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High Yield Account

When it comes to building an emergency fund or saving up for a large expense, such as a down payment on a home, putting your money in a high-yield savings account can help you reach your goals quicker.

high yield account


The national average APY on savings accounts is just 0.35%, according to the Federal Deposit Insurance Corporation (FDIC). That's over 14 times less than what the highest-yield savings accounts offer. And as the Fed continues to raise interest rates, banks are responding by paying out higher annual percentage yields, or APYs, to their customers.

To determine which high-yield savings accounts are the best overall, CNBC Select analyzed and compared dozens of savings accounts offered by online and brick-and-mortar banks, including large credit unions. We found that although most online banks don't have physical branch locations, they typically offer higher APYs, lower fees and overall better benefits than national brick-and-mortar banks.

When rating our top eight, we considered each account's APY, its ease of use, account accessibility, monthly fees and minimum balance requirements. The savings accounts selected offer an above-average APY to all customers (no matter their balance), are FDIC-insured, have zero monthly maintenance fees and low (or no) minimum balance requirements. (See our methodology for more information on how we choose the best high-yield savings accounts.)

Who's this for? The LendingClub High-Yield Savings account stands out for offering one of the highest returns on your money, charging no monthly maintenance fee and not having a minimum balance requirement. You just need an initial $100 deposit to open the account.

Unlike many savings accounts, LendingClub provides customers with a free ATM card and never charges any ATM fees. This makes it easy to access your savings account and withdraw money whenever you want. You can also use your funds to pay bills, send money to friends and family and make internal and external transfers.

To add money to your savings account at LendingClub, you can deposit cash at select ATMs, deposit checks via the mobile app, do a direct deposit, make an electronic transfer from an external bank or make a wire transfer.

Who's this for? The UFB Preferred Savings account is for anyone who's focused on maximizing their returns. With earning up to 5.02% APY, it offers one of the highest interest rates currently available.

As with the other banks on this list, UFB Direct is an online-only bank, and it is a division of Axos Bank. Although there are no physical branches and you can't add a checking account, customers do get a free ATM card.

Who's this for? Marcus by Goldman Sachs High Yield Online Savings offers no fees whatsoever, no minimum deposits and easy mobile access. It's the most straightforward savings account to use when all you want to do is grow your money with zero conditions attached.

The Marcus account also stands out thanks to its mobile banking app, which is simple to use and allows you to set up recurring deposits, track your savings goals and see how much interest you've earned this year. The bank's U.S.-based contact center is open 24/7 for live customer support over the phone or through online chat.

Account holders can withdraw money from their Marcus savings account online and by phone through ACH or by free wire transfer to a linked account at another bank. You can also request a withdrawal by check mailed to you.

To add money to your account, you can transfer funds, make direct deposit payments, deposit a check or make a wire transfer. Marcus doesn't charge a fee if you link other bank accounts for incoming and outgoing transfers, but keep in mind that your other bank might.

Who's this for? Ally is a good choice for anyone looking to do all their banking in one place. While the Ally Online Savings Account is a good high-yield account on its own, account holders can enjoy even more benefits if they also have an Ally checking account.

In addition to a solid APY, no minimum account balance and no monthly maintenance fees, an Ally checking and savings account also gives you access to over 43,000 free Allpoint ATMs, making it easy to withdraw cash when you need to. If you only have an online savings account, you won't have access to a debit card.

Not all online banks also offer a checking account option. Saving your money with a bank that doesn't offer a checking account means you would have to transfer your money between banks, which could take a couple of days. By law, account holders with Ally can withdraw or transfer money online up to six times per month with no penalty. After, Ally charges $10 per transfer. You can also call the bank to request a mailed check, which doesn't count as one of your six transactions.

You can't deposit cash in your Ally savings account, which is standard for many online banks, but you can deposit checks remotely with eCheck Deposit on the mobile app. Account holders can organize their saving goals by creating up to 10 different "buckets" within the same savings account. For example, you can create a designated fund for a "Future Vacation" and another for "Emergency Savings."

Who's this for? Withdrawing money is quick and easy when you have a Synchrony Bank High Yield Savings account. There is no minimum balance requirement, no monthly fees and a strong APY. But what makes this account stand out is its convenient withdrawal options.

Synchrony Bank offers an optional ATM card to its savings account holders. You can access your money by ATM, wire transfer (up to three free per statement cycle) or through an electronic transfer to or from accounts you have at other banks.

To deposit money into your savings account at Synchrony Bank, you can make an electronic transfer from an external bank account that you've linked, do a direct deposit, make a wire transfer, mail a check or use the bank's mobile app to deposit a check.

Synchrony Bank's customer service line is available seven days a week by phone or online chat, as well as 24/7 through its app so you can manage your account on the go. Additional customer perks include complimentary identity theft assistance, travel discounts and free webinars.

Who's this for? If you want to maximize your interest-earning potential, consider Bask Bank. The Bask Bank Interest Savings Account offers a very respectable 4.45% APY to all savings account holders.

Here's the kicker: If you're a frequent traveler, you can opt for the Bask Bank Mileage Savings Account to earn American Airlines AAdvantage miles back instead. With the mileage savings account, you'll earn 2 miles for every $1 saved annually. You can use these miles for flights on American Airlines or any of its 20+ partner airlines. So, you can effectively fund your next vacation without any spending.

The accounts offer no monthly fees and no minimum deposits. Just note that the bank may close your account if it remains unfunded for 60 days. Bask Bank is a division of Texas Capital Bank, but operates completely online.

Who's this for? The SoFi Checkings and Savings account stands out for offering a valuable welcome bonus after you set up and receive direct deposit payments. You can earn anywhere from $50 to $300, depending on the total of your direct deposits in a 30-day period.

The account also gives you a solid return. The only caveat is that you must opt-in to direct deposit in order to get the maximum interest, which is 3.75% APY. Without direct deposit, it lowers to 1.20% APY.

In addition, the account comes with a debit card that has fee-free ATM access through the Allpoint Network, which has over 55,000 locations across the country. And while paying with a debit card can sometimes lack rewards, you can get up to 15% cash back when you use your card at specific merchants.

Varo stands out because of its uniquely tiered APY program that encourages you to save more. While you can take advantage of a 3.00% APY regardless of your account balance, you can earn up to 5.00% APY if you meet certain monthly requirements: Account holders must make a minimum of five purchases using their Varo Visa Debit Card, have direct deposits totaling $1,000 or more each month and keep a savings account balance no higher than $5,000 (there is no minimum balance) all in the same month.

For those who want extra help saving, the online bank offers two programs that automatically transfer money from your Varo bank account to your savings account: Save Your Pay, which transfers a percentage of your paycheck into your savings, and Save Your Change, which rounds up your checking account transactions to the nearest dollar and transfers the difference to your savings.

While online savings accounts offer some of the highest APYs, it's also more tedious to access your money than banking at a brick-and-mortar institution, since you'll usually have to transfer to a checking account to use your money. This is arguably a good thing if you're trying to grow your emergency savings, as you won't have easy access to withdraw from the account.

While it may seem nerve-wracking to have limited access to your savings, one of the big reasons to put your emergency fund into a high-yield account is to watch it grow. The higher your account balance is, the more money you will earn in compound interest over time.

There's a near-zero risk of capital loss when you open a savings account at an FDIC-insured bank, as your account is insured for up to $250,000. Interest rates may decrease, but your cash will not. Theoretically, your money would lose value if the inflation rate is higher than your APY, but that's no different than a traditional savings account. So, opening a high-yield savings account is safe and worth considering.

By law, consumers can withdraw or transfer cash out of a high-yield savings account up to six times per month without paying any fees. However, some accounts let you make more withdrawals for no additional fee. 041b061a72


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