High-Yield Savings Accounts: 7 Best Options for Growing Your Money

Saving money is always a good idea, but finding the right place to save can make a big difference.

High-yield savings accounts are a great option if you want your savings to grow faster. These accounts offer higher interest rates than traditional savings accounts, making your money work harder for you.

Navigating all the options can be a bit overwhelming, though.

To help you out, we’ve gathered some of the best high-yield savings accounts available today.

By choosing one of these accounts, you can boost your savings and reach your financial goals more quickly.

1) Ally Bank

Ally Bank is a top choice if you’re looking for a high-yield savings account.

It offers a strong interest rate of 4.20% APY.

This rate is pretty competitive compared to other banks.

One great thing about Ally Bank is that it doesn’t have any monthly maintenance fees.

You won’t have to worry about hidden charges eating into your savings.

You can open an account online, which makes it really convenient.

Ally’s savings account gives you easy access to your money whenever you need it.

There’s no need to visit a branch or deal with paperwork.

Interest rates with Ally Bank can vary.

Your rate might change based on your balance tier.

For example, balances under $5,000, between $5,000 and $24,999.99, and $25,000 or more have different tiers.

Another benefit is that Ally doesn’t charge for going over the limit of 10 transactions per cycle.

There’s no fee for an overdraft either.

Be aware, there are some costs.

If you need an outgoing wire transfer, it will cost you $20.

Expedited check delivery costs $15.

To learn more about what Ally Bank offers, visit their official website.

If you’re comparing rates, check this review for more details.

2) Marcus by Goldman Sachs

Marcus by Goldman Sachs offers an attractive high-yield savings account.

With an impressive 4.40% annual percentage yield (APY) as of July 2024, it’s a solid choice for anyone looking to grow their savings.

There are no fees or minimum deposit requirements, so you can start saving without any hassle.

You also have the convenience of same-day transfers for amounts up to $100,000 to and from other banks.

Marcus ensures your funds are backed by the financial expertise of Goldman Sachs.

There’s also a contact center available 24/7 to answer any of your questions, giving you peace of mind.

This account stands out because its APY is roughly 10 times higher than the national average.

This makes it one of the best online savings options out there.

In addition, Marcus has been accredited by the Better Business Bureau (BBB) and holds an A+ rating.

This shows a commitment to resolving customer concerns, although the average customer review rating is low.

If you prefer a savings option with a fixed rate, Marcus also provides accounts where your money is locked in for a set term.

This means you won’t be able to touch the principal until the term ends, but you can still withdraw the interest earned.

For more details or to open an account, you can visit Marcus by Goldman Sachs.

3) Synchrony Bank

Synchrony Bank offers a high-yield savings account with an attractive annual percentage yield (APY) of 4.75%.

You can start a savings account without needing to make an initial deposit.

This is great if you want flexibility.

There are no monthly fees for maintaining the account.

This makes it easier to save without worrying about hidden costs.

To top it off, you don’t need a minimum balance.

Synchrony Bank provides an optional ATM card.

This is handy for withdrawing cash and doing basic transactions at ATMs with Plus or Accel Logos, both in the U.S. and overseas.

It’s a helpful feature if you need easy access to your money.

Synchrony Bank’s interest compounds daily and is credited to your account monthly.

This helps your savings grow faster.

The bank also features certificates of deposit (CDs) and money market accounts if you want to explore other savings options.

These accounts can also offer competitive rates.

If your account balance stays at $0 for more than 60 days, it might get closed.

This is important to remember if you decide to open an account.

But as long as you keep some money in there, you’ll be fine.

Synchrony Bank’s high-yield savings account is one of the best out there, with its competitive 4.75% APY.

It’s a solid choice for anyone looking to grow their savings quickly without dealing with fees or minimum balance requirements.

4) Capital One 360 Performance Savings

The Capital One 360 Performance Savings account is a solid choice if you’re looking for a high-yield savings account.

It offers a competitive interest rate of 4.25% APY on all balances.

This is much higher than the national average for savings accounts.

One of the best things about this account is that there are no minimum balance requirements.

You can open it with any amount of money.

You also won’t need to worry about monthly fees.

Interest is compounded daily and credited to your account monthly, helping your savings grow faster.

It’s easy to open an account online or via the mobile app in just a few minutes.

No need to jump through hoops to get started.

Just have your basic information ready, like your name, date of birth, and contact details.

You can open an account quickly and start earning interest right away.

If you prefer to do your banking in person, you can visit one of the Capital One locations.

This flexibility makes it convenient for anyone looking to manage their savings easily.

Capital One 360 Performance Savings is a reliable option for growing your money without the hassle of fees or minimum balances.

It’s straightforward and convenient, making it a great choice for many people.

Check out their online performance savings account for more details.

5) American Express High Yield Savings Account

If you’re looking for a high-yield savings account, American Express offers one with a competitive rate.

Right now, the account comes with a 4.35% APY.

This rate is pretty attractive compared to traditional savings accounts.

There are no monthly fees and no minimum balance requirements.

That means you can start saving without worrying about hidden costs.

You can access your money at any time, thanks to their 24/7 online banking features.

This can be really convenient if you need to move your money around quickly.

Customer service is available around the clock.

If you ever have questions or problems, you can get help whenever you need it.

You can open your account online in just a few minutes.

Once your account is approved, you can link it to your existing bank account or mail in a check to fund it.

Another perk is that your savings are insured by the FDIC, which should give you peace of mind.

The interest you earn with American Express is better than most brick-and-mortar banks.

Traditional banks often offer rates as low as 0.45% APY.

If you want to calculate your potential earnings, consider this: With the 4.35% APY, you’d earn $435 on a $10,000 balance over a year.

The American Express High Yield Savings Account is a solid choice for those who want better returns on their savings without sacrificing access to their money.

For more info, you can visit the American Express savings account page.

6) Discover Online Savings Account

The Discover Online Savings Account offers a high yield with no monthly fees.

You get a 4.25% APY, which is among the best in the market right now.

Opening an account is easy and fully online.

Plus, you don’t need a minimum deposit to get started.

This makes it accessible if you’re just beginning to save.

One highlight is that this account has no monthly balance requirement.

You won’t get hit with fees if your balance dips.

Your deposits in the Discover Online Savings Account are FDIC insured up to $250,000 per depositor.

This means your money is safe and secure.

For those who prefer managing their money on the go, Discover’s mobile app makes it easy to check your balance and transfer funds.

It’s convenient and user-friendly.

7) PNC High Yield Savings

PNC High Yield Savings is a solid choice if you’re looking to grow your savings with a good interest rate.

With an APY of 4.65%, it stands out among other savings accounts.

This account offers no minimum balance requirements, so even if you start small, you earn the same rate.

One great feature of the PNC High Yield Savings account is that there are no monthly service fees.

This means more of your money stays in your account, growing over time.

You can also apply for the account online, making it convenient to get started without visiting a branch.

Access to your funds is flexible, though you must be mindful of the number of withdrawals you make.

Frequent withdrawals could incur fees.

This account is straightforward and user-friendly, giving you peace of mind with a high APY and low hassle.

Compared to the national average savings interest rate of 0.36%, this account’s 4.65% APY is significantly higher.

Whether your goal is to save for a rainy day or to build up a larger financial cushion, this account helps you reach your goals faster.

If you’re a California resident, you might also want to check out the bank’s privacy rights summary to understand how your information is used.

This attention to detail shows PNC’s commitment to customer care.

Understanding High-Yield Savings Accounts

High-yield savings accounts offer better interest rates than regular savings accounts.

Here’s what makes them unique and worth considering for growing your money.

How They Are Different From Regular Savings Accounts

High-yield savings accounts offer significantly higher interest rates compared to regular savings accounts.

For instance, while the average savings account might offer around 0.45%, high-yield accounts can provide rates between 4.5% and 5%, as noted by CNBC.

Banks often provide these accounts online, which reduces overhead costs and allows them to pass the savings on to you in the form of higher interest rates.

You still get easy access to your money, but with much better growth potential.

Benefits of High-Yield Savings Accounts

One major advantage is the higher interest rate, which means your money grows faster.

For instance, NerdWallet explains that these accounts usually offer rates far above the national average.

They are also safe places to store your money since they are typically insured by the FDIC up to $250,000.

Another benefit is the flexibility these accounts offer—you can link them to your checking account for easy transfers.

Potential Drawbacks

While high-yield savings accounts are great, there are some downsides.

Sometimes, you need a higher minimum balance to access the best rates.

You might also face limits on the number of transactions you can make each month without incurring fees.

Some accounts can also have fluctuating rates, which might be a concern if you prefer stable earnings.

It’s important to consider these factors and choose an account that fits your specific needs.

Maximizing Your Earnings

When it comes to high-yield savings accounts, getting the most out of your money means focusing on interest rates, avoiding unnecessary fees, and practicing smart saving habits.

Comparing Interest Rates

Interest rates are a key factor in earning more with a high-yield savings account.

It’s important to shop around and compare rates from different banks.

Some of the best rates can currently be found at BrioDirect with 5.30% APY and Western Alliance Bank for high APY.

Always check whether the rates are introductory offers or if they’re consistent over time.

Keep an eye on rate changes, especially since they can fluctuate with market conditions.

Monthly Fees and How to Avoid Them

Monthly fees can eat into your savings, so it’s important to choose accounts that minimize these extra costs.

Look for accounts that don’t charge monthly maintenance fees.

Some top picks, such as accounts at LendingClub, offer options with no minimum balance requirements or fees.

If your account does have a fee, see if there are ways to waive it.

This often includes maintaining a minimum balance or setting up direct deposits.

Make sure to read the fine print to understand all conditions.

Tips on Increasing Your Savings

Maximizing your savings is not only about where you keep your money but also how you save it.

Set up automatic transfers from your checking to your savings account.

This ensures you consistently set aside money without needing to think about it.

Consider using budgeting apps to track your expenses and identify areas where you can cut back.

Even small changes, like making coffee at home instead of buying it, can add up over time.

Monitoring your account regularly ensures you’re aware of any fee changes or opportunities to move your money to higher interest accounts.

Security and Accessibility

When choosing a high-yield savings account, it’s important to consider how secure your money is and how easily you can access it.

Also, think about the differences between online and traditional banks in terms of safety and convenience.

FDIC Insurance and What It Means for You

FDIC insurance is key for keeping your money safe.

The Federal Deposit Insurance Corporation (FDIC) insures deposits up to $250,000 per depositor, per insured bank.

This means if your bank fails, you’re covered for that amount.

This protection applies to checking, savings, money markets, and certificates of deposit (CDs).

It’s important to check if your bank is FDIC insured.

Most banks prominently display this information.

Banks that are FDIC insured follow strict regulations, adding another layer of security.

Knowing your money is insured can give you peace of mind, especially with higher amounts saved.

Accessing Your Money

Easy access to your money is important.

High-yield savings accounts usually allow you to transfer funds online.

Transfers between your savings and checking account with the same bank are typically instant.

External transfers might take a couple of days.

Some accounts offer ATM cards for easier access to cash.

However, beware of ATM fees that could apply.

Many high-yield accounts don’t allow check writing or daily debit card use.

So, if you need frequent access, make sure to pick an account that suits your needs.

Always check the bank’s rules to avoid any surprise restrictions when you need your money most.

Online vs. Traditional Banks

Online banks often provide higher interest rates because they have fewer overhead costs compared to traditional banks.

This can mean better returns for you.

With online banks, you usually handle transactions through their website or app.

This is convenient, but you might miss face-to-face interactions.

Traditional banks offer the benefit of in-person service.

You can visit branches, talk to bankers directly, and access a variety of services.

The downside is often lower interest rates for savings accounts.

Both types of banks have their pros and cons.

If convenience and higher rates matter more, an online bank might be a better fit.

If personalized service is what you need, a traditional bank could serve you well.

Frequently Asked Questions

High-yield savings accounts offer better interest rates than traditional savings accounts.

You can usually find them at online banks.

The downside is that interest rates can change often.

What are the benefits of a high-yield savings account?

High-yield savings accounts provide higher interest rates, helping your money grow faster compared to traditional savings accounts.

They often have fewer fees and no minimum balance requirements.

This means you get to keep more of your hard-earned money.

How does the interest on a high-yield savings account compare to traditional savings accounts?

Interest rates on high-yield savings accounts are generally much higher than those of traditional savings accounts.

For instance, American Express High Yield Savings Account offers 4.25% APY, whereas traditional accounts often offer rates below 1%.

Can you explain how to use a high-yield savings account calculator?

A high-yield savings account calculator helps you estimate how much interest you can earn over time.

You input your initial deposit, expected monthly contributions, and the account’s APY.

The calculator will show your balance over a specified period, making it easier to see your potential earnings.

Which banks offer the top high-yield savings accounts right now?

Several banks are offering top high-yield savings accounts.

These include Ally Bank, Marcus by Goldman Sachs, and Capital One 360 Performance Savings.

Are there any drawbacks to opening a high-yield savings account with an online bank?

One drawback is that online banks often lack physical branches.

This means you can’t deposit cash directly.

However, they usually compensate with higher interest rates and better digital tools.

If you don’t need physical branches, an online bank could be a great option.

How often do interest rates on high-yield savings accounts change?

Interest rates on high-yield savings accounts can change frequently.

Banks may adjust rates based on economic conditions.

It’s a good idea to keep an eye on your account’s APY and compare it with other banks periodically to ensure you’re getting the best rate.