Where to find the highest savings rates right now

The banks offering the highest interest rates are almost always online banks, not the brick-and-mortar branches you walk into. Online banks like Marcus by Goldman Sachs, Ally Bank, American Express Personal Savings, Discover Bank, and Charles Schwab Bank consistently post rates that are two to five times higher than what Chase, Bank of America, or Wells Fargo offer on the same account type. The reason is simple: online banks have lower overhead costs and pass that savings to depositors.

The specific highest rate changes weekly because banks adjust their rates in response to Federal Reserve decisions and competition. On any given day, one bank might offer 4.50% APY on a savings account while another offers 4.35%. These differences matter: on $10,000, that 0.15% gap means $15 per year. Over $100,000, it means $150 per year. You can check current rates on sites like Bankrate, DepositAccounts, or the banks' own websites—rates listed there update daily or weekly.

High-yield savings accounts (HYSA) are the most common place to find these rates. Money market accounts and certificates of deposit (CDs) also offer competitive rates, though CDs lock your money away for a set term. Checking accounts almost never offer high rates; most banks pay 0.01% to 0.05% APY on checking, regardless of how much you keep there.

Key Takeaways

  • Online banks consistently offer savings rates two to five times higher than traditional banks because they have lower operating costs.
  • The highest rate available changes weekly, so the "best" bank today may not be the best next month.
  • High-yield savings accounts, money market accounts, and CDs all offer competitive rates; checking accounts do not.
  • A difference of 0.25% APY between two banks means $250 per year on a $100,000 balance, so comparing rates before opening an account matters.
  • All deposits at FDIC-insured banks are protected up to $250,000 per account type, so a smaller bank with a higher rate carries the same deposit protection as a larger one.

Online banks versus traditional banks

Traditional banks like Chase, Bank of America, and Wells Fargo typically offer 0.01% to 0.10% APY on savings accounts. Their rates are low because they make money primarily through lending, not through deposit interest. They use customer deposits to fund mortgages, auto loans, and credit cards—the interest they charge on those loans is their profit. Paying high rates on savings would cut into that profit, so they don't.

Online banks operate differently. They have no physical branches, no tellers, no real estate costs. Their only real expense is technology and customer service. Because their cost structure is so much lower, they can afford to pay depositors more and still turn a profit. Marcus, Ally, and Discover are all owned by larger financial institutions (Goldman Sachs, GMAC, and Discover Financial Services, respectively), so they have the backing to absorb deposit insurance costs and regulatory compliance. They compete almost entirely on interest rate, which is why their rates stay high.

The trade-off is convenience. You cannot walk into a branch to deposit cash or speak to a teller in person. Most online banks accept mobile check deposits and transfers from other banks, but if you need to deposit physical cash regularly, an online bank may not work for you. If you value in-person service, you will pay for it in lower rates.

How to compare rates across banks

The APY (Annual Percentage Yield) is the only number that matters when comparing savings rates. APY includes both the interest rate and how often the bank compounds interest, so it is the true measure of what you will earn. Two banks might advertise different rates, but if one compounds daily and the other monthly, the APY will show which one actually pays more.

Check the APY on the bank's website or on comparison sites like Bankrate, DepositAccounts, or NerdWallet. These sites update rates frequently and let you filter by account type (savings, money market, CD) and term length (for CDs). Write down the APY, the minimum deposit required, and any fees. Some banks waive monthly fees if you maintain a certain balance; others charge fees regardless. A 4.50% APY with a $10 monthly fee is worse than 4.40% APY with no fees.

Also check whether the rate is promotional or permanent. Some banks offer a high rate for the first three or six months, then drop it significantly. Read the fine print or call the bank to ask how long the advertised rate lasts. If it is promotional, ask what the rate will be after the promotion ends.

Account types that earn high rates

High-yield savings accounts (HYSA) are the most straightforward. You deposit money, earn interest, and can withdraw it anytime without penalty. Rates on HYSAs currently range from about 4.00% to 5.00% APY depending on the bank and the day. There is no minimum balance at some banks; others require $25,000 or more. Interest is paid monthly or daily, depending on the bank.

Money market accounts work similarly to savings accounts but often come with a debit card or checkbook, giving you more access to your money. Rates are usually slightly lower than HYSAs—often 0.10% to 0.25% lower—because of that added convenience. Minimum balances are often higher, sometimes $2,500 or more.

Certificates of Deposit (CDs) lock your money away for a set term—typically three months to five years—in exchange for a may provide rate. CD rates are usually higher than savings account rates because the bank knows it can use your money for the full term without you withdrawing it. A five-year CD might pay 4.75% APY while a savings account pays 4.50%. The catch: if you withdraw before the term ends, you pay an early withdrawal penalty, usually equal to several months of interest.

Checking accounts almost never offer high rates. Even banks that advertise "high-yield checking" typically pay 0.50% to 2.00% APY, and only if you meet strict requirements like direct deposit, a minimum number of debit card transactions, or a high balance. For most people, a checking account is for spending, not saving.

Minimum deposits and account requirements

Most online banks have no minimum deposit to open a savings account or HYSA. You can open an account with $1 and start earning interest immediately. Some banks require $25 to start, and a few require $1,000 or more. Check the bank's website before you apply.

Minimum balance requirements are different from minimum deposits. Some banks require you to keep a certain amount in the account at all times to earn the advertised rate or to avoid a monthly fee. If you drop below that balance, the rate may drop or a fee may kick in. For example, a bank might require $10,000 to earn 4.50% APY; if your balance falls to $9,999, you might earn only 0.10% APY instead. Read the terms carefully.

CDs have their own requirements. Most banks let you open a CD with $500 to $1,000, though some allow $100. The term length (three months, one year, five years) is set when you open the CD, and you cannot change it without paying a penalty.

FDIC insurance and safety

All deposits at FDIC-insured banks are protected up to $250,000 per account type per bank. This means if you have $100,000 in a savings account at Marcus and Marcus fails, the FDIC will return your $100,000. If you have $100,000 in a checking account at the same bank, that is covered separately, so you are protected for both. The rate the bank pays has no bearing on FDIC protection—a bank paying 5% APY is just as safe as one paying 0.01% APY, as long as both are FDIC-insured.

You can verify that a bank is FDIC-insured by searching the FDIC's Bank Find tool on their website. Every online bank mentioned in this article is FDIC-insured. If you are considering a smaller or less well-known bank, check the FDIC database before opening an account.

If you have more than $250,000 to save, you can spread it across multiple banks to stay within the FDIC limit at each one. For example, $250,000 at Marcus and $250,000 at Ally means both amounts are fully protected. Some banks also offer separate FDIC coverage for certain account types (like retirement accounts), so you can hold more than $250,000 at one bank if it is split across different account categories.

When rates change and how to stay informed

Banks change their rates in response to Federal Reserve decisions. When the Fed raises its benchmark interest rate, banks usually raise savings rates within days or weeks. When the Fed cuts rates, banks cut savings rates more slowly—sometimes weeks or months later. This lag means you can sometimes lock in a higher rate by moving money quickly after a Fed increase.

You do not have to stay with one bank forever. If your bank drops its rate and another bank is now offering more, you can open a new account at the higher-paying bank and transfer your money. There is no penalty for moving savings between banks. Some people maintain accounts at two or three banks to take advantage of promotional rates or to spread their deposits across the FDIC limit.

To stay informed, check rates weekly on Bankrate or DepositAccounts, or sign up for email alerts from the banks you are considering. Many banks will email you when their rates change. You can also follow the Federal Reserve's announcements—the Fed typically meets eight times per year to decide whether to raise, lower, or hold rates steady.

Frequently Asked Questions

Do I have to keep a certain amount of money in the account to earn the advertised rate?

It depends on the bank. Some banks pay the advertised rate on any balance, no matter how small. Others require a minimum balance—often $10,000 to $25,000—to earn the full rate. If your balance falls below the minimum, the rate may drop to 0.01% or a monthly fee may apply. Always read the account terms before opening an account.

Can I withdraw money from a high-yield savings account whenever I want?

Yes. High-yield savings accounts have no withdrawal restrictions or penalties. You can move money out anytime. The only limit is that federal law previously capped withdrawals at six per month, but that rule was suspended in 2020 and has not been reinstated. Most banks now allow unlimited withdrawals.

What happens to my interest if I move my money to a different bank?

Interest accrues daily and is usually paid monthly. If you move your money mid-month, you will receive interest for the days you held the money at the original bank. The new bank will start paying interest on the new balance the day the transfer arrives. There is no loss of interest when you switch banks.

Is it safe to keep money at an online bank I have never heard of?

Yes, as long as it is FDIC-insured. Check the FDIC's Bank Find tool to confirm. FDIC insurance protects your deposits up to $250,000 regardless of the bank's size or reputation. An online bank paying 5% APY is just as safe as a large traditional bank paying 0.01%, as long as both are FDIC-insured.

Will opening multiple savings accounts hurt my credit score?

No. Opening a savings account does not trigger a hard credit inquiry and does not affect your credit score. Banks may do a soft inquiry to check for fraud, but that does not show up on your credit report. You can open accounts at multiple banks without any credit impact.