If you don't already have a high yield savings account, why not? By not taking advantage of saving rates, which are currently very high, you're leaving money on the table. Easy money. Setting up a high-yield savings account is simple and straightforward, making it a no-brainer place to save your cash. You'll earn interest on your money over time, with zero effort on your part.
Currently, savings rates on high yield accounts are notably high. They initially began rising in March 2022, when the Fed began hiking interest rates in an attempt to combat high inflation. But at its latest meeting, the Federal Reserve decided to once again keep the federal funds rate steady. This fifth consecutive pause in rate hikes means the federal funds rate, a key bank lending rate, will remain at a target range of 5.25% to 5.5%, the highest it’s been in 23 years. And three interest rate cuts are projected for later this year, meaning savings rates will likely decrease further throughout 2024.
Although for now, some of the top earning savings accounts are offering rates over 4% to 5%, significantly higher than the national average of 0.57% for traditional savings accounts.
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High yield savings accounts
Here are some of the top earning high yield savings accounts available today:
Poppy Bank
APY: 5.50%
Minimum opening deposit: $1,000
My Banking Direct
APY: 5.55%
Minimum opening deposit: $500
Brio Direct
APY: 5.35%
Minimum opening deposit: $5,000
Ivy Bank
APY: 5.30%
Minimum opening deposit: $2,500
TAB Bank
APY: 5.27%
Minimum opening deposit: $0
UFB Direct
APY: 5.25%
Minimum opening deposit: $0
Newtek Bank
APY: 5.25%
Minimum opening deposit: $0
Evergreen Bank Group
APY: 5.25%
Minimum opening deposit: $100
Jenius Bank
APY: 5.25%
Minimum opening deposit: $0
Upgrade
APY: 5.21%
Minimum opening deposit: $1,000
Popular Direct
APY: 5.15%
Minimum opening deposit: $100
Opening a high yield savings account is a great option if you're looking for a risk-free way to maximize your savings. Unlike CDs, where your cash is locked away for a certain period of time, high yield savings accounts let you easily access the funds in your account. For this reason, they're good options for short-term savings goals or emergency funds. Plus, sometimes these accounts offer a savings account bonus, putting more money in your pocket.
Another way to browse rates on high yield savings accounts is by using our tool, in partnership with Bankrate, below.
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