Best High Yield Savings Accounts: June 2019

That money you've got parked in a local bank savings account probably isn't doing you much good.

Online banks offer much higher interest rates - as much as 20x or more than traditional big banks. That can be a difference of hundreds - or even thousands - of dollars over the years.

So why should you use a High-Yield Savings Account? Read on.

Reasons to Use a High-Yield Savings Account

A high-yield savings account is ideal for short-term goals. You can grow your money but still have access when you need it.

Here are some great uses for a high-yield savings account:

• Emergency fund
  
• Money for a house down payment
  
• Saving for a car
  
• Special events like a vacation or wedding
  
• Putting tax money away for self-employed individuals

Top High Yield Savings

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We analyzed dozens of accounts to come up with a list of the top high-yield savings accounts currently on the market. Read on to find the right bank for every kind of saver.

High Interest for Active Savers

Open a CIT Bank 2.40% APY Savings Builder High Yield Savings Account
Click Here to See Terms

CIT Bank's Savings Builder encourages saving by rewarding active savers with a high APY. It offers:

• $100 minimum opening deposit
  
• You must save $100 every month
  
• No monthly service fee.

Customer Favorite

Online Savings Account
2.20% APY on all balance tiers. $0 minimum opening deposit. No fees to open or maintain account. No minimum daily balance requirement.
• Consistently Competitive Rates
• 24/7 Customer Care
• Ally Bank, Member FDIC
Click Here to Get Deal

With a user-friendly interface and live 24/7 customer service, Ally Bank gets very high satisfaction ratings. It's a full-service online bank with a wide ATM network, free checking account, multiple CDs, and investment services.

Ally's online savings account offers:

• Competitive APY
  
• No minimum opening deposit
  
• No monthly service fees

Best Savings With ATM Card

High Yield Savings

2.25% APY. $0 minimum opening deposit. No minimum balance requirement. No fees to open or maintain account.

• Great Rates + Safety = Peace of Mind
• Member FDIC

Click Here to Get Deal

If you want a savings account with more flexibility, Synchrony's High-Yield Savings offers an ATM card. You can withdraw savings quickly (up to 6 per statement cycle) instead of having to wait a few days for the transfer to be completed.

Other benefits include:

• No minimum deposit
  
• No monthly service fee

Best Big Bank

HSBC Direct Savings - 2.30% APY
• Earn 2.30% APY on all balance tiers
• No monthly maintenance fee
• Minimum balance to earn APY is $1
• Member FDIC
Click Here to Get Deal

HSBC Direct is the online division of HSBC, one of the largest global banks. Even though it's with a large traditional bank, this account is online only. You can't go to a branch to conduct business.

The online savings account offers:

• High APY
  
• No service fee
  
• Only $1 to open

Best Savings With Bonus

Online Savings Account - Earn 2.10% APY
Click Here to Get Deal
• No minimum opening deposit
• No monthly fee
• No minimum balance required to waive monthly fee

Discover is a full-service bank with checking, CDs, and credit cards. It's savings account does not have the highest APY on our list.

But it often offers cash bonuses to new customers. This provides a nice little boost to your savings balance. Discover's online savings account has:

• No monthly service fee
  
• No balance requirements

High Rate, but High Minimum Deposit

Plus Savings Account

• 2.36% APY
• $5,000 Minimum Opening Deposit
• $4 monthly service fee; waived with a daily minimum balance of $500
• Daily Compounding Interest
• FDIC Insured

Click Here to Get Deal

Popular Direct's Plus Savings Account offers one of the highest rates. But the minimum opening deposit is a whopping $5,000. You must also maintain a $500 balance in the account or face a monthly fee.

Other Popular High-Yield Savings Accounts

These accounts also offer competitive rates:

American Express Personal Savings
Their rates are competitive with other high-yield savings accounts. There are no monthly fees and no minimum deposit. However, you must fund your account within 60 days of application approval.

Marcus by Goldman Sachs

Marcus Online Savings - Earn 2.25% APY

Click Here to Get Deal

No minimum deposit

Marcus is the online savings account offered by the investment giant Goldman Sachs. It offers a very competitive rate with no minimum deposit and no services fees.

However, there is no checking and no ATM network.

State Farm Money Market
State Farm Bank's money market account gives you free ATM card and checks. This is good for more flexibility, but there are some stipulations.

The minimum opening deposit is $1,000. And you must maintain a $500 daily balance or make 1 direct deposit/month to avoid a service fee.

The high APY is offered as an introductory rate for the first year. It also applies if you open a checking account and meet the balance/deposit requirements.

Investors eAccess Money Market
This is a money market account, but with no ATM access or check writing. However, the interest rate is one of the highest offered on the market.

There is no monthly service fee, opening deposit, or minimum balance requirement.

What to Look For in a High Yield Savings Account

• Required Opening Deposit
  If you are just starting to build your savings, look for an account with no minimum deposit.

• Balance Requirements
  Some accounts have minimum daily balance or monthly deposit requirements. If you don't meet it, you get the advertised APY. However if you can, it could be worth it for a higher APY.

• Monthly Service Fee
  Most of the banks on our list have no monthly service fee. But a couple do require a minimum daily balance in order to avoid the service fee. This isn't necessarily a bad thing - if you can maintain the required balance, you may earn a higher APY.

• APY Rate
  Look for the highest APY rate on the account with requirements you can satisfy. Weigh the requirements against the APY.
  A slight difference in APY could make a big difference in how much you save.

  Imagine two banks with APYs of 2.20% and 2.40%. If you only have $1,000 to save, that's a difference of just cents over a year. But if you have $50,000, that's a difference of $100 every year.
  

  A high yield savings account is a great spot to keep your emergency fund and to save for short-term goals. The hope is never to need to touch an emergency fund, so at the very least it should earn a competitive yield and generate some interest income.
  Cynthia Flannigan, CFP®, MainStreet Financial Planning
  

• ATM Access
  Do you want to withdraw your savings through ATMs? If so, your choices are more limited. Not a lot of savings accounts offer ATM access, but there are a few options. You can also choose a money market account.

• Other Banking Services
  Looking for a checking and savings under one bank? Some online banks only offer savings accounts so you'll need to choose a full-service bank.

Advantages of a High-Yield Savings Account

A high-yield savings account gives you a safe place to grow your money. Some of the benefits are:

• Security
  Your deposits are FDIC secured, which means that you are covered (up to $250,000) if the bank defaults.

• Guaranteed returns
  Unlike investing in stocks or bonds, your savings have reliable returns and no risk. However, the APY can change according to the market - you'll always earn the current advertised rate.
  If you want fixed returns, look into Certificate of Deposits instead. You'll be required to tie up your money for a certain time, but you will get a guaranteed fixed rate for the entire term.
  

• Flexibility
  You can transfer money in and out to access your savings when you need it. Note that federal regulation limits withdrawals/transfers to 6 per statement cycle, without penalty.

High-Yield Savings vs CDs

Unlike high-yield savings accounts, Certificates of Deposits (CDs) require that you tie up your money for a certain term. You cannot withdraw your funds before the term ends (or you'll face a penalty).

To reward you for tying up your funds, you will receive a guaranteed fixed rate that may be higher than a savings account (depending on the term). CDs tend to be better for those with long term savings goals (1-10 years).

See our list of the top CD rates.

Bottom Line

A high-yield savings account is one of the best vehicles for growing your money safely. With so many banks competing for your business, there's no reason to stick with a traditional bank's nearly non-existent rates.