Best High-Yield Savings Accounts (February 2025): up to 4.90% APY (original) (raw)

If you’re like the 81% of Americans we surveyed who currently earn less than 4% APY on their savings accounts, it may be time to consider another option.

For our list of the best high-yield savings accounts, we at the MarketWatch Guides team researched more than 154 banks and credit unions and reviewed the 126 of them that offer savings accounts. We also opened our own accounts with all nine of our top picks to provide you with first-hand experience on the application process and managing your account. We evaluated various factors, including rates, requirements and user experience to help you decide where to put your money.

Key Takeaways

• With a 4.90% rate, Veritex Community Bank offers the highest APY high-yield savings account.
• To save you time from having to review bank and credit union websites, we reviewed account terms from 126 banks and conducted first-hand research by opening up accounts at the top eight banks on this list.
• To determine the top high-yield savings accounts, banks were evaluated based on account options, fees, rates, terms and user experience.
• In both our MarketWatch Guides rating and user experience ranking, SoFi Bank came out on top and pays up to 3.80% APY with generous bonuses.

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Featured Savings Accounts

FEATURED

Lending Club

4.3

APY 3.50%

Bonus N/A

Min. Deposit Amount $0

Earn up to 4.75% APY with $250+ deposits per month

SoFi Checking + Savings

4.8

APY 3.80%

Bonus Up to $300

Min. Deposit Amount $0

SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either 50(withatleast50 (with at least 50(withatleast1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR 300(withatleast300 (with at least 300(withatleast5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.

UFB Portfolio Savings

4.6

APY 4.01%

Bonus N/A

Min. Deposit Amount $0

Unlock up to 4.21% APY, Combine Freedom Checking with Portfolio Savings to boost your savings APY by up to 0.20%

Discover

4.6

APY 3.75%

Bonus N/A

Min. Deposit Amount $0

Best High-Yield Savings Accounts of February 2025

We researched 126 financial institutions to evaluate their account options, fees, rates, terms and customer experience to determine the top high-yield savings accounts. Our list below includes eight financial institutions which all have APYs over 4%, minimal or no monthly fees and low or no deposit requirements. Our research team also conducted first-hand research by opening accounts at each of these banks (and some others). We were further supported on this article by a four-person research team, which included a certified public accountant, a masters of business administration, and a private equity investor. Read more of our findings on each bank below.

*APYs (Annual Percentage Yields) accurate as of November 21, 2024

Summary: The Best High-Yield Savings Accounts

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The listings that appear are from companies from which this website may receive compensation, which may impact how, where and in what order products appear. Not all companies, products or offers were reviewed in connection with this listing.

*APYs (Annual Percentage Yields) accurate as of November 21, 2024

Jump to our methodology to learn how we rated these savings accounts.

High-Yield Savings Accounts: In the News

Fed Announces Another Rate Drop

On Nov. 7, the Federal Reserve reduced the federal funds rate by 0.25% to a range of 4.50% to 4.75%. Stephen Kates, a certified financial planner and principal analyst for Annuity.org, suggests this cut might not immediately mean cuts in rates for some high-yield savings products. The next Fed meeting is Dec. 17-18.

“The direct impact of this 0.25% rate cut on fixed-income securities will likely be overshadowed by the recent election results,” Kates said. “Under normal circumstances, this cut would be expected to directly impact the rates offered on short-term and cash-equivalent investments by lowering the prevailing rates. However, actual changes may deviate from this expectation based on shifting investor expectations.”

This delay of banks following rate cuts could allow savers to continue earning competitive rates for high-yield savings accounts a bit longer.

“The strength of current yields offers savers more time to decide how to act, but yields will not defy the Fed’s cuts forever,” Kates said.

Top High-Yield Savings Account Rates Today

Here are the very highest rates in the country for high-yield savings accounts. While the following banks have the highest APYs as of February 12, 2025, they may not make it into our top picks list because of some limitations: they can have stricter minimum deposit requirements, geographic restrictions or membership requirements. Their rates may also change frequently, meaning they may only offer a high rate for a limited time period. This data is sourced daily by Curinos.

High-Yield Savings Account Rate Trends

High-yield savings accounts are deposit accounts with much higher interest rates than standard savings accounts. They’re most commonly found with online banks and credit unions that have lower overhead costs, allowing these financial institutions to offer better deposit rates.

Another key feature of most high-yield savings accounts is their variable APY, which means the interest rate can fluctuate with the market. As of May 2024, the Fed has yet to decrease interest rates as it waits for inflation to trend down toward its 2% target. If the Fed indeed cuts rates in the second half of the year, as expected, interest rates for savings accounts will also likely fall.

Below are APYs from six top banks offering a high-yield savings account:

Is Now the Best Time to Open a HYSA?

A key feature of most high-yield savings accounts is their variable APY, which means the interest rate can fluctuate with the market. While the last two years have brought much higher APYs for these accounts due to the Federal Reserve’s interest rate hikes, rates will almost inevitably go down in the future when rates are lowered. As of August 2024, the Fed has yet to decrease interest rates as it waits for inflation to trend down toward its 2% target. If the Fed indeed cuts rates in the latter part of the year, as expected, interest rates for savings accounts will also likely fall.

“It is likely that rates will start falling before the end of the year when the Fed finally makes its move to cut rates. Any consumers who want to lock in long-term rates at 4%+ will need to plan ahead with other fixed income products like CDs, bonds or fixed annuities.”

Stephen Kates, CFP® Principal Financial Analyst for Annuity.org

>> Related: Learn more about the average saving account interest rate

What Makes the Best High-Yield Savings Accounts?

A high-yield savings account is a savings account with a significantly higher interest rate than your average account. This means your money grows faster so you can get a boost for your financial goals.

But what makes the best high-yield account? Consider these other features:

1. Competitive APY: The rate your money earns annually is a big part of what makes a high-yield savings account so appealing. The higher the APY, the faster your money grows.
2. Accessibility: Make sure the bank you choose offers convenient ways to access your cash, such as in-network ATMs or quick fund transfers.
3. Low fees: Nothing kills your earnings faster than fees. The best accounts don’t have a monthly maintenance fee or other hidden charges.
4. Dependable customer service: Make sure you can access an agent during convenient times. Look for chat, email and phone support and excellent customer reviews.
5. Low or no minimum balance: Many accounts on our list don’t require you to keep a minimum balance to get the best rates, but check that carefully before you commit.
6. Transparency: If you have to sleuth out a bank’s terms and conditions to understand what you’re getting, you might want to look elsewhere or ask a lot of questions so you know exactly what you’re getting into.
7. Stellar reputation: Look for a bank with a reputable brand name. It’s best to entrust your savings to a company that has stood the test of time and earned the trust of its customers.
8. Long track record: A strong rate history of above-average APY is a good indication that the account’s APY is likely to remain attractive into the future. It’s time-consuming to switch bank accounts, so you’ll want to make sure you’re not falling for a teaser rate – and that your account is likely to keep its attractive rate of return.

>> Related: What is a high-yield savings account?

Why You Should Get a High-Yield Savings Account

High-yield savings accounts can be beneficial for a broad range of customers, but they may be particularly well suited for savers with certain objectives:

• Maximize return on money you may need to access: Long-term investments (such as stocks) will have highly uncertain short-term returns. A savings account offers less total return, but substantially lower risk (as long as the bank is insured by the FDIC or NCUA). If you know you will need to access the money in a shorter timeframe, savings accounts protect your principal.
• Build an emergency fund to guard against the unexpected: If your car breaks down or you have a medical emergency, a high-yield savings account has both easy access for such a time and competitive rates to grow your money.
• Avoid fees or forfeited interest from Certificates of Deposit: If you’re saving for a goal such as purchasing a new home or wedding, a high-yield savings account can give you a higher APY than traditional savings accounts and let you withdraw money when you want, unlike typical CDs which can have stiff penalties if you withdraw funds before maturity.

“If you’re just starting to save for short-term goals or to establish an emergency fund, a savings account might be a good bet. It also makes sense if you’re planning to make a big purchase — such as a refrigerator, vacation or down payment on a car — within a year or so.”

Mary Hines Droesch Head of Consumer and Small Business Products at Bank of America

How Much Does a High-Yield Savings Account Earn?

While many financial institutions offer 4% to 5% APYs (or higher) on high-yield savings accounts, our recent consumer banking survey shows 62% of Americans earn less than 3% in interest on their savings or money market accounts.

Keeping your savings in a high-yield savings account can make a big difference in the long run. The chart below shows how much you can earn in interest over five years holding $10,000 in a traditional savings account compared to a high-yield savings account.

Because they give you a higher return, high-yield savings accounts are better than regular savings accounts for lowering the impact of inflation on your deposits. As the Fed has raised the federal funds rate in an attempt to reduce inflation, APYs on high-yield savings accounts have generally gone up.

A low-interest savings account typically offers APYs that may not keep pace with the rate of inflation, so the purchasing power of your money typically decreases over time. On top of providing better rates, high-yield savings accounts often don’t have monthly maintenance fees or minimum balance requirements.

High-Yield Savings Account Calculator

Use our savings account calculator to see exactly how much you can earn with a high-yield savings account.

SAVINGS INFORMATION

How much is your initial deposit?

How much is your monthly contribution?

How long will you accumulate savings?

What is the your APY? (%)

YOUR TOTAL SAVINGS $17,623

Initial Deposit $10,000

Total Contributions $6,000

Interest Earned $1,623

Alternatives to High-Yield Savings Accounts

Because high-yield savings accounts can have limitations, such as limited physical access and variable APYs, some customers prefer alternative ways to save. There are many ways to invest your savings and while a high-yield savings account may work for you, here are some other options to consider:

>> Related: Read about savings accounts vs. money market accounts

High-Yield Savings Account FAQs

The amount of interest you can earn on 10,000inahigh−yieldsavingsaccountwilldependontheaccount’sAPYandhowofteninterestiscompounded.Forexample,iftheAPYis5.2510,000 in a high-yield savings account will depend on the account’s APY and how often interest is compounded. For example, if the APY is 5.25% for the entire year and interest is compounded daily, you’ll earn about 10,000inahigh−yieldsavingsaccountwilldependontheaccount’sAPYandhowofteninterestiscompounded.Forexample,iftheAPYis5.25525 in a year.

APYs on savings accounts are variable and can change without notice. The amount and frequency of change varies depending on the bank’s policies, competition and external economic factors such as the Fed’s changes to its benchmark rates.

Your bank sets the limit on the number of withdrawals you can make from your high-yield savings account each month. That number could be six times per month, since that used to be the federal limit. If you exceed your savings account’s withdrawal limit, you’ll likely be charged fees.

Yes, interest earned from a high-yield savings account is typically considered taxable income and must be reported when you file your taxes. If you earn at least $10 in interest in a calendar year, your bank will likely issue you Form 1099-INT, which details the amount of interest you received.

You’re unlikely to find an FDIC-insured savings product that will provide a 7% interest rate. However, many online CDs and high-yield savings accounts offer APYs in the range of 4% to 5% or more.

The best high-yield savings accounts right now offer above 5% APY. These are generally from online banks and credit unions.

The earnings for a high-yield savings account depend on the account’s APY and the time frame you’re considering. At 4.35% APY, 50,000wouldearnabout50,000 would earn about 50,000wouldearnabout2,176 in one year, assuming the rate doesn’t change and interest is compounded daily.

Your money is safe if your financial institution is insured by the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA). The FDIC – for banks – and the NCUA – for credit unions – insure member financial institutions up to $250,000 per depositor.

Our Methodology

To determine the best high-yield savings accounts in the U.S., the MarketWatch Guides team analyzed data across 126 of the largest and most prominent financial institutions offering these accounts. We compared banks, credit unions and fintechs across five factors, weighting them across the percentages listed:

• Rates (40%): Annual percentage yields (APY) on high-yield savings accounts vary widely across banks. More than a third of the institutions we considered offer an APY of 4% or higher.
• Monthly fees (20%): While many institutions won’t charge a monthly fee for holding a high-yield savings account with them, others do. The highest monthly fee across banks and credit unions is about $10, which can significantly cut into interest earned on your savings.
• Required opening deposits (15%): Nearly 70% of the banks we looked at require a minimum deposit. The standard minimum is 50,butataselectnumberofbanks,minimumdepositsexceed50, but at a select number of banks, minimum deposits exceed 50,butataselectnumberofbanks,minimumdepositsexceed1,000.
• Sign-up and referral bonuses (15%): Similar to popular credit card offers, some banks offer sign-up and referral bonuses. Top bonuses exceed $100.
• Account features (10%): Financial institutions that invest in helpful savings tools, such as sub-savings accounts or “buckets” that help consumers save towards specific goals, earn extra points.

We ranked each bank in every metric and using the factor weightings determined our final list. Our ranking of the best high-yield savings accounts is made up of the eight banks, credit unions and fintech companies that were top scorers. We opened accounts with each to bring you first-hand accounts of the process. Read our comprehensive methodology here.

Customer Review Methodology

To provide in-depth perspective on how reviewers feel overall about banks that offer high-yield savings accounts, the MarketWatch Guides team compiled 5,305 reviews from publicly available user-review sites such as Trustpilot, the Better Business Bureau, Consumer Affairs, WalletHub and Best Company.
We then categorized each review and analyzed the sentiment to determine whether it was positive or negative. With this data, we highlighted the most praised features and most common complaints for each bank.

Our Sources

We relied on several additional sources to research and write this article outside of financial institutions websites and MarketWatch user testing.

Data Sources:

• FDIC: National Rates and Rate Caps
• The Fed - CA 21-3: Suspension of Regulation D Examination Procedures (federalreserve.gov)

Experts Cited:

• Heather Bono, Ph.D., Chief of Accounting and Finance, University of West Georgia
• Dr. Stephen Gray, D.B.A. Assistant Professor of Finance, Western Illinois University
• Stephen Kates, CFP®, Principal Financial Analyst for Annuity.org
• Bryce Palar, D.B.A, Visiting Assistant Professor of Business, Augustine College

All America Bank, Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Associated Bank, Axos Bank, Banesco Bank, Bank of America, Bank of Hope, Bank Purely, Bank5 Connect, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO, BMO Alto Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, CFG Bank, Charles Schwab, Charlie Financial, Chase Bank, Chime, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus Credit Union, Consumers Credit Union, Credit One Bank, Cross River Bank, Current, Customers Bank, Delta Community Credit Union, Discover Bank, East West Bank, Emigrant Direct, EverBank (formerly TIAA Bank), Federal Savings Bank, Fifth Third Bank, First Citizens Bank, First Internet Bank (of Indiana), First National Bank of America, First Tech Federal Credit Union, FNBO Direct, Frost Bank, Golden 1 Credit Union, Heritage Bank NA, HSBC, Huntington Bank, KeyBank, Lafayette Federal Credit Union, Lake Michigan Credit Union, LendingClub, Limelight Bank, Live Oak Bank, Lonestar Bank, M.Y. Safra Bank, M&T Bank, Marcus by Goldman Sachs, Mercury Bank, Merrick Bank, Michigan State University Federal Credit Union, Milli, Morgan Stanley Private Bank, Mountain America Credit Union, My eBanc, MySavingsDirect, National Bank of Kansas City, Navy Federal Credit Union, NBKC Bank, North American Savings Bank (NASB), Northpointe Bank, Patelco Credit Union, PenFed Credit Union (Pentagon Federal), PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, SoFi Bank, South State Bank, Spectrum Credit Union, Spring Bank, Star One Credit Union, State Bank of Texas, State Department Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Sutton Bank, Synchrony Bank, Synovus Bank, TD Bank, Texas Capital Bank, Third Federal Savings & Loan, Transportation Alliance Bank (TAB Bank), Truist Bank, U.S. Bank, UFB Direct, Umpqua Bank, Upgrade, USAA Bank, USAlliance Financial, Valley National Bank, Varo Bank, Vio Bank, VyStar Credit Union, Webbank, Webster Bank, Wells Fargo, Western State Bank, Zions Bank, Zynlo Bank

*Rates accurate as of November 21_, 2024. Rates may vary by location. APYs based on Houston for Citi and PNC Bank._

**SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 3.80% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 1/24/25. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.

***New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either 50(withatleast50 (with at least 50(withatleast1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR 300(withatleast300 (with at least 300(withatleast5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/26. See full bonus and annual percentage yield (APY) terms at sofi.com/banking#1.

Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.

Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.