Best High-Yield Savings Accounts of June 2020
Kailey is an industry specialist covering bank accounts, credit cards, and all things personal finance. Her work has appeared on USA Today, CNN Money, Fox Business, and MSN Money.
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High-yield savings accounts offer industry-leading APYs and many have few fees compared to traditional savings accounts at brick-and-mortar banks. If you're interested in a safe way to grow your money more quickly, check out our curated list of the best high-yield savings accounts of June 2020, all of which are FDIC-insured and some offer APYs of 20 times the national average.
The CIT Savings Builder account offers an industry-leading APY to all account holders who maintain a balance of at least $25,000 or have at least $100 in direct deposits every month. The fact that it also cuts routine monthly fees makes it an easy pick to consider. Read our full review to learn more.
The American Express National Bank personal savings account offers a competitive APY to anyone who keeps at least $1 in their savings account. Like most other online banks, it doesn't charge a monthly maintenance fee or nickel-and-dime you on other costs, so you can only make money with this account. Read our full review to learn more.
The UFB Direct High-Yield Savings account is a great choice if you have at least $10,000 in savings and plan to keep it that way. You need at least that much to earn interest with this account, but if you meet that requirement, you'll get one of the highest APYs in the industry, plus mobile banking tools and a complimentary ATM card. Read our full review to learn more.
The Vio Bank High-Yield Online Savings Account's APY is attention-grabbing, but that's just one of many perks. The account doesn't charge monthly maintenance fees or require you to maintain a minimum balance in order to earn the advertised APY. You also get access to intuitive online and mobile banking tools to help you manage your money from anywhere. Read our full review to learn more.
The Marcus by Goldman Sachs Online Savings Account is another high-yield savings account without monthly maintenance fees or minimum balance requirements. It charges few fees in general and that, coupled with its high APY, can help you grow your savings quickly. Read our full review to learn more.
The combination of a competitive APY, high-quality mobile app and no fees make it a top pick. Savers can also earn a bonus up to $500, but you'll need to keep in mind the qualifications. To qualify, open a new 360 Performance Savings account by June 10, 2020 and use promo code SCORE500, deposit at least $10,000 within 10 days of account opening, and maintain the required daily balance for at least 90 days after the initial funding period. meet those requirements and you can earn a bonus of $100 for every $10,000 deposited.
Varo's amps up the value where it counts, primarily in that the bank offers a high tiered APY with no monthly maintenance fee. Balances up to $10,000 earn a whopping 2.80% APY (with other qualifying activities) and balances over $10,000 earn 1.41% APY. The inclusion of a modern, high-quality online and mobile app experience round out the feature set.
Prime Alliance Bank packs in all the necessities, including a robust online and mobile banking experience, in addition to a high APY and no monthly maintenance fee. The APY is tiered, meaning you'll earn 1.45% for balances up to $9,999 and 1.55% on balances $10,000 and higher.
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What is a high-yield savings account?
A high-yield savings account works the same way as a traditional savings account, but it offers a much greater APY. There is no clear boundary separating high-yield accounts from their lower-earning peers, but the best high-yield savings accounts can offer close to 2% APY -- almost 25 times the national average savings account APY of 0.07%.
High-yield savings accounts are most commonly found at online banks. They don't have to pay to maintain a large network of branches and they're able to pass those savings on to you in the form of higher APYs and lower fees.
Most online savings accounts carry the same Federal Deposit Insurance Corporation (FDIC) insurance traditional banks have, so your money is protected up to $250,000 per person per bank against bank failure. But because these banks don't have branches, you're more limited in how you can access your funds. This shouldn't pose a serious issue for most people, though, as these accounts are intended for saving, not frequent spending.
What should you look for in a high-yield savings account?
Here are a few factors to keep in mind when choosing a high-yield savings account:
- FDIC insurance: Most online savings accounts will have this, but it's important to double check to make sure your money is protected against bank failure. If you open a high-yield savings account with a credit union, it may have National Credit Union Administration (NCUA) insurance, which is the credit union equivalent of FDIC insurance.
- APY: APY is what distinguishes high-yield savings accounts from traditional savings accounts, so this is obviously going to be an important factor. The higher your APY, the more money you will earn in interest. But you don't always have to chase the highest APY you can find. Banks change their rates from time to time so the savings account with the best APY will vary. Just focus on securing a rate that's close to the highest available.
- Fees: High-yield savings accounts offered by online banks don't usually include a lot of fees. Most don't charge the monthly maintenance fees or account inactivity fees you'll see with many brick-and-mortar banks, but you can still expect to pay for outgoing wire transfers and for excessive monthly withdrawals. Federal law limits all savings account holders to six convenient withdrawals per month.
- Accessibility: All high-yield savings accounts enable you to electronically transfer funds between accounts and a few enable you to directly withdraw funds from the account itself through online bill pay or by using an ATM card. You should focus on choosing an account that lets you access your money in the way that is most convenient for you.
- Customer service: High-yield savings accounts available at online banks may not include branches that you can visit if you need assistance with your account, but they should offer phone, email, or live chat support. Make sure you're comfortable with the types of support the account offers before signing up.
How to pick the right high-yield savings account
You should weigh all of the above factors when deciding which high-yield savings account is best for you. Rather than just selecting an account because it offers the highest APY, you should choose an account that has the best combination of low fees, easy access, and a high APY.
You should also pay attention to minimum balance requirements. Some accounts may require you to maintain a certain minimum balance in order to avoid a monthly maintenance fee or to earn the advertised APY. If your balance drops below this amount, you could earn a lower APY or no interest at all. You might also have to pay a monthly fee that negates any interest you are earning.
Think about how much money you plan to put in your high-yield savings account and make sure that this amount is enough to qualify for the advertised APY on the account you're considering. If it's not, you should explore some other options.
If you can't decide between two similar high-yield savings accounts, check to see if one offers a sign-up bonus. This practice is more common with checking accounts, but it's becoming an increasingly popular way for the best savings accounts to attract new customers. Usually, you must deposit a certain amount of money into your account and leave it there for a set number of days. Once you've done this, your bank will deposit the bonus into your account.
Is a high-yield savings account right for you?
A high-yield savings account is a good choice for your emergency fund and for any savings you plan to use in the next few years that you're unwilling to invest in the stock market. It keeps your money safe and your savings will grow more quickly than they would in a traditional savings account.
It's best for those who don't plan to withdraw funds from the account often and who don't mind transferring funds electronically to a checking account or a brick-and-mortar bank when they do need to withdraw cash.
If you want to withdraw money directly from your account via check or debit card or plan to make frequent withdrawals, you should consider a money market account or a checking account. Checking accounts offer unlimited transactions and easy access to funds, but most don't offer any interest. Money market accounts blend some of the features of checking and high-yield savings accounts, including a high APY and debit card and check-writing capabilities. But they still have the same limits on monthly transactions as savings accounts.
A high-yield savings account is a savings account that offers a much higher APY than average. The national average savings account APY is currently 0.07%, but some high-yield savings accounts offer APYs close to 2%. This means your savings can grow more quickly.
You should always make sure your savings account has FDIC insurance if you're using a bank or NCUA insurance if it's a credit union. Find an account that has a high APY and few fees. You should also pay attention to what options you have to withdraw your money and how you can get support from your bank. Make sure you're comfortable with all of this before you sign up.
Focus on finding an account that has the best combination of low fees, easy accessibility, good customer service, and a high APY. Pay attention to any minimum balance requirements necessary to avoid a monthly maintenance fee or earn the advertised interest rate. Make sure you have enough money to put into the account to fulfill these requirements. If you're torn between two similar accounts, see if one offers a sign-up bonus.
A high-yield savings account is a good choice if you want to earn some interest without exposing your savings to the stock market. But it's not ideal if you plan to withdraw money from the account frequently or want to be able to withdraw money directly from your account.