Are you looking for the best way to earn high interest on your savings? Look no further! With interest rates on the rise, high yield savings accounts (HYSA) are offering higher rates than ever before. These accounts function just like traditional savings accounts but come with much higher interest rates, allowing your balances to grow faster. The best part? Many of these accounts have no opening balance or minimum balance requirements, making them accessible to all types of savers.
Our Top Recommendations for the Best High Yield Savings Accounts
Milli Bank
Milli Bank is a top-yield mobile-only app and a division of the First National Bank of Omaha. It currently offers an impressive 5.50% APY with a minimum balance requirement of just $0.01. This account has no monthly maintenance fees and features a unique savings jars function and real-time spending tracking.
Western Alliance Bank
If you prefer a solid, no-frills option, Western Alliance Bank might be the perfect fit for you. This high yield savings account has no account activity or maintenance fees and offers a competitive interest rate. It requires a minimum balance of $500 to open an account and provides 24/7 online access.
My Banking Direct
My Banking Direct is an excellent choice for those seeking added functionality in a high yield savings account. Along with a competitive interest rate of 5.35% APY* and no monthly maintenance fees, this account offers a savings/checking combo that allows for easy and instant money transfers. You can open an account with a minimum deposit of $500.
Valley Direct High Yield Savings Account
For savers who haven’t had the time to open an online savings account, the Valley Direct High Yield Savings Account is the solution. You can open an account and start saving towards your goals in less than five minutes. With an annual percentage yield of 5.05%* and a minimum balance requirement of just $1, this account offers one of the highest interest rates available. There are no monthly maintenance charges, and you can start saving with as little as $0.01.
Bread Savings
Bread Savings is a great option if you want a high yield savings account that focuses on financial wellness. It offers competitive interest rates and doesn’t require a minimum balance to open an account. Additionally, it provides tools and resources to help you save money and improve your financial well-being.
Bask Interest Savings
If you value outstanding customer service, the Bask Interest Savings Account is for you. With a high interest rate, no monthly account fees, and a minimum balance requirement of just $0.01, this account sets itself apart from the competition. Bask Bank offers excellent customer support during weekdays and Saturdays, ensuring that your banking experience is nothing short of stellar.
CIT Platinum Savings
CIT Bank’s Platinum Savings Account is an excellent choice for those seeking a high yield savings product. With a competitive interest rate of 5.05% APY* on balances of $5,000 or more, this account allows you to start with as little as $100 and earn 0.25% APY. In addition to its attractive rates, CIT Bank frequently offers promotions, providing customers with even more benefits.
Sofi Savings & Checking
For a welcome bonus and high interest rate combo, consider Sofi Savings & Checking. New customers can earn up to $250 when opening a new account and setting up direct deposit. Plus, this account comes with a high interest rate and no account fees.
Quontic High Yield Savings
Quontic stands out by offering various options to increase the earning potential of your cash. Alongside its high yield savings account, Quontic provides certificates of deposit and money market accounts.
Live Oak Personal Savings
Entrepreneurs and small business owners will find Live Oak Personal Savings particularly appealing. This account allows wire transfers and provides QuickBooks integration, making it ideal for business purposes. There are no minimum deposit or balance requirements, but keep in mind that maintaining a balance below $10.01 for 24 consecutive months may result in account closure and a dormant account fee.
Discover Online Savings
Discover Online Savings offers a hassle-free wire transfer experience without any fees. With their user-friendly online banking platform, customers can easily initiate wire transfers from the comfort of their homes. Discover prioritizes customer convenience and provides a highly competitive APY to help individuals maximize their savings.
How to Choose the Best High Yield Savings Account
When comparing high yield savings accounts, it’s crucial to consider fees, interest rates, and account functionality. Here are some key features to look out for:
- Opening balance requirement: How much do you need to deposit to open an account? Many accounts have no minimum balance or only require a small initial deposit.
- Monthly fees: Most banks waive monthly fees if you maintain a minimum balance or offer accounts with no fees.
- Minimum balance requirements: Some high yield savings accounts require a minimum balance to earn the highest interest rates.
- Interest rate: Look for accounts that offer competitive interest rates based on your balance.
- Interest rate tiers: Some banks offer different interest rates based on your balance, rewarding larger customers with higher rates.
- Compounding: Ensure that your interest compounds regularly to maximize earnings.
- Account access: Consider how easy it is to access your funds and whether the account offers an ATM card for cash withdrawals.
By considering these factors, you can find the high yield savings account that best fits your needs.
Frequently Asked Questions (FAQs)
What do you need to open a high yield savings account?
To open a high yield savings account, you will need to provide your name, contact information, Social Security Number, and date of birth. You should also be prepared to make an initial deposit to fund your account and start earning interest.
Are high yield savings rates increasing?
Yes, high yield savings rates have been increasing as the Federal Reserve raises rates to combat inflation. This means that customers with money in high yield savings accounts are earning more interest.
How do banks determine APYs for high yield savings accounts?
Savings account interest rates are represented as annual percentage yield (APY) to factor in compounding interest. APY is based on the account’s interest rate and the frequency at which the bank pays interest.
What is a good APY for a high yield savings account?
A good APY depends on the current market conditions and available alternatives. In the current interest rate environment, aim for an account that earns at least 3.50% APY, with the best accounts offering upwards of 4.5%. Many banks offer rates at this level or higher without charging monthly fees or requiring large balances.
Can you lose money in a high yield savings account?
No, your money in a high yield savings account is insured for up to $250,000 per person by the FDIC. Even if the bank were to go out of business, you would not lose your money as long as your balances are below this limit.
How often do savings rates change?
Banks regularly adjust savings account interest rates based on market conditions, competitor rates, and their need for deposits. If your bank’s rates are not competitive, consider switching to a high yield savings account with better rates.
Remember, the information provided here is for informational purposes only and may be subject to change. Always check with your financial institution for the most up-to-date information.