High-Yield Savings Accounts Are Finally Earning Consumers Money. Here Are Graham Stephan's Top 5 Account Picks

These accounts will earn you north of 1%.

Gone are the days when a high-yield savings account would net you under a penny on the dollar. Today, high-yield accounts offer significantly higher interest rates, making them a viable way to earn money on your saved cash. Which accounts are experts like Graham Stephan recommending? Read on to find out.

What is a high-yield savings account?

High-yield savings accounts are an alternative to the savings accounts of old. While traditional savings accounts can earn only a fraction of a percent, high-yield accounts have higher interest rates. The best part? High-yield accounts have many of the same benefits as traditional savings accounts.

High-yield savings accounts are a secure way to earn extra interest on your hard-earned savings. The FDIC insures high-yield savings accounts just like traditional savings accounts, up to $250,000 per account holder per bank. You don't need a high balance to save in a high-yield savings account, with some accounts requiring a minimum deposit of only $100. Additionally, most high-yield accounts provide the same excellent customer service offered to traditional bank account holders. And with online banking, it is easy to open and fund an account.

Downsides of a high-yield account

High-yield savings account owners should be aware of a few downsides. Many high-yield accounts limit the number of withdrawals you can make in a month. This isn’t unique to high-yield savings accounts, as most savings accounts charge a penalty for making more than six withdrawals in a month. Frequent money movers beware.

Cash held in a high-yield account may be less liquid than cash held in a traditional savings account. The process can take between 24 and 48 hours from request to withdrawal. Few high-yield accounts offer checks, and even fewer provide users with an ATM card. Savings held in high-yield accounts are considered liquid, but may not move as quickly as account holders are used to.

Graham Stephan's picks

High-yield savings accounts can be a great way to earn extra interest on your savings. But don't just take our word for it! Real estate agent and financial personality Graham Stephan says that high-yield savings accounts are now paying a healthy amount. Here are his top picks:

• Ally Bank
• Marcus by Goldman Sachs
• SoFi
• CIT Bank
• Citizens Bank

Each of Graham's picks will earn you over 1% interest, but that's only part of the story. Graham also values customer service when choosing which accounts to recommend. These options are backed by top-notch customer service departments to give savers a great experience. In fact, a top reason for our five star review of Ally Bank is its high customer satisfaction ratings.

When it comes to choosing the best high-yield savings account for you, consider more than just the interest rate being offered. By saving with a bank boasting high customer service ratings, you can be sure to get the most well-rounded experience out of your high-yield savings account.