For March, our research shows the best high-yield savings account is at Western Alliance Bank, which currently offers a 5.28% APY with no minimum deposit, fees, or minimum balance required to earn that top-notch rate. We’ve also identified several other banks offering high yields, plus specific features you might find important.

10 best high-yield savings accounts

The best high-yield savings accounts for March 2024

Our picks for this month’s best high-interest savings accounts offer high yields, low fees, and other important features such as ATM access, online and mobile banking, and more. Plus, each account is protected by the Federal Deposit Insurance Corporation (FDIC), which insures up to $250,000 per depositor per account, giving you an extra sense of security for your savings.

Note: APYs in our list below are up to date as of March 6, 2024, but are subject to change.

Why we picked it

UFB Direct’s savings account rivals competitors in rate and (lack of) fees. However, this account stands out for its massive ATM network, highly rated mobile app, and generous customer service hours, which include 24/7 phone support. 

You’ll likely want this account in addition to those at your primary bank since UFB doesn’t offer a checking account. However, your UFB preferred savings account also includes a complimentary ATM card for fast cash.

Why we picked it

Milli’s high-yield savings account has the best terms of any financial institution we’ve reviewed. With a standout 5.50% APY and a bunch of “nos” in all the right places (no minimum deposit, balance, or account fees), those looking for a top-notch savings rate could stop their search here. 

Why we picked it

With a Varo Bank account, you can earn a whopping 5% APY on your savings, but you’ll need to meet some qualifications first. When you first invest, you’ll earn 3% on your balance. To earn the 5% APY, you’ll need to meet one of these two requirements:

1. Receive qualifying direct deposits of $1,000 or more in your account
2. Have a positive balance on both your Varo bank and savings account

However, note that you’ll only receive a 5% APY on balances up to $5,000. Any additional balance above that amount earns 3%. While Varo doesn’t offer the best APY, it does provide helpful savings tools, such as a round-up feature that rounds up your spending on a transaction and stashes that money in your savings account. 

Why we picked it

Western Alliance offers the highest APY of the banks on our list at 5.28%. To open an account, you’ll need to do so through Raisin, a digital platform that financial institutions use to provide bank accounts. This account has no monthly fees, and you’ll only need $1 to open an account.

TAB’s high-yield savings account is a straightforward, no-frills bank account with no monthly fees or minimum opening deposits. You’ll earn a stellar 5.27% APY with this FDIC-insured bank account. 

TAB bank customers can also download the mobile app to keep track of their transactions, transfers, and deposits.

Why we picked it

With Newtek Bank, you get a low-cost savings account with a stellar rate. There’s no minimum opening deposit or monthly maintenance fees. Plus, you only need to have a balance of $0.01 to earn interest. 

Newtek also offers many customer service options, so if you need help, you can connect with them via video, audio, text chat, or phone call.

Why we picked it

While Upgrade’s high-yield savings account does not require a minimum opening deposit, you must maintain a balance of at least $1,000 to earn interest. Any money you deposit will be held at Cross River Bank, an FDIC-insured member bank.

Beyond that, there are few rules or restrictions on the account. You won’t have to worry about monthly maintenance charges or other account fees. And if you need to contact customer service, you can do so via phone or online chat.

Why we picked it

Like other banks on our lisit, Cloudbank 24/7 offers their high-yield savings account through Raisin. With a 5.26% APY and a minimum opening deposit of $1, opening a Cloud 24/7 savings account is as simple as opening an online Raisin account and depositing money to start earning interest. 

If you ever need help with your account, you can reach Raisin customer service via email, phone, or secure messaging on their site.

Why we picked it

With a 5.25% APY, no monthly fees, and a low minimum opening deposit of $100, Evergreen Bank Group’s high-yield savings account is accessible and affordable. You can sign up for an account online and fund it via ACH transfer or debit card. 

This account is best for people who don’t plan on keeping substantial balances in their savings account: the 5.25% APY applies only to balances up to $1 million. 

Why we picked it

You can still open a Laurel Road high-yield savings account even if you have very little money to invest. This account boasts a 5% APY and has no minimum balance requirements or monthly maintenance fees. 

You can open an account online and fund your account using direct or mobile check deposits, checks, and ACH or domestic wire transfers.

Banks offering 5% APY on high-yield savings accounts

Today, the best high-yield savings accounts earn upwards of 5%, and there are many banks offering a 5.25%+ APY.

Note: APYs in the list below are updated monthly and up to date as of March 6, 2024, but are subject to change.

What is the best high-yield savings account for 10k?

Of the accounts with the highest APYs on the market today, the highest minimum balance required to earn 5% is $5,000. That means putting away $10,000 in any of these accounts will get you the best return.

Banks offering 4% APY on high-yield savings accounts

In addition to the previously mentioned banks, many more offer interest rates in the 4% range, which is still highly competitive compared to the national average.

What is a high-yield savings account (HYSA)?  

A high-yield savings account works just like a traditional savings account. It’s a deposit account at a credit union or bank that you can use for saving and earning interest on your money. The main difference is that the high-yield savings account offers a much higher annual percentage yield (APY) on the money you keep in your account. 

APY

The most recent rates from the FDIC put the national savings APY average at 0.46%, while there are many high-yield savings accounts that offer a 4.00% APY or higher. 

Monthly maintenance fee

Some financial institutions charge a monthly fee to cover the administrative costs of providing a savings account. These fees can often be waived by meeting certain requirements, such as maintaining a minimum balance or linking a checking account. However, fees can easily wipe away your interest earnings, so choosing an account that charges minimal or no fees is important, if possible.

Minimum deposit

You may be required to deposit a minimum amount of money to open a high-yield savings account. Depending on the account, the amount can range from $0 to $1,000 or more. It’s also common for high-yield savings account rates to be tiered, meaning higher rates are available for higher balances. Always check the balance requirements of an account to find out if you need to meet a certain threshold to earn the advertised rate.

How does a high-yield savings account work?

When you deposit money in a HYSA, your savings will grow thanks to the magic of compound interest. This means you’ll earn interest on the principal balance in your account and any interest you earned previously. For example, if you deposited $100 in your account and earned $10 in interest over the past few months, you will earn interest on the entire $110.

Can savings account interest rates change?

The APY on your account can and likely will fluctuate any time the Fed raises or decreases the federal funds rate. That’s the interest rate banks charge one another to borrow money, and your bank may be inclined to raise or lower rates on its financial products based on these changes. 

How much will $10,000 make in a high-yield savings account?

The interest you’d earn on a $10,000 deposit depends on the annual percentage yield and frequency of compounding.

For example, if you deposited $10,000 into a high-yield savings account that earns 5% APY—and didn’t make any other contributions—you’d have a total balance of $10,500 at the end of one year, assuming the interest compounds annually. If it compounds daily, you’d have a bit more: $10,512.67.

The rate at which your interest compounds (daily, weekly, monthly, annually) will depend on the financial institution. 

Pros and cons of high-yield savings accounts

If you’re considering putting your money in a high-yield savings account, there are a few key benefits and drawbacks to be aware of.

Advantages of high-yield savings accounts

One of the main advantages of high-yield savings accounts is that they typically offer interest rates well above the national average. Currently, the national average APY for a traditional savings account sits at 0.47%, whereas some of the high-yield accounts on our list boast rates as high as 5.00%. 

A high-yield savings account also provides greater security than some other investment options. Most high-yield accounts are FDIC- or NCUA-insured, meaning that your deposits are protected up to $250,000 per depositor, per institution in the event of a bank failure. 

Disadvantages of high-yield savings accounts

On the other hand, you usually won’t earn as much in a savings account as you would by investing your money in the market, even with a high-yield account. Even so, high-yield savings accounts are sensitive to changes in the economy, which means that your APY can increase or decrease at the discretion of your bank. 

There may also be a cap on your monthly withdrawals. Your financial institution may limit the number of withdrawals you can make each month. You may be charged a fee for each additional transaction if you exceed the limit.

Best uses for a high-yield savings account

High-yield savings accounts can be an effective savings vehicle for savers with many different types of goals. A few common uses for high-yield saving accounts include:

• Emergency savings: You’ll never exactly know when you’ll need to dip into your emergency savings. A high-yield savings account is a liquid account that makes it easy to access your funds in a pinch.
• Savings for major purchases: Say you want to purchase a new home appliance or save for a down payment on a new vehicle you plan to purchase within the next few months. A high-yield savings account can help you earn interest on your savings until it’s time to make your purchase.
• Short-term financial goals: A high-yield savings account is a great place to stash your cash for a specific goal, like a family vacation or home renovation.

How to choose the best high-yield savings account 

Choosing the right high-yield savings account will require you to think carefully about your financial habits, preferences, and goals so that you can select the account that best suits your needs. 

Shop around for a lucrative APY

The APY is the interest you can expect to earn on the money you keep in your account for one year. While this percentage may fluctuate depending on your bank and the economy’s health, you’ll want to give your savings the greatest chance of growing and earning as much compound interest as possible. 

The FDIC regularly publishes average national rates for various accounts, including high-yield savings accounts, so this is a trustworthy resource to use when shopping around for rates. Ideally, a lucrative high-yield savings account will offer a savings rate at least 10 times that rate. 

Consider the requirements for opening an account

Many, but not all, high-yield savings accounts require a minimum deposit to open your account. This figure can vary widely across financial institutions, with some requiring no minimum deposit and others requiring a minimum deposit well into the thousands. If you’re a new saver, you may not be able to opt for an account requiring a higher minimum deposit. 

Read the fine print on fees

Certain accounts may charge fees for maintaining your account, transferring funds, and more. An excessive fee structure can eat into your balance if you’re not keeping close tabs on your account. Weigh the different fees you could become responsible for and determine if the perks that come with the account outweigh potential penalties down the line. 

Consider access limits on your funds

Not all high-yield savings accounts will come with physical branch access or a large ATM network. If you’re looking for an account that will provide you with face-to-face support and easy access to your funds, double check that the financial institution you’re considering banking with has locations and ATMs in your area.  

Review online and mobile platforms for usability

If you prefer to do your banking on your desktop or phone, explore the financial institution’s online and mobile platforms before opening an account. Read Apple App Store and Google Play reviews to learn more about the digital platforms and tools available to you and what kinds of features and services are available on those platforms. 

Weigh available customer service options

Lastly, it’s important to know how to contact a representative if you have questions or issues related to your account. Some financial institutions take a digital-first approach and don’t offer easy access to a real human. Others prefer a phone call over chat or email options; make sure an account’s customer service options align with how you like to communicate.

How to open a high-yield savings account

Ready to open an account? Here’s what to do:

• Research different banks and credit unions: Compare accounts from different financial institutions to see which offer the best interest rates and benefits and have the lowest fees. Be sure to check both traditional brick-and-mortar institutions and online banks.
• Check the requirements: Some banks might require a minimum deposit to open an account or require a certain balance to avoid fees. Be sure you understand the terms and are comfortable with them.
• Visit the bank or apply online: Many banks and credit unions allow you to open an account online or through their mobile app. If you prefer, you can usually go to a physical branch to open your account.
• Fill out the application: You will need to provide some personal information, including your Social Security number (or individual taxpayer identification number), a valid ID (such as a passport or driver’s license), and contact information.
• Deposit funds: Once your application has been approved, you’ll need to deposit funds into the account. The amount will depend on the bank’s requirements.

Alternatives to high-yield savings accounts

High-yield savings accounts differ from other types of deposit accounts in a few key ways.

• Access to your savings: High-yield savings accounts are more liquid than other types of accounts like CDs. Withdrawing money from a CD before maturity could result in an early withdrawal penalty. With a high-yield savings account, you may still be limited in how many withdrawals you can make within a particular time, but you still have some access to your money. Similar to traditional savings and money market accounts, you may also have debit cards and/or check privileges.  
• High-yield savings accounts offer variable APYs: The APY on your high-yield savings account fluctuates, similar to a traditional savings account or money market account. For savers who prefer a fixed rate, a CD may be a better option, but it would mean giving up access to your funds for the duration of your CD term until your account reaches maturity.

High-yield savings accounts vs. traditional savings accounts

The primary difference between a high-yield savings account and a traditional savings account lies in their interest rates. High-yield savings accounts offer significantly higher interest rates compared to traditional savings accounts, which means that the money saved in a high-yield account grows faster. In some cases, high-yield accounts might come with more restrictions, such as limitations on the number of withdrawals and higher minimum balance requirements.

High-yield savings accounts vs. CDs

High-yield savings accounts are similar to traditional savings accounts, with the key difference being that high-yield accounts typically offer a more generous APY. They differ from CDs in that high-yield savings accounts preserve access to your funds, while CDs require that you commit to locking up your funds for a fixed term if you hope to avoid a penalty.

High-yield savings accounts vs. money market accounts

High-yield savings accounts are similar to money market accounts in that you’ll earn interest on your balance and can easily access your funds. One key difference between the two account types is that you may need to deposit and maintain a certain balance to open a money market account, and in some cases, the higher the balance, the higher your rate may be.

Our methodology 

To bring you our top picks for the best high-yield savings accounts, the Fortune Recommends™ team compared more than 60 online savings accounts from a mix of traditional brick-and-mortar banks, online banks, and credit unions. 

All the accounts on our list are available to customers in the U.S., regardless of where they’re located, subject to the terms of each account. The savings accounts on this list offer an APY at least 10 times the national average. 

We ranked each account in these core categories: 

• APY (50%): This number represents the real rate of return on your balance; the higher the APY, the better. 
• Monthly fees (10%): Some banks charge monthly maintenance fees. We ranked banks with lower (or zero) monthly fees higher on the list.  
• Minimum amount to earn APY (10%): To earn the high APY, some banks require that you maintain a certain dollar amount in the account, which we view as a limiting factor. 
• Minimum opening deposit (10%): Some financial institutions require a deposit amount when you open your account. We rate a higher opening deposit as less attractive. 
• Mobile app rating (10%): Many banks have a mobile app you can use to manage your account. We looked at banks’ mobile app ratings in the Apple store.
• Money management tools (5%): Some banks offered digital tools that make it easier for customers to track their spending and saving.
• Customer support (5%): Top picks offer customers various ways to get in contact: chat support, by phone, or even email—our team most highly rated phone support. 

Frequently asked questions

Are high-yield savings accounts safe?

Yes, if the account is at a bank or credit union insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Association (NCUA), respectively. The FDIC insures banks up to $250,000 per depositor, per bank, for each account ownership category. Credit unions are insured by the NCUA, which offers coverage up to $250,000 per share owner, per insured credit union, for each account ownership category. 

Are high-yield savings accounts taxable?

If you choose to use a high-yield savings account, you should be aware of the tax implications that come with it. The IRS considers interest earned on the money in your account taxable interest. Your financial institution will typically send you a 1099-INT statement for any interest earned over $10, and the amount you owe will depend on how much interest you’ve earned and your tax bracket.

How are savings rates set?

Individual banks set savings rates loosely based on the federal funds rate—the interest rate that banks charge other banks when they lend one another money, usually overnight or for a few days. When the Fed hikes rates, this can raise the cost of borrowing and motivate banks to raise their APYs to attract new customers.  

How often do high savings rates change?

Savings rates can change at any time. It’s important to remember that the rate information provided on the day you open the account is not a fixed rate. Banks and credit unions can, and likely will, adjust rates based on changes in the economy and interest rate increases or decreases by the Fed. 

How often can I withdraw money from a high-yield savings account?

According to federal law, high-yield savings accounts allow you to make withdrawals or transfer funds out of your account up to six times per month without paying any fees. However, this rule was loosened in 2020 during the coronavirus outbreak, and customers can now make an unlimited number of transfers and withdrawals from their savings account.

In which situation would a high-yield savings account be the best banking choice?

A high-yield savings account is a viable option for savers who are looking to save money for a large purchase like a house, a short-term or mid-range financial goal, or who want to maximize their savings and keep their money safe in a federally-insured account.

What is a good high-yield savings account rate?

What’s considered a “good” rate is somewhat subjective. The national average savings account rate is 0.47%, so any rate above that would be considered above-average. However, some banks offer savings accounts that offer an APY that exceeds 4%. So, if you’re looking for a high-yield savings account, it pays to shop around to find the highest rates available.

What’s the difference between APY vs. interest rate?

The interest rate is the percentage of your account balance that the bank pays you in interest over the course of a year, not factoring in the effects of compounding. APY, on the other hand, considers the interest compounding frequency. Therefore, APY gives you a more accurate picture of your actual earnings over a year.