Thanks to high interest rates, you can earn some serious passive income with your savings right now. Unfortunately, most Americans are missing out.
Top high-yield savings accounts currently offer annual percentage yields (APYs) of 4.00% to 5.00% and more. But only about one-third (34%) of Americans use one of these accounts, according to a survey by The Motley Fool Ascent. If you haven't made a change yet because you're not sure which bank to pick, here are five high-paying options to explore.
1. Western Alliance Bank High-Yield Savings Premier: 5.31%
You'll be earning plenty of interest on your savings with Western Alliance Bank High-Yield Savings Premier. It offers an incredible 5.31% APY, the best rate I could find. With that rate and a $10,000 balance, you'd be earning $531 per year in interest.
There are no monthly maintenance fees with this account, either. The only requirement to know about is a minimum opening deposit of at least $500. You can go below that balance later, as there's no ongoing balance requirement.
Our Picks for the Best High-Yield Savings Accounts of 2024
American Express® High Yield Savings
APY 4.25% Rate info4.25% annual percentage yield as of August 2, 2024 Min. to earn $1 Open Account for American Express® High Yield Savings OnAmerican Express'sSecure Website. Member FDIC. | APY 4.25% Rate info4.25% annual percentage yield as of August 2, 2024 | Min. to earn $1 |
UFB Portfolio Savings Account
APY 5.15% Rate infoTo ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts. Min. to earn $0 Open Account for UFB Portfolio Savings Account OnUFB'sSecure Website. Member FDIC. | APY 5.15% Rate infoTo ensure you keep getting the highest rate at UFB, you'll need to keep an eye on their rates. Occasionally, the bank launches new accounts with higher rates. Existing accounts need to contact the bank to request being moved to one of these new accounts. | Min. to earn $0 |
Western Alliance Bank High-Yield Savings Premier
APY 5.31% Rate info5.31% annual percentage yield (APY) is accurate as of 7/11/2024 and subject to change at the Bank’s discretion. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. Min. to earn $500 to open, $0.01 for max APY Open Account for Western Alliance Bank High-Yield Savings Premier OnWestern Alliance Bank'sSecure Website. Member FDIC. | APY 5.31% Rate info5.31% annual percentage yield (APY) is accurate as of 7/11/2024 and subject to change at the Bank’s discretion. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY. | Min. to earn $500 to open, $0.01 for max APY |
2. LendingClub High-Yield Savings: 5.00%
The LendingClub High-Yield Savings account is another option with a competitive APY. It also has no monthly maintenance fees, and its opening deposit requirement is even lower at $100.
One of the unique perks with this LendingClub account is an ATM card. Many online savings accounts only let you withdraw money electronically. With these accounts, you need to plan ahead to get cash by transferring it to a checking account first. A LendingClub account allows you to withdraw money at an ATM whenever you want.
3. CIT Platinum Savings: 5.00% APY for balances of $5,000 or more
CIT Platinum Savings works a little differently than your typical online savings account. It earns a 5.00% APY for balances of $5,000 or more. Otherwise, it earns a paltry 0.25%. The minimum opening deposit is $100, and there are no monthly fees for this account.
The fact that you need to keep at least $5,000 deposited to earn the max rate could be a blessing or a curse. It's frustrating if you often dip into your savings. In that case, CIT Platinum Savings isn't for you. But if you're looking for motivation to maintain and grow your savings, the balance requirement could help you stick to that plan.
4. SoFi Checking and Savings: up to 4.60%²
As the name suggests, SoFi Checking and Savings is a combination account. It serves as a checking account and a savings account. To earn its maximum APY (up to 4.60%² for savings balances and 0.50% for checking balances), you need to meet one of the following requirements:
- Having direct deposit (no minimum amount required)
- Making $5,000 or more in qualifying deposits every 30 days
SoFi® gets rave reviews for how user-friendly it is, and it's ideal if you want to do all your banking in one convenient place. It also offers investment accounts. New customers can even earn a $300 cash bonus with qualifying direct deposits of $5,000 or more within 25 days. Terms apply.
5. E*TRADE Premium Savings: 4.50%
E*TRADE is best-known as a brokerage, but it also has an excellent high-yield savings account. With an E*TRADE Premium Savings account, you'll earn 4.50% on your savings. This account has no monthly fees and no minimum opening deposit or balance. Note that you do need to add money within the first 30 days to keep the account open.
While anyone could use this account, it makes the most sense for current E*TRADE clients. If you already have an E*TRADE brokerage account, you could open a savings account and one of its checking accounts. Then, you can handle all your banking and investing needs on one platform.
Don't settle for less
Saving money is hard work. By taking advantage of today's high rates, you can grow your savings more quickly.
High-yield savings accounts like the ones listed above are a safe place to put your money. They work just as well for protecting and managing your money as savings accounts from traditional brick-and-mortar banks. There's one key difference, though: They'll pay you a whole lot more interest.
These savings accounts are FDIC insured and could earn you 14x your bank
Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 14x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.
