Best High-Yield Online Savings Accounts of 2021

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If your savings account is earning pennies every month from your traditional bank’s annual percentage yield, you should consider an online savings account as an alternative savings builder. With a growing number of online banks offering high rates, even big banks are jumping on to this banking product.

It pays to check out the high yields from the best online savings accounts and look into which financial institution has what you are looking for in a savings account. Keep reading to see the banks included in this in-depth review.

Best High-Yield Online Savings Accounts at a Glance

A high-yield savings account is like a traditional savings account but it earns interest at a higher rate. For instance, a high-yield savings account at Discover Bank has a current APY of 0.40% while Bank of America’s savings accounts have an APY that ranges from to 0.05%, depending on your account balance.

When searching for the best online savings account, explore all the account offers before signing up for anything. Monthly service fees, mobile app access and customer service options are all pieces of information worth examining.

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Bank Online Savings Account APY Monthly Maintenance Fee Customer Service Mobile App
CIT Bank Savings Builder 0.40% No Online and mobile banking or 24/7 automated telephone baking Yes
Synchrony Bank High Yield Savings 2.20% No Chat online, over the phone or send a letter Yes
Barclays Online Savings 0.50% No Phone service, self-service, mobile app, Twitter or send a letter Yes
Ally Bank Online Savings Account 0.50% No Phone service, online chat or email Yes
American Express® National Bank, Member FDIC High Yield Savings Account 0.50% No Online or over the phone Yes
Discover Online Savings Account 0.40% No Over the phone 24/7 or email Yes
FNBO Direct Online Savings Account 0.35% No Email, over the phone, fax or send a letter Yes
iGOBanking iGOsavings Plus 0.25% No Over the phone, secure messaging or email Yes
Bank5 Connect High-Interest Savings Account 0.40% No Over the phone, online chat or send an online contact form Yes
Capital One 360 Performance Savings 0.40% No Over the phone, fax, mail or email Yes
Brio Direct High-Yield Savings 0.40% No Over the phone or by mail Yes
TAB Bank High-Yield Savings 0.50% No Over the phone or online query Yes
Vio Bank High-Yield Savings Account 0.51% No Over the phone, online form, chat, mail Yes
CIBC US Agility Online Savings Account 1.85% No Over the phone or mail Yes
Varo Savings Account First earn 0.20% and then up to 3.00% by meeting the requirements No Over the phone, email Yes
Quontic Bank High-Yield Savings 0.55% No Over the phone, live chat or email Yes
Purepoint Financial Online Savings 0.40% No Over the phone, email Yes
Comenity Direct High-Yield Savings 0.55% No Over the phone, email or secure messaging Yes
Axos High-Yield Savings Ranges from 0.15% to 0.61%, depending on account balance No Over the phone, chat virtual assistant, secure messaging Yes
Marcus by Goldman Sachs Online Savings Account 0.50% No Over the phone Yes
Citizens Access Online Savings Account 0.40% No Over the phone or secure messaging No
Affirm Affirm Savings 0.61%, but the rate grows along with your balance, as well as in accordance with current market conditions No Online form Yes
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Best High-Yield Online Savings Accounts of 2021

With comparable monthly service fees and APY rates, it may be hard to figure out which online savings account is best for you. However, other details of high-interest savings accounts are signposts that will help direct you toward your right financial path.

CIT Bank Best Online Savings Accounts

CIT Bank

Why We Like It: This account is FDIC insured and you can earn up to 0.40% APY when you maintain a high balance or make regular deposits into your account.

Benefits

  • High interest rate of 0.40% APY
  • Easy online access
  • No account opening or maintenance fees

Drawbacks

  • Minimum account balance of $25,000 or $100 monthly deposits required to earn the highest interest rates
  • $100 minimum to open

Specs

  • Fees: No monthly service fee
  • Minimum Deposit: $100
  • Minimum Balance: $25,000 minimum balance or $100 in monthly deposits to earn the highest interest rate
  • Balance To Avoid Fees: $0
  • APY: 0.40%

How To Open an Account: To open a CIT Bank Savings Builder account, start by creating an account online using your primary home address, a valid email address, phone number and your Social Security number.

Synchrony Bank Best Online Savings Accounts

Synchrony Bank

Why We Like It: You can earn a high interest of 2.20% APY. This account is completely online or on your mobile app, which is a safe and easy way to deposit checks, transfer funds and update your account balances.

Benefits

  • The APY applies to any account balance
  • Access to cash with a trip to the ATM

Drawbacks

  • No physical branch for you to visit for your banking

Specs

  • Fees: You are responsible for other financial institutions’ ATM transaction fees after the monthly $5 reimbursement
  • Minimum Deposit: No minimum deposit
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fees: $0
  • APY: 2.20%

How To Open an Account: If you aren’t already a Synchrony customer, jump online and fill out a general application for its High Yield Savings account. If you are a Synchrony banker, simply log in and follow the steps.

Barclays Best Online Savings Accounts

Barclays

Why We Like It: The 0.50% APY account allows direct deposits and online transfers between outside banks. You can access your funds online and on the mobile app 24/7.

Benefits

  • No minimum balances or deposit required to open the account

Drawbacks

  • This bank is online-only in the U.S.

Specs

  • Fees: No monthly service fee
  • Minimum Deposit: No minimum deposit
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fees: No fees to avoid
  • APY: 0.50%

How To Open an Account: Aside from your personal information, you will need to supply an external bank name, routing and account numbers as your initial deposit will be transferred from an existing external bank account.

 

Ally Bank Best Online Savings Accounts

Ally Bank

Why We Like It: This account has no monthly maintenance fees, free official and cashier’s checks and free domestic and international incoming wires.

Benefits

  • You receive an ATM card attached to your account
  • Easy 24/7 customer support

Drawbacks

  • No physical branch to do your banking

Specs

  • Fees: No monthly maintenance fee
  • Minimum Deposit: No minimum deposit
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fees: No fees to avoid
  • APY: 0.50%

How To Open an Account: To enjoy the perks of Ally Bank’s Online Savings Account, start by giving some personal details like your address, contact information and Social Security number. You can find more information here.

American Express® National Bank, Member FDIC

Why We Like It: American Express High Yield Savings allows recurring bank transfers to pay for different accounts. This account has a competitive 0.50% APY and is easier to open if you have another American Express account.

Benefits

  • There are no minimum deposits
  • No monthly fees
  • Allows up to nine withdrawals or transfers per month

Drawbacks

  • American Express has no physical branch to do your banking
  • No ATM or debit card

Specs

  • Fees: No monthly fees
  • Minimum Deposit: No minimum deposit
  • Minimum Balance: $1 to earn APY
  • Balance To Avoid Fees: No fees to avoid
  • APY: 0.50%, as of March 11, 2021

How To Open an Account: Gather your personal information, bank account number and routing number before completing a quick application online. If you’re opening a joint account, you’ll need the other account holder’s personal info, including their Social Security number.

Discover American Express National Bank Personal Savings

Discover Bank

Why We Like It: Discover’s account has 0.40% APY with daily compounded interest that is paid out monthly. There are no monthly maintenance fees, insufficient fund fees or excessive withdrawal fees.

Benefits

Drawbacks

  • No physical branches to do your banking

Specs

  • Fees: No monthly maintenance fees or any other fees
  • Minimum Deposit: No minimum deposit
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fees: No fees to avoid
  • APY: 0.40%

How To Open an Account: Basic personal information and your Social Security number or Taxpayer ID is all you need to start your Discover Online Savings Account application. After you receive an email confirmation, you can fund the account.

FNBO Direct American Express National Bank Personal Savings

FNBO Direct

Why We Like It: This savings account offers direct deposit and digital payments. FNBO Direct also offers its Zelle equivalent, Popmoney, which is a way to transfer money to others.

Benefits

  • Higher rate than a standard savings account
  • Online and mobile banking

Drawbacks

  • No physical branch to do your banking

Specs

  • Fees: No monthly fees
  • Minimum Deposit: $1
  • Minimum Balance: $0.01 for APY
  • Balance To Avoid Fees: No fees to avoid
  • APY: 0.35%

How To Open an Account: FNBO Direct requires a few pieces of information to open an individual or joint Online Savings Account. These include your Social Security or Tax ID number, a driver’s license or ID card issued by a state DMV and employment, loan or mortgage and existing banking information.

igobanking American Express National Bank Personal Savings

iGOBanking

Why We Like It: This online savings account is clear and simple. There are no minimums to maintain a bonus rate and no monthly fee. And it only takes about 10 minutes to open this account online.

Benefits

  • Bonus rates on balances up to $25,000
  • No monthly fees
  • No minimums

Drawback

  • No physical branches to do your banking
  • Highest rates limited to balances of $5,000 or less
  • No bonus rate for balances above $25,000

Specs

  • Fees: No monthly fees
  • Minimum Deposit: No minimum deposit
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fees: No fees to avoid
  • APY: 0.25%

How To Open an Account: When you’re ready to open your high-interest savings account at iGObanking.com, you’ll just have to answer a few questions and then you can start transferring funds. A valid form of identification — a driver’s license, state-issued ID, military ID or passport — is required.

 

Bank5 Connect American Express National Bank Personal Savings

Bank5 Connect

Why We Like It: It has a strong APY of 0.40% and your savings can be used to cover an overdraft in your checking account.

Benefits

  • Good APY
  • No monthly maintenance fee

Drawbacks

  • There is a fee to receive your statements by mail

Specs

  • Fees: $1 each statement
  • Minimum Deposit: $10
  • Minimum Balance: $0, but $100 to earn APY
  • Balance To Avoid Fees: Fee can be avoided by receiving eStatements
  • APY: 0.40%

How To Open an Account: It only takes about 10 minutes to complete Bank5 Connect’s High-Interest Savings Account application. Standard personal ID and banking information is all you’ll need to start.

 

Capital One American Express National Bank Personal Savings

Capital One

Why We Like It: The 360 Performance Savings account has a high APY of 0.40%. The account also requires no minimums and has no monthly fees.

Benefits

  • All account balances have an interest rate of 0.40%
  • Open an account online in about 5 minutes

Drawbacks

  • No comparative drawbacks because Capital One has branch locations and Capital One Cafes
  • No debit or ATM card

Specs

  • Fees: No monthly service fees
  • Minimum Deposit: No minimum deposit
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fee: No fees to avoid
  • APY: 0.40%

How To Open an Account: 360 Performance Savings accounts do not have debit cards, ATM cards or check-writing capabilities but that doesn’t mean they aren’t worth your while. To enjoy the perks of the 360 Performance, register as a new customer or log in with your existing Capital One account info.

Brio Direct American Express National Bank Personal Savings

Brio Direct

Why We Like It: This High-Yield Savings account has a high APY of 0.40%. The online account also has no monthly fees and takes minutes to open.

Benefits

  • Online and mobile banking available
  • One of the higher APY rates

Drawbacks

  • $25 to open the account
  • No physical branches to visit

Specs

  • Fees: No monthly service fees
  • Minimum Deposit: $25
  • Minimum Balance: $25
  • Balance To Avoid Fee: No fees to avoid
  • APY: 0.40%

How To Open an Account: A Brio Direct High-Yield Savings account can be opened in just a few minutes. All you need is your contact information, a driver’s license, passport or state ID card and your Social Security number.

TAB Bank American Express National Bank Personal Savings

TAB Bank

Why We Like It: This account has an excellent APY rate of 0.50% with no balance caps or monthly service fees.

Benefits

  • No opening deposit required
  • Online and mobile banking available

Drawbacks

  • No physical branches to visit

Specs

  • Fees: No monthly service fees
  • Minimum Deposit: No minimum deposit
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fee: No fees to avoid
  • APY: 0.50%

How To Open an Account: To start enjoying TAB’s impressive APY rate, check out its streamlined application process online. Basic personal information and your Social Security number are required to take your first step to high-yield savings.

VIO Bank American Express National Bank Personal Savings

Vio Bank

Why We Like It: This account has a high APY of 0.51% with no monthly service fees.

Benefits

  • Online and mobile banking available

Drawbacks

  • $100 to open the account
  • No physical branches to visit

Specs

  • Fees: No monthly service fees
  • Minimum Deposit: $100
  • Minimum Balance: $100
  • Balance To Avoid Fee: No fees to avoid
  • APY: 0.51%

How To Open an Account: You can open a new account online in less than five minutes — all you’ll need to start is your Social Security number, driver’s license and mailing address. Please note that automated information is available 24/7 but customer service representatives are only available during scheduled working hours.

 

CIBC US

Why We Like It: The Agility Online Savings Account has a 1.85% APY with no maintenance fees.

Benefits

  • Online and mobile banking available

Drawbacks

  • $1,000 minimum to open the account
  • The account balance cannot be over $1 million

Specs

  • Fees: No monthly service fees
  • Minimum Deposit: $1,000
  • Minimum Balance: $0.01
  • Balance To Avoid Fee: No fees to avoid
  • APY: 1.85%

How To Open an Account: The Agility Savings Account can be opened easily — you’ll need to provide a current U.S. home address, a Social Security number, a U.S. driver’s license or state-issued identification, the joint owner’s information if applicable and a minimum $1,000 deposit.

Varo

Why We Like It: Varo gives you the opportunity to earn the highest APY in this review by far, without jumping through too many hoops.

Benefits

  • Easy to earn an outstanding APY
  • Early direct deposit
  • No monthly maintenance fees

Drawbacks

  • Highest rate only applies to balances of $5,000 or less
  • Starting rate is low

Specs

  • Fees: No monthly fees
  • Minimum Deposit: $0
  • Minimum Balance: $0.01 to earn interest
  • Balance To Avoid Fees: No fees to avoid
  • APY: First earn 0.20% and then up to 3.00% by meeting the requirements

How To Open an Account: Enter your email address online to start your Savings Account application.

Quontic Bank Best Online Savings Accounts

Quontic Bank

Why We Like It: Quontic Bank offers an online savings account with 0.55% APY and over 28,000 fee-free ATMs.

Benefits

  • Option of opening an Amplify Interest Checking Account when opening this savings account
  • Online and mobile banking

Drawbacks

  • $100 minimum to open the account
  • No physical banks

Specs

  • Fees: No monthly service fees
  • Minimum Deposit: $100
  • Minimum Balance: $0
  • Balance To Avoid Fee: No fee to avoid
  • APY: 0.55%

How To Open an Account: A $100 minimum deposit is required to open an online savings account with Quontic, but the application process is easy. You’ll need your Social Security number, a driver’s license, military ID or U.S. passport, along with a home address and personal information.

Purepoint Financial Best Online Savings Accounts

Purepoint Financial

Why We Like It: Purepoint Financial’s Online Savings account offers an APY of up to 0.40% with no monthly account fees.

Benefits

  • 24/7 online and mobile access

Drawbacks

  • Check Purepoint’s website carefully; the 0.40% APY is only available if you have an account balance of $10,000 (it is 0.01% APY for anything lower than $10,000)

Specs

  • Fees: No monthly service fee
  • Minimum Deposit: $10,000
  • Minimum Balance: No minimum balance but see APY note above
  • Balance To Avoid Fee: No fees to avoid
  • APY: 0.40% for balances over $10,000

How To Open an Account: APY rates are valid for accounts opened online or by phone. A valid email address and online banking enrollment are required to open and maintain an account.

Comenity Direct Best Online Savings Accounts

Comenity Direct

Why We Like It: This High-Yield Savings Account has an APY 0f 0.55% with no hidden fees or monthly service fees

Benefits

  • Free ACH transfers
  • Free online statements

Drawbacks

  • $100 to open an account

Specs

  • Fees: No monthly service fee
  • Minimum Deposit: $100
  • Minimum Balance: $100
  • Balance To Avoid Fee: No fees to avoid
  • APY: 0.55%

How To Open an Account: You can enjoy the benefits of this High-Yield Savings Account in three simple steps:

  1. Fill out a quick application online with some basic information and funding details.
  2. Transfer $100 or more into your account.
  3. Start saving.

Axos

Why We Like It: This account has an APY ranging from 0.15% to 0.61%, depending on account balance with no minimums and no fees.

Benefits

  • One of the highest rates available
  • Easy online application online

Drawbacks

  • No physical branches to visit
  • Lower rate for balances of $25,000 or more

Specs

  • Fees: No monthly service fee
  • Minimum Deposit: $250
  • Minimum Balance: $0
  • Balance To Avoid Fee: No fees to avoid
  • APY:0.15% to 0.61%

How To Open an Account: The only requirements needed to open an Axos High-Yield Savings account are that you have a valid tax identification number and a legal address.

Marcus by Goldman Sachs Best Online Savings Accounts

Marcus by Goldman Sachs

Why We Like It: Marcus is the online/mobile banking option by Goldman Sachs and offers an APY of 0.50% with no fees or minimum deposits.

Benefits

  • No fees
  • Account can be linked to other bank accounts
  • Same-day transfers to and from other banks of $100,000 and below

Drawbacks

  • No physical branches to visit for this account

Specs

  • Fees: No monthly service fee
  • Minimum Deposit: No minimum deposits
  • Minimum Balance: No minimum balance
  • Balance To Avoid Fee: No fees to avoid
  • APY: 0.50%

How To Open an Account: The Marcus Account online application process is secure and fast. You will need to provide your personal information and Social Security number before you can start transferring funds by linking your account to another bank.

Citizens Access Best Online Savings Accounts

Citizens Access

Why We Like It: Citizens Access offers an online savings account with 0.40% APY and no fees.

Benefits

  • Online and mobile banking
  • No fees

Drawbacks

  • $5,000 minimum deposit to open the account

Specs

  • Fees: No monthly service fee
  • Minimum Deposit: $5,000
  • Minimum Balance: $5,000
  • Balance To Avoid Fee: No fees to avoid
  • APY: 0.40%

How To Open an Account: Start by selecting the Citizens Access Online Savings Account from the product drop-down list and choose a deposit amount. Then you are just a few steps away from funding your new account.

Affirm

Why We Like It: Affirm’s rate of 0.61%, but the rate grows along with your balance, as well as in accordance with current market conditions, is one of the highest available, and the account has no fees.

Benefits

  • Excellent rate
  • Open account online or in app
  • No minimum balance or fees

Drawbacks

  • Online only, no physical branches
  • Must have account on Affirm retail platform

Specs

  • Fees: $0
  • Minimum Deposit: $0.01
  • Minimum Balance: $0
  • Balance To Avoid Fee: No fee to avoid
  • APY: 0.61%, but the rate grows along with your balance, as well as with current market conditions

How To Open an Account: Create an account on Affirm’s shopping platform. Then log into your account and follow the prompts to open your savings account.

Tips for Choosing the Best High-Yield Savings Accounts

Important things to consider when opening a high-yield savings account are how much you plan to deposit, how easy it is to move money in and out of the account and how you like to do your banking.

Tips to remember:

  • Remember to peruse GOBankingRates’ best bank account promotions.
  • Review your account balance and see what is the highest APY you can get with that balance.
  • Find an online savings account with a linked ATM card if you need access to cash.
  • If you like in-person banking, open an account with a bank or credit union that has physical branches nearby.

High-Yield Savings Accounts vs. Traditional Savings Accounts

High-yield savings accounts offer higher APY rates than traditional savings accounts. The biggest difference to keep in mind is that many banks compound APY interest daily for high-yield accounts and then pay into your account monthly, whereas with traditional savings accounts, the interest is earned on the monthly rate.

There are advantages and disadvantages to consider with online savings accounts.

Advantages of a High-Yield Savings Account

  • You’ll earn more in interest and, thanks to compound interest, your savings will grow faster compared to a traditional savings account.
  • Online high-yield savings accounts have fewer fees because there is less overhead for a bank or credit union to cover.
  • Online savings are typically less accessible than your typical online checking account. Following the “out of sight, out of mind” maxim, you’ll be less tempted to tap your online savings for impulse purchases.

Disadvantages of a High-Yield Savings Account

  • High-yield online savings accounts aren’t perfect for people who make a lot of withdrawals and deposits to and from their accounts. Most online savings accounts require funds to be transferred in and out of these accounts, which can take up to two days.
  • High-yield savings accounts are not ideal for anyone without easy and consistent access to computers or mobile devices. These are online accounts, so banking at a physical branch is typically not possible.

Summary

The best high-yield savings accounts are from online (or primarily online) banks that offer a high APY rate of around 0.40% and higher. You can easily open one of the best online savings accounts in minutes online and start saving with your first deposit.

While interest earned is taxable because it is considered income by the IRS, you should still seriously consider taking advantage of the multiple benefits from these accounts

GOBankingRates’ Best Banks Rankings

Each year GOBankingRates evaluates over 120 banks and their banking products to help you find the ideal bank for your needs. Check out the detailed rankings below.

    Daria Uhlig contributed to the reporting for this article.

    This article was updated on Oct. 19, 2021 to clarify the minimum to earn APY on the American Express High Yield Savings Account.

    The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired.

    Rates and fees are subject to change. American Express rates accurate as of Sep. 22, 2021. All other data is accurate as of Sep. 10, 2021. All data is subject to change at the institutions’ discretion. For the most up-to-date information on an institution or its accounts, visit its website.

    The savings offers that appear on this site are from companies from which GOBankingRates receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). GOBankingRates does not include all savings companies or all savings offers available in the marketplace.

    This content is not provided by Citibank. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by Citibank.

    Methodology: GOBankingRates.com identified the best online savings accounts based on interest rates, monthly fees, customer service options, mobile banking and online banking offerings. All fees and rates are subject to change at the savings account issuers’ discretion. Some offers might no longer be available on the saving account issuers’ websites, depending on how you access the web page.

    Editorial Note: This content is not provided by American Express. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone and have not been endorsed by American Express.

    About the Author

    Jared Nigro is a writer based in Los Angeles. His experience includes covering a range of personal finance topics for GOBankingRates, specializing in offering actionable advice for banking customers. In addition to writing about personal finance, he has written for environmental and socioeconomic organizations like The Daniel & Susan Gottlieb Foundation and InsideOUT Writers.

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