The Best High-Yield Savings Accounts for June 2024

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If you want to make sure that your savings aren’t being eroded by inflation, it’s important to put that cash in an account where it will earn interest. And since the Federal Reserve has spent much of the past two years steadily raising interest rates, savings account payouts have steadily risen, too.

After years of near-zero returns, the average savings account rate has risen to 0.45%, according to the Federal Deposit Insurance Corp. But it’s easy to do far better than that.

With banks again competing hard for deposits, many have been ratcheting up rates every month. If you are willing to shop around among online banks and so-called neobanks, it’s now possible to find an interest rate that’s 10 times the national average—5% and sometimes even slightly more.

Of course, there’s more to a good bank account than just a great interest rate. When you shop for a high-yield savings account, you want to feel assured that you’re doing business with a transparent, straightforward institution that isn’t going to nickel-and-dime you and offers the security of FDIC insurance.

That is why we looked for banks where you can get a great bang for your buck with minimal hassle—and without maintenance fees or other charges that can chip away at your earnings. For more specifics of how we vetted banks, scroll to the bottom.

Best overall

Key Stats:

APY: 4.25%
No minimum opening balance or monthly maintenance fee
Open and manage your account via web, mobile app, branch
Set and track savings goals via online and app-based tools
Account can be linked to a Capital One checking account

Why we picked it: With Capital One Performance 360 you get the convenience and accessibility of a national bank with a generous interest rate more typical of online banks. In addition, Capital One earned the highest ranking in the J.D. Power 2022 U.S. National Banking Satisfaction Study, its third consecutive year in the top spot.

Getting started is simple, whether you choose to open your account online or in person at one of Capital One’s nearly 300 branches. In addition to branch access, traditional banks tend to offer a wider array of account types, lending products and investment services—a plus if you want to do most of your banking with a single institution.

Unlike some high-yield savings accounts we’ve encountered, the 360 Performance Savings doesn’t use gimmicks or stuff its terms and conditions with fine print that can cost you money, such as requiring that you maintain a minimum balance, set up regular direct deposits or pay a monthly maintenance fee.

The generous interest rate offered by the 360 Performance Savings is comparable to what you can earn with digital-only savings accounts, but Capital One has the advantage of branches. Customers also have access to more than 70,000 no-fee ATMs via Capital One’s own network as well as MoneyPass and Allpoint.

The combination of simple and transparent account terms with the ability to manage your account electronically or in person make this the most versatile savings account for most people. And, if you like to do all your banking in one place, you can also find other great deposit accounts at Capital One. The bank’s 360 Checking account was also our pick for Best Checking Account.

Caveats: Although the 360 Performance Savings offers a generous interest rate, compared with most of its bricks-and-mortar peers, some online banks offer a higher rate of return on deposits.

While deposits can be withdrawn online or in person at a branch, direct withdrawals cannot be conducted via ATM. (To withdraw money using an ATM, you’ll need to have a linked Capital One checking account and transfer the funds there from your Capital One savings account first.)

If you already have savings at Capital One, make sure you are signed up for a 360 Performance Savings Account. Some longtime Capital One customers have complained their money remained in similarly named, lower yielding accounts even after the bank created the Performance account in 2019. (Capital One responded that the 360 Performance accounts were marketed widely.)

Other banks we considered:

JPMorgan Chase

JPMorgan Chase & Co. has more than 4,800 domestic branches, but its flagship Chase Savings account has an interest rate well below 1%, and charges a $5 monthly maintenance fee unless certain conditions are met.

Wells Fargo

Like Chase, Wells Fargo also has thousands of domestic branches—more than 4,500. But the savings rate on its flagship Way2Save account is a fraction of what Capital One offers, and there is a $5 monthly fee unless certain conditions are met.

Best online

Key stats:

APY: 4.20%
No minimum opening balance
No monthly maintenance fee
Open and manage your account online via web or mobile app
Tools like “bucketing” help you save for specific goals

Why we picked it: Ally has built a reputation as a user-friendly, transparent bank that offers great savings rates with minimal hassle. Ally’s rates for savings and CDs are perennially competitive and its flagship savings account currently offers an APY that’s hard to beat.

We also like Ally’s suite of personal finance tools and resources to help you better manage your money. While Ally certainly isn’t the only bank to offer a digital version of the “envelope system,” letting you divide your balance into portions and earmarking each one for a particular goal or expense, it has refined the experience with features that make it simple to track your savings goals. You can create up to 10 “buckets” within your Ally Online Savings account and use the easy-to-navigate mobile app dashboard to track your progress on each.

Ally also has account tools to help you put saving money on autopilot by funneling small amounts of money into your savings account on a regular basis. For instance, if you have an Ally checking account, you can opt to have your transactions rounded up to the nearest dollar. Ally will then transfer the difference from your checking to your savings account in $5 increments.

Caveats: While customers can conduct remote check deposits, text alerts and peer-to-peer transfers through Zelle on Ally’s digital platform, as well as get digital and phone customer service, there are no physical branches.

Other banks we considered:

Synchrony Bank

The APY on the online High Yield Savings account from Synchrony comes pretty close to Ally’s, and Synchrony’s iOS and Android apps are both highly rated. But while Synchrony also has both money market accounts and CDs (some with competitive returns), it doesn’t offer the option of a checking account.

CIT Bank

The Platinum Savings account from CIT, an online bank that is part of First Citizens (the bank that took over the failed Silicon Valley Bank), offers a higher-than-average APY, but you need a balance of $5,000 or more to earn the preferred rate.

Best for yield

Key stats:

APY: 5.3%
No minimum opening deposit
No monthly maintenance fees
$5 fee for paper statements

Forbright Bank not only offers a generous 5.3% APY on its new Growth Savings high-yield savings account, but the bank also pledges to use its investments to promote green energy and sustainability. Forbright defines itself as “fossil-free” and “green business-certified,” saying it does not make loans that finance fossil-fuel companies. Instead, Forbright invests capital in initiatives such as loans for installing rooftop solar panels and fixing wind turbines.

Forbright is available online nationwide and has branches in Maryland and Virginia, and unlike many banks that offer top-yielding savings accounts, it gives customers access to phone support rather than through digital channels only.Caveats: You don’t get a debit card and you can’t access cash via ATMs. To get your funds, you’ll need to transfer them into a linked external checking account.

Other banks we considered:

Popular Direct

A digital brand of New York-based Popular Bank, its high-yield savings products have been on our radar for some time. But if you’re a serious yield-seeker, this account’s 5.15% APY isn’t the most generous we’ve seen. While its Popular Direct Select Savings account has a relatively low $100 account opening minimum, if you decide to close an account within 180 days of opening it, Popular Direct will charge you a $25 fee.

Best neobank savings account

APY: 5.15%
$100 opening balance requirement
No maximum or minimum to earn interest
No matching checking account
$5 fee for paper statements

Why we picked it: Neobanks are financial technology companies that partner with (or acquire) a bank to offer products such as high-yield savings accounts and loans. You can think of them as pue-play digital banks that compete to offer the best possible-rates, as well as online tools, for customers who are looking for an app-only banking experience.

Bread offers a top-tier APY with a low $100 minimum opening deposit and a simple, transparent user experience without nickel-and-diming. Bread charges no monthly maintenance fee, and it also doesn’t charge for ACH transfers or incoming wire transfers.

Unlike some high-yield online savings accounts, you earn a high APY—currently 5.15%—on every dollar in your account. While you have to make an initial deposit of $100 or more to open the account, Bread doesn’t impose minimums or maximums that can limit your interest-earning potential, making this account a good pick whether you plan to keep a lot of money or a little in it.

Bread Financial is the new brand identity of Alliance Data Systems, an issuer of private-label credit cards that purchased fintech Bread in 2020. One of its subsidiaries is Utah-based Comenity Capital Bank, through which customer deposits are insured by the FDIC. This is important because FDIC coverage and transparency around that coverage has been a bit of an Achilles’ heel at some tech firms that offer banking services. We’ve found that some neobanks make it difficult to ensure how or through which institution your deposits are protected in the event that the company fails.

Caveats: Although Bread offers loans and a cash back credit card, it doesn’t have a corresponding checking account. And while the Bread Savings account charges no monthly fees, there is a $5 fee for paper statements, which are issued by request only.

Best credit union savings account

Key stats:

APY: 3.1%
$5 minimum opening balance, or zero if set up linked to another Alliant account
No monthly maintenance fee
$100 minimum to earn APY
No geographic limitations on membership
Bank via web, app or fee-free ATM network

Why we picked it: The flagship savings account of Alliant credit union offers a top-tier APY without membership restrictions or monthly maintenance fees. You can open an Alliant High-Rate Savings account with as little as $5, although you’ll need to keep at least $100 in it to earn interest. Once you do, though, your money will earn an impressive 3.1% interest rate.

Many credit unions require customers to live, work, study or worship within their geographic footprint. Chicago-based Alliant is one of the institutions breaking that mold: Anybody can become a member via the nonprofit Foster Care to Success, and Alliant will pay the $5 fee for you to join. It’s a formula that seems to be working: Alliant is one of the country’s biggest credit unions, with roughly 700,000 members.

Because Alliant is an online credit union, it doesn’t have any branches, but managing your account is easy via Alliant’s website, mobile app or at one of more than 80,000 ATMs you can access without paying a fee. Not all banks include ATM access in their savings account terms, and it’s a handy feature to have if your bank doesn’t have branches you can visit, especially if you need to deposit cash regularly.

Alliant also has the only credit union-issued credit card that made our Best of Cash Back reward card roundup, with its high-earning Alliant Visa Signature Card.

Caveats: You need to keep at least $100 in the account to earn the advertised APY—something to keep in mind if you plan to draw down the account for a large purchase. Like its direct-bank counterparts, Alliant has no physical branches for in-person account management, although it does offer access to a network of more than 80,000 surcharge-free ATMs. It also charges $1 for paper statements.

Other credit unions we considered:

PenFed

The Premium Online Savings account also typically has a competitive interest rate, but account management is limited to digital options without ATM access, which could be a hassle for people who need to deposit or withdraw cash on a regular basis.

Navy Federal

The Share Savings account offered by Navy Federal has an interest rate of just 0.25%. Plus, although Navy Federal is the largest credit union in the U.S., with more than 11 million members, you need a military affiliation—such as a family member who served in the armed forces—to become a member.

Best for investors

Premium Savings Account from Morgan Stanley Private Bank

Key stas:

APY: 4.25%
No minimum opening balance
No monthly maintenance fee
Open online
Available on E*Trade website; app links to E*Trade brokerage platform

Why we picked it: The launch of commission-free trades, combined with the pandemic, created a surge in individual investors entering the stock market. This Morgan Stanley account is offered on the website of E*Trade, which provides commission-free trades on online U.S.-listed stocks, options and ETFs, making it a popular online brokerage among individual investors. (Morgan Stanley acquired E*Trade in 2020.)

Premium Savings from Morgan Stanley Private Bank offers a highly competitive interest rate, and you don’t have to be an E*Trade brokerage customer to open one. We suspect that this account’s main appeal, though, is the ability for E*Trade users to link their brokerage accounts. You can conduct immediate electronic transfers between your brokerage account and savings account, and manage both savings and investment activities on a single platform.

The app has a library of how-to investment education as well as analytical research and data to help individual investors make well-informed trades. Novice investors can take advantage of analyst research reports, Bloomberg TV news and other educational resources on the E*Trade platform, while more experienced market participants can learn from tutorials on options, futures and margins trading.

Caveats: In this year’s U.S. Direct Banking Satisfaction Study from J.D. Power, E*Trade scored below the category average for satisfaction among savings providers.

Other banks we considered:

Marcus by Goldman Sachs

This high-yield savings account has an interest rate of 4.4%, but its Marcus Invest tool is geared toward people looking for a robo advisor rather than the DIY crowd. User reviews also indicate that reaching a customer service representative can sometimes be difficult.

Charles Schwab Bank

Charles Schwab topped this year’s U.S. Direct Banking Satisfaction Study, but its High Yield Investor Savings account has a much lower rate of return than E*Trade, with an APY of just 0.48%.

How we picked

To pick Buy Side from WSJ’s Best Savings Accounts, we looked for accounts that offered the best APY on deposited funds without restrictions. We also looked for accounts without monthly maintenance fees or high minimum balance requirements. We also considered accessibility, user-friendliness and the customer reputations of the banking institutions that offer these accounts.

All of our Best Bank picks are FDIC members, which protects account holders’ deposits, with the exception of those offered by credit unions, which are protected by a parallel organization, the National Credit Union Administration.

The terms we used to make our selections were collected December 2023. However, we periodically update the story to reflect recent market conditions, so the rates you see quoted in the story are as of the dateline.

Savings rates change frequently—sometimes every week. But you can’t move your money each time a new bank offers to pay a few hundredths of a percentage point more than the competition. That’s why we looked for banks with generally attractive rates—and other great qualities too.

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