9 Best High-Yield Online Savings Accounts of July 2020 - NerdWallet
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9 Best High-Yield Online Savings Accounts of July 2020

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The best high-yield savings accounts can help grow your money faster than standard options. The products featured on this page pay many times more than the national average of 0.06%.

Most online banks have slashed their rates in response to the Federal Reserve's recent emergency rate cuts. But the high-interest savings accounts detailed below continue to offer some of the strongest yields available. These accounts can help you boost your emergency fund more quickly than average ones.

NerdWallet did extensive, independent research on dozens of banks to identify the best options. While we mainly looked at banks' savings interest rates, fees and minimum deposit requirements, we also considered whether they offer great digital tools.

Read on for more details about NerdWallet’s top high-yield online savings accounts. Check the bottom of the page for more information about how these financial products work.

Summary of Best High-Yield Online Savings Accounts of July 2020

BankNerdWallet Rating APYLearn More
American Express National Bank Personal Savings

American Express National Bank Personal Savings

at American Express National Bank,

Member FDIC

1.00%

With $0 minimum balance

at American Express National Bank,

Member FDIC

FNBO Direct Online Savings Account

FNBO Direct Online Savings Account

0.90%

With $1 minimum balance

Read review
Salem Five Direct eOne Savings

Salem Five Direct eOne Savings

1.00%

With $0.01 minimum balance

Read review
Bank5 Connect High Interest Savings Account

Bank5 Connect High Interest Savings Account

1.10%

With $100 minimum balance

Read review
CIT Bank Savings Builder

CIT Bank Savings Builder

0.95%

With $100 minimum balance

Read review
Barclays Online Savings Account

Barclays Online Savings Account

1.00%

With $0 minimum balance

Read review
HSBC Direct Savings

HSBC Direct Savings

1.01%

With $1 minimum balance

Read review
TAB Bank High-Yield Savings Account

TAB Bank High-Yield Savings Account

4.5

/5

1.10%

With $0 minimum balance

UFB Direct High Yield Savings Account

UFB Direct High Yield Savings Account

1.00%

With $10000 minimum balance

Read review
American Express National Bank Personal Savings

at American Express National Bank,

Member FDIC

American Express National Bank Personal Savings

American Express National Bank Personal Savings

APY

1.00%

With $0 minimum balance

Bonus

N/A

at American Express National Bank,

Member FDIC


Bonus

N/A

Why we like it

The well-known credit card company offers a savings account with no monthly fees or minimum balance requirements. But the company does not offer ATM cards or checks.

Read Full Review

FNBO Direct Online Savings Account

FNBO Direct Online Savings Account

APY

0.90%

With $1 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

This account does not charge monthly service fees. Although the rate is slightly lower than that of other banks on this page, FNBO Direct has offered strong APYs in the past. It's worth keeping an eye on this option. There are also no steep minimums — you need just $1 to open this savings account.

You can access your account with the bank’s mobile app. You can also reach customer service by phone 24 hours a day, seven days a week. The online bank is a division of First National Bank of Omaha.

Read Full Review

Salem Five Direct eOne Savings

Salem Five Direct eOne Savings

APY

1.00%

With $0.01 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

Salem Five Direct eOne Savings does not charge monthly fees and its mobile apps receive stellar ratings. You will need to put down $100 to open the account. While this account's rate is currently lower than that of other options on this list, it has offered high APYs in the past. It's worth keeping on your radar.

Read Full Review

Bank5 Connect High Interest Savings Account

Bank5 Connect High Interest Savings Account

APY

1.10%

With $100 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

Bank5 Connect’s savings account earns interest on balances of at least $100. The current APY is not as high as others on this list, but the bank has a history of offering competitive interest rates. Also, if you opt for electronic statements, there is no monthly fee.

You’ll need to put down just $10 to open this account, which you can access through Bank5 Connect’s website and mobile app.

Read Full Review

CIT Bank Savings Builder

CIT Bank Savings Builder

APY

0.95%

With $100 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

CIT’s Savings Builder account has a 0.95% APY if you make a deposit of at least $100 each month. You can also earn the rate by having a balance of at least $25,000. If you’re not able to meet those requirements, your rate will be lower.

Read Full Review

Barclays Online Savings Account

Barclays Online Savings Account

APY

1.00%

With $0 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

Barclays has low fees and solid interest rates. The Online Savings account pays 1.00% APY and has a tool for setting savings goals. There are no monthly fees or minimum balance requirements.

Read Full Review

HSBC Direct Savings

HSBC Direct Savings

APY

1.01%

With $1 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

HSBC’s Direct Savings account is an online option from the well-known international bank. It pays a competitive APY and has no monthly fees. In addition, you need only one dollar to open an account. Direct Savings also comes with HSBC’s set of online management tools. Customers can set scheduled bank transfers, make mobile check deposits and pay bills.

Read Full Review
TAB Bank High-Yield Savings Account

TAB Bank High-Yield Savings Account

4.5

NerdWallet rating 
TAB Bank High-Yield Savings Account

APY

1.10%

With $0 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

TAB’s account doesn’t require any money to open and doesn’t charge monthly fees. It also offers CDs and a checking account that pays a little interest, but there’s no free ATM network.

UFB Direct High Yield Savings Account

UFB Direct High Yield Savings Account

APY

1.00%

With $10000 minimum balance

Bonus

N/A


Bonus

N/A

Why we like it

The UFB Direct High Yield Savings account has no monthly maintenance fee. There is no minimum required to open the account, but you will need to have at least $10,000 in the account to earn interest. You can make mobile check deposits through its mobile app, or initiate a funds transfer.

Read Full Review

What is a high-yield savings account?

A high-yield savings account is a type of federally insured savings account that earns rates much higher than the national average. Typical high-yield accounts can earn above 1% APY. By comparison, the national savings average is 0.06% APY.

How do I choose the best high-interest savings accounts?

Look for accounts that have both high interest rates and low service charges. You want to make sure you don’t have to pay a fee to the bank each month. Some institutions don’t charge monthly fees, while others do but will waive them if you meet a balance minimum.

Be willing to look beyond the larger, well-known banks. Many smaller institutions — including online banks — have the highest APY savings accounts along with low deposit requirements.

» Want to explore checking accounts instead? Take a look at NerdWallet’s Best Checking Accounts

How much interest will I get on $10,000 a year in a savings account?

If your money is in an account that earns a high interest rate, your balance will grow faster without any additional effort on your part. With a 1% APY, a savings balance of $10,000 would earn a bit more than $100 after a year. It may not make you rich, but the earnings are much better than an account with a 0.05% APY, which would earn about five dollars.

The highest APY savings accounts are easy to access

With online banking, you can access your account securely day or night. Online banks offer the highest savings rates on the market while charging fewer fees than traditional banks. Online banks often offer good websites and mobile apps that typically let customers deposit checks and pay bills.

How to open an account with the best interest rates

Depending on the type of bank, you can open a high-rate account either online or in person. You’ll need to provide your Social Security number and contact information, along with at least one form of identification, such as a driver’s license or a passport. (For a joint account, everyone wanting access to the account must provide this information and ID.) The bank will often require you to deposit money into the new account right away. You can do that by depositing cash or checks, or through a wire transfer.

What to do if you can’t open a high-interest savings account

Occasionally, a bank may not approve an application to open an account. This is likely because of issues with a customer’s previous banking history.

Unpaid bank fees and bounced checks can result in a negative file on ChexSystems, a consumer reporting agency that financial institutions use to evaluate a prospective customer’s banking history.

There are options for customers who have a ChexSystems file, including opportunities to open alternative accounts. For more information, read our primer on what to do if you have a ChexSystems record.

Are high-yield savings accounts safe?

In short, yes. High-yield savings accounts at banks and credit unions are federally insured up to $250,000 per depositor. Accounts at banks are backed by the Federal Deposit Insurance Corp., while credit union accounts are backed by the National Credit Union Administration. This means that even if the financial institution fails, the government makes sure your money is safe and accessible. Read NerdWallet's primer on FDIC insurance to learn more.

High-yield savings account terminology

Here’s a look at some important savings terms to know.

Savings account: A deposit account from a bank or credit union that earns interest.

Money market account: A type of savings account that often offers higher interest rates in return for a steep minimum deposit. (Think $5,000 or more.)

Interest: Money a bank pays into an account over time.

Compound interest: Compound interest is the interest you earn on both your original money and on the interest you keep accumulating. In an account that pays compound interest, the return is added to the original principal at the end of every compounding period, typically daily or monthly. Each time interest is calculated and added to the account, the larger balance earns more interest.

Annual percentage yield: The APY, or annual percentage yield, is the amount of compound interest an account earns in a year. The calculation is based on the account's interest rate and the number of times interest is paid during the year. A savings account with the highest APY grows faster than an account with a lower yield.

More top choices for the best high-interest savings accounts

Here is a summary of even more great choices for high-yield savings accounts. When you're shopping for the account that fits you best, they're worth checking out.

  • Comenity Direct1.10% APY, $100 minimum to open account

  • Nationwide Bank, 1.15% APY, $100 minimum to open account.

  • Popular Direct1.05% APY, $5,000 minimum to open account.

  • Marcus by Goldman Sachs, 1.05% APY (annual percentage yield) as of 6/16/2020, $0 minimum to open account.

  • Vio Bank1.11% APY, $100 minimum to open account.

  • Live Oak Bank1.15% APY, no minimum to open account.

  • PurePoint Financial, 1.01% APY, $10,000 minimum to open account.

  • CIBC U.S.1.15% APY, $1,000 minimum to open account.

  • Varo1.21% APY, no minimum to open account.

  • Synchrony, 1.05% APY, no minimum to open account.

  • Citizens Access, 1.00% APY, $5,000 minimum to open account.

  • Bank7, 1.10% APY, $100 minimum to open account.

  • Discover Bank, 1.01% APY, no minimum to open account.

  • Capital One, 1.00% APY, no minimum to open account.

» Interested in getting money from banks? See NerdWallet's best bank account promotions and bonuses

Last updated on July 1, 2020

Methodology

We took a close look at over 70 financial institutions, including the largest U.S. banks based on assets, internet search traffic and other factors; the nation’s largest credit unions, based on assets and membership; and other notable and/or emerging players in the industry. We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more.

Financial institutions surveyed are: Alaska USA Federal Credit Union, Alliant Credit Union, Ally Bank, America First Credit Union, American Express National Bank, Associated Bank, Axos Bank, Bank5 Connect, Bank7, Bank of America, Bank of the West, Barclays, BB&T, BBVA, BMO Harris, Boeing Employees Credit Union, Capital One 360, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens Access, Citizens Bank, Comerica Bank, Commerce Bank, Connexus Credit Union, Consumers Credit Union, Discover Bank, E*TRADE Bank, Fifth Third Bank, First National Bank, First Tech Federal Credit Union, FNBO Direct, GoBank, Golden 1 Credit Union, Goldman Sachs Bank USA, HSBC Bank, Huntington Bank, KeyBank, M&T Bank, Nationwide Bank, Navy Federal Credit Union, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Radius Bank, Redneck Bank, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, Simple, State Employees' Credit Union of North Carolina, State Farm Bank, Suncoast Credit Union, SunTrust Bank, Synchrony Bank, TCF Bank, TD Bank, TIAA Bank, U.S. Bank, UFB Direct, Union Bank, USAA, Varo, Vio Bank, Wells Fargo, Woodforest National Bank and Zions Bank.

To recap our selections...

NerdWallet's Best High-Yield Online Savings Accounts of July 2020

Frequently asked questions