The best high-yield savings accounts for July 2024: Earn up to 5.30%
The best high-yield savings accounts typically offer competitive interest rates, low or no fees, easy online access, FDIC insurance, and added features like mobile banking.
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Jacqueline DeMarco has been a personal finance writer for over seven years and is a contributor to Credible. She has contributed content to more than a dozen financial brands, including LendingTree, Credit Karma, Fundera, Chime, MagnifyMoney, Student Loan Hero, ValuePenguin, SoFi, and Northwestern Mutual.
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Hanna Horvath is a CERTIFIED FINANCIAL PLANNER™ and Bankrate's senior editor of content partnerships.
Updated July 1, 2024, 10:10 AM EDT
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You work hard for your money, so why not make it work hard for you? When you put your money in a savings account, you not only keep it safe, you help it grow faster.
The average savings account interest rate is 0.59% APY — but you can do much better with a high-yield savings account. These accounts work like traditional accounts but offer much higher interest rates — up to almost 10 times the national average.
Here are some of the best high-yield savings accounts on the market.
What are the best high-yield savings accounts?
The best high-yield savings accounts offer competitive interest rates, have no monthly fees, and require low or no minimum initial deposits. Rates are accurate as of July 2024.
What is a high-yield savings account?
A high-yield savings account offers higher interest rates compared to traditional savings accounts. These accounts help you grow your savings while keeping your money accessible.
The average savings account interest rate is 0.61% as of Dec. 4, 2023. But with a high-yield savings account, you can sometimes earn over 5%. That’s more than eight times the average rate.
It’s easy to see how much higher interest rates can lead to increased earnings.
High-yield accounts often offer features such as higher interest rates, low or no fees, and FDIC insurance. With these accounts, you can earn interest on your money without taking on too much risk.
“For short-term financial goals, such as a vacation, wedding, or a down payment on a house, or as a place to park your emergency funds, a high-yield savings account can be a smart choice,” Ohan Kayikchyan, certified financial planner at Ohan The Money Doctor, says.
By taking advantage of the higher interest rates, you can make your money work harder for you and achieve your financial goals faster.
Traditional savings account vs. high-yield savings account
The key difference between traditional accounts and high-yield accounts is how much interest you'll earn.
It’s common to find high-yield savings accounts at online banks. Most online banks don’t have the overhead costs of running physical branches. Because of that, they can pass those savings on to customers in the form of lower fees and higher rates. You may also find a high-yield savings account at some credit unions.
The best high-yield savings accounts don’t have monthly fees or minimum balance requirements, but some may.
“It's important to check whether there are balance requirements to waive the monthly maintenance fees on high-yield savings accounts,” Kayikchyan says. “In some cases, maintaining a specified balance is a condition for receiving the advertised APY.”
Pros and cons of a high-yield savings account
Consider the advantages and disadvantages of high-yield savings accounts before opening an account.
Pros
- Higher interest rates: The number one advantage of a high-yield savings account is earning more interest and growing your savings faster.
- Minimal or no fees: You can usually find a high-yield savings account that doesn’t have fees or charges fewer fees than regular savings accounts.
- Insured savings: Most financial institutions offering high-yield savings accounts have insurance of up to $250,000 per person per account.
Cons
- Variable interest rates: “Interest rates on high-yield savings accounts are variable, which means that earnings are not very predictable,” Kayikchyan says. “Depending on the overall state of the economy, these rates will fluctuate over time.”
- Limited branch bank access: Online banks offer most high-yield savings accounts, so they won’t have access to any in-person banking services.
- Withdrawal and transfer limits: Like all savings accounts, there are limits on how often you can transfer or withdraw money from your account monthly.
How to pick the best high-yield savings account
Selecting the best high-yield savings account can be a game-changer when it comes to growing your money. Here's a step-by-step guide to help you choose the right account for you.
1. Determine your financial goals
Take a moment to reflect on your financial goals. Are you saving for a short-term objective, like building an emergency fund or planning a vacation? Or are you focusing on longer-term goals, such as saving for a down payment on a home or preparing for retirement? Understanding your goals will help you prioritize the features and benefits that matter most to you in a savings account.
2. Compare interest rates
One of the primary reasons to choose a high-yield savings account is to earn a competitive interest rate on your money. Take the time to shop around and compare rates from multiple banks and credit unions.
Don't forget to look beyond traditional brick-and-mortar institutions and consider online banks, which often offer higher rates due to lower overhead costs.
3. Evaluate fees and minimum balance requirements
While a high interest rate is important, it's not the only factor to consider. Take a close look at the fees associated with each account, such as monthly maintenance fees, overdraft fees, and wire transfer fees.
Some high-yield savings accounts may require a minimum balance to avoid fees or earn the advertised interest rate.
4. Consider accessibility
Think about how easily you need to access your funds. Some high-yield savings accounts may come with ATM access, mobile check deposit, or online bill pay, while others may have more limited features. Consider your banking preferences when evaluating the accessibility and convenience of each account.
5. Read the fine print
Before making a final decision, carefully review the terms and conditions of each high-yield savings account you're considering. Look for any restrictions or limitations, such as maximum withdrawal amounts or required minimum deposit amounts.
How we rated the best high-yield savings accounts
To determine the best high-yield savings accounts, we carefully evaluated a wide range of factors, including interest rates, fees, minimum deposit and balance requirements, and product mix.
Our team analyzed numerous bank offers and selected the top contenders based on these key criteria. The options on this list represent the best value benefits available. Learn more about our methodology here.
Frequently asked questions about high-yield savings accounts
Are high-yield savings accounts FDIC-insured?
Can I access my money in a high-yield savings account?
Are there any fees associated with high-yield savings accounts?
Can I open a high-yield savings account online?
How often do high-yield savings account rates change?
Are high-yield savings accounts safe?
The bottom line
Most savers have nothing to lose by opening a high-yield savings account. In fact, you have a lot to gain by giving your money more opportunity to grow.
Opening a high-yield savings account can help you reach your financial goals faster with no extra effort on your end. Just make sure to do your research and find the right account that fits your needs.
Editorial disclaimer: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.