Matthew Goldberg Matthew Goldberg
Written by
Marc Wojno Marc Wojno
Edited by
Greg McBride, CFA Greg McBride, CFA
Reviewed by
Marc Wojno Marc WojnoEdited by
Greg McBride, CFA Greg McBride, CFAReviewed by
Updated April 22, 2024
Editorial note: While our partners compensate us from links on this page, we maintaineditorial integrity, and partners don't influence our product evaluations.Here'show we make moneyand here is ouradvertiser disclosure.
Advertiser Disclosure
The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where and in what order products appear. This table does not include all companies or all available products. Bankrate does not endorse or recommend any companies.
A savings account can be a great place to set aside money that you’re saving and want to earn a competitive APY on, even if you aren’t sure on the time horizon for the money. Bankrate’s top savings rates are much higher than the current national average savings yield of 0.57 percent.
Bankrate provides you with timely news and rate information on the top savings yields from some of the most popular and largest FDIC banks and NCUA credit unions. This way you don’t have to spend time searching many bank and credit union websites. Since 1976, Bankrate has been a trusted source of banking information to help you make well-informed decisions on your finances.
If you are looking for a low-risk way to save money over a long period of time, high yield savings accounts may be a good option for you. Banks that offer online savings accounts tend to have higher rates for a better return on your deposited funds, as long as you can follow any minimum balance and monthly fee rules. Keep in mind that savings rates are subject to change over time.
- UFB Direct — 5.25% APY, no minimum deposit to open
- EverBank (formerly TIAA Bank) — 5.15% APY, no minimum deposit to open
- Popular Direct — 5.15% APY, $100 minimum deposit to open
- Bread Savings — 5.15% APY, $100 minimum deposit to open
- Bask Bank — 5.10% APY, no minimum deposit to open
- CIT Bank — 5.05% APY, $5,000 minimum deposit to open
- Salem Five Direct — 5.01% APY, $10 minimum deposit to open
- CIBC Bank USA — 5.01% APY, $1,000 minimum deposit to open
- Citizens Access — 4.50% APY, $1 minimum deposit to open
- Capital One — 4.25% APY, no minimum deposit to open
Note: Annual percentage yields (APYs) shown were updated between April 19 and April 25. All other information is current as of April 22. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
Page preview:
Table of contents
- Best savings account rates
- Recent news on savings account interest rates
- What is a savings account and how does it work?
- How to choose the best savings account for you
- Pros and cons of a savings account
- Alternatives to savings accounts
- Savings account FAQs
- Research methodology
Show me:
The following accounts can be found at most banks and credit unions. They’re federally insured for up to $250,000 and offer a safe place to put your money while earning interest.
Certificate of Deposit (CD)
CDs are best for individuals looking for a guaranteed rate of return that’s typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.
Checking account
Checking accounts are best for individuals who want to keep their money safe while still having easy, day-to-day access to their funds. ATM and other transactional fees may apply.
Savings / Money Market Accounts (MMA)
Savings and MMAs are good options for individuals looking to save for shorter-term goals. They’re a safe way to separate your savings from everyday cash, but may require larger minimum balances and have transfer limitations.
Current savings trends
Bankrate Partner average
4.80% APY
National average
0.57% APY
The "Bankrate Partner average" is calculated from the average of the top savings account offers from the institutions we track, included on this page as of 4/27/2024. "National average" is determined by Bankrate's comprehensive national survey of savings accounts and CDs.
On This Page
On This Page
- Best savings account rates
- Recent news on savings account interest rates
- How to choose the best savings account for you
- What to know about savings accounts
- Pros and cons of a savings account
- Alternatives to savings accounts
- Savings account FAQs
- Research methodology
- Jump to rates
Best savings account rates for April 2024
Note: Annual percentage yields (APYs) shown were updated between April 19 and April 25. All other information is current as of April 22. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
UFB Direct
Rating: 4.5 stars out of 5
4.5
Overview
UFB Direct is known for its high-yield savings account and money market account. Both the UFB Secure Savings account and UFB Secure Money Market account have very competitive yields. One of the differences is that the UFB Secure Savings account doesn’t have a monthly service fee.
Read Bankrate's Expert UFB Direct Review
5.25% APY
$0 min. deposit to open
EverBank (formerly TIAA Bank)
Rating: 5 stars out of 5
5.0
Overview
The EverBank Performance Savings account earns more than the national average APY. There’s no minimum deposit required to open the account. The account comes with EverBank’s Yield Pledge promise: EverBank adjusts its APY so that it remains within the top 5 percent of accounts.
Read Bankrate's Expert EverBank (formerly TIAA Bank) Review
5.15% APY
$0 min. deposit to open
Popular Direct
Rating: 4.8 stars out of 5
4.8
Overview
Popular Direct is known for having some of the highest savings yields and much higher minimum deposit requirements than most other online banks. A Popular Direct Select Savings account is opened through Popular Bank. You’ll need to deposit at least $100 to open the account, but there’s no monthly maintenance fee. Popular Direct also offers mobile deposit.
Read Bankrate's Expert Popular Direct Review
5.15% APY
$100 min. deposit to open
Bread Savings
Rating: 4.9 stars out of 5
4.9
Overview
Bread Savings is an online bank that offers a high-yield savings account and five terms of CDs. Bread Savings requires at least $100 to open this account, which is a lot lower than the $1,500 required to open one of its CDs. The Bread Savings account doesn’t have a monthly service fee or minimum balance requirements after your opening deposit.
Read Bankrate's Expert Bread Savings Review
5.15% APY
$100 min. deposit to open
Bask Bank
Rating: 4.7 stars out of 5
4.7
Overview
Bask Bank is known for its Bask Interest Savings account. It’s also known for a unique account, the Bask Mileage Savings account, where you can earn American Airlines miles. Bask Bank, a division of Texas Capital Bank, made its debut in early 2020 with its Mileage Savings Account. In February 2022, Bask introduced its Interest Savings Account, which offers a very competitive yield and doesn’t require a minimum opening deposit.
Read Bankrate's Expert Bask Bank Review
5.10% APY
$0 min. deposit to open
CIT Bank
Rating: 4.6 stars out of 5
4.6
Overview
CIT Bank is known for offering multiple savings accounts. CIT Bank’s Platinum Savings account earns the highest yield on balances of $5,000 or more, while the Savings Connect account can be opened with just $100. These accounts don't charge a monthly maintenance fee. CIT Bank also has most of the other bank accounts a person could need, including a checking account, a money market account and CDs.
Read Bankrate's Expert CIT Bank Review
5.05% APY
$5,000 min. deposit to open
Salem Five Direct
Rating: 4.9 stars out of 5
4.9
Overview
Salem Five Direct is known for being the online division of Salem Five, a bank founded in 1855 in Salem, Massachusetts. The division was the first online bank, started in 1995. It’s also known for offering a high-yield savings account, checking account and CDs. Its eOne Savings account only requires a $10 opening deposit, and it doesn’t have a monthly service fee or minimum balance requirements.
Read Bankrate's Expert Salem Five Direct Review
5.01% APY
$10 min. deposit to open
CIBC Bank USA
Rating: 4.9 stars out of 5
4.9
Overview
CIBC Bank USA is currently known for offering a competitive yield on its CIBC Agility Online Savings Account, which charges no monthly service fee. The bank also is known for offering CDs that have a slightly higher yield with a deposit of at least $25,000. But its savings account has a much lower minimum opening deposit amount of $1,000.
Read Bankrate's Expert CIBC Bank USA Review
5.01% APY
$1,000 min. deposit to open
Citizens Access
Rating: 4.9 stars out of 5
4.9
Overview
Citizens Access is known for being the online bank division of Citizens Bank. Citizens Access offers a high-yield online savings account and CDs with terms between six months and five years. The online savings account doesn’t have a maintenance fee, and you only need 1 cent to open an account. Currently, all balances receive the bank’s competitive APY.
Read Bankrate's Expert Citizens Access Review
4.50% APY
$1 min. deposit to open
Capital One
Rating: 4.9 stars out of 5
4.9
Overview
Capital One is known for having competitive yields on its savings accounts and CDs. It’s also known for its credit cards, and it offers a checking account. For saving, the Capital One 360 Performance Savings Account earns a competitive yield. It doesn’t have a monthly service fee, and you won’t need a minimum deposit to open this account. Capital One is one of the top 10 largest banks in the U.S.
Read Bankrate's Expert Capital One Review
4.25% APY
$0 min. deposit to open
Bankrate's expertise
Bankrate’s trusted industry knowledge
Read our full methodology
Our banking editorial team regularly evaluates data from more than a hundred of the top financial institutions across a range of categories (brick-and-mortar banks, online banks, credit unions and more) to help you find the options that work best for you.
48years
of industry experience
3k
deposits rates tracked
120
banks reviewed
Recent news on savings account interest rates
Even though the Federal Reserve didn’t change rates in March, you can currently find savings accounts with high yields that are greater than the rate of inflation.
Looking at savings yields through the lens of inflation, the returns on savings will continue to be among the best in the past two decades – even as yields pull back in 2024.— GREG MCBRIDE, CFA | BANKRATE CHIEF FINANCIAL ANALYST
Generally, the Fed’s rate decisions can impact the savings account yields at competitive FDIC-insured online banks.
It’s easy to find a savings account with a rate that outpaces the current inflation rate of 3.5 percent at online-only banks and credit unions. Currently, top-yielding savings accounts earn APYs above 5 percent.
A key factor that influences savings account yields are the 11 federal funds rate increases the Fed has made since March 2022. Savings account rates at competitive banks tend to fluctuate along with the fed funds rate, while savings account rates from large brick-and-mortar banks often remain at near-zero. The national average savings account rate is currently 0.57 percent, according to Bankrate’s most recent survey on April 26, 2024.
How to choose the best savings account for you
The three most important factors to consider when choosing a savings account are:
What to know about savings accounts
A savings account is a type of deposit account found at both banks and credit unions that generally offers a variable yield and it allows withdrawals generally when you need to make them without incurring a penalty.
What fees are associated with a savings account?
Earning a competitive APY and then having fees eat into your interest earning isn’t a good saving strategy.
Here are savings account fees to watch out for:
- Monthly service fees
- Out-of-network ATM fees
- Early account closure fees
- Overdraft fees
Savings account terms to know
- Compound interest
- Method of calculating interest where interest earned over time is added to the principal. Compounding is usually done on a daily or monthly basis and the more frequently it is done, the faster your savings can grow.
- Interest
- Money that you earn for having your funds deposited with a bank.
- Interest rate
- A number that doesn't take into account the effects of compounding.
- Annual Percentage Yield (APY)
- A rate that takes into account the effects of compounding during the year. It's best to compare yields (APYs) rather than interest rates.
- Minimum balance requirement
- The minimum amount needed in a savings account to avoid a monthly maintenance fee.
- Money market account
- A type of savings account that may offer checks, and/or an ATM or debit card for teller machine withdrawals. Here are the best money market accounts right now.
Learn more:What is a savings account?
Who should get a savings account?
A savings account is useful if you have money that you’re not sure when you’re going to need, but you want it to grow by earning interest. Savings accounts are useful because the top accounts are outpacing inflation.
Since some savings accounts at online-only banks don’t have minimum opening deposit requirements or monthly service fees, these accounts are accessible for most people.
College savers
Saving for college is one of the biggest expenses parents face. Saving for students should be a marathon, not a sprint. An FDIC-insured savings account is a safe place to save for your child’s college education.
Future retirees
A savings account is one of the vehicles that should be used to prepare for retirement and should be a part of your retirement plan.
Disciplined planners
It's crucial to have an emergency savings account. This account should be able to cover at least six months' worth of expenses. You never know what the future will hold, so it’s best to be prepared.
What is needed to open a savings account?
Whether opening an account online or in a bank or credit union, you'll likely be asked for similar information.
Learn more
Pros and cons of a savings account
Savings accounts, like all financial tools, come with benefits and risks. It's wise to weigh the pros and cons to see if one of these accounts is ideal for your financial situation.
Pros
FDIC protection: Savings accounts at an FDIC-insured bank are federally insured for up to $250,000, per depositor, per FDIC-insured bank, per ownership category, according to the FDIC.
Liquidity: You can generally access your savings in your account when needed.
Earnings: The money you keep in a savings account earns interest over time and compounds, offering a return on the principal.
Higher interest: The best savings accounts usually earn more interest than a checking account — and some even have a higher yield than money market accounts.
Low-fee options: There are many savings account options that either have a $1 minimum balance or no minimum. With these options, it’s easy to avoid a maintenance fee.
Cons
Low interest: A CD – or other investments – might earn a higher yield/return.
Accessibility: Unlike checking accounts, savings accounts often have a limit on the number of withdrawals and transfers you can make each monthly statement cycle.
Fees: Some banks charge minimum balance fees. Those maintenance fees can eat into interest earned – and even your principal.
Variable APY: Yields for savings accounts can change based on fluctuations in interest rates made by the Federal Reserve.
Limited purchasing power: Economic factors such as long-term inflation could exceed the APY on a savings account.
Alternatives to savings accounts
A savings account might be the right account for you. But there are other options that you should consider — depending on your savings goals and time horizon for using your money.
Savings account FAQs
Research methodology
Bankrate’s editorial team is made up of five banking experts. These experts have researched numerous banks and at least twice a month review bank websites to make sure readers stay up to date on the latest rates and bank products.
We select banks that have high annual percentage yields (APYs), low minimum balances, banks that have highly-rated apps and banks that are popular and broadly available. We also include some of the largest banks, to help readers compare those to online-only banks.
Learn more
Get Started
Calculate your savings
Estimate how much your money could grow over time with a high-yield savings account.
Compare
Bank ratings and reviews
Read Bankrate's expert reviews before deciding where to deposit your money.
Budget
How much you should save monthly
Learn how the 50/30/20 rule can help you save monthly to reach your financial goals.
