Looking to make your cash work harder? With today’s competitive rates, a high-yield savings account is a simple, secure place to earn more on your money. This guide breaks down the top options and how to choose the right one for you.
Why a High-Yield Savings Account is a Smart Move
A high-yield savings account (HYSA) is a type of savings account offered by banks and credit unions that pays a significantly higher interest rate than traditional savings accounts. While your money is safely stored, it’s actively growing thanks to compound interest. This makes HYSAs an ideal home for your emergency fund, a savings goal like a vacation or down payment, or any cash you want to keep liquid and protected. Funds in these accounts are typically insured by the FDIC or NCUA for up to $250,000 per depositor.
How We Chose the Top Accounts
To find the 10 best high-yield savings options, we evaluated accounts based on key factors that matter to savers: the annual percentage yield (APY), minimum deposit requirements, monthly fees, customer service accessibility, and user experience through mobile apps. We prioritized accounts that are easy to open, free to maintain, and offer consistently competitive returns.
The Top 10 High-Yield Savings Accounts
Here’s a curated list of standout accounts, highlighting their unique benefits to help you find your best match.
1. SoFi Checking and Savings
- APY: Up to 4.29% (with conditions)
- Best For: All-in-one banking
This hybrid account combines checking and savings, offering a strong base rate and frequent promotional rate boosts for new members. It stands out with budgeting tools like “Savings Vaults” and round-up features, all with no monthly fees.
2. EverBank Performance Savings
- APY: 4.06%
- Best For: Top-tier base rate
EverBank offers one of the highest standard rates on the market with no complex requirements. It’s a straightforward, no-fee account where your entire balance earns a top yield.
3. Bask Interest Savings Account
- APY: 3.99%
- Best For: High rate with simplicity
Bask Bank delivers a consistently excellent rate in a no-frills package. There’s no minimum deposit, and the high APY applies to all balance tiers, making growth effortless.
4. TAB Bank Save Account
- APY: 3.89%
- Best For: Solid yield from a regional bank
TAB Bank provides a compelling rate without minimums or fees. It’s a pure savings play from a smaller institution that often competes aggressively on rate.
5. UFB Portfolio Savings
- APY: 3.68%
- Best For: Savers who value digital tools
UFB Direct pairs a strong rate with a highly-rated mobile app and a complimentary ATM card, offering both growth and easy access.
6. Barclays Online Savings
- APY: 2.70%
- Best For: Goal-oriented savers
A trusted name in banking, Barclays offers a robust rate and a helpful “Savings Assistant” tool to help you plan and track progress toward your financial goals.
7. Synchrony Bank High-Yield Savings
- APY: 3.66%
- Best For: ATM access
Synchrony provides a competitive rate and stands out by offering an optional ATM card for its savings account, along with fee reimbursements, adding a layer of convenience.
8. American Express High-Yield Savings
- APY: 3.53%
- Best For: Brand trust and simplicity
Backed by a renowned financial brand, this account offers a reliable rate and a seamless user experience, ideal for existing AmEx customers or those who prefer a trusted name.
9. Capital One 360 Performance Savings
- APY: 3.42%
- Best For: User-friendly experience
Capital One excels with an intuitive mobile app and the ability to create multiple named sub-accounts for different goals, all while earning a solid, no-fee yield.
10. Ally Savings Account
- APY: 3.29%
- Best For: Savvy saving tools
Ally is known for its customer-centric features like “Surprise Savings” (which analyzes spending to find extra money to save) and buckets for organizing goals, paired with a respectable rate.
Note: All APYs and offers are subject to change. Always verify details directly with the bank before opening an account.
Key Features to Compare When Choosing an Account
Don’t just pick the highest number. Consider these factors to find your best fit:
- APY vs. Interest Rate: Always look at the Annual Percentage Yield (APY). This includes compound interest and shows your real rate of return.
- Compounding Frequency: Interest can compound daily, monthly, or quarterly. Daily compounding will grow your money slightly faster over time.
- Fees: The best high-yield savings accounts have no monthly maintenance fees, minimum balance fees, or excessive charges.
- Access & Transfer Options: Check how easy it is to move money in and out. Is there a mobile app? Can you link external accounts? Are there ATM options?
- Minimums: Many top accounts have $0 minimums to open and earn interest, but always confirm.
Useful Tips for Maximizing Your HYSA
- Automate Your Savings: Set up automatic transfers from your checking account right after payday. This “pay yourself first” approach builds savings effortlessly.
- Designate Its Purpose: Use your HYSA for a specific goal (e.g., “Emergency Fund” or “Home Reno”). This mental accounting reduces the temptation to dip into it.
- Don’t “Set and Forget”: While HYSAs are low-maintenance, rates change. Review your account’s rate annually to ensure it’s still competitive.
- Ladder Your Accounts: For larger sums, consider splitting money between a HYSA for immediate access and CDs for longer-term, higher-rate locks.
- Use Sub-Accounts: If your bank offers it (like SoFi Vaults or Capital One’s buckets), create separate sub-accounts for different goals to track progress visually.
FAQ: High-Yield Savings Accounts Explained
Q: Is my money safe in a high-yield savings account?
A: Yes. Provided the bank is FDIC-insured (or the credit union is NCUA-insured), your deposits are protected up to $250,000 per account holder, per institution. This makes them one of the safest places to keep cash.
Q: Are there any downsides to HYSAs?
A: The primary downside is that interest rates are variable and can decrease if the overall economy shifts. They also aren’t designed for daily spending and may have transfer limits (like 6 per statement cycle, though this rule is often suspended). For long-term wealth building (like retirement), investing generally offers higher potential returns.
Q: How is the interest taxed?
A: Interest earned is considered taxable income. You’ll receive a 1099-INT form from your bank if you earn over $10, which you must report on your annual tax return.
Q: What’s the difference between a HYSA and a CD?
A: A HYSA offers liquidity with a variable rate. A Certificate of Deposit (CD) offers a fixed, often higher, rate but requires you to lock up your money for a set term (e.g., 12 months). Withdrawing early from a CD usually incurs a penalty.
Q: Can I open more than one HYSA?
A: Absolutely. It’s common to open different high-yield savings accounts at different banks—one for an emergency fund and another for a specific goal, or to take advantage of various promotional rates.
Conclusion
Choosing one of the 10 best high-yield savings accounts is a powerful, low-effort step toward improving your financial health. By prioritizing a competitive APY, no fees, and features that match your habits, you can turn your stagnant cash into a growing asset. Start by comparing a few options from our list, consider your savings goals, and take the simple step to open an account. Your future self will thank you for the extra earned interest and the peace of mind that comes with a robust savings cushion.
