High-yield savings accounts can help you grow your money faster by boosting your interest earnings. They’re especially valuable for meeting short-term financial goals. Choosing the best high-yield savings account depends on your personal needs and preferences. Look for accounts that offer a competitive APY, and don’t forget to take fees into account when comparing rates.
1. ING Direct
The best high-yield savings accounts offer a strong interest rate and good perks. They also have low account minimums and few to no fees. These accounts are typically offered by online banks and credit unions that are available nationally. Many of these institutions are federally insured by the FDIC or NCUA.
Standout features include a flexible withdrawal option (up to six free withdrawals or transfers per statement cycle) and no fees for depositing checks and wire transfers from other bank accounts. It also offers an ATM card, and reimburses out-of-network ATM fees up to $10 per month. The Synchrony High Yield Savings Account is an especially appealing option for those who want to keep all their money in one place. It also offers an IRA savings account with a competitive interest rate.
Another great online-only option is SoFi, which began as a student loan refinancing company and now offers a full suite of financial products. The SoFi savings account is a good option for people who are new to investing, because it doesn’t require a minimum balance. It offers a variable interest rate and the ability to link it to a SoFi checking account, which has an even higher APY.
2. Bank of America
Many financial institutions offer high-yield savings accounts, which are an excellent way to earn more interest on funds that are tucked away for a specific money goal. These accounts can be a useful alternative to checking accounts (which typically don’t pay much in interest) or certificates of deposit (CDs), depending on your particular financial situation.
You should also consider the minimum cash deposits required to open a high-yield savings account, as well as any monthly service fees or other requirements you’ll need to meet to avoid incurring them. It’s important to compare these features carefully before choosing an account, as they can have a big impact on the amount of interest you’ll earn.
UFB Direct, which is an online division of FDIC-insured Axos Bank, offers one of the best savings rates in the country. Its Secure Savings account pays 5.25% APY with no fees and no minimum balance requirements. It also links to your checking account for easy transfers, and you can withdraw funds at ATMs nationwide. However, it doesn’t have a physical branch, so you won’t be able to visit a branch or talk to someone in person about your accounts.
3. Chase Savings
Chase is the nation’s largest bank and one of its best-known names, but it doesn’t offer a high-yield savings account. Its traditional savings accounts have below-average APYs, while the bank’s Premier Relationship Savings accounts earn a higher rate but require customers to meet relationship requirements.
The bank also offers a variety of other deposit products, such as certificates of deposit (CDs), and it boasts a massive branch network. While its yields don’t impress, Chase is known for offering some decent credit card rewards and banking bonuses.
But if you’re looking to earn more interest on your savings, you’d be better off finding a competing account at an online bank. These online alternatives typically have much higher APYs and feature tools that can help you automate your savings. Unlike brick-and-mortar banks, which must pay more overhead costs to maintain physical branches, online banks are able to pass these savings on to their customers. The result is higher-yield savings accounts that can outperform Chase’s offerings.
4. TD Bank
A high-yield savings account lets you grow your money much faster than a standard one, thanks to their higher interest rates. These accounts can come with fees, minimum balance requirements and withdrawal limits, so it’s important to shop around before opening an account.
The best options typically have a competitive annual percentage yield, a low minimum opening deposit and no monthly maintenance fee. You’ll also want to look for a federally insured bank or credit union, as this ensures your funds are safe if the company fails.
TD Bank offers several banking products, including checking accounts and savings accounts. It’s a good choice if you like to do all your banking with one company and enjoy relationship benefits like a 2% cash back credit card or mortgage perks. The company has an NR rating from the Better Business Bureau for its handling of customer complaints. It’s available nationally and has a good online banking app. TD is the only top-ranked financial institution to offer an IRA, but it also has other options for saving money.
5. Capital One 360
A high-yield savings account is a great way to earn more interest than the national average. If you have a specific savings goal in mind, earning as much as possible will help you reach it more quickly. While many banks offer high rates on checking accounts, it’s important to look at APY and avoid fees that can eat into your returns.
Capital One 360 offers an attractive 4.35% APY on its 360 Performance Savings account. While its rate isn’t the highest on this list, it’s well above the national average. It also doesn’t charge any maintenance or ATM fees and has no minimum deposit requirements.
The bank also has a limited number of brick-and-mortar locations, but most of its banking operations are online. Its mobile app is easy to use and offers award-winning customer service. You can open up to 25 savings sub-accounts to save for different financial goals.
Many of these savings accounts have a companion checking account. This makes it easier to transfer funds from your savings to your checking. In addition, you can open a second savings account with a different institution to score a better interest rate.