Currently, the average interest rate for a savings account is just 0.13%. While it’s important to have money in a savings account to cover unexpected expenses and emergencies, it’s also wise to choose an account that makes the most of your money by paying a higher-than-average interest rate. 

If your savings account isn’t earning interest, it loses even more value over time due to inflation. Although interest rates across the board are low right now, you can easily do better than the national average with these high-yield saving account options. 

Best High Yield Savings Accounts

1. Capital One 360 Performance Savings

The Capital One 360 Performance Savings account has all of the necessary attributes of a low-maintenance high-interest savings account with the added benefit of useful online savings tracking tools to help you stay on track with your financial goals.

Account Highlights:

• Digital savings tools help you manage your money
• 24/7 mobile banking so you can track your savings from anywhere
• Mobile check deposit

2. American Express Personal Savings

American Express Personal Savings account offers everything you need in a high-yield account with the advantage of one of the highest interest rates available. This account offers the highest interest rate on this list with the fewest number of requirements and restrictions.

Account highlights:

• Link up to three of your current bank accounts
• Funds transfers available 24/7
• 100% online bank; no retail locations
• Express transfers from savings to your linked checking account may be available the same day

3. Marcus by Goldman Sachs Online Savings Account

Marcus by Goldman Sachs Online Savings Account offers a great interest rate, and you can open an account with a $0 deposit. Even if you don’t have a lot of money, this high-yield savings account is an accessible option.

Account Highlights:

• Same-day transfers between different banks of up to $100,000
• US-based customer service available seven days a week
• No account fees

4. Discover Bank Savings

While the interest rate is slightly lower than a (very) few competitors, Discover Bank Savings offers important advantages like 24/7 customer service. Fees will never negatively affect your earnings, and there’s no minimum amount required to open or maintain a savings account.

Account Highlights:

• No fees on anything, including a returned deposit or official bank check
• Interest compounded daily
• US-based customer service available 24/7

5. . HSBC Direct Savings

While the HSBC Direct Savings account offers important features like live chat assistance and a huge worldwide network of banks, their interest rate is a bit low among competitors.

Account Highlights:

• Mobile check deposit
• Instant online transfer between HSBC accounts
• Live Chat assistance
• HSBC network extends to 66 countries and territories

6. Barclays Bank Online Savings account

The Barclays Bank Online Savings account is easy to get and easy to maintain with $0 requirements. Their interest rate is competitive, and Barclays Bank offers a suite of tools to help you clarify and reach your savings goals.

Account Highlights:

• Direct deposit to savings available
• Online transfers to and from any bank
• No fees

7. FNBO Direct Online Savings Account

FNBO Direct Online Savings Account offers a good interest rate without any opening deposit or ongoing balance requirements. Popmoney is a nice integrated bonus that works great for sending money to individuals.

Account Highlights:

• Send money to anyone from your FNBO Direct account with Popmoney
• No monthly fees or minimum balance requirement
• Works with digital payment systems, including Apple Pay and Samsung Pay

8. PurePoint® Financial Online Savings

The PurePoint® Financial Online Savings account offers a great interest rate among high-yield savings account but the $10,000 minimum deposit to open an account puts it out of reach for many people. Customer service is only available during normal business hours, Monday through Friday.

Account Highlights:

• No monthly account fees
• Interest compounded daily and deposited every month
• Mobile check deposit

9. Nationwide MySavings Account

While the Nationwide MySavings Account has a high interest rate, you have to jump through a few hoops to get it. If you want to open a MyChecking Account, you’ll be eligible for 1.05% APY on your savings account after you set up $1,000 in direct deposits to your MyChecking Account.

Account Highlights:

• Must have a MyChecking Account with a $1,000 direct deposit to be eligible for 1.05% APR on the Nationwide MySavings Account. 
• Without a MyChecking Account, your MySavings Account earns 0.90% APY
• Interest compounded daily
• No fees

10. PenFed Credit Union Premium Online Savings

PenFed Credit Union offers a competitive interest rate. They require a $5 minimum in the account to maintain your credit union membership. Among credit unions, their interest rate is by far one of the best. Navy Federal Credit Union offers .25% APY and USAA offers 0.05% APY on their saving accounts.

Account Highlights:

• No fees
• Free recurring online transfers

Still have questions about the best high-yield savings accounts? FAQs

Here are some of the most frequently asked questions about free high yield saving accounts:

What is a high-yield savings account?

A high-yield savings account could pay 20 to 25 times the amount of an average savings account. While many people have a regular savings account at the same bank where they have a checking account, switching to a high-yield account through an online bank is a smart way to make the most of your money.

How much more can I earn with a high-yield savings account compared to a regular savings account? 

On average, banks pay only 0.1% on savings balances. Over the course of a year, you’ll earn just $10 with $10,000 in your account. With an APY of 1%, you’ll earn $100 on your $10,000 savings account balance. 

Over time, if you regularly contribute to a high-yield savings account, you’ll earn even more. For example, if you start with a $10,000 balance and contribute $250 per month for five years, you’ll have a $25,633 balance and you will have earned $883 with a high-yield account that pays 1% APY. 

Why not just open a money market account?

A money market account is similar to a savings account, but because it’s perceived as being a more complicated product, banks may charge a monthly maintenance fee and require a higher minimum initial deposit amount. In most cases, interest rates in a high-yield savings account are the same or better than a money market account. 

Will I have to pay taxes on the interest I earn with a high-yield savings account? 

Yes, interest earned on savings accounts is “ordinary income” according to the IRS. Your bank will send you paperwork showing the exact amount of interest you earned throughout the year. Use this documentation when you do your taxes, or give it to your accountant. 

Are there rules about how often I can make a withdrawal from a savings account? 

Historically, there have been federally-imposed limits on how you can use a savings account. Regulation D from the Federal Reserve Board says you may make a maximum of six withdrawals from your savings account each month. Go over that limit and your bank may charge a fee. Banks have the right, under Regulation D, to close a savings account if the account holder exceeds the maximum amount of allowed withdrawals during three out of 12 months. 

However, the Federal Reserve Board reviewed Regulation D in light of financial disruptions due to the global pandemic, and they now officially recognize that people may need to access funds more often than six times per year. As a result, banks now have the ability to lift the six withdrawal per month limit temporarily or permanently without changing how they classify the account or how much interest the account earns over time. 

How can I increase my savings balance if I don’t have a lot of extra money?

Even if you don’t have much wiggle room in your budget, it’s crucial to set aside a certain amount out of each paycheck and put it into your savings accounts. Most high-yield savings accounts work seamlessly with any checking account at any bank. Talk with your employer about changing your direct deposit so that a small amount goes directly into your savings account. If you can afford $5 out of each paycheck, that’s fine. It’s important to get into the habit of saving money, no matter the amount. 

What if I need help with my account and the bank doesn’t have a physical location?

Banks are highly conscious of their ability to offer great customer service. Choose a high-yield savings account from a bank that offers 24/7 US-based customer service and rest assured that help is just a phone call away. 

Are high-yield savings accounts FDIC insured?

All of the financial institutions listed here offer fully insured accounts. There’s no risk that you’ll lose money in a high-yield savings account from an FDIC insured bank or NCUA insured credit union. If you shop around for any bank account, make sure they are either FDIC or NCUA insured. 

What is APY?

APY is the annual percentage rate offered by the bank or credit union. This is the percentage of your account balance that you can expect to earn after one year. For example, if you have $10,000 in a savings account with a 2% APY, you’ll earn $200 over the course of the year, leaving you with a balance of $10,200. 

How can I find the highest-possible APY with a high-yield savings account?

Interest rates change constantly, but with a bit of research, you should be able to locate a savings account with a high interest rate. Watch out for fees, minimum balance requirements, and initial deposit amounts. High-yield savings accounts offering the best rates may have hidden fees or require a high ongoing minimum balance, compared to competitors. 

The bottom line: You have a lot of choices among high-yield savings accounts from reputable banks and credit unions. While interest rate is important, take time to evaluate the account’s other features, as well. 

While some banks offer 24/7 access to US-based customer service, others may offer customer service only during normal business hours. If you travel frequently, it may be important to you to have access to customer service no matter the time zone. If you need help working through savings goals, check out the banks on this list that offer digital money management tools to help you make those financial goals a reality.