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The best high-yield savings accounts in 2024 have high rates, no fees and affordable minimums, plus great customer service. If you’re looking for a safe, accessible place to store some funds and still earn interest in the turbulent economic ocean, a high-yield savings account could be your perfect port.

Annual percentage yields (APYs) and account details are accurate as of June 6, 2024.

Best high-yield online savings accounts

INSTITUTIONACCOUNT NAMEBEST FORAPYMINIMUM DEPOSIT
quontic bank logoQuontic Bank High Yield SavingsDaily compounding interest4.50%$100$0
ufb directUFB Secure SavingsHigh yieldsUp to 5.25%$0$0
affirm logoAffirm Money™ AccountBest for low minimum requirements4.35%$0$0
first foundation logoFirst Foundation Bank Online Savings AccountHigh yields with branch access4.90%$1,000$0
synchronySynchrony Bank High Yield SavingsATM reimbursements 4.75%$0$0
sfgi directSFGI Direct SavingsLow fees4.26%$500$0
Screenshot 2024-04-23 110824MySavingsDirect High Interest Savings AccountNo minimums and low fees4.35%$0$0
sallie mae logoSallie Mae High-Yield Savings AccountSolid yields and low fees4.50%$0$0
capital oneCapital One 360 Performance SavingsIn-person banking4.25%$0$0
bask bank logoBask Bank Interest Savings AccountHigh yields on all balances5.10%$0$0

Best high-yield online savings accounts for small balances

INSTITUTIONACCOUNT NAMEBEST FORAPYMINIMUM DEPOSIT
varo bank logoVaro Savings AccountHigh minimum yield3.00% to 5.00%$0$0
digital federal credit union logoDigital Federal Credit Union Primary SavingsHigh maximum yield0.15% to 6.17%$5$0
Screenshot 2024-04-23 112239Blue Federal Credit Union Accelerated SavingsHigh yield on lowest balances0.15% to 5.00%$0$0

Why trust our banking experts

We base our decision on which banks and products to include in our lists solely on an independent methodology, which you can read more about below. No financial institution or advertiser affects our selections. Moreover, our banking team consists of Taylor Tepper and Jenn Jones, who have won multiple journalism awards and have more than two decades of combined experience in the personal finance industry. These editors are accompanied by a team of analysts who help us accumulate data and ensure its accuracy. Ultimately, we evaluated hundreds of products and analyzed thousands of data points to help you find some of the best savings accounts today.

  • 250+ accounts from 135 financial institutions reviewed.
  • 4 levels of fact checking.
  • 70+ data points analyzed.

Best high interest savings accounts

Best for daily compounding interest

Quontic Bank High Yield Savings

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Quontic Bank’s Website
Annual percentage yield
4.50%
Minimum deposit requirement
$100
Monthly maintenance fee
$0
What should you know
Quontic’s savings account features daily compounded interest and no maintenance, overdraft or non-sufficient fund fees. You can make deposits and withdrawals conveniently via electronic transfer. And while you need an initial deposit of $100, there is no conditional average daily balance requirement. Any earned interest is credited to your account each month.
Pros and cons
Pros
  • Daily compounding interest.
  • Low minimum deposit.
  • No maintenance fees.
Cons
  • Higher APYs available.
  • $0 minimums available elsewhere.

Best for high yields

UFB Secure Savings

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona’s Website
Annual percentage yield
Up to 5.25%
Minimum deposit requirement
$0
Monthly maintenance fee
$0
What should you know
The UFB Secure Savings account offers a competitive high yield of up to 5.25% APY without any maintenance or service fees to drag down your earnings. It features strong banking tools for people on the go, including an ATM card, mobile deposit and SMS banking for convenient access anywhere in the world.
Pros and cons
Pros
  • Competitive yield.
  • Highly-rated mobile banking.
  • No minimum to open or maintain the account.
Cons
  • No physical branches.
  • Higher yields available.

Best for low minimum requirements

Affirm Money™ Account

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona’s Website
Annual percentage yield
4.35%
Minimum deposit requirement
$0
Monthly maintenance fee
$0
What should you know
Mainly known for its “buy now, pay later” business, Affirm also offers an online savings account. Because it partners with Cross River Bank, your Affirm Savings deposits are insured by the FDIC (Federal Deposit Insurance Corporation) up to the federal limit of $250,000. Interest is compounded daily and credited monthly. The low minimum, competitive yield and lack of fees, make the product one you should consider.
Pros and cons
Pros
  • Decent yield.
  • Highly-rated mobile app.
  • Free automated savings tools.
Cons
  • Higher yields available elsewhere.
  • Designed to pair with a “buy now, pay later” service.

Best for high yields with branches

First Foundation Bank Online Savings Account

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona’s Website
Annual percentage yield
4.90%
Minimum deposit requirement
$1,000
Monthly maintenance fee
$0
What should you know
First Foundation’s Online Savings account offers 4.90% APY, which, while lower than the absolute highest APYs on the market, is still many times higher than the national savings average. This is also impressive given that it’s not just an online bank. It has 30 physical branches in five states: California, Florida, Hawaii, Nevada and Texas. There are no maintenance fees. You can request an ATM card as well.
Pros and cons
Pros
  • Competitive yield.
  • Physical branches in some states.
  • No membership hoops to jump through.
Cons
  • High minimum deposit requirement.
  • Limited branch locations.

Best for ATM reimbursements

Synchrony Bank High Yield Savings

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona’s Website
Annual percentage yield
4.75%
Minimum deposit requirement
$0
Monthly maintenance fee
$0
What should you know
A purely online bank, Synchrony offers a strong APY on its savings account, which comes with an ATM card, no minimum deposit, no minimum balance and no monthly fees. It has a well-rated mobile app and other great savings options, including CDs and money market accounts. As frosting on the cake, you’re automatically enrolled in the Perks Reward program when you open any Synchrony account. Perks include free wire transfers, travel rewards and more.
Pros and cons
Pros
  • Competitive yield.
  • No minimums.
  • Rewards program.
Cons
  • No physical branches.
  • No checking account available.

Best for low fees

SFGI Direct Savings

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona’s Website
Annual percentage yield
4.26%
Minimum deposit requirement
$500
Monthly maintenance fee
$0
What should you know
SFGI Direct Savings requires a $500 initial deposit to open, but you’ll continue to earn interest on your account even when you have only $1 in it. The bank is the online arm of Summit Community Bank, so you can access your account via the Summit Community Bank app, which is rated well on both the Android and Apple platforms. Interest accrues daily on the account and is credited each month.
Pros and cons
Pros
  • Competitive yield.
  • Low minimum.
  • Highly-rated mobile app.
Cons
  • Large initial deposit required.
  • Limit of six withdrawals a month.
  • Only one external account can be linked.

Best for no minimums and low fees

MySavingsDirect High Interest Savings Account

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona’s Website
Annual Percentage Yield
4.35%
Minimum deposit requirement
$0
Monthly maintenance fee
$0
What should you know
The MySavings Account has a competitive APY with no minimum or maximum deposit and no membership hoops to jump through. As the online arm of Emigrant Bank, which dates back to 1850, your savings account comes with some solid roots. The tradeoff, however, is that despite being an online company, it only offers old-school, browser-based access—no mobile app.
Pros and cons
Pros
  • High yield.
  • No balance requirements.
  • No fees.
Cons
  • No phone app.
  • Your initial deposit must be made via check.

Best for solid yields and low fees

Sallie Mae High-Yield Savings Account

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona’s Website
Annual percentage yield
4.50%
Minimum deposit requirement
$0
Monthly maintenance fee
$0
What should you know
With a decent yield, no minimum balance and no monthly fees, Sallie Mae’s High-Yield Savings Account is an attractive choice for savers. While the company is known for providing student loans, it also offers savings products and credit cards, which you could use to help build your credit and finances in preparation for college or after graduating. Interest is compounded daily and paid to your account monthly.
Pros and cons
Pros
  • No maintenance fee.
  • Solid yield.
  • Daily-compounding interest.
Cons
  • No checking account available.
  • No ATM access.

Best for in-person banking

Capital One 360 Performance Savings

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona’s Website
Annual percentage yield
4.25%
Minimum deposit requirement
$0
Monthly maintenance fee
$0
What should you know
As the tenth largest bank in the nation by assets, Capital One can be a one-stop shop for savers. The 360 Performance Savings account offers a decent interest rate while easily tying into other Capital One accounts. You could have your online savings account, checking account, auto loan and various deposit vehicles like CDs (certificates of deposit) all in one place. The 360 Performance Savings doesn’t charge maintenance fees or require a minimum balance to open or maintain. The bank also scores well on customer satisfaction and digital experience metrics.
Pros and cons
Pros
  • Competitive yield from a top-ten bank.
  • Mobile check deposit.
  • Various other savings products.
Cons
  • Limit of six withdrawals per month.
  • No direct access via debit or ATM card.

Best for high yields on all balances

Bask Bank Interest Savings Account

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Bask Bank’s website, Member FDIC
Annual percentage yield
5.10%
Minimum deposit requirement
$0
Monthly maintenance fee
$0
What should you know
Bask focuses on savings products — especially for frequent American Airlines AAdvantage® members. But you needn’t be a jetsetter to benefit from this account. Savvy savers can take advantage of a Bask Interest Savings Account to earn 5.10% APY and a Bask Mileage Savings Account to earn American Airlines AAdvantage® miles.
Pros and cons
Pros
  • Strong yield.
  • Live customer support available six days a week.
Cons
  • No debit or ATM card.
  • Wire transfer fees.

Best high-yield savings accounts for small balances

These options are best suited for those just starting to build up their emergency funds, and you'll typically find the best picks from online savings accounts. The following accounts offer some of the highest rates we’ve seen, but restrict how much of your savings can profit from those rates. Therefore, once you’ve amassed enough savings, you should consider moving for funds into an account mentioned above.

Varo Savings Account

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona's Website
Annual percentage yield
3.00% to 5.00%
Minimum deposit requirement
$0
Monthly maintenance fee
$0
What should you know
The Varo Savings Account is ideal for newbie savers: You can earn from 3.00% APY to start, then qualify to earn 5.00% APY on balances up to $5,000 the next month after receiving qualifying direct deposit(s) totaling at least $1,000 and ending the month with a positive balance in both the Varo Bank Account and Savings Account (balances over $5,000 earn 3.00% APY) You can earn the higher APY on the first $5,000 of your deposit if you have a positive balance in both your Varo Bank Account and Varo Savings Account at the end of the month, and you receive direct deposit(s) totaling at least $1,000 during the month. In the months that you don’t meet those requirements, you’ll receive the lower APY, which also applies to any amount that eclipses the $5,000 cap. While this is lower than what our winners above provide, it’s likely still high enough (especially when combined with the first rate) to help you meet your financial goals.
Pros and cons
Pros
  • Competitive top yield.
  • Free, automatic savings tools.
  • No fees.
Cons
  • You must jump hurdles to earn the top yield.
  • Highest yield only applies to $5,000 of your deposit.
  • Lower yield isn’t competitive.

Digital Federal Credit Union Primary Savings

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona's Website
Annual percentage yield
0.15% to 6.17%
Minimum deposit requirement
$5
Monthly maintenance fee
$0
What should you know
The Primary Savings account at DCU offers an astounding 6.17% APY on the first $1,000, after that, earn 0.15% APY. If you’re a new saver, this is a great place to start. But once you have more than $1,000 saved, it’s time to consider one of our winners. You can become a member by joining the nonprofit Reach Out for Schools with a $10 donation.
Pros and cons
Pros
  • No fees.
  • Competitive yield for balances under $1,000.
Cons
  • Limits apply.
  • Lower yield is dismal.

Blue Federal Credit Union Accelerated Savings

BLUEPRINT RATING
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
On Fiona's Website
Annual percentage yield
0.15% to 5.00%
Minimum deposit requirement
$0
Monthly maintenance fee
$0
What should you know
Blue FCU’s Accelerated Savings account helps those just starting out, but then limits yield as more savings are amassed. Therefore, be prepared to sign up for another high-yielding account once you pass the teaser rate threshold. Balances from $0.00 to $1,000.00 earn a 5.00% APY. That drops down to $1,000.01 to $5,000.00 with balances between $0.00 to $1,000.00; and then to 1.80% to 1.15% for the next tier, and so on. A $5 contribution to the Blue Foundation, which is taken from your initial $10 deposit, qualifies you as a member.
Pros and cons
Pros
  • High initial yield.
  • Straightforward membership.
  • Live chat available.
Cons
  • Lower yield is less competitive.
  • Low-rated mobile app.

Methodology

Nearly every has some kind of account to hold their finances; the trick is to find a savings account that matches your needs.

This is especially important in our new era of high-yields following the Fed’s efforts to stymie inflation by increasing short-term interest rates for much of 2022 and 2023. And since many Americans have less saved than they should, every percentage point of yield helps.

Therefore, we gave the most weight in our ranking to APYs (annual percentage yield).

The next most important factor was fees, such as a monthly fee or charges for excess transactions. High yields will do little to improve your savings if your account is nickel-and-diming you at the same time.

Non-APY factors still played a part, including customer experience and digital experience. All else being equal, we want banks that make banking, well, easy.

But with a high-yield account, you want something that will deliver as much return as possible, and are thus willing to endure some tradeoffs.

We looked at 288 high-yield savings accounts offered by 138 financial institutions. We evaluated them to create a star rating for each. An institution with a perfect score of 100 would get five stars. One with a score of 80 would get four stars and so on.

Here are the categories we analyzed and how we weighted each to determine the best high-yield savings accounts.

  • APY: 75%
  • Fees:10%
  • Minimum deposit: 5%
  • Minimum balance to avoid fees: 5%
  • Customer experience: 2.5%
  • Digital experience: 2.5%

These are the banks, credit unions, financial technology companies and brokers that we monitor:

Affinity Federal Credit Union, Affirm, Alliant Credit Union, Ally Bank, Amalgamated Bank, American Express, Apple Federal Credit Union, Armed Forces Bank, Axos Bank, Bank of America, Bank OZK, Bank5 Connect, BankPurely, Barclays, Bask Bank,  Bethpage Federal Credit Union, Blue Federal Credit Union, BMO, BMO Alto, Bread Financial, BrioDirect, Cadence Bank, Capital One, CFG Bank, Charles Schwab Bank, Chase, Chevron Federal Credit Union, Chime, CIBC Bank, CIT Bank, Citibank, Citizens Access, Colorado Federal Savings Bank, Comerica, CommunityWide Federal Credit Union, Connexus Credit Union, Consumers Credit Union, Consumers Credit Union (MI), Credit Union of Denver, Digital Federal Credit Union, Discover, DollarSavingsDirect, E*TRADE from Morgan Stanley, EmigrantDirect, EverBank, Exchange Bank & Trust, Fidelity, Fifth Third Bank, Financial Partners Credit Union, Financial Resources Federal Credit Union, First Citizens Bank, First Foundation Bank, First Horizon Bank, First Internet Bank, First National Bank and Trust Company, First National Bank of America, FitnessBank, FNBO Direct, Georgia’s Own Credit Union, Golden 1 Credit Union, Greenwood Credit Union, Hanscom Federal Credit Union, Heritage Bank, HSBC Bank, Hughes Federal Credit Union, Huntington Bank, Ideal Credit Union, iGoBanking, IncredibleBank, Ivy Bank, KeyBank, Kinecta Federal Credit Union, La Capitol Federal Credit Union, Laurel Road, LendingClub, Live Oak Bank, M&T Bank, M1, MAC Federal Credit Union, Main Street Bank, MainStreet Bank, Marcus by Goldman Sachs, Milli Bank, MSU Federal Credit Union, My Banking Direct, My eBanc, MySavingsDirect, NASA Federal Credit Union, Nationwide, Navy Federal Credit Union, nbkc Bank, Northpointe Bank, Nuvision Federal Credit Union, One Finance, Pacific National Bank, Paramount Bank, PenAir Credit Union, PenFed Credit Union, PNC Bank, Popular Direct, Presidential Bank, PSECU, Quontic Bank, Quorum Federal Credit Union, Regions BankRising Bank, Salem Five Direct, Sallie Mae Bank, Santander, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, SFGI Direct, SmartyPig, SoFi, Spectrum Credit Union, State Bank of Texas, State Department Federal Credit Union, State Farm, Superior Choice Credit Union, Synchrony Bank, TAB Bank, TD Ameritrade, TD Bank, Texas Bank, Texas Capital Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank & Trust, ӣƵA, ӣƵlliance Financial, Varo Bank, VIO Bank, Webster Bank, Wells Fargo, Zions Bank and Zynlo Bank.

National average for savings accounts

You may notice that our winners compare favorably to most savings accounts you see offered by banks. The national average rates for savings accounts, according to the (FDIC) as of May 20, 2024, are:

SAVINGS PRODUCTNATIONAL DEPOSIT RATE
Savings
0.45%
Interest Checking
0.08%
Money Market
0.68%

Latest savings account rate news

It looks as if savings account yields will stay elevated for a bit longer than expected.

Market participants had expected the Federal Reserve to cut interest rates three times throughout 2024. But recent inflation and employments showed an economy that was still running hot, perhaps too hot to justify a series of rate cuts.

Wells Fargo Securities, for instance, believes that the Fed will wait until at least September to cut interest rates following the Fed's decision to hold rates unchanged after its meeting that ended June 12.

Read more: Check out the best CDs

Still, the Fed is in line to cut rates, albeit slightly, by the end of the year.

"If inflation continues to moderate, as has been the trend over the last year and a half, the Fed will start to cut interest rates in the second half of 2024," said Bill Adams, chief economist for Comerica Bank. 

Higher rates, in the meantime, are a boon for savers who have finally been able to earn a reasonable yield on their cash.

Take Ally as an example. Today you'll earn 4.20% on its flagship savings account, compared to 0.87% when inflation was below the Fed's 2% target.

What is a high-yield savings account?

The term “high-yield” is more descriptive than technical; it’s a regular savings account that pays a high interest rate on savings account deposits. The rate is subject to change depending on the overall financial market and the business needs of the bank or credit union. 

A savings account is a safe place for you to keep money that you don’t need every day. Holding savings in a separate account from your day-to-day cash, can make it less tempting to spend. 

Quick tip. You can open multiple savings accounts and use each for a particular goal. Pick one for your emergency fund, for instance, and another to cover your Christmas bill.

“Savings accounts are best for money you might need in the next several months or an emergency fund,” said Seth Mullikin, CFP at Lattice Financial in Charlotte.

Still, the best savings accounts tend to be those that offer the highest yields, and the best savings account options tend to be offered by online banks.

Can I take money out of my savings account?

By law, it used to be that you could only make up to six withdrawals each month, and even though the Federal Reserve relaxed Regulation D in 2020, many banks still keep this rule on their own books.  

“Most banks have limits on how many transfers can be made from the savings account each month,” said Lisa Kirchenbauer at Omega Wealth Management in Arlington. “It is not a good account for bill paying.” 

This limit on the number of withdrawals though doesn’t prevent you from liquidating the entire account in one withdrawal if you need to. A savings account can serve as a fund for a rainy day—a great way to collect some interest while preserving liquidity.

Any cash you keep in a high-yield savings account is under the same protection as your other deposit accounts. The FDIC and NCUA guarantee $250,000 worth of deposits per depositor, per bank, per ownership category.Check out this to see how much of your funds are insured.

How does a high-yield savings account work?

A high-yield account works much like a regular savings account. You open the account and then deposit and withdraw funds when you want to, within what the rules allow. The biggest difference you may see between a traditional and a high-yield account is that a larger amount of interest is earned and deposited into your account at the end of each month.

The earned interest counts as taxable income for both state and federal tax filings. If you earn more than $10 in interest, you should receive a Form 1099-INT or a Form 1099-OID from the financial institution(s) with all the information you’ll need to file. Note that whether you receive the form or not, you’re still responsible for reporting your total income—you may need to request the form or, in the worst case, do some sleuthing.

Pros and cons of a high-yield savings account

Overall, a high-yield savings account will typically provide an interest rate much higher than a traditional one while still allowing you to make withdrawals up to six times a month. However, if you’re after the highest rate of return possible, other deposit accounts and investments offer greater earning potential in exchange for more risk or less access to your funds.

PROSCONS
Higher yield than a traditional account or money market account (MMA).
Typically, it has a lower yield than a CD or share certificate.
More liquidity than a CD or share certificate.
Less liquidity than a traditional account or money market account.
Coverage from the Federal Deposit Insurance Corporation.
Less earning potential than most investments.
Yields can rise immediately.
Yields can fall at any time.

Consider what’s important to you and do some research.

It’s “best to compare rates and terms of use to get the best deal for you,” said Lisa Kirchenbauer, CFP, founder and president of Omega Wealth Management in Arlington, Va.

Keeping some funds on reserve, but easily accessible, is a smart thing to do for most Americans. 

That chunk of changes sitting on the sidelines serves many purposes. 

“Goals might include an emergency fund and travel expenses” said Kirchenbauer.

Most banks let you easily create more than one savings account if you want to keep your goals independent, i.e. a Christmas savings account in addition to a vacation fund.

Choosing the best high-yield savings account

Do you want the highest rate possible? Or is a well-recognized brand name more important? Maybe it’s worth it to select a lower rate in exchange for a better mobile app? Write down factors that are important to you to help guide you as you look around. Elements could include:

  • High yields.
  • Low balance requirements.
  • Low fees.
  • ATM access.
  • Physical branch near you.
  • Highly-rated mobile app.
  • Established brand name.
  • Automated savings tools. 
  • No monthly withdrawal limit.

Quick tip. Many savings accounts offer bonuses to new customers once you meet a given requirement. Use a bonus as a tiebreaker if you're having trouble picking an account.

Prioritize those elements that are important to you, and keep in mind that you’re not limited to one high-yield savings account. You can have as many as you want, perhaps each with its own specific purpose. So if you’re stuck choosing between a couple, you could always open both and split your funds between them. 

How do I open a high-yield savings account?

You’ll need to fill out a form or two with your personal information, including your name, address and Social Security number, but it shouldn’t take too long. 

You generally need to put money into the account within 15 days to finish the process of opening it. 

Alternatives to a high-yield savings account

Depending on how often you’d like to access your funds and the amount of risk you feel compelled to take, “good” alternatives can admittedly look very different. Here are a few alternatives to high-yield accounts that are still FDIC insured, plus one that’s not.

Money market accounts (MMAs)

A hybrid daughter of checking and savings accounts, MMAs are savings accounts that allow you to access your funds with checks. They typically have higher interest rates but more restrictions than checking accounts.

Certificates of deposit (CDs)

Certificates typically offer better rates of return than high-yield savings accounts. The trade-off is that you can’t touch your deposit while it’s earning interest without facing a financial penalty. The best CDs, however, can be worth it given their high rates.

Bonds

Bonds are when a government or corporation issues an IOU and pays you for your trouble. By purchasing a bond, you’re essentially giving a loan and you receive an interest payment twice a year until the bond matures. 

They aren’t insured by the FDIC and aren’t as liquid as savings, but bonds are considered one of the safest types of investments and can provide a tax advantage. As an important part of your diversified long-term portfolio, they’re vital, but shouldn't be used for money you may need soon.

Curious? Read about different government bonds and see current I Bond rates.

Checking accounts

Checking accounts are more of a compliment to high-yield savings than an alternative. They function as a type of financial home base to which most of your income is deposited and from which you can pay bills, split funds and buy investments. 

While you could keep your savings in a checking account, it doesn’t make much sense to. 

Frequently asked questions (FAQs)

Yes, there’s nothing to stop you from having multiple savings accounts. You can have as many as you can keep track of and fund.

Yes. The Internal Revenue Service (IRS) sees any interest earned that’s over $10 on any type of deposit account as taxable income. Your bank should send you a form 1099-INT each year, reporting the amount of cash your funds earned. But, even if the bank doesn’t, you’re still responsible for reporting any interest as income.

It can be more convenient to get a high-yield savings account online, plus, online-only banks typically offer better rates because they want to attract customers and they don’t have to pay for physical branches. However, there isn’t an ironclad rule. It’s not necessarily better to get an account online if you value in-person banking.

Rates can change at any time based on market conditions or the business needs of the financial institutions providing the accounts. You can expect a change after each Federal Reserve meeting, which occurs eight times a year. 

The best high-yield accounts are often from online-only banks. Without the overhead of managing brick-and-mortar branches, online banks can offer higher rates. In the most recent World Retail Banking Report, 80% of customers valued websites as a vital part of banking and 77% considered apps critical while only 75% valued branches.

The amount you’d earn would depend on the yield you receive, the length of time you earned that yield and whether or not you dipped into the principal at any time. For example, you’d earn nearly $50 if you put $10,000 into a savings account with a 5% yield for 24 months.

Editor's note: This article contains updated information from previously published stories:

Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.

Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.

Jenn Jones

BLUEPRINT

Jenn Jones is the deputy editor for banking at ӣƵ Blueprint. She brings years of writing and analytical skills to bear, as she was previously a senior writer at LendingTree, a finance manager at World Car dealerships and an editor at Standard & Poor’s Capital IQ. Her work has been featured on MSN, F&I Magazine and Automotive News. She holds a B.S. in commerce from the University of Virginia.

Taylor Tepper

BLUEPRINT

Taylor Tepper is the lead banking editor for ӣƵ Blueprint. Prior to that he was a senior writer at Forbes Advisor, Wirecutter, Bankrate and Money Magazine. He has also been published in the New York Times, NPR, Bloomberg and the Tampa Bay Times. His work has been recognized by his peers, winning a Loeb, Deadline Club and SABEW award. He has completed the education requirement from the University of Texas to qualify for a Certified Financial Planner certification, and earned a M.A. from the Craig Newmark Graduate School of Journalism at the City University of New York where he focused on business reporting and was awarded the Frederic Wiegold Prize for Business Journalism. He earned his undergraduate degree from New York University, and married his college sweetheart with whom he raises three kids in Dripping Springs, TX.