Best Online Savings Accounts of February 2024

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A high-yield savings account is similar to a traditional savings account in that it bears interest. They also both offer a variable interest rate, which can change over time. However, traditional savings accounts generally offer a much lower interest rate than high-yield savings accounts.

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Best High-Yield Savings Accounts of February 2024

We monitor rates daily to find the best high-interest savings accounts in three categories — the best rates overall, accounts that let you earn a high rate with minimal effort (like low minimum deposits and balance requirements), and high rates with popular brands. We have also included a market leader so you know the highest savings rate available throughout local financial institutions. 

Our top picks for savings accounts are federally insured by the FDIC or NCUA. Federal insurance protects up to $250,000 per depositor in the event of a bank failure.

DCU Primary Savings Account

The Digital Federal Credit Union Primary Savings Account is currently the only savings account that offers 6% APY. You can earn 6.17% APY on balances up to $1,000. If you have an account balance above $1,000, the interest rate drops to 0.15% APY. This account doesn’t charge monthly service fees.

To open the Digital Federal Credit Union Primary Savings Account, you’ll have to meet certain membership eligibility requirements. You must live in select areas of Massachusetts, live in a New Hampshire participating condominium community, work for a Select Employer Group, or belong to a local participating organization. 

Digital Federal Credit Union currently has an A+ rating from the BBB. The credit union hasn’t been involved in any recent public controversies. 

Milli Savings Account

The Milli Savings Account has a high rate and no monthly service fees. Milli is a solid option if you’re comfortable with a mobile-only banking experience and want to keep your checking and savings all in one place. Milli offers a Spending and Savings Account, plus a savings tool called Jars that helps you track money for individual goals without having to create a new savings account. This savings tool can help you structure your savings goals when you’re learning how to budget. There are no minimum balance requirements to earn interest.

Milli doesn’t have a Better Business Bureau rating yet. Its parent bank, First National Bank of Omaha, has an A+ rating.

Customer service is available Monday through Sunday from 8 a.m. to 8 p.m. CT, and only through chat or email. You can still have other banking options with more customer support availability. For example, some financial institutions offer 24/7 customer support by telephone.

Milli Bank Review

Western Alliance Bank High-Yield Savings Premier Account

The Western Alliance Bank High-Yield Savings Premier account offers 5.36% APY on the entire account balance. It has no account activity or maintenance fees. This account might be a good choice if you’re looking for an account that does not require a certain amount of money to stay in the account to earn a high interest rate.

This account does require a $500 minimum deposit when opening the account, which is pretty high when compared to many other savings accounts. Additionally, Western Alliance Bank (Member FDIC) is primarily a business bank and doesn’t offer many other personal banking services. If you don’t have $500 to open the account, or if you’d prefer to do all your banking in one place, this might not be the account for you.

Western Alliance Bank does not currently have a rating from the BBB. It has not had any recent controversies.

Western Alliance Bank High-Yield Savings Premier Review

BrioDirect High-Yield Savings Account

The BrioDirect High-Yield Savings Account offers a competitive rate of 5.35% APY and doesn’t charge monthly maintenance fees. You also might like BrioDirect if you’re looking for a 1-year CD that pays more than the national average. 

You might consider another bank if you’d like to open a high-yield savings account with a low minimum opening deposit. The BrioDirect High-Yield Savings Account requires $5,000 to open an account. 

The BBB also gave BrioDirect’s parent company, Webster Bank, a B- rating because it received numerous customer complaints and hasn’t resolved one of the complaints.

Webster Bank has also been involved in a recent controversy. In January 2024, Webster paid $1.4 million in a settlement over a class action lawsuit. The lawsuit was over a ransomware attack on Webster Bank that resulted in some customers of the bank having their personal information stolen.

BrioDirect Review

My Banking Direct High-Yield Savings Account

The My Banking Direct High-Yield Savings Account may be a solid option if you have at least $500 to open a savings account. The My Banking Direct High-Yield Savings Account pays 5.35% APY on balances of $1 or more. It also doesn’t charge any monthly services.

Keep in mind that a $500 minimum opening deposit is pretty steep compared to other financial institutions. You might consider one of our other top picks if you don’t have that much money to deposit upfront. 

My Banking Direct is an online bank and part of Flagstar Bank. Flagstar Bank has received an A- ranking because it hasn’t responded to one complaint. It hasn’t been involved in any recent public settlements.

Customers Bank High Yield Savings Account

The Customers Bank High Yield Savings Account is the highest-yield savings account on Raisin. Through Raisin, you can use one platform to find, fund, and manage multiple high-yield savings accounts and CDs from a variety of banks and credit unions. There are also other savings accounts and CDs available on Raisin that pay 5.00% APY or more, though.

Raisin doesn’t have checking accounts, so it’s not ideal if you want to do all your banking with the same institution. Also, you’ll need to be comfortable with a completely digital experience.

Raisin received an A- rating from the BBB because there are several complaints against the company on the BBB website.

Raisin Review

Ivy Bank High Yield Savings Account

The Ivy Bank High Yield Savings Account might be a good choice if you have at least $2,500 to open an account. You’ll also need to maintain an account balance between $2,500 and $1 million to earn 5.30% APY. Otherwise, you’ll only earn 0.05% APY on account balances under $2,500. 

Ivy Bank is an online-only division of Cambridge Savings Bank. Anyone in the United States is eligible to open an Ivy Bank account except for California residents. 

Ivy Bank hasn’t been rated yet by the Better Business Bureau. However, Cambridge Savings Bank has received an A- rating because it has failed to respond to two customer complaints. 

TAB Bank High-Yield Savings Account

The TAB Bank High-Yield Savings Account pays a high interest rate with no monthly service fees. This account also might be a good choice if you’d like to open a savings account with $0 upfront.

TAB Bank does not have an ATM network. If you’d like to withdraw money from an ATM, TAB charges a $2 ATM fee.

The BBB gave TAB Bank an A- rating because government action has been taken against the bank.

In 2022, the bank entered an Assurance of Discontinuance with the State of Iowa. According to the settlement, the State of Iowa accused TAB Bank of charging Iowa residents more than the permitted maximum APR for consumer installment loans. The bank has stopped making consumer installment loans to Iowa residents and can resume if it provides a 30-day notice to the state and follow the state code.

TAB Bank Review

Upgrade Premier Savings

Upgrade Premier Savings offers a high APY without any monthly fees. Your account is also FDIC-insured, so your money will be safe in this account. Upgrade partners with Cross River Bank to provide this service. 

However, Upgrade only offers this high of an APY if you have $1,000 or more in your account. If you don’t want to put that much money to put in an account, some of our other choices might be a better pick for you.

Upgrade has an A+ rating through the BBB. However, its partner bank, Cross River Bank, only has a C- rating due to a large number of complaints filed against the business, with some of those complaints unresolved.

In 2023, Cross River Bank entered into a consent order with the Financial Deposit Insurance Corporation. The FDIC says that Cross River Bank didn’t properly follow fair lending laws and regulations. Cross River Bank does not admit or deny these claims. 

Upgrade Review

BMO Alto Online Savings Account

The BMO Alto Online Savings Account is a good choice if you want to open a savings account with a $0 minimum opening deposit and get a competitive savings rate.

BMO Alto is an online-only division of BMO Financial Group, and it has a high-yield savings account and CDs. You won’t be able to visit BMO branches for customer support. That said, customer service is still available 24/7 by phone.

You might consider another financial institution if you prioritize mobile banking. BMO Alto doesn’t have a mobile banking app.

BMO has received an A+ grade from the Better Business Bureau. However, the bank has been involved in one recent public controversy.

In 2022, a Minnesota jury ordered the bank to pay $564 million in damages in a lawsuit involving a Ponzi scheme operated by a Minnesota businessman. That said, the Ponzi scheme was uncovered in 2008 at M&I Bank, and BMO Harris didn’t buy M&I Bank until 2011. 

BMO Alto Accounts 

Betterment Cash Reserve

The Betterment Cash Reserve Account is offering a promotional APY boost to new customers. With the APY boost, you can earn 5.50% APY for three months. After the 3-month period, you’ll earn the standard rate.

To earn the promotional rate, you’ll open it through the signup link and make a deposit from an external bank account in the first 14 days. Once you make the deposit, the rate on your Cash Reserve Account will be raised by 0.75% APY for 92 days. You cannot have an existing Betterment account. Existing customers will earn the standard rate.

If you’re looking for a place where you can save and invest, Betterment may be a strong choice.

You may also prefer another institution if you’d like to open CDs or money market accounts. Betterment only offers a checking account and cash reserve account, which is similar to a high-yield savings account.

The Better Business Bureau gave Betterment an F rating because it has a high volume of customer complaints on the BBB website and several unresolved complaints.

It has also been involved in a recent public controversy. In 2023, the Securities and Exchange Commission required Betterment to pay $9 million in a settlement that accused the investment advisory firm of omitting information regarding automated tax loss harvesting, which the SEC claimed affected clients. 

Betterment Cash Reserve Review

Synchrony High-Yield Savings Account

The Synchrony High-Yield Savings Account is one of the best online savings accounts because it has no minimum opening deposit, and it charges zero monthly fees. It also comes with an ATM card so you can access your savings quickly. Synchrony high-yield savings rates and CD rates also make this bank an appealing option.

Synchrony has an A+ rating from the BBB.

Synchrony doesn’t have a checking account, so it might not be the best option if you want to do all your banking with one institution.

Synchrony has also been involved in a couple of recent public controversies. In 2023, Synchrony was required to pay $2.6 million in a settlement when accused of calling customers about bank accounts they didn’t have.

In 2021, the bank also was required to pay $3.5 million in a settlement when accused of making unreasonable phone calls to debtors living in California.

Synchrony Bank Review

Best Savings Account Interest Rates

• Milli Bank Savings: 5.50% APY 
• Western Alliance Bank High-Yield Savings Premier: 5.36% APY
• BrioDirect Bank Savings: 5.35% APY
• My Banking Direct Savings: 5.35% APY
• Customers Bank Savings Account, powered by Raisin: 5.32% APY
• Ivy Bank Savings: Up to 5.30% APY
• TAB Bank Savings: 5.27% APY
• Upgrade Premier Savings: Up to 5.21% APY
• BMO Alto Savings: 5.10% APY
• Betterment Cash Reserve: 5.50% APY for new users for the first three months with a qualifying deposit, then 4.75% APY
• Synchrony Savings: 4.75% APY

What to Do When Your High-Yield Savings Account Rate Drops

Interest rates on high-interest savings accounts closely follow the federal funds rate. This means rates are variable and can change several times per year at the whim of the Federal Reserve. Savings rates may go up or drop after a Fed meeting.

If the interest rate on your savings account drops significantly, you may decide to look at other financial institutions to see if you can find a more competitive interest rate elsewhere. However, bear in mind that changing accounts may not be worth the effort, particularly if your new account’s rate drops afterward.

You also might consider other types of savings account options. For example, buying savings bonds or setting up a CD ladder may be worth considering if you’ve already established your emergency fund.

How to Choose the Best High-Yield Savings Account for Your Needs 

The interest rate isn’t the only thing that matters in a high-yield savings account. When choosing an account, make sure you can afford the minimum deposit. You should also check whether there is a monthly service fee — and if so, find out if you qualify to waive it — or any requirements to earn the highest interest rate. Some institutions also limit the number of monthly withdrawals/transfers you can make from your high-yield savings account before charging you a fee. You want an account that will result in a high interest rate and few to no fees so you can earn as much as possible.

What to Know About the Highest Interest Savings Account Interest Rates

Generally, you’ll find the best nationwide savings interest rates at online banks. That said, a local credit union currently offers the highest interest rate on a savings account overall. You may get 6.17% APY on up to $1,000 in your savings if you join Digital Federal Credit Union. Membership, however, is limited to people who live in select areas of Massachusetts, live in a New Hampshire participating condominium community, work for a Select Employer Group, or belong to a local participating organization. 

How Savings Accounts Work

A savings account is a type of interest-earning bank account. A savings account rate is variable, which means it can fluctuate after it is opened. Your bank will usually email you to tell you the rate will go up or down soon.

Savings accounts may also have transfer limits, according to federal rule Regulation D. Generally, if a savings account has a transfer limit, this means that you’ll only be permitted to make six transfers from the account each month. If you exceed the transfer limit, you will have to pay a fee for each additional transfer.

The Board of Governors of the Federal Reserve has recently amended Regulation D, so banks may choose to suspend the monthly transfer limit so customers can make unlimited monthly transactions, or they could enforce a six-per-month limit.

Typical Interest Rates on High-Yield Savings Accounts

The average savings account in the United States offers 0.47% APY as of January 2024.

If you’re more comfortable banking with a brick-and-mortar bank, a traditional savings account might be a better option for you. Just know that you may not be getting the best possible interest rate because online banks and credit unions usually offer higher rates.

High-Yield Savings Account Fees

Depending on where you bank, some savings accounts may charge monthly bank maintenance fees. A monthly service fee is an amount you’ll have to pay each month to maintain an account. Some accounts will allow you to waive a monthly service fee if you meet certain requirements while others cannot be waived. Bear in mind that some savings accounts do not charge certain fees at all.

The Different Types of Savings Accounts

There are six types of savings accounts: traditional savings accounts, high-yield savings accounts, money market accounts, certificates of deposit, cash management accounts, and specialty savings accounts. The best savings account for you may depend on your banking preference, goals, and when you’ll need to access your money.

A high-yield savings account, for example, is a strong choice if you’re comfortable with banking digitally and want to obtain a high interest rate.

Maximizing Your Earnings with High-Yield Savings Accounts

To maximize your earnings with a high-yield savings account, shop around to find one that pays a high rate and doesn’t charge monthly service or excess withdrawal fees for taking money out regularly. You may find it helpful to set up automatic transfers from your checking account to your high-yield savings account. If you receive your paycheck as a direct deposit, you can also ask your employer to send a percentage of your paycheck to your high-yield savings account each pay period. As your balance grows with automatic savings and direct deposits, you’ll earn more interest.

Alternatives to High-Yield Savings Accounts

High-Yield Savings Accounts vs. CDs

The best CD rates are comparable to the best high-yield savings account rates. You might prefer a CD if you want to lock in a high rate for a set period of time, because your rate is fixed. You won’t risk your rate decreasing as you would with a savings account. But CDs offer less flexibility. You can’t put in more money after the initial opening deposit, and you’ll pay a penalty if you take out money before the term ends.

If you’re trying to decide between CDs versus high-yield savings accounts, your choice could come down to when you need to deposit and/or withdraw money.

High-Yield Savings Accounts vs. Money Market Accounts

Money market accounts are similar to high-yield savings accounts, but they typically make it easier to access your savings. The best money market accounts come with features checking accounts might have, such as an ATM card, debit card, or paper checks.

High-Yield Savings Accounts vs. High-Yield Checking Accounts

High-yield checking accounts are great tools for earning even more interest on your money. But checking account balances are often lower than savings account balances because you use them to spend money. If you’re serious about using interest to grow your balance, a high-yield savings account is usually the better bet.

High-Yield Savings Account Frequently Asked Questions

Why You Should Trust Us: Experts’ Advice on Choosing the Best High-Yield Savings Account

We consulted banking and financial planning experts to inform these picks and provide their advice on finding the best high-yield savings accounts for your needs.

Business Insider

Here’s what our expert panel had to say about high-interest savings accounts. (Some text may be lightly edited for clarity.)

Generally, what makes a high-yield savings account good or not good?

Roger Ma, certified financial planner with lifelaidout® and author of“Work Your Money, Not Your Life”:

“It might not be as seamless to get your money out of an online savings account as it is a brick-and-mortar, but you don’t want to have so much friction where it’s such a pain to get the money out when you need it.”

Mykail James, MBA, certified financial education instructor, BoujieBudgets.com:

“Anything with a fee is not a good high-yield savings account. Anything that restricts how much you can save is, to me, not very good. If I can’t save more than $10,000 in this account, and then I have to move it over somewhere else — to me, that’s not a really good savings account, because it’s not really prepared to help me expand and grow, which is what a savings account is supposed to do. I also look at interest rates, definitely. I look to see when the interest is paid. Is it quarterly, or is it monthly? How often do they pay out interest, and what are the interest rate stipulations?”

Sophia Acevedo, certified educator in personal finance, banking reporter, Personal Finance Insider:

“I would consider looking for features that will help manage your account. Some banks have high-yield savings accounts that let you separate your savings into individual goals and track your progress. Other financial institutions will let you deposit cash at ATMs or some retailers. A good high-yield savings account will likely be an account where you can grow your savings without unnecessary hassles.”

How should someone decide whether to put their money in a high-yield savings account, money market account, or CD?

Tania Brown, certified financial planner at SaverLife:

“So I guess we’ll start off with how much money you want to put in and the level of transactions you want to have. If you want to have any transactions, that automatically takes out CDs. Then you’re stuck between the high-yield savings and the money market account.”

Sophia Acevedo, CEPF:

“I would create a list of what I prioritize most in a bank account. For example, some banks have accounts that charge monthly service fees. I would look to see what the requirements are for waiving the monthly service fee and whether I think I could feasibly meet those requirements each month. If I’m searching for an interest-earning bank account, I’ll pay attention to interest rates. I would make sure the account pays a higher interest rate than the average bank account.”

Our Methodology: How We Chose the Best Savings Accounts

There are many high-yield savings accounts available across financial institutions. Through our research, we’ve found that the best high-yield savings accounts are offered by banks with a strong online presence, robo-advisors, and other internet-only financial companies. If you’re more comfortable banking with a national brick-and-mortar bank, you’ll likely have to consider a premium savings account to earn a more competitive interest rate.

We review savings accounts at nearly three dozen institutions weekly to identify the strongest options. While interest rates are an important aspect of any savings account, we also consider minimum deposits and balance requirements, transfer limitations, and any other standout features.

Personal Finance Insider’s mission is to help smart people make the best decisions with their money. We understand that “best” is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don’t have to.

See our full ratings methodology for checking, business checking, savings, and money market accounts »

Sophia Acevedo, CEPF

Banking Reporter

Evelyn He

Compliance Associate

Evelyn He is a compliance associate at Business Insider who supports the Personal Finance Insider team. Personal Finance Insider is Business Insider’s personal finance section that incorporates affiliate and commerce partnerships into the news, insights, and advice about money that Business Insider readers already know and love.The compliance team’s mission is to provide readers with stories that are fact-checked and current, so they can make informed financial decisions. The team also works to minimize risk for partners by making sure language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.Before joining Business Insider, she served in various legal and compliance roles in different industries, including the legal and pharmaceutical industries.   Evelyn obtained her M.S. degree in Marketing at Boston University in 2022. Prior to combining and consolidating her knowledge of law and business, she spent one year finishing 1L courses at Suffolk University Law School to further her legal knowledge. She has also completed MBA business law courses while working on her Bachelor of Business Administration in Management at the University of Massachusetts, Amherst. Outside of work, she enjoys spending time with her 14-year-old Shih Tzu named Money, and her 5-year-old Bichon named Tibber.

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Kit Pulliam

Personal Finance Insider editorial fellow