Unveiling the Best Savings Account Interest Rates of February 2024
Written by
Dawn Allcot
Edited by
Melanie Grafil
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When you’re choosing a bank to park your savings, you want one with low fees and good customer service, of course. But you also want to find the best savings account interest rates so your money will grow faster.
GOBankingRates evaluated top online and brick-and-mortar banks to find the best savings account interest rates of February 2024.
Financial Institutions With the Best Savings Account Interest Rates
Whether you’re saving for a specific financial goal or setting aside money for emergency expenses, you can earn some extra cash by keeping your money in a high-yield savings account. The national savings rate is currently 0.47%, as reported by the FDIC, but you can earn considerably more in an account that offers a higher rate to maximize your savings.
If you’ve been wondering what banks have a 5% APY, look no further. Take a closer look at these banks with interest rates that are actually beating inflation.
- Newtek Bank: Personal High-Yield Savings – APY
- UFB Direct: UFB High Yield Savings – APY
- Valley Direct: High Yield Savings – APY
- FNBO Direct: High-Yield Online Savings – APY
- CIT Bank: Platinum Savings – APY
- Bask Bank: Bask Interest Savings – APY
- Varo Bank: Varo Savings Account – APY up to $5,000; on all other balances
- Citizens Access: Savings – APY
Newtek Bank
Why it stands out: Newtek Bank is an FDIC-insured bank–not a fintech company or digital platform for banking services–so you’re actually doing business directly with the bank. The APY is 11 times higher than the national average, and accounts start earning interest with balances as low as $0.01.
Pros
- No monthly fees
- No minimum balance requirement to earn high APY
- Online account management
Cons
- Must link to an external account to fund the new savings accounts
- No debit card
What to look out for: The only way to deposit or withdraw money from your Newtek Bank savings account is through the linked external account.
UFB Direct
Why it stands out: UFB Direct’s UFB High Yield Savings account offers an APY of in February 2024, with no minimum deposit and no monthly maintenance fees. Unlike some savings banks that require a minimum daily balance to receive the highest rates, you can earn on any balance, whether you have less than $10,000 in your account or more than $100,000.
Pros
- No monthly maintenance fees
- No minimum deposit
- Earn the same APY on all balances
- Access your money 24/7 with online banking tools
Cons
- No standard checking account option
- No brick-and-mortar branch locations
What to look for: You should be aware that UFB Direct is an online financial services company and funds are held and FDIC-insured through Axos Bank. You must be a U.S. citizen or legal resident to open an account.
Valley Direct
At Valley Direct, you can open a savings account in as few as five minutes and start taking advantage of the above-average APY.
Why it stands out:
Valley Direct is one of the few banks that compounds interest daily and deposits it into the account. This helps your balance grow faster than it would in an account with monthly compounding interest. Since you can’t visit a local branch to withdraw funds, you may be less tempted to take out money for various expenses.
Pros
- $1 minimum deposit required to open an account
- No maintenance fees
- Interest compounds and is credited to the account daily
Cons
- Access to account is online only
- Funds transferred from another bank may not be available for up to 3 days
What to look for: Although Valley Direct does not have minimum balance requirements, the bank may close your account the balance stays at $0 for more than 60 days.
FNBO Direct
Why it stands out: Earn APY, with no monthly fees or minimum balance requirements. The account comes with access to online banking for account management and direct deposit to boost savings.
Pros
- No monthly fees
- $1 minimum deposit
- Earn the same APY on your entire balance
Cons
- Brick-and-mortar branches are only in Iowa, Kansas, Nebraska, South Dakota, Texas and Wyoming
- Limited ATM access can lead to more fees
What to look out for: FNBO may charge you for using non-branded ATMs and may hold check deposits for up to 10 days, and these fees can quickly add up.
CIT Bank
Why it stands out: Online-only CIT Bank offers APY on its Platinum Savings account with no monthly service fees. If you keep a balance of at least $5,000, your money qualifies for the top APY.
Pros
- No monthly fees
- Deposit checks through the mobile app
- Daily compounding interest
Cons
- $100 minimum deposit required to open an account
- Tiered interest rates
What to look out for: CIT Bank and First Citizens Bank fall under the same FDIC insurance, so you cannot have separately insured accounts at each institution — up to $250,000 in combined balances for each depositor is insured in each account category.
Bask Bank
Why it stands out: Bask Bank’s Interest Savings account has a high APY of with no monthly account fees. You also have the option to choose the Bask Mileage Savings Account, which delivers 2.5 American Airlines AAdvantage miles for every $1 in your account annually.
Pros
- No monthly account fees
- Choose to earn points or miles
- No minimum deposit required to open an account
Cons
- No ATM cards or debit cards
- Government-ID, Social Security number and cell phone required to open an account
What to look out for: Be aware that if you don’t fund your account within 15 business days of opening, Bask Bank may close the account.
Varo Bank
Why it stands out: If you have direct deposits totaling $1,000 or more and keep your Varo account balances positive in any given month, you can earn APY on up to $5,000 in your Varo Bank savings account. Otherwise, you’ll earn , which is still a high rate compared to many banks pay for standard savings accounts.
Pros
- Default APY higher than the national average
- No fees
- No minimum balance required
Cons
- APY only available on up to $5,000 of your balance
- Must receive qualifying direct deposits and maintain a positive balance in the account to earnt the top APY
What to look out for: Even though the lower rate is well above the national average, make sure you meet the monthly requirements to earn the highest interest rate.
Citizens Access
Why it stands out: With a high APY of on your full balance, Citizens Access is a solid choice for a high-yield savings account. Plus, there are no fees and the minimum opening deposit is just $0.01.
Pros
- Minimum deposit to open is just $0.01
- Mobile deposit checks up to $100,000
- No fees
Cons
- No branch or ATM access available
- No cash deposits or wire transfers
What to look out for: Citizens Access is entirely online, so you won’t be able to access your account at a branch or through an ATM–you can access your money by linking an account at another financial institution or requesting that Citizens send you a check.
Final Take
Earning a high interest rate can help your balance grow, but instead of asking “Where can I get 5% interest on my savings account,” consider how the bank will help you meet your financial goals, whether it’s in a savings, checking or even a CD account. A bank that applies a high APY to a portion of your balance or one that requires you to keep a substantial amount of money in your account may not be the best choice for you. Finally, keep in mind that interest rates can change, and what may be the top rate today may not make the top 10 list six months from now.
Explore More on Interest Rates
- APR vs. Interest Rates: What’s The Difference?
- Can You Earn 7% Interest On Savings Accounts? What You Need To Know
- How Much Interest $10,000 Earns in a Year
- How Much Interest Would You Earn on a Million Dollars?
Best of Savings Accounts
FAQ
Here are the answers to some common questions about savings account interest rates.- What bank currently has the highest savings interest rate?
- Out of all U.S.-based online and brick-and-mortar banks, UFB Direct is currently offering the highest interest rate on any balance. Varo Bank's APY comes close, but only on some of your balance.
- Which bank gives 7% interest on savings?
- No bank currently gives 7% interest on savings, but Landmark Credit Union's Premium Checking account comes with a 7.50% APY. This rate applies to balances up to $500, and the APY can drop as low as 0.05% for balances over that amount. Digital Federal Credit Union pays 5.50% APY on balances up to $1,000. The rate falls to 0.15% for the remainder of the balance. If you keep more money in your savings account, you may earn more at another bank even with a lower rate.
- Where can I get 5% interest on my money?
- You can earn 4.01% APY with a UFB Direct Preferred Savings account.
- Varo Bank offers 5.00% APY with its savings account on your balance up to $5,000, as long as you have a positive balance in your Varo Bank Account and Savings Account and direct deposits totaling $1,000 or more in that month.
- Which bank is best for savings account interest rate?
- You can find the highest interest rate on all balances right now with a UFB Direct UFB Preferred Savings account.
- Which bank has highest savings interest rate?
- Newtek Bank, UFB Direct and Evergreen Bank Group offer similar APY rates--4.75% on their high yield savings accounts.
Amber Barkley, Daria Uhlig and Cynthia Measom contributed to the reporting for this article.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Feb. 8, 2024.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- Federal Deposit Insurance Corporation. 2023. "National Rates and Rate Caps."
