Overview
Cash savings represent a crucial part of any personal financial strategy. Whether you’re building an emergency fund, shooting for a deposit on a new house, or even a vacation fund, a strong balance in a savings account is key.
There are multiple ways to store your cash, but one of the best ways to grow your savings is to open a high-yield savings account, which can keep your money safe while also earning you interest along the way. Who doesn’t like free money?
The Bottom Line:
High-yield savings accounts are one of the best ways to ensure your hard earned money goes further and helps you beat inflation. Just take care not to pick an account that requires more than you can commit to.
The quick pick:
The UFB savings account offers a 4.51% APY with no fees or minimum balance, making it the best pick for most people seeking high returns and hassle-free saving.
Types of Savings Accounts at a Glance
Savings accounts might all seem the same at first glance, but they all have their unique perks… and fine prints. Here’s a quick tour:
Traditional Savings Accounts
The OG of savings. You’ll find these at your neighborhood bank branch, usually with super-low interest rates (we’re talking fractions of a percent). Not great for growth, but handy if you like walking into a physical bank or just want a safe “parking spot” for cash.
High-Yield Online Savings Accounts
The real stars of the savings world right now. Online banks don’t have branch overhead, so they pass the savings on to you in the form of higher APYs. Translation: your money grows faster. These are great for emergency funds, travel savings, or just stashing cash you want working harder.
Money Market Accounts (MMAs)
Think of these as the middle ground between checking and savings. They often pay higher rates than your traditional savings account and sometimes come with a debit card or limited check-writing. But they usually want you to keep a bigger balance, so they’re better for people with a cushion to spare.
Certificates of Deposit (CDs)
CDs are like putting your money in a time capsule: you agree not to touch it for a set period (say, 12 months), and the bank rewards you with a fixed interest rate. Perfect if you know you won’t need the cash anytime soon and like the idea of guaranteed growth. Just beware of early withdrawal penalties.
Goal-Based & Specialty Accounts
Some banks let you create “buckets” inside your savings… Think mini-accounts for your vacation, wedding, or new laptop fund. Others offer niche options like HSAs (health savings accounts) or 529s (education savings), which come with tax perks. These accounts are all about helping you save with purpose.
Prize-Linked Savings Accounts
Imagine if your savings account came with a lottery ticket every month. That’s basically how these work. You earn entries into prize drawings instead of (or on top of) earning interest. You won’t always win, but your principal is safe, and it adds a little thrill to saving.
The Rundown:
Best all-around savings account: UFB Savings
Best for savings and checking accounts: SoFi Banking
Best for big balances: CIT Bank
Best for aggressive savers: LendingClub Level Up
Best for high APY with no-strings: Western Alliance
Best familiar face: Amex Savings
Best for simple, no-nonsense savings: Barclays Savings
Best for the easily tempted: Laurel Road
- 4.51% APY
- No bonus
- $0 min. deposit to open
UFB Savings
UFB's savings account walks the middle road among the other accounts on this list. Boasting a strong 4.51% APY without charging fees, requiring a minimum balance or a minimum opening deposit, it could be attractive to almost any saver.
Our quick take
A strong 4.51% APY without charging fees, requiring a minimum balance or a minimum opening deposit
- UFB offers customers an ATM card, granting them access to their money at any time. Throw in 24/7 support and an excellent app, and you’ve got the best of all worlds.
What we love about it
- ATM access
- 24/7 support
- No minimum opening deposit
- Excellent app
4.75
- 3.80% with a $0 minimum balance required to earn the APY
- Earn up to $300 with direct deposit. Terms Apply.
- $0 min. deposit to open
SoFi Checkings and Savings
SoFi Checking and Savings is a high-yield savings account, with no account fees offering competitive interest rates, early paycheck access, 55,000 fee-free ATM's, and automated savings features, along with additional financial tools and perks for members.
Our quick take on SoFi savings account
- With a stellar top APY of 3.80%, SoFi’s Checking and Savings account is one of the the best choices on the market for tech-savvy customers with direct deposits ready to roll.
- Those with less regular payments or who are cash reliant may struggle to take full advantage of everything the bank has to offer
What we love about it
- Outstanding top tier APY%
- Well-reviewed app
- Fee-free ATM withdrawals
- Early direct deposit
- 4.70% APY
- No bonus
- $5,000 min. deposit to open
CIT Bank
For those already boasting a significant savings account but looking for a new place to keep it, CIT Bank is a strong option.
Our quick take
The bank offers an APY of up to 4.70% for balances of $5,000 or more.
While this is limiting to some, those capable of depositing that much can enjoy a rate 10x the national average. The interest also compounds daily, letting your money grow quickly.
What we love about it
High APY if you deposit the minimum
Their savings products have different features and rates to fit different financial needs.
- 5.15% APY
- No bonus
- $250 deposit/month
LendingClub Level Up
Online bank Lending Club’s Level Up account is best suited for aggressive savers looking to deposit regularly.
Our quick take
The bank offers a spectacularly good 5.15% APY to customers who deposit $250 or more each month. Those who don’t hit that target will still have an APY of 4.30% (not bad at all), but there are stronger options in that case.
What we love about it
High APY if you deposit the minimum
No fees
Easy ATM usage
Unlimited numbers of external transfers
- 4.81% APY
- No bonus
- $500 initial deposit
Western Alliance
The Western Alliance High-Yield account is a funny thing. On one hand, it offers one of the highest APYs on the market with very few stipulations. On the other, its accessibility can be a tad frustrating. Still, for the right customer, it’s an excellent choice.
Our quick take
The account offers a pretty spectacular 4.81% APY despite charging no monthly service fees and no minimum balance or monthly deposit requirement. The only requirement is an initial deposit of $500 when opening the account. From there, it doesn’t matter if you have 1 cent in the account; you get that high APY.
The downsides come in the form of its accessibility. You have no ATM access, can’t access the account through an app, and need a linked external account to move money in any direction.
What we love about it
High APY once you deposit the minimum
No fees
- 4% APY
- No bonus
- $0 min. deposit to open
Amex Savings
While a high APY is important, sometimes peace of mind takes precedence. If using a bank with a well-established name is important to you, the American Express High-Yield Savings Account could be a good fit.
Our quick take
The 4% APY is strong, and there are no fees or minimum balances required to keep that rate. You can also take advantage of Amex’s 24/7 support, something that other smaller banks may struggle to replicate.
If you already own an Amex card, the new account will click right into place. Of course, the cost of comfort is almost 1% in interest.
What we love about it
Strong APY
No fees
No minimum balances
24/7 customer support
- 4% APY
- No bonus
- $0 min. deposit to open
Barclays Savings
Barclays is an interesting alternative to American Express. While it may not be as familiar in the US, Barclays is a household name in the UK and around the world. Its US outfit is purely online, but its reputation means you can treat it with the same regard as a major bank in the US.
Our quick take
With an APY of 4.20%, it’s worth checking out. It allows check deposits, has a strong app-based interface, and good customer service every day from 8 AM to 8 PM Eastern Time.
What we love about it
Earn 7X the national average
No monthly maintenance fees
Secure and easy online account access
- 4.8% APY
- No bonus
- $0 min. deposit to open
Laurel Road Savings
Laurel Road's strong 4.80% APY speaks for itself. The account is even more attractive when you consider that there are no monthly fees, no minimum opening deposit requirement or monthly balance requirement.
Our quick take
The 4.8% APY is strong and depositing money is easy, too: you can transfer money from another bank, the Laurel Road app accepts check deposits, you can set up direct deposit with your employer, or even send a check directly to the bank.
The one place it falters is the ability to withdraw money. This feature might put some off, but others may find it handy for keeping savings untouched, especially when you’re feeling tempted to grab a new pair of shoes you don’t need.
What we love about it
Strong APY
No fees
No minimum balances
Depositing money is easy
Strategies for Maximizing Savings
Opening the account is step one. Actually getting the most bang for your buck? That’s where strategy comes in. Here are some smart (and surprisingly easy) moves:
Set It and Forget It: Automate transfers from your checking account, like every payday. You won’t miss the money if it’s gone before you see it, and your savings pile grows without you lifting a finger.
One Goal, One Account: Want to save for a trip and an emergency fund? Don’t mix them up. Open multiple accounts (or sub-accounts if your bank offers them). It’s way easier to stay disciplined when your “Hawaii trip” money isn’t sitting in the same pot as your “new tires” money.
Chase the Perks (But Be Smart About It): Banks love to lure new customers with juicy APYs or sign-up bonuses. Take advantage! Just make sure you’re not jumping through ridiculous hoops (like keeping $10,000 parked for months) or paying hidden fees.
Do a Savings Check-Up Twice a Year: Rates change all the time, especially with online banks fighting it out for your business. Set a calendar reminder every 6 months to see if your account is still competitive. Loyalty is nice, but not when it costs you interest.
Mix Flexibility with Stability: Try a combo: keep some cash in a high-yield savings account for emergencies, and lock some into CDs for guaranteed returns. That way, you’re covered for both “oops, the car broke down” and “future me will thank me.”
Dodge Fees Like the Plague: Seriously, don’t pay monthly fees on a savings account in 2025. With so many no-fee options out there, handing over $5 a month to a bank is basically donating your interest.
FAQ's
What is a high-yield savings account?
A high-yield savings account is exactly as it sounds: a savings account that offers a higher yield on your savings than a traditional savings account.
These accounts usually offer a much higher APY (Annual Percentage Yield) than most savings accounts at the big banks or your local credit union, which makes them an attractive option for savers. It’s possible to grab an APY of over 5% in some cases, although they may have some stipulations as to the amount of money in the account or frequency of deposits.
Don’t worry about the safety of your hard-earned cash — these accounts are no less secure than your normal bank’s account as they are FDIC-insured. The minimum insurance you’ll find on these accounts is $250,000, but some can be insured into the millions.
Generally, the banks offering higher yields are primarily online and, as such, have lower overhead costs meaning they can pass those savings onto you, the consumer.
How much should I keep in savings?
Rule of thumb: 3–6 months of living expenses in an emergency fund. Enough to cover rent, food, and bills if life throws a curveball. Anything extra? That can go toward short-term goals or even investments, depending on your comfort level.
Why is a high-yield savings account important?
High-yield savings accounts are amazing for growing your money. While traditional bank accounts are capped at far lower APYs, high-yield accounts offer rates up to and above 5%. They mark a solid middle ground between traditional savings and a higher-risk investment account that’s composed of stocks and bonds.
While a yield of 4% or 5% isn’t going to make you rich, these strong APYs can help your money grow faster and even beat inflation, ensuring your savings stay as valuable as you want them to be. For comparison, most traditional savings accounts offer an APY around 0.45% — so you’re earning about 10x with a high-yield account.
For those unfamiliar with how interest works on your bank account, banks will pay you just for storing your money with them. For example, if you put $10,000 in a high-yield savings account with 5% APY, you could expect to earn $500 in interest payments over the course of a year.
Should I lock my money into a CD?
If you’ve got cash you know you won’t touch for a while, CDs are a great way to snag a guaranteed rate. Just remember: breaking into a CD early usually means paying a penalty, so don’t tie up your emergency money.
by your friends at The Daily Navigator
