High yield APY (Annual Percentage Yield) savings accounts allows you to earn more money on your deposits. With a higher interest rate, you can save more money over time and reach your financial goals faster.
It’s also important to remember that the higher the interest rate, the more of a cushion you’ll have if there’s an unexpected change in the market or economy that affects your investments.
Having a high yield APY savings account gives you peace of mind and ensures that your money isn’t idle for too long. Plus, it helps you build up your emergency fund quicker so you can be prepared for anything!
So don’t wait – start saving now with these high yield APY savings account!
Savings Accounts With High APYs
| Account | APY | Bonus | Open Account |
|---|---|---|---|
| 4.55% | 5.05% total | OPEN ACCOUNT |
| 1.50% (for non members) | 5.00% APY (for M1 Plus members, $10/mo OR $95/yr) | OPEN ACCOUNT |
| 3.20% | 5.07% (see below) | OPEN ACCOUNT |
| 5.07% | Daily liquidity, interest paid monthly, possible tax benefits | OPEN ACCOUNT |
| 4.15% (must be an Apple Card user) | Interest on your Daily Cash rewards, no fees or minimum balance. Daily Cash earned will be automatically deposited | OPEN ACCOUNT |
| 4.50% | OPEN ACCOUNT | |
| 4.00% | Scroll down to use the savings calculator, see how your money can grow | OPEN ACCOUNT |
| 4.15% | No fees, no minimum deposit | OPEN ACCOUNT |
National Rate: As of May the national average APY is 0.40% (FDIC)
Every savings account on the list allows you to earn approximately 11x the national average. Not only do these accounts have a higher APY than most traditional banks they also have better perks.
Many have no fees, higher FDIC insurance ($1-$5 million), no minimum balance, unlimited withdrawals and more.
I know what you’re thinking. How can they be FDIC insured for more than $250,000? Well, they spread your money around so that all (almost all) of your money is covered. Wealthfront for example covers you for up to $5 million by spreading your cash amongst ~20 partner banks.
Check out this post at Bankrate: 7 best ways to insure excess deposits
Other Accounts
Axos Invest didn’t make the list because their savings APY is low (but still higher than traditional banks) but they have an APY of up to 3.30% on their Rewards Checking account that also gives you up to a $100 welcome bonus.
Capital One also has a high yield account called 360 Performance Savings with an APY of 4.00%. I didn’t include them in the list because I’m not a fan, but if you’re already banking there, taking advantage their high rate should be simple.
Why High APY Savings Accounts Are Worth Considering
- Higher Interest Rates: High yield savings accounts offer significantly higher interest rates compared to traditional savings accounts. This means your money can grow at a faster rate, allowing you to earn more in interest over time.
- Compounded Interest: Compound interest is the interest earned on both the initial deposit and the accumulated interest. High yield savings accounts often compound interest more frequently, such as daily or monthly, compared to traditional savings accounts that compound annually. This compounding effect can significantly boost your savings over time.
- Inflation Protection: High yield savings accounts can help protect your savings against inflation. Inflation erodes the purchasing power of your money over time. By earning a higher interest rate, you have a better chance of keeping up with or outpacing inflation, ensuring that your savings maintain their value.
- Low Risk: High yield savings accounts offered by reputable banks are typically FDIC-insured in the United States, up to $250,000 per depositor, and sometimes more with online accounts. This means that even if the bank were to fail, your deposits are protected. This makes high yield savings accounts a relatively safe option for storing your money while earning a higher return.
- Liquidity: High yield savings accounts provide easy access to your funds. Unlike some long-term investments or certificates of deposit (CDs), which may have penalties for early withdrawal, you can generally withdraw money from a high yield savings account whenever you need it without facing significant fees or restrictions.
- Savings Goals: If you have specific savings goals, such as saving for a down payment on a house or an emergency fund, a high yield savings account can help you reach those goals faster. The higher interest rates can accelerate your progress and provide a sense of accomplishment as your savings grow.
- Diversification: Holding some of your savings in a high yield savings account can be a good way to diversify your overall financial portfolio. It provides a stable and low-risk component, especially when compared to riskier investments like stocks or bonds. Diversification can help balance out your risk and potentially increase overall returns.
