If you have a regular savings account at a big bank, you’re probably not earning much interest on your money. The average savings account in America has an interest rate of just 0.06%. But you don’t have to settle for a measly annual percentage yield. There are plenty of online banks that offer high-yield savings accounts with interest rates of 1% or more — allowing you to grow your savings faster.
To help you earn more interest on your nest egg, it’s important to find the best high-yield savings accounts that have high interest rates and low minimum balance requirements so you can open an account and start saving today.
|APY||Min. Deposit||Monthly Fee|
|Discover, Member FDIC||0.50%||$0||$0|
|CIT Bank||0.45% (Savings Builder)||$100||$0|
*Data accurate as of November 2020
High-yield savings accounts are just like regular savings accounts, except they earn a much higher interest rate. The average savings account only earns 0.06% interest, while many high-yield savings accounts offer interest rates above 1%.
High-yield savings accounts are FDIC-insured, so they don’t carry the same risks as investment accounts. And unlike CDs, they allow you to access your money at any time, so they’re a great place to store money you need easy access to, like an emergency fund.
The only downside of high-yield savings accounts is that FDIC regulations limit account holds to only six withdrawals or outgoing transfers each month. If you go over the limit, your account could be converted to a checking account or you may have to pay a fee.
[Related: Best Money-Saving Apps]
When you’re shopping around for a high-yield savings account, look for one that has an interest rate above 1% and no monthly maintenance fees. Also, avoid accounts with high withdrawal penalties or overdraft fees that could cut into the interest you’ve earned. Special features are also something to consider. Although perks like ATM cards and savings tools aren’t necessary, having them could make your banking experience more convenient and enjoyable.
Another factor to consider is whether you like to do your banking online or in person. If being able to visit a physical bank is important to you, prioritize companies like Capital One with branches throughout the country. If you’re happy to do your banking online, look for companies with a reputation of providing a great online banking experience like Ally.
Please Note: Information about the American Express® Savings offer have been collected independently by TheSimpleDollar.com. The issuer did not provide the details, nor is it responsible for their accuracy.
We welcome your feedback on this article and would love to hear about your experience with the savings accounts we recommend. Contact us at email@example.com with comments or questions.
The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.
For every review, our editorial team:
Here’s a breakdown of the five aspect scores and their rating criteria for our review of the best savings accounts of 2020.
To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.
However, it’s also possible for the same product from the same brand to have multiple SimpleScores. For instance, if we compare the savings account offered by Chase, it scores a 3.8 out of 5. However, when we compare the checking account offered by Chase with the checking account SimpleScore metrics, it scores a 4.4 out of 5. We change and tweak the methodologies for different categories based on industry standards to paint a complete picture of products and brands.
Questions about our methodology?
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