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A high-yield savings account is one of our best financial tools. It’s a place that we can keep our emergency funds, travel funds, down payment funds, remodel funds, etc. It acts as a secure space in between the safety of a checking account and the riskiness of investments. But not all savings accounts are created equal.
best choice
- APY: 1.85%
- Minimum Balance: $0
- Promotion: No current promos
HIGHEST APY
- APY: 1.85%
- Minimum Balance: $100
- Promotion: No current promos
BEST APY
- APY: 2.10%%
- Minimum Balance: $0
- Promotion: No current promos
The national average interest rate (or APY - annual percentage yield) on a savings account is 0.09%.
But there are much better options now, offering much higher yields.
There has been a major influx of online banks offering significantly higher interest rates through their online savings accounts.
They offer rates ranging from 1.60% to 2.0%, making them much more competitive for your money.
Online banks are able to offer rates like these since they do not have the costs of operating physical locations.
But fear not, these banks are insured by the FDIC just like the bank down the street and offer great digital tools to make accessing and transferring your money a breeze.
And remember, once you have enough cash stored away in a savings account, you should look to invest.
Consider using a robo-advisor if you aren’t 100% confident in your investing abilities.
Summary of Best High-Yield Online Savings Accounts
Product | APY | Website |
|---|---|---|
Betterment Everyday | 1.85% With $0 minimum balance | at Betterment, Member, FDIC |
CIT Bank Savings Builder | 1.85% With $100 minimum balance | at CIT Bank, Member, FDIC |
Axos Bank™ Rewards Checking | 2.10% With $0 minimum balance | at Axos Bank™, Member, FDIC |
 Radius Bank Rewards Checking | .75% With $0 minimum balance | at Radius Bank, Member, FDIC |
 SoFi Money | 1.60% With $0 minimum balance | at SoFi Money, Member, FDIC |
The High-Yield Savings Account Advantage
High-yield savings accounts have an advantage over their lower-yielding counterparts because money held in these accounts grows so much faster.
For example: 2.0% on $10,000 of savings is $200 per year in interest.
Compared to the national average of 0.09%, the same $10,000 would net only $9 per year in interest.
In this example, a high-yield savings account produces over 22x more interest than the national average.
3 Best High Yield Savings Accounts
*Note: All rates accurate as of May 21, 2021
Betterment Everyday
APY: 1.85% (if signed up for Betterment Everyday Checking, otherwise 1.60%)
Minimum account balance: None
ATM Fees: Reimbursed worldwide
Review: While not technically a bank, Betterment offers a cash management account where they provide up to 1.85% interest on any balance held in the account.
Because Betterment is not a bank - rather they are an online financial institution that provides investment services - they store your deposits with their network of partner banks and therefore have the protection of an FDIC insured savings account.
Betterment’s Everyday Cash Reserve account benefits from the sleek design of Betterment’s entire website and mobile app.
Their services are easy to use and easy to sign up for. In addition to the Everyday Cash Reserve, Betterment will soon be offering an Everyday Checking account that reimburses all ATM fees and allows unlimited transfers each month.
CIT Bank
APY: 1.55% - 1.85%
Minimum Account Balance: $100
Review: CIT Bank offers two different high-yield savings accounts: the Premier High Yield Savings and Savings Builder.
The accounts function in slightly different ways, but they are both FDIC insured, are free to open and maintain, and offer mobile check deposit and transfers with the CIT Bank mobile app.
The Premier High Yield is their standard high-yield savings account, offering 1.55% APY after a minimum opening deposit of $100.
The Savings Builder account takes a different approach to savings and offers a 1.85% APY if you make at least one monthly deposit of $100 (or more) or maintain a balance of $25,000 or more.
The Savings Builder account encourages you to save consistently, and for that reason, it’s the clear recommendation here from CIT Bank.
SoFi Money
APY: 1.60%
Minimum Account Balance: None
Review: SoFi’s online savings feature comes in the form of a cash management account since they are not a bank.
It is standard practice for cash management accounts to use a process called “sweeping” whereby the financial institution (SoFi) sweeps your deposited money into partner banks, who then hold it.
Because your money is swept into a licensed bank, it carries the full FDIC protection that you’d receive at any other bank.
Access to SoFi’s cash management account is free, with no minimum or monthly account dues.
SoFi offers a debit card and unlimited reimbursed ATM fees along with automated bill pay and access to SoFi member benefits like career coaching and financial advising.
Which High-yield Savings Account Should You Choose?
High-yield online savings account are the hands-down best savings account option currently available today.
It is a safe place to store your cash for:
Not only are these accounts insured by the FDIC, but their interest rates make them much more attractive than a checking account or savings account that does not offer as high a yield.
But remember, you shouldn’t store all of your excess cash here. If you feel like you have enough stored away for whatever purpose, you should look to invest anything extra.
Investing in low-cost index funds has historically returned anywhere from 7-10% annually, which is much greater than these accounts.
But investing carries a lot more risk, so these high-yield online savings accounts are a great option for any cash you expect you might need in the near future.
Betterment Everyday
A cash management suite that helps you make the most of your everyday money, including Checking and Cash Reserve accounts.
Jacob holds a bachelors degree in finance and has spent his professional career crunching numbers and mastering spreadsheets in the corporate world. He moonlights as a fantasy football commissioner, back-yard bbq amateur, and freelance writer/money blogger.