There isn’t a single one-size-fits-all best high-yield savings account (HYSA). Many people look for the highest possible APY (annual percentage yield, how much interest you earn), with the fewest restrictions. But along with APYs, account perks and trade-offs can vary. The right pick depends on what’s most important to you: flexible access to your funds, boosting a small balance, savings tools, brick-and-mortar branches, all-in-one banking, or something else.
A high-yield savings account should pay much higher APY than a typical savings account. Credit Karma Savings offers a high-yield rate with no fees or minimum balance to open.
- Best for a high APY with no conditions: Bread Savings high-yield savings
- Best for small balances: Varo high-yield savings
- Best for all-in-one banking: Axos ONE
- Best savings account for couples: Ally Bank high-yield savings
- Best for members: SoFi Checking and Savings
- Best for in-person branch access: Capital One 360 Performance savings
- Best for no qualifying activity: American Express high-yield savings
- How does a high-yield savings account work?
- How do I choose a high-yield savings account?
- Our methodology: How we pick the best high-yield savings accounts
- FAQs about high-yield savings accounts
Best for a high APY with no conditions: Bread Savings high-yield savings
Why a Bread Savings high-yield savings account stands out: Bread Savings high-yield accounts come with a competitive APY. And you don’t have to meet special conditions or maintain a high balance to earn it.
Pros
- Modest minimum to open
- No monthly fees
- FDIC insured and offered by Comenity Capital Bank
Cons
- Multiple fees for outgoing wire transfers, official checks and paper statements
- No ATM access
- No physical branches
Best for small balances: Varo high-yield savings
Why a Varo high-yield savings account stands out: Varo pays an above-average APY, but only on a limited balance and only if you receive at least $1,000 in qualifying direct deposits that month and end the month with a positive balance. Qualifying also runs a month behind, so you won’t earn the top rate your first month. It’s a fit if you’re a newer saver building a first cushion, not parking a large balance.
Pros
- Very high APY on small balances
- No monthly fees or minimum balances
- Automatic round-up savings tools
Cons
- Requires monthly direct deposits
- Highest APY doesn’t apply once your balance grows past a cap
- Approval isn’t always instant
Best for all-in-one banking: Axos ONE
Why Axos ONE stands out: Axos ONE is a checking-and-savings bundle you open together, not a standalone high-yield savings account. The highest savings APY requires qualifying monthly deposits and an average daily checking balance. Without those, you earn a lower, standard rate. It also has an account maximum to receive the highest rate.
Pros
- No monthly maintenance fees, no minimum balance
- Direct deposit up to two days early
- Nationwide ATM network; debit card optional
Cons
- Highest savings APY requires qualifying checking deposits and average daily balance
- Not a standalone savings product — you take the checking bundle
- Only three branch locations nationwide
Best savings account for couples: Ally Bank high-yield savings
Why Ally Bank high-yield savings stands out: Ally Bank offers joint savings accounts, and its high-yield account makes it easy to save, thanks to its built-in tools. You can use buckets to organize your money by goal and the Surprise Savings tool to automatically transfer any “extra” money from your checking account.
Pros
- No monthly fees or minimums
- 24/7 customer service
- Can add a checking account with ATM access
Cons
- Cash deposits go to a checking account first, not directly to savings
- No physical branches
Best for members: SoFi Checking and Savings
Why SoFi Checking and Savings stands out: If you open SoFi Checking and Savings, you get a bundled checking and savings account with vaults to organize goals and no monthly account fees or minimums. If you pay for an optional monthly SoFi Plus membership, you’ll receive a higher APY on a limited balance as well as unlimited financial planning sessions.
Pros
- No account fees or minimum balances
- Savings “vaults” to help track your progress
- Potential cash bonus
Cons
- Must open a checking account too
- No physical branches
Best for in-person branch access: Capital One 360 Performance savings
Why Capital One 360 Performance Savings stands out: If you like being able to manage your savings in person, the Capital One 360 Performance savings account should be on your radar. You’ll get a competitive APY and access to Capital One branches and Cafés.
Pros
- Can open and manage account online, via app or in-person
- No fees or minimum balances
- Integrates with Capital One checking account
Cons
- Branches aren’t available everywhere
- Organizes goals with separate accounts, not in-account buckets
Best for no qualifying activity: American Express high-yield savings
Why American Express high-yield savings stands out: The American Express high-yield savings account is a good option if you want to save your money with a familiar brand. You won’t have to worry about qualifying activity or fees.
Pros
- Competitive APY
- No monthly fees or minimums
- 24/7 customer service
Cons
- No ATM access
- No physical branches
How does a high-yield savings account work?
A high-yield savings account (HYSA) is a federally insured deposit account that pays interest meaningfully above the national average savings rate. These accounts are typically offered by online banks and digital arms of larger institutions so they can keep overhead low and pass the savings on to customers.
Rates on HYSAs are variable, meaning they can go up and down over time. While each bank or institution sets its own APY, it usually moves in response to changes in the Federal Reserve’s federal funds rate. When the Fed raises rates, banks may increase HYSA yields. When the Fed lowers rate, HYSA rates may drop.
How do I choose a high-yield savings account?
When you open a HYSA, think about how you’ll use it. You may want to automate deposits from your paycheck every month to build an emergency fund. Or you may want to save for a future goal, like a down payment on a house or car.
Not all savings accounts offer joint accounts, so if you want to save with another person, you’ll want to keep that in mind as well as you research options.
Once you figure out the main features you need a HYSA to have, compare:
- APYs
- Monthly maintenance fees
- Account minimums
- Deposit insurance
- Cash withdrawals methods
Our methodology: How we pick the best high-yield savings accounts
Credit Karma’s editors evaluate the best high-yield savings accounts by reviewing key features of dozens of popular accounts. These features fall into a few important categories:
- Savings rate: The annual percentage yield, or APY, is often the most important factor for savers looking for a high-yield account. We evaluate the yield rate, as well as if there are any conditions attached to it like membership fees, direct deposit requirements or tiered APYs.
- Fees: We look for accounts that have low minimums to open as well as no or low account minimums. Maintenance fees and other fees that eat into your account balance weigh against a high-yield account.
- Deposit insurance: Ensuring your balances are protected by either FDIC insurance or National Credit Union Administration (NCUA) deposit insurance.
Calculate your savings
Use our savings calculator to find out how much you may be able to grow your savings and how long it could take.
FAQs about high-yield savings accounts
Your unique situation and financial goals will dictate how much you should save in a high-yield savings account. But the general rule of thumb is to build up the equivalent of at least three to six months of expenses for emergencies.
Yes, you may open multiple high-yield savings accounts. This strategy might make sense if you’re saving for different goals, like emergencies, home repairs and vacations. But keeping your savings in one account may make more sense if you value simplicity.
Typically, interest you earn from a high-yield savings account counts as taxable income by the IRS. Your bank will send you a Form 1099-INT if you earned $10 or more in interest. But you’ll need to report the interest on your federal tax return either way, even if you don’t get a form.
High-yield savings accounts and money market accounts can both pay competitive APYs, though money market rates tend to be a little higher. A high-yield savings account is focused on saving while a money-market account might come with debit card access or check writing privileges.