Top High-Yield Savings Accounts
Varo Bank Savings Account
One of the most aggressive yields available today with bonus-based APY opportunities — great for savers willing to meet direct deposit requirements.
APY: Up to 5.00% on balances up to $5,000 with qualifying direct deposits, otherwise ~2.50%
Minimum Balance: $0 to earn base APY
Monthly Fees: $0
Compounding Frequency: Typically daily (standard for online savings)
Newtek Bank High-Yield Savings
A standout no-fee option with one of the highest standard APYs for flexible savers.
APY: Around 4.35%
Minimum Balance: $0
Monthly Fees: $0
Compounding Frequency: Daily (boosts overall effective yield)
Sallie Mae High-Yield Savings Account
Balances competitive yield with total simplicity and no account maintenance obstacles.
APY: Around 3.90%
Minimum Balance: $0
Monthly Fees: $0
Compounding Frequency: Daily
First Foundation Bank Online Savings
A strong contender for savers with a bit more initial capital who want a solid yield without monthly costs.
APY: ~3.75%
Minimum Balance: ~$1,000
Monthly Fees: $0
Compounding Frequency: Daily
Ally Bank Savings Account
Well-rounded choice with great tools, no fees, and no minimums — ideal for most everyday savers.
APY: Around 3.30%
Minimum Balance: $0
Monthly Fees: $0
Compounding Frequency: Daily
American Express High Yield Savings
A reliable large-institution option with strong yield and no fees or minimum balance required.
APY: ~3.30%
Minimum Balance: $0
Monthly Fees: $0
Compounding Frequency: Daily
Vio Bank High-Yield Savings
Consistently competitive online rate with low access requirements.
APY: ~4.09%
Minimum Balance: ~$100
Monthly Fees: $0
Compounding Frequency: Daily
Savings Growth Calculator
Total Balance: $0
Total Interest Earned: $0
Tips for Savers
– Daily compounding boosts growth even if APYs are similar
– Avoid accounts with monthly fees unless extra benefits outweigh cost
– Zero minimum balances make accounts more accessible for new savers
High-Yield Savings FAQ
1. What is a high-yield savings account?
A high-yield savings account is a savings account that offers a much higher interest rate (APY) than traditional banks. It helps your money grow faster while still keeping it accessible for emergencies or short-term goals.
2. Are high-yield savings accounts safe?
Yes. Most high-yield savings accounts are offered by FDIC-insured banks (or NCUA-insured credit unions), which means your deposits are protected up to the legal limit, typically $250,000 per depositor per institution.
3. How often is interest compounded?
Compounding frequency depends on the bank, but many high-yield savings accounts compound daily or monthly. The more frequently interest is compounded, the faster your balance can grow over time.
4. Do high-yield savings accounts have fees?
Some accounts charge monthly maintenance fees, but many online banks offer no-fee high-yield savings accounts. Always check for minimum balance requirements and possible service charges before opening an account.
5. Can I withdraw money anytime?
Yes, you can usually withdraw money at any time, but some banks may limit the number of monthly withdrawals or transfers. Exceeding these limits could result in fees or account restrictions.
6. Why are online banks offering higher APY than traditional banks?
Online banks have lower operating costs because they don’t maintain physical branches. These savings are often passed on to customers in the form of higher interest rates.
7. How do I choose the best high-yield savings account?
Compare APY, minimum balance requirements, fees, compounding frequency, and ease of access. The best account is one that fits your savings goals while offering strong returns and low costs.