Best High-Yield Savings Accounts for September 2024

As widely expected, the Federal Reserve issued an interest rate cut at its September meeting. The response from banks and credit unions varied. Some banks tracked by CNET dropped their annual percentage yields, or APYs, on high-yield savings accounts, making the average APY drop from 4.80% last week to 4.69% this week.

However, many high-yield savings accounts still outpace the national average of 0.46%. For example, LendingClub offers a competitive LevelUp Rate of 5.30% APY if you can meet the $250 monthly deposit requirements. 

Other high-yield savings accounts pay between 4.50% and 5.25% APY. Rates are variable and may change anytime, so taking advantage of elevated rates now is a smart move.

Compare the best high-yield savings accounts

Below, you’ll find some of the best high-yield savings accounts to increase your interest earnings and help you reach your savings goals faster.

Best high-yield savings accounts by bank

What is a high-yield savings account?

A high-yield savings account, or HYSA, is a type of savings account that offers interest rates at least 10 times higher than the national average. Most HYSAs are found at online-only banks. Since online banks don’t have the overhead costs of maintaining physical branches, they pass some of these savings down to customers in the form of lower fees and better APYs on savings, certificates of deposit and money market accounts.

With the highest rates continuing to sit above 5% APY, transferring some or all of your savings to a high-yield savings account could definitely pay off. And even when rates go down — which they will eventually — a high-yield savings account will still outperform a traditional one.

While many high-yield savings accounts offer high APYs on your full balance, some banks cap the amount of money you can earn at this rate. For instance, Digital Federal Credit Union offers an impressive 6.17% APY on its high-yield savings account — but only on balances up to $1,000. Any balances over that receive a paltry 0.15% APY.

And, in some cases, banks might require a higher minimum deposit to be eligible for the higher APY.

What experts are saying about high-yield savings accounts

We spoke with financial experts to learn the best way to use high-yield savings accounts, what to look out for and additional tips and guidance in the current rate environment. 

Savings rates are soaring. Anna N’Jie-Konte, a certified financial planner, recommends a high-yield savings account for anyone looking for flexibility and easy access to their money — especially to house an emergency fund.

Currently, some of the best high-yield savings accounts offer APYs as high as 5.30% on all balances. Compare this to some traditional savings accounts, which offer APYs as low as 0.01%, and you’ll see the real value. For example, if you deposit $100 a month into a high-yield savings account for a year with a 5% APY, you’ll earn about $28 in interest (if rates stay the same). If rates go up, you’ll get a bigger return. If you deposit the same amount in a traditional savings account with a 0.01% APY, you’ll only earn $1.

If you’re looking for ways to grow your money faster, you’re not alone. Shang Saavedra, the founder and CEO of Save My Cents, says her followers have been asking her more questions about how high-yield savings accounts work. “The rates are so attractive that some people see it as an investment product,” Saavedra added.

Since the best rates are often at online-only banks, you’ll need to feel comfortable managing your money online. Many online bank names may feel unfamiliar, so Saavedra encourages her followers to read reviews, ask questions and do their research to get more acquainted with how an online bank operates. Most importantly, she suggests ensuring the bank is insured by the Federal Deposit Insurance Corp. or the National Credit Union Administration to protect your funds up to $250,000 per person, per institution.

Don’t assume a high-yield savings APY applies for all balances. Some banks have balance requirements to earn the highest interest rate, while others keep it straightforward, said Rita-Soledad Fernandez Paulino, founder of Wealth Para Todos. For instance, a bank may only offer a 5% APY on up to $3,000 or if you deposit that amount when opening the account. “I prefer to work with a bank that gives me an interest rate that’s going to be the same for all my money,” she said. “Always read the fine print.”

Lastly, don’t expect 5% high-yield savings rates to stick around long-term. Savings APYs are variable and often move in lockstep with the federal funds rate. The Federal Reserve issued its first rate cut in years following its September meeting, and we’re starting to see APYs drop slightly. However, rates on high-yield savings accounts remain competitive, and HYSAs are a safe and secure option to maximize your interest growth. 

“Right now, we might be in an environment with really, really high interest rates. But by default, the Fed doesn’t like to stay there,” said Delyanne Barros, founder of The Money Coach. If you aren’t earning over 4% on your savings account, you should consider switching to a high-yield account to earn a better return while rates are high.

Read more: Types of Savings Accounts Compared

What a high-yield savings account is best for

A high-yield savings account is a great place to park money dedicated to short-term savings goals. Here are a few ways you might use a HYSA:

• Emergency fund: Your emergency fund provides an extra layer of security against unexpected expenses, and it should always be in a high-yield savings account, Soledad said. You’ll have access to the money when you need it, and you can make regular contributions over time to prepare for an unforeseen event, such as a layoff or medical bill. You should keep your emergency fund separate from any other savings goals and only pull funds from this account to cover essentials such as housing costs, bills, medical care or an unexpected expense.

• Sinking fund: A sinking fund is a way to set aside savings for a short-term goal, such as holiday gifts or a concert. It’s money you save for a specific upcoming expense, Soledad said. You can open separate high-yield savings accounts or use a bank such as Ally that offers savings buckets to help organize and separate savings goals within one account. You may set up automatic transfers or contribute occasionally to reach your goal. That way, when it’s time for your purchase, you’ll have the money you need without overspending or taking on debt.

• Money you haven’t earmarked yet: If you’re unsure about how you want to use some funds, you may keep the money in a high-yield savings account to earn interest while you decide. When you’re ready, you can move the funds to the right account or goal — whether you choose to invest, start a new sinking fund or spend the money.

You shouldn’t use a HYSA as your primary retirement savings vehicle. Although APYs are higher than they’ve been in years, they can’t compete with the compounding interest rates of the stock market. Your main retirement fund should be parked in a 401(k), IRA or other tax-advantaged growth account. But that doesn’t mean you shouldn’t park extra funds in a high-yield savings account as you approach retirement age.

“I’m planning to have two to three years of expenses saved [in a high-yield savings account] by the time I retire. Because if for some reason the market crashes the year that I retire, I don’t want to be pulling out of my investments that year,” Barros said. “That’s when a high-yield savings account or a regular savings account becomes something even more vital to your portfolio.” 

The strategy can be helpful so you don’t have to sell your investment assets at reduced prices, echoes Soledad. “If you only have one or two years left before retiring, I suggest you balance between saving in products that provide a guaranteed rate of return,” she said. That can include high-yield savings accounts, CDs, bonds and investments you don’t plan to sell for at least three years.

What to look for when opening a high-yield savings account

Keep these factors in mind when comparing your high-yield savings account options.

Deposits and withdrawals

Since most high-yield savings are at online banks, make sure you understand how you can deposit and withdraw your money. Aside from direct deposit and transfers from other bank accounts, most banks with online access offer mobile check deposit, which lets you take a photo of your check to scan and deposit it into your account. 

Just watch out for mobile check deposit limits, Soledad said. Sometimes you can’t exceed a limit of $5,000, for example. If your check is larger than the limit, you can often deposit the money into your checking account and then transfer it.

Some high-yield savings accounts may offer cash deposits at ATMs, but many don’t. This can pose a challenge if you regularly receive money in cash. In this case, depositing into a separate bank account and transferring it to your savings account may work well, but it will take more time. 

Savings goals and features

Many high-yield savings accounts offer ways to earmark money for different savings goals.

“I’m a big fan of Ally because I like their buckets feature,” Soledad said. Ally Bank lets you keep your money in one account, while clearly categorizing it for different savings goals. “Not all high-yield savings accounts have this bucket feature where you can categorize your money.” However, you could also open multiple savings accounts to keep your financial goals separate.

“The ability to categorize your savings so that you can set up sinking funds is very beneficial,” Soledad said. However, some banks will limit how many accounts you can link, she added. For instance, you may have a checking account and several savings accounts to track your goals individually. 

If you have multiple accounts, make sure your high-yield savings account is linked to the primary account where your paycheck or other income is deposited so you can easily transfer funds.

Withdrawal limits 

If several emergency expenses pop up in a row, you might find yourself tapping into your savings multiple times in a given month. “Look out for how many times you can pull money out a month for this account,” Soledad said.

Although Regulation D (PDF), which limited savings account transfers to six per month, was indefinitely suspended by the Federal Reserve, some banks still adhere to this limit. That means if you exceed this number of transfers, you may be charged an excessive transfer fee. The charge can vary by bank but is usually $10 for each transaction that exceeds the limit.

Pros and cons of high-yield savings accounts 

Experts often recommend high-yield savings accounts as a low-risk way to save money, but there are some drawbacks to consider. Here are a few pros and cons to weigh.

Alternatives to high-yield savings accounts

In general, there are three savings account options if you’re looking for an alternative to high-yield savings accounts.

Traditional savings account: A traditional savings account is typically offered by a brick-and-mortar bank or local credit union. You won’t earn much interest compared with high-yield savings accounts, but you will have ATM access to make cash deposits and withdrawals. Some of these accounts are limited to six monthly withdrawals, although ATM withdrawals may be excluded from that restriction.

Money market account: A money market account combines features of a checking and savings account. This account usually requires a higher balance to earn interest and keep your account in good standing. And you may only be able to make a limited number of withdrawals per month. However, many money market accounts come with checking account features, such as a debit card, ATM access and check writing privileges.

Certificates of deposit: A certificate of deposit, or CD, offers a fixed interest rate for a set period, known as the term. If you withdraw your money before the term ends, you’ll pay an early withdrawal penalty, which is usually a few weeks or months of interest, depending on the bank. And CDs only allow a one-time deposit. Most CDs have terms from three months to five years.

How to open a high-yield savings account 

You can typically open a high-yield savings account online in a matter of minutes. While the steps may vary by bank, here’s what the process generally looks like.

1. Compare your options: Before opening an account, review different banks, features, rates and requirements to make sure you’re choosing the right fit for your financial situation. 
2. Apply: You’ll likely apply online, but you may be able to apply in person if your bank has physical branches. You’ll typically need to provide your Social Security number, physical address and contact information for your application. If you don’t have an SSN, some banks may allow you to open an account with an Individual Taxpayer Identification Number, or ITIN. Some banks may also require you to link your account and routing numbers from another account or financial institution to transfer your funds. 
3. Make a deposit: Depending on the bank, you may need to make a minimum deposit when opening the account. If not, you can transfer money when you’re ready. Most banks allow bank transfers, automated clearing house transfers and mobile check deposits.

FAQs

Methodology

CNET regularly reviews and tracks the annual percentage yields of savings accounts at banks, credit unions and financial institutions with nationwide access. None of the banks on this list charge monthly maintenance fees. Each account, which has been scored between one (lowest) and five (highest), is insured up to $250,000 per person, per account category, per institution by the Federal Deposit Insurance Corporation or National Credit Union Administration.

We review the APYs from the top 25 financial institutions on a weekly basis and compare them to the FDIC’s national average rate as well as the average APY of these banks, credit unions and financial institutions. Banks that score highest in our ranking offer an APY that is at least 10% higher than our CNET average and 10 times higher than the FDIC’s national average rate.

The banks, credit unions and neobanks we reviewed include: Affirm Savings, Alliant Credit Union, Ally, America First Credit Union, American Express High Yield Savings Account, Axos High Yield Savings, Bank of America Advantage Savings, Bank of the West, Bank5 Connect, Barclays, Bask Bank, Bread Savings, BrioDirect High-Yield Savings, Capital One 360 Checking, Charles Schwab, Chase Premier Savings, Chime, Citibank, Citizens Online Savings Account, Colorado Federal Savings Bank, Consumers Credit Union, Discover, First Internet Bank of Indiana, LendingClub, Live Oak Bank, M&T Bank, Marcus, My Banking Direct, Nationwide My Savings, Navy Federal Credit Union, NBKC, OneUnited Bank, PenFed CU, PNC, Popular Direct Select Savings, PurePoint Financial, Quontic Bank, Rising Bank, Salem Five Direct, Sally Mae Smarty Pig, Santander Bank, Synchrony, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, USAA Bank, Varo, Vio and Wells Fargo.