What is a High-Interest Savings Account?

A high-interest savings account is a type of savings account that offers a higher interest rate compared to standard savings accounts. These accounts are typically offered by banks and credit unions to encourage saving by providing a better return on deposited funds.

Key Features of High-Interest Savings Accounts

1. Higher Interest Rates: The most notable feature is the significantly higher interest rate compared to regular savings accounts.
2. Liquidity: Unlike certificates of deposit (CDs), HISAs offer easy access to your funds without penalties.
3. Safety: Deposits in these accounts are usually insured by federal agencies like the FDIC in the U.S., up to certain limits.
4. Low or No Fees: Many HISAs come with low or no monthly fees, making them cost-effective for savers.
5. Online and Mobile Access: Most banks provide online and mobile access to your account, allowing you to manage your savings conveniently.

Benefits of High-Interest Savings Accounts

1. Compound Interest: Your money earns interest, and that interest earns interest, compounding your earnings over time.
2. Emergency Fund: HISAs are excellent for building an emergency fund due to their liquidity and higher returns.
3. Goal-Oriented Savings: Whether saving for a vacation, a down payment on a house, or any other goal, HISAs can help you reach your target faster.
4. Financial Security: With insured deposits, your money is safe from bank failures.

How to Choose the Right High-Interest Savings Account

1. Interest Rate: Look for the highest APY (Annual Percentage Yield) available.
2. Minimum Balance Requirements: Ensure you can meet the minimum balance requirements to avoid fees and earn the advertised interest rate.
3. Fees: Consider any potential fees, such as maintenance fees, that could eat into your savings.
4. Accessibility: Check the ease of accessing your funds, including the availability of online and mobile banking.
5. Customer Service: Good customer service can be crucial if you need assistance with your account.

Top 35 Banks Offering High-Interest Savings Accounts

Below is a detailed look at 35 banks known for their competitive high-interest savings accounts, listed alphabetically for easy reference.

1. Ally Bank

Interest Rate: 4.00% APY
Minimum Balance: None
Fees: No monthly maintenance fees
Accessibility: Excellent online and mobile banking services
Customer Service: Highly rated

2. American Express National Bank

Interest Rate: 3.75% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Strong online and mobile access
Customer Service: Strong reputation for customer service

3. Barclays Bank

Interest Rate: 3.80% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Robust online and mobile banking
Customer Service: Good customer support

4. Capital One 360

Interest Rate: 3.90% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Excellent online and mobile banking
Customer Service: Highly regarded

5. Citi Bank

Interest Rate: 3.85% APY
Minimum Balance: $100
Fees: No monthly maintenance fees
Accessibility: Comprehensive online and mobile banking
Customer Service: Well-rated

6. Discover Bank

Interest Rate: 3.85% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Strong online and mobile banking services
Customer Service: Positive feedback

7. Marcus by Goldman Sachs

Interest Rate: 4.00% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Excellent online platform
Customer Service: Highly rated

8. Synchrony Bank

Interest Rate: 3.85% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Strong online and mobile banking
Customer Service: Good reputation

9. HSBC Direct

Interest Rate: 3.60% APY
Minimum Balance: $1
Fees: No monthly fees
Accessibility: Good online and mobile banking services
Customer Service: Mixed reviews

10. Vio Bank

Interest Rate: 3.75% APY
Minimum Balance: $100
Fees: No monthly maintenance fees
Accessibility: Reliable online banking
Customer Service: Generally positive

11. Axos Bank

Interest Rate: 3.70% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Strong online banking services
Customer Service: Positive reviews

12. Bank5 Connect

Interest Rate: 3.75% APY
Minimum Balance: $10
Fees: No monthly fees
Accessibility: Good online and mobile access
Customer Service: Well-regarded

13. CIT Bank

Interest Rate: 4.05% APY
Minimum Balance: $100
Fees: No monthly fees
Accessibility: Robust online platform
Customer Service: Positive feedback

14. FNBO Direct

Interest Rate: 3.60% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Good online and mobile banking
Customer Service: Positive reviews

15. PurePoint Financial

Interest Rate: 3.65% APY
Minimum Balance: $10,000
Fees: No monthly fees
Accessibility: Strong online banking
Customer Service: Mixed reviews

16. Radius Bank

Interest Rate: 3.75% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Excellent online and mobile banking
Customer Service: Well-rated

17. Salem Five Direct

Interest Rate: 3.75% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Good online banking
Customer Service: Positive reviews

18. SFGI Direct

Interest Rate: 3.75% APY
Minimum Balance: $1
Fees: No monthly fees
Accessibility: Good online banking
Customer Service: Generally positive

19. TIAA Bank

Interest Rate: 3.65% APY
Minimum Balance: $25
Fees: No monthly fees
Accessibility: Strong online platform
Customer Service: Positive feedback

20. UFB Direct

Interest Rate: 3.95% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Robust online banking
Customer Service: Well-regarded

21. BrioDirect

Interest Rate: 3.80% APY
Minimum Balance: $25
Fees: No monthly fees
Accessibility: Strong online platform
Customer Service: Positive feedback

22. Comenity Direct

Interest Rate: 3.75% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Good online and mobile banking
Customer Service: Positive reviews

23. First Foundation Bank

Interest Rate: 3.65% APY
Minimum Balance: $1,000
Fees: No monthly fees
Accessibility: Good online banking
Customer Service: Generally positive

24. MySavingsDirect

Interest Rate: 3.60% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Strong online platform
Customer Service: Mixed reviews

25. Northpointe Bank

Interest Rate: 3.60% APY
Minimum Balance: $25
Fees: No monthly fees
Accessibility: Good online banking
Customer Service: Generally positive

26. PNC Bank

Interest Rate: 3.60% APY
Minimum Balance: $1
Fees: No monthly fees
Accessibility: Comprehensive online and mobile banking
Customer Service: Well-rated

27. Popular Direct

Interest Rate: 3.75% APY
Minimum Balance: $5,000
Fees: No monthly fees
Accessibility: Good online banking
Customer Service: Mixed reviews

28. TAB Bank

Interest Rate: 3.65% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Strong online platform
Customer Service: Positive feedback

29. Live Oak Bank

Interest Rate: 3.70% APY
Minimum Balance: $1
Fees: No monthly fees
Accessibility: Good online and mobile banking
Customer Service: Positive reviews

30. Quontic Bank

Interest Rate: 3.65% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Strong online platform
Customer Service: Generally positive

31. First Internet Bank

Interest Rate: 3.65% APY
Minimum Balance: $100
Fees: No monthly fees
Accessibility: Robust online banking
Customer Service: Positive feedback

32. Varo Bank

Interest Rate: 3.80% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Excellent online and mobile banking
Customer Service: Well-regarded

33. Wealthfront

Interest Rate: 3.85% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Strong online platform
Customer Service: Positive feedback

34. SoFi Money

Interest Rate: 3.75% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Excellent online and mobile banking
Customer Service: Highly rated

35. Chime

Interest Rate: 3.70% APY
Minimum Balance: None
Fees: No monthly fees
Accessibility: Robust online and mobile banking
Customer Service: Positive reviews

How to Open a High-Interest Savings Account

1. Research: Start by researching different banks and comparing their offerings.
2. Gather Documentation: You’ll need identification (such as a driver’s license or passport) and proof of address.
3. Apply Online or In-Person: Most banks allow you to open an account online, but you can also visit a branch if preferred.
4. Fund Your Account: Transfer the initial deposit required to activate your account.
5. Set Up Online Banking: Ensure you have access to online and mobile banking for easy management of your funds.

Tips for Maximizing Your High-Interest Savings Account

1. Regular Deposits: Make regular contributions to your account to benefit from compound interest.
2. Avoid Withdrawals: Limit withdrawals to allow your savings to grow.
3. Monitor Interest Rates: Keep an eye on interest rates and switch banks if necessary to get the best rate.
4. Utilize Auto-Transfers: Set up automatic transfers from your checking account to your savings account.
5. Review Terms and Conditions: Be aware of any changes in terms, fees, or interest rates.

Conclusion

High-interest savings accounts offer a fantastic opportunity to grow your savings with minimal risk. By choosing the right account and managing it effectively, you can maximize your returns and achieve your financial goals. Whether you’re saving for a specific purpose or building an emergency fund, a high-interest savings account can provide the financial boost you need.

By exploring the offerings of the 35 banks listed above, you can find an account that meets your needs and helps you make the most of your hard-earned money. Start your savings journey today and watch your wealth grow with a high-interest savings account.