Best High-Yield Savings Accounts of October 2024

The annual percentage yields, or APYs, of the best high-yield savings accounts, are about ten times higher than the 0.46% national average rate. This list has a lot of rates that are in the top 5%. High-yield savings accounts are the best options if you want your savings to increase.

Higher APYs are the outcome of the Federal Reserve’s rate hikes, making now the ideal moment to open a high-yield savings account. Accounts with average rates won’t increase your emergency fund as quickly as the options listed below. To view our editorial selections for the best savings accounts, scroll down. You can also find more information about savings accounts and what to think about before opening one at the bottom of the page.

FinanceProsper’s Tip: Today’s high rates might not last long. Take advantage of them while you can by opening a high-yield savings account that is federally insured.

Top High-Yield Savings Accounts for October 2024: Earn Up to 5.50% APY!

Bank/Institution	FinanceProsper Rating	APY	Bonus	Learn More
SoFi Checking and Savings	4.5/5	4.60% (with $0 min. balance for APY)	$300 (Earn up to $300 with direct deposit. Terms apply.)	at SoFi Bank, N.A., Member FDIC
CIT Bank Platinum Savings	4.5/5	5.00% (with $5,000 min. balance for APY)	N/A	at CIT Bank, Member FDIC
American Express® High Yield Savings Account	4.5/5	4.25% (with $1 min. balance for APY)	N/A	at American Express National Bank, Member FDIC
UFB Portfolio Savings	4.5/5	5.15% (with $0 min. balance for APY)	N/A	at UFB Direct, Member FDIC
Capital One 360 Performance Savings™	4.5/5	4.25% (with $0 min. balance for APY)	N/A	at Capital One, Member FDIC

ELIGIBLE FOR $100 IN REWARDS

SoFi Checking and Savings

FinanceProsper rating ★ 4.5 /5

at SoFi Bank, N.A., Member FDIC

APY

4.60%

With $0 min. balance for APY

Bonus

$300

Earn up to $300 with direct deposit. Terms apply.

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With the money you keep in the savings section of the SoFi Checking and Savings account, you can earn an annual percentage yield (APY) of 4.60% (variable and subject to change). You must do either of the following in order to receive that rate: Establish a manual deposit of at least $5,000 every 30 days, or set up a direct deposit of any amount. If you don’t make the required manual deposit or a direct deposit, you will receive 1.20% APY on your savings amount.

You may need to look elsewhere to satisfy your checking needs because certain banks that provide high-yield savings accounts also do not offer checking accounts. However, SoFi combines the two, and the money you keep in the account’s checking section earns 0.50% APY regardless of whether you make deposits or not (APY is variable and subject to change).

Both the initial deposit and monthly maintenance fees are waived when opening an account.

CIT Bank Platinum Savings

FinanceProsper rating ★ 4.5 /5

at CIT Bank, Member FDIC

APY

5.00%

With $5,000 min. balance for APY

Bonus

N/A

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When you have $5,000 or more in your CIT Platinum Savings account, you earn 5.00% APY; if you have less than $5,000, you earn a pitiful 0.25% APY.

This account is great if you have at least $5,000 to deposit. If not, the bank offers other savings accounts with better rates than 0.25% APY, but those rates aren’t as high as the Platinum Savings rate. Other banks have high-yield accounts without the $5,000 minimum deposit.

The account has no monthly fees and only requires a $100 minimum opening deposit, even though the high rate is earned only on a higher threshold.

American Express® High Yield Savings Account

FinanceProsper rating ★ 4.5 /5

at American Express National Bank, Member FDIC

APY

4.25%

With $0 min. balance for APY

Bonus

N/A

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The variable annual percentage yield (APY) of the account is 4.25% as of August 2024 and is subject to change after the account is opened. The specified APY can be obtained without requiring a minimum balance.

With no monthly maintenance fees, American Express® High Yield Savings Accounts make it simple to grow your savings without having to worry about losing money to fees.

There can only be nine account transfers made within a monthly statement cycle at American Express National Bank. Checks can be mailed in or deposits can be made online.

UFB Portfolio Savings

FinanceProsper rating ★ 4.5 /5

at UFB Direct, Member FDIC

APY

5.15%

With $0 min. balance for APY

Bonus

N/A

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There is no minimum deposit required and no monthly maintenance fee for UFB savings accounts. It offers a competitive rate of 5.15% APY for any balance. You can access standard banking features, such as mobile check deposits and fund transfers, through the account’s mobile app.

Editor’s note: Readers of FinanceProsper have reported delays in receiving resolutions from customer service over the past year. The star ratings for UFB Direct are unaffected by these complaints. For further information, please read the entire review.

Capital One 360 Performance Savings™

FinanceProsper rating ★ 4.5 /5

at Capital One, Member FDIC

APY

4.25%

With $0 min. balance for APY

Bonus

N/A

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The interest rate on all balances in this savings account is the same. To open an account, there is no minimum deposit needed, and there are no monthly fees. Additionally, the bank provides a checking account with no monthly fees and interest earning potential.

Best High-Yield Savings Accounts: Full List of Editorial Picks

When determining which high-yield savings accounts are the best, FinanceProsper considers many factors, such as monthly fees, minimum balance requirements, APY, mobile app ratings, and customer service availability. To read a complete review, click the financial institution’s name in the table below.

What is a High-Yield Savings Account?

A high-yield savings account is a form of federally insured savings merchandise with rates that are significantly higher than the national average. They can earn approximately 5%. On the other hand, the national rate is 0.46%.

Best High-Yield Savings Account for Maximum Earnings

In terms of APY, Poppy Bank is the top option among our selection of best high-yield savings accounts right now. As of right now, the annual percentage yield on a savings account is 5.50%.

Is Funding a High-Yield Savings Account Worth It?

Yes. Your balance can increase more quickly in a high-yield savings account than what happens in an average savings account over time. These accounts are also referred to as high-interest savings accounts. You are not putting forth any extra effort in doing this. In an account with a higher rate, your money is making things harder for you.

High-Yield Savings Account vs. Traditional Savings Account: What’s the Difference?

When comparing a regular savings account to a high-yield savings account, the yield on the former is substantially higher. High-yield savings accounts yield much higher interest rates than traditional savings accounts, which can have rates as low as 0.01% APY, especially when they are offered by big national banks. The best high-yield accounts currently offer rates that reach about 5% APY.

When Will Savings Rates Drop?

In an attempt to control inflation, the Federal Reserve has maintained a stable federal funds rate for the past year or so. During that same period, savings rates have also essentially remained unchanged. Rate reductions were expected at some point in 2024, according to experts. Because of the state of the market, they are still high. The good news for savers is that. October 2024 is now anticipated to see a rate reduction, though it’s difficult to predict whether or not this forecast will come true or how quickly savings rates will decline.

Alternatives to High-yield Savings Accounts

High-Yield Savings Account vs. Money Market Account: Which is Better?

Money market accounts (MMAs) and high-yield savings accounts (HYPAs) are two different kinds of savings accounts; MMAs usually allow you to make a few purchases every month and come with debit cards and checks. You can typically link both kinds of accounts to other deposit accounts—like checking accounts—to make electronic withdrawals as well as deposits. However, money market accounts provide the added advantage of debit cards or checks, making it simpler to access your money. This could be useful if you need to get hold of your money quickly. However, some MMAs have high minimum releasing deposits and monthly fees as well.

High-Yield Savings Account vs. Certificate of Deposit (CD): Which One to Choose?

Both certificates of deposit and high-yield savings accounts are federally insured deposit accounts; however, because CDs lock in your money for a predetermined amount of time, they typically have higher rates. Money that can be saved for the full CD term—which can be anywhere from just a few months to five years or longer—is best suited for CDs. Consider opening a CD if your short-term savings goal is to buy something in a few years. Though there might be a six-per-month cap on some withdrawal categories, money in high-yield savings accounts can typically be taken out whenever needed. For an emergency fund, a high-yield savings account is preferable over a certificate of deposit (CD).

High-Yield Savings Account vs. Checking Account: Key Differences Explained

High-yield savings accounts and checking accounts are different in that the former is used for account balance building, while the latter is used for regular spending. A high-yield savings account usually pays more interest than a checking account, even though it might have withdrawal restrictions of up to six per month for specific categories. However, some checking accounts do offer interest or cash-back incentives.

What Advantages Do High Savings Account Rates Offer?

Your bank balance can increase more quickly over time if you are earning more interest. You can potentially make more than ten times as much money in a bank account with an APY that earns just half a percent when it earns a high rate, like 5% APY. (For an example, see the following question.)

How Much Can You Earn with $10,000 in a High-Yield Savings Account?

Your balance will increase more quickly without any extra work on your part if your money is in an account that earns a high interest rate. After a year, a $10,000 savings balance with a 5% APY would yield slightly more than $500. Although the earnings won’t make you wealthy, they are still significantly higher than an account earning roughly $40 with an APY of 0.40%.

How To Select The Best Savings Account With A High Yield

Our approach should be followed when looking for a new high-yield savings account: yields should come first, followed by fees and the online experience.

• Step 1: Look for the best interest rates. Your savings account’s interest rate controls how much money grows, so it’s critical to achieve a competitive yield. Examine the highest rates before proceeding.
• Step 2: Look into fees. While most high-yield savings accounts charge fees for additional activities and services, many of them have no monthly maintenance fees. Visit the account’s website to view the fee schedule.
• Step 3: Pay attention to digital features. Your life can be made easier by robust mobile apps, intuitive online banking systems, and integrated budgeting and savings tools like savings buckets and auto-save choices.
• Step 4: Learn about customer satisfaction. To find out about the advantages and disadvantages of a bank or account from actual users, read customer reviews on rating sites and app stores. Searching for official complaints made against an institution is also a smart idea.
• Step 5: Check minimums. Many savings accounts can be opened and kept open with just $0, but some require a minimum deposit and balance in order to be opened or to be eligible for interest. Make sure the minimum requirements for an account align with your savings goals if they exist.

High-Yield Savings Accounts: Pros and Cons

Here’s a comparison of the advantages and disadvantages of standard high-yield savings accounts with alternative approaches to money growth.

Pros of High-Yield Savings Accounts

• give interest rates higher than those found in other savings plans.
• has federal insurance because it is a deposit account (unlike investments).
• can usually be accessed online, allowing you to stay at home.

Cons of High-yield Savings Accounts

• Occasionally has a higher minimum opening balance than standard savings accounts.
• Although having an online opening is a benefit, some are only available online, eliminating the possibility of in-person customer support.

High-APY Savings Accounts: Easy Access to Your Money

You can safely access your account day or night with online banking. Although offering fewer fees compared to traditional banks, online banks, credit unions, and nonbank service providers offer a few of the highest savings rates available. Additionally, they frequently provide useful mobile apps and websites that enable users to pay bills and deposit checks.

How to Open an Account with the Highest Interest Rates

You can open an account online or in person, depending on the kind of financial institution. Your Social Security number, contact details, and at least one form of identification—such as a passport or driver’s license—will be required. (For a joint account, these details and identification are required for each person wishing to access the account.) It’s usually necessary for you to fund the new account immediately. You can accomplish that by making a wire transfer or depositing cash or checks.

How to Proceed If You Are Not Able to Open a High-Interest Savings Account

Sometimes, the application you submit to open an account gets rejected. Most likely, there were problems with your prior bank history.

Financial institutions can use a bad file on ChexSystems, a customer reporting agency, to assess a potential customer’s banking history if they have unpaid bank fees and bounced checks.

For clients with a ChexSystems file, there are options, such as opening different accounts.

Are High-Yield Savings Accounts Safe?

In short, yes. Federal insurance covers high-yield savings accounts at credit unions and banks for up to $250,000 per depositor, and many nonbank providers collaborate with banks to provide insurance. The National Credit Union Administration provides insurance for credit union accounts, while the Federal Deposit Insurance Corporation (FDIC) insures bank accounts. insures bank accounts. This implies that the government guarantees the safety and accessibility of your funds even if the financial institution fails.

FDIC Insured Funds vs. Member FDIC

Savings accounts offered by banks are referred to as “Member FDIC” accounts because the bank is a covered insurance member of the Federal Deposit Insurance Corp. and the account is federally insured. If a financial technology company offers a savings account instead of a bank, it typically works with an FDIC-insured bank to hold the funds in order to safeguard deposits. In those cases, we denote “funds insured by the FDIC”. We write “funds insured by the NCUA” because credit union savings accounts are covered by federal insurance by the National Credit Union Administration.

Should You Have More Than One Savings Account?

Setting up distinct savings goals can be made easier by having several savings accounts. You could, for instance, open two savings accounts: one for emergencies and the other for future travel expenses.

Is There a Tax That I Must Pay on My Savings Account?

The Internal Revenue Service states that interest earned in a savings account is typically taxable. If you earned over $10 in interest the prior year, your bank can give you a form 1099-INT reporting near the start of the calendar year, so you have time to file your taxes. Make sure to verify the accuracy of this form by comparing it to your personal bank account records once you receive it. The IRS claims that any interest you earn is taxable, even if you do not receive this tax form. Make sure you find out what reporting obligations you have by consulting a tax advisor.

Understanding High-Yield Savings Account Terminology

A few key terms related to savings are listed below.

Savings account: An interest-bearing deposit account from a bank.

Money market account: A particular type of savings account where a high minimum deposit is required in exchange for higher interest rates. (Consider $5,000 or more.)

Interest: Over time, money is deposited into an account by a financial institution.

Compound interest: The interest you receive on both your initial investment and the interest you continue to accrue is known as compound interest. When compound interest is paid on an account, the return is applied to the initial principal after each compounding period, which is usually done on a daily or monthly basis. Greater balances earn interest at each calculation and addition of interest to the account.

Annual percentage yield: The total interest an account earns annually is known as its annual percentage yield or APY. The calculation is dependent upon the account’s interest rate as well as the amount of interest payments made during the year. The highest annual percentage yield (APY) savings account grows more quickly than a lower-yielding account.

Do Top Online Savings Accounts Offer Fixed Rates?

No, rates are not fixed and are subject to change. All savings accounts, no matter if they are provided by traditional banks or not, online or off, and regardless of how much they pay in interest, are subject to this. These are some of the accounts that have the highest rates regularly. However, a certificate of deposit might be a good option if you’re searching for a fixed-rate product and are prepared to hold the funds in the account for a duration without making any withdrawals, as agreed upon.

How Often Do High-Yield Savings Rates Change?

Savings rates are usually not adjusted by institutions on an hourly, daily, or even weekly basis. Certain rates frequently stay the same for several months.

However, rates are erratic and could alter at any time. Furthermore, a lot of providers will modify their prices in response to what their rivals do. Because of this, you frequently see teams of financial institutions change their annual percentage yields (APYs) at roughly the same time, particularly if the Federal Reserve has recently raised or lowered interest rates.

Which Bank Offers 7% Interest on Savings Accounts?

While many of the banks we surveyed have rates above 5%, none of them have rates as high as 7%. We consider several aspects when evaluating banks for this list, such as monthly fees and minimum balance requirements. Numerous options that yield high rates and provide a reliable banking experience are available on our entire editorial list.

FinanceProsper’s Tip: You might be better off going with a higher-yielding account in the first place if a savings account has a high introductory rate or a high short-term APY from a referral code but gives a lower yield over the long run. You can find out how much you can make over several years by using an interest calculator.

Historical savings rates

The savings rate movement observed by certain financial institutions over the past few months is displayed in the table below. Two national banks and a few internet companies were our selections for comparison.

Note: Unless specified otherwise, rates are accessed at the start of each month. Rates are flexible and can alter at any time.

Conclusion

FinanceProsper’s Best High-Yield Savings Accounts of October 2024: Up to 5.50%

• UFB Portfolio Savings: Best for High-Yield Online Savings Accounts, 5.15% APY
• CIT Bank Platinum Savings: Best for High-Yield Online Savings Accounts, 5.00% APY
• SoFi Checking and Savings: Best for High-Yield Online Savings Accounts, 4.60% APY
• American Express® High Yield Savings Account: Best for High-Yield Online Savings Accounts, 4.25% APY
• Capital One 360 Performance Savings™: Best for High-Yield Online Savings Accounts, 4.25% APY