That said, not all savings accounts are created equal, and interest rates are just one piece of the puzzle. You also want to put your money where you won’t incur any unnecessary fees or have to maintain a huge balance to earn the advertised rate. 

So if you’re looking for the right place to keep your savings but aren’t sure where to start, don’t worry: we’ve got your back. The Fortune Recommends ^TM team regularly reviews more than 60 high-yield savings accounts to bring you our top picks based on annual percentage yield (APY), deposit requirements, fees, and more.

10 best savings accounts of February 2024

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The best savings accounts: our top picks

We rounded up accounts currently offering APYs of more than 5% to help you choose the best account for your savings. Here’s a quick look at 10 high-yield savings accounts available today with rates of 5.25% APY and up.

1. Milli

Milli is a mobile-only bank, meaning managing your Milli accounts is done from a mobile device, as there are no physical branch locations. But don’t worry, Milli isn’t some fly-by-night app; it’s a division of the First National Bank of Omaha (FNBO), a subsidiary of First National of Nebraska and among the largest privately-owned banks in the country.

Milli’s high-yielding savings account not only comes with zero fees or minimum deposit requirements, but also pays a whopping 5.50% APY. To help you better manage your savings, Milli also offers a “jars” feature, which lets you separate out your savings by goal.

2. My Banking Direct

My Banking Direct is an online-only bank and division of Flagstar, N.A., a regional bank with a significant retail presence in the Midwest and California.

Its high-yield savings account offers a highly competitive 5.35% APY. Savers will need at least $500 to open an account and maintain a minimum balance of $500 to earn this great rate. The good news is there are no monthly fees associated with the account.

3. Brio Direct

An online-only division of Webster Bank, Brio Direct specializes in providing market-leading savings and CD rates. Accounts can be opened online within minutes.

The high-yield savings account from Brio Direct comes with an impressive 5.35% APY. The catch: savers need at least $5,000 to open an account and must maintain a balance of $25 to earn the disclosed APY. But like the other accounts on this list, there is no monthly maintenance fee.

4. Customers Bank

Founded in 2009, Customers Bank is a super-community bank with over $22 billion in assets. It offers banking and loan services across Florida, Illinois, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island and Texas.

However, this particular savings account with an impressive rate of 5.32% APY is accessible to all through Raisin, a free digital savings marketplace that connects individuals to banks and credit unions offering their best digital-only rates and products (all financial institutions on Raisin are federally insured). In other words, you’ll need to open an account with Raisin in order to secure this great rate, and Raisin will handle everything from deposits and withdrawals, statements, and customer service (rather than Cloudbank 24/7).

5. Western Alliance Bank

Western Alliance Bank is a regional bank headquartered in Phoenix, Arizona. It was established in 2009 and primarily offers commercial banking products and services. It operates in key markets across the U.S. and offers services such as commercial loans, treasury management, international banking, and more.

That said, Western Alliance Bank also offers and opportunity for individuals nationwide to take advantage of its high-yield savings account through the Raisin platform. It offers a whopping 5.25% APY and a minimum opening deposit of only $1. In order to open this savings account, you must create a Raisin account (you can’t open one directly with the bank).

6. Ivy Bank

Ivy Bank is a digital financial institution backed by Cambridge Savings Bank, a well-established community bank that has been serving customers since 1834 throughout the greater Boston area. Ivy Bank was established to provide high-yield savings products to customers nationwide.

The high-yield savings account offered by Ivy Bank comes with an impressive 5.30% APY. The catch? You will need a fairly large opening deposit of $2,500 to qualify for this rate. The good news? This account’s APY is guaranteed through June 30, 2024. Plus, there are no minimum balance requirements or monthly fees.

7. TAB Bank

Founded in 1998, TAB Bank is an online-only bank with the mission of providing banking services to underserved individuals and businesses. 

TAB Bank offers a high-yield savings account with 5.27% APY—11 times the national average. You only need $0.01 on deposit to earn this rate and there is no ongoing minimum balance requirement (or balance cap, for that matter). There are also no monthly fees.

8. Cloudbank 24/7

You may have never heard of Cloudbank 24/7 before, but rest assured that they’re a legitimate financial institution offering some of the most competitive online deposit accounts today. Cloudbank 24/7 is a digital bank that’s backed by Third Coast Bank SSB, a community bank that operates in Texas. It specializes in providing online banking products with competitive interest rates.

The high-yield savings account from Cloudbank 24/7 offers a market-leading 5.26% APY. It’s only accessible through Raisin, so you’ll need to create a Raisin account to get this rate.

9. UFB Direct

UFB Direct is the online banking division of San Diego-based Axos Bank. It’s known for offering competitive interest rates and fee structures due to lower overhead costs compared to traditional brick-and-mortar banks. UFB Direct a handful of banking products, including high-yield deposit accounts and mortgages.

You can earn an impressive 5.25% APY with the Priority Savings account from UFB Direct. The account boasts no fees or minimum deposit requirements, and comes with a complimentary ATM card. 

10. Newtek Bank

Another top high-yield savings account comes from Newtek Bank. Here, you can earn a hefty 5.25% APY on your savings and enjoy no minimum deposit or monthly fees. You’ll also get to skip pesky expenses such as service charges and transaction fees.

Since your Newtek savings account is fully online, you can easily check in on your savings via their online banking portal. Opening a new account is simple—all it takes is two minutes to fill out the necessary information.

Our picks for high-yield savings accounts in February 2024

While we evaluated the above institutions based on multiple criteria, the earnings potential of a savings account is often the key factor of concern. Below are some of the highest-yield savings accounts based on APY. Each account is backed by the Federal Deposit Insurance Corporation (FDIC) and insured up to $250,000 per depositor, per account, giving you peace of mind that your savings are protected no matter what.

Note: APYs in our list below are up to date as of January 22, 2024, but are subject to change.

Milli: Best overall

Milli is a mobile-only bank and division of First National Bank of Omaha (FNBO). It specializes in providing digital spending and savings accounts with no fees to help customers make smarter decisions with their money.

Milli’s savings account has the best terms of any financial institution we’ve reviewed. With a standout 5.50% APY and a bunch of “nos” in all the right places (no minimum deposit, balance, or account fees), those looking for a top-notch savings rate could stop their search here.

SoFi: Best for maximizing savings

SoFi is an online bank that offers a wide variety of banking, lending, and investing products and services to its members. In addition to being FDIC-insured, SoFi is one of the few banks offering extra FDIC coverage of up to $2 million per depositor at no additional cost.

SoFi offers a whopping 4.60% APY on your savings—plus an additional 0.50% APY on your checking balance—when you open both a SoFi checking and savings account and set up direct deposit. Setting up direct deposit also makes you eligible for a welcome bonus of up to $300.

UFB Direct: Best for convenience

UFB Direct is a division of Axos Bank that specializes in providing high-yield, low-cost banking products, including savings accounts, money market accounts, and mortgages.

The high-yield savings account from UFB Direct ranks as best when it comes to convenience. For one, it includes a complimentary ATM card and a huge ATM network that allows you to access your money across the country. UFB Direct also provides 24/7 phone support, as well as a highly rated mobile app and robust digital tools. 

FNBO Direct: Best for security features

FNBO Direct is an online-only bank and division of First National Bank of Omaha (which has been around for more than 165 years). It specializes in offering fee-free high-yield checking and savings accounts.

The high-yield savings account from FNBO Direct came in first in our rankings for the best security features. As an online bank, it leads the pack in terms of its security. With FNBO Direct, you can rest assured that your money and identity is protected by robust security features, including fraud protection measures, multi-factor authentication, website encryption, and more. Oh, and it comes with an impressive 5.15% APY.

SoFi: Best for flexibility 

SoFi once again tops our rankings with its high-yield savings account.Banking with SoFi means banking on your terms, whether you want the flexibility to boost your earnings or let the occasional overdraft slip through without fearing excessive fees. That’s why it came in first place in our rankings for flexibility.

This SoFi checking-savings combo comes with a debit card and access to 55,000 surcharge-free ATMs across the country. Members also get access to exclusive rewards, like up to 15% off at qualifying local retailers and cash back on spending.

CIBC Bank Agility Digital Banking: Best for customer service

Headquartered in Chicago, CIBC Bank is backed by a 150-year-old global financial institution. Its online-only banking division, Agility Digital Banking, provides a small suite of high-yield products, including savings and CD account.

CIBC is a great choice for those who want a high yield on their savings and appreciate a personal touch, which is why we named it No. 1 for customer service. Not only does Agility savings account provide 5.01% APY with no minimum balance required, it also offers extensive customer service hours, including evening and weekend access, in a time zone that’s convenient no matter where in the U.S. you’re located.

What is a savings account?

A savings account is a type of deposit account offered by banks, credit unions, and other types of financial institutions. Savings accounts allow you to keep your money on deposit in exchange for earning interest. The exact interest rate will depend on the financial institution and can range from 0.01% to upwards of 5%. 

Savings accounts are also a fairly liquid type of account, which means you can access your money just about as often as you want. Some banks may limit the number of withdrawals you can make in a month (typically, it’s six transactions per month), but you’re still able to exceed any withdrawal cap in place—you’ll just need to pay a fee on each additional transaction.

Finally, savings accounts are considered one of the safest places to keep your money because unlike market investments, there is no risk to your principal deposit. Plus, your money is insured up to $250,000 per depositor, per institution, as long as your bank is backed by the FDIC (or the NCUA for credit unions).

What are the pros and cons of high-yield savings accounts?

Before you open a savings account, it’s important to consider the pros and cons of putting your money in one.

Of course, one of the biggest benefits of a savings account is that you can earn interest on your balance. The exact interest rate you receive may be higher or lower than the national average of 0.46% APY, but many of the high-yield accounts on our list have rates above 5.00%.

You can also rest assured that your money is safe in a savings account, which unlike some types of investments, will never allow you to lose money. Plus, most high-yield accounts are insured by the FDIC (banks) or NCUA (credit unions) up to $250,000 per depositor, per institution in the event of a bank failure. 

That said, there are some downsides to keeping your money in a savings account. For one, even high-yield savings accounts don’t offer the same level of earnings as investing your money in the market. But all savings accounts are sensitive to market fluctuations, and the APY can go up or down at the discretion of your bank. 

You may also be limited in how many monthly withdrawals you can make. Your financial institution might charge a fee for each additional transaction over the limit.

Savings account fees and requirements

If you plan to open a new savings account, it’s important to review the fees associated with the account and any requirements that need to be met to avoid fees. These may include:

• Monthly fees: Some financial institutions charge a monthly fee that’s meant to cover the administrative costs of providing a savings account. However, this fee can easily wipe out any interest you earn. The good news is that monthly maintenance fees can often be waived if you meet certain requirements, such as linking a checking account or maintaining a minimum balance in the savings account. Better yet, many banks and credit unions offer savings accounts with no monthly fees at all. So when shopping around for a high-yield savings account, look for one that makes it easy to avoid fees.
• Minimum deposit requirements: The minimum deposit required to open a savings account and/or earn the specified interest rate varies widely. Some banks and credit unions offer savings accounts with no minimum deposit requirement, allowing customers to open an account with any amount—even just a few dollars. Other institutions might require a minimum deposit ranging from $25 to $100 or even more. (It’s more common for premium or specialty savings accounts to come with higher minimum deposit requirements.) It’s always a good idea to check with the specific financial institution regarding their minimum deposit requirements before opening an account.

How do savings account interest rates work?

Financial institutions set their savings account rates loosely based on the federal funds rate. This is the interest rate that banks charge other banks to lend money overnight. When the Fed raises its rates, this can increase the cost of borrowing and push banks to raise their APYs to attract new customers.  

The interest rate on a savings account is typically variable, meaning it can fluctuate over time. These rate changes are influenced by several factors, including monetary policy set by the Federal Reserve, general economic conditions, and competition among banks. It’s a good practice to periodically check the interest rates on your savings accounts and compare them with rates offered by other institutions to ensure you’re maximizing your earnings.

What is considered a high-yield savings account rate?

The national average savings account rate is 0.46%, so a rate above that benchmark would be considered above-average. However, many banks offer high-yield savings accounts with as much as 4% to 5% APY. It pays to shop around to find the highest rates available if you’re looking for a new account.

Interest rate vs. APY: what’s the difference?

The interest rate on a savings account is essentially the base rate. The APY provides a more comprehensive view of your earnings by factoring in the effects of compounding and calculates how much you’ll earn over the course of a year.

What is 5% APY on $1,000?

To determine how much $1,000 will make in a savings account, you need to know the APY of the account and the length of time you plan to keep the money deposited. Additionally, the frequency of interest compounding (daily, monthly, or annually) can impact your final amount.

For example, if you deposited $1,000 into a high-yield savings account that earns 5% APY and compounds annually, you’d have a total balance of $1,050 at the end of one year (assuming you don’t make any more contributions). If the interest compounds daily, you’d have a bit more.

What is 5% APY on $10,000?

If you deposited $10,000 into a savings account that earns 5% APY and compounds annually, you’d have a total balance of $10,500 at the end of one year (assuming you don’t make any more contributions). If the interest compounds daily, you’d have $10,512.67.

How to choose the best savings account for you

Choosing the right savings account requires careful consideration of your financial needs, preferences, and goals. Here are a few considerations to keep in mind as you shop around.

• Interest rates: One of the most important features of a savings account to evaluate is the interest rate, or APY. This dictates how much your money can earn; the higher the rate, the more your money can grow over time. Start by reviewing the national average rates for savings accounts, which are regularly updated by the FDIC. Then look for a high-yield savings account that offers a rate at least 10 times that average. 
• Balance requirements: Some accounts require a minimum balance to avoid fees or to earn the advertised APY. Ensure you’re comfortable with any minimum balance requirements. Or better yet, look for an account that doesn’t have any minimums, especially if you’re just getting started with saving and don’t have a large balance built up yet. 
• Fees: Be wary of monthly maintenance fees, excessive withdrawal fees, and other charges that could eat into your interest earnings. Some accounts may waive fees if you maintain a minimum balance or meet other criteria, while others don’t charge these types of fees at all. Decide what types of fees you’re comfortable with and whether the perks of the account outweigh the potential costs.
• Account access: Many savings accounts are provided by online banks, which means you may not have physical branch access. If that’s the case, be sure the account offers access in other ways, such as via a large ATM network. Alternatively, you might prefer a financial institution that offers face-to-face support.  
• Digital tools: If you prefer the convenience of digital banking, be sure the account you choose is offered by a bank with robust online features and tools, such as a user-friendly mobile app, free and fast online transfers, digital deposits, and other tech-friendly options.
• Customer service: Finally, it’s important to consider how you’ll get in touch with a representative if you have a question or need help with your account. Some financial institutions take a hands-off approach and don’t offer easy access to a real human. Others are just a phone call or email away. Make sure the bank’s customer service options are aligned with your preferred method of communication. 

Alternatives to savings accounts

A savings account is an important tool that just about anyone should have as part of their larger financial plan. However, it isn’t always the best place to put your money. There are other types of deposit accounts to consider as well:

Traditional savings account vs. high-yield savings

A high-yield savings account isn’t that much different from a traditional savings account. Both are deposit accounts offered by financial institutions that allow you to set aside money and earn interest on the balance. The primary difference is that a high-yield savings account offers a much higher APY on your funds than a typical savings account. And through the power of compound interest, you’ll earn interest on the principal balance and any interest you earned previously. That means you’ll essentially earn interest on your interest, allowing your savings to grow that much faster.

Savings account vs. checking account

A savings account is designed for storing money over a longer period and earning interest, which encourages saving. It may have limitations on the number of withdrawals or transfers per month. A checking account, on the other hand, is intended for managing daily transactions and offers more accessibility. It usually provides a debit card, check-writing capabilities, and often has no limits on the number of transactions. However, checking accounts generally offer lower or no interest compared to savings accounts.

Savings account vs. certificates of deposit (CDs)

Savings accounts and CDs are both savings vehicles that offer interest on your deposits. However, while savings accounts provide relatively easy access to funds with a variable interest rate, CDs lock in your money for a specified term (from a few months to several years) at a (usually) higher, fixed interest rate. Withdrawing funds from a CD before its maturity date typically incurs a penalty, which can reduce the earned interest. 

On the other hand, savings accounts may have limits on the number of monthly withdrawals, but offer more liquidity than CDs. When choosing between the two, it’s crucial to weigh the importance of access to funds against potentially higher fixed returns with CDs.

Savings account vs. MMAs

Savings accounts work similarly to money market accounts (MMAs) in that you’ll earn interest on your balance and can easily access your funds. While savings accounts focus primarily on providing a safe, liquid place to store cash, MMAs often combine the features of both savings and checking accounts, providing higher interest earnings and more flexible access to funds, such as through checks or debit cards. However, MMAs might require higher minimum balances to avoid fees or to earn the advertised rate. 

Overall, a savings account would be the best choice in situations where you prioritize earning some interest on your money while maintaining relatively easy access to the funds, without exposing the principal to market risk.

How to open a high-yield savings account

When you’re ready to open an account, you’ll follow these general steps:

1. Research financial institutions: It’s important to do some research ahead of time to compare interest rates, fees, features, and customer reviews among various financial institutions. Decide whether you’re comfortable with an online-only bank or prefer a bank or credit union with physical branches.
2. Check the requirements: Find out if you need a minimum deposit to open an account or if you’re expected to maintain a minimum balance to avoid fees. Be sure you understand the terms of the account fully.
3. Visit the bank or apply online: Whether online or in-person, you’ll need to contact the financial institution for an application and be prepared to share the details mentioned below. Online applications often allow you to save and return if needed.
4. Fill out the application: You will need to provide some personal information, including your Social Security number or individual taxpayer identification number, a valid ID (such as a passport or driver’s license), and contact information.
5. Deposit funds: When your application gets approved, all that’s left is to deposit your funds into the account and start earning.  

Our methodology 

To narrow down our top picks for the best high-yield savings accounts, the Fortune Recommends^TM team evaluated more than 60 online savings accounts from a variety of traditional brick-and-mortar banks, online banks, and credit unions. 

All the accounts on our list are available to customers in the U.S. no matter where you’re located, subject to the terms of each account. The savings accounts on this list offer an APY at least 10 times the national average. 

We ranked each account in these five core categories: 

• APY (50%): This number represents the real rate of return on your balance; the higher the APY, the better. 
• Monthly fees (15%): Some banks charge monthly maintenance fees. We ranked banks with lower (or zero) monthly fees higher on the list.  
• Minimum amount to earn APY (15%): To earn the high APY, some banks require that you maintain a certain dollar amount in the account, which we view as a limiting factor. 
• Minimum opening deposit (15%): Some financial institutions require a deposit amount when you open your account. We rate a higher opening deposit as less attractive. 
• Customer support (5%): Top picks offer customers various ways to get in contact: chat support, by phone, or even email—phone support was weighted more heavily. 

The rates and fee structures for the accounts mentioned are available for limited periods, and APYs are subject to fluctuation, which could impact how much interest you earn. All the bank accounts and credit unions on this list are insured by the FDIC and NCUA, respectively. To open an account, financial institutions, including banks and credit unions, require a deposit of new money, so you may not be able to transfer money you already had in an account at that bank. 

We measured the same savings accounts and chose our top pick based on the following metrics: 

Category 1: Maximizers 

• APY 
• Monthly fees
• Welcome bonus
• The ability to round-up transactions for extra savings

Category 2: Convenience 

• APY 
• Mobile app rating across both Apple and Google storefronts 
• Physical ATM card or debit card privileges 
• ATM network size 
• Customer service options 

Category 3: Security 

• APY
• Fraud protection 
• Multi-factor authentication (MFA) 
• Website encryption 
• Automatic session timeout 

Category 4: Flexibility

• APY 
• Minimum balance requirement 
• Overdraft protection 
• Rewards 
• Budgeting and/or money management tools 
• Educational resources 

Category 5: Access

• APY 
• Physical branches 
• Extended customer service support during evenings and weekends 
• Customer service options

Frequently asked questions

Are savings accounts liquid?

In general, saving accounts are highly liquid accounts, meaning it’s fast and easy to access your funds when needed. Federal law used to dictate that account holders could transfer funds out of their accounts up to six times per month. However, this rule was paused in 2020 and you can now make an unlimited number of transfers and withdrawals from savings accounts in many cases. However, some financial institutions still limit the number of withdrawals allowed per month and may impose a fee for excessive transactions.

Are savings accounts safe?

Savings accounts are generally safe, especially when they are held at banks that are insured by the FDIC or at credit unions insured by the NCUA. Both entities insure deposits up to $250,000 per depositor, per institution, for each account ownership category. 

Do I have to pay taxes on money in a savings account?

The interest you earn in a savings account is usually subject to income tax. If you earn $10 or more in interest from a savings account in a year, the bank or financial institution will send you a Form 1099-INT, which reports the amount of interest you earned. Even if you don’t receive a Form 1099-INT (e.g., if you earned less than $10), you’re still generally required to report and pay tax on any interest income.

Is it worth putting money in a savings account?

If your goal is to keep cash safe for short-term needs or emergencies, a savings account is a good option since it offers easy access and security for your money.

What does a savings account do?

A savings account is a type of bank account that allows you to deposit money, keep it safe, and earn interest on your balance over time. It’s designed for short-term savings, offering easy access to your money with lower risk compared to other investment options. 

Can you lose money in a savings account during a recession?

Savings accounts are generally considered safe and are usually backed by the government. In the rare event of a bank failure, if the bank is not insured or if your savings exceed the insured amount, there is a risk of losing money. However, this situation can be avoided by keeping your money in an FDIC- or NCUA-insured account up to the federal maximum of $250,000 for insurance.