High-yield savings accounts now offer annual percentage yields above 5%, significantly better than the 0.01% rates many traditional banks still pay. For anyone building an emergency fund or saving for a major purchase, these accounts are worth a close look.
This guide covers the top-performing accounts, explains how we evaluated them, and answers common questions about maximizing returns while keeping your money safe.
Our Top Picks at a Glance
All accounts below are FDIC-insured, protecting deposits up to $250,000 per depositor.
| Account | APY | Minimum Deposit | Monthly Fee | Key Feature |
|---|---|---|---|---|
| Varo Savings Account | 5.00% | $0 | $0 | No minimum to earn APY |
| Marcus by Goldman Sachs | 4.50% | $0 | $0 | Strong brand, no fees |
| Ally High Yield Savings | 4.35% | $0 | $0 | Excellent mobile app |
| Discover Online Savings | 4.45% | $0 | $0 | Cashback rewards program |
| Capital One 360 Performance | 4.30% | $0 | $0 | Physical branch access |
| Synchrony Bank | 4.75% | $0 | $0 | Large ATM network |
| CIT Bank | 4.75% | $1,000 | $0 | Tiered rate structure |
| American Express Savings | 4.35% | $1 | $0 | Trusted brand |
Rates are current as of late 2024 and subject to change.
How We Evaluated These Accounts
We looked at several factors that directly impact your experience and earnings.
Interest Rate Analysis: We examined both the stated APY and whether the rate has remained stable over time. Banks that maintain competitive yields even when the Fed changes interest rates scored higher.
Fee Structure Assessment: Monthly maintenance fees and withdrawal limits can eat into earnings. We focused on accounts with $0 monthly fees that allow at least six withdrawals per statement cycle without penalty.
Minimum Deposit Requirements: Some accounts require $1,000 or more to open, which excludes people just starting to save. We prioritized accounts with low or no minimums.
Digital Experience and Customer Support: We checked app ratings, website functionality, and whether customer service is available 24/7.
FDIC Insurance Verification: Every account listed carries FDIC insurance.
Varo Savings Account: Best for No-Minimum Earnings
Varo offers 5.00% APY with no minimum balance requirement. Whether you have $100 or $100,000 in the account, you earn the same rate.
This makes Varo particularly attractive for people building emergency funds or opening their first savings account. No monthly fees, no minimum deposit, and you don’t need to maintain a specific balance to earn the advertised APY.
Varo is an online-only bank, which lets them offer higher rates since they don’t have the overhead of physical branches. The mobile app includes budgeting tools and automatic savings features—you can set up direct deposit to automatically move part of your paycheck into savings.
Marcus by Goldman Sachs: Best for Brand Reliability
Marcus is the online banking arm of Goldman Sachs, one of the largest investment banks in the world. The account pays 4.50% APY with no fees and no minimum deposit.
For savers who feel uneasy about online-only banks, the Goldman Sachs name provides reassurance. Marcus offers helpful features like goal-based savings buckets and scheduled transfers. If you ever need a personal loan, Marcus provides those too, and you can manage everything in one place.
Discover Online Savings: Best for Added Benefits
Discover’s Online Savings Account offers 4.45% APY with no minimum deposit and no monthly fees, matching competitors on the basics. What sets Discover apart is its rewards program—earn cashback on certain account activities and promotions.
The online and mobile banking tools are solid, making it easy to track your savings goals. Discover has been around for decades, so you get the stability of an established financial company alongside competitive rates.
Synchrony Bank: Best for ATM Access
Synchrony Bank pays 4.75% APY with no minimum deposit and no monthly fees. The standout feature is the extensive ATM network—Synchrony issues a debit card usable at thousands of ATMs, and the bank reimburses fees charged by other institutions up to certain limits.
This matters if you occasionally need cash but don’t want to sacrifice the higher interest rates that online-only banks typically offer. Synchrony combines competitive yields with actual ATM access, which isn’t always easy to find.
CIT Bank: Best for Large Deposits
CIT Bank offers 4.75% APY but requires $1,000 to open the account—a higher minimum than most competitors. However, CIT offers tiered rates that reward larger balances with even better returns.
If you have $10,000 or more to deposit, CIT can be worth it. There are no monthly maintenance fees, and the savings experience is straightforward and focused on competitive returns.
How to Open a High-Yield Savings Account
The process takes 10-20 minutes and can be done entirely online.
Step 1: Research and Compare Options: Check current APY rates and account features. Consider fees, minimum deposits, and mobile banking quality—not just interest rates.
Step 2: Gather Required Information: Have your Social Security number, government-issued ID, physical address, and bank account information ready. You may also need employment details.
Step 3: Complete the Application: Visit the bank’s website or download their app. Provide personal information and verify your identity through the security process.
Step 4: Fund Your Account: Link an existing bank account to transfer funds. Most banks support ACH transfers, wire transfers, or check deposits. Some offer sign-up bonuses for new customers.
Step 5: Set Up Automatic Transfers: Establish automatic transfers from your checking account. Even small regular contributions add up significantly over time thanks to compound interest.
Is a High-Yield Savings Account Right for You?
These accounts work well for specific situations:
Ideal For: Emergency funds, saving for major purchases like cars or vacations, short-term goals, and money you want accessible while earning interest. FDIC insurance protects your money, so you don’t have to worry about market volatility.
Less Ideal For: Long-term wealth building (investing in stocks or bonds typically yields higher returns over many years), money needed for daily expenses (checking accounts are better), and retirement funds (use 401ks and IRAs instead).
The difference between 0.01% APY and 5.00% APY on a $10,000 balance is about $499 per year in interest. That’s real money that shouldn’t be left on the table.
Frequently Asked Questions
What is the highest APY currently available?
As of late 2024, around 5.00% is the top rate, offered by banks like Varo. Most competitive accounts fall between 4.30% and 5.00%. Rates change based on Federal Reserve policy and individual bank decisions.
Are these accounts safe?
Yes. FDIC-insured accounts are among the safest places for your money. The FDIC protects deposits up to $250,000 per depositor, even if the bank fails.
How much can I earn?
It depends on your balance and rate. $10,000 at 4.50% APY earns about $450 in a year. At 5.00% APY, that same $10,000 earns about $500. Interest compounds monthly, so your earnings grow over time.
Do these accounts have fees?
The best high-yield savings accounts have $0 monthly fees. Some may charge for excessive withdrawals, wire transfers, or other special services—always check the fee schedule before opening an account.
What is the minimum deposit?
It varies. Many online banks require nothing to open an account. Others require $1,000 or more. If you’re just starting out, look for accounts with no minimum deposit.
How often do rates change?
Banks can change APY at any time, though they typically adjust in response to Federal Reserve rate decisions. Since 2022, rates have climbed as the Fed raised the federal funds rate. Future changes will depend on economic conditions and Fed policy.