Which Savings Account Will Earn You the Most Money?

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Savings accounts have evolved and there are many kids–from the local brick-and-mortar bank to high-interest, no-fee choices offered by online-only options.

In this guide, you’ll see on what to look for in an account to make sure it gives you what you need while gaining the most from your returns, including information on CDs so you can find what’s best for your goals.

Who Should Open a Savings Account?

Anyone who wants to grow their money in a safe and easily accessible way would benefit from a savings account. If you’re just starting out on your savings journey–for example, you’re a student or you’ve just entered the work force–it can be super helpful to get started off on the right foot.

Savings accounts allow you to plan for a specific goal. You can set aside funds for a vacation, to buy a home or just a rainy day. You can also set up transfers to add more to your balance. The best part is you don’t even have to think about it–it’s a low-effort way to build a good financial habit.

Best Savings Accounts for Earning Interest

Finding the right fit for your financial needs and goals is important. Here are four common options and what each has to offer.

1. High-yield savings account
2. Online savings account
3. CDs
4. Money market accounts

14. High-Yield Savings Account

Typically, a savings account offers much greater than the national average savings interest rate. This is currently 0.41% APY as of March 17, 2025, according to the FDIC. Both banks and credit unions offer them.

The best high-yield savings accounts offer much higher interest rates than traditional savings accounts, allowing you to grow your money while the interest compounds. Because these are savings accounts, they also usually offer no fees and low or no minimum balance requirements.

A savings account is also a very safe form of investing. They are also almost always insured up to $250,000 by the U.S. government through the FDIC or National Credit Union Administration.

Online Savings Accounts

Because they have much lower overhead than traditional commercial banks, which have physical branches, staff and other costs, online banks routinely offer the highest interest rates for savings accounts. They also usually offer low or no fees and low minimum balance requirements.

They do come with some potential drawbacks, however. For one, person-to-person customer service is not available. Also, you’ll want to make sure their network of ATMs, if they have them, is adequate for your needs and in your area. You’ll also want to make sure you are comfortable doing your banking online or through an app.

Certificates of Deposit

CDs offer high interest rates with the tradeoff of tying up your money for a fixed period, anywhere from three months to many years. At credit unions, you might see them referred to as share certificates or certificates.

The benefit of a CD is that once you lock in the rate, it won’t fluctuate the way a savings account will. There are pros and cons to CDs, however. If rates drop, yours does not. If rates rise, however, you don’t benefit as much, and your rate stays the same. 

Early Withdrawal Penalties

You might face early withdrawal penalties if you take the money out before the CD reaches maturity. If you are looking for steady returns and have a mid- to long-term savings goal in mind, such as saving for a down payment on a house or a new car, a CD may be a wise choice.

Money Market Accounts

Both banks and credit unions offer money market accounts. Money market accounts typically have interest rates that are competitive with other high-yield savings accounts. However, they might include features like check-writing capabilities or even online bill pay directly from the account.

Money market accounts are a good place to hold emergency savings, thanks to the combination of high yields and how easy and quick it is to access your funds. Read the fine print before opening a money market account, though, because some may have monthly fees, minimum opening deposit requirements or ongoing minimum balance requirements. As with CDs, the larger your savings, the higher the interest rate in most cases.

Factors To Consider When Choosing a Savings Account

What should you think about when you consider which savings account will earn you the most money? High interest earns money for you while it sits, to start. Here are some other factors to consider:

Rates Across Different Banks

Growing your money is an important reason for opening a savings account, and since rates can vary, it’s important to shop around. A higher annual percentage yield ensures your money grows faster over time and takes advantage of compounding interest.

Fees

While people often focus most on the interest rate of competing savings accounts, other factors can add or subtract from that comparison. Fees can erode your earnings, so it’s important to find an account with minimal or no fees. Consider the cost of monthly maintenance fees, withdrawal penalties and minimum balance requirements.

Accessibility and Withdrawal Limits

If you need access to your funds regularly, make sure the account you choose can provide it. A lower interest rate or a small fee might be worth the convenience. Some savings accounts impose limits on the number of withdrawals per month. Also, check out each account’s mobile banking features, ATM network and customer service–do the reviews line up? Do they encourage or deter you?

Top Banks Offering the Best Savings Account Rates in 2025

As of March, several banks offer over 4.00% APY. But which savings account will earn you the most money? Here are five top picks.

Pibank

This online bank offers an APY of , with no minimum deposit, no fees and FDIC insurance.

Openbank

This bank also offers a competitive APY of with no minimum deposit, no fees and FDIC insurance.

Fitness Bank

Fitness also offers APY on savings accounts, but bumps it to APY if you also open a checking account.

Compare the Top Savings APYs

How To Make the Most Out of Your Savings Interest

Finding a high interest rate savings account is only the beginning. Here are strategies to maximize that higher yield.

Automate Deposits

Life gets busy and money sitting in a checking account tends to get spent. One of the best ways to take the work out of saving money, and ensuring you do it, is to make it invisible. Set up automatic transfers from your checking account or paycheck to your savings.

Take Advantage of Promotional Rates

Banks and credit unions often offer promotional rates to pull in new customers. These introductory rates can be much higher than standard APYs. So even if you have your money in one bank, don’t stop researching and shopping.

Choosing the Right Account Type for Your Goals 

The best savings account depends on your specific financial objectives. Understanding the differences between account types is key to making an informed choice.

• High-yield savings accounts: These are ideal for want their money to be accessible at any time. They are also good if you plan to add more to the account regularly as part of your savings strategy.
• Certificates of deposit: CDs are best suited for savers who don’t need to access their money for the period they sign up for. They are also great if you believe interest rates will fall in the future. CD rates are fixed, while most savings accounts are adjustable.
• Annuities: These are offered by insurance companies to give you a long-term savings solution with guaranteed returns. They come with risks, however, such as limited liquidity and penalties or charges for early withdrawals.

Risks and Downsides To Consider

While savings accounts offer numerous benefits, there are potential drawbacks to be aware of:

High-Yield Savings Accounts

High-yield accounts usually have variable interest rates, which means they fluctuate with market conditions and other factors. These also yield less than longer-term investment strategies like stocks, bonds and mutual funds.

Inflation

In periods of high inflation, such as those seen in the last few years, any interest gained could be wiped out by higher overall costs. For instance, if inflation is more than your APY, you are essentially losing purchasing power. So, ideally, your overall investment strategy would take inflation into account.

Comparing Savings Accounts to Other Investment Options

Savings accounts offer security and liquidity, but they may not always be the best investment for your financial situation.

Savings Accounts vs. Stocks, Bonds and Mutual Funds

Savings accounts are low-risk and give you guaranteed returns but they often fall short of the higher earning potential of market investments like stocks, bonds and mutual funds. If you feel comfortable taking on more risk, these might be a more suitable investment strategy for long-term financial growth.

Benefits of Low-Risk Saving vs. High-Risk Investing

For those who seek stability, savings accounts are ideal because they offer predictable returns and government-backed insurance. High-risk investments, on the other hand, can be more lucrative, but can also lead to losses during market downturns.

The Bottom Line

When you’re thinking about which savings account will earn you the most money, ask yourself what you need most. A passive way to earn extra dollars on top of what you already have? A good place to start is to find the highest interest rate among banks or credit unions that offer the services you need.

High-yield savings accounts each offer unique advantages and drawbacks–the key is finding the right choice for your financial goals.

Dawn Allcot 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 March 26, 2025.

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