High-Yield Savings Accounts Outshine Big Banks with Rates of 4%-5%

If you have a savings account at Chase, Bank of America, or Wells Fargo, you're earning virtually nothing in interest. However, smaller banks pay rates of 4%-5% on their high-yield savings accounts, with FDIC insurance protecting deposits at every bank. On every $10,000, a 4.50% savings account pays $450 a year, compared to just $1 at the three biggest banks. Moving your savings can earn substantially more, even if you keep your checking and other accounts at your big bank.

High-yield savings accounts are a smart way to grow your money, but many traditional banks offer minimal interest rates. Smaller banks, however, often provide significantly higher yields, making them a more attractive option for savers. This article explores the best high-yield savings accounts available, focusing on those that offer competitive Annual Percentage Yields (APYs) and minimal fees.

Best High-Yield Savings Accounts

1. UFB Portfolio Savings
- APY: 4.30%
- Pros: No minimum balance, no monthly fees, free ATM card.
- Cons: No physical branches.
- [1] https://www.cnbc.com/select/best-high-yield-savings-accounts/

2. EverBank Performance℠ Savings
- APY: 4.30%
- Pros: No minimum balance, no monthly fees, free ATM card.
- Cons: No physical branch locations.
- [1] https://www.cnbc.com/select/best-high-yield-savings-accounts/

3. Western Alliance Bank High-Yield Savings Account
- APY: 4.30%
- Pros: No minimum deposit, no monthly fees.
- Cons: Bank may charge non-sufficient funds fees.
- [1] https://www.cnbc.com/select/best-high-yield-savings-accounts/

4. SoFi® Checking and Savings
- APY: 3.80%
- Pros: No fees, up to $2 million of additional FDIC insurance, two-day early paychecks.
- Cons: Direct deposit requirement for bonus.
- [1] https://www.cnbc.com/select/best-high-yield-savings-accounts/

5. Marcus by Goldman Sachs® High-Yield Online Savings Account
- APY: 3.65%
- Pros: No minimum deposit, no monthly fees, no limit on withdrawals or transfers.
- Cons: Higher APYs offered elsewhere, no checking account option.
- [1] https://www.cnbc.com/select/best-high-yield-savings-accounts/

6. CIT Bank Platinum Savings
- APY: 4.00% (on balances of $5,000 or more)
- Pros: No monthly fees, low minimum deposit, option to add a checking account.
- Cons: Only earns high APY on balances of $5,000 or more.
- [1] https://www.cnbc.com/select/best-high-yield-savings-accounts/

7. Varo Online Savings Account
- APY: 5.00% (up to $5,000 with direct deposit)
- Pros: No minimum deposit, low minimum balance, option to add a checking account.
- Cons: Must meet requirements to earn higher APY, cash deposits through third-party services.
- [1] https://www.cnbc.com/select/best-high-yield-savings-accounts/

8. American Express® High Yield Savings Account
- APY: 3.50%
- Pros: No minimum balance, no monthly fees, 24/7 customer service.
- Cons: Higher APYs offered elsewhere, no checking account option.
- [1] https://www.cnbc.com/select/best-high-yield-savings-accounts/

9. Axos ONE® Savings and Checking Bundle
- APY: 4.46% (promotional rate)
- Pros: Checking and savings combined, over 95,000 fee-free ATMs.
- Cons: Promotional rate requires meeting certain conditions.
- [1] https://www.cnbc.com/select/best-high-yield-savings-accounts/

Conclusion

For those looking to maximize their savings, high-yield savings accounts from smaller banks offer significantly higher returns compared to traditional big banks. These accounts often come with minimal fees and no minimum balance requirements, making them an attractive option for savers. By choosing one of these high-yield savings accounts, you can earn substantially more interest on your savings, even if you keep your checking and other accounts at your big bank.

References

[1] https://www.cnbc.com/select/best-high-yield-savings-accounts/