The highest rate changes weekly, so check the current leader before you move money
No single savings app holds the highest rate permanently. Banks and fintech companies adjust their rates based on what the Federal Reserve does and what competitors offer. Right now, rates range from around 4.5% to 5.35% APY across the apps that compete hardest on rate. By the time you read this, that range may have shifted.
The apps that consistently rank at or near the top include Marcus (by Goldman Sachs), Ally Bank, American Express Personal Savings, Wealthfront Cash Account, and Vio Bank. Each of these has held the top spot at different points in the past two years. Rather than chase the leader, pick an app that meets your other needs — customer service quality, how fast you can move money out, whether you need a debit card — and check its current rate before you deposit.
Rates are higher now than they were in 2021 and 2022, but they will not stay this high forever. When the Federal Reserve cuts rates, savings app rates fall within weeks. If you lock in a rate today, you are not locking it in — you are getting today's rate until the company lowers it, which they can do without notice.
Key Takeaways
- Savings app rates move every week or two and vary by company, so the highest rate today may not be the highest rate next month.
- Marcus, Ally, American Express, Wealthfront, and Vio Bank have all held top-three rates in the past year, but none guarantees the highest rate going forward.
- Rates above 5% are real and available now, but they depend on the Federal Reserve keeping rates where they are, which is not may provide.
- Before you move money, check the app's current rate on its website, not on a comparison site, because comparison sites update slowly.
How to find the actual current rate, not yesterday's
Comparison websites lag by days or weeks. The fastest way to see what each app is paying right now is to visit the app's own website and look for the rate on the savings account product page — not the home page, but the page where you would actually open an account.
Write down the rate and the date you checked it. Then check two or three other apps the same way. You are looking for the APY (annual percentage yield), which includes compounding. Some apps show the rate only after you start the account-opening process, so you may have to click through a few screens to see it.
If an app does not show the rate on its website without logging in, call customer service and ask what the current APY is. Write it down and ask when it was last changed. This tells you whether the rate is stable or moving fast.
Why the highest rate might not be the best choice for you
An app with a 5.3% rate is not worth switching to if you have to wait five business days to move money out when you need it. Check how long transfers take. Most apps move money to an external bank account in one to three business days, but some take longer. A few offer next-business-day transfers for a small fee.
Also check whether the app has a debit card. If you want to access your savings without waiting for a transfer, a debit card matters. Marcus and Ally both offer debit cards. Wealthfront and American Express do not. Vio Bank does not either.
Customer service quality varies sharply. If you have a problem — a transfer that does not go through, a question about how interest is calculated — you want to reach a human quickly. Read recent reviews on Trustpilot or the app store to see how long people wait and whether their issues get solved. A 0.1% lower rate is worth it if you never have to spend an hour on hold.
What happens to your rate when the Federal Reserve moves
Savings app rates are not fixed. They move when the Federal Reserve changes its benchmark rate, which it has done multiple times in the past three years. When the Fed raises rates, savings apps usually raise their rates within days. When the Fed cuts rates, savings apps cut their rates within one to two weeks.
You will not get a warning before your rate drops. The app will simply lower it, and you will see the new rate the next time you log in or check your account statement. If you want to know when a rate change is coming, watch Federal Reserve announcements. The Fed meets eight times a year and announces rate decisions on scheduled dates.
This means a 5.3% rate today could be 4.8% in six months if the Fed cuts rates. That is still better than the 0.01% you would get at most brick-and-mortar banks, but it is not a may provide of long-term high returns.
How much money you need to deposit to get the advertised rate
Most savings apps have no minimum deposit to get the highest rate. You can open an account with $1 and earn the full APY. A few apps have minimums — usually $25,000 or $100,000 — but they are rare among the apps competing on rate.
Check the account terms before you open. If there is a minimum, it will be listed on the account details page or in the terms and conditions. If you do not see a minimum mentioned, there probably is not one.
The difference between APY and interest paid monthly
APY is the annual rate, but interest compounds daily or monthly depending on the app. If you have $10,000 in an account earning 5% APY, you do not earn $500 in one lump sum at the end of the year. Instead, the app calculates your interest daily and adds it to your balance, so you earn interest on your interest.
With daily compounding at 5% APY, you would earn about $512.68 over a year on $10,000, not $500. The difference is small, but it adds up if you leave money in the account for years. Most savings apps compound daily, which is better than monthly or annual compounding.
You can see how much interest you have earned by checking your account statement. Most apps show interest paid in the current month and year-to-date interest. If the app does not show this clearly, ask customer service to walk you through where to find it.
What to do if you want to lock in a high rate
You cannot lock in a savings account rate. Savings accounts are not certificates of deposit (CDs). With a CD, you agree to leave money in the account for a set time — three months, one year, five years — and the bank locks in a rate for that entire period. With a savings account, the rate can change at any time.
If you want to lock in a rate, open a CD instead. Most of the same apps that offer high-yield savings accounts also offer CDs. A one-year CD at Marcus, Ally, or American Express might pay 4.5% to 5.0% APY right now, depending on the term. The rate is locked for the full term, but you cannot touch the money without paying an early withdrawal penalty.
For money you might need in the next year or two, a high-yield savings account is better because you can move it anytime. For money you know you will not need for three years or longer, a CD locks in a higher rate and removes the temptation to spend it.
Frequently Asked Questions
Can I move money between savings apps to chase the highest rate?
Yes, but it takes time and costs nothing. Transfers between banks take one to three business days. If you move $50,000 from a 4.8% account to a 5.2% account, the extra 0.4% on that money over a year is about $200. That is real money, but only if you plan to keep the money there for at least a year. If you move it again in three months, the transfer time and effort probably was not worth it.
Do I have to pay taxes on the interest I earn?
Yes. Interest earned in a savings account is taxable income. At the end of each year, the app sends you a 1099-INT form showing how much interest you earned. You report that on your tax return. If you earned more than $10 in interest across all accounts in a year, you will receive a 1099-INT.
What if the savings app goes out of business?
Your money is protected up to $250,000 per account by FDIC insurance if the app is FDIC-insured. Most high-yield savings apps are FDIC-insured through a partner bank. Check the app's website or call customer service to confirm it is FDIC-insured. If it is, your money is safe even if the company fails.
Is there a penalty for withdrawing money from a high-yield savings account?
No. You can withdraw money from a savings account anytime without a penalty. The Federal Reserve used to limit withdrawals to six per month, but that rule ended in 2020. You can now move money in and out as often as you want.
How do I know if a savings app is actually safe?
Check whether it is FDIC-insured, read recent reviews on Trustpilot or the app store, and verify the company name and website match official sources. If an app claims to be Marcus, go to marcus.com directly instead of clicking a link from an email or ad. Scammers sometimes create fake apps with names similar to real ones.