High-Yield Savings Accounts
Make sure you’re getting the highest rate possible for your savings and compare your bank’s rate with our recommendations.
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SoFi Checking and Savings
Annual percentage yield*
up to 4.30%
Minimum Deposit
$0
- Get up to $300 with direct deposit
- No monthly fees
- Up to 2-day-early paycheck
- Up to $2M of additional FDIC insurance through a network of participating banks
Image: Screenshot 2024-08-13 at 9.49.09 AMWestern Alliance Bank
Annual percentage yield*
4.70%
Minimum Deposit
$1
- Put your money to work with Western Alliance Bank.
- Reach your savings goals faster with Raisin.
- Don’t miss out on earning 4.70% APY!
Image: Raisin x Western AllianceUpgrade Premier Savings
Annual percentage yield*
4.69%
Minimum Deposit
$1,000
- Earn 4.69% APY , on $1,000 or more
- No monthly account fees
- Up to $1 Million in FDIC or NCUA insurance through Cross River Bank or Participating Institutions
Image: logo-upgradeDiscover Bank Savings
Annual percentage yield*
4.10%
Minimum Deposit
$0
- No fees, no minimum deposit required, and FDIC insured
- Apply in minutes and grow your money with a savings account interest rate over 5x the National Savings Average
- 100% U.S.-based Customer Service Available 24/7
- See Website for Full Details
Image: discover_bank_logoCredit Karma Money™ Save
Annual percentage yield*
3.60%
Minimum Deposit
$0
- No minimum balance required + no fees
- Automate your savings
- FDIC insured up to $5M through a network of participating banks
Image: CKM-Logo_Karma-Green_RGB*The Annual Percentage Yield (APY) shown is current as of 07/01/2024. Interest rate and APY are variable and may change after initial deposit. Some rates may require a minimum deposit or direct deposit to qualify. See offer terms for details. Credit Karma is not a bank.
Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.
What is a high-yield savings account?
Updated June 12, 2024
Written by: Brad Hanson
A high-yield savings account is a great way to help your money work harder for you. These accounts usually offer a much higher rate of return than the national average or a typical savings account.
If you want to grow your money faster, a high-yield savings account is worth considering. The national average rate for savings accounts is just 0.45% APY, according to May 2024 data from the FDIC, while high-yield accounts typically offer more.
How does a high-yield savings account work?
A high-yield savings account can be a good option to save money for short-term goals, such as setting up an emergency fund or making a big purchase like a new car. Many high-yield accounts are offered online with minimal fees — and usually provide the same deposit protection as traditional banks.
A high-yield savings account may help you reach your financial goals faster because of the higher savings rate.
Keep in mind that high-yield savings accounts are insured up to $250,000 per depositor, per financial institution for each ownership category at banks backed by the FDIC and at credit unions backed by the National Credit Union Administration.
How to compare high-yield savings accounts
When you’re shopping for a high-yield savings account, look beyond the interest rate. Be sure to think about how you plan to use the account and how you like to do your banking. Here are some of the factors to consider.
- Minimum deposit requirements — Check whether you need to deposit a minimum amount to open the account.
- Fees — Look for any monthly fees or charges for things like wire transfers or checks, since these expenses can reduce your savings.
- Withdrawal limits — Like traditional savings accounts, some financial institutions may limit you to six online withdrawals or transfers per month. If you need to make more-frequent withdrawals, a checking account might be a better option for you.
Is it worth putting money into a high-yield savings account?
If you’re looking for a good way to maximize your earnings on short-term savings, setting money aside in a high-yield savings account can make sense. You’ll get a higher interest rate than you would with a traditional savings account — and you won’t be taking on risk if your money, up to the $250,000 per account type limit, is in a federally insured account.
With a high interest rate, your money will grow faster than it would with a low-yield option. For example, with a 0.45% APY, a savings balance of $2,000 would earn about $9 after a year. The same balance held in an account paying 4% APY would earn about $81 during the same period of time.
Use our savings calculator to find out how much you may be able to grow your savings and how long it could take.