The Federal Reserve kept the federal funds rate unchanged after its July 30 meeting, holding steady at 4.25% to 4.50% — the same level since December 2024.
When the Fed raises, lowers, or holds rates steady, savings account yields often move in the same direction. While rates have been dipping since the Fed's cut in December, they've recently leveled off — and are expected to stay that way for now. If you want to maximize your funds in a high-yield savings account, now's the time to do so. Rates are still relatively high, and with the Fed holding steady, there's no guarantee how long they'll stay that way.
Here are the high-yield savings accounts we recommend taking advantage of right now.
Happen Bank LevelUp Savings
Happen Bank LevelUp Savings
Annual Percentage Yield (APY)
4.00% (with monthly deposits of $250 or more), or 3.00%
Minimum balance
None
Monthly fee
None
Maximum transactions
None
Excessive transactions fee
None
Overdraft fees
N/A
Offer checking account?
Yes
Offer ATM card?
Yes
Terms apply.
Pros
- Strong APY
- No minimum balance required
- No monthly fees
- Free ATM card and no ATM fees
Cons
- At least a $250 monthly deposit required to earn the highest APY
- No physical branch locations
Happen Bank offers a generous APY when you make monthly deposits of at least $250 or more (without deposits, you'll receive a rate of 1% lower). It also comes with zero monthly fees and no minimum balance requirement. You can use your funds to pay bills, send money to friends and family and make internal and external transfers, which is less common for a savings account.
Western Alliance Bank High-Yield Savings Account
Western Alliance Bank High-Yield Savings Account
Annual Percentage Yield (APY)
3.80% APY
Minimum balance
$1 minimum deposit
Monthly fee
None
Maximum transactions
Up to 6 transactions each month
Excessive transactions fee
The bank may charge fees for non-sufficient funds
Overdraft fee
No overdraft fee
Offer checking account?
No
Offer ATM card?
No
Terms apply.
Pros
- Earns a strong APY with no caps, so every dollar in your account is earning the full rate regardless of your balance.
- Minimum opening deposit of just $1.
- No monthly fees and no overdraft fees, so nothing is cutting into your earnings.
Cons
- No checking account or ATM access, so this works best as a dedicated savings account paired with another bank.
- Non-sufficient funds fees may apply, so it’s worth keeping an eye on your balance before making transfers.
The Western Alliance Bank High-Yield Savings Account also offers a competitive APY and only requires a $1 opening deposit. There's no cap to earning Western Alliance Bank's high APY and no monthly fees.
Newtek Bank Personal High Yield Savings
Newtek Bank Personal High Yield Savings
Annual Percentage Yield (APY)
4.35% APY
Minimum balance
$0.01 to earn interest
Monthly fee
None
Maximum transactions
Up to 6 free withdrawals or transfers per statement cycle; transaction amount limits apply; withdrawals from your account can only be transferred to the original external funding source
Excessive transactions fee
None
Overdraft fee
None
Offer checking account?
Only a business checking account
Offer ATM card?
Yes, if have a Newtek checking account
Terms apply.
Pros
- Strong APY
- No minimum deposit and low minimum balance
- No monthly fees
- Offers business checking account and ATM access
Cons
- Transfer limit
- Only offers a business checking account
- Mobile deposits on app only available for business accounts
Newtek Bank Personal High Yield Savings offers one of the highest savings returns with no minimum deposit required, along with no monthly fees. There's also no cap on how much interest you can earn.
Marcus by Goldman Sachs® High-Yield Online Savings Account
Marcus by Goldman Sachs High Yield Online Savings
Annual Percentage Yield (APY)
3.40%
Minimum balance
None
Fees
No monthly maintenance, overdraft or excessive transactions fee
Maximum transactions
No limit to the number of withdrawals or transfers you can make
Checking account
No
ATM card
No
Terms apply.
Pros
- No minimum deposit, no minimum balance and no monthly fees, making it one of the most straightforward savings accounts to open and maintain.
- No limit on withdrawals or transfers, so you can move your money as often as you need without penalty.
- Earns a competitive APY with no conditions or hoops to jump through.
- Easy-to-use mobile app makes managing your savings simple from anywhere.
- Also offers no-fee personal loans through Marcus, a useful perk if you ever need to borrow.
Cons
- Higher APYs are available elsewhere, so it may not be the top pick if maximizing your rate is the priority.
- No checking account option, so you’ll need a separate account for everyday spending.
- No ATM access or debit card, making it best suited as a dedicated savings account paired with another bank.
While Marcus by Goldman Sachs offers a slightly lower APY than the other accounts, it still stands out for charging no fees. It comes with no minimum deposit requirements, easy mobile access and no limit to the number of withdrawals or transfers you can make from your online savings account.
FAQs
What is the difference between a high-yield savings account and a traditional savings account?
The main difference between high-yield savings accounts and traditional savings accounts is that high-yield savings accounts offer higher interest rates, which in turn allow your money to grow faster. Also, unlike traditional savings accounts, high-yield savings accounts are generally offered by online banks that don't have physical branch locations.
Why are most high-yield savings accounts online?
High-yield savings accounts, by nature, offer higher returns largely because they operate solely online. They do this because of the savings they get by not paying for overhead costs that traditionally come with operating physical branches, such as the cost of real estate and the additional workers to work in those branches.
How do online savings accounts work?
While online savings accounts offer some of the highest APYs, it's also more tedious to access your money than banking at a brick-and-mortar institution, since you'll usually have to transfer to a checking account to use your money. This is arguably a good thing if you're trying to grow your emergency savings, as you won't have easy access to withdraw from the account.
While it may seem nerve-wracking to have limited access to your savings, one of the big reasons to put your emergency fund into a high-yield account is to watch it grow. The higher your account balance is, the more money you will earn in compound interest over time.
How often do savings rates change?
Interest rates on high-yield savings accounts are variable and can fluctuate at any time. In general, savings rates change every few months after a Federal Reserve committee meets to adjust the federal funds rate.
Are high-yield savings rates increasing?
High-yield savings rates are not increasing at the moment. Rates increased throughout 2023 as the Federal Reserve raised its benchmark rate to tamper with inflation. We saw this reflected in high-yield savings accounts' APYs at the time, but as the Fed has started cutting rates, so, too, have banks.
Can you lose money in a high-yield savings account?
There's a near-zero risk of capital loss when you open a savings account at an FDIC-insured bank, as your account is insured for up to $250,000. Interest rates may decrease, but your cash will not. Theoretically, your money would lose value if the inflation rate is higher than your APY, but that's no different than a traditional savings account. So, opening a high-yield savings account is safe and worth considering.
Can you withdraw money from a high-yield savings account?
You can withdraw funds from a high-yield savings account like you can a traditional savings account.
How often can I take money out of a high-yield savings account?
It used to be a rule that you could only withdraw or transfer cash out of a high-yield savings account up to six times per month without paying any fees. Since the pandemic, however, this rule has ended and it is now up to each bank's discretion to choose how often savers can withdraw. Most banks have stuck to this six-times-per-month rule, while others let you make unlimited withdrawals at no cost.
Do you pay taxes on a high-yield savings account?
Interest accrued on a high-yield savings account is taxed as ordinary income. You must report the interest on your tax return for any account that earned more than $10 in one year.
What does APY mean?
APY is the acronym for "annual percentage yield" and it represents the total amount of interest a bank account earns over one year, taking into account compound interest. APY is different from an account's actual interest rate, the latter meaning simply the percentage of interest you'd earn on a bank account.
Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every high-yield savings account review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of savings and banking products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best high-yield savings accounts.
Our methodology
To determine which high-yield savings accounts offer the best return on your money, CNBC Select compared dozens of U.S. savings accounts offered by various financial institutions, including brick-and-mortar banks, online banks and large credit unions. Though most online banks don't have physical branches, they often offer higher APYs, lower fees and overall better benefits than national brick-and-mortar banks.
We narrowed down our ranking by only considering those savings accounts that offer an above-average interest rate, no monthly maintenance fees and low (or no) minimum balance/deposit requirements.
While the accounts we chose in this article consistently rank as having some of the highest APY rates, we also compared each savings account on a range of features, including ease of use and account accessibility, as well as factors such as insurance policies and customer reviews when available. We also considered users' deposit options and each account's compound frequency. We took into account CNBC Select audience data when available, such as general demographics and engagement with our content and tools.
All accounts included on this list are FDIC- or NCUA-insured up to $250,000. Note that the rates and fee structures for high-yield savings accounts are not guaranteed forever; they are subject to change without notice and they often fluctuate per the Federal Reserve rate. Your earnings depend on any associated fees and the balance you have in your high-yield savings account. To open an account, most banks and institutions require a deposit of new money, meaning you can't transfer the money you already had in an account at that bank.
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