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High-yield savings accounts are simple, straightforward accounts that allow you to earn a higher APY (annual percentage yield) on your savings than a traditional savings account.1
Here’s an example showing the difference the savings account rate can make when you factor in daily compounding interest. We’ll look at a traditional savings account at the current average APY of 0.46% (as of Nov. 2, 2023) versus a high-yield savings account with a 4.00% APY.
| Traditional bank with 0.46% (as of Nov. 2, 2023) APY | High-yield savings account with 4.00% APY | Difference in savings | |
| Initial balance | $50,000 | $50,000 | $0 |
| One year balance | $50,231 | $52,040 | $1,809 |
| Five year balance | $51,163 | $61,069 | $9,906 |
Below, you’ll find some of the top high-yield savings accounts available today from our partners. Open a new account in minutes and supercharge your money with the power of compound interest!
Customers Bank Savings - 5.30% APY
Why we like it:
- Incredible 5.30% APY2 to boost your savings
- Powered by Raisin's intuitive savings marketplace
- Interest is compounded daily and posted to your account monthly
- Customers Bank, established in 2009, combines advanced technology with a personal touch in banking
- Enjoy 24/7 online access to your account and funds
- FDIC insured, no fees, $1 minimum deposit
CloudBank 24/7 Savings - 5.26% APY
Why we like it:
- Incredible 5.26% APY3 to boost your savings
- Interest is compounded daily and posted to your account monthly
- CloudBank 24/7 is a smart digital bank that can help you reach your financial goals without having to wait in lines
- Enjoy 24/7 online access to your account and funds
- FDIC insured through Third Coast Bank SSB, no fees, $1 minimum deposit
Valley Direct Savings - 5.25% APY
Why we like it:
- Earn 5.25% Annual Percentage Yield (APY)4 , one of the best rates we’ve seen
- $1 minimum opening deposit
- Tap into a powerful way to grow your wealth
- Watch your balance grow as interest is compounded daily and credited monthly
- Don't worry about maintenance fees, because they don't have them
- Enjoy knowing your money is secure and FDIC insured
Upgrade Premier Savings - 5.07% APY
Why we like it:
- Exceptional 5.07% APY5
on balances of $1,000 or more
- No monthly account fees
- Top-notch mobile app with secure, 24/7 access to your account
- View balances and transfer funds between accounts at any time
- US Based Customer Service
- Member FDIC through Cross River Bank
SoFi Checking & Savings - Earn a $250 bonus and up to 4.60% APY
Why we like it:
- Earn up to 4.60% APY11 and a $250 bonus with direct deposit
- No direct deposit minimum or balance minimum required
- No overdraft fees, minimum balance fees, or monthly fees
- Get paid up to two days early with direct deposit12
- Earn up to 15% cash back at local establishments10
- VIP access at SoFi Stadium and up 25% cash back on concessions and merch
- Savings up to 20% or more on select trips booked through SoFi Travel
- Access SoFi Financial Planning and more at no additional cost
- Additional FDIC Insurance up to $2 million available
How to get the bonus:
- Sign up and set up direct deposit.
- Wait for your direct deposit to hit your account (typically 2-4 weeks)
- Collect a cash bonus of $50 to $250 depending on your direct deposit amount and enjoy 4.60% APY on your money.
CIT Bank Platinum Savings - Up to 5.05% APY
Why we like it:
- 5.05% APY on balances of $5,000 or more13
- High-yield savings account, one of the nation’s top rates
- Daily compounding interest to maximize your earning potential
- No account opening or maintenance fees
- Deposit checks remotely and make transfers with the CIT Bank mobile app
- Member FDIC
Bottom Line
The Customers Bank high-yield savings account is the savings account you need to know about. At least, if you’re looking for one of the best “bang-for-your-buck” high-yield savings accounts out there. Customers Bank offers one of the highest APYs2 on this list, plus many other valuable benefits:
Earn a High APY: With Customers Bank, you get one of the highest-yield savings accounts on the market at 5.30% APY.
Supercharge Your Savings: With Customers Bank, interest is compounded daily and posted to your account monthly. As you put money into this high-yield savings account, you’re able to “supercharge” your savings and let your money grow.
Trusted Banking: Customers Bank is a trusted financial institution with experienced bankers who put you first.
24/7/365 Access: You won’t be limited to when or where you can access your funds. Enjoy 24/7 online access to your account whenever and wherever you need it.
FDIC Insured: Customers Bank is FDIC insured, there are no fees, and the minimum deposit is $1.
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Customers Bank High Yield Savings Account Benefits
- Incredible 5.30% APY2 to boost your savings
- Interest is compounded daily and posted to your account monthly
- Enjoy 24/7 online access to your account and funds
- FDIC insured, no fees, $1 minimum deposit
How to pick the right savings account for you
Figuring out how to choose a savings account can feel overwhelming, but it doesn’t have to. Here are a few factors to consider to help you find the perfect account for you:
- FDIC or NCUA coverage: Banks that are FDIC members and credit unions that are National Credit Union Administration (NCUA) members offer account holders up to $250,000 of insurance on qualifying account types. This gives you peace of mind that your money will be safe even if the bank or credit union fails.
- Interest rate or APY: Savings account interest rates and APYs are different ways of expressing the rate of the money you’ll earn by leaving your cash in your account. The higher your interest rate or APY, the more you’ll earn.
- Service fees: Ideally, you’d find a bank with no fees. However, some banks offer additional services that may be worth paying fees depending on your circumstances. Make sure you read the fine print to understand what fees you may be subject to before opening a new account.
- Minimum deposit requirements: Some accounts require you to deposit a certain amount just to open them. If you’ve already saved a lot, this initial deposit may not be an issue. But if you’re new to saving, you’ll want to take this into consideration and make sure you have this amount ready to deposit.
- Minimum balance requirements: You may have to pay monthly maintenance fees if you don’t meet monthly minimum balance requirements. Some banks do not have these requirements, which may be a factor you want to prioritize depending on your situation.
- Online bank versus physical branches: The best high-yield online savings accounts may offer higher interest rates because the bank has lower overhead, which means the bank won’t have physical branches you can visit. Brick-and-mortar banks have higher expenses to stay open and therefore usually have lower interest rates, but they’ll provide in-branch services. Decide whether you prefer in-person or online banking before opening an account. Some banks may even offer a blend, providing paper statements and paper check-writing as well as mobile check deposit.
- Customer service: Check how and when you can contact customer service if you anticipate needing help with your account. Some banks offer in-person, phone, or online chat support.
Many financial institutions offer easy access to your account, with online and app options; some don’t. Some may offer a variety of financial services, while others may not have physical locations. Make sure you know which are the best banks for offering the things that are important to you.
FAQs
Is my money safe in an online savings account?
Money in an online savings account is covered by protections as long as the account provider is FDIC insured, and virtually all major banks are. You'll typically see it stated as "member FDIC."
FDIC stands for Federal Deposit Insurance Corporation. The FDIC insurance covers accounts up to $250,000 accounts up to $250,000, so if your bank goes under financially, you will still get back all your money, up to that amount. The National Credit Union Administration provides similar insurance for credit unions.
What is a good interest rate for an online savings account?
Savings account interest rates vary from bank to bank and over time. The FDIC indicates the national average interest rate for savings accounts is 0.46% (as of Nov. 2, 2023) APY. That means if you see an account with a higher interest rate, it would allow you to beat the average.
What do I need to have to open an online savings account?
Requirements to open an online savings account vary by the financial institution. You generally need to provide your full name, address, contact details, and a Social Security number. Some banks also require you to provide your driver's license information. If you are planning to fund the new account with money from a different bank or credit union, you will also need that account information.
How do I deposit or withdraw money from an online savings account?
The process for depositing and withdrawing money from online savings accounts varies by bank or credit union. Generally, you can fund an online savings account via electronic transfer from another bank account, by direct deposit, or by depositing a check. Withdrawals can generally also be completed by bank-to-bank transfer, or you may be able to request a check or use a debit card if your bank allows it.
Previously, a federal regulation called Regulation D limited you to no more than six withdrawals per month for a savings deposit account, but the Federal Reserve lifted this restriction as of April 2020.
Customers Bank High Yield Savings Account Benefits
- Incredible 5.30% APY2 to boost your savings
- Interest is compounded daily and posted to your account monthly
- Enjoy 24/7 online access to your account and funds
- FDIC insured, no fees, $1 minimum deposit
How we chose these products
FinanceBuzz evaluated a selection of bank accounts offered by our partners, looking at various criteria including interest rates, minimum deposit requirements, and more. We did not review all products in the category and compensation was considered when evaluating and ordering the products.