The best high yield savings accounts offer interest rates of .75% to 1.05%, though accounts with 5% interest are available for limited balance amounts.
Most banks are currently offering savings account interest rates of about .01%. Some online banks can offer higher rates because they don’t have to worry about the high costs of running a lot of brick and mortar bank branches. The online banks we list below are FDIC insured, so balances up to $250,000 are safe. The online banks on our list are limited to six withdrawals per month by federal law.
Even “high yield savings accounts” don’t pay sky-high interest rates. They used to until recently. See our article here for the reasons savings account interest has plummeted.
Our top picks for high yield savings accounts include accounts from Synchrony Bank, Barclays Bank, Ally Bank, American Express Bank, Bank5 Connect, Discover Bank and Capital One 360. We also talk about high yield savings accounts from community banks and credit unions that may have higher rates and PayPal’s Prepaid MasterCard, which gives 5% interest on balances limited to $5,000.
1. Synchrony Bank’s High Yield Savings Account 1.05% APY
Synchrony Bank’s high yield savings account offers the highest interest rate we could find, with a 1.05% APY. $10,000 in this bank over ten years earns $985. The account does carry a $5 monthly fee, but keeping a minimum balance of $30 in the account waives the fee.
High yield savings accounts at Synchrony bank are fast and easy to open online, and ATM cards are available. The bank also offers a $5 rebate for non-Synchrony Bank ATM service charges.
2. Barclays Bank’s High Yield Savings Account 1.00% APY
Barclays Bank’s high yield savings account carries a high 1.00% interest rate. The account comes with no monthly maintenance fees and no minimum balance to open. It offers secure, 24/7 access to all funds and online transfers to and from other banks. It also offers direct deposit to make saving easier.
Barclays Bank’s high yield savings account is easy to set up online and also offers a handy online savings tool to calculate savings goals.
2. Ally Bank’s High Yield Savings Account .99% APY
Ally Bank’s high yield savings account has a high interest rate of .99%. The account has no maintenance fee and their website displays their philosophy that, “it’s a savings account, not a car.” There’s no minimum deposit and customers can deposit checks remotely with their mobile phone.
This high yield savings account has easy transfers, no ATM fees, online bill pay and a quick and easy online setup.
3. American Express Bank’s High Yield Savings Account .90% APY
High yield savings accounts from American Express come with a .9% interest rate, no minimum balance and no fees. The accounts also offer 24/7 account access. Customers can set up alerts to keep track of their money and make electronic deposits. The accounts come with easy online setup and an online calculator to estimate future savings.
4. Bank5 Connect’s High Yield Savings Account .90% APY
Bank5 Connect’s .9% high yield savings account comes with free online banking and free mobile banking. The account also has Depositor’s Insurance Fund coverage, so even amounts over the $250,000 FDIC insurance cap are covered against loss. In other words, 100% of all money in a Bank5 Connect savings account is insured in full.
The account does carry a minimum balance of $10 and a minimum to earn interest of $100. There is no monthly fee and it’s easy to start an account online.
5. Discover Bank’s High Yield Savings Account .90 APY
Discover Bank’s high yield savings account has a .9% interest rate and comes with free mobile and online banking. There are no monthly fees or minimum balance, but the account does require a $500 opening deposit. There’s a handy online interest calculator and a goal calculator for planning future savings.
About the only drawback of this high yield savings account is the $500 opening deposit, but since the aim of the game is to earn interest on money anyway, that shouldn’t deter too many customers.
6. Capital One 360’s High Yield Savings Account .75% APY
Capital One 360’s .75% interest rate on their high yield savings account comes with no fees, no minimum balance, no minimum opening deposit and no minimum to earn interest. The account can be linked to Capital One’s useful My Savings Goals and Automatic Savings Plan tools to make saving easier.
This high yield savings account gets a high 4.3 out of 5 stars rating from Capital One’s customers.
Some High Yield Savings Accounts With Limits
It’s possible to find high yield savings accounts with higher interest rates than those listed above. However, these higher rates usually come with some hidden catch or limitation that siphons off some of the interest-earning joy. We’ve listed two accounts below that have higher interest rates for consumers who meet the accounts’ requirements and limits.
1. Ultima Bank 2.00% APY
Ultima Bank of Minnesota offers a high yield savings account for young adults who are 18 years or younger. The account is called the SMART Savings Account. The acronym stands for “School Money At Right Time.” There’s no minimum balance and no monthly fee.
This high yield savings account has interest rates that vary between 2% and 5%, always set 2.5% below the current U.S. Prime Rate.
While the SMART account advertises it’s for “young adults,” the fine print reads that it’s actually for anyone under 18, so technically anyone under 18 can open an account. Their website says those under 18 must come into an Ultima Bank branch in Minnesota in person to open an account, but it’s unclear whether a parent or guardian can open an account in a child’s name.
2. Dollar Bank Federal Savings Bank 1.60% APY
Dollar Bank Federal Savings in Pittsburgh offers a 1.6% high yield savings account with no minimum balance or monthly service charge. The account only offers the 1.6% interest rate on balances under $20,000.
Credit Unions With High Yield Savings Accounts
With a little digging, consumers can find high yield savings accounts at local credit unions that may have even higher rates than those listed above. While some credit unions may pay higher interest on savings account balances, their membership requirements are often restrictive. Top rates are often limited to a reduced balance.
A national company called Kasasa offers high yield accounts through a variety of community banks and credit unions. In Louisiana, the Pelican State Credit Union offers a Kasasa high yield savings account that pays up to 4% interest. However, customers have to make at least 15 debit card transactions per month to qualify for the 4% rate, and they have to live in Rapides Parish, Louisiana. Digging around in your area may turn up a credit union or community bank with a similar deal.
Prepaid Debit Cards as High Yield Savings Accounts
Some prepaid debit cards offer high interest rates on savings for limited balance amounts. A Paypal Prepaid MasterCard gives a 5.00% APY on balance amounts below $5,000. That’s a handy way for someone with $5,000 to save to earn $250 a year on it, or $2,500 in ten years.
While there’s a limited balance on this high yield savings account, someone with $10,000 or even $50,000 would boost their interest earnings a lot by putting $5,000 of their holdings on a PayPal Prepaid MasterCard.