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Time to move your money: December's best high-yield savings accounts still pay up to 4.80% APY
The Federal Reserve cut its federal funds rate twice in 2024, putting downward pressure on the interest banks pay you for keeping your money with them. However, several high-yield savings accounts (HYSAs) still pay annual percentage yields (APYs) of up to 4.80%, even after these federal rate cut. This compares to the 0.01% APYs some of the biggest national banks like Chase and Bank of America pay.
Our list includes digital savings accounts from LendingClub, Barclays, Western Alliance Bank and more. The accounts on our list come with the same insurance from the Federal Deposit Insurance Corporation (FDIC) of up to $250,000 per depositor that you receive with big national banks. Some even offer higher FDIC coverage through partner banks.
To better understand what higher yields can mean for you, consider a $10,000 savings balance over 12 months: With 0.01% APY, you’d earn just $1 in interest. However, with 4.00% APY, you’d make $400 — significantly more interest income on the same balance.
With that in mind, here’s our editorial roundup of the best high-yield savings accounts on the market today.
The best online high-yield savings accounts
1. LendingClub LevelUp Savings: Up to 4.75% APY
LendingClub LevelUp Savings tops our list thanks to its fund accessibility via unlimited ATM rebates, despite its marginally lower APY. LendingClub is an innovative financial technology company focused on improving how people save and borrow money. This commitment reflects on its LevelUp Savings account paying out up to 4.75% APY — one of the highest-yield options you can find on the market.
To earn 4.75% APY, you’ll need to receive one or more deposits totaling $250 or more monthly. These can be bank transfers, check deposits, payroll or more. What I like about this requirement is that it encourages savers to continue growing their balance by at least $250 every month. If you can’t meet this requirement, you’ll earn a lower (though decent) APY of 3.75%.
LendingClub LevelUp Savings requires no monthly maintenance fee, minimum opening deposit or minimum balance. This removes potential entry barriers to open this account, which you can complete online in minutes. Soon after LendingClub approves your application, you’ll receive a debit card that lets you access your funds from any U.S. or international ATM without fees. Plus, LendingClub will refund you any fees charged by the ATM operator. The one drawback to this account is that LendingClub only operates online, so you can’t get in-branch support.
- Up to 4.75% with $250+ monthly deposit
- $0 monthly maintenance fee
- $0 opening deposit
- Fee-free ATM access and unlimited ATM operator refunds
- No physical branches
2. Barclays Tiered Savings: Up to 4.80% APY
Barclays Tiered Savings is a potentially lucrative option from a traditional bank that fits people with large savings balances. Requiring no monthly maintenance fee or minimum opening deposit, the account offers a tiered APY that starts at 4.50% for balances under $250,000 and increases to 4.80% for balances of $250,000 or more.
The Tiered Savings account also doesn’t require a minimum balance to earn interest. However, you can deposit a maximum of $1 million per account. If you're lucky enough to have savings topping $1 million, Barclays allows you to spread your money across up to three Tiered Savings accounts and earn high interest on each balance.
Barclays is one of the oldest banks in the United Kingdom. Today, it operates in more than 29 countries, including the United States. However, Barclays uses an online-only model in the U.S., so you won’t have branch access with your Tiered Savings account. This also limits your deposit options to bank transfers and check deposits.
- Up to 4.80% APY on balances of $250,000+
- $0 monthly maintenance fee
- $0 minimum opening deposit
- No physical branches
- No cash deposits
3. Western Alliance High-Yield Savings Premier: 4.46% APY
Western Alliance Bank
Western Alliance Bank’s High-Yield Savings Premier offers an eye-popping 4.46% APY with no minimum balance requirement and a $0 monthly maintenance fee. It’s why I chose this account to store the bulk of my savings, and if you’re looking for a stable, high-yield savings option, you’ll likely agree.
Western Alliance Bank was founded in 1994 and today it’s the 33rd largest bank in the U.S. with over $80 billion in assets. You can open this account online in about five minutes, but there’s a $500 minimum opening deposit requirement.
Keep in mind that as an online savings account, it lacks the option for in-person services — a typical drawback among HYSAs. Another minor drawback is that, unlike other accounts on our list, you'll need to wait five days after each deposit to withdraw money you send to this account.
- 4.46% APY on all balances with a $0.01 minimum balance requirement
- $0 monthly maintenance fee
- $500 minimum opening deposit
- No physical branches
- 5-day hold period on incoming funds to be available for withdrawal
4. CIT Platinum Savings: Up to 4.55% APY
CIT Bank’s Platinum Savings account offers a lucrative APY of 4.55%, but this rate requires a daily balance of $5,000 or more. This shouldn't be a problem if you have a large savings balance you're looking to put to work. But keep in mind that dipping below this amount by the end of any given day drops your rate for this day to a much lower 0.25% APY — a stiff penalty. However, if your balance recovers by the end of the following day, you should earn the higher APY.
Although the highest APY rate requires a $5,000 daily balance, CIT Platinum Savings has no minimum balance requirement. You’d just earn much lower interest on balances below $5,000, but you don’t have to meet any requirements to benefit from its $0 monthly maintenance fee. Keep in mind that this account requires an opening deposit of $100.
CIT Bank is an online-only division of First Citizens Bank, one of the largest U.S. banks with more than 500 branches in 21 states. Unfortunately, as a CIT Bank client, you won’t have access to in-person support at First Citizens branches. But you can still reach client support through email and over the phone.
- Up to 4.55% APY on daily balances of $5,000+
- $0 monthly maintenance fee
- 0.25% APY on daily balances below $5,000
- $100 minimum opening deposit
- No in-person support at its First Citizens parent bank
5. BMO Alto Online Savings: 4.45% APY
The BMO Alto High-Yield Online Savings Account offers an impressive APY of 4.45%, one of the best rates available today. This competitive rate applies to your entire balance, whether it’s $5 or $500,000, making it a great fit for if you want a straightforward HYSA with no minimum requirement.
This Online Savings account stands out with its $0 monthly maintenance fee, $0 minimum opening deposit and $0 balance requirement. It means you can begin earning interest on your initial balance immediately with no monthly cost to eat into what you earn.
BMO Alto is a division of BMO Bank, the 13th largest bank in the United States with over $260 billion in assets. However, while BMO Bank supports 988 branches in 22 states, none of these branches serve BMO Alto customers. This limits your support options to online and phone services. This also means that BMO Alto Online Savings doesn’t accept cash deposits, so you’d have to deposit cash into a different bank account before transferring them to BMO Alto.
- 4.45% APY on all balances with $0 minimum balance requirement
- $0 monthly maintenance fee
- $0 opening deposit
- No in-person support at BMO Bank branches
- No cash deposits
6. Upgrade Premier Savings: Up to 4.41% APY
Upgrade Premier Savings offers up to 4.41% APY on balances of $1,000 or more. Upgrade, a financial technology company founded in 2016, partners with Cross River Bank to offer this competitive high-yield account that helps grow your savings faster than traditional bank accounts.
What makes this account particularly appealing is its straightforward approach — there's no monthly maintenance fee and no minimum balance requirement after the initial $1,000 deposit. Plus, your money stays protected thanks to FDIC insurance coverage up to $1 million through Upgrade's network of partner banks, four times the typical coverage you'd get at most banks.
The online banking experience impressed me with its clean, easy-to-read interface that makes it simple to track your interest earnings and transfer money between accounts. You can access your account 24/7 through Upgrade's website or mobile app, though you'll need to link an external bank account since Upgrade doesn't accept cash deposits or provide ATM cards for its savings accounts.
Keep in mind that you'll earn no interest on days when your closing balance drops below $1,000. This means that if you make a withdrawal that brings your balance to $900 and the day ends without pumping up your balance back above $1,000, you'd lose that day's interest earnings. However, if you make a deposit that brings it above $1,000 before closing, you'd earn that day's interest.
- 4.41% APY on balances of $1,000+
- No monthly maintenance feest
- Up to $1 million in FDIC insurance coverage
- 0% APY on days with balances below $1,000
- No physical branches
- No ATM access or cash deposits
7. Wealthfront Cash Account 4.25% APY
Wealthfront Cash Account is one of my favorite high-yield accounts since it combines the benefits of an HYSA with the flexibility of a checking account. As a cash management account, it provides an attractive 4.25% APY while offering a debit card that makes it easy for me to pay for everyday expenses with access to a nationwide network of 19,000 fee-free ATMs.
Wealthfront is a registered brokerage that was founded in 2008. It partners with Green Dot Bank to offer its Cash Account with a $0 monthly maintenance fee and $1 minimum opening deposit. There’s no minimum or maximum balance to earn 4.25% APY, which makes it easy for anyone to save in this account. On top of that, you receive up to $8 million in FDIC insurance via its network of partner banks — 32 times the typical coverage you receive with most banks.
The combination of high yields and checking features make this account a solid option for growing your savings with easy access to it. However, as an online-only investment and banking platform, Wealthfront doesn’t have physical branches. Still, you can deposit up to $3,000 a day in cash at such retailers as Walgreens or CVS for a fee of up to $5.95 per deposit.
- 4.25% APY on all balances with $0 minimum balance requirement
- $0 monthly maintenance fee
- $1 minimum opening deposit
- Debit card and checking features
- Up to $8 million in FDIC insurance
- No physical branches
- Cash deposit fee of up to $5.95 per transaction
8. SoFi Savings: Up to 4.00% APY
As a SoFi member since 2022, I find this bank’s Checking and Savings bundle particularly appealing, especially for those on fixed incomes. The savings account offers you up to 4.00% APY with direct deposits of any amount, such as your payroll, pension or Social Security payments, while the checking account unlocks access to a debit card and a network of more than 55,000 fee-free ATMs.
SoFi Checking and Savings also requires no monthly maintenance fee or minimum opening deposit. While direct deposits are the easiest way to earn the highest APY rate, you can also qualify for the highest rates by receiving $5,000 or more in monthly deposits, including bank transfers and check deposits. Without meeting these requirements, the APY you earn on your savings drops to 1.20%.
For savvy budgeters, SoFi Savings comes with Vaults — a tool that allows you to create up to 20 separate savings buckets for goals such as an emergency fund, vacation savings or a reserve to cover healthcare expenses. SoFi also offers up to $2 million in FDIC insurance. However, as an online-only bank, SoFi doesn’t support physical branches and only accepts cash deposits through partner retailers such as CVS or Target at a cost of up to $4.95 per transaction.
- Up to 4.00% APY with direct deposits or $5,000+ monthly deposits
- $0 monthly maintenance fee
- $0 minimum opening deposit
- Debit card and checking features
- Up to $2 million in FDIC insurance
- 1.20% APY without direct deposits or $5,000+ monthly deposits
- No physical branches
- Cash deposit fee of up to $4.95 per transaction
Benefits of a high-yield savings account
High savings potential. Without the overhead of a brick-and-mortar bank, digital banks can offer significantly higher interest on your deposit investment — up to 10 times the national average when compared to a traditional savings account.
No or low fees. The best digital banks and online accounts come with few fees and low minimum deposit requirements, making it easy to maintain your account long term.
Convenient access to your money. View real-time balances and electronically deposit or transfer money through an app or your online account at any point.
Federally insured up to $250,000. High-yield savings account deposits are insured by the FDIC or the NCUA for up to $250,000 per person, per account.
Dig deeper: How much should you keep in a high-yield savings account?
Drawbacks of a high-yield savings account
Transfers may not be instant. Depending on the bank, you may need to wait up to three days for transfers to or from your account to clear. Many banks allow you to link accounts at other banks for faster transfers, so read the fine print to understand your options and wait times.
Limited deposit and withdrawal options. Online banks generally don’t have their own branches and ATMs — instead, they partner with existing ATM networks. To deposit cash into your high-yield savings account, you’ll need to find an in-network ATM that accepts deposits or deposit the cash into a linked account and then electronically transfer the amount into your savings.
Minimum opening deposit may be required. Some high-yield savings accounts require a high opening deposit to earn the best advertised APY. Carefully read the account’s terms and conditions before signing up.
Dig deeper: Can you lose money in an HYSA? It's unlikely — but here's what to watch out for
How to compare the best high-yield savings accounts
Digital banking opens up more competitive rates and fewer fees than your neighborhood branch, and it offers robust apps that make it easy to manage money among everyday accounts, including digital check deposits — all from your smartphone or tablet.
Yet interest rates on high-yield savings accounts are variable, meaning the high rates you see today can change over time, and you could be earning a lower rate when the Fed cuts its benchmark interest rate later this year.
So while it's smart to consider APY, make sure the account you choose fits the way you like to bank, along with other factors that include:
Promotional rates. Today's HYSAs earn 5% APY and higher, making them a safe spot to grow your money toward a short-term goal or a rainy day. Yet some accounts offer promotional or limited-time rates to entice you to sign up before adjusting to a lower rate based on market conditions.
Low or no minimums. The best high-yield savings accounts require no minimum deposit or balance to earn high rates of interest, though other banks may require a minimum opening deposit or that you maintain a specific balance to avoid monthly service fees.
Ease of accessing your money. Look for flexibility that includes ATMs and mobile apps that accept checks for deposit — or branch access, if you prefer in-person banking.
FDIC or NCUA protections. Like other deposit accounts, HYSAs are federally insured for up to $250,000 per account, per person — which means your money is safe up to the limit.
Dig deeper: Key differences between online banks and traditional banks
Alternatives to a high-yield savings account
An HYSA offers flexible access to your money, but it isn’t the only low-risk way to earn interest on your savings. Look to these alternatives that offer safe, steady returns at rates that outpace traditional accounts.
Certificate of deposit. A CD guarantees a high fixed rate of return on a principal deposit at the end of an agreed-on term. CDs differ from an HYSA in that you risk a withdrawal penalty if you need to access your money before the CD matures — though a short-term CD ladder can help you leverage high-rates with rolling returns while interest rates are strong.
Money market account. Also called a money market savings account, the rate on an MMA can beat those of traditional savings accounts, with the same access to your money.
High-yield checking account. A high-yield checking account is like a money market account in that it combines high APYs with checking benefits, but with unlimited debit and check-writing privileges you won't find with an HYSA or MMA.
Higher-risk investments. Stocks, index funds and mutual funds average higher returns than HYSAs, yet with higher potential losses.
Dig deeper: High-yield savings accounts vs. CDs: Which is best for maximizing your money?
Frequently asked questions about HYSAs
Learn more about how high-yield savings accounts work when narrowing down the best for your budget, lifestyle and financial goals.
How does an HYSA interest rate compare to a traditional savings account?
High-yield savings accounts provide significantly higher earning potential when compared to traditional savings accounts that average 0.43% nationally, letting your dollars work harder over time. HYSAs offer the convenience of online accessibility and minimal fees, giving you a secure and efficient way to manage your money.
What is compound interest?
Compound interest is often described as earning interest on your interest. It’s a powerful way to boost your savings over time by earning interest on both your initial deposit and any interest you earn along the way. An account's APY is the total amount of interest you'll earn on your deposit over one year, including compound interest, expressed as a percentage, with many HYSAs compounding daily or monthly. Learn more in our guide to the power of compounding.
Do I need to pay taxes on an HYSA?
Yes. Interest you earn on your high-yield savings account is considered taxable income by the IRS. If you earn more than $10 in interest in a calendar year, your bank or financial institution will send you a Form 1099 to file with your annual tax return.
How do banks make money on a high-yield savings account?
Banks charge higher interest rates on money they lend out to borrowers than the interest they pay on customer deposit accounts. The difference is called a spread, and it’s what banks rely on to make money.
Online banks and digital accounts don't require the overhead of brick-and-mortar branches, allowing them to pass along savings to you in the form of even higher APYs than you might find in your neighborhood.
Is my money safe with an online-only bank or digital account?
Yes. Digital banks and financial technology companies — for fintechs — can be FDIC-insured charter banks or partner with traditional banks to offer deposit accounts that are protected by the government for up to $250,000. The FDIC insures the safety of your money, even if the bank or fintech were to fail or go out of business. Look for terms like "member FDIC," "FDIC insured" or "NCUA insured" when comparing your options. Learn the steps to confirming your bank is insured in our guide to FDIC insurance.
How do I access my money with an HYSA?
High-yield savings accounts typically offer easy access to funds through online banking, mobile apps and ATMs. However, some accounts restrict the number of withdrawals you're allowed each month. Read the fine print to understand how easily and often you can access your money.
How we choose the best high-yield savings accounts
We review and collect data from various traditional and online banks to curate our editorial list of the best high-yield savings accounts. We evaluate each savings account based on factors that include:
Annual percentage yields (APYs). For people who want to grow their passive incomes, a small difference in APY can have a significant impact over time. That’s why we consider the annual yields that savings accounts offer as their primary function.
Monthly maintenance fees. Monthly costs eat into your savings over time. That’s why we favor HYSAs with no monthly fees or ongoing costs.
Minimum balance requirements. High account minimums can be a barrier for people who want to grow their savings over time. That’s why we mostly choose accounts that offer low or $0 minimums (though we included a few options for higher balances).
FDIC insurance. The typical FDIC insurance you receive with most banks is $250,000 per depositor. However, we include a number of financial institutions that offer higher FDIC insurance by partnering with a network of banks, which helps protect more of your money.
Debit card and ATM access. Most savings accounts offer limited accessibility to your funds, which can be cumbersome when you want to use your money on the go. That's why we weigh ATM accessibility and debit card options for each account we reviewed.
Our final list includes a mix of digital accounts from big-name banks and modern financial technology companies that lack brick-and-mortar branches. We evaluated traditional banks in our research but didn't find that APYs met our threshold for "high yield," nor were fees low enough compared with stronger accounts.
Because we did not evaluate all banks in the U.S., use our curated list as a starting point for your own research when narrowing down the best bank account for your budget, lifestyle and savings goals.
Sources
National Rates and Rate Caps, FDIC. Accessed December 4, 2024.
Large Commercial Banks, Federal Reserve. Accessed on December 4, 2024.
Editor's note: Annual percentage yields and promotional rates for some products can vary by region and are subject to change.
About the writer
Yahia Barakah is a personal finance writer at AOL with over a decade of experience in finance and investing. As a certified educator in personal finance (CEPF), he combines his economics expertise with a passion for financial literacy to simplify complex retirement, banking and credit topics. He loves empowering people to make informed financial decisions that improve their everyday and long-term wellness. Yahia's expertise has been featured on FinanceBuzz, FX Empire and EarnForex. Based in Florida, he balances his love for finance with freediving, hiking and underwater photography.
Article edited by Kelly Suzan Waggoner
