A few years ago, my local bank offered a basic savings account with a 0.01% interest rate.
Times have changed. There are now several banks offering high-yield savings accounts with rates in the 4.5-5.5% range.
An online high-yield savings account can earn you a better return on your money, and help you avoid most fees.
If you still need a brick-and-mortar bank, consider keeping your local account and using the online savings account to stash your emergency fund, long-term savings, or high-interest CDs. Many smaller online institutions feature competitive rates and low deposit requirements.
Top Best High-Yield Online Savings Accounts Right Now
The following banks meet the criteria listed above, each offering something different from its competitors.
The FDIC (or NCUA for credit unions) covers these banks and is a great option if you search for a new online bank.
Bank rates change often, but we do our best to maintain an accurate listing of current high-yield savings account rates.
The Quick List
- CIT Bank – 5.05% APY
- CloudBank 24/7 – 5.20% APY
- Continental Bank – 4.41% APY
- First Mid Bank & Trust – 4.90% APY
- GreenState Credit Union – 5.16% APY
- Liberty Savings Bank – 4.60% APY
- OceanFirst Bank – 5.25% APY
- Valley Bank – 5.00% APY
- Western Alliance Bank – 5.25% APY
CIT Bank – Editor’s Pick – 5.05% APY
While CIT Bank is not the most well-known bank on our list, it’s one of the best options. They were established in 1908 and have over $50 billion in assets.
As a company, they provide just about every possible financial service you can think of.
CIT Bank has several different savings account options that you can choose from, but the most popular is the Platinum Savings account, which features an interest rate that is among the highest in the nation at 5.05% APY (as of the writing of this article). This account does require a $5,000 minimum balance to earn the highest rate (the APY is significantly reduced for amounts less than $5,000), which could be a detractor if you are just starting your savings.
The good news is that CIT Bank does offer a high-yield savings account without a minimum balance requirement to earn the highest rate, but the maximum APY is slightly lower than the Platinum Savings account. Still, this Savings Connect account could be a more attractive option for those who are looking to start saving, and the 4.65% APY is still a very respectable yield.
CIT Bank is an excellent option if you’re looking for high rates but don’t want to pay any monthly fees.
CIT Bank requires a $100 deposit to open, but it doesn’t have any fees. Learn more in our CIT Bank review.
CloudBank 24/7 – High-Yield Savings – 5.20% APY
CloudBank 24/7 is a modern digital bank that’s all about convenience and security. They’ve got a high-yield savings account that’s really turning heads with a whopping 5.20% APY. That’s 12.4 times higher than the national average, folks!
What’s great about this account is that it’s all online, so you can access your funds anytime, anywhere. No need to drive to the bank or wait in line. Plus, with just a $1 minimum deposit and no fees, it’s accessible to just about anyone.
And don’t you worry about safety – your deposits are FDIC insured through Third Coast Bank SSB. That means your money’s protected up to the legal limit.
So, if you’re looking for a smart way to save and grow your money without all the hassle, CloudBank 24/7 might just be the ticket. It’s like having a bank right in your pocket, always ready to help you reach those financial goals.
Continental Bank – High-Yield Savings Account – 4.41% APY
Continental Bank, a privately-owned commercial bank founded in 2003 and headquartered in Salt Lake City, Utah, is offering a 4.41% APY high-yield savings account. This rate is a whopping 10.5 times higher than the national average, making it an attractive option for those looking to grow their savings.
But it’s not just about the numbers. Continental Bank is FDIC insured, ensuring the safety of your deposits, and they charge no fees on this savings account. That’s right, no hidden charges to worry about!
What sets Continental Bank apart is their community focus. They’re committed to serving the banking needs of small and medium-sized businesses nationwide, and they’ve got seventeen years of experience to back it up. They believe in listening to their customers, identifying their needs, and thinking creatively to find solutions that work for everyone.
Their mission? To create value by fostering a culture where the bank’s employees, customers, and communities thrive. This deposit product is offered through Raisin by Continental Bank, and it’s more than just a savings account; it’s a commitment to helping you save and a reflection of Western values.
So if you’re looking for a savings account that offers a great return, security, no fees, and a bank that cares about its community, Continental Bank’s high-yield savings account might just be the perfect fit for you.
First Mid Bank & Trust – High-Yield Savings Account – 4.90% APY
First Mid Bank & Trust, a full-service financial institution with over 150 years of experience, offers an FDIC-insured, no-penalty savings account with an impressive 4.80% APY. This rate is a whopping 11.4 times higher than the national average, making it a top offer for those looking to grow their savings.
With a minimal deposit requirement of just $1 and no fees, this account is accessible to a wide range of savers. Plus, the 24/7 online access to funds ensures that customers have the flexibility and convenience they need to manage their money.
The bank’s long-standing reputation for integrity, honesty, and professional, reliable service reflects their commitment to understanding their customers’ needs and delivering tailored financial solutions. It’s clear that First Mid Bank & Trust isn’t just about numbers; they’re about building strong relationships and maintaining the trust they’ve earned over a century and a half.
Whether you’re just starting your savings journey or looking to maximize your earnings, First Mid Bank & Trust’s high-yield savings account could be a solid choice for your financial future. It’s not just a bank account; it’s a partnership with a bank that values its customers and communities. Now, that’s something worth considering!
GreenState Credit Union – High-Yield Savings Account – 5.16% APY
GreenState Credit Union’s High-Yield Savings Account is designed for folks who want to earn a substantial return on their savings without taking on too much risk. With an impressive 5.16% APY, it’s one of the highest rates you’ll find out there. And yes, the account is insured by the National Credit Union Administration (NCUA), providing peace of mind that your funds are safe and secure.
The account is available to both existing members and new customers who meet the eligibility criteria. You’ll need to be a U.S. resident and provide some basic information to get started.
The account requires a minimum opening deposit of just $1, and you’ll need to maintain that balance to earn the stated APY. If the balance falls below this threshold, the APY drops to a lower rate.
GreenState offers online and mobile banking, making it easy to manage your account from anywhere. You can view your balance, transfer funds, and more, all from the convenience of your device.
Liberty Savings Bank – High Yield Savings Account – 4.60% APY
Liberty Savings Bank is like that reliable neighbor you’ve known for years. Founded way back in 1889, this family-owned community bank has been serving folks across America, with a special presence in Ohio and the Sarasota-Manatee County area of Florida.
Now, let’s talk about their high-yield savings account. It’s offering a hearty 4.60% APY, which is 11 times higher than the national average.
What’s more, there are no hidden fees to worry about, and your money’s safe thanks to FDIC insurance.
But Liberty’s not just about numbers; they’re about people too. They’ve got a reputation for outstanding service, with hundreds of five-star reviews on Google My Business. Whether it’s savings accounts or CDs, folks just love what Liberty’s doing.
And speaking of doing good, Liberty’s got a big heart for the community. They’re out there supporting Habitat for Humanity, helping to build homes for those in need.
So, if you’re looking for a bank that feels like home, with a high-yield savings account that’ll make your money work as hard as you do, Liberty Savings Bank might just be the place for you.
OceanFirst Bank – High Yield Savings Account – 5.25% APY
OceanFirst Bank, a proud New Jersey institution since 1902, offers a High Yield Savings Account that’s all about helping folks at every stage of life meet their financial needs. With a whopping 5.25% APY, this account is 12.5 times higher than the national average, making it a great option for anyone looking to grow their savings.
What’s really nice about this account is that it’s FDIC insured, so your money’s safe, and there are no hidden fees to worry about. Plus, with just a $1 minimum deposit, it’s accessible to just about anyone. You’ll also have 24/7 online access to your funds, so managing your money is a breeze.
But OceanFirst Bank isn’t just about numbers and percentages. They have a strong commitment to their community, and they’ve been helping neighbors and businesses for over 120 years. They even established the OceanFirst Foundation in 1996 to assist local nonprofit organizations in areas like health and wellness, housing, quality of life, and youth development and education.
So, if you’re looking for a savings account that offers a high return and aligns with strong community values, OceanFirst Bank’s High Yield Savings Account might just be the perfect fit for you. It’s more than just a bank account; it’s a part of a tradition that cares about people and their dreams.
Valley Bank – High-Yield Savings Account – 5.00% APY
The Valley Bank high-yield savings account offers an impressive 5.00% APY, which is more than 12 times the national average of 0.42%.
You can start with as little as $1, and there’s no need to worry about any hidden fees or maintenance costs. Valley Bank makes sure everything’s transparent and easy to understand.
What I really like about this account is how user-friendly it is. You can open an account online in less than 5 minutes, transfer money easily, and watch your savings grow right from the comfort of your home. Plus, interest is compounded daily and deposited monthly, so you’ll see your balance grow steadily.
Valley Bank has been around since 1927, and they’ve built a reputation for strength and stability. They’re committed to helping folks like you and me achieve financial success, and this High Yield Savings Account is a great example of that commitment.
Western Alliance Bank – High Yield Savings – 5.25% APY
Western Alliance Bank, hailing from the sunny Phoenix, AZ, is more than just a commercial bank with an impressive $65 billion in assets. It’s a place where your money can grow, thanks to their high-yield savings account that’s currently boasting a 5.25% APY. And it’s all FDIC insured, so you can rest easy.
With Western Alliance, you won’t find any of those pesky monthly maintenance fees nibbling at your savings. Instead, you’ll see interest compounded daily and credited to your account every month. And if you’re thinking about dipping your toes into the high-yield savings world, you can start with just a single dollar.
Powered by the Raisin platform, Western Alliance Bank offers a high interest rate, zero fees, and that friendly $1 minimum. If you’re in need of a high-yield savings account, this one’s a catch worth considering.
How to Find the Best Savings Accounts and Interest Rates
All banks and credit unions are not created equally. There are variations in interest rates, reliability, functionality, and more.
When looking for a new bank, consider these features:
- FDIC insurance. FDIC Insurance is one of the most essential features. If the bank is not FDIC insured to provide you with up to $250,000 in insurance per account in each account ownership category, keep looking. Also, credit unions ensure the account is insured by the National Credit Union Administration (NCUA).
- Interest rates. The higher, the better, provided the bank meets your other needs.
- Account minimums. Some banks require you to deposit a large amount of money to receive the best rates or avoid fees. Some even require that you have a minimum balance to earn interest of any kind.
- Fees. Keep these to a minimum. They eat into your earnings. Be aware that some online savings accounts charge fees if your balance falls below their minimum balance threshold at any point during your billing cycle.
- Functionality. Some banks offer great features such as unlimited sub-accounts, high-yield checking accounts, Certificates of Deposit, the ability to link to a brokerage account, and more.
- The digital experience. Some banks are good with intuitive and thorough online websites and apps. Others, not so much. Factor in the frustration factor when looking for a bank.
- ATM access. Some banks may provide an ATM or debit card for ATM access. Depending on the bank, you may be able to electronically transfer the money to an account you hold at another bank.
- Access to funds. How quickly and easily can you access your money if you need it? Is there a brick-and-mortar version of the bank, or is it only online?
- Do they offer an online checking account? You may wish to match your online savings account with a checking account for ease of access and higher interest rates. Unfortunately, not all online banks offer checking accounts. See our list of best online checking accounts for more information.
- Is there a sign-up bonus? Some banks offer sing up bonuses when you open a new account. This can be a quick and easy way to earn several hundred dollars. See our list of current bank sign-up bonuses for more information.
- Customer service. Banking online is a 24/7 proposition, and being able to reach a customer service rep whenever you need to is a huge incentive. This is critical if you’re using a bank with no branch access. Also, look for actual responsiveness vs. a simple acknowledgment when you reach out.
Check out our post about the benefits of Chase Checking accounts. This is one great online banking option with perks of free money for signing up!
Also, remember, putting money into a savings account can not only help you but can help your children and your family as a whole!
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Tom says
Thanks for putting this list together Ryan. Although I appreciate your views on national bank options, I am glad I went local. As a recent graduate with less than 10k in savings to start, my bank’s low monthly charge and $25 minimum was a lifesaver. The interest rates are fair, but the accessibility (brick & mortar locations and online/app) make it worthwhile.
LARRY says
What is Bankrate.com, their site is very confusing. I see you reference them from time to time, do you recommend the site for credibility?
Ryan says
Larry, Bankrate.com is an industry leader for objective bank rankings (see their Safe and Sound rankings) which are based on public information, regulatory filings, etc. They also offer a wide array of tools, including calculators and comparison tools. Their site is legitimate and has been referenced by all of the major news outlets, such as CNN, Yahoo. MSN, etc. (they also advertise heavily on some of these sites).
william stevenson says
I wish to tell all the members of the younger generation to be aware of all the investment opportunities that are available and for God sake save every dime you can. Retirement is right around the corner, don’t be caught short.
Steve says
I wonder why none of these lists ever include Stonebridge Bank. I’ve used them for years now and they have always had high rates with low or no fees, free interest checking, and Premier Money Market with “Minimum average daily balance of $1,000 to avoid $10 monthly service charge” (I’m pretty sure I’ve dropped below that amount in the past & have never been charged, but I think it used to be if you were below said amount it was 0% APY with no fee, I can’t remember). The CD’s are usually competitive with other banks. My understanding is they are mostly internet based with only 4 B&M locations. So the thing I really wonder about is, are they some hidden gem I should enjoy sharing & keep or is there something I’m missing and I should run far away…anyone???
Ryan says
Steve,
I haven’t heard of them before, but that doesn’t mean they aren’t a good bank. I went to BankRate’s Safe and Sound Ratings and looked up StoneBridge Bank.StoneBridge is a relatively small bank compared to some of the banks mentioned in this article. Because the audience of this website is nationwide, I don’t focus on small or regional banks, or banks with membership requirements. That is because there are so many of them and they aren’t always the best option for people who live across the country, particularly when some of the larger banks have a more extensive ATM network, more B&M locations, and excellent online features.
If you are happy with them, then by all means, enjoy your hidden gem!
Jerry says
Has anyone tried the discover high yield savings? They offer 2%…wondering if they are good or bad. I have my savings in ING now but every month they keep lowering my APR.
Martin says
Thanks for the information, as a Canadian moving to the USA the number of banks to choose from were astronomical making a financial institute to choose from to be very difficult. Outside of Credit Unions we only have maybe 10 banks in the whole of the country and for the most part they service nationwide.
For those moving to the USA I would probably recommend HSBC since they are the only international bank on this list which can make it easier moving money in and out of the country.
Financial Samurai says
I would seriously suggest looking into 5 yr CDs and ladder your money. Every year you earn only 1.5% is like losing 2.5% because you’re not in a 5 yr CD.
Sure, inflation may go up, bringing up rates with it. However, simply then lock in that year’s bonus or cash reserves in a higher yield and repeat.
Citibank was offering 4% for a 5-yr, and they are still offering 3.75%.
It adds up… if you have $500,000 in savings and miss out on 2.5% every year, that’s $12,500!
Ryan says
Financial Samurai, I have a 5 year CD ladder for a good portion of my savings, but it is also nice to (and sometimes necessary) to retain flexibility with some funds. Most of these banks offer very attractive CD Rates, so it is very possible to save in CDs and in a savings account. Here is more information about How to Build a CD Ladder.
Also, having $500,000 in a CD ladder is a lot of cash tied up in a relatively low-interest account. There may be better options for handling that much cash, such as investing. I can see having that much cash in a CD Ladder if you are retired and plan on using that money each year for your annual retirement spending. This would eliminate the sequence of returns risk for your retirement portfolio. Otherwise, it seems like having that much cash tied up will miss out on a lot of potential growth.
Craig says
Does your bank offer a money market account at a higher rate? Citibank does this and pretty sure the set up and everything was free. Same rates as the online accounts.
Ryan says
Craig, Yes, they offer 0.10% interest for standard money market accounts, and bump it up to 0.75% if you can maintain a minimum daily balance of $10,000.
All of the online banks mentioned above have a minimum of 0.95%, up to 2.5%. So they are better options for stashing cash, especially if you don’t have $10,000 at the moment.