Nearly 90 percent of Americans put money aside on a regular basis according to a NerdWallet survey last year. The majority, over half of respondents, said that they were squirreling away funds for a rainy day, with saving for retirement and vacations the next most-cited reasons.
While there are 401(k) plans that can generate average annual returns at or above some of the best high-yield savings accounts rates available, less than 40 percent of respondents said they have a retirement-specific account. And for those that are just leaving their money in a savings or checking account, it would be wise to consider moving those funds where they can earn more money.
The FDIC national average deposit rate for savings accounts ticked up slightly in January to 0.47, but that pales in comparison to the interest rate depositors can get with a high-yield savings account which can earn over 4 or 5 percent, and even in excess of 6 percent. When setting aside money for a rainy day or a big expense it will be sitting around for a while. So, getting it to earn more at the same time makes sense, especially taking into consideration the interest will compound.
What are the best high-yield savings accounts in the USA in 2024?
There are a number of options out there for Americans looking to get a better return on their savings at brick-and-mortar and online financial institutions. Which one is right for you depends on your needs and situation. Below is a sampling of high-yield savings accounts.
SoFi Checking and Savings | 4.60% APY
SoFi Bank Checking and Savings offers an APY at 4.60% but customers will only get that if they set up direct deposit. Otherwise, members only receive 1.20% APY. However, SoFi offers a welcome bonus of up to $300 with direct deposit.
In a win-win for customers, there is no minimum balance or deposit and no monthly fees. SoFi also bundles a checking account with the savings account, and you will have access to fee-free ATM withdrawals through the Allpoint Network.
However, SoFi has no physical locations and you will have to do your banking with the institution primarily online.
Bask Bank Interest Saving Account | 5.10% APY
The Bask Bank Interest Saving Account offers 5.10% APY with no minimum deposit or balance and no monthly fee. There is no checking account option available but it does give customers access to CD accounts with even higher APYs and a mileage account that can be linked. Bask Bank is online-only but has been around the longest being launched in 1999.
UFB Secure Savings | 5.25% APY
The UFB Secure Savings offers customers 5.25% APY, one of the highest in the industry, with no minimum deposit or balance and no monthly fee. Again this is an online-only option and you cannot link a checking account. However, customers do get a free ATM card. Customers get unlimited transactions, but limits on transfer amounts may apply.
Just as with which kind of account you should put your money away in so that you can save for the future, deciding how much you save depends on each individual’s situation. However, there are some general guidelines to consider. For more information you may want to check out “How much money should you save each month according to your lifestyle and how to get it?”
