5 High-Interest Savings Accounts to Check Out in 2024
KEY POINTS
- LendingClub is offering a sky-high APY of 5.00%.
- On top of a generous APY, SoFi Checking and Savings (member FDIC) has a welcome bonus of up to $300¹ -- but only for a limited time.
- None of the savings accounts on our list charge a monthly fee.
The average savings account earns a measly 0.46%, as of Feb. 20, 2024. That means if you stashed away $1,000, you'd earn just $4.60 after a year.
Fortunately, you don't have to settle for average. There are plenty of banks that pay nearly 10 times the national average savings account annual percentage yield (APY). Online banks tend to be a good place to look because they have lower overhead costs than their brick-and-mortar counterparts, so they can afford to pay higher rates. Here are five picks for high-interest savings accounts to consider if you want to maximize the power of compounding in 2024.
1. SoFi Checking and Savings
Annual percentage yield: up to 4.60%²
As the name suggests, the SoFi Checking and Savings gives you both a checking and savings account. (SoFi® doesn't currently let you open a standalone checking or savings account.) Both accounts pay way more than the national average APYs, though.
Our Picks for the Best High-Yield Savings Accounts of 2024
American Express® High Yield Savings
APY
4.25%
Rate info
4.25% annual percentage yield as of July 23, 2024
Min. to earn
$1
Open Account for American Express® High Yield Savings
On American Express's Secure Website. |
APY
4.25%
Rate info
4.25% annual percentage yield as of July 23, 2024
|
Min. to earn
$1
|
UFB Secure Savings Account
APY
5.25%
Rate info
To ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.
Min. to earn
$0
Open Account for UFB Secure Savings Account
On UFB's Secure Website. |
APY
5.25%
Rate info
To ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts.
|
Min. to earn
$0
|
Western Alliance Bank High-Yield Savings Premier
APY
5.31%
Rate info
5.31% annual percentage yield (APY) is accurate as of 7/11/2024 and subject to change at the Bank’s discretion. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
Min. to earn
$500 to open, $0.01 for max APY
Open Account for Western Alliance Bank High-Yield Savings Premier
On Western Alliance Bank's Secure Website. |
APY
5.31%
Rate info
5.31% annual percentage yield (APY) is accurate as of 7/11/2024 and subject to change at the Bank’s discretion. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
|
Min. to earn
$500 to open, $0.01 for max APY
|
You won't have branch access, but there are some sweet perks beyond the high APYs: You can earn a bank welcome bonus of up to $300 through Dec. 31, 2024, plus there are no account fees.³
Read our full SoFi Checking and Savings review.
2. LendingClub High-Yield Savings
APY: 5.00%
The LendingClub High-Yield Savings account has one of the most competitive APYs out there -- more than 10x the national average. You'll need to pay a $100 minimum deposit to open a savings account at this online-only bank. But after that, there are no balance requirements or monthly fees. The account also comes with an ATM card, which many banks don't offer for savings accounts.
Read our full LendingClub High-Yield Savings review.
3. Discover® Online Savings
APY: 4.25%
Discover® Online Savings is another savings account that offers a generous APY, on top of a welcome bonus. The requirements to earn the bonus are fairly high: Within the first 30 days, you need to deposit $15,000 to earn $150, or $25,000 to earn $250 -- but it's pretty rare to earn welcome bonuses when you open a savings account, so it's worth checking out. There's no monthly fee or minimum deposit.
Read our full Discover® Online Savings review.
4. Ally Savings
APY: 4.25%
Ally Savings is another bank that offers a high APY to online savers. As is common in the world of digital banking, the high-interest savings account doesn't have monthly maintenance fees or minimum balances.
One neat feature of the account: It lets you organize your savings into buckets, so that it's easier to keep track of your progress on multiple savings goals without maintaining several accounts. For example, you could separate your emergency savings, your vacation fund, and money you're setting aside for gifts into different buckets.
Read our full Ally Savings review.
5. Synchrony Bank High Yield Savings
APY: 4.75%
The Synchrony Bank High Yield Savings account's high APY stands out even among our picks for the top high-yield savings accounts. Plus, the account has no minimum balance, no minimum initial deposit, and no monthly fees. You also get an ATM card, which is a nice-to-have feature on a savings account.
Read our full Synchrony Bank High Yield Savings review.
Should you pick the savings account with the highest APY?
Not necessarily. APY is certainly one of the more important factors to weigh when you're choosing a savings account, but it's not the only thing that matters. Also consider:
- Will you pay a monthly fee? Some savings accounts charge monthly fees, which can eat up a significant part of the interest you earn, particularly if you maintain a small balance.
- Is there a minimum balance to earn APY? You'll see some banks advertise a high APY, but in the fine print, it states that you'll need to deposit a significant chunk of change to earn that APY.
- Are you OK doing your banking online? If you frequently visit your local bank branch and prefer face-to-face interaction, it may be worth accepting a lower APY.
- Are customers generally satisfied? If a bank has an excessive number of negative customer reviews, look elsewhere -- even if it has a highly competitive APY.
Shop around for a bank with a competitive APY so that your money can start earning money. But make sure the account is one where you'll be happy storing your savings for the long haul.
These savings accounts are FDIC insured and could earn you 14x your bank
Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 14x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.
Our Research Expert
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
SoFi disclosure:
¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus when they set up Direct Deposit of at least $1,000 during the Direct Deposit Bonus Period. Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/24. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.
SoFi members with Direct Deposit can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.60% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
² SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
³ Our account fee policy is subject to change at any time.
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