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You work hard for your money, so why not make it work hard for you? When you put your money in a savings account, you not only keep it safe, you help it grow faster.

The average savings account interest rate is 0.59% APY — but you can do much better with a high-yield savings account. These accounts work like traditional accounts but offer much higher interest rates — up to almost 10 times the national average. 

Here are some of the best high-yield savings accounts on the market.

The best high-yield savings accounts offer competitive interest rates, have no monthly fees, and require low or no minimum initial deposits. Rates are accurate as of July 2024. 

A high-yield savings account offers higher interest rates compared to traditional savings accounts. These accounts help you grow your savings while keeping your money accessible.

Theaverage savings account interest rate is 0.61% as of Dec. 4, 2023. But with a high-yield savings account, you can sometimes earn over 5%. That’s more than eight times the average rate.

It’s easy to see how much higher interest rates can lead to increased earnings.

High-yield accounts often offer features such as higher interest rates, low or no fees, and FDIC insurance. With these accounts, you can earn interest on your money without taking on too much risk.

“For short-term financial goals, such as a vacation, wedding, or a down payment on a house, or as a place to park your emergency funds, a high-yield savings account can be a smart choice,” Ohan Kayikchyan, certified financial planner at Ohan The Money Doctor, says.

By taking advantage of the higher interest rates, you can make your money work harder for you and achieve your financial goals faster.

The key difference between traditional accounts and high-yield accounts is how much interest you'll earn.

It’s common to find high-yield savings accounts at online banks. Most online banks don’t have the overhead costs of running physical branches. Because of that, they can pass those savings on to customers in the form of lower fees and higher rates. You may also find a high-yield savings account at some credit unions.

The best high-yield savings accounts don’t have monthly fees or minimum balance requirements, but some may.

“It's important to check whether there are balance requirements to waive the monthly maintenance fees on high-yield savings accounts,” Kayikchyan says. “In some cases, maintaining a specified balance is a condition for receiving the advertised APY.”

Pros and cons of a high-yield savings account

Consider the advantages and disadvantages of high-yield savings accounts before opening an account.

Selecting the best high-yield savings account can be a game-changer when it comes to growing your money. Here's a step-by-step guide to help you choose the right account for you. 

Take a moment to reflect on your financial goals. Are you saving for a short-term objective, like building an emergency fund or planning a vacation? Or are you focusing on longer-term goals, such as saving for a down payment on a home or preparing for retirement? Understanding your goals will help you prioritize the features and benefits that matter most to you in a savings account.

One of the primary reasons to choose a high-yield savings account is to earn a competitive interest rate on your money. Take the time to shop around and compare rates from multiple banks and credit unions. 

Don't forget to look beyond traditional brick-and-mortar institutions and consider online banks, which often offer higher rates due to lower overhead costs.

While a high interest rate is important, it's not the only factor to consider. Take a close look at the fees associated with each account, such as monthly maintenance fees, overdraft fees, and wire transfer fees. 

Some high-yield savings accounts may require a minimum balance to avoid fees or earn the advertised interest rate.

Think about how easily you need to access your funds. Some high-yield savings accounts may come with ATM access, mobile check deposit, or online bill pay, while others may have more limited features. Consider your banking preferences when evaluating the accessibility and convenience of each account.

Before making a final decision, carefully review the terms and conditions of each high-yield savings account you're considering. Look for any restrictions or limitations, such as maximum withdrawal amounts or required minimum deposit amounts.

To determine the best high-yield savings accounts, we carefully evaluated a wide range of factors, including interest rates, fees, minimum deposit and balance requirements, and product mix.

Our team analyzed numerous bank offers and selected the top contenders based on these key criteria. The options on this list represent the best value benefits available. Learn more about our methodology here. 

Most savers have nothing to lose by opening a high-yield savings account. In fact, you have a lot to gain by giving your money more opportunity to grow.

Opening a high-yield savings account can help you reach your financial goals faster with no extra effort on your end. Just make sure to do your research and find the right account that fits your needs.

Editorial disclaimer: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.

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