A high-yield savings account charges little or no fees and allows consumers to build their savings by earning interest each month while still maintaining access to their money. We’ve reviewed more than 60 of the best high-interest savings accounts and narrowed it down to the 12 accounts with the best interest rates.
Online Savings Account Best Interest Rates Comparison
| Northfield Bank | ||
| Salem Five Direct | ||
| Bank5 Connect | ||
| Citizens Access | ||
| Popular Direct | ||
| CIBC Bank USA | ||
| PurePoint Financial | ||
| Synchrony Bank | ||
| Marcus by Goldman Sachs | ||
| American Express National Bank | ||
| Ally Bank | ||
| Digital Federal Credit Union |
Updated September 2018
How We Evaluated the Best High-yield Savings Accounts
High-yield savings accounts are offered by many banks and online providers. These accounts offer some of the best interest rates available, Federal Deposit Insurance Corporation (FDIC) protection up to $250,000 and no monthly fees if you maintain minimum balance requirements. In addition to high-yield savings, many providers offer CDs or money market alternatives that can be preferable.
We evaluated high-yield savings accounts on several factors, including:
- Interest rates: High-yield savings accounts offer some of the best interest rates available
- Minimum deposits: How much is required to open an account
- Minimum account balance: The amount you’re required to keep in an account to earn the advertised annual percentage yield (APY)
- Fees: The costs for maintaining a high-yield savings account or transferring money
- Introductory offer: Higher interest rates or sign-up bonuses offered to new customers
- Additional account features & products: Other benefits included in high-interest savings accounts including free online checking accounts, debit cards or cashier’s checks
- Accessibility: How easy it is to open or access an account and whether any qualification requirements may restrict eligibility
While many high-yield savings accounts charge little or no fees, some providers require that account holders maintain certain minimum monthly balances in order to avoid charges. When comparing providers, it’s important to consider fees because they can quickly lower your yield on a high-yield savings account.
After comparing more than sixty banks and credit unions that offer high-interest savings accounts online with the best interest rates, our recommended high-yield savings account provider is Northfield Bank. Northfield currently offers one of the best interest rates among high-yield savings account providers and makes it easy to set up an account online with as little as $0.01.
Northfield Bank: 2.25% APY — $2,500 Minimum Deposit
Northfield Bank is a 130-year old bank with locations in New York and New Jersey and over $4 billion in assets. In addition to checking accounts, money market, CDs, business banking and wealth management services, Northfield offers the best interest rates currently available for online savings.
Northfield Bank Rates & Costs
Northfield Bank Online Platinum Savings offers the following interest rates and costs:
- Interest rate: 2.25% up to $100,000 and 0.90% thereafter
- Minimum initial deposit: $2,500 to avoid the $8 monthly account maintenance fee
- Minimum balance: $2,500 to avoid monthly $8 monthly account fee
Northfield Bank Fees
Northfield Bank charges fees including:
- Monthly fee: None if you maintain a $2,500 minimum balance; otherwise $8 per month
- ATM withdrawal fee: $1 for nonbank ATMs
- Domestic incoming wire fee: $15
- Foreign incoming wire fee: $20
- Domestic outgoing wire fee: $25
- Foreign outgoing wire fee: $40
- Paper statement fee: $5
Northfield Bank Additional Features & Product Offerings
Northfield Bank offers a wide selection of personal and business banking services in addition to high-interest savings. It also offers wealth management and loan services. High-yield savings customers have access to bank branches in New York and New Jersey plus free online and mobile banking. You can also set up a free checking account.
What Northfield Bank Is Missing
Northfield Bank pays the best interest rates available for high-yield savings accounts. Accounts can be accessed from anywhere online, but the bank only has branches in the New York-New Jersey area and only pays attractive interest rates on the first $100,000 in an account. Customers also have to keep $2,500 in their account to avoid monthly maintenance fees.
Northfield Bank Customer Reviews
Northfield Bank has great product reviews and ratings indicate the bank is financially healthy. However, Northfield Bank customer reviews only are mixed. There are a number of customer complaints, particularly about poor account accessibility through its website and some individual incidents of poor customer service.
How to Open an Account with Northfield Bank
To open a high-yield savings account at Northfield Bank, start by visiting its website. Northfield makes it easy to open and fund an account online. The account application only takes 10 to 15 minutes to complete, and you can fund your account online as part of your application process. It may take 1 to 2 days for funds to hit your account, and you can you start earning 2.25 percent on your savings right away.
Salem Five Direct: 2.05% APY — $100 Minimum Deposit
Salem Five Direct is a medium-sized regional bank with more than $4 billion in assets. In addition, checking accounts and high-yield CDs, Salem Five eOne Savings is one of the best high-yield savings accounts and offers the best interest rates of 2.05 percent with a minimum deposit of just $100.
Salem Five Direct Rates & Costs
Salem Five Direct offers the following high-yield savings interest rates and costs:
- Interest rate: 2.05% up to $1 million; 0.05% thereafter
- Minimum initial deposit: $100
- Minimum balance: None
Salem Five Direct Fees
Salem Five Direct fees include:
- Monthly fee: None
- ATM withdrawal fee: $2 for nonbank ATMs
- Domestic incoming wire fee: $15
- Foreign incoming wire fee: $15
- Domestic outgoing wire fee: $20
- Foreign outgoing wire fee: $40
- Paper statement fee: $5
Salem Five Direct Additional Features & Product Offerings
Salem Five Direct offers free checking accounts and CDs that have some of the best interest rates available, in addition to their online savings accounts. Customers of Salem Five also get free access to online and mobile banking, mobile deposits and text alerts.
What Salem Five Direct Is Missing
Salem Five has one of the best high-yield savings accounts and some of the best interest rates available, but it’s also a relatively small regional bank. The bank has just more than 30 branches in the Boston region, making it difficult for customers who live outside the area to get in-person help. However, customers can still access their account online from anywhere.
Salem Five Direct Customer Reviews
Salem Five customer reviews online are mixed. The bank is rated A by the Better Business Bureau and widely regarded as a healthy, established bank, but they also have some customer complaints. Most complaints are related to the bank’s lending products, but there have also been some complaints about customer interest rates being cut unexpectedly.
How to Open an Account with Salem Five Direct
It’s very easy to open and fund an account online with Salem Five Direct through its website. You can complete an account application online in 5 to 10 minutes. Once your account is approved, you can fund it online in 1 to 2 business days and start earning 2.05 percent in your high-yield savings account.
Bank5 Connect: 2.05% APY — $100 Minimum Deposit
Bank5 Connect is an online division of a 160-year-old Massachusetts-based bank. In addition to checking accounts and CDs, Bank5 offers high-yield savings accounts that pay some of the best interest rates available. Unlike other providers, Bank5 does not limit account balances to earn 2.05 percent, making it a terrific provider for balances that exceed Northfield’s $100,000 limit.
Bank5 Connect Rates & Costs
Bank5 Connect has the following rates and costs:
- Interest rate: 2.05% unlimited on all balances over $100
- Minimum deposit: $100
- Minimum balance: $100 to earn the advertised APY
Bank5 Connect Fees
Bank5 Connect high-yield savings has fees including:
- Monthly fee: None
- ATM withdrawal fee: No fee for non-bank ATMs
- Domestic incoming wire fee: None
- Foreign incoming wire fee: None
- Domestic outgoing wire fee: $10 – $25 depending on speed of transfer and recipient institution
- Foreign outgoing wire fee: $25+
- Paper statement fee: $1
Bank5 Connect Additional Features & Product Offerings
Bank5 high-yield savings account holders can also open a free checking account or purchase CDs online.
What Bank5 Connect Is Missing
Bank5 Connect is a great provider of high-yield savings that have no limit on account balances to earn 2.05 percent APY. However, the bank doesn’t have any physical branches where customers can get in-person help. There also aren’t very many additional features for savings accounts, and the bank only offers a few types of accounts including checking, savings and CDs.
Bank5 Connect Customer Reviews
Online customer reviews of Bank5 are mostly positive. A few customers have noted that customer service isn’t available 24/7, nor does the bank provide loans or credit cards. There have also been a few complaints about customers having trouble accessing accounts online, but this seems to be a rare problem.
How to Open an Account with Bank5 Connect
As an online bank, Bank5 Connect makes it pretty easy to open a high-yield savings account online directly through its website. You can complete your account application in about 20 to 30 minutes and fund your account as part of your application process. Once your account is approved and funds hit your account, you can start earning 2.05 percent on unlimited deposits immediately.
Citizens Access: 2.00% APY — $5,000 Minimum Deposit
Citizens Access is an online subsidiary of Citizens Bank that’s focused exclusively on high-yield savings accounts and CDs. Citizens Bank is headquartered in Rhode Island but has branches across the United States. Their subsidiary, Citizens Access, pays 2.00 percent, which is one of the best high-yield savings accounts for people who maintain balances of more than $5,000.
Citizens Access Rates & Costs
Citizens Access has rates and costs including:
- Interest rate: 2.00%
- Minimum deposit: $5,000
- Minimum balance: $5,000 to earn the advertised APY
Citizens Access Fees
Citizen Access charges high-yield savings fees including:
- Monthly fee: None
- ATM withdrawal fee: Not applicable; the bank doesn’t offer ATM cards
- Domestic incoming wire fee: None
- Foreign incoming wire fee: None
- Domestic outgoing wire fee: None – the bank only does outgoing ACHs
- Foreign outgoing wire fee: Not applicable
- Paper statement fee: Not applicable; the bank doesn’t offer paper statements
Citizens Access Additional Features & Product Offerings
Citizens Access high-yield savings customers get access to free online and mobile banking, remote check deposit and additional free banking services.
What Citizens Access Is Missing
Citizens Access pays some of the best interest rates available. However, to qualify account holders must maintain a balance of $5,000 or more. Citizens Access also only offers high-yield savings accounts and CDs. They don’t offer a checking account online, and additional features are minimal for high-yield savings accounts.
Citizens Access Customer Reviews
Citizens Access has excellent customer reviews online. Customers like the high-interest rate and find the bank easy to work with. Customers also don’t seem to have a problem using the parent company for additional banking services.
How to Open an Account with Citizens Access
As an online provider, Citizens Access makes it extremely easy to set up a high-yield savings account online through their website to start earning 2.00 percent on your savings. You can complete your application and open an account in just five minutes, fund your account online and start earning some of the best interest rates available.
Popular Direct: 2.00% APY — $5,000 Minimum Deposit
Popular Direct is a subsidiary of a New York-chartered bank that has been around more than 120 years. Popular Direct offers online savings tools including CDs and high-yield savings accounts that pay some of the best interest rates available. While it takes $5,000 to open an account with Popular, you can still earn 2.00 percent if your balance falls as low as $500.
Popular Direct Rates & Costs
Popular Direct rates and costs include:
- Interest rate: 2.00% promotional rate for the first 12 months, then rates reset to market rates
- Minimum deposit: $5,000
- Minimum balance: $500
Popular Direct Fees
Popular Direct fees for high-yield savings fees include:
- Monthly fee: None if balance is at least $500; otherwise $4 per month
- ATM withdrawal fee: Not applicable
- Domestic incoming wire fee: None
- Foreign incoming wire fee: None
- Domestic outgoing wire fee: None; the bank only does outgoing ACHs
- Foreign outgoing wire fee: Not applicable
- Paper statement fee: $5 if under 60 days; otherwise $10
Popular Direct Additional Features & Product Offerings
Popular Direct high-yield savings customers have access to free online and mobile banking and can also purchase CDs online.
What Popular Direct Is Missing
Popular Direct is a great provider of high-yield savings products online. However, it takes $5,000 to open an account at Popular and customers are charged monthly maintenance fees if their balance falls below $500. Popular also puts a 60-day freeze on all withdrawals from new accounts. Lastly, Popular doesn’t provide loans or free checking accounts.
Popular Direct Customer Reviews
Popular is an easy-to-use online provider of high-yield savings products and offers some of the best interest rates available. However, customer reviews online are mixed. The most frequent complaint among Popular Direct customers is about the freezing of new account withdrawals.
How to Open an Account with Popular Direct
If you have $5,000 to open an account, it’s easy to apply online through the Popular Direct website. The application process only takes about 20 minutes, and you can fund your new account online as part of the application process. Once funds hit your account, you can start earning unlimited 2.00 percent interest immediately.
CIBC Bank USA: 1.90% APY — $1,000 Minimum Deposit
CIBC Bank USA is an online subsidiary of the Canadian Imperial Bank of Commerce, which is a Canadian bank that’s more than 150 years old and provides banking services to clients all across North America. CIBC’s Agility Savings Account is a free high-yield savings account that requires a minimum deposit of $1,000 and pays 1.90 percent APY.
CIBC Bank USA Rates & Costs
CIBC Bank USA has the following rates and costs:
- Interest rate: 1.90%
- Minimum deposit: $1,000
- Minimum balance: None
CIBC Bank USA Fees
CIBC Bank high-yield savings fees include:
- Monthly fee: None
- ATM withdrawal fee: $3 plus 2.5% administration fee
- Domestic incoming wire fee: $15
- Foreign incoming wire fee: $15
- Domestic outgoing wire fee: $30 to $80 depending on size of payment
- Foreign outgoing wire fee: $30 to $80 depending on size of payment
- Paper statement fee: $5
CIBC charges outgoing wire transfer fees that range from $30 to $80 depending on the size of the payment. There is a fee of $30 for wire transfers of $10,000 or less. The fee for transfers between $10,001 and $50,000 is $50, and the fee is $80 for outgoing wire transfers of more than $50,000.
CIBC Bank USA Additional Features & Product Offerings
CIBC high-yield savings customers can access their account through mobile banking. In addition, CIBC customers have access to a full lineup of personal and business banking products and wealth management services.
What CIBC Bank USA Is Missing
CIBC is an old and established Canadian bank that pays some of the best interest rates available for high-yield savings accounts online. However, while the bank can be used in all states, there aren’t many U.S. locations where customers can get in-person help. CIBC only has banking centers in four Midwestern states and ATMs in three states.
CIBC Bank USA Customer Reviews
CIBC Bank USA offers some of the best interest rates for accounts of more than $1,000 and is a five-star rated bank for bank health. Customer reviews of the bank, however, are very negative. CIBC has an F rating from the BBB and many customer complaints online, particularly about customer service. Delays by the bank are also a frequent source of complaints and can be difficult to resolve.
How to Open an Account with CIBC Bank USA
Setting up an account online with CIBC Bank USA is quick and easy. You can establish an account directly through CIBC’s website as quickly as 5 minutes. Once your account is opened, you can fund it online with as little as $1,000. Once funds hit your account in a day or two, you can start earning 1.90 percent on your savings.
PurePoint Financial: 1.90% APY — $10,000 Minimum Deposit
PurePoint Financial is an online subsidiary of Mitsubishi UFJ Financial Group, which has more than $2.5 trillion in assets and is one of the world’s largest financial groups. PurePoint focuses on online savings accounts and CDs and pays 1.90 percent if you maintain a balance of $10,000 or more, which is one of the best interest rates available.
PurePoint Financial Rates & Costs
PurePoint Financial rates and costs include:
- Interest rate: 1.90%
- Minimum deposit: $10,000 to earn the promotional interest rate
- Minimum balance: $10,000 to earn the promotional interest rate
PurePoint Financial Fees
PurePoint Financial charges fees including:
- Monthly fee: None
- ATM withdrawal fee: Not applicable; the bank does not offer ATM cards
- Domestic incoming wire fee: $25
- Foreign incoming wire fee: $25
- Domestic outgoing wire fee: $25
- Foreign outgoing wire fee: $25
- Paper statement fee: None
PurePoint Financial Additional Features & Product Offerings
PurePoint Financial customers get free access to online and mobile banking plus bank transfers, mobile deposit and wire transfers.
What PurePoint Financial Is Missing
PurePoint is a subsidiary of one of the world’s largest and most established financial groups. However, it only has offices in four states and offers a limited selection of products including savings accounts and CDs.
PurePoint Financial Customer Reviews
PurePoint Financial customer reviews online are mostly positive. Clients report that PurePoint’s website and mobile banking are easy to use and that they get quick responses to inquiries. There have been some complaints about poor customer service or clients having trouble resolving problems, but these seem like fairly rare occurrences.
How to Open an Account with PurePoint Financial
If you have $10,000 to deposit, you can open a high-yield savings account with PurePoint Financial through its website. The application process takes 15 to 20 minutes, and you can fund your account line once your account is approved. It may take 1 to 2 days for funds to hit your account, after which you can start earning 1.90 percent immediately.
Synchrony Bank: 1.85% APY — No Minimum Deposit
Synchrony Bank is an online-only provider of savings products including high-yield savings accounts, CDs and money market. Synchrony pays 1.85 percent, which is among the best interest rates available for high-yield savings accounts with no minimum deposit or minimum balance.
Synchrony Bank Rates & Costs
Synchrony Bank has rates and costs including:
- Interest rate: 1.85%
- Minimum deposit: None
- Minimum balance: None
Synchrony Bank Fees
Synchrony Bank fees include:
- Monthly fee: None
- ATM withdrawal fee: None
- Domestic incoming wire fee: None
- Foreign incoming wire fee: None
- Domestic outgoing wire fee: $25
- Foreign outgoing wire fee: $25
- Paper statement fee: None
Synchrony Bank Additional Features & Product Offerings
Synchrony doesn’t charge for excessive transactions in high-yield savings accounts online. Account holders can also buy CDs, open money markets or get an ATM card to access their Synchrony account.
What Synchrony Bank Is Missing
Synchrony is one of the best online providers of high-yield savings accounts, but customers only get six transactions in their account each month. The bank doesn’t charge a fee if you exceed six transactions but reserves the right to close your account if they suspect it’s being misused. Customers also can’t get a checking account through Synchrony. The bank’s selection of products is also limited, only offering savings, CDs and money market accounts.
Synchrony Bank Customer Reviews
Synchrony Bank has very positive customer reviews online. Customer complaints are very rare, especially about the bank’s online high-yield savings products. Synchrony is generally very well-regarded and considered one of the best high-yield savings account providers available.
How to Open an Account with Synchrony Bank
As an online provider, Synchrony Bank makes it extremely easy to open a free account through its website. The application process only takes 10 to 15 minutes and allows applicants to choose the option for a free ATM card to access their account. You can also fund your account online as part of the application process, although it can take 1 to 2 days for funds to hit your account.
Marcus by Goldman Sachs: 1.80% APY — No Minimum Deposit
Marcus is the retail banking arm of Goldman Sachs, which has nearly a trillion dollars in assets and is one of the largest and most established investment banks in the world. Marcus customers have access to free online savings accounts that pay 1.80 percent as well as personal loans if you qualify.
Marcus Rates & Costs
Marcus high-yield savings accounts have rates and fees including:
- Interest rate: 1.80%
- Minimum deposit: None
- Minimum balance: None
Marcus Fees
Marcus high-yield savings fees include:
- Monthly fee: None
- ATM withdrawal fee: Not applicable; Marcus does not offer ATM cards
- Domestic incoming wire fee: None
- Foreign incoming wire fee: None
- Domestic outgoing wire fee: None
- Foreign outgoing wire fee: None
- Paper statement fee: None
Marcus Additional Features & Product Offerings
Marcus offers one of the best interest rates available for high-yield savings accounts with no account minimums. It also offers clients a great selection of personal loans for customers who want to consolidate debt or do a home addition.
What Marcus Is Missing
Marcus is a great provider of online savings products from one of the world’s largest financial institutions. However, Marcus does not offer checking accounts. The bank also has no branch offices where customers can get in-person help.
Marcus Customer Reviews
Marcus has great reviews for their online savings account product. There have been a few complaints about customer service, but most of the complaints are focused on CDs or loan products. However, most customer reviews are very positive.
How to Open an Account with Marcus
Marcus offers one of the easiest high-yield online savings accounts to open online. Through its website, you can open an account in just 5 to 10 minutes. There’s no minimum deposit, but you can fund your account online. It takes 1 to 2 days for funds to hit your account and, after which you can start earning 1.80 percent.
American Express National Bank: 1.75% APY — No Minimum Deposit
American Express National Bank is an online retail banking subsidiary of American Express — one of the largest credit card companies in the world. American Express offers CDs and credit cards in addition to one of the best high-yield savings accounts available. There are no account minimums, and account holders earn 1.75 percent on savings.
American Express National Bank Rates & Costs
American Express National Bank has rates and costs including:
- Interest rate: 1.75%
- Minimum deposit: None
- Minimum balance: None
American Express National Bank Fees
American Express National Bank charges fees including:
- Monthly fee: None
- ATM withdrawal fee: Not applicable; American Express does not offer ATM cards
- Domestic incoming wire fee: None
- Foreign incoming wire fee: None
- Domestic outgoing wire fee: None
- Foreign outgoing wire fee: None
- Paper statement fee: None
American Express National Bank Additional Features & Product Offerings
American Express is the biggest credit card company in the world. In addition to free high-yield savings accounts, customers can apply for numerous business and personal credit cards and other products. Bank customers can also link up to three bank accounts to transfer money easily between accounts.
What American Express National Bank Is Missing
American Express is a great provider of high-yield savings accounts and has no account minimums, but it doesn’t offer individual checking accounts.
American Express National Bank Customer Reviews
American Express National Bank customer reviews are some of the best for high-yield savings accounts online. Customers reportedly love that the bank pays some of the interest rates available and also find customer service to be very reliable and the website very accessible.
How to Open an Account with American Express National Bank
American Express National Bank makes it easy to set up a free high-yield savings account through its website. The application only takes 15 to 20 minutes to complete and, once approved, you can fund your account online. You can also apply for a credit card online through American Express’s website if you choose.
Visit American Express National Bank
Ally Bank: 1.80% APY — No Minimum Deposit
Ally Bank is another high-yield savings account providers that’s generally regarded as one of the best online banks with more than $75 billion in customer deposits. The bank has more than 250,000 customer accounts and, with no account minimums or monthly fees, is a great provider of free online savings products that pay 1.80 percent APY.
Ally Bank Rates & Costs
Ally Bank offers rates and costs including:
- Interest rate: 1.80%
- Minimum deposit: None
- Minimum balance: None
Ally Bank Fees
Ally Bank high-yield savings fees include:
- Monthly fee: None
- ATM withdrawal fee: None
- Domestic incoming wire fee: None
- Foreign incoming wire fee: None
- Domestic outgoing wire fee: $20
- Foreign outgoing wire fee: Not applicable; Ally does not issue international wire transfers
- Paper statement fee: None
Ally Bank Additional Features & Product Offerings
Ally Bank high-yield savings customers get access to remote deposit. Customers also get unlimited deposits and aren’t charged any fees for incoming wire transfers.
What Ally Bank Is Missing
Ally is a great high-yield savings account providers. While it offers unlimited deposits, customers are limited to six third-party transactions per month and are charged $10 for each transaction after the first six.
Ally Bank Customer Reviews
Ally Bank customer reviews for their high-yield savings products are excellent. Ally is an online-only provider and has structured customer service to suit customer needs. According to online reviews, Ally is one of the most trusted online banking providers.
How to Open an Account with Ally Bank
Like many free online savings account providers, Ally Bank makes it very easy to set up an account through its website. Opening an account only takes 10 to 15 minutes, and you can make a deposit as part of your application process. It may take a day or two or funds to hit your account, after which then you can start earning 1.80 percent on your savings.
Digital Federal Credit Union: 5.12% APY — $5 Minimum Deposit
Digital Federal Credit Union is headquartered in the Boston areas and has branches in Massachusetts and New Hampshire, although accounts can be accessed online from anywhere. Digital is a credit union with restricted qualifications for membership but offers an incredible 5.12 percent on balances up to $1,000 — the best interest rates available for high-yield savings accounts.
Digital Federal Credit Union Rates & Costs
Digital Federal Credit Union rates and costs include:
- Interest rate: 5.12% on the first $1,000 and 0.25% thereafter
- Minimum deposit: $5
- Minimum balance: $5
Digital Federal Credit Union Fees
Digital Federal fees include:
- Monthly fee: None
- ATM withdrawal fee: 75 cents; free with Plus or Relationship Benefits
- Domestic incoming wire fee: None
- Foreign incoming wire fee: None
- Domestic outgoing wire fee: $15
- Foreign outgoing wire fee: $40 if sent in foreign currency; otherwise $50
- Paper statement fee: $1 per page
Digital Federal Credit Union Additional Features & Product Offerings
All members of Digital Federal Credit Union get a free high-yield savings account at sign-up. Customers also get free access to online and mobile banking as well as nationwide ATM access. Digital Federal customers can also get free checking accounts or health savings accounts (HSAs).
What Digital Federal Credit Union Is Missing
Digital Federal Credit Union is a great credit union that offers far-and-away the best interest rates for accounts less than $1,000. However, the credit union has strict membership eligibility criteria limited to people who live or work in certain communities, belong to certain organizations or work at select companies.
Digital Federal Credit Union Customer Reviews
Customer reviews of Digital Federal Credit Union online are mixed. Some customers prefer credit unions to traditional banks, but others dislike the restricted membership eligibility. Customers also like that Digital Federal pays the best interest rates for accounts less than $1,000 but don’t like that interest rates are far lower for higher balances.
How to Open an Account with Digital Federal Credit Union
Applying for membership with Digital Federal Credit Union online is easy. Applying for membership only takes 15 to 20 minutes and, once you’re approved, a high-yield savings account will be opened for you automatically. Once you’re approved for membership, you can fund your account online and start earning 5.12 percent interest on up to $1,000 in savings.
Visit Digital Federal Credit Union
Alternatives to Personal High-yield Savings Accounts
High-yield savings accounts aren’t right for everyone. Savings rates typically change every month or two or as prime rate changes and some customers prefer to lock in their interest rate for a set period of time. Others need to access their funds more than six times per month and may want to consider a money market account in lieu of the options in this list.
Some high-yield savings alternatives include:
Customers Bank
Customers Bank is a community bank based in Pennsylvania with more than $11 billion in assets. The bank offers a full line of personal and business banking services including savings and checking accounts, mortgages, CDs, credit cards and commercial loans. The bank also pays 2.25 percent, which is among the best interest rates available for a money market account.
In order to use a Customers Bank money market account, customers must deposit at least $25,000 into their account. However, there’s no monthly fee for the account and aren’t limited in their number of transactions each month, making a Customers Bank money market account a great alternative to high-yield savings accounts.
MySavingsDirect
MySavingsDirect is an online division of Emigrant Bank, which was founded in 1850 and is the oldest savings bank in New York. Emigrant is also one of the ten largest privately owned banks in the U.S. In addition to a full menu of banking services from Emigrant, MySavingsDirect customers can earn 2.15 percent APY in 6-month CDs.
Certificates of deposit can be an ideal alternative to high-yield savings accounts because it allows account holders to earn predetermined interest rates for a set period of time. Interest rates for CDs are frequently higher than those of high-yield savings but require investors to lock in their money for the duration of a CD or pay penalties for early withdrawals. For more CD alternatives, be sure to check out our list of the Best CD Rates.
Capital One Spark Savings for Small Businesses
Capital One Spark Savings offers some of the best interest rates for online business savings accounts. Capital One, which is headquartered in Virginia, is the 11th largest bank in the country. Through Spark Savings, business owners can earn 1.75 percent for the first 12 months, which is a great high-yield savings tool for small business owners.
Capital One Spark Savings is a business account, unlike the accounts included on this list. Capital One also offers free business checking accounts along with access to a nationwide network of ATMs, in addition to earning some of the best interest rates available to businesses for high-yield savings.
The Bottom Line
A high-yield savings account is a great tool for consumers to start earning interest on savings while maintaining quick access to funds. We reviewed dozens of high-yield savings accounts and have narrowed it down to a list of those with low costs and some of the best interest rates available.
If you’re a small business owner looking to invest business savings in an interest-bearing account, we highly recommend Capital One Spark Savings. Capital One offers some of the best interest rates available to businesses with high-yield savings and pays 1.75 percent for the first 12 months.
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