Savings

Best High-Yield Savings Accounts in 2025

Earn 4-5% APY on your savings with these top-rated accounts. No fees, no minimums.

Updated January 2025 8 min read

Note: APY rates change frequently. Rates shown were accurate at publication but may have changed. Always verify current rates on the bank's website before opening an account.

If your savings are sitting in a traditional bank earning 0.01% APY, you're leaving money on the table. High-yield savings accounts at online banks pay 400-500x more interest. Here's how to maximize your savings.

Why High-Yield Savings Accounts?

The difference between a traditional savings account and a high-yield account is dramatic:

$10,000 After 1 Year:

Traditional Bank (0.01% APY)

$10,001

+$1 in interest

High-Yield (4.50% APY)

$10,450

+$450 in interest

That's $449 more per year on a $10,000 balance. With $50,000 saved, you'd earn over $2,200 annually in interest.

What Makes a Great High-Yield Savings Account?

1

Competitive APY

Look for rates at or above 4.00% APY. The best accounts currently offer 4.25-5.00%.

2

No Monthly Fees

Top online banks don't charge monthly maintenance fees. If a bank charges fees, skip it.

3

No Minimum Balance

The best accounts let you start with $0 and still earn the full APY rate.

4

FDIC Insured

Your deposits should be insured up to $250,000 per depositor by the FDIC.

5

Easy Transfers

Should be easy to link external accounts and transfer money in/out.

Top High-Yield Savings Accounts (2025)

These accounts consistently rank among the best for rates, features, and user experience:

Ally Bank - Online Savings

4.00% APY

Min Balance

$0

Monthly Fee

None

FDIC Insured

Yes

Standout features: Buckets for organizing savings goals, 24/7 customer support, no minimum deposit.

Best for: All-around savers who want flexibility and solid customer service.

Marcus by Goldman Sachs

4.00% APY

Min Balance

$0

Monthly Fee

None

FDIC Insured

Yes

Standout features: Backed by Goldman Sachs, no transaction limits, easy mobile app.

Best for: Those who want a big-bank brand with online-bank rates.

Wealthfront Cash Account

4.25% APY

Min Balance

$1

Monthly Fee

None

FDIC Insured

Up to $8M*

Standout features: Extended FDIC coverage through partner banks, autopilot savings, direct deposit available.

Best for: Tech-savvy savers with larger balances who want extra FDIC coverage.

*Through partner banks program

SoFi Savings

4.00% APY*

Min Balance

$0

Monthly Fee

None

FDIC Insured

Up to $2M

Standout features: Combined checking + savings, Vaults for savings goals, early direct deposit.

Best for: Those who want checking and savings in one place with a modern app.

*With qualifying direct deposit; lower rate without

Capital One 360 Performance Savings

3.80% APY

Min Balance

$0

Monthly Fee

None

FDIC Insured

Yes

Standout features: Branch access (Capital One Cafes), great mobile app, established bank.

Best for: Those who want high rates but also occasional branch access.

How to Choose the Right Account

All these accounts are excellent. Here's how to decide:

Prioritize APY?

→ Look for the highest rate. But remember, rates change. Don't chase 0.10% differences.

Want Extra FDIC Coverage?

→ Wealthfront or SoFi offer expanded coverage through partner bank networks.

Need Branch Access Sometimes?

→ Capital One has cafes in major cities. Most others are online-only.

Want All-in-One Banking?

→ SoFi combines checking, savings, and investing in one app.

Common Questions About High-Yield Savings

Are online banks safe?

Yes. As long as they're FDIC insured, your deposits are protected up to $250,000 per depositor - same as any traditional bank. Online banks are just as regulated as brick-and-mortar banks.

How do online banks pay higher rates?

No branches = lower overhead costs. They pass those savings to customers through higher interest rates. It's the same business model, just more efficient.

How long do transfers take?

Typically 1-3 business days for external transfers. Some banks offer faster transfers or instant availability for a small fee.

Is the interest taxable?

Yes. Interest earned is taxed as ordinary income. You'll receive a 1099-INT form if you earn more than $10 in interest. High-yield accounts make this more relevant than traditional savings.

Can rates go down?

Yes. Savings account rates are variable and typically track the Federal Reserve's rates. When the Fed cuts rates, savings account APYs usually follow. The current high rates won't last forever.

Making the Most of Your High-Yield Account

Pro Tips:

  • Automate transfers - Set up automatic monthly transfers from checking to savings. "Pay yourself first."
  • Use it for your emergency fund - Your 3-6 months of expenses should live here, earning interest while staying accessible.
  • Don't check it daily - Watching money grow is tempting but can lead to impulse withdrawals. Set it and forget it.
  • Consider rate stability - Some banks consistently stay near the top; others offer promo rates that drop.

Calculate Your Savings Growth

See how much you'll earn with a high-yield savings account using our Savings Goal Calculator.

Try the Savings Calculator

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