Banking Savings Accounts Best Savings Account Interest Rates of September 2024 Our top-ranked high-yield savings accounts By The Balance Editors The Balance Editors We’re a team of writers and editors with decades of experience researching and answering questions about personal finances. We believe everyone should feel confident when making money decisions, and that passion drives us to make The Balance the best place to learn about finances. learn about our editorial policies Updated on August 30, 2024 Fact checked by Madeline Simpson We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more. A savings account is a good place to keep money safe and liquid, but it’s not a great place to earn money, right? Not necessarily. Some banks and credit unions offer savings accounts with respectable interest rates that rival the rates earned with CDs—but without the restrictions. We review more than 150 banks and credit unions every weekday to find the best savings rates and deals. These high-interest savings accounts are available to customers nationwide, and your funds are federally insured up to $250,000 per depositor per institution. We start by finding the highest rates, and we favor accounts with low minimum deposit requirements and friendly fee structures. We also include money market accounts if they function like savings accounts. That means if an account pays a high yield and doesn’t allow you to write checks, it’s in the mix. We evaluate savings accounts that are widely available throughout the U.S. to identify the best high-interest savings accounts. For this round-up, we primarily look at the annual percentage yield (APY) offered, but to help you compare options, we also consider factors like how quickly interest compounds, how easily you can make deposits, and customer service availability. Best High-Yield Savings Accounts Bank or Credit Union APY Requirements Poppy Bank 5.50% $0 to open and $1,000 to earn stated APY Western Alliance Bank 5.31% $500 to open and $0 to earn stated APY Forbright Bank 5.30% $0 to open and earn stated APY Vio Bank 5.30% $100 to open and $0 to earn stated APY Ivy Bank 5.30% $2,500 to open and earn stated APY BrioDirect 5.30% $5,000 to open and $25 to earn stated APY TotalBank 5.26% $25,000 to open and $2,500 to earn stated APY Newtek Bank 5.25% $0 to open and earn stated APY UFB Direct 5.25% $0 to open and earn stated APY Evergreen Bank Group 5.25% $100 to open and $0 to earn stated APY We partnered with the following banks to bring you the savings account offers in the table below. Under that, you'll find additional details on our editors' picks for the best high-interest savings accounts and rates as of Aug. 30, 2024. All of the banks and credit unions listed are insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA). Best Savings Account Interest Rates of September 2024 View All Best Savings Account Interest Rates of September 2024 Our Top Picks Poppy Bank Premier Online Savings Western Alliance Bank Forbright Bank Growth Savings Vio Bank Cornerstone Money Market Savings Ivy Bank BrioDirect High-Yield Savings TotalBank Newtek Bank UFB Direct High Yield Savings Evergreen Bank Group See More (7) Best High-Yield Savings Accounts FAQs Poppy Bank Premier Online Savings Poppy Bank, based out of Santa Rosa, California, was formed in 2005 and has several branches throughout California, in addition to loan offices in New York, South Carolina, Texas, and Utah. In addition to high-interest savings, Poppy Bank offers checking, CD, and money market accounts, personal and commercial lending, and credit cards. Customers nationwide can bank with Poppy through online banking, its mobile app, or MoneyPass ATMs. Pros Mobile account tools, including check deposits High interest rates Cons No in-person locations outside of California Western Alliance Bank Western Alliance Bank is a large bank headquartered in Phoenix, Arizona, that dates back to 2003. They offer all standard banking products and offer mobile and online access. Forbright Bank Growth Savings Forbright began as Congressional Bank in 2003 and changed its name in January 2022. It markets itself as committed to environmental sustainability and has pledged to dedicate half its portfolio to clean-energy products and sustainability businesses by 2025. It is a full-service banking institution headquartered in Maryland with branches there and in Virginia. Customers have options for checking, savings, CDs, lending, and most other standard banking products. Customers can sign up for ebanking to manage accounts online. Pros No minimum deposit required to start saving Full range of accounts available Cons Few physical locations Vio Bank Cornerstone Money Market Savings Vio Bank is yet another online-only division that offers a small menu of CDs and high-yield savings and money market accounts, and is a part of a larger firm. In this case its parent is MidFirst Bank, based out of Oklahoma City, Oklahoma, and it’s nothing to sneeze at. MidFirst Bank has almost $23 billion in assets, which lends a note of credibility and sustainability to this bank over smaller institutions. But remember, your money is insured by the FDIC (or NCUA, for credit unions) up to $250,000 whether you bank here or with the small credit union down the street. Pros Customer service by phone seven days per week No monthly fees, regardless of balance Cons No checking accounts available Learn More Ivy Bank Ivy Bank is an online bank backed by Cambridge Savings Bank, which has been in business since 1834 and has $5 billion in assets. Their account offerings include a standard high-interest savings account and savings account indexed to the one-month Treasury yield. They offer online banking and a highly rated mobile app. The opening deposit required is $2,500. Pros Accounts are simple to set up online or via the app Offers mobile deposit Cons No branches for in-person banking Learn More BrioDirect High-Yield Savings BrioDirect is the online operation of Webster Bank. Its high-yield savings account requires a minimum deposit of $25. There are no monthly fees, and you can fund your account from a linked bank account, checks, or wire transfers. Brio also offers CDs and a money market accounts. Pros No-frills accounts with high rates Multiple options for funding your account Cons Doesn't offer a full range of banking products Learn More TotalBank TotalBank is a division of City National Bank of Florida, which was founded more than 75 years ago. TotalBank keeps the product lineup simple, with money market accounts and CDs with terms of up to five years. Anyone in the U.S. (except those in Florida, Puerto Rico, American Samoa, Guam, Northern Mariana Islands, and U.S. Virgin Islands) can open a money market or CD account. Pros Good interest rates No maintenance fees Cons No physical locations Learn More Newtek Bank Newtek Bank, a subsidiary of NewtekOne, has been in business for more than 20 years. The bank is focused on business checking and savings accounts, but also offers personal high-yield savings accounts and certificates of deposit. Opening an account with Newtek Bank is a straightforward online process. Pros 24/7 Customer service High interest rates Cons No branches for in-person banking UFB Direct High Yield Savings UFB Direct is a subsidiary of Axos Bank, itself an online-only institution. UFB Direct offers savings account and money market accounts. If you’re looking to borrow, the bank offers mortgages through its parent. There’s no minimum to open this account. Interest is compounded daily and credited monthly. Pros Mobile account tools including check deposit Money market account for payments Cons Limited banking services Learn More Evergreen Bank Group Evergreen Bank Group was founded in 2006 in Oak Brook, Illinois. It has grown to have three Chicagoland branches, over $1.5 billion in assets, and a robust online banking business. They offer all standard banking products, including high-yield savings and CD accounts; home, business, and personal loans; and credit cards. Joining Evergreen Bank group is free and can be accomplished in minutes online. Pros Online and mobile banking No monthly fees Cons Few in-person locations Frequently Asked Questions What Is a High-Interest Savings Account? A high-interest savings account, also known as a high-yield savings account, helps you grow your money while keeping it accessible. Savings accounts often pay interest on your deposits, but interest rates vary from bank to bank. What makes high-interest accounts unique is a relatively high rate on your balance: Top rates on these accounts are often 20 or more times the national average savings rate, multiplying your earnings.As you earn interest on your savings, you can leave the money in your account and allow the funds to compound. Put another way, you earn interest on the interest payments you received in previous months. The higher your rate, the faster your money grows. What Should You Look for in a High-Yield Savings Account? The interest rate is the feature that most people pay attention to when shopping for a high-yield savings account. Compare banks and pick a competitive rate, but don’t ignore other critical features.Low fees are crucial: If you’re paying monthly maintenance fees, you might wipe out any earnings in your account (or even see your account balance fall each month).Verify that your money will be safe: Banks should be FDIC-insured, and the safest credit unions provide NCUSIF coverage.Select a bank that will be convenient to work with. Evaluate how you’ll use the account, and find a bank that fits your needs. For example, if you want to deposit checks frequently, make sure the bank offers mobile deposit. If you withdraw cash regularly, choose a bank with a convenient ATM network or ATM rebates. Why Do Savings Account Rates Change? The interest rate on your savings account changes over time. In some cases, the rate remains the same over extended periods. But when rates in the broad economy change, banks typically move in sync with those changes. If the Fed cuts rates, there’s a good chance that your savings account rates will remain stagnant or fall. When rates rise, banks tend to increase rates, but not necessarily as quickly as you’d like. Why Are Some Bank Interest Rates Higher Than Others? How much interest you earn can vary quite a bit, but interest rates tend to be lower at big brick-and-mortar banks and higher at online banks.Banks raise rates when they want to gather money. If they need to get deposits in the door, a high rate on savings accounts attracts customers. If, on the other hand, they don’t need cash, they can keep rates lower.Banks have different approaches to earning money. Some take deposits and lend them out, while others take a more varied approach (earning revenue and fees from other services like credit cards and ancillary business).Organizational structure is also important. Some banks have shareholders demanding that the bank grow (and/or share income with the shareholders), and those demands may make it harder to pay high rates to depositors. However, some banks are able to keep only what they need to pay the bills and share the rest of the revenue (from loans, ATM fees, etc.) with account holders. Small banks and credit unions are most likely to fit the latter model. Is Savings Account Interest Taxable? Interest you earn in your savings account is generally taxable as income. Your bank typically reports your earnings on Form 1099-INT, and you should provide that information to your tax preparer or include it with your tax filings.With individual accounts, joint accounts, and other taxable accounts, you’ll pay tax on the interest you receive as income for the year. But if your account is part of a retirement account like an IRA, you may be able to postpone or avoid taxation on that interest. CDs enable you to lock in a rate that doesn’t change, but there are pros and cons of using CDs. Keep an eye out for a 1099-INT in the mail during tax season. You may also be able to download the form through your online banking portal. Banks are not required to provide a 1099-INT unless you earn at least $10 during the year. However, interest income below $10 is still taxable and you must report all interest income to the IRS even if you didn't receive a 1099-INT. Article Sources FDIC. "Deposit Insurance." TotalDirectBank. "About Us." NewtekBank. "About." Evergreen Bank Group. "Get To Know Us." Evergreen Bank Group. "Financial Information." Federal Deposit Insurance Corporation. "National Rates and Rate Caps." Internal Revenue Service. "Topic No. 403 Interest Received." Internal Revenue Service. "Topic No. 403 Interest Received." 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