Key takeaways
- High-yield savings accounts can reduce the impact of inflation on your savings.
- When comparing high-yield savings accounts, consider fees, features and benefits in addition to annual percentage yield (APY).
- Review brick-and-mortar banks, online banks and credit unions when deciding where to open a high-yield savings account.
The average savings account yield is 0.57% as of August 5, according to a Bankrate survey of 500 financial institutions. If you’re looking for a higher yield—one that provides some protection against inflation—a high-yield savings account might be a good choice.
Yields are likely to remain somewhat rangebound with the Federal Reserve continuing to keep its benchmark between 425 and 450 basis points, as announced following the July meeting. However, rates might fall later in the year, depending on how tariffs shape the outlook for inflation and hiring. Analysts believe Fed officials may resume cutting rates at their next meeting in September.
Many high-yield savings accounts offer interest rates higher than the national average. Find the best high-yield savings accounts by shopping around, including credit unions, community banks and online banks in your search.
Choosing the best high-yield savings account
Your high-yield savings account comparison should include factors that matter most to you, in addition to APY.
What factors impact interest rates?
High-yield savings account rates are heavily influenced by the federal-funds rate, which is a benchmark set by the Federal Reserve. On July 30, the Federal Reserve decided to keep its benchmark steady, following a trend established earlier in the year due to economic uncertainty. In their statement announcing the decision, officials noted that they will continue to watch both inflation and the health of the labor market ahead of future rate decisions.
If the Federal Reserve raises its rate, banks often increase the yield they pay on savings. On the other hand, if the Federal Reserve cuts rates, like it did three times from September 2024 to the end of the year, interest rates on financial products are likely to fall.
In addition to the federal funds rate, business goals impact interest rates. Banks and credit unions might offer competitive yields to attract depositors. A financial institution usually sets its rates based on how much profit it wants to make on the difference between yields paid to depositors and interest earned from the loans it makes. For example, a bank might pay you 4.15% APY to keep your money in an account and lend those funds to a borrower at 8.99% APR.
Minimum deposit and balance requirements
Even though a higher yield is a strong incentive to choose a savings account, other factors to consider include minimum deposit and balance requirements.
- Minimum deposit: Review how much you need to open an account. Some high-yield savings accounts have no minimum deposit requirements, while others require $100 or more.
- Minimum balance: You might be required to maintain a minimum balance to avoid a monthly fee or to earn the advertised yield. It might not be the best high-yield savings account for your needs if you can't meet the requirements.
Confirm that your bank deposits are protected by the Federal Deposit Insurance Corporation (FDIC). (Credit union deposits are protected by the National Credit Union Administration.)
Withdrawal limits and restrictions
Even though there's no longer a regulatory requirement to limit certain withdrawals and transactions to six per month, some banks and credit unions impose restrictions. Check the account to determine whether a penalty accompanies withdrawals and transfers beyond a certain number.
Understand how the institution differentiates between withdrawals, transfers and other transactions. Some institutions might allow unlimited transfers between connected accounts but restrict the number of cash withdrawals.
Best high-yield savings accounts by category
When comparing high-yield savings accounts, look beyond APY to consider what features and benefits might fit your needs.
Best overall high-yield savings account
Capital One 360 Performance Savings
Key Stats:
- APY: 3.60%
- No minimum opening balance or monthly maintenance fee
- Open and manage your account via web, mobile app, branch
- Set and track savings goals via online and app-based tools
- Account can be linked to a Capital One checking account
Why we chose it: Even though the Capital One Performance 360 doesn’t pay the highest APY, it consistently yields more than the national average. Capital One earned the highest ranking in the J.D. Power 2024 U.S. National Banking Association Study. This is the fifth consecutive year Capital One’s savings offering has received this ranking, indicating that consumers are consistently satisfied with this offering.
Capital One has cafes and branches nationwide and more than 70,000 fee-free ATMs. This combines brick-and-mortar access with online banking and access via a mobile app.
The Capital One Performance 360 savings account comes with no minimums and no maintenance fees, and you earn the highest yield on your total balance. You can connect your savings account to a Capital One 360 checking account for easy transfers.
Caveats: Capital One Performance 360's interest rate is competitive, but other savings products offer higher yields.
Best online
Ally Online Savings
Key stats:
- APY: 3.60%
- No minimum opening balance
- No monthly maintenance fee
- Open and manage your account online via web or mobile app
- Tools like “bucketing” help you save for specific goals
Why we chose it: In addition to offering a competitive yield (though not the highest), Ally provides personal finance tools designed to help you save for multiple goals with “buckets.” Additionally, it’s relatively easy to set up automatic savings, moving small amounts of money from your Ally checking account to your savings through roundups.
Ally’s all-digital platform allows remote check deposit, and you can access your money at more than 75,000 Allpoint and MoneyPass ATMs. Ally also offers up to $10 per month in reimbursement for fees charged by other ATM networks.
Caveats: There are no in-person branches, so if you want access to in-person banking and customer service, this online bank might not be the best option for you. You’re limited to 10 withdrawals per month.
Best for yield
Axos High Yield Savings Account
Key Stats:
- APY: Up to 4.66%
- No minimum deposit to open account
- No minimum balance requirement or monthly maintenance fee
Why we chose it: Axos ONE offers the highest APY of those on this list, and there’s no minimum requirement to receive the highest advertised rate. Axos doesn’t charge monthly fees or penalties for excess transactions. Axos also offers access to 95,000 fee-free ATMs and the ability to link to external accounts to move money.
Caveats: To qualify for the APY on Axos ONE’s savings account, you must also open a checking account and meet minimum monthly deposits and balance requirements on that account. Plus, Axos doesn’t have physical branches. If you prefer to bank in person, this might not be a good choice for you.
Best neobank savings account
Bread High-Yield Savings Account
Key stats:
- APY: 4.30%
- $100 opening deposit requirement
- No maximum or minimum to earn interest
- No matching checking account
- $5 fee for paper statements
Why we chose it: Rather than being a traditional bank, neobanks are fintech companies. They partner with banks to offer high-yield savings accounts with FDIC protection. Bread Financial is the parent company of Comenity Capital Bank, and that’s where its FDIC-insured products are housed. In some cases, neobanks use third parties to manage their relationships with FDIC-insured banks, which can lead to situations where you might not be able to access your money if the third party has problems—but the actual FDIC-insured institution hasn’t failed. Bread is unlikely to have that outcome since it owns the bank.
Bread doesn’t charge fees for incoming wire transfers, and there are no maintenance fees. You earn the advertised APY on your entire balance after meeting the relatively low $100 minimum to open an account.
Caveats: There’s no associated checking account with Bread Savings, although it does offer credit cards. Additionally, if you request a paper statement, you must pay a $5 fee.
Best credit union savings account
Alliant High-Rate Savings
Key stats:
- APY: 3.10%
- $5 minimum opening deposit
- No monthly maintenance fee (but $1 waivable paper statement fee)
- $100 minimum balance to earn APY
- No geographic limitations on membership
Why we chose it: Alliant makes it easy to join and open a savings account without requirements to live, work, study or worship within a specific geographic area. Instead, the field of membership criteria requires contributing $5 to the Alliant Credit Union Foundation if you don’t meet other requirements. This makes it relatively easy for almost anyone to join.
Alliant High-Rate Savings has a reasonably competitive rate, although it’s not the highest. It offers access to more than 80,000 ATMs, with card use available for the savings account. Fees are comparatively low, as is the minimum balance requirement. You can also access the Alliant Visa Signature Card, which is on our list of Best Cash Back Cards.
Caveats: To earn the advertised yield, you must maintain a balance of at least $100, and you need $5 to open the account. Alliant offers no physical branches, so if in-person access is important to you, this might not be the right credit union choice.
Best for investors
Premium Savings Account from Morgan Stanley Private Bank
Key stats:
- APY: 4.00%
- No minimum opening balance
- No monthly maintenance fee
- Integrates with E*Trade
Why we chose it: E*Trade, which is owned by Morgan Stanley, offers this account along with access to a commission-free online brokerage. The Premium Savings Account allows you to move funds between your investments and savings without leaving the E*Trade platform.
Money in the savings product comes with a higher FDIC insurance coverage limit of $500,000 because its program is connected to multiple banks and distributes your money across them to help you receive a higher limit. There are no minimum balances and no monthly fees, and the APY is competitive with other high-yield savings accounts.
Caveats: While there is no minimum deposit requirement to open an account, you must fund it within 30 days to keep it open. In the 2025 U.S. Direct Banking Satisfaction Study by J.D. Power, E*Trade scored just below the category average—702 compared to an average of 705 out of 1,000—for satisfaction among savings providers.
Best banks and credit unions offering high-yield savings accounts
To get the best high-yield savings account for you, compare three to five other options. You might find a better fit for your needs by exploring additional online savings accounts, credit unions or traditional banks.
Top online banks with high-yield savings accounts
- My Banking Direct: My Banking Direct typically offers a higher yield than its online counterpart Ally, currently 4.30% APY. Although there’s a $500 opening deposit requirement, there are no monthly maintenance fees. However, unlike Ally, which provides a suite of regular banking products, including checking accounts, My Banking Direct’s offerings are more limited.
- CIT Bank: CIT’s Platinum Savings account offers a much higher APY if you can maintain a balance of $5,000 or more. If you plan to keep a higher balance, you might be able to maximize it with this account.
Best credit unions for high APYs
- PenFed: As with Alliant, PenFed allows anyone to join, regardless of occupation or geographic location. The Premium Online Savings yield is much higher than the national average but typically lower than that of other online savings products.
- Digital Federal Credit Union: Anyone can join by meeting basic criteria and opening an account with $5. This credit union account offers a much higher yield than many other products, but you only earn the yield on the first $1,000 in the account. After that, the yield is lower than the national average.
Traditional banks offering competitive high-yield savings rates
- Citibank: Citi has a branch network on top of more than 65,000 fee-free ATMs, so the Citi Accelerate Savings account might be an attractive option if you live near a branch. The yield is competitive with other high-yield savings products. However, residents of certain states don’t have access to this account, so verify that you live in an eligible state before opening an account. The Citi Accelerate Savings account comes with a $4.50 monthly fee that can be waived.
- U.S. Bank: With more than 2,000 branches, this might be the most attractive option for in-person banking. The Bank Smartly Savings account earns a yield that aligns with other high-yield accounts, but you must connect it to a Bank Smartly Checking account or a Safe Debit account. You need $25 as an opening deposit.
How to maximize earnings with a high-yield savings account
In a high-yield savings account, your cash has the potential to grow faster, to help you meet financial goals like expanding an emergency fund or taking a vacation.
Strategies to get the highest APY
Compare rates from multiple financial institutions and consider using a list (like those offered by Buy Side) as a starting point. In some cases, it might make sense to open multiple accounts to take advantage of high yields based on tiers.
For example, you might consider putting your first $1,000 in the Digital Federal Credit Union account that offers one of the highest yields while opening an account with CIT that requires a $5,000 minimum to get its advertised best rate.
If you can’t meet a higher minimum, consider an account that pays the best-advertised rate on the entire balance until you can open a high-yield account with more stringent criteria for earning the highest APY.
How often do interest rates change?
Interest rates on high-yield savings accounts can change at any time. It’s at the discretion of the financial institution, although they are influenced by the federal-funds rate. The Federal Reserve makes decisions about its benchmark interest rate eight times a year.
When to consider switching accounts
If you can get a substantially higher yield by moving your money, it might make sense. For example, if you have $1,000 and contribute $50 a month in a savings account yielding 3.70% and compounded daily, your total interest earned at the end of the year is $47.99. On the other hand, you might find an account with 4.00% APY compounded daily. At the end of a year, your total interest earned is $51.95. You might decide that the difference of $3.96 isn’t worth the trouble of moving your money to a new account.
The switch might be worth it if you’re only earning the national average. At 0.60% APY compounded daily, you might only earn $7.67 in total interest for the year.
Additionally, if you have a larger amount of money to deposit and you qualify for a higher APY as a result, it might be worth it to make the move. If you have $30,000, and you add $1,000 to your savings account each month, at the end of the year, compounded daily, the difference between 3.70% APY and 4.50% APY is $1,336.65 vs. $1,631.83.
Historical savings account interest rates
According to the FDIC, the national average in May 2021 was 0.06%. It’s higher now, four years later, but if the Federal Reserve starts cutting rates, the national average could fall.
Savings APYs change regularly, moving with market conditions and economic news. This table shows some of the changes to APYs (which represent interest rates compounded over an entire year) over time:
Major national brick-and-mortar banks, like Chase and Bank of America, pay yields much lower than the national average on their savings accounts. For several months, these banks have paid 0.01% APY.
Are high-yield savings accounts safe?
High-yield savings accounts are generally considered safe if they’re held at an insured institution. The Federal Deposit Insurance Corporation insures banks, and the National Credit Union Administration insures credit unions. Your money is insured against financial institution failure up to federal limits. If the bank or credit union fails, your money is transferred to another institution or you receive it back.
Methodology
To choose Buy Side's best high-yield savings accounts, we looked for accounts offering the highest annual percentage yields (APYs) on deposited funds. We gave preference to those without earning restrictions. We also looked for accounts without monthly maintenance fees, or with easily waivable fees, and prioritized accounts without high balance and deposit requirements over those with high minimums (though in some cases, APYs are competitive enough to justify high minimums). We also considered accessibility, user-friendliness of banking platforms and the customer reputations of the banking institutions that offer these accounts.
Banks chosen for this list are FDIC members or offer accounts issued through FDIC members, which protects account holders' deposits. The exceptions are those offered by credit unions, which are protected by a parallel organization, the National Credit Union Administration (NCUA).
The terms we used to make our selections were updated in February 2025. We periodically update the story to reflect recent market conditions, so rates quoted are current as of the dateline.
Savings rates change frequently, so quotes might not reflect the most recent updates in advertised yields from banks.
FAQ
What is the highest APY available right now?
The highest APY available changes frequently. As of August 5, 2025, Digital Federal Credit Union offers 5.50% APY on the first $1,000 deposited. Other institutions offer up to 4.20%, according to DepositAccounts.com. These rates can change and might be higher or lower depending on market conditions and other factors.
Are online banks better for high-yield savings?
In some cases, online banks can offer higher yields than more traditional brick-and-mortar institutions. Check with smaller local and regional banks and credit unions to see if they offer yields comparable to online financial institutions.
Can I open multiple high-yield savings accounts?
Yes, you can open multiple high-yield savings accounts at different financial institutions. Some institutions might not let you open more than one savings account with them.
How do high-yield savings accounts compare to CDs?
CDs guarantee a rate for a certain period of time, while high-yield savings accounts can change the APY at any time.
Do high-yield savings accounts have withdrawal limits?
While the federal regulators no longer require limits on monthly withdrawals, individual financial institutions can choose to impose limits if they wish.
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