If you wish to grow your savings fast, then the option for a high yield savings account would be the best avenue for you to consider. Such savings accounts come with the highest interest rates. The best high yield savings accounts have annual percentage yields that are many times higher than the national average rate of 0.41%. Many of the rates in this list are in the top 4%. High-yield savings accounts are ideal places to park your money when you want your savings to grow.
High Yield Savings Account: What is It?
A high yield savings account is a kind of despite account which provides higher APY (Annual Percentage Yield) compared to standard savings accounts. The purpose of such accounts is to maximize savings with minimal risks. In this regard, funds are generally insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, per bank.
A high yield savings account would be an amazing choice if you wish to earn a passive income. In regard to savings for your next vacation, creating an emergency fund, or saving for a down payment, such accounts could be a good option for you to consider.
| Financial Institution | NerdWallet Overall Institution Rating | APY | Minimum Balance To Open the Account |
| Santander Bank, Member FDIC. | 4.0 | 4.75% | $500 |
| Zynlo Bank, funds insured by FDIC. | 4.6 | 4.35% | $10 |
| EverBank (formerly TIAA Bank), Member FDIC. | 4.4 | 4.30% | No minimum amount is required. |
| Newtek Bank, Member FDIC. | 4.6 | 4.55% | No minimum amount is required. |
| Forbright Bank, Member FDIC. | 4.4 | 4.25% | No minimum amount is required. |
| My Banking Direct, Member FDIC. | 4.5 | 4.45% | $500 |
| Western Alliance, Member FDIC. | 4.3 | 4.3% | $500 |
| Poppy Bank, Member FDIC. | 4.3 | 4.5% | $1000 |
| TAB Bank, Member FDIC. | 4.3 | 4.3% | $500 |
| Jenius Bank, funds insured by FDIC. | 4.9 | 4.5% | No minimum amount is required. |
| Popular Direct, Member FDIC. | 4.2 | 4.5% | $100 |
| Bread Savings™, funds insured by FDIC. | 4.8 | 4.4% | $100 |
| Bask Bank, Member FDIC. | 4.5 | 4.5% | No minimum amount is required. |
| First Foundation Bank, Member FDIC. | 3.8 | 4.5% | $1000 |
| LendingClub, Member FDIC. | 4.5 | 3.5% | No minimum amount is required. |
| UFB Direct, Member FDIC. | 4.9 | 4.01% | No minimum amount is required. |
| Upgrade funds insured by FDIC. | 4.6 | 4.14% | No minimum amount is required. |
| CIT Bank, Member FDIC. | 4.4 | 4.35% | $100 |
| BMO Alto, Member FDIC. | 4.7 | 4.10% | No minimum amount is required. |
| Quontic Bank, Member FDIC. | 4.4 | 3.85% | No minimum amount is required. |
| Barclays, Member FDIC. | 4.2 | 4.25% | No minimum amount is required. |
| Salem Five Direct, Member FDIC. | 4.5 | 4.25% | $10 |
| Discover® Bank, Member FDIC. | 5.0 | 3.75% | No minimum amount is required |
| SoFi, Member FDIC. | 4.9 | 3.80% | No minimum amount is required |
| Sallie Mae Bank, Member FDIC. | 4.0 | 4.00% | No minimum amount is required |
| Live Oak Bank, Member FDIC. | 4.0 | 3.7% | No minimum amount is required. |
| Synchrony Bank, Member FDIC. | 4.9 | 4.10% | No minimum amount is required. |
Member FDIC. | 4.5 | 3.70% | $0.01 |
Member FDIC. | 4.3 | 3.80% | No minimum amount is required. |
| American Express, Member FDIC. | 4.6 | 3.80% | No minimum amount is required. |
| Capital One, Member FDIC. | 4.6 | 3.80% | No minimum amount is required. |
When are the savings rates of the Savings Account going to fall?
Some savings rates have dropped from their latest highs, and you can expect to see more dips in the coming months. The Fed kept the federal funds rate steady for more than a year in an effort to control inflation. During the second half of 2024, after a period of decreasing inflation rates, the Fed announced several rate cuts. Despite expecting dips, it’s tough to say how fast or far savings rates will drop.
What is the difference between a Traditional Savings Account and a High-Yield Savings Account?
A high-yield savings account earns a much higher rate than a regular savings account. While some traditional savings accounts, particularly those at large national banks, earn rates as low as 0.01% APY, high-yield accounts earn many times more. Currently, rates at the best high-yield accounts earn around 4% APY.
Is it Worth Putting Money into a High-Yield Savings Account?
Yes. With a high-yield savings account, also known as a high-interest savings account, your balance can grow faster over time than it would in an average savings account. This is without additional effort on your part. Your money is working harder for you in a higher-rate account.
Alternatives to Savings Accounts
High Yield Savings Account vs Checking Account
The difference between these two types of accounts is that a high-yield savings account is utilized to build your account balance, but the purpose of using a checking account is everyday spending. Few checking accounts might earn you interest or provide cash-back rewards, but a high-yield savings account pays more interest, though it may also limit specific types of withdrawals to a maximum of six times every month.
Money Market Account vs High Yield Savings Account
Money market accounts and High-yield savings accounts are both types of savings accounts. The MMAs basically provide checks and debit cards, with the ability to make a few purchases every month. Both these accounts let you link to other deposit accounts, such as checking accounts, to make electronic deposits and withdrawals. But with the added benefit of checks or debit cards, money market accounts provide easier access to your funds. This could be helpful if you require quick access to your cash. Few MMAs have high minimum opening deposits and charge monthly fees.
Certificate of Deposit (CD) and High Yield Savings Account
Certificates of deposit and high-yield savings accounts are both federally insured deposit accounts. The CDs are known to have higher rates in return for locking in your money for a specific time period. Due to this reason, these are best for funds that you can put away for the complete CD term. The period can range from a few months to a few years. If you have a short-term savings goal for an item you’d like to purchase in a few years, you should consider opening a Certificate of Deposit. On the other hand, the funds in high-yield savings accounts can generally be withdrawn at any time. However, there may be a limit of six per month for specific types of withdrawals. In comparison to a CD, the high-yield savings account is known to be a better option for an emergency fund.
How Should You Select the best high-interest savings accounts?
It is important for you to search for accounts that come with low service charges and high interest rates. This is how you would be able to ensure that you won’t have to pay a fee every month. Some institutions might not charge you any kind of monthly fees, while others might charge you. You have the option of waiving them if you meet a minimum balance.
It would be advisable for you to look beyond well-known and larger banks. Many smaller institutions — including apps and online banks— feature good rates and low deposit requirements.
How much will $10,000 become in a high yield savings account?
It would be ideal for you to put your money in an account that earns a strong rate. This is how your balance will grow faster without any extra effort from your end. With a 4% APY, a savings balance of $10,000 would earn a bit more than $400 after a year. This might not appear much, but the earnings are much better than an account with a 0.40% APY, which would earn about $40 dollars.
The Benefits of High Yield Savings Account
There are several benefits of opting for a savings account. Some of the benefits are described below.
Safety
The savings accounts are insured by the FDIC, offering you peace of mind. You do not need to worry about losing your money.
High Interest Rates
Such accounts provide you with 10-25 times the APY of traditional savings accounts. This is an essential benefit to consider.
Flexibility
Easier access to your funds makes this savings account quite flexible as compared to other types of accounts out there.
Conclusion
The high yield savings account is one of the best ways to grow your money fast while ensuring safety and stability. There are different types of savings accounts for you to consider. Compare different options to choose the best savings account according to your preference.
Once you choose a certain savings account, you can put your money for a specific period. It could be for a few months to a few years. So what are you waiting for? Start putting your money today.
FAQs
How to Find the Best High Yield Savings Account?
Ans: You need to do prior research and compare different aspects like high yield savings account rates to find the best option. Using a savings account calculator also becomes useful for you.
Why Should You Go for the Best Savings Account 2024?
Ans: A savings account comes with higher return and growth than other types of accounts. If you wish to grow your money fast, then high yield savings account rates would be useful for you.
What are the Perks and Benefits of SoFi High Yield Savings Account?
Ans: Some of the benefits are no account fees, competitive interest rates and some other perks.
What Is a High Yield Savings Account?
Ans: This type of account ensures you a high return that makes your money grow faster.
How Does a Savings Account Work?
Ans: This type of savings account earns interest rates on deposited funds while compounding fast over time.
Will Everbank be a Good Option for You to Consider?
Ans: Yes, if you wish to have high yield interest rates, then Everbank is a good option for you to consider.
