best high yield savings account

Here Are 12 Best High Yield Savings Accounts of 2021

The best high yield savings account is an idea that has been much debated in the past year. Due to the international response to the pandemic, it is widely known in the financial world that the rates of high yield savings accounts have decreased as opposed to past years. This has sparked a debate among financial advisors and investors. 

However, many agree that storing your money or savings in such an account is still a viable and fantastic solution. With that in mind, I decided to take a look at the rates myself and create a list of the 12 best high yield savings account options you have in the spring months of 2021.  

Please note that the rates change and that the information presented here is accurate at the moment of writing this article. 

best high yield savings account

What Is a High Yield Savings Account?

If you are interested in opening this type of account, the first thing we need to do is establish what exactly you are getting yourself into.  

The story is very simple. Until now, most people who already had a checking account also opted to open a savings account with the same bank. The reason is straightforward enough. Having both your accounts with the same bank makes transfers easy and fast. 

However, that used to happen before the advent of the internet and online banking. These two advances in technology allowed people to choose a different bank where they could open a savings account. 

Why is that important? Because this led to the appearance of multiple banks competing for customers. They competed by offering the client, meaning you, better and better savings rates. In time, this led to the appearance of what we now call ‘high yield savings accounts.’  

This type of account is defined by specialists as one that will pay you 25 times what the national average of a typical savings account can pay you, on average. Of course, if you can find a bank with the best interest rates

In short, if a bank can offer you much better rates, you stand to make a lot more money off your savings. 

Let me give you a quick example. 

Imagine you have $5,000 in savings. We have to take into account the difference between the national average and the rates of the high yield savings account. Therefore, if we have a 0.10% APY national average, you would get $5 in a year. 

However, if you take your $5,000 and put it in the best high yield savings account that makes 2%, then your return will be $100. 

If that sounds good to you, I have a whole list of options below.

These are 12 ideas for a savings account with high interest rate to choose from.  

Top Choices – Best High Yield Savings Account

All the high yield savings accounts I have listed here have an average annual APY or percentage yield of 40%. Since the national average is 0.07%, you can easily see how all these savings accounts will help you grow your personal funds much faster than in the traditional way.  

1.  American Express National Bank 

This is a bank with the best interest rates as they offer 0.40% APY for your savings account. There are no monthly fees and you will not be required to deposit a minimum sum when you open this type of account with American Express National Bank. 

Not only that, but they offer very easy access to your funds whenever you need them without restrictions. The account allows you to make nine transfers or withdrawals every month and comes with 24/7 customer service should you need it. 

American Express National Bank is insured by the FDIC.  

2. Capital One 360 Performance Savings

If you're looking for the best bank for opening a savings account, Capital One is the right choice. They have a 0.40% APY, and they do not require a minimum deposit when you open your account.  

Some other great news for you as a customer is the fact that you won't have to pay any monthly fees and that the bank has a live chat that you can use 24/7 in case you have any questions or something goes wrong.  

Not only that but if you also have a checking account with Capital One, they will allow you to schedule transfers so that you don't have to worry about saving money anymore. In this way, you can reach your goal of financial security much faster and easier. 

3. CIT Bank Savings Connect Account

With a whopping APY of 0.42% to 0.50%, CIT should definitely be on your radar as a savings account with high interest rate. There are no monthly service fees for you to pay, which is amazing. 

However, you should know that you will have to pay $100 as a minimum opening deposit. Apart from that, you cannot open high yield savings account as a standalone account with CIT Bank. In other words, you will have to connect it to an eChecking Account at the same financial institution.  

Apart from that, the bank will also ask you to make a direct deposit of $200 every month from a distinct account that pours into your eChecking account. This is the only way you can benefit from the higher interest rate. 

4. Axos Bank High Yield Savings Account

As far as interest rates on a savings account go, Axos Bank offers one of the highest. Their APY is no less than 0.61%, which does sound appealing enough. What do you have to do to qualify? 

First of all, there is a minimum deposit of $250 when you open your account. Apart from that, if you're planning on using your phone for mobile banking, this might not be the bank for you. According to reviews, Axos Bank does not have a strong presence in the world of mobile banking apps. 

However, you will get to enjoy their high rates as well as the lack of monthly fees, plus the super-fast access to your account. They also don't require you to have a checking account.  

5. Ally High Yield Savings Account

This best high yield savings account offers a 0.50% APY and does not require a minimum deposit, which is a great choice for customers who want to start low on their savings. At the same time, you won’t have to pay any monthly fees.  

Ally High Yield Savings Account has been the best choice for millennials for the past few years because it has won several awards for its online banking services. Millennials also love just how easy it is to use, Ally Bank offering user-friendly mobile apps that allow you to open several accounts in just a few minutes. 

This is a bank that surely knows how to appeal to its customers. You will be able to name your accounts whatever nickname you want, thus making it so much easier to save money and keep track of your goals. 

6. Discover Online Savings Account

Another financial institution that offers a competitive interest rate when it comes to the best high yield savings accounts in 2021 is Discover. Among the things you will love the most is the fact that you won’t have to pay a monthly service fee, there is no opening deposit and no extra fees. 

Apart from that, Discover will not charge you for excess withdrawals, nor will you have to pay a fee for insufficient funds, which makes it the best bank for opening a savings account. However, you should keep in mind that the bank only has one location, which might make it difficult if you wish to go there in person.  

Another important piece of information is that you will only get a debit card if you also open a checking account with them.  

7. Live Oak Bank

Here is a bank with the best interest rates for sure. Live Oak Bank offers no less than 0.60% APY. There are no monthly fees and you will not have to deposit a minimum amount when you open your account. This will make saving your money so much easier.  

One of the most interesting things about this bank and the reason why I added it to this list is the fact that it also offers CDs in seven terms. CDs stand for Certificates of Deposit. If this is something you are interested in when it comes to your personal finances, then Live Oak Bank can be the right choice for you.  

8. Quontic Bank

If it's high-interest rates you're after, then you can rejoice because Quontic bank offers an exceptional 0.55% APY. As usual, there will be no monthly fees if you decide to open a high-yield bank account with them.

However, you will have to put down $100 to be able to open your account, which is considered the minimum deposit. Like the other option I've already shown you, Quontic bank also provides Certificates of Deposit, which can prove to be a fantastic way to expand your financial portfolio.

Keep in mind you will have to deposit at least $500 for the CDs and that they range from six months all the way to three years.

9. Marcus by Goldman Sachs

I know you were waiting for this one. There was no way I could have made a list of the best high yield savings account options and not introduce Marcus by Goldman Sachs. Purely because it's probably the most famous one, and I'm quite sure you've already heard of it. So, here are some details. 

Marcus offers a 0.50% APY and does not require a minimum deposit when you open your account. As you have already guessed, this is a branch of the giant Goldman Sachs, a titan of the financial industry.  

The great thing about it is that it has a great mobile presence, with good apps on both Google Play and iOS which will allow you to take care of your finances quickly and easily straight from your phone. 

10. TIAA Bank

A bank with an outstanding APY of 0.50% and no monthly fees. However, you need to be aware that they will require a minimum deposit of $1000 before you can open your account. This is, probably, the highest on the list.

In exchange for this whopping amount, you will get security. TIAA Bank is a branch of TIAA, FSB and has no less than ten brick and mortar locations. This is what makes it a safe and secure option for storing your savings

They also offer Certificates of Deposit and will send you a reminder that they have matured a good 20 days before you need to take action.

11. Salem Five Direct

Yes, that Salem. But that's not the only interesting thing about this bank. It is, most likely, the oldest option, having been established back in 1855. Apart from that, it has a very attractive offer that might convince you to join them.

If you are a Salem customer and you have an eOne Savings account, you qualify to earn a yield on all your balances that goes up to $1,000,000.

They will also allow you to undergo transactions at their physical location. But they will charge you a $9.95 fee.

Online transactions are entirely free and you are welcome to open an account with them no matter what state in the USA you live in.

12. Pentagon Federal Credit Union

You will also find it listed as PenFed and it's another very old financial institution, having been established in 1935. More than two million people have accounts with PenFed since they offer a 0.45% APY and no monthly fees.

They will require a minimum deposit when you open your account, but it's only $5. This bank also offers Certificates of Deposit should you be interested in diversifying your portfolio.

The Pros and Cons of High Yield Savings Account Options

Now that we have all the details and the best options you can choose from at the beginning of this year, let's look at the pros and cons of high yield savings account ideas. They will help you decide if this is the best solution for your financial life. 


  • The interest rates are very high – some of the best high yield savings account options even go as high as 0.60%. The interest rates on a savings account would normally be around 0.07%. The difference is staggering.  
  • The account will make you money every day - the reason is that this type of account can compound interest on a daily basis. 
  • These accounts are not risky – as long as you choose a bank or financial institution which is insured by the FDIC, you will not risk losing your money in any way. If they go through a robbery, for example, you will get all your money back via the insurance.  
  • The money is always accessible – as opposed to other types of saving accounts, when you open a high yield savings account, you will have access to your funds whenever you need them. As a result, you can withdraw as much as you want, when you want. 
  • Online banking – most of the banks and financial institutions that offer this type of accounts have fantastic online banking services. In this way, you can take care of your finances via their mobile apps which will save you a lot of time and effort. 


The interest rates fluctuate – if you scroll right up, you will notice I said that the rates discussed here are accurate at the moment of writing this piece. This means that banks can change them at any time. As a result, you may be offered one percentage APY when you open your account but it might not last over time. 

High yield rates have gone down – the global pandemic has greatly affected this type of accounts as well as the banks that offer them. As a result, it is a well-known fact at this point that the banks now offer lower rates than in previous years. 

Inflation can affect your account – this type of account might not be the best as a long-term solution. The reason is inflation. Even if you find a bank or a financial institution that offers you great interest rates on a savings account, in time, inflation could become higher than what you earn, rendering it pointless.  

The lack of physical locations – the best part of all banks that offer this kind of accounts do not have a physical presence. As a result, it could be difficult to contact them or even hold them accountable if something happens. 

What’s the Conclusion?

We have a list of the 12 best high yield savings account options. What is the take on them? 

The most important thing to understand when you opt for a savings account with a high interest rate is that it's a great idea if you need an emergency fund or if you're planning a vacation and want to save up some money for it.

In this case, this type of account will allow you to get a good interest rate and even make some extra money without any effort that you can put to good use.