The Best High Yield Online Savings Accounts (of 2021)


Looking for a place to stash your cash savings? I spend a lot of time talking about the need to have your money in a high-interest or high yield online savings account. I thought it was about time I put together a list of the top high yield online savings accounts.

This is by no means a complete list of the accounts out there. It’s just the ones I’ve had some experience with.

The rates are constantly changing, so don’t focus on that too much.

One thing to note though is that any of these accounts would be great compared to the savings accounts held at traditional brick and mortar type institutions. Don’t forget that all of these high-yield online savings accounts are FDIC insured.

There are many online high yield savings accounts now available across the web. All contain different features, both positive and negative. But most, if not all, are FDIC insured, contain no fees, and pay an interest rate significantly better than traditional savings accounts.

You should definitely find one that’s right for you and get started saving. And don’t just consider this list. These are just some of my favorites.

Okay, here are the best savings accounts:

Featured Savings Account: UFB High Yield Savings

UFB Direct, a division of Axos Bank, offers a superior high yield savings account. It has no minimum deposit requirements and charges no maintenance or service fees. Account balances of $25,000 or more see high earnings at 1.90% APY. 

UFB Direct is big on security too. They are active with fraud and anti-virus protection and utilize SSL encryption to protect your account. Automatic logouts also protect against unauthorized use. Not only is your account information safe with UFB Direct, but your money is safe too. Money in your UFB Direct account is FDIC insured up to $250,000. 

Other features that make UFB Direct a great choice for your next savings account include a complimentary ATM card, online and mobile banking options, and free transfers between direct deposit accounts. 

If you’re looking for an online savings account with high earning potential, UFB Direct may be the perfect choice.

More Savings Accounts

high yield online savings accounts - Capital One 360360 Savings by Capital One

360 Savings by Capital One is, in my opinion, the reigning leader in online savings because of their great website, excellent customer service, and a multitude of other financial products.

They offer a great savings account, a bonus to get started, and a 360 checking account. Like others, there is no minimum to open an account.

They also have mortgages, life insurance, and also, low-cost investing through their Capital One Investing product. They are FDIC insured and have no crazy fees.

I’ve been banking with 360 Savings by Capital One for several years now and I’ve been completely happy with the savings account. So much so that I made them my primary bank, opening up a checking account there, and also doing some investing using Capital One Investing.

Read our review of Capital One 360.

Ally Bank LogoAlly Bank

Ally Bank offers some pretty nice services aimed at treating their customers responsibly.

They have both a savings and an interest checking account. They also offer some of the best CDs available today. Not just because of rates, but because of their flexibility. They have a no penalty CD and a one-time rate adjustment CD. They are FDIC insured and charge no ridiculous fees.

Read our review of Ally Bank.


The BBVA Money Market Account yields a very high-interest rate, and you can open an account with as little as $25. There is a monthly service fee of $15 which is waived if you have $10,000 or more in your account or have an automatic recurring transfer of at least $25 from a BBVA checking account.

Click here to get started with BBVA.

CIT Bank

CIT Bank offers a great no-fee online savings account called Savings Builder. This online savings account is good for two types of people: high balance savers and monthly savers. In order to receive the highest interest rate you either need to keep a $25,000 balance or make a $100 minimum opening deposit and continue $100 minimum single deposits every month.

CIT Bank also has a nice money market account as well as CDs, IRAs, and custodial accounts that customers will like.

high yield online savings accounts - Discover BankDiscover Bank

Discover regularly offers some of the highest rates out there on their savings account. They have no minimum balance requirement and no excessive fees and they are FDIC Insured. What more can you ask for?

In addition to the savings account, they have a really attractive set of CDs, and their one-of-a-kind IRA CDs.

Read our review of Discover Bank.

high yield online savings accounts - FNBO DirectFNBO Direct

FNBO Direct is a product of the very old and stable First National Bank of Omaha. They offer a nice, FDIC-insured savings account with a leading interest rate. There is also no minimum to open a savings account, which means you can open one with as little as a dollar.

Their website is very user-friendly, but maybe not as easy to maneuver as others. They are FDIC Insured and void of any bad fees.

Read our review of FNBO Direct.

Click here to get started with FNBO Direct. 

PurePoint Financial LogoPurePoint Financial

PurePoint Financial offers a simple, no fees, no frills, high-interest, online savings account. This bank has paired down their deposit accounts to only a savings account and CDs. Yup, no checking accounts here.

The minimum deposit is $10,000 which is fairly high for this list but they do offer a high-interest rate. PurePoint also has some physical locations which is always nice. They are currently in Florida, Illinois, New York, and Texas.

Their savings rates are really impressive and the hybrid local factor makes them a great option.

Read our review of PurePoint Financial.

Synchrony Bank

Synchrony Bank offers a very healthy interest rate on its no-fees/no-minimum savings account.

Not only can you open an account with no minimum deposit, but there are also no fees to access your money via ATM. If you get hit with a separate ATM surcharge fee, Synchrony will even refund such a fee to you, up to a maximum of $5 per month.

In addition, if you end up overdrawing your account, rather than allowing the overdraft to go through and charging you a hefty overdraft fee, Synchrony will refuse to honor the withdrawal–so you really don’t have to worry about fees.

Click here to get started with Synchrony Bank.



TIAA Bank offers a great money market account. They have a high introductory interest rate, as well as a Yield Pledge which promises your yield will stay in the Top 5% of Competitive Accounts.

Their initial deposit minimum is $500 and there are no monthly fees and it’s FDIC insured. One of the best features of this account is the Online Check Deposit feature available through their mobile banking app.

Read our full review of TIAA high yield money market accounts

Related: Best Automatic Savings Apps

Why We Need High-Yield Online Savings Accounts

I love the online savings account. It has so many uses. Mainly it will simply help you start saving more of your money. When I first started getting passionate about my finances and making changes with managing my money, one of the first things I did was open up an online savings account.

Here’s why I did and some of the benefits of having one. Hopefully, this list will convince you to open one.

Put Your Savings Behind a Wall

Since these high-yield online savings accounts are usually online-only, getting to your funds isn’t as easy as say a regular savings account. With regular savings accounts, you can walk into the bank, or move the money in a second to a checking account using an online feature.

Online banks typically don’t have physical locations. To get your savings in and out of these accounts, you’ll usually need to transfer your money to another bank and then make a withdrawal and or use the ATM.

I know this sounds like a negative, but it isn’t. Your savings is money you should only need for emergencies or for a short-term savings goal. It wouldn’t kill you to have a 1-2 day barrier to getting your money.

Learn more about why online bank transfers take so long here

I’ve found that this barrier often dissuades me from spending money that I shouldn’t, or keeps me from raiding the emergency fund for something frivolous. So you see, this faux-wall to your savings actually helps you to save more in the long run.

No Fees or Minimums to Worry About

Let’s face it. The big guys on the banking block have run the show for far too long. A big bank checking and savings account can cost you hundreds in fees every year.

There’s no reason you should put up with ridiculous fees and minimums from banks, just so you can lend them your money. They should be paying you. But they can’t because they are fat and bloated and need your money and fees to cover their fat cat expenses.

Don’t play that game any longer. Move to an online bank where you can enjoy a fee-free environment.

High Interest / High Yield

If you do like I did for so long and keep your savings in a regular savings account, you will earn a very small amount of interest on your savings. Typically this is something like 0.10%. That stinks.

With a high-interest online savings account, you can earn much more. Look at the rate chart above to see the current annual percentage yield on these accounts.

These rates also fluctuate with the LIBOR rate. So as interest rates rise, you’ll see these rates shoot back up. I remember when the rates were something like 5.00%. Wow!

Can You Still Call Them High-Yield Savings Accounts?

I had a reader leave a comment asking whether or not these savings accounts could still be classified as “high-yield” since the rates were so low. It’s a fair question and one that I thought I would tackle here.

Interest rates are currently hovering around 2%, give or take a bit. I remember when these high-yield savings accounts were at their highest (2007-2008). They were touting rates in the 4% to 5% range. It certainly appears that rates are no longer high.

But you can’t stop your comparison there. What makes these accounts so special is that they don’t have the internal expenses that most brick and mortar banks have. As a result, they are consistently able to offer a better rate on savings accounts than banks like Chase and Bank of America, neither of which come close to even 1%.

All that to say, across the industry, banking rates are low. So the question then becomes, where do you turn to get a better rate without sacrificing the security of FDIC insured banking product? You can’t turn to the stock market or peer lending. Both are too risky. Some have turned to reward checking, which is probably a good move for those who can work within the requirements of such an account.

My money is staying put in my high-yield savings account. I’m there first and foremost for the FDIC insurance I get. I also like that these accounts provide clear separation from my checking account, and they provide the liquidity to actually use the money if it’s needed. If my account gets too full, then I’ll take the excess and put it in equities.

Rates will return. Once the major banking rates mentioned above return to normal levels, the high-yield rates will be back. I’m fine sticking around till they do.

The Best High Yield Online Savings Accounts

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About Philip Taylor, CPA

Philip Taylor, aka "PT", is a CPA, blogger, podcaster, husband, and father of three. PT is also the founder and CEO of the personal finance industry conference and trade show, FinCon.

He created Part-Time Money® back in 2007 to share his advice on money, hold himself accountable (while paying off over $75k in debt), and to meet others passionate about moving toward financial independence.


    Speak Your Mind


  1. Philip Taylor says

    JRobMac You can thank for federal officials for it. On the bright side, your mortgage rate is less than 4%.

  2. I’m just still blown away….how on earth is 0.9 considered high yield? 
    I was reading Dave Ramsey and all excited about saving a bunch of money  and then come to find Highest interest rates less than even 1%.

  3. Wow, is this some kind of a joke?!? What happened to interest rates of 12%?  Does that not exist anymore?
    Investing with an interest rate of 0.9% is not much better than sticking money in a piggy bank.
    Very discouraging.

  4. Thanks man. Trying to find a good savings account is hard these days.

  5. Thanks – one other thing that I would be interested to know but most people don’t talk about is what their ACH transfer limits are.  I’m not just referring to the number of withdrawals (I’m aware that it’s six per month), but the actual amount they allow you to transfer per month/transaction.  I read that some banks have a fairly low transfer limit, which could be a problem if I ever need to transfer a substantial amount of money back to my linked checking account within a short period of time.  For example I’ve been saving money for a house in one of these accounts, and I would hate it if I come across a house I like and they don’t let me transfer the required amount for the down payment.

  6. Good info! 
    Only one suggestion – could you also identify which banks also have IRAs?
    Matt Poskonka  

  7. Have any opinion on the features/functionality of the banks that have the higher rates?  meaning, things like transfer times, fund hold times, quality of web or mobile interface, or customer service?  I am having a hard time choosing between Amex, Barclays, CIT, and Ally because all their rates are relatively similar but I get conflicting reviews online with regard to the other aspects.  Speed of bank transfers (in and out) and quality of web site (meaning able to complete most activities yourself) are my top requirements.

  8. frank
    With the inflation at 3.5% is there any local or foreign Online bank that gives an yield higher than the inflation rate?
    Frank, IL, USA

  9. With the inflation at 3.5% is there any local or foreign Online bank that gives an yield higher than the inflation rate?
    Frank, IL, USA

  10.  @Martin Harrs I was fortunate to open an account a week before they suspended new account openings for the high yield savings.

  11. First Internet Bank ( also offers check deposits by scanner (not only EverBank).

  12. Martin Harrs says

    TIAA Direct has an FDIC online insured savings account for 1.25%! TIAA-CREF is the largest non-profit money manager for the academic community in the US known for great service.

  13. I have ING Direct and SallieMae accounts (don’t forget about SallieMae!).  SallieMae has offered rates equal to or better than ING Direct for a while, but now they’re basically the same.  However, I closed my ING Direct account once Capital One took over — Capital One is a relentless marketer that fills up my mailbox with unending offers, and I don’t want to deal with that or them.  I would keep an eye on ING Direct with Capital One in charge!!

  14. Given what must be huge profit margin for banks between these savings rates and their lending rates, can anyone tell me why there is not more competition between these savings rates ? Ie why not more competitive upward pressure in these rates ?

  15. Given what must be huge profit margin for banks between these savings rates and their lending rates, can anyone tell me why there is not more competition between these savings rates ? Ie why not more competitive upward pressure in these rates ?

  16. SmartyPig is going down to .70 by December 9 🙁

  17. Can you really still call them high-yield when they are so low?

    • Philip Taylor says

      Excellent point, Jared. Compared to 2004 levels, these rates aren’t high. But when you compare them to BOA and Chase checking, they are at least 3 times higher, which is still significant in my book. If you also consider that these banks are virtually fee free compared to those brick and mortar types, the differences really show up. Still, you make a good point about interest rates. It’s hard to get anything for your money these days. I know many people have turned to reward checking, and riskier products like peer lending, and even the stock market to find better returns for their savings.

  18. I have checking accounts at 2 small banks that each pay just over 3%. Both the EZ Rewards Checking at Crow River Bank in Delano, MN and the Power Checking at BankWest in Rockford, MN are completely free checking accounts. There is no minimum balance and the 3+% rate is paid on any balance less than $25,000. The only requirements are: to access online banking and receive electronic statements, have one automatic (electronic) deposit or one ACH automatic debit (ie, automatic payment of a utility bill) and make 10 purchases with the free debit card you receive. There is no minimum purchase, so you can charge little things like lunch at McDonald’s or any small purchase. The requirements must be met each statement cycle to receive the higher interest rate. If you don’t meet the requirements, you receive a lower rate for that cycle. ATM fees are reimbursed as long as you meet the above requirements for each statement cycle. There is unlimited check writing too. It’s a great deal.

  19. Emigrant Direct is currently at 1.1% It was 1.4% 6 months ago and has decreased since then.

  20. Rate Watcher says

    Looks like the best online savings account out there today is SFGI Direct at 2.25%. Beats my Onbank account which dropped below 1%

  21. I agree, thom. We use ING DIRECT pretty exclusively now. I have a BOA account just for making check deposits.

  22. thom young says

    ING is the best, although their rates have gone down, they provide good services

  23. GMAC bank has 2.23%. Etrade is now down to .95% as of today, 5/8/09. When I joined Etrade less than a year ago, it was at 5%.

  24. I’ve added Schwab, EmigrantDirect, and Dollar Savings Direct.

  25. 2.05%, $1500 minimum. VERY easy to use. I beleive it is a part of Emigrant Bank, which as far as I know is different than Emigrant Direct.

  26. I have used Emigrant Direct for years and their current rate is 1.65%. Their site is very easy to use and you can have multiple accounts with one log-in to help separate your different savings categories.

  27. @RBJ – Good points. I will consider MMAs if I ever add another section to this list.

    @Sarah – I use Schwab for my 401K. Thanks for the tip.

  28. Charles Schwab has a 2% savings account right now- my friend told me about it and I recently filled out the pw to open one myself.

    • @Sarah – You got me really excited!  However, I just called Schwab and that would be 0.2% (not 2.0%) – how big a difference it makes where the decimal is… 🙂 I recently opened a FDIC Money Market savings account at Sallie Mae’s banking division.  The rate started at 1.05%, but has since dropped to 0.95% (still not bad).  There are no minimum balance requirements.  And you can open as many savings accounts as you like, so we use them for all of our different savings goals.  @ptmoney thanks for the CITBank tip – I like anything over 1% these days!!

  29. Should this list also include High-yield Money Market accounts? Over recent months, the Capital One MM account (with no minimums) has had a higher rate than the Capital One Savings account. Once you get over $10k, it makes sense to move that to a Capital One Savings acct (minimum to achiever higher rate).


  30. MrsRefney – Yeah, I hate to see these rates now. Just another way us responsible folks are getting the short end in this economy.

    Oh, and high-interest savings is always on my mind. 😉

  31. When I first joined ING, it was around 4%. How I miss those days…

    I was actually going to email you today about high interest savings accts. When did you start reading minds??? 🙂