As interest rates rise, many individuals are turning to high-yield savings accounts (HYSA) as a way to grow their savings with minimal risk. Unlike traditional savings accounts, which typically offer very low interest rates, high-yield savings accounts offer significantly higher returns, allowing you to make the most out of your hard-earned money. In this article, we’ll explore the best high-yield savings accounts in the U.S. for 2024, highlighting their key features, interest rates, and factors to consider when choosing the best option for your needs.
Why Choose a High-Yield Savings Account?
A high-yield savings account offers several benefits:
- Higher Interest Rates: With annual percentage yields (APYs) often above 4%, high-yield accounts enable your savings to grow faster than traditional accounts.
- FDIC Insurance: High-yield savings accounts are typically insured by the Federal Deposit Insurance Corporation (FDIC), ensuring your money is safe up to $250,000 per depositor, per bank.
- Accessibility: Most high-yield accounts allow easy access to your funds, making them an ideal choice for emergency savings.
- Low Risk: Unlike investments that come with market volatility, high-yield savings accounts provide a steady, predictable return.
Let’s dive into the top five high-yield savings accounts to consider in 2024.
1. Marcus by Goldman Sachs
APY: 4.30%
Minimum Deposit: $0
Monthly Fees: None
Overview
Marcus by Goldman Sachs is consistently one of the top-rated high-yield savings accounts, offering competitive APYs and excellent customer service. Known for its simplicity and user-friendly platform, Marcus provides an attractive option for savers looking for both high returns and flexibility.
Key Features
- No Minimum Deposit Requirement: Open an account with any amount, making it accessible to all savers.
- No Monthly Fees: Marcus charges no maintenance or transaction fees, ensuring that your returns remain untouched.
- Easy Transfers: You can easily transfer funds between Marcus and other banks, and set up automatic transfers to build your savings.
- FDIC Insured: Like most high-yield accounts, Marcus is FDIC-insured up to the standard limit, providing added security.
Pros
- High APY compared to many other options
- Simple, transparent terms with no hidden fees
- Strong reputation and customer service
Cons
- No physical branches, so it’s entirely online
- Limited additional features beyond savings accounts
Ideal For: Individuals looking for a simple, high-yield account with no fees and strong customer service.
2. Ally Bank Online Savings Account
APY: 4.20%
Minimum Deposit: $0
Monthly Fees: None
Overview
Ally Bank has built a solid reputation as an online-only bank offering competitive savings products. Their high-yield savings account provides a robust APY and offers a range of convenient tools for managing and growing your savings.
Key Features
- No Minimum Deposit Requirement: You can start saving without a required minimum balance.
- Buckets Feature: Ally’s “Buckets” feature allows you to segment your savings into different categories, such as travel, emergency fund, or home expenses.
- Savings Boosts: Ally offers tools like “Surprise Savings” which analyzes your checking account and moves small amounts into your savings when you can afford it.
- Mobile App and Online Access: Ally has a well-rated mobile app, making it easy to manage your account on the go.
Pros
- Innovative savings tools that help with budgeting and goal-setting
- Competitive APY
- No fees, which allows your savings to grow faster
Cons
- Online-only banking with no physical locations
- No cash deposits
Ideal For: Savers who prefer a comprehensive digital banking experience and tools to help them manage different savings goals.
3. American Express® High Yield Savings Account
APY: 4.25%
Minimum Deposit: $0
Monthly Fees: None
Overview
Known primarily for its credit card offerings, American Express also provides a high-yield savings account with a very competitive APY. It’s a great option for customers who want to keep their banking products in one place.
Key Features
- No Minimum Balance Requirement: Open and maintain the account with any balance amount.
- No Monthly Fees: There are no maintenance fees, so you retain more of your interest earnings.
- Trusted Brand: American Express is known for its quality customer service and security, making it a reliable choice.
- 24/7 Access to Your Account: Manage your account at any time through their online banking platform.
Pros
- Competitive interest rate
- No fees or minimum balance requirement
- Access to American Express’ highly rated customer service
Cons
- Limited options for direct deposits and no checking account options for everyday spending
- No physical branches
Ideal For: Existing American Express customers who want a simple savings account with a high APY and who prefer a trusted brand.
4. Discover Online Savings Account
APY: 4.35%
Minimum Deposit: $0
Monthly Fees: None
Overview
Discover’s Online Savings Account offers a highly competitive APY, and it’s backed by a bank with an excellent reputation for customer service. With no minimum deposit requirement and no fees, this account is designed to be accessible and rewarding.
Key Features
- No Minimum Balance: Open an account with any amount, making it easy for anyone to get started.
- No Monthly Fees: Keep more of your earnings with Discover’s fee-free savings account.
- 24/7 Customer Service: Discover is known for its customer support, which is available around the clock.
- User-Friendly Platform: Manage your savings through Discover’s website and mobile app, both of which are easy to use and highly rated.
Pros
- High APY that beats many other competitors
- Excellent customer service
- Straightforward, no-fee structure
Cons
- Limited account types beyond savings
- No access to physical branches
Ideal For: Individuals looking for a high APY with a reliable online bank and excellent customer service.
5. Capital One 360 Performance Savings
APY: 4.15%
Minimum Deposit: $0
Monthly Fees: None
Overview
Capital One’s 360 Performance Savings account combines a high APY with the convenience of physical branch access. Capital One is one of the few traditional banks offering a competitive high-yield savings account, making it ideal for people who want the flexibility of in-person banking along with an online experience.
Key Features
- No Minimum Deposit: Open and fund your account with any amount.
- No Fees: No monthly fees or minimum balance requirements.
- Physical Branch Access: Capital One offers the option to visit physical branches, which is rare among high-yield savings accounts.
- ATM Access: You can withdraw funds from your savings account at any Capital One ATM.
Pros
- Physical branches for those who prefer some in-person banking options
- High APY and no fees
- Easy access to funds through ATMs
Cons
- APY may not be as high as some online-only banks
- Limited banking products compared to larger banks
Ideal For: Savers who prefer a high-yield account but also want the option to visit a physical branch or access funds at an ATM.
How to Choose the Right High-Yield Savings Account for You
When selecting a high-yield savings account, consider the following factors:
- Interest Rate (APY): The APY is the primary factor that affects your earnings. Look for accounts with the highest APY, but make sure they don’t come with hidden fees that could reduce your returns.
- Fees and Minimum Balance Requirements: Avoid accounts with monthly fees or high minimum balance requirements, as these can eat into your savings.
- Account Access: Determine if you need access to your funds through an ATM or a physical branch. Online-only accounts often offer higher APYs but lack physical locations.
- Additional Features: Some accounts come with tools to help you save or manage multiple savings goals. Features like Ally’s “Buckets” can be helpful for organizing your finances.
- FDIC Insurance: Make sure the account is FDIC-insured for added security. This ensures your deposits are protected up to the standard insurance limit.
Benefits of High-Yield Savings Accounts
- Liquidity: High-yield savings accounts typically allow for easy withdrawals, so you can access your funds when needed.
- No Lock-In Period: Unlike CDs, which require funds to be locked in for a set period, high-yield savings accounts let you deposit and withdraw funds anytime.
- Emergency Fund: HYSAs are ideal for emergency funds, offering a balance of safety, accessibility, and growth.
Conclusion
High-yield savings accounts are an excellent way to grow your savings with minimal risk and easy access to funds. Each of the accounts reviewed here offers competitive APYs and various features, so you can find one that suits your financial goals and lifestyle.
Choosing the right high-yield savings account in 2024 depends on your personal preferences. If you value simplicity and high returns, Marcus or Ally might be the best fit. For those who prefer in-person access,