Updated June 14, 2024

Most Reliable High Yield Savings Account

By Darlene Santos
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Looking for a reliable high-yield savings account to grow your funds? Read on to learn which ones are worth your time.

High-yield savings accounts are becoming more and more popular today. With so many options to choose from, it is hard to know which one to choose. The key is to have a reliable, trustworthy account with a competitive rate.

With that, let's take a look at the most reliable high-yield savings accounts being offered.

What are the most reliable high-yield savings accounts?
The most trustworthy high-yield savings accounts offered today are:
  1. Capital One 360 Performance Savings
  2. Discover® Online Savings Account
  3. UFB Direct
  4. Ally Savings Account
  5. CIT Bank Savings Connect

Capital One 360 Performance Savings

Founded in the 1990s as a credit card company, Capital One is now a full-service bank with branches and over 70,000 fee-free ATMs in its network.

Capital One 360 Performance Savings offers a 3.80% APY, no minimum account requirements, and no monthly fees. It includes a top-rated mobile app for 24/7 savings management.

Can I withdraw money from my Capital One 360 Performance Savings account through an ATM?
No, you cannot withdraw money from your 360 Performance Savings account through an ATM. Withdrawals can only be done via your online account or by calling or visiting one of the Capital One branches.

They are also an FDIC-member bank which means deposits are protected up to $250,000 for individual accounts and $500,000 for joint accounts.

Who Is It Best For?
Capital One 360 Performance Savings is great for those who want access to both online and in-person banking. While it doesn't include an ATM card, you can easily withdraw and deposit money at Capital One branches or online.

Pros + Cons

  • Competitive 3.80% APY
  • No monthly fees
  • Several locations nationwide
  • No ATM/debit card
  • Outgoing wire transfer fees

Discover Online Savings Account

Discover® Bank has been providing online financial products since the 1990s and is now one of the leading online banks in the US.

Despite lacking physical branches, they make banking easy with an extensive ATM network and a secure, user-friendly online platform.

With the Discover® Online Savings Account, users can earn a 3.75% APY with no monthly fees or account minimums to worry about. It is also covered by FDIC insurance up to $250,000 per depositor, per ownership category.

Who Is It Best For?
Discover® Online Savings is ideal for people who want a completely digital banking experience. You'll get access to their easy-to-use online and mobile banking platforms, allowing you to handle your finances with just a few clicks.

Pros + Cons

  • High 3.75% APY
  • No monthly fees
  • User-friendly online banking
  • No physical branches
  • No ATM access/card

UFB Direct

UFB Direct is a digital bank under a well-known financial institution called Axos Bank. They follow a branchless model, allowing them to offer competitive rates.

UFB Direct has an impressive 4.01% APY with no monthly fees and no minimum deposits. It also comes with a debit card that allows fee-free withdrawals at 91,000+ ATMs in its network nationwide.

Additionally, deposits are FDIC-insured up to $250,000 per depositor, per ownership category.

Who Is It Best For?
UFB Direct is a great choice for anyone looking to grow their savings through a high APY. With an impressive rate and no monthly fees to worry about, you can concentrate on meeting your financial goals.

Pros + Cons

  • Impressive 4.01% APY
  • No monthly fees
  • Free debit card
  • Cash deposits allowed via ATMs
  • No physical branches
  • Daily withdrawal limits for debit card

The daily withdrawal limits for UFB Direct savings accounts are: [1]
  • $510 for ATM cash withdrawals
  • $500 for point-of-sale transactions

How often do you typically check the performance of your high-yield savings account?

Ally Savings Account

Ally is a modern online bank that offers various financial services. They have over $193 billion in assets, serve over 11 million customers, and give free access to 43,000+ Allpoint® ATMs in the US.[2]

Their Ally Savings boasts a 3.80% APY, $0 maintenance fees, and no minimum deposit requirement. It also comes with an easy online banking platform with handy budgeting features.

Lastly, Ally is a member of the FDIC which means deposits are insured up to $250,000 per depositor, per ownership category.

Who Is It Best For?
Ally Savings is perfect for people seeking digital savings tools. With features like savings buckets, akin to digital piggy banks, and boosters to automate savings, you can boost your funds effortlessly.

Pros + Cons

  • Good 3.80% APY
  • No monthly fees
  • Great online banking experience
  • Useful digital banking tools
  • No physical branches
  • No debit card
  • No cash deposits

CIT Bank Savings Connect

CIT is an online bank that's part of First Citizens Bank, one of the largest family-owned banks in the U.S. They've earned awards for their social responsibility, excellent customer service, and a strong range of products.

Their CIT Savings Connect has a 4.20% APY with no monthly fees for a minimal opening deposit of $100.

But if you prefer a higher APY, their CIT Platinum Savings boasts a 4.55% APY with a balance of $5,000 or more.

Safety-wise, you don't have to worry as deposits made in both accounts are FDIC-insured up to $250,000 per depositor, per ownership category.


Who Is It Best For?
CIT Savings Connect is ideal for those who want the security of banking with a big financial institution like First Citizens Bank. When you open a CIT savings account, you're putting your money in the hands of a trusted, reputable bank.

Pros + Cons

  • Good 4.20% APY
  • No monthly fees
  • Easy-to-use digital banking platforms
  • $100 opening deposit requirement
  • No physical locations
  • No debit card

What Is a Reliable High-Yield Savings Account?

There is no set criteria that defines how dependable a savings account is. But, here are some factors that usually affect its reliability:

  • Reputation
    Your money should be kept at a bank with a track record of financial stability, product quality, accessibility, and customer satisfaction. Find a savings account from a trusted, reputable financial institution.

  • Insurance Coverage
    For added safety, you'd want to open an account with an FDIC or NCUA member institution. That means your money is federally insured should the bank or credit union fail.

  • Regulatory Compliance
    Your bank should follow ethical and legal practices to give you some peace of mind. Check if they follow regulatory standards by checking enforcement bodies like the CFPB.

  • Complaint Resolution
    A reliable institution should have an effective, streamlined process for resolving customer issues. Check bank reviews and customer feedback to see how they fare.

How Much is High-Yield Savings Account APY?

The rates for high-yield savings accounts vary per bank. But, they are usually higher than the rates for regular savings accounts which average around 0.42% APY nationwide (as of 20 May 2024). [3]

Keep in mind that high-yield savings rates can change over time. They are influenced by factors like the Federal Funds Rate, market conditions, inflation, and such.

How Much Can You Earn?

If you are saving up for a financial goal, use this savings calculator to see how much you can earn with a specific APY.

Savings Calculator

Are High-Yield Savings Accounts Safe?

As long as the bank that is offering your high-yield savings account is legitimate, there shouldn't be anything to worry about.

Make sure that your chosen online bank or credit union is an FDIC or NCUA member so your deposits will be federally insured.

Ultimately, the key is to do proper research before committing to an account.

How to Choose a High-Yield Savings Account

There are many factors you should consider before choosing a high-yield savings account. Below are just some things to keep in mind as you search:

  • APY
    Higher APY lets you earn more. But take note that some accounts may have minimum balance requirements for you to get higher APY.

  • Monthly Fees
    High-yield savings accounts can have no monthly fees or deposit requirements. However, some may have them or require a minimum balance to waive fees.

  • Accessibility
    For easy access to your money, you'd want a bank with multiple platforms. Check out institutions with a good online website or mobile app, ATM network, and physical branches.

  • Customer Service
    Look for banks that offer reliable customer service. Luckily, some do have live support available 24/7 via call or online chat.

What is the most important factor for you when choosing a high-yield savings account?

How to Maximize Your High-Yield Savings Account

To get the most out of your high-yield savings account, try these tips:

  • Establish your goal.
    Before opening, it's important to have a clear goal to stay motivated and disciplined when saving. Common reasons for saving include building an emergency fund, planning a trip, funding a wedding, or paying for education.

  • Make regular contributions.
    Opening an account and making an initial deposit is just the start. By making regular deposits, you can take advantage of compound interest and earn more over time.

  • Make use of digital savings tools.
    Many banks with high-yield savings accounts provide digital tools to help you save effortlessly. You can automate your savings, create digital piggy banks, and more.

  • Consider other high-yield options.
    Once you're comfortable with your high-yield savings account and have extra money, consider opening another high-yield account, like a money market account or a CD. Having several interest-bearing accounts can boost your savings over time.

What is compound interest?
Compound interest is the "interest earned on interest". The way it works is the interest you earned will be reinvested, allowing it to grow even more over time.

How to Open a High-Yield Savings Account

Most banks will allow you to open a high-yield savings account online. Here's an overview of the steps:

  1. Gather the necessary information and documents.
  2. Visit the bank's official website and choose the account you wish to open.
  3. Answer the online application form and fund your account.

They typically ask you to provide the following details: legal name, birth date, residential address, Social Security or Tax Identification number, and a valid government ID.

Should You Open a High-Yield Savings Account?

If you are looking to grow your money passively for a specific financial goal, opening a high-yield savings account is a good option. It's low-risk and gives you easy access to your funds.

Also, it can be a good choice for building an emergency fund for unexpected expenses, like medical bills or car repairs.

High-Yield Savings Account Alternatives

If a high-yield savings account doesn't seem right for you, consider these alternatives:

Traditional Savings
Much like high-yield savings, a traditional savings account lets you save money and earn interest, though at lower rates.

Usually, there's no monthly fee, or you can avoid it by maintaining a certain balance, allowing your money to grow.

Certificate of Deposit
If you prefer earning a fixed interest rate, a certificate of deposit (CD) might be a good choice for you. The rate will remain unchanged regardless of market fluctuations.

But, remember that your money will be locked in for a certain period and can only be taken out when the CD matures. Early withdrawals will incur penalties.

Best CD rates:

Money Market Account
A money market account usually offers a competitive interest rate and may allow easy access to your funds via electronic transfers, debit cards, and checks. However, some banks may require an initial deposit or minimum balance.

Best money market accounts:

High-Yield Checking
A high-yield checking account lets you earn interest on your spending balance while maintaining easy access to your money with a debit/ATM card. It is a solid pick for those who want a good interest rate and good accessibility.

Brokerage Account
With a brokerage account, you can buy and sell various types of investments like stocks, bonds, and mutual funds. You can easily open one with a brokerage firm, making it ideal for those looking to grow their wealth.

Bottom Line

When choosing a high-yield savings account, it is essential to do your research. How reliable it can be for you can depend a lot on a bank's reputation and services.

To be secure, open an account with an FDIC- or NCUA-insured institution. Aim for competitive rates too for a more rewarding savings experience.

References

  1. ^ UFB Direct. FAQs, Retrieved 05/29/2024
  2. ^ Ally. Who We Are, Retrieved 12/27/2023
  3. ^ FDIC. National Rates and Rates Cap, Retrieved 05/28/2024

Write to Darlene Santos at feedback@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.

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Discover Bank
Member FDIC

Discover® Online Savings - $200 Cash Bonus

To qualify for Bonus: Apply for your first Discover Online Savings Account, enter Offer Code CY924 at application, deposit into your Account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Qualifying deposit(s) may consist of multiple deposits and must post to Account within 45 days of account open date. Maximum bonus eligibility is $200.

What to know: Offer not valid for existing or prior Discover savings customers, including co-branded, or affinity accounts. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of the account qualifying for the bonus. Bonus is subject to tax reporting. Offer ends 03/13/2025, 11:59 PM ET. Offer may be modified or withdrawn without notice. Due to new customer funding limits, you may wish to initiate fund transfers at your other institution. For information on funding your Account, see FAQs on Discover.com/Bank. See advertiser website for full details.

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Expires 3/13/2025

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