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Choosing the right method to increase your savings account balance can be difficult — especially right now. After all, there are numerous interest-bearing account options to choose from, like certificates of deposit (CDs), money market accounts and savings accounts. And, each option offers not just its own rates, but its own potential benefits and downsides to savers, so it’s important to weigh all the factors before making a decision.
For example, a CD can be a great way to secure a high fixed interest rate on your money, but the tradeoff is that you typically have to leave your money deposited in the account until the CD matures. Otherwise, you may have to pay for early withdrawal penalties that can cut into your interest earnings significantly, resulting in returns that are much lower than they would have been with another type of account.
That, of course, means that CDs aren’t the right option for everyone. But if you’re looking for an account that offers a high rate of return with more flexibility, a high-yield savings account could make more sense. And in today’s elevated rate environment, high-yield savings accounts are offering rates that are just as good — if not better — than what can be earned with CDs or other types of accounts. And, the flexible nature of these accounts makes them a great fit for anyone who needs access to the money in their savings. But if you’re going to open one of these accounts, it makes sense to try and get the best rate possible on your money — and the options below offer some of the best APYs around.
Explore your top savings account options online here.
14 best high-yield savings account rates for February 2024 (up to 5.50% APY)
If you’re considering a high-yield savings account as part of your savings strategy, the following accounts could be worth a look:
Milli Bank — 5.50% APY: There is no minimum opening deposit requirement for this account; there is no minimum balance requirement for this account; this account does not charge a monthly service feeBrio Direct — 5.35% APY: The minimum opening deposit amount for this account is $5,000; a balance of at least $25 is required to earn the advertised APY; this account does not charge a monthly service feeTab Bank — 5.27% APY: There is no minimum opening deposit requirement for this account; there is no minimum balance requirement for this account; this account does not charge a monthly service feeUFB Direct — 5.25% APY: There is no minimum opening deposit requirement for this account; there is no minimum balance requirement for this account; this account has a tiered APY structure that awards different APYs for different balances (all of which are currently 5.25%)Popular Direct — 5.20% APY: The minimum opening deposit amount for this account is $5,000; there is no minimum balance requirement for this account; this account does not charge a monthly service feeBread Savings — 5.15% APY: The minimum opening deposit amount for this account is $100; there is no minimum balance requirement for this account; this account does not charge a monthly service feeEverBank — 5.15% APY: There is no minimum opening deposit requirement for this account; there is no minimum balance requirement for this account; this account does not charge a monthly service feeBask Bank — 5.10% APY: There is no minimum opening deposit requirement for this account; there is no minimum balance requirement for this account; this account does not charge a monthly service feeBMO Alto Online Savings Account: 5.10% APY: There is no minimum opening deposit requirement for this account; there is no minimum balance requirement for this account; this account does not charge a monthly service feeCIT Bank — 5.05% APY: The minimum opening deposit amount for this account is $100; a balance of at least $5,000 is required to earn the advertised APY; this account does not charge a monthly service feeSalem Five Direct — 5.01% APY: The minimum opening deposit amount for this account is $10; the advertised APY is paid on balances up to $1 million; this account does not charge a monthly service feeCIBC Bank — 5.01% APY: The minimum opening deposit amount for this account is $1,000; there is no minimum balance requirement for this account; this account does not charge a monthly service feeLendingClub — 5.00% APY: There is no minimum opening deposit requirement for this account; there is no minimum balance requirement for this account; this account does not charge a monthly service feeSynchrony Bank — 4.75% APY: There is no minimum opening deposit requirement for this account; there is no minimum balance requirement for this account; this account does not charge a monthly service fee
Find out how much more you could earn on a high-yield savings account here.
The bottom line
For many savers, high-yield savings accounts offer the perfect balance between liquidity and high earning potential — especially compared to regular savings accounts, which offer a low average APY of just 0.47% right now. But as with any type of interest-bearing account, just make sure that the high-yield accounts you consider are a good fit with both your needs and wants for your savings goals. That way, you can ensure that your account and the money in it are working hard for you, which is the best way to build a sound savings strategy.
Angelica Leicht is senior editor for Managing Your Money, where she writes and edits articles on a range of personal finance topics. Angelica previously held editing roles at The Simple Dollar, Interest, HousingWire and other financial publications.
