The cornerstone of any good financial system starts with finding a savings account that works for you as a hub account.
Online banks are the best options for these because we now live in a world comfortable with banking online and with our smartphones. The best banks are those with high interest rates but also the flexibility to do all of your banking remotely. Checking your accounts and transferring money is now standard, as are bill pay and mobile deposit.
And the best savings accounts offer high-yield interest rates and don’t require you to maintain a huge minimum balance (or any balance whatsoever) to avoid fees.
If you are using a brick and mortar bank as your savings account, you need to switch. They don’t pay anything. And the banks on this list pay many many times that.
Below, we have a list of online savings accounts with the highest interest rates. They are all FDIC-insured. They are as safe as a ‘regular’ bank except they pay way more in interest. You can confirm that by searching the FDIC’s Bank Find tool and confirming the FDIC numbers listed.
These banks are presented in no particular order (we try to list it in interest rate order but sometimes they change on us and we haven’t readjusted the list), but all provide value in terms of helping you build a strong financial foundation.
Table of Contents
- MyBankingDirect – 5.55% APY
- Western Alliance Bank – 5.22% APY
- CloudBank – 5.24% APY
- Nelnetbank – 5.22% APY
- Blue FCU – 5.15% APY
- Valleydirect – 4.75% APY
- CIT Bank — 4.65% APY
- Barclays Bank — 4.35% APY
- Discover Bank — 4.25% APY
- Capital One 360 Performance Savings – 4.25% APY
- Ally Bank — 4.20% APY
- American Express® Personal Savings — 4.25% APY
- Marcus by Goldman Sachs — 4.40% APY
- Alliant Credit Union — 3.10% APY
- Common Questions about Online Savings Accounts
🔃Updated May 2024: Updated with current interest rates and re-ordered the list to reflect the new rates. We also added a new bank to the list that may be familiar to rate watchers – My Banking Direct
The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired or changed.
If you are simply looking for the highest yield, you may want to consider no penalty CDs right now. The yields there can be much higher and you get the flexibility of withdrawals anytime.
MyBankingDirect – 5.55% APY
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MyBankingDirect is a high yield savings account that has one of the highest yields I’ve seen at 5.55% APY. MyBankingDirect is run by Flagstar Bank, FDIC insured #32541, and has 420 branches though the high rate is being offered by MyBankingDirect.
There is no minimum balance to earn this higher rate and there are no monthly maintenance fees, though there is a minimum opening deposit of $500. You get online banking and mobile check deposit, key features for an online bank.
Available nationwide.
Western Alliance Bank – 5.22% APY
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Western Alliance Bank is an FDIC insured commercial bank with $65 billion in assets and a very competitive high yield savings account currently offering 5.22% APY.
This account with Western Alliance has no monthly maintenance fees and interest in compounded daily and credited monthly. The minimum opening balance is just $1.
A high interest rate, no fees, and a $1 minimum make this a great option if you need a high yield savings account.
Western Alliance Bank is based out of Phoenix, AZ and powered by the Raisin platform so you can be assured your money is safe there.
👉 Learn more about Western Alliance Bank
CloudBank – 5.24% APY
CloudBank 24/7 is an FDIC insured bank and a division of Third Coast Bank SSB. They offer a variety of deposit products but it’s their savings account that is getting the attention today, currently offering 5.24% APY through the Raisin platform.
This account has no monthly maintenance fees and interest in compounded daily and credited monthly. The minimum opening balance is just $1.
A high interest rate, no fees, and a $1 minimum make this a great option if you need a high yield savings account.
Third Coast Bank SSB is based out of Humber, TX and has been in business since 2008. They have 17 locations within the state of Texas but through Raisin, anyone can open an account and earn their high rates.
The only downside with this account, and it’s a function of being part of Raisin, is that there’s no associated checking account. You have to transfer funds in and out of Raisin to use them.
👉 Learn more about CloudBank
Nelnetbank – 5.22% APY
Nelnetbank is the online banking arm of Nelnet, a financial services company that was founded in 1996. Nelnetbank is FDIC insured #59205 and is listed as being established in 2020 with a single branch, its headquarters, in Draper, Utah.
They are offering a 5.22% APY through Raisin, with a $1 minimum to open and no monthly maintenance fee.
👉 Learn more about Nelnetbank
Blue FCU – 5.15% APY
Blue Federal Credit Union is a credit union that is currently offering a high interest rate of 5.15% APY on their money market deposit account. This is not technically a “savings account” because it’s at a federal credit union but rather a money market deposit account, but for all practical purposes it serves the same function.
Since it is a credit union, your funds are protected by NCUA deposit insurance and not FDIC insurance. It is also offered through the Raisin platform.
The only downside with this account, and it’s a function of being part of Raisin, is that there’s no associated checking account. You have to transfer funds in and out of Raisin to use them.
👉 Learn more about Blue FCU
Valleydirect – 4.75% APY
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Valleydirect is the online bank arm of Valley National Bank, FDIC insured, and they have a high yield savings account with an 4.75% APY. The minimum deposit to open is only $1 and there are no monthly maintenance fees. It’s an online bank so there are no branches to visit but they have online access.
In addition to the online savings account, they also offer certificates of deposit. Their 12-month CD offers a competitive yield too.
👉 Learn more about Valleydirect
CIT Bank — 4.65% APY
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CIT Bank is a division of First-Citizens Bank & Trust Company (FDIC #11063). It is their online bank division and it offers every deposit product conceivable, from online savings to money market to no-penalty CDs. They have low minimums, no monthly service fees, and some of the highest yields available.
Their “Savings Connect” account is their savings account product and pays an interest rate of 4.65% APY on all balances. The minimum to open the account is just $100 and there are no fees to maintain it.
👉 Learn more about CIT Bank
Barclays Bank — 4.35% APY
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Barclays is a British based international banking corporation and the online bank is part of their US subsidiary, Barclays Bank located in Delaware (FDIC #57203).
Their online savings account product has a competitive interest rate, no minimum balance to open, and to earn interest you need to keep enough such that the interest rate earns you a penny each period (so you won’t earn fractional interest, this is typical).
Barclay’s has a competitive lineup of Certificates of Deposits too, with terms as short as 3-months and up to 60 months. The rates are competitive with other online banks.
Barclays offers savings and CDs but does not offer a checking account.
👉 Learn more about Barclays
Discover Bank — 4.25% APY
![Discover Bank Logo](https://i0.wp.com/wallethacks.com/wp-content/uploads/2018/09/discover-bank-logo.png?resize=150%2C125&ssl=1)
Discover, the credit card folks, also have an online bank!
Discover® Bank (FDIC #5649) may not be a familiar name to you but they’ve been actively insured by the FDIC since 1934. Their savings account has one of the highest interest rates, no maintenance fees, and no minimum balance.
The checking account also has no minimum balance, access to over 60,000 ATMs in the ATM network, plus a generous reward structure. You can earn 1% cash back on up to $3,000 in debit card purchases each month, pay a bill online, or write a check that clears (up to 100 such cashback transactions a month).
This is the first bank on the list that offers all three deposit products – checking, savings, and CDs. In terms of convenience, it’s one of the best.
Sometimes, Discover Bank will offer a cash bonus for this account. This Discover Bank promotion page will list any offers we know about.
(click here for our in-depth review of Discover Online Savings Bank)
👉 Learn more about Discover Bank
Capital One 360 Performance Savings – 4.25% APY
I’ve had a Capital One 360 Performance Savings account ever since it was an ING Direct account – a testament to how good of a bank I think they are. I liked how easy it was to open new accounts and manage my money there – plus it offers a competitive interest rate. Sometimes, we list Discover higher because you get a similar rate plus some bonus cash (when a promotion is available) but Performance Savings is comparable.
Capital One 360 has the added bonus of being part of Capital One, which makes management of your bank account easy if you already have Capital One credit cards. I enjoy having a lot of different services under one login because it’s just easier to manage.
Another added bonus is that Capital One often offers a bonus on new accounts.
Ally Bank — 4.20% APY
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Ally Bank (FDIC #57803) is the online bank I use (I consider them the best online bank, which is why I use them) and I’ve been a fan of theirs for years. I opened my account shortly after they rebranded from GMAC (General Motors Acceptance Corporation) in the late 2000s.
Their savings account has a solid interest rate, no maintenance fees, and no minimum balance.
Their CD rates are also competitive, the early termination period is only 60 days on a short-term CD (versus the more typical 90 days), and they often give you an interest rate bonus if you roll your maturing CD into a new one.
They offer a free checking account with no minimum balance, they refund up to $10 in ATM fees each statement, have a large ATM network, and they have a competitive interest rate on the checking account too.
Their app is solid too. It has all of the typical bells and whistles plus a great remote deposit feature for when you have checks to deposit. If you need to deposit checks and don’t want to use the app, there are postage-paid deposit envelopes for you to use too (absolutely free).
Finally, they also offer an integrated brokerage accounted called Ally Invest. This gives you access to a low-cost stock broker too that offers free stock trades too.
(read our full review of Ally Bank)
👉 Learn more about Ally Bank
American Express® Personal Savings — 4.25% APY
You are probably more familiar with their credit cards than their savings account but American Express National Bank (FDIC #27471) has been in business since 2000, when American Express sold their previous banking division to Standard Chartered.
American Express® Personal Savings is their high yield savings product. They also have certificates of deposit as well but they do not have a checking account, you are permitted to link up to three of those from external banks.
We have a full review of American Express Personal Savings.
👉 Learn more about American Express Personal Savings
Marcus by Goldman Sachs — 4.40% APY
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Marcus by Goldman Sachs (FDIC #33124) is the online bank of Goldman Sachs, most well known as an investment banking firm. They do quite more than that and Marcus by Goldman Sachs handles their online bank offerings.
They currently have some of the highest interest rates for savings accounts and they have no minimum deposits and no transaction fees (there do not appear to be maintenance fees either).
It is only a savings account though, no associated checking available.
Here’s a full review of Marcus by Goldman Sachs to give you a full scope understanding of their offer.
👉 Learn more about Marcus
Alliant Credit Union — 3.10% APY
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Alliant Credit Union is the only credit union on this list and they are NCUA insured (NCUA is the equivalent of the FDIC for credit unions, same protections and same amounts – NCUA #67955).
The account minimum to open is $5 (but they will give you $5 to open an account!). The interest rate is available if you have $100 or more in your account and there are no maintenance fees if you elect e-statements (many of the online banks do not even offer paper statements, so this is not a huge distinction). They have 80,000+ ATMs in their network.
The same terms exist for their checking account too but their interest rate on the checking account is slightly higher than many others. There is no minimum balance required on the checking account and you can get $20 in ATM surcharge refunds per month.
Why bother including a credit union? Because this credit union offers two remarkable products – a Kid’s Savings Account and a Free Teen Checking Account. They are joint accounts with perks to help teach your kids responsible money habits – a fantastic idea.
👉 Learn more about Alliant Credit Union
Common Questions about Online Savings Accounts
Here are a few questions I get asked a lot when it comes to these online savings accounts.
Online savings accounts are just like regular savings accounts. The big difference is that many of the banks that offer online savings accounts don’t have physical locations you can visit. Your main point of contact is through an app or online banking.
Many of the banks also offer online checking accounts that work just like regular checking accounts. The app will usually let you deposit checks by taking a picture of the front and back. You can access your money through a regular ATM and many banks have partnerships with national ATM networks like Allpoint.
If online savings accounts are just like savings accounts without physical locations, what’s the benefit of getting an online savings account? They have much higher interest rates. If you ever look at the interest rate of a regular bank, it’s usually ridiculously low.
For example, as of this writing, the interest rate at Bank of America’s savings account is 0.01% APY. It’s basically zero and it has been for a long time. Ally Bank’s interest rate is 4.20% APY.
Online banks tend to have much lower fees too. Ally Bank doesn’t have a maintenance fee and no minimum balance. Bank of America’s Core Checking has a $12 monthly fee that is waived if you maintain a balance of $1,500 or have a qualifying direct deposit of $250+.
Yes, 100% safe. Online banks are FDIC insured and so your money is as safe in those banks as they would be in a traditional bank. Your funds are protected up to $250,000 by the FDIC. If the bank fails, the FDIC will get you your money back.
As for protection against fraud, they often have security precautions in place to prevent many of the different types of fraud. Many banks offer two-factor authentication, to confirm your identity, as well as plenty of notifications. You can set up your bank to notify you every time there is a transaction, a service not many banks offer.
There is no limit to how many savings accounts you can have but you will receive a Form 1099-INT from every bank that pays you more than $10 in interest. You may not want to deal with so many forms when it comes time to do your taxes!
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