High-yield savings accounts (HYSAs) represent a popular option for individuals looking to grow their savings with competitive interest rates. These accounts offer a way to earn more on deposited funds compared to traditional savings accounts, making them an appealing choice for those seeking to maximize their savings potential. At their core, High-Yield Savings Accounts are exactly as they sound: savings accounts that offer significantly higher interest rates compared to traditional savings accounts. These accounts are often offered by online banks or the online divisions of brick-and-mortar institutions, providing a convenient and accessible way to grow your savings.
Why High-Yield Savings Accounts Matter
The primary allure of HYSAs lies in their ability to generate substantial returns on your savings. The national average interest rate in the US is 0.57% as of February 2024, whereas typical HYSAs have an average of 5% APY. Thus, HYSAs can provide rates that are 10 to 12 times higher, generating higher savings.
Key Features and Considerations
When delving into HYSAs, it's crucial to grasp the essential features and considerations. These include minimum opening deposits, ongoing balance requirements, monthly maintenance fees, accessibility, insurance, and withdrawal limits. To assist you in your quest for the ideal HYSA, we've meticulously curated a list of the best rates available as of February 2024. Our rankings, based on extensive research and evaluation, feature the top APYs offered by reputable institutions across the nation.
Milli
Interest Rate: 5.50% APY
Minimum Opening Deposit: $0
Minimum Ongoing Balance: Any amount
Monthly Fee: None
FDIC Insurance: Yes
Withdrawal Limits: $1,000/day
Online Accessibility: Mobile app only
Poppy Bank
Interest Rate: 5.50% APY (guaranteed for 180 days)
Minimum Opening Deposit: $0
Minimum Ongoing Balance: $1,000
Monthly Fee: None with electronic statements; $5 otherwise
FDIC Insurance: Yes
Withdrawal Limits: First 6 withdrawals/month are free, afterwards there is a $5 per withdrawal fee
Online Accessibility: Yes
My Banking Direct
Interest Rate: 5.35% APY
Minimum Opening Deposit: $500
Minimum Ongoing Balance: Any amount
Monthly Fee: None
FDIC Insurance: Yes
Withdrawal Limits: Unlimited (however penalties may be imposed for early withdrawals)
Online Accessibility: Yes
BrioDirect
Interest Rate: 5.35% APY
Minimum Opening Deposit: $5,000
Minimum Ongoing Balance: $25
Monthly Fee: None; $5 with paper statements
FDIC Insurance: Yes
Withdrawal Limits: $25,000/withdrawal max per 3 business days, monthly withdrawal limit of $100,000/month
Online Accessibility: Yes
Vio Bank, Cornerstone Money Market Savings Account
Interest Rate: 5.30% APY
Minimum Opening Deposit: $100
Minimum Ongoing Balance: Any amount
Monthly Fee: None
FDIC Insurance: Yes
Withdrawal Limits: $25,000/withdrawal max per 3 business days, monthly withdrawal limit of $100,000/month
Online Accessibility: Yes
Ivy Bank
Interest Rate: 5.30% APY
Minimum Opening Deposit: $2,500
Minimum Ongoing Balance: $2,500
Monthly Fee: None
FDIC Insurance: Yes
Withdrawal Limits: 6 withdrawals/month max
Online Accessibility: Yes
TAB Bank
Interest Rate: 5.27% APY
Minimum Opening Deposit: $0
Minimum Ongoing Balance: Any amount
Monthly Fee: None
FDIC Insurance: Yes
Withdrawal Limits: Not specified
Online Accessibility: Yes
TotalDirectBank
Interest Rate: 5.26% APY
Minimum Opening Deposit: $25,000
Minimum Ongoing Balance: $2,500
Monthly Fee: None
FDIC Insurance: Yes
Withdrawal Limits: Not specified
Online Accessibility: Yes
Newtek Bank
Interest Rate: 5.25% APY
Minimum Opening Deposit: $0
Minimum Ongoing Balance: Any amount
Monthly Fee: None
FDIC Insurance: Yes
Withdrawal Limits: Not specified
Online Accessibility: Yes
UFB Direct
Interest Rate: 5.25% APY
Minimum Opening Deposit: $0
Minimum Ongoing Balance: Any amount
Monthly Fee: None
FDIC Insurance: Yes
Withdrawal Limits: Not specified
Online Accessibility: Yes
To summarize, High-Yield Savings Accounts (HYSAs) are a strong financial instrument to use to grow savings. With interest rates significantly surpassing the national average, these accounts provide an attractive opportunity to earn substantial returns on deposited funds. Take note of each HYSA’s capabilities and you’ll be able to find the right HYSA for your needs.