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High-yield savings accounts are simple, straightforward accounts that allow you to earn a higher APY (annual percentage yield) on your savings than a traditional savings account.1
Here’s an example showing the difference the savings account rate can make when you factor in daily compounding interest. We’ll look at a traditional savings account at the current average APY of 0.47% (as of Feb. 8, 2024) versus a high-yield savings account with a 4.00% APY. After 5 years, the high-yield savings account generated $11,069 in interest earnings. That's a difference of $9,880 in practically passive income!
| Traditional bank with 0.47% (as of Feb. 8, 2024) APY | High-yield savings account with 4.00% APY | Difference in savings | |
| Initial balance | $50,000 | $50,000 | $0 |
| One year balance | $50,236 | $52,040 | $1,804 |
| Five year balance | $51,189 | $61,069 | $9,880 |
Below, you’ll find some of the top high-yield savings accounts available today from our partners. Open a new account in minutes and supercharge your money with the power of compound interest!
| Bank/Institution | APY
Annual Percentage Yield
|
Open Account | Bonus Offer |
|---|---|---|---|
/images/2023/09/07/cb2.png) | 5.24
With $1 min. balance2%APY | Open Account
Member FDIC
insured through Third Coast Bank SSB
| N/A |
/images/2019/11/05/sofi_horz_rgb_turquoise_circler_upward.png) | 4.60
With $0 min. balance3%APY | Open Account
Member FDIC
| Up to $300 cash bonus when you sign up and set up direct deposit with a minimum initial deposit of $5,000 or more |
/images/2024/03/20/44016_102.jpg) | 5.25
With $0 min. balance4%APY | Open Account
Member FDIC
| N/A |
/images/2023/11/28/cb_G2calES.png) | 5.11
With $1 min. balance5%APY | Open Account
Member FDIC
| N/A |
/images/2023/08/16/amex_savings_logo_yytzkea_gc5whxn_copy.png){kind=logo} | 4.25
With $0 min. balance6%APY | Open Account
Member FDIC
| N/A |
/images/2024/01/23/bar_flat_landscape_1c_v.png) | 4.35
With $0 min. balance7%APY | Open Account
Member FDIC
| Now through 5/3/2024, new customers get a $200 bonus after depositing $25,000 or more (Terms Apply) |
/images/2023/04/28/cit_bank_logo.png){kind=logo} | 5.05
With $5,000 min. balance8%APY | Open Account
Member FDIC
| N/A |
Review Our Top Savings Accounts
CloudBank 24/7 Savings - 5.24% APY
Why we like it:
- Incredible 5.24% APY2 to boost your savings
- Interest is compounded daily and posted to your account monthly
- CloudBank 24/7 is a smart digital bank that can help you reach your financial goals without having to wait in lines
- Enjoy 24/7 online access to your account and funds
- FDIC insured through Third Coast Bank SSB, no fees, $1 minimum deposit
SoFi Checking & Savings - Earn up to a $300 bonus and up to 4.60% APY
Why we like it:
- Earn up to 4.60% APY and up to a $300 bonus3
- No overdraft, minimum balance, or monthly fees
- Get paid up to two days early with direct deposit and access financial planning at no additional cost
- Additional FDIC Insurance up to $2 million available through a network of participating banks
How to get the bonus:
- Sign up and make a direct deposit within the first 25 calendar days of the promotional period
- Enjoy up to 4.60% APY and collect up to a $300 cash bonus with a direct deposit or $5,000 or more in qualifying deposits
UFB Secure Savings - 5.25% APY
Why we like it:
- Earn up to 5.25% APY,4 one of the best rates we’ve seen
- No minimum deposit requirement
- No monthly maintenance fees
- Access your funds 24/7 with easy-to-use digital banking tools
- Free transfers between direct deposit accounts
- FDIC Insured
Customers Bank Savings - 5.11% APY
Why we like it:
- Earn 5.11% APY5 to boost your savings
- Powered by Raisin's intuitive savings marketplace
- Interest is compounded daily and posted to your account monthly
- Customers Bank, established in 2009, combines advanced technology with a personal touch in banking
- Enjoy 24/7 online access to your account and funds
- FDIC insured, no fees, $1 minimum deposit
American Express® Savings - 4.25% APY
Why we like it:
- Competitive 4.25% annual percentage yield (APY)6 from a well-known brand
- No minimum deposits or balances required, and no monthly fees9
- Interest compounds daily and is deposited monthly
- 24/7 customer service and easy access to funds
- Choice between online or paper statements
- Accounts offered by American Express National Bank, Member FDIC, Terms Apply
Barclays Online Savings - 4.35% APY + $200 Bonus
Why we like it:
- Excellent 4.35% APY and a $200 bonus (Terms Apply)10
- Online transfers to and from other banks and direct deposit to make saving simple and easy
- Secure, 24/7 online access to your funds
- No monthly maintenance fees and no minimum balances to open
- FDIC insured
CIT Bank Platinum Savings - Up to 5.05% APY
Why we like it:
- 5.05% APY on balances of $5,000 or more8
- High-yield savings account, one of the nation’s top rates
- Daily compounding interest to maximize your earning potential
- No account opening or maintenance fees
- Deposit checks remotely and make transfers with the CIT Bank mobile app
- Member FDIC
Bottom Line
The CloudBank 24/7 high-yield savings account is the savings account you need to know about. At least, if you’re looking for one of the best “bang-for-your-buck” high-yield savings accounts out there. CloudBank 24/7 offers one of the highest APYs2 on the market, plus many other valuable benefits:
Earn a High APY: With CloudBank 24/7, you get one of the highest-yield savings accounts on the market.
Supercharge Your Savings: With CloudBank 24/7, interest is compounded daily and posted to your account monthly. As you put money into this high-yield savings account, you’re able to “supercharge” your savings and let your money grow.
Trusted Banking: CloudBank 24/7 is a trusted, financial institution with experienced bankers who put you first.
24/7/365 Access: You won’t be limited to when or where you can access your funds. Enjoy 24/7 online access to your account whenever and wherever you need it.
FDIC Insured: CloudBank 24/7 is FDIC insured through Third Coast Bank SBB, there are no fees, and the minimum deposit is $1.
/images/2023/09/07/cb2.png)
CloudBank 24/7 High Yield Savings Account Benefits
- Incredible 5.24% APY2 to boost your savings
- Interest is compounded daily and posted to your account monthly
- Enjoy 24/7 online access to your account and funds
- FDIC insured through Third Coast Bank SSB, no fees, $1 minimum deposit
FAQs
Is my money safe in an online savings account?
Money in an online savings account is covered by protections as long as the account provider is FDIC insured, and virtually all major banks are. You'll typically see it stated as "member FDIC."
FDIC stands for Federal Deposit Insurance Corporation. The FDIC insurance covers accounts up to $250,000 accounts up to $250,000, so if your bank goes under financially, you will still get back all your money, up to that amount. The National Credit Union Administration provides similar insurance for credit unions.
What is a good interest rate for an online savings account?
Savings account interest rates vary from bank to bank and over time. The FDIC indicates the national average interest rate for savings accounts is 0.47% (as of Feb. 8, 2024) APY. That means if you see an account with a higher interest rate, it would allow you to beat the average.
What do I need to have to open an online savings account?
Requirements to open an online savings account vary by the financial institution. You generally need to provide your full name, address, contact details, and a Social Security number. Some banks also require you to provide your driver's license information. If you are planning to fund the new account with money from a different bank or credit union, you will also need that account information.
How do I deposit or withdraw money from an online savings account?
The process for depositing and withdrawing money from online savings accounts varies by bank or credit union. Generally, you can fund an online savings account via electronic transfer from another bank account, by direct deposit, or by depositing a check. Withdrawals can generally also be completed by bank-to-bank transfer, or you may be able to request a check or use a debit card if your bank allows it.
Previously, a federal regulation called Regulation D limited you to no more than six withdrawals per month for a savings deposit account, but the Federal Reserve lifted this restriction as of April 2020.
/images/2023/09/07/cb2.png)
High-yield savings account. $1 minimum deposit. FDIC insured.
/images/2019/11/05/sofi_horz_rgb_turquoise_circler_upward.png)
Earn 4.60% APY11 and collect up to a $300 cash bonus with direct deposit or $5,000 or more in qualifying deposits.12 FDIC Insured.
/images/2024/03/20/44016_102.jpg)
High Yield Savings Account. No Minimum Balance. FDIC Insured.
How we chose these products
FinanceBuzz evaluated a selection of bank accounts offered by our partners, looking at various criteria including interest rates, minimum deposit requirements, and more. We did not review all products in the category and compensation was considered when evaluating and ordering the products.