10 most-recommended high-yield savings accounts of February 2024 (psst: you can get paid up to a 5.5% APY) (2024)

That said, many of the best available rates come with exclusive membership requirements and balance restrictions. That’s why we analyzed reviews from some of the leading financial sites in America — including Forbes, CNBC Select, CNN Underscored, Bankrate and more — to determine the most recommended offerings right now. Our ranking, which we bring to you each month, will include high-yield savings accounts with the best return on your money and the least amount of hoops you need to jump through to open and keep the account.

Methodology for choosing the best high-yield savings accounts

Every month, our team scours the internet for high-yield savings accounts recommendations to bring you the very best of the best. We read reviews from The Ascent/The Motley Fool, Bankrate, Business Insider, CNBC Select, CNN Underscored, Forbes Advisor, NerdWallet, SmartAsset and Wallethub. We then ranked these accounts based on the total number of recommendations. Winners are determined by the number of times they appear on any of these lists. Simply put, banks that appear on the most “best savings account” lists score the highest.

Frequently asked questions (FAQs):

What is a high-yield savings account?

With the proliferation of internet-only banks in the late 1990s, heightened competition to offer the best rates resulted in the phenomena now known as the high-yield savings account. High-yield savings accounts are similar to traditional savings accounts, but they typically offer customers interest rates that are many times higher than the national average. While the typical savings account earns an average annual percent yield (APY) of 0.47%, according to FDIC data through Jan. 16, high-yield savings accounts currently earn 5% APY or more.

How much can I earn on a high-yield savings account?

Some high-yield savings accounts are now paying 5% or more, though most don’t pay that much. What might a high-yield savings account actually earn you? Let’s say your savings account earns 2.00% APY. Savers can earn as much as $2,000 per year on $100,000.

How does a high-yield savings account stack up to other similar investment options?

Certificates of deposit

Interest rates for certificates of deposit, or CDs, have reached as high as a 6.5% APY. While CDs typically have fixed rates, and typically change depending on measures taken by the Federal Reserve, account holders can lock in these rates when they are high to reap the rewards.

Although CDs often come with a higher APY than most high-yield savings accounts, these investment options are set for a certain period of time and tend to come with penalties if withdrawals are made ahead of their respective maturity dates. High-yield savings accounts are generally a more liquid alternative to CDs, since you can make steady deposits and access the money as needed.

Money-market accounts

Money-market accounts generally come with larger minimum balances than typical savings or high-yield accounts. Rates are also slightly higher than a high-yield savings account and are subject to change over time.

One key difference is these accounts have historically been limited to six withdrawals and transfers per statement cycle. However, the rules have been suspended under the Fed’s revision of Reg. D as a result of the coronavirus pandemic. Some banks, though, have kept these terms in place, while others have made some adjustments. Another key difference from a high-yield savings account is that money-market accounts allow customers the ability to write checks.

Index funds

When it comes to holding cash for a short-term period or a near-term horizon, high-yield savings accounts offer relatively set and predictable returns based on their interest rates. If you’re planning on holding your money for a longer-term period, like say for five years or more, you may want to also consider investing your money in an index fund.

These are essentially baskets of securities designed to follow a benchmark index, such as the S&P 500 or Nasdaq 100, and can deliver sizable long-term gains. While funds like the SPDR S&P 500 ETF Trust, or SPY, posted an annual gain of 26.19% last year, the index tracker had a loss of 18.17% in 2022, according to Morningstar. That said, the fund has delivered a 5-year gain of 14.89% and 10-year annualized return of 12.76%, as of Feb. 7.

Are high-yield savings accounts safe?

As long as you open an account that is FDIC- or NCUA-insured then your money is typically protected up to $250,000. The government agency known as the Federal Deposit Insurance Corporation, or the FDIC, insures up to $250,000 per depositor, per insured bank, for each account ownership category, so there is little to no risk of capital loss. The NCUA, or the National Credit Union Administration, is an independent federal agency created by Congress in 1971 to insure deposits at federally insured credit unions and members who own credit unions.

In some cases, such as robo advisers for instance, these accounts may offer an even higher rate of protection. Just be sure to read the fine print to ensure your money is safe.

How do I choose the best high-interest savings account?

Choosing a high-yield savings account really depends on what you’re looking for as a saver. Some key factors you may want to consider include interest rates, fees, location and accessibility of your money. The annual percentage yield (APY), which determines how much interest your money will earn while stored in a high-yield savings account can differ depending on the bank you choose to store it with. See some of the highest paying savings accounts you can get here.

Look too at account minimums, deposit requirements and associated fees. There are often bonuses involved if you set up tools like direct deposit or meet various other requirements. Another important factor you may want to consider is whether you want an online-only bank or one that has brick-and-mortar locations.

How often do high-yield savings rates change?

One factor you should be aware of before opening a high-yield savings account is that interest rates are variable. That means they are subject to change depending on any adjustments made to the federal funds rate, which is set by the Federal Open Market Committee (FOMC), the government agency responsible for setting monetary policy for the Federal Reserve.