a savings account at an insured financial institution, then your funds are fully guaranteed up to $250,000. So, for most people, their funds are fully guaranteed.”

High-yield savings accounts are also worth considering if you are saving toward a specific goal such as an emergency fund or down payment on a new home. You not only earn high interest — you also have a single, convenient place to add to your savings.

Keep in mind that HYSA interest rates fluctuate based on market conditions. Take advantage of these high rates before they drop, which might happen later this year.

What to consider when choosing a high-yield savings account

The same basic rules apply to choosing a high-yield savings account that apply to any other bank account: It all comes down to your financial goals.

“I would definitely look at the yield — the rates that are being paid — but also look at minimum balances, minimum required balances and penalties,” said Pilloff. “So you don’t want to just get mesmerized by, like, ‘Oh, wow, four and a half percent.’ If you look and see you have to maintain a certain amount in your account, or else the rate falls to a certain level or you’d have to pay a fee, then that could be a problem if you’re going to struggle to meet that balance.”

Here are a few things to consider:

• Interest rate: You want to look not only at the rate currently being offered but also how long it lasts. In some cases what you see on a bank’s website is a promotional rate that might expire after six months or so, then drop down to a lower rate.
• Initial deposit: Some banks require a deposit to open a high-yield savings account. These often range from $5 to $100, but some accounts have much higher minimum deposits.
• Minimum balance: Read the fine print to learn the minimum balance to avoid service fees and earn the maximum APY.
• Fees: Many high-yield savings accounts have no fees, but some do. Make sure you know the fee structure before opening an account. If an account has a monthly maintenance fee, you can expect it to range from $5 to $20.
• Compounding interest: Before opening the account, find out whether interest is compounded daily, monthly or yearly. This can make a big difference in how quickly you grow your money.

Pros and cons of high-yield savings accounts

No bank account offers everything, and that’s the case with high-yield savings accounts as well. Here’s a look at some of their strengths and weaknesses:

Pros

• High APYs compared to other types of deposit accounts
• Low fees (at least with online-only banks)
• High returns without high risks

Cons

• APY can change at any time, notably when the Fed makes interest rate adjustments
• Stricter requirements than traditional savings accounts at some banks
• High opening deposit and/or minimum balance requirements for some accounts
• Not ideal for daily banking, especially since many high-yield savings accounts are stand-alone and can’t be bundled with a checking account

How to choose the best high-interest savings account

To get the most out of your high-yield savings account, the first thing you want to do is ensure the rate is competitive with the best in the industry.

“A lot of times when financial institutions like banks want to bring in money, they’ll offer attractive rates. And so even though they’re all insured and offer a similar level of protection, the rates that are offered can vary quite substantially,” said Pilloff. “So, it’s helpful to look around to find the institutions that are offering the highest, most attractive rates.”

Next, double-check the fine print regarding how long the rate lasts, what the minimum deposit and balance requirements are, how often interest is compounded and whether your deposits are FDIC-insured.

When it comes to fees, you want to make sure you pay as little as possible. Here are some different fees to keep an eye on:

• Monthly service fees that kick in if you don’t meet minimum balance or other requirements.
• Inactivity fees for not making any deposits or withdrawals over a certain period.
• ATM fees for using machines outside of the bank’s network.
• Excessive withdrawal fees if the bank limits your savings account withdrawals per month.

Alternatives to high-yield savings accounts

The purpose of high-yield savings accounts is to give you the biggest return possible with a savings account, but it’s not always the best option depending on how you plan to use the account. Here are some options for alternatives to high-yield savings accounts.

Money market accounts

Money market accounts combine features of savings and checking accounts. The best money market accounts offer rates that compete with high-yield savings accounts, while also usually giving you the ability to use checks and a debit card for limited transactions each month.

Certificates of deposit (CDs)

CDs are a good alternative to high-yield savings accounts if you have a large lump-sum deposit and want to lock in a rate while rates are high. This might be a better option if you don’t need your money in the short term and want to lock in a high rate rather than risk rates going down.

The main drawback with a CD is that your money is locked up for the entire term. If you withdraw before the term is early, you’ll usually face an early withdrawal penalty.

The best CDs offer great rates and low minimum opening deposits.

High-yield checking accounts

Some of the best high-yield checking accounts offer rates that are competitive with the best high-yield savings accounts. This is in addition to the obvious added utility that a checking account provides over a savings account. However, high-yield checking accounts often have various requirements for account activity to earn the high rates.

Recent news on HYSA rates

Current federal fund target rate

The federal funds target rate now sits between 5.25% and 5.50%. Although most traditional banks still pay very little interest on savings accounts, you may find many HYSAs that more closely reflect the Fed’s benchmark rate.

“Overall, what we’ve seen is the national average, according to the FDIC, for savings rates are still really low,” said Dr. Brian Walsh, CFP and head of advice and planning at SoFi. “But, we’re still seeing very competitive offers. For example, SoFi Checking and Savings has 4.60% APY, as well as some other digital-first providers that are still offering a competitive APY.”

Inflation slowdown could affect savings rates

It appears that the Fed’s efforts to control inflation are working, according to data from the Bureau of Labor Statistics. The Consumer Price Index (CPI) for June 2024 showed a 3.0% change from 12 months ago, which is much lower than the 9.1% inflation rate reported in June 2022. While the Fed hasn’t reached its 2% target yet, if inflation continues to decline, we may see a cut to interest rates later this year.

Looking forward to high-yield savings rates in September 2024

So, what does this mean for the rates offered on high-yield savings accounts?

“I think as the Fed starts cutting rates, we’ll ultimately see rates start going down on savings accounts,” Walsh continued. “It’s just a question of how quickly they go down in response to those rate cuts.”

However, according to Walsh, it’s important to know what type of institution you are banking with to determine if you’ll be able to keep a higher rate for longer.

“A bank has more power and control over the interest rate or the APY that they offer,” Walsh said. “So, in theory, a bank could keep that APY higher, even after the Fed starts cutting rates. On the flip side, institutions that aren’t banks that really offer cash management accounts … rely on other banks to ultimately provide that APY to their customers. So, those institutions have much less control to keep rates higher, even if they’re offering a very high rate right now.”

No one knows what will happen in the future, so it’s a good idea to take advantage of high interest rates now while you still can.

Methodology

CNN Underscored Money analyzed 68 savings accounts from 57 financial institutions to come up with the rankings for the best high-yield savings accounts. This included accounts from a mix of traditional banks, online banks and credit unions that are available nationally. We ranked each account on nine data points across six categories.

Here are the categories we analyzed and how we weighted each:

APY (65%)

The amount of interest you earn on your savings is the most important part of choosing a high-yield savings account for many consumers, so we weighted this highest of any factor.

Fees (10%)

Fees are a critical factor to consider with your high-yield savings account because they can eat away at any interest earnings, especially if an account has a high monthly maintenance fee.

Customer experience (5%)

While you’ll likely deal with your bank less often with a high-yield savings account than you will with a checking account, it’s still important to have a bank that’s trustworthy and easy to reach when you need help.

Digital experience (5%)

You’ll want a bank with a usable app and plenty of online features so that it’s easy to bank from anywhere.

Minimum deposit requirement (5%)

A high minimum deposit makes a savings account less accessible, so we rewarded accounts that more people can use.

Minimum balance to avoid a monthly fee (5%)

A high minimum balance to avoid monthly fees limits flexibility with your savings account because you’re limited in how much you can transfer or use for unexpected expenses without being penalized by fees.

We also considered several other factors like welcome bonuses and tier structures to earn APY.

Membership requirement (5%)

Financial institutions may have membership requirements you must meet to join and get accounts. For example, some credit unions have eligibility based on a list of employers, counties of residence or membership in certain charitable organizations. We rewarded financial institutions that allow anyone to sign up.

Frequently asked questions (FAQs)

How are high-yield savings accounts different from regular savings accounts?

One difference is that high-yield savings accounts can pay higher interest rates than regular savings accounts, but this isn’t always true and the two accounts are very similar. You might also see lower fees at high-yield savings accounts offered by online banks.

Are high-yield savings accounts safe?

As long as the account is offered by an FDIC member institution, it protects your money like any other FDIC-insured account. This means your savings are insured up to $250,000 per depositor, per insured bank, for each account ownership category. If your high-yield savings account is offered by a credit union, your money is insured for up to $250,000 per depositor by the NCUA.

Do high-yield savings accounts have withdrawal limitations?

Under the federal government’s Regulation D, all savings accounts let you withdraw or transfer money up to six times a month without paying any fees. Although this regulation was indefinitely suspended during the Covid-19 pandemic, many banks still impose the six-withdrawal limit.

Do I have to pay taxes on my savings account?

You pay taxes on interest earned from your savings account because it is considered taxable income. Your bank or credit union will send you a 1099-INT tax form early in the year for you to report any interest that you earned on your account.

How often do savings rates change?

Interest rates for high-yield savings accounts are variable, so they can change at any time based on market conditions. However, savings rates for most accounts do not often change drastically unless the Federal Reserve makes rate changes.

What is a good APY for a savings account?

Most of the best high-yield savings accounts currently offer an APY of close to 5.00% or higher. This is much higher than the current national average of 0.46% as of September 2024, according to the FDIC. You’ll usually find the highest APYs at online banks.

Are there penalties for closing a high-yield savings account?

Some banks might charge a fee if you close a savings account soon after opening it, but it’s up to the individual bank. There is no specific industry regulation imposing penalties for closing a high-yield savings account.

How often do high-yield savings accounts pay interest?

Financial institutions typically pay interest on a monthly basis, but some may pay it in different intervals.

CNN Underscored Money analyzed savings accounts from the following financial institutions:

Ally Bank, Amalgamated Bank, American Express National Bank, Axos Bank, Bank of America, Bank5 Connect, Barclays, Bask Bank, Bethpage Federal Credit Union, BMO, Bread Savings, BrioDirect, Capital One, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens Access, Citizens Access, Discover Bank, E*TRADE, EverBank, Fifth Third Bank, First Foundation, First Internet Bank, First National Bank, FNBO Direct, Heritage Bank, Huntington Bank, KeyBank, Laurel Road, LendingClub Bank, Marcus by Goldman Sachs, My Banking Direct, Navy Federal, NBKC, Pentagon Federal, PNC, Popular Direct, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, SchoolsFirst Federal, SoFi, Synchrony Bank, TAB Bank, TD Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank & Trust Bank, USAA Bank, Varo, Vio Bank and Wells Fargo

Additional reporting by Carley Clark and Dori Zinn