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Today’s high-yield savings accounts offer some of the best rates that savers have seen in a long time.
You’ll find plenty of competitive savings accounts with no fees, low minimums and great rates from a number of online banks. Many of the top accounts available today offer as much as 4% to 4.5% APY or even higher. Just a couple of years ago, the most competitive high-yield accounts earned less than 1% — and still today, the national average (which includes regular savings accounts) is just 0.42% APY, according to the FDIC.
But there are a few high-yield savings accounts beginning to cross a new threshold: 5% APY or more. While your decision to open any new account should rely on more than interest rate alone, the accounts below are definitely worth considering for anyone who wants to maximize their savings today.
Start comparing high-yield savings accounts here to see how much more money you could be earning.
Savings accounts earning more than 5% APY right now
The high-yield online savings accounts below can help you earn at least 5% on your balance.
Because 5% APY savings are still pretty rare, you should always check whether the 5% rate advertised is ongoing, or has strings attached. Some banks may offer a 5% rate but only up to limits. For example, you might earn 5% on just $1,000, then drop down to 1% on the rest.
The following accounts have varying minimum balance requirements. They are also FDIC-insured up to the $250,000 limit.
Popular Direct: 5.05% APY
Popular Direct offers a whopping 5.05% APY on savings balances after a minimum deposit of at least $100. There are no monthly service fees, but you must keep your account open for at least 180 days to avoid an early account closing fee of $25.
Salem Five Direct: 5.01% APY
The eOne Savings Account from Salem Five Direct earns 5.01% APY. All you need to open and start earning is a $10 deposit. There is no ongoing minimum balance requirement and no monthly fees. The rate only applies to balances up to $1 million — however, this amount is beyond FDIC insurance limits anyway, so if you have more than $250,000 it makes sense to save it across different accounts, anyway.
Dollar Savings Direct: 5.00% APY
Dollar Savings Direct, an online division of Emigrant Bank, offers a solid 5% APY on savings. Dollar Savings Direct is simple, with no fees and no minimums required to earn interest on your account.
Newtek Bank: 5.00% APY
Newtek Bank also offers 5% APY for savers. You don’t need to worry about any minimum balances or fees with this savings account, though you will need to deposit at least some amount over $0.01 to start earning interest.
These aren’t the only accounts with great interest rates today. See how much you can earn by comparing today’s top savings rates here now!
Why it’s a great time to start saving
Federal interest rate hikes may currently be paused, but you shouldn’t expect them to go down anytime soon. The federal funds target rate range is still between 5% and 5.25%, and savings yields are showing no signs of dropping. In fact, the Fed has signaled that it could be prepared to hike rates again in the coming months — which may boost high-yield savings accounts with variable interest rates even further.
Nevertheless, some short-term CDs may have slightly higher yields right now — and fixed rates that won’t change over the entire term. For example, some six-month and one-year CDs are as high as 5.30% or 5.50% APY. But even if you opt for a short-term CD for its rate, there’s good reason to open a high-yield savings account, too. Unlike a CD, you can access the money in your high-yield anytime you need. That makes these flexible accounts the better choice for emergency savings, which you may need to access at a moment’s notice.
Find out how much you can boost your saving with a high-yield account here now.
The bottom line
High-yield savings accounts are one of the greatest tools savers have to keep their money safe and increase their balances through interest earnings today. While there aren’t many accounts earning higher than 5% APY right now, you’ll find no shortage of accounts with competitive rates near that, plus features and terms that work for your savings goals.
Kickstart your savings with one of today’s top savings accounts now!
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