Which Savings Account Will Earn You the Most Money?

	Bank Name	Interest Rate on Savings Account
Western Alliance Bank	Western Alliance Bank	4.81% APY	Read More
	CIT Bank	4.00% APY	Read More
	Barclays Bank	up to 4.50% APY (with minimum balance requirements)	Read More
	Discover® Bank	3.75% APY	Read More
	American Express® Personal Savings	4.25% APY	Read More
	Capital One 360 Performance Savings	3.70% APY	Read More
	Marcus by Goldman Sachs	3.90% APY	Read More
	Ally Bank	3.80% APY	Read More

With interest rates at highs we haven’t seen in years, you are probably wondering which savings account will earn you the most money.

If you have money in savings, it makes sense that you’ll want to earn as much money as possible on those funds, especially if they will be in the account for a long period of time, such as your emergency fund.

How We Created This List

First, we looked for savings accounts that earn well above the national average annual percentage yield (APY).

Next, we looked for accounts with no monthly account fees and low minimum balance requirements. Because a high interest rate isn’t enough if there are also fees or a bunch of hoops to jump through to qualify.

Of course, all the banks on the list are reputable, and all are FDIC-insured.

CIT Bank – 4.00% APY

CIT Bank offers 4.00% APY with its Savings Connect account.

There are no monthly service fees, and a minimum deposit of $100 is required to open the account. You don’t need to go through Raisin to get this APY. It is available directly on the company’s website.

If you have more than $5,000 to deposit, you can get the Platinum savings, which offers a slightly higher APY.

CIT Bank has a variety of bank accounts available on its site, including checking, savings, money market, CDs, and home loans.

Here’s our full review of CIT Bank.

👉 Learn more about CIT Bank

Barclays Bank – up to 4.50% APY

Barclays’s Online Savings Account earns up to 4.50% APY with minimum balance requirements. It does not require a minimum deposit to open and does not have a monthly fee.

Barclays was founded in London and continues to be a British bank. They have a U.S. component but the only other banking products Barclays offers are CDs, which also have high interest rates. They operate completely online, so there are no physical locations.

Here’s our full review of Barclays.

👉 Learn more about Barclays

Discover Bank – 3.75% APY

You are probably familiar with Discover’s credit cards, but did you know they also offer a fantastic savings account? Their Online Savings Account is currently earning 3.75% APY and has no minimum opening deposit or monthly fees.

Wallet Hacks readers can often get a welcome offer, so be sure to see our full review for details about that.

Discover also offers checking, CDs, money market accounts, and retirement savings options.

Here’s our full review of Discover’s Online Savings Account.

👉 Learn more about Discover Bank

American Express® Personal Savings – 4.25% APY

American Express is another company you primarily know from its credit cards, but it has a high-yield savings account that is currently earning 4.25% APY. As with most other accounts on this list, there is no minimum deposit required to open and no monthly fees.

Amex actually offers a full-service banking experience. It has checking, savings, CDs, personal loans, investment management, and, of course, credit cards.

👉 Learn more about American Express Personal Savings

Capital One 360 Performance Savings – 3.70% APY

The Capital One 360 Performance Savings earns 3.70% APY with no minimum opening deposit and no monthly fees.

This is the only bank on this list with physical locations. So, if you want a high-yield savings account with a bank where you can meet with a banker face-to-face, here’s your chance.

Capital One offers a wide range of banking accounts, including checking, savings, credit cards, and auto loans.

Here’s our full review of Capital One 360.

Marcus by Goldman Sachs – 3.90% APY

Winning the award for the strangest bank account name, Marcus by Goldman Sachs earns 3.90% APY with no fees and no minimum deposit requirements.

One thing this account offers that most don’t is same-day transfers on amounts under $100,000, even to other banks. Transfers to third-party banks from online savings accounts typically take 2-3 days. So if you like to move your money around quickly, this might be the account for you.

Goldman Sachs is probably best known as an investment bank, but it also offers savings, CDs, personal loans, and even a few credit cards.

Here’s our full review of March by Goldman Sachs.

👉 Learn more about Marcus

Ally Bank – 3.80% APY

Ally’s savings account earns 3.80% APY. It doesn’t require a minimum deposit or have any monthly fees.

If you also have an Ally checking account, you can also set up what Ally calls “boosters” to help you save more. You can set up “round-ups,” which automatically round up any purchases you make in your Ally checking account and transfer the change into your savings. Another booster you can activate is called “surprise savings”. Ally will monitor your Ally checking account and automatically transfer excess funds into savings.

You can also set up recurring transfers from checking to savings.

Here’s our full Ally Bank review.

👉 Learn more about Ally Bank

How to Choose The Right Savings Account

Often times it isn’t about which savings account will earn you the most money. Yes, how much you’ll earn is important, but there are a few other factors to consider as well.

Here’s what you’ll want to consider when choosing a savings account.

Ease of access: If you are going to be transferring money back and forth between checking and savings frequently, then you’ll want to make sure that transfers are quick and easy to do. That might mean going with the same bank where you have your checking account, even if it means giving up some interest.

APY: If your savings are being held for longer term goals, say as an emergency fund, you’ll want to look for a high-yield savings account where your money can earn some interest. A traditional savings account typically has fairly low annual percentage yields, so looking for an online savings account is usually your best bet.

Fees: Paying monthly maintenance fees on your savings account isn’t necessary. Any fee you pay will likely wipe out any interest earned during the month. Avoid an account with monthly fees unless they can be waived by meeting requirements you’d meet naturally. For example, if the fee can be waived with a $500 balance and you rarely dip below $1,000, that is probably fine. But look for a different account if you’ll have to struggle to meet a requirement to have the fee waived

Minimum balance requirement: A lot of savings accounts have minimum balance requirements to earn the advertised annual percentage yield. None of the accounts on this list have this requirement, but if you are considering an account that does, ensure you can easily meet it. Otherwise, you’ll be leaving money on the table.

How Do Online Savings Accounts Work?

Online savings accounts work almost the same as traditional ones, except they tend to pay a higher APY.

The main difference is that you’ll usually transfer the money into, and out of, the savings account from your existing checking account. The checking account doesn’t need to be at the same bank as your online savings account. You’ll link the two accounts together and will be able to easily transfer money back and forth.

What About Money Market Accounts?

Money market accounts are very similar to savings accounts. The main difference is that you have easier access to the money in a money market account.

With money market accounts, you are typically offered a debit card to withdraw money from an ATM. You may also be given checks that you can write against the account. These features are rarely, if ever, found on savings accounts.

The easy access could be a good thing or a bad thing depending on your savings and spending habits. If you know that being able to access the ATM and withdraw money will impair your ability to save, then it’s probably not the best choice.

However, if you easily save money and having easy access isn’t an issue, then you could earn a bit more interest with a money market account.

What About CDs?

There are definitely CDs out there that are earning high interest rates right now. However, unlike savings accounts, CDs require you to lock up your money for a specified amount of time. If you break the CD you are typically charged a penalty of a few months’ interest. This isn’t a huge deal, but if you think you’ll need to break the CD, then it defeats the purpose of getting the higher APY.

Here are our best 12-month CDs if you think this might be the best choice for you.

✨ Related: MaxMyInterest Review

Why Are Most High-Yield Savings Accounts Online Only?

Traditional savings accounts often don’t have high-interest savings accounts. I’m talking about the savings accounts from the big brick-and-mortar banks you have in your city. Why they don’t offer high-yield savings accounts? Maybe it’s because they have high costs, such as buildings and many in-person employees. Or maybe it’s simply because they don’t have to offer high rates because they have so much name recognition and can get customers without them.

But no matter the reason, online banks and credit unions tend to offer better savings account rates. But you don’t have to worry about the safety of your money. All the banks on this list are FDIC-insured, meaning that if a bank fails, the government will step in and ensure everyone’s money is returned to them.

Credit unions are also federally insured but under a different program called NCUA insurance, and it essentially works the same.

Will I Have to Pay Taxes on Interest Earned?

You will have to pay taxes on the interest that is earned in your savings accounts. If you earn over $10 in interest, you’ll receive tax form 1099-INT from the bank or credit union.