Until recently, even the best high-yield savings accounts offered relatively low returns in comparison to other investment options. However, changes in the market have opened an opportunity for consumers to grow their savings at meaningful rates again. Our monthly analysis of the best savings options will help you identify which banks offer the highest APYs and greatest convenience while charging the fewest fees.
Highest Savings APY: CIT Savings Builder
CIT Bank currently offers an APY of 2.40% for anyone who makes a monthly deposit of $100 or more to the account. While most people should find it easy to meet this requirement, those who prefer to deposit a fixed amount without adding to it can also qualify for the full rate at CIT Bank by making sure they have at least $0 deposited on the final day of each month.
Combined with the lack of monthly account fees, these low requirements and high APY make CIT Bank our top pick among all high-yield savings accounts now available. CIT Bank also operates a mobile app that lets you check your balance and arrange transfers whenever you need.
Best Online High-Yield Savings: Discover Online Savings
Discover's Discover Online Savings account earns 2.10% APY, a rate that's almost as high as the best offer currently available. In addition, Discover is part of Discover Bank, which goes above and beyond the typical online bank by providing online checking accounts in addition to high-yield savings.
Through Discover's mobile app, you can manage not only your Discover Online Savings balance but also make transfers to and from the company's other products, such as Discover Cashback Checking or any Discover credit card. All in all, the strong interest rate and convenient links to other bank accounts make Discover Online Savings our choice as the best online savings account.
Best High-Yield Savings for Low Balances: DCU Primary Savings
Digital Credit Union's DCU Primary Savings earns 6.17% APY on up to $1,000.00 in your savings balance, making it the best choice for people just starting to save. This rate is by far the highest return you'll find on any deposit account, even though the $1,000.00 limit poses a significant disadvantage to people with larger balances.
Unlike most other high yield savings accounts, the DCU Primary Savings account requires that you join a credit union to access its high rate. While this isn't particularly difficult, you will need to spend about $10.00 to qualify for membership. If your initial deposit is already close to the $1,000.00 limit, you'll probably want to use Digital Credit Union's free automatic transfers to make sure that you're maximizing your earnings by keeping the balance under the limit each month. Despite the extra work it might require, this account's 6.17% APY is a rare value compared to today's average rates.
Best High-Yield Savings for Kids: Alliant Kids Savings Account
With an interest rate many times greater than almost every other child-oriented savings account, the Alliant Kids Savings Account Account is our top recommendation for parents who want to start saving for their children. This account earns an interest rate of 2.10% for balances that meet an average daily balance of at least $100 every month. The credit union will also donate the initial $5 required to open the account.
While Alliant's status as a credit union means that it has a more selective application process, you can easily qualify for membership with a $10.00 donation to its non-profit partner, Foster Care to Success. Finally, Alliant Kids Savings Account is only available for children age 12 and younger, but parents can secure the same interest rate for older children with the standard Alliant High-Rate Savings Account.
Best High-Yield Savings Bonus Offer: TIAA Bank Yield Pledge Money Market
Although you'll need $5,000 to open an TIAA Bank Yield Pledge Money Market Account, the introductory APY of 1.31% is currently the highest rate you can find on a money market account. After one year of earning at this strong bonus rate, your rate with this account will move down to 2.15%—still above-average compared with other options.
|Bonus APY||1.31% for 1 year after account opening|
Besides the bonus rate, TIAA Bank's Yield Pledge promises to keep your interest rate within the top 5% of similar accounts offered at major banks. Unfortunately, this pledge only takes into account the largest banks, which offer some of the lowest money market rates. Compared to online-only banks, TIAA Bank's 2.15% APY after the first year is only slightly above average. It may be more efficient to seek other high yield options once the promotional rate expires.
Summary of Best High-Yield Savings Accounts
For a faster head-to-head comparison of these accounts, refer to the following summary. These are the best high-yield savings accounts available.
|Best For...||Account Name||APY||Opening Minimum|
|Highest APY||CIT Bank||2.40%||$100.00|
|High-Yield Online Savings||Discover Online Savings||2.10%||$0.00|
|Low Balances||DCU Primary Savings||6.17%||$100.00|
|Kids' High-Yield Savings||Alliant Kids Savings Account||2.10%||$5.00|
|Bonus Savings Rate||TIAA Bank Yield Pledge Money Market||2.15%||$5,000.00|
Finding Other High-Yield Savings Accounts
If the options above are unsuitable for your finances or unavailable in your area, keep in mind that there are dozens of other options that offer interest on your savings. People who are determined to avoid online-only banks should be prepared to accept rates much closer to the FDIC's calculated national average of 0.06% APY for regular savings accounts and 0.08% for money market accounts. With interest rates remaining historically low, it's unlikely that you'll see bank savings rates go higher than the 1.00% figure shown in some of the online accounts above.
Another factor to consider is the effect of your total savings balance. If you have more to deposit in savings, you may be able to open premium savings accounts that require higher balances to open and maintain. Even these accounts don't usually come close to the rates offered online, but if you also have investments and loan accounts to consider, it might be easier to open a premium savings account at a major national bank that lets you integrate all your finances.