Best High-Yield Savings Accounts in December 2024

A savings account keeps your money safe and easily accessible. But the problem with traditional savings accounts is they offer very low interest rates compared to the best high-yield savings accounts. This means your money won’t grow as fast as it could if it were somewhere else. 

Switching your savings to a high-yield savings account can be a savvy move. You'll grow your savings faster by getting a better return on the funds you deposit. 

Our Picks for Best High-Yield Savings Accounts

To help you choose the right account for your savings goals, we've rounded up the best high-yield savings accounts on the market.

Erika's Pick: SoFi Checking and Savings Account

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The SoFi Checking and Savings Account has a $300 welcome bonus on top of its already high APY. To earn the full $300 you'll need to set up a direct deposit of at least $5,000 within 30 days of account opening. If your direct deposit is between $1,000 and $4,999, you'll receive a bonus of $50.

You will still earn the 4.00% APY on your savings account even if you don't have direct deposit with SoFi.

SoFi's high-yield savings account comes with a checking account, which isn't something you see with a lot of savings accounts. Plus, there are no monthly fees or minimum balance requirements.

Another interesting feature of SoFi is that within your savings account, you can have what they call “vaults.” These function like categories for setting specific savings goals without having to open another account. For example, you could have a vault to save for a vacation or a new car and see those as separate parts of the whole balance.

If you use a linked checking account you can also take advantage of SoFi's round-up feature. Any debit card purchases can be rounded up to the next highest dollar and the change is automatically moved into your savings account.

CIT Bank Platinum Savings

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If you’re already starting with a good chunk of change, consider opening a CIT Bank Platinum Savings account. This account offers 4.55% APY (12 times the national average) if you have $5,000 or more in your account. You can still open an account with just $100, but you’ll only earn 0.25% APY until your account balance reaches $5,000.

If you’re starting with a smaller deposit and don’t want to wait to earn higher interest, CIT Bank also has a Savings Connect account that offers a noteworthy 4.20% APY with just a $100 minimum deposit.

Because the goal is to keep what you earn, the fact that this account doesn’t charge any monthly service fees is pretty enticing. As is the fact that they have an easy-to-use mobile app that can make managing your account simpler. 

CIT Bank is a division of First Citizens Bank, which has 125 years of banking experience.

Wealthfront Cash Account

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While it’s not referred to as a savings account, the Wealthfront Cash Account works similarly to a high-yield savings account. With a 4.50% APY, your savings can grow at a rate that outshines most traditional banks. While it does technically require a minimum deposit, the minimum is just $1 to open an account.

Wealthfront's user-friendly platform provides a holistic view of your finances, and managing your Cash Account is seamless. You'll get access to real-time updates on your available balance, interest earned, and transaction history. You also have the flexibility of unlimited withdrawals and transfers, so you can access your funds when you need them.

You can request a debit card to access your cash at a network of 19,000 nationwide fee-free ATMs.

Synchrony High Yield Savings

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The Synchrony High Yield Savings offers an impressive 4.30% APY. There are no minimum deposit or minimum balance requirements, making this account accessible to most savers. Synchrony also operates on a no-fee framework, which is a helpful savings boost. 

Synchrony provides easier access to your money than many other savings accounts, with an optional ATM card that you can use for cash withdrawals and basic transactions in the U.S. as well as abroad. Synchrony Bank does not charge ATM fees, and may even refund potential ATM operator charges up to $5 per statement cycle.

Just keep in mind that having quick access to your savings account could be counterproductive to your savings goals — you don't want to be dipping in there unless absolutely necessary!

With a user-friendly online platform and mobile app, Synchrony offers convenient access and management of your account from almost anywhere.

Marcus Online Savings Account

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The Marcus Online Savings Account boasts an impressive 4.10% APY across all balances. If you refer a friend, its Marcus Referred program will add a referral bonus of 1% to your APY for three months.

This is another fee-free option, with no account maintenance fees, service fees, transfer fees, or wire transfer fees. There are also no minimum deposit or minimum balance requirements.

You also gain access to Marcus Insights. This financial tracking tool makes it easier to make progress on saving and other financial goals.

Discover Online Savings Account

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With an APY of 3.90%, the Discover Online Savings Account offers substantial interest earnings — that's five times the national savings average, according to Discover.

One of the most attractive features is that there are no monthly fees or minimum opening deposit requirements. There are also no fees for services like monthly maintenance, official bank checks, excessive withdrawal fees, expedited delivery for official bank checks, deposited item returns, stop payment orders, insufficient funds, and account closure.

Ally Savings Account

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The Ally Savings Account comes with an impressive APY of 4.00% across all balance tiers and is another fee-free account. You can also say goodbye to minimum balance requirements.

What sets the Ally Savings Account apart is its innovative tools that accelerate your savings journey. You can create up to 10 different “buckets” within your account, like “Emergency Fund” or “House Down Payment,” allowing you to allocate funds for specific goals.

You can also use Ally’s Round Ups function to round up eligible checking transactions to the nearest dollar — once you’ve accrued at least $5 in round ups, this will automatically be transferred to your savings. Surprise Savings will transfer what Ally calls “safe-to-save” money from your checking to your HYSA, too.

This account has no monthly maintenance fees, but Ally limits your free withdrawals to six per month. After that, a $10 excessive transaction fee applies.

What Is a High-Yield Savings Account?

A high-yield savings account (HYSA) works the same way a normal savings account does. The difference is that these accounts offer a higher interest rate.

According to the FDIC, typical savings accounts offer an average of 0.46% APY (as of September 2024). Interest rates for HYSAs, on the other hand, can range from 3.5% to over 5%. The increased interest rate offered by HYSAs enables you to earn more money on your saved funds over time. 

Most HYSAs are available through online-only banks, although some more traditional financial institutions also offer them. They typically come with features like no or low fees and no minimum balance requirements. The best part is that you don't take on any risk like you do when investing.

How To Choose a High-Yield Savings Account

When comparing high-yield savings accounts, several key factors should guide your decision. Here are some things to keep in mind:

• Interest rate: A higher APY (annual percentage rate) means your savings will grow more quickly. 
• Fees: Opt for an account with no monthly fees or maintenance charges. It's also a good idea to inquire about any transaction or withdrawal fees.
• Minimum balance requirement: The best HYSAs have no minimum balance requirement, meaning you can start earning interest on your savings no matter the size of your nest egg.
• Security: Confirm that the bank is FDIC-insured, protecting your deposits up to the maximum limit. (All accounts on this list are.) Also, do some research on the bank's reputation. Read customer reviews to get an idea of reliability and customer service quality.
• Perks: Look for perks like a welcome bonus or extra tools like budgeting features.
• Accessibility: Look for user-friendly online and mobile banking features that make it easy to stay on top of your finances. 

Pros and Cons of High-Yield Savings Accounts

While high-yield savings accounts are great savings tools, they're not perfect. Consider the pros and cons of them when choosing the best place to stash your cash.

Pros

• High interest: Often 8-10 times higher than the national average of traditional savings accounts 
• Minimal fees: Usually no or low monthly maintenance fees 
• Low risk: Earn a high return without the risk of losing money
• Low minimum balance: Start saving without a ton of cash 
• Easy to monitor: Usually easily accessible online and via mobile apps

Cons

• Variable APY: Interest rates can fluctuate with market changes
• Withdrawal limitations: Usually a limit on monthly withdrawals — you can generally only withdraw from your account six times a month; after that, you’ll be charged a transaction fee
• Fees may apply: May need to do things to waive fees, such as meeting a minimum balance requirement 
• No physical locations: Your best bet is usually with online-only banks, which means you have to give up the perks that come with banking in person

How To Open a High-Yield Savings Account

Opening a high-yield savings account is a straightforward process. Once you've done your research and chosen a reputable bank or financial institution offering high APYs and favorable terms, here’s how to get started:

1. Visit the bank's website or app and navigate to the account opening section. 
2. You'll need to supply personal information such as your name, address, Social Security number, and employment details. You might need to also upload identification documents.
3. Add funds to the account. Many accounts have low or no minimum deposit requirements so you can start with a small amount. Confirm the details and review any terms and conditions. 
4. Most financial institutions send a confirmation email or mail documents confirming that you’ve opened a new account.
5. Once the account is active, you can access it online or through an app to manage your funds and monitor your savings growth.

FAQs

Why are high-yield savings accounts mostly online?

High-yield savings accounts are primarily offered online because online banks can afford to give higher interest rates on deposits.

Online banks have lower overhead expenses compared to traditional brick-and-mortar banks. By eliminating physical branches, online banks save on rent, staffing, and maintenance costs. This is also why online banks tend to have lower fees.

Are high-yield savings accounts safe?

High-yield savings accounts are generally safe. Most reputable banks offering HYSAs are FDIC-insured, meaning deposits have protection up to $250,000 per depositor, per ownership category. So, even if the bank faces financial difficulties, your deposits are safe.

However, it's essential to choose a trustworthy and established bank to ensure your funds are secure. Always verify the bank's FDIC insurance and review customer feedback and ratings before opening an account.

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