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A high-yield savings account can help grow your funds while providing convenient access to your money. If you’re seeking an account with growth potential and flexibility, there are plenty of options to choose from. We’ve analyzed online savings accounts at banks and credit unions to determine the best ones, based on interest rates and other factors like fees, minimums and overall experience.
We’ve compared 70 online savings accounts at 56 nationally available banks and credit unions to find some of the best accounts available. See below to learn more about why we picked each account, the pros and cons, and to access individual bank reviews.
Annual percentage yields (APYs) and account details are accurate as of Sept. 28, 2021.
0.20 to 3.00%
$0
$0
This account pays a respectable 0.20% APY and doesn’t charge a monthly fee or require a minimum deposit. It also offers an unusually high APY of 3.00% if you meet these requirements each month: You must receive total direct deposits of $1,000 or more within each qualifying period, maintain a daily savings account balance of $5,000 or less for the entire calendar month and maintain balances above or equal to $0.00 in both your savings and bank accounts for the entire calendar month. These requirements may be worth it for those who want to supercharge their savings ability.
Varo also includes tools to automate your savings. It offers a robust customer service component, with online help, FAQs and phone support.
Read our full Varo Savings Account review.
Details
Varo offers a higher APY to customers who maintain an average daily balance of $5,000 or less. Varo calculates interest daily. In July 2020, Varo became the first challenger bank to receive a national bank charter, enabling it to offer a broader range of products and services in the future.
Up to 1.50%
$5
$0
The Consumers Credit Union Smart Saver Account is a great high-yield savings account for consumers, but it is best suited for those looking to open a checking account as well. To earn the maximum 1.50% APY, you must utilize the CCU Checking account and meet the following criteria: Deposit a minimum of $50, up to a $1,000 maximum, per month to the Smart Saver account, have direct or mobile deposits or ACH credits each month totaling $500 or more and enroll in eDocuments. Without a checking relationship, the APY is reduced to 0.25%.
You can join Consumers Credit Union by paying a one-time, non-refundable $5 fee to become a member of the Consumers Cooperative Association and depositing and maintaining a minimum of $5 in your Membership Share Savings Account.
Read our full Consumers Credit Union review.
Details
Yields earned on credit union accounts are referred to as dividends rather than interest. Dividends are compounded and credited monthly. Consumers allows you to earn 1.50% APY on your existing balance and on deposits of up to $1,000 per month. Consumers transfers any deposit amounts exceeding $1,000 in a given month into your Membership Share Savings account at the end of the day the transaction occurs. The Membership Share Savings account earns 0.03% APY.
0.45% to 0.70%
$0
$0
Sallie Mae’s SmartyPig Account offers a competitive APY and has a few features that make it a great fit for those just starting to save in a high-yield savings account. The SmartyPig online savings account provides savers with tools to create and track savings progress for specific goals—just like an online piggy bank.
This account also can help savers with smaller balances build up their savings faster. There are no minimum balance requirements and, in fact, the highest APY is reserved for balances of $10,000 and under. Typically, higher balances earn higher yields.
Read our full Sallie Mae Bank review.
Details
The SmartyPig account pays 0.70% APY on balances from $0.01 to $2,500, 0.70% APY on balances from $2,500.01 to $10,000, 0.45% APY on balances from $10,000.01 to $50,000 and 0.45% APY on balances of $50,000.01 and above. Interest is compounded daily and credited monthly.
0.61%
on balances of less than $25,000
$250
$0
Axos Bank’s high-yield savings account pays a very competitive 0.61% APY for balances under $25,000. Balances between $25,000 and $100,000 earn 0.25% APY. Balances of more than $100,000 earn 0.15% APY.
To open the account, you need only make an initial deposit of $250. And, overall, there are few fees associated with this account.
While this savings account is fairly simple, it offers some standout features, including a $20 bonus for inviting your friends to Axos Bank and biometric authentication to help ensure your account is secure.
Read our full Axos Bank review.
Details
Interest is compounded daily and credited monthly.
0.51%
$500
$0
SFGI Direct, a division of Summit Community Bank, has a single banking product: the SFGI Direct Savings Account. To open the account, you must meet a $500 minimum deposit requirement. After that, you are able to make deposits freely and earn a very competitive 0.51% APY. While the account lacks any notable features, it offers a simplicity that some consumers may value.
The bank does not have any branches, or a mobile app, so all banking activities will need to be completed in your online banking account.
Read our full SFGI Direct review.
Details
Interest accrues daily and is credited the last day of each statement cycle. Minimum balance to earn interest is $1.
The interest you can earn from a high yield savings account is one of the largest benefits of depositing your funds in this type of account. However, it is equally important to consider other factors than just the APY.
Be sure to look into whether the savings account has a minimum deposit requirement, minimum balance requirement and any potential fees. And while we are in such a low interest rate environment, any potential fees can quickly eat into your interest earnings.
Lastly, convenience is worth considering. Because many high-yield savings accounts are hosted through online banks without a physical branch, accessing your funds will not be as simple as visiting your local bank. So be sure to check with the bank you select to be sure you understand the nuances of withdrawing and depositing funds to help ensure you can access your funds as you need.
The savings accounts on this list offer some of the highest APYs currently available. They also rank well according to the overall criteria we’ve set for the Best Online Savings Accounts Of 2021.
To create a list of the best online savings accounts, Forbes Advisor analyzed 70 online savings accounts at 56 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each institution on 11 data points within the categories of APY, fees, minimum requirements, customer experience, digital experience and availability. All of the accounts on our list are online-based accounts.
Here’s the weighting assigned to each category:
We also considered whether there were complex tier structures or requirements to earn the APY or other stipulations to earn the APY. Minimum deposit requirements of $10,000 or higher affected scores negatively, as did high minimum balance requirements to avoid fees. To appear on this list, the online savings account must be nationally available.
The application process to open a savings account depends on the account you choose. In most cases, you’ll complete an online form to provide your legal name and address, Social Security number and birth date. Most accounts require that you be at least 18 years old. You will also need to provide an opening deposit.
Your earnings depend on how much money you save. For instance, if you deposited $100 into an account earning 0.50% APY compounding daily, you’d earn $0.50 over the course of the year. Do the same with a $1,000 starting balance and at the end of the year you’ll have earned $5.01 interest.
Brett Holzhauer is a former banking and personal finance reporter for Forbes Advisor. Previously, he was reporting at ValuePenguin and FinanceBuzz, and has been featured in numerous publications. An alum of the Walter Cronkite School of Journalism at Arizona State, when he is not reporting, Brett is likely scuba diving, golfing or watching college football. He tweets regularly at @brett_holzhauer.