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A savings account is a good place to keep money safe and liquid, but it’s not a great place to earn money, right? Not necessarily. Some banks and credit unions offer savings accounts with respectable interest rates that rival the rates earned with CDs—but without the restrictions.
We review more than 150 banks and credit unions every weekday to find the best savings rates and deals. These high-interest savings accounts are available to customers nationwide, and your funds are federally insured up to $250,000 per depositor per institution. We start by finding the highest rates, and we favor accounts with low minimum deposit requirements and friendly fee structures.
We also include money market accounts if they function like savings accounts. That means if an account pays a high yield and doesn’t allow you to write checks, it’s in the mix.
We evaluate savings accounts that are widely available throughout the U.S. to identify the best high-interest savings accounts. For this round-up, we primarily look at the annual percentage yield (APY) offered, but to help you compare options, we also consider factors like how quickly interest compounds, how easily you can make deposits, and customer service availability.
APYs are changing rapidly amid widespread uncertainty about the economy and financial markets. The Balance is monitoring rates and updating them accordingly.
Best High-Yield Savings Accounts
|Bank or Credit Union||APY||Requirements|
|Bask Bank||1.25%||$0 to open and earn stated APY|
|CFG Bank||1.02%||$1,000 to open and $25,000 to earn stated APY|
|Salem Five Direct||1.01%||$100 to open and $0 to earn stated APY|
|BrioDirect||1.00%||$25 to open and $0 to earn stated APY|
|Bread Savings||1.00%||$100 to open and $0 to earn stated APY|
|My Banking Direct||1.00%||$1 to open and to earn stated APY|
|First Foundation Bank||1.00%||$1,000 to open and $0 to earn stated APY|
|USAlliance Federal Credit Union||1.00%||$0 to open and $500 to earn stated APY|
|Synchrony Bank||0.85%||$0 to open and earn stated APY|
|Ivy Bank||0.85%||$100 to open and $2,500 to earn stated APY|
We partnered with the following banks to bring you the savings account offers in the table below. Under that, you'll find additional details on our editors' picks for the best high-interest savings accounts and rates as of May 20, 2022. All of the banks and credit unions listed are insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA).
Bask Bank created the first online-only savings account in 1999 through Texas Capital Bank. Today, it offers two savings accounts—its high-yield Interest Savings Account and its Mileage Savings Account. The Interest Savings Account earns an industry-leading 1.25% APY with no minimum deposit or monthly fees. Interest is compounded daily. The Mileage Savings Account presents a unique opportunity to earn airline miles simply by saving; you can earn 1 American Airlines AAdvantage mile for every $1 you save annually. Customer support is available by phone and email.
No monthly maintenance fees
No minimum deposit requirement
No branches for in-person banking
CFG Bank, founded in 1927, pays its best APY in the Online CFG High Yield Money Market Account. The website is not as functional or informative as some of the largest online banks, but if you prioritize high rates over the user experience, CFG might deliver what you need. The account requires $1,000 to open and avoid a monthly fee, but you must maintain a minimum daily balance of at least $25,000. Interest compounds daily and is credited monthly.
Competitive CD rates complement the savings account
Website has limited information and features
Salem Five Direct is the online wing of Salem Five, an FDIC-insured mutual savings bank founded in 1855 in Salem, Massachusetts. It offers CDs, a checking account, and a high-yield savings account. The savings account comes with a minimum deposit of $100 and no ongoing balance requirement. Interest is compounded and credited monthly.
No ongoing balance requirements
Mobile account tools
Earn similar interest at other banks
Brio Direct is the online operation of Sterling National Bank. Its high-yield money market account requires a minimum deposit of $100. There are no monthly fees, and you can fund your account from a linked bank account, checks, or wire transfers. Brio also offers CDs, savings, and checking accounts. Interest compounds daily and is credited each month.
No-frills accounts with high rates
Multiple options for funding your account
No mobile check deposit
Bread Savings offers a high-yield savings account with no monthly fee and no ongoing balance requirement. To open an account, you need at least $100, but you can draw down your balance without worrying about monthly maintenance charges. Bread Savings is part of Comenity Bank, which began in 1986 as a credit card issuer. Bread Savings has savings accounts and CDs, but no payment accounts. Interest in the savings account compounds daily and posts to your account monthly.
As little as $100 to get started
Night and weekend customer service hours
No checking or money market accounts for spending
My Banking Direct is an online product offering from New York Community Bank, an institution founded in 1859. The bank holds $59.5 billion in assets, offers a considerable slate of banking products, and often wins awards for its customer service. To open an account, simply fill out an online application and deposit $1.
No monthly fees
Mobile account tools, including check deposit
Wide range of products offered
No in-person branches.
First Foundation Bank was founded in 1990 and has branches in California, Nevada, and Hawaii. The online savings account pays customers the highest APY on balances up to $5 million, and there are no monthly fees. To open an account, however, you must start with $1,000 in new money. Interest compounds daily and is credited monthly.
First Foundation Bank also offers checking accounts and other products, but those are only available in the three states mentioned (the savings account is available nationwide).
No monthly fees, even if your account balance dwindles
Limited offerings unless you live in select states
USAlliance Federal Credit Union began in 1966 by serving employees of IBM, but it has since expanded eligibility to employees of American Express and PepsiCo as well as to members of many organizations. Additionally, the credit union serves multiple communities throughout the Northeastern U.S. Join the American Consumer Council at no cost for the first year to gain membership to the credit union; you’ll pay $8 annually thereafter.
You’ll also need to open either a checking or savings account and deposit at least $1. Interest is compounded daily and credited monthly.
No monthly fees
Mobile account tools, including check deposit
Ability to earn similar or more interest at other banks
Synchrony Bank is the online banking arm of Synchrony, a Fortune-500 company in operation for over 80 years. Its award-winning high-yield savings account offers the same APY on all balance tiers—that too, with no minimum deposit or minimum balance requirement. The account also comes with a mobile app for on-the-go account management. Interest on the account compounds daily and is credited monthly.
No minimum opening deposit or ongoing balance requirements
Mobile account tools
Accounts with a zero balance after 60 days are subject to closure
Ivy Bank is an online bank backed by Cambridge Savings Bank, which has been in business since 1834 and has $5 billion in assets. They offer online banking and a highly rated mobile app. The opening deposit required is only $100.
Accounts are simple to set up online or via the app
Offers mobile deposit
No branches for in-person banking
Frequently Asked Questions
What Is a High-Interest Savings Account?
A high-interest savings account, also known as a high-yield savings account, helps you grow your money while keeping it accessible. Savings accounts often pay interest on your deposits, but interest rates vary from bank to bank. What makes high-interest accounts unique is a relatively high rate on your balance: Top rates on these accounts are often 20 or more times the national average savings rate, multiplying your earnings.
As you earn interest on your savings, you can leave the money in your account and allow the funds to compound. Put another way, you earn interest on the interest payments you received in previous months. The higher your rate, the faster your money grows.
What Should You Look for in a High-Yield Savings Account?
The interest rate is the feature that most people pay attention to when shopping for a high-yield savings account. Compare banks and pick a competitive rate, but don’t ignore other critical features.
- Low fees are crucial: If you’re paying monthly maintenance fees, you might wipe out any earnings in your account (or even see your account balance fall each month).
- Verify that your money will be safe: Banks should be FDIC-insured, and the safest credit unions provide NCUSIF coverage.
- Select a bank that will be convenient to work with. Evaluate how you’ll use the account, and find a bank that fits your needs. For example, if you want to deposit checks frequently, make sure the bank offers mobile deposit. If you withdraw cash regularly, choose a bank with a convenient ATM network or ATM rebates.
Why Do Savings Account Rates Change?
The interest rate on your savings account changes over time. In some cases, the rate remains the same over extended periods. But when rates in the broad economy change, banks typically move in sync with those changes. If the Fed cuts rates, there’s a good chance that your savings account rates will remain stagnant or fall. When rates rise, banks tend to increase rates, but not necessarily as quickly as you’d like.
Why Are Some Bank Interest Rates Higher Than Others?
How much interest you earn can vary quite a bit, but interest rates tend to be lower at big brick-and-mortar banks and higher at online banks.
Banks raise rates when they want to gather money. If they need to get deposits in the door, a high rate on savings accounts attracts customers. If, on the other hand, they don’t need cash, they can keep rates lower.
Banks have different approaches to earning money. Some take deposits and lend them out, while others take a more varied approach (earning revenue and fees from other services like credit cards and ancillary business).
Organizational structure is also important. Some banks have shareholders demanding that the bank grow (and/or share income with the shareholders), and those demands may make it harder to pay high rates to depositors. However, some banks are able to keep only what they need to pay the bills and share the rest of the revenue (from loans, ATM fees, etc.) with account holders. Small banks and credit unions are most likely to fit the latter model.
Is Savings Account Interest Taxable?
Interest you earn in your savings account is generally taxable as income. Your bank typically reports your earnings on Form 1099-INT, and you should provide that information to your tax preparer or include it with your tax filings.
With individual accounts, joint accounts, and other taxable accounts, you’ll pay tax on the interest you receive as income for the year. But if your account is part of a retirement account like an IRA, you may be able to postpone or avoid taxation on that interest.
CDs enable you to lock in a rate that doesn’t change, but there are pros and cons of using CDs.
Keep an eye out for a 1099-INT in the mail during tax season. You may also be able to download the form through your online banking portal. But in many cases, banks do not provide a 1099-INT unless you earn at least $10 during the year.
Federal Deposit Insurance Corporation (FDIC). "Weekly National Rates and Rate Caps – Weekly Update."