Advertiser Disclosure

Best of, Earning Interest

The Best High-Yield Online Savings Accounts in November 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

The Best Online Savings Accounts

Updated November 15, 2019

There are no excuses for sticking with a low-rate savings account these days. Online savings accounts provide consumers with interest rates that are way above those offered by conventional banks. The best online savings accounts can easily earn you an APY of 1.90% or greater, while the average rate offered by a traditional brick-and-mortar bank remains at a paltry 0.27%.

If you’re still skeptical about switching to an online bank, consider the facts. Your funds are just as safe stashed with an FDIC-insured online bank as they would be with the bank branch on Main Street, and you’re likely to get better technical support with an online-only bank website and app. Many offer round-the-clock customer support and online chat features that make it easy to resolve issues without needing to visit a branch in person. Along with higher rates, you may end up saving on the cost of the account. With lower overhead costs, online banks typically charge lower fees.

Every month we review and compile the best savings account offers from online banks. Our ranking factors in features such as a higher-than-average interest rate, no minimum balance requirement, and superior ATM access.

1. High Rate: Goldman Sachs Bank USA – 1.90% APY, no minimum balance (but no ATM access)

High-yield Online Savings Account from Goldman Sachs Bank USA

Our advertiser Marcus by Goldman Sachs, the consumer bank of Wall Street giant Goldman Sachs, offers a 1.90% APY on deposits. There isn’t a minimum balance requirement to earn the APY and there are no transaction fees. Upon opening the account, you can deposit funds via electronic transfer, wire transfer, or deposit by check. You can get access to your funds via electronic transfer or wire transfer. Goldman has been investing heavily in Marcus, its online consumer bank. Marcus is already offering some of the best savings accounts and personal loans in the market, and further expansion is expected. The savings account has consistently been paying one of the highest rates in the market. With a 1.90% APY, you can get one of the highest rates in the market from a well-known brand. The maximum deposit is $1,000,000 and deposits are FDIC insured up to the $250,000 limit.

LEARN MORE Secured

on Goldman Sachs Bank USA’s secure website

Member FDIC

2. High Rate: Barclays Bank – 1.90% APY, no minimum balance

Online Savings Account from BarclaysBarclays is a large, old British bank, based in London and with more than 325 years of history. Although Barclays is huge in the United Kingdom, it is a challenger brand in the US. Barclays offers savings products with highly competitive rates. These deposits are used to fund their rapidly growing American credit card business. The online savings account has a 1.90% APY with no minimum balance to open and no monthly fees. Your deposits are FDIC insured up to the legal limit. The Barclays website has a good look and feel. And you can have the confidence of keeping your money with one of the world’s largest and oldest universal banks.

LEARN MORE Secured

on Barclays’s secure website

Member FDIC

3. High Rate: Synchrony Bank – 1.90% APY, no minimum balance, (and ATM access)

High Yield Savings from Synchrony BankSynchrony Bank pays a healthy 1.90% APY. There is no minimum balance requirement and no monthly fee. In addition to the great rate, you can get an ATM card. Most internet-only banks require you to transfer funds electronically, which can take a few days. If you ever need quick access to your funds, the ATM card makes access easy. You might not recognize the Synchrony brand in the banking space, but it is a large, well-capitalized business. Synchrony used to be a part of General Electric (GE), and was spun out as a separate company. Unfortunately, the digital experience is not the best, but they now have a mobile banking app.

LEARN MORE Secured

on Synchrony Bank’s secure website

Member FDIC

4. High Rate: Capital One – 1.80% APY, no minimum balance

360 Performance Savings from Capital OneA consistent rate leader for its deposit accounts, Capital One now offers its 360 Performance Savings. With a 1.80% APY on all balances and no monthly fee, you get a chance to boost your savings uninterrupted. There are no minimum balances required to open or maintain the account, either.

Capital One is able to offer higher rates and lower (to no!) fees on this online savings account compared to traditional in-branch offerings. Still, you can head to a Capital One branch or Capital One Café to open a new 360 Performance Savings account, if you prefer. You cannot use an ATM to withdraw or deposit funds, but you can visit a branch, call the bank or make your own online transfer. You can access all accounts on your mobile device through the Capital One app, as well.

LEARN MORE Secured

on Capital One’s secure website

Member FDIC

5. High Rate: American Express National Bank – 1.75% APY, no minimum balance (and no fees)

High Yield Savings Account from American Express National BankOur sponsored advertiser, American Express National Bank, offers a Personal Savings account, which earns a 1.75% variable Annual Percentage Yield (APY) as of 11/7/2019. The account charges no monthly fees and requires no minimum deposit, making it an affordable account to open. You must fund your account within 60 days of applying for the account, and the FDIC insures your deposits up to $250,000. Overall, the account is a great option for anyone who wants the flexibility of earning a high interest rate on a sum of money you’ve stashed away, minus the withdrawal restrictions of a certificate deposit.

LEARN MORE Secured

on American Express National Bank’s secure website

Partner Offer

Member FDIC

6. Favorite Online Package: Ally Bank – 1.70% APY, no minimum balance and you can get a free checking account

Online Savings Account from Ally BankAlly is a bank without branches that had been consistently paying high interest rates on savings accounts. While Ally is still offering rates way above what brick-and-mortar banks are offering, it seems this online bank no longer wants to be seen as the online bank with the most competitive rates. The current APY on Ally’s savings account is 1.70%. Although Ally has dropped its rate significantly, we still favor this online bank. It doesn’t require a minimum balance to earn the APY and, even better, you can open a free checking account (also with no minimum balance requirement and eligible for the 1% cash back offer). This makes access to your savings account incredibly easy – because you can transfer funds online (or via the app) and have immediate access via checks, debit cards and ATMs. With an Ally account, you will have access to their full suite of expanding (and market-leading) products such as CDs, money market account, checking account, and IRA accounts.

LEARN MORE Secured

on Ally Bank’s secure website

Member FDIC

7. High Rate: Vio Bank – 2.07% APY, $100 to open

High Yield Online Savings Account from Vio BankVio Bank is the online division of MidFirst Bank, a national private financial institution with over $16 billion in assets. Vio Bank was recently created and is not yet as established as Marcus, Barclays, American Express, Synchrony, and Ally Bank. However, this online bank launched its High Yield Online Savings account with a strong APY (at the time of its launch) and has been consistently competitive since it launched. It’s currently offering an outstanding 2.07% APY on all balances. You only need $100 to open the account. You can fund the account via ACH.

There are a few limitations to keep in mind: incoming ACHs take anywhere between two to five business days to post and the online bank may place a hold your ACH for two or three business days. When you’re ready to transfer funds out of the account, you’ll be limited to $5,000 per outgoing ACH. You’ll also be limited to transferring an aggregate monthly total of $20,000 via outgoing ACHs. As is with every other savings account, you’ll also be limited to making six withdrawals per monthly statement cycle. The good news (aside from the high APY) is that Vio Bank doesn’t charge a monthly maintenance fee. Vio Bank also has a mobile banking app where you can conveniently manage your accounts on-the-go. Also, its website is mobile friendly so it should be fairly easy to do your online banking from a smart phone, as well. We think this online bank is very promising and hope it continues to offer one of the best savings account rates in the nation.

LEARN MORE Secured

on Vio Bank’s secure website

Member FDIC

8. High Rate: HSBC Direct – 2.05% APY, $1 minimum to open, no minimum balance to earn APY

HSBC Direct Savings from HSBC DirectHSBC Direct is the online division of financial giant, HSBC Bank. Based on the amount of assets HSBC Bank has acquired to date, it is the 14th largest bank in the U.S. While HSBC Direct may sound like a new player to the online banking game, this division was actually around prior to the 2008 financial crisis and offered extremely competitive rates. After the financial crisis, the bank renamed the online division to HSBC Advance and slowly started to decrease its online savings account rates, much like other online banks were doing around that time.

Fortunately, HSBC has decided to reenter the online banking space. Since the initial launch in July of 2018, the bank has consistently increased its HSBC Direct Savings Account rate from 1.70% APY to 2.05% APY. You only need $1 to open the account and the APY will be applied to any balance below $2 million. You may fund the account via ACH transfer and the account can be opened online. You will have to deposit new money to the account, which means that you cannot be a member of the HSBC Group in the United States. The account doesn’t have a monthly maintenance fee and all deposits are FDIC insured.

LEARN MORE Secured

on HSBC Direct’s secure website

Member FDIC

9. High Rate: Betterment – up to 1.85% APY, $10 minimum to open

Betterment Everyday Cash Reserve - Promo Rate from BettermentBetterment is an investment company and one of the best robo-advisors. Since its creation, the mission of this company has always been to empower its customers to make the most of their money. With this mission in mind, the online brokerage decided to offer a high-yield savings account with an outstanding rate. While this account is not like your typical online savings account, it does come up with an outstanding rate – especially if you take advantage of the promotional rate. How is it different from other savings accounts? For one, Betterment is not a bank and is not FDIC insured. Fortunately, the company has partnered with a number of banks to offer FDIC insurance to accountholders. Essentially, your funds are deposited with the partner banks and will be insured up to $250,000 at each partner bank. One big benefit that Betterment is currently offering is the ability to opt out of depositing your money at a specific bank.

If you’re comfortable with the way this account is structured, you’ll be rewarded with an APY that is up to 1.85%. There is a catch, however, to earn the highest rate. In order to earn the 1.85% APY, you’ll need to join Betterment’s waiting list for the checking product. That’s it! Once you join the list, you’ll be awarded the 1.85% APY through the end of 2019 as long as you stay on the waiting list. If you choose to not join the waiting list, you’ll still earn a great APY of 1.60%. You only need $10 to open the account and there isn’t a minimum balance amount to earn the APY. One thing to note about the promotional and regular APYs – they are still variable rates. Betterment has the right to lower or raise the rates at any time. What Betterment is guaranteeing with the promotional rate is that it will always be 25 basis points above the regular APY. This guarantee will last for the remainder of 2019.

This account doesn’t come with any maintenance fees and you can transfer money from the Betterment Everyday Cash Reserve account as many times as you want. If you choose to withdraw money from this account, it’ll be transferred to your linked checking account within 1 to 2 business days. While these types of emerging cash management accounts may not be for everyone, we do feel like they deserve a place on this list due to their outstanding rates.

LEARN MORE Secured

on Betterment’s secure website

FDIC Insured

10. High Rate: CIT – 1.85% APY, $100 to open

Savings Builder from CIT BankCIT is a very large bank that you probably never heard of. It has more than $50 billion of assets and makes loans (and leases) to middle market companies and small businesses. To fund those loans, CIT operates an internet-only bank that pays some of the highest interest rates in the country. While CIT isn’t as big as other online banks, they’re currently offering a very healthy APY of 1.85% on their Savings Builder account. You only need $100 to open the account, but you’ll need to meet one of two requirements to earn the high rate. We really like the options that CIT Bank has put in place to earn this high APY. The two ways to continue earning this high rate are:

  1. Make a monthly deposit of $100 or more into this account
  2. Maintain a daily balance of $25,000 or more

Even better: there aren’t any monthly maintenance fees and interest compounds daily. Deposits are FDIC insured.

LEARN MORE Secured

on CIT Bank’s secure website

Member FDIC

11. High Rate: CIBC Bank USA – 1.85% APY, $1,000 to open

CIBC Agility Savings - Online Only from CIBC USACIBC Bank USA is the U.S. division of a Canadian based bank. This division was established in 1991 and has since acquired over $27 billion in assets. Currently, CIBC Bank USA is offering an online-only savings account with a competitive APY of 1.85%. You’ll only need $1,000 to open the account. While there isn’t a monthly maintenance fee, you may be charged $10 if you make more than six transactions per statement cycle. CBIC Bank USA does have a mobile banking app, but make sure that you download the app for the U.S., not Canada.

LEARN MORE Secured

on CIBC USA’s secure website

Member FDIC

12. High Rate: Citizens Access – 1.85% APY, $5,000 minimum balance amount

Online Savings Account from Citizens AccessCitizens Access is the online division of Citizens Bank. This division was recently created to provide the best savings rates to consumers. While the online division is brand new, the bank its backed by isn’t. Citizens Bank has been around for a while and has grown to have over $122 billion in assets. While you need to deposit and maintain a minimum balance of $5,000 to earn the 1.85% APY, you’ll be funding an account that comes with no fees. If your balance happens to fall below $5,000, the APY will drop to 0.25%. One downside to this online-only bank is that they don’t currently have a mobile banking app. This means that you’ll have to do all of your banking through their website. Luckily, their website is mobile-friendly.

LEARN MORE Secured

on Citizens Access’s secure website

Member FDIC

13. Unique Bank + Highest Overall Rate: Fitness Bank – 2.60% APY, $100 minimum to open

Fitness Savings (12,500+ Steps) from FitnessBankFitness Bank is unique and new online bank. It’s a division of Affinity Bank, which has been around since 2002 and has acquired over $318 million in assets. Affinity Bank decided to launch a concept like no other to reward actively fit individuals with the highest APY currently available. While most institutions choose to offer tiered rates based on balance amounts, Fitness Bank offers tiered rates based on the average number of steps you take on a daily basis. To earn the high 2.60% APY, you’ll need to take an average of 12,500 steps or more per day. If you only take an average of 10,000 to 12,499 steps per day, you’ll earn an APY of 2.34% (which is still a great APY). You’ll earn 1.75% APY if you take an average of 7,500 to 9,999 steps per day. Taking an average of 5,000 to 7,499 steps per day will qualify you for an APY of 1.25%. Finally, if you take anywhere between 0 to 4,999 steps on average per day, you’ll only earn 0.50%.

Fitness Bank will track your steps by requiring you to download its Step Tracker app. The bank will then calculate your average steps from the previous month to determine which tier you qualify for. Once the bank determines which rate your activity qualifies you for, you will continue earning that rate for an entire month until the bank recalculates your activity. The activity requirement will be waived for the first month so that you can get your app all set up and start logging in some steps. For this first month, you’ll automatically earn the 2.60% APY.

In terms of actual money, you will need at least $100 to open the account and you’ll need to maintain this balance to waive the $10 monthly maintenance fee. The bank does impose a limit on the amount of money you’re able to transfer in and out of the account via ACH. You cannot transfer more than $15,000 per day in or out of the account. You also cannot exceed more than six certain withdrawals or you’ll incur an excessive withdrawal fee of $10 for each additional withdrawal. In addition to the Step Tracker app, Fitness Bank has a mobile banking app to manage your account.

LEARN MORE Secured

on FitnessBank’s secure website

Member FDIC

14. High Rate: First Foundation Bank – 2.40% APY, $1,000 to open

Online Savings Account - New Money Only from First Foundation BankFirst Foundation Bank officially launched in 2008, but its leadership has been in the financial services industry since 1990. This bank was established by the same group that leads the Keller Group, a wealth management firm. The bank has grown to acquire over $6 billion in assets. In October, this bank launched an Online Savings Account with a high APY of 2.40%. You’ll need to have a balance of at least $1,000 in order to open that account and you’ll need to maintain that amount in order to earn the high APY. If your balance falls below $1,000, the APY will drop to 1.00%. This account doesn’t have a monthly service fee.

While Regulation D applies to this account, First Foundation Bank will provide an ATM card if you request one from the bank. The bank will reimburse ATM fees from other banks and ATM operators up to $20. There is a limit to the amount of money that you can withdraw. If you’re withdrawing from an ATM, the bank sets a daily limit of $500. The daily point-of-sale limit is $1,500. If you’re transferring money online or via ACH, the daily limit is $5,000 and the monthly limit is $10,000. If you need to transfer more than the preset limits, you’re able to call the bank and request that they increase the limit. The bank allows you to maintain the account online and through their mobile banking app.

LEARN MORE Secured

on First Foundation Bank’s secure website

Member FDIC

15. High Rate: BrioDirect – 2.20% APY, $25 minimum balance amount

High-Yield Savings from BrioDirectBrioDirect is powered by Sterling National Bank, which is a large bank in New York with over $29 billion in assets. This online brand recently launched with a high 2.20% APY. You only need $25 to open the account and you’ll need to maintain at least this amount on a daily basis to earn the APY. This account doesn’t have a monthly service fee and can be funded via ACH, wire transfer, or check. There are limitations to the amount of money you can transfer in and out via ACH. BrioDirect limits incoming ACH transfers to $500,000. The bank limits outgoing ACH transfers to $25,000 per transaction and a total of $125,000 per month. You are able to link as many external bank accounts as you’d like to this account. You can also initiate ACH deposits and withdrawals from other banks. You can manage this account online or from Sterling National Bank’s mobile app.

LEARN MORE Secured

on BrioDirect’s secure website

FDIC Insured

16. High Rate: SFGI Direct – 2.27% APY, $500 to open

SFGI Direct Savings Account from SFGI DirectSFGI Direct is Summit Community Bank’s online division. They currently have more than $2 billion of assets and is privately owned by Summit Financial Group, Inc. SFGI is FDIC insured through Summit Community Bank, so deposits are protected up to the legal limit. They are currently offering a good rate of 2.27% on balances of $1 or greater. You’ll have to deposit a minimum of $500 in order to open the account, but you can’t make an initial deposit greater than $25,000. After you make your initial deposit, you’re able to add as much money as you’d like to the account. While they do offer a good rate on an online savings account, their online experience is lacking. Their website feels dated and they don’t appear to have a mobile banking app.

LEARN MORE 

Member FDIC

17. High Rate: Prime Alliance Bank – 2.22% APY, $10,000 minimum balance amount

Personal Savings Account from Prime Alliance BankPrime Alliance Bank was established in 2004 to provide financial assistance to local businesses and residents. However, through its online banking platform, it’s now able to reach more customers while keeping that local bank service. Today, it’s grown to acquire over $455 million in assets. While the bank’s Personal Savings Account doesn’t require a minimum amount to open the account, you will need to have at least $10,000 in the account to earn the high APY of 2.22%. If your balance is below the amount, you’ll earn 1.96% APY. This account doesn’t have a monthly service fee. You’re able to request an ATM card and withdraw as much as you need from an ATM, but the account is limited to six certain withdrawals and transfers due to federal regulations. You’re able to maintain the account online or through the bank’s mobile app.

LEARN MORE Secured

on Prime Alliance Bank’s secure website

Member FDIC

18. High Rates on two savings accounts: Customers Bank – 2.05% or 2.20% APY, $5,000 or $25,000 to open depending on account

High-Yield Savings Account from Customers BankCustomers Bank was established in 1997 and has grown to be known as a “super-community bank” in Pennsylvania, Washington D.C., Illinois, New York, New Jersey, and New England. The bank has over $9 billion in assets, making it a mid-sized bank. Currently, Customers Bank is offering two outstanding rates on two different accounts. Its Digital Savings Account requires a minimum deposit and balance of $5,000 to earn a high rate of 2.05%. This account doesn’t have any monthly fees. You can open this account here.

If you have $25,000 to deposit, the High-Yield Savings Account is a better fit for you. If you can deposit and maintain a minimum of $25,000 into the account, this bank will reward you with a 2.20% APY. You’ll have to maintain this balance to continue earning the high rate. You must fund the account within 30 days of receiving application approval. This account doesn’t come with any monthly fees.

A few items to be aware of: these accounts don’t come with checks or a debit card. Customers Bank does have ACH transfer limitations of $5,000 per day and $50,000 per statement cycle. You can easily open these accounts online and manage the account via Customer Bank’s website or mobile banking app. Deposits are FDIC-insured.

LEARN MORE Secured

on Customers Bank’s secure website

Member FDIC

19. High Rate: Comenity Direct – 2.15% APY, $100 minimum to open

High-Yield Savings Account from Comenity DirectComenity Direct is the online division of Comenity Capital Bank. Comenity Capital Bank has been around since 1989 and has acquired over $9 billion in assets. Comenity Capital Bank launched this online division in the middle of April 2019 and came into the savings space with a high-yield savings account earning 2.15% APY. While you need $100 to open the account, you can earn the high rate with a balance as small as $1 and as big as $10 million. Comenity Direct’s High-Yield Savings Account doesn’t place limits on ACH transfers.This account doesn’t have any monthly fees and the bank doesn’t charge a fee if you attempt to withdraw from this account more than six times. If you do try to withdraw from the account a seventh time within the same statement cycle, Comenity Bank reserves the right to either deny or reject the withdrawal and may even close the account. While this is mainly a fee-free savings account, there are a few fees that may be charged if you request paper statements, a paper check withdrawal, and an outgoing wire transfer. Comenity Direct does have a mobile banking app for your convenience. This is one of the best high-yield savings accounts currently being offered, but keep in mind that this online division is brand new. When it comes to accounts with variable rates, we prefer to stick with more established banks with consistently competitive rates.

LEARN MORE Secured

on Comenity Direct’s secure website

Member FDIC

20. For Small Balance Savers Digital Federal Credit Union – 6.17% APY up to $1k

Primary Savings from Digital Federal Credit Union (DCU)Digital Federal Credit Union (DCU) currently offers a nice account for people who are just starting to save. You can earn an APY of 6.17% with their Primary Savings Account. You will only earn that rate on deposits up to $1,000. Once you have more than $1k, you should consider other accounts on this list. It is a credit union – and your deposits are insured by the NCUA up to the legal limit. Anyone can join the credit union by donating to one of their participating organizations such as Reach Out for Schools, which has a membership fee of $10. You’ll be able to join one their participating organizations when you go to open your account with DCU. DCU is also part of a nationwide CO-OP network that allows their members to have access to shared branches and surcharge-free ATMs throughout the U.S.

LEARN MORE Secured

on Digital Federal Credit Union (DCU)’s secure website

NCUA Insured

How to find the right savings account for you

  • Focus on rates, but don’t forget about fees. Snagging the highest interest rate isn’t always your best bet. You also want to ensure the whole account helps you earn consistent returns. For example, a high-rate online savings account might reset to a lower APY after an introductory period. Perhaps the best rate requires a balance that’s too high or too low for your needs. And watch out for monthly fees that could eat into your savings.
  • Compare, compare, compare. Use our savings account comparison tool to calculate how much you could earn with different accounts. You can filter by ZIP code and size, which can help large-balance savers find better options than no-minimum options.
  • Carefully consider CDs. CDs allow savers to earn more on their savings by agreeing to lock up their funds for a set period of time. With CDs, you make your initial deposit at a set APY and wait for the CD term to mature. With most CDs, you can’t touch the original deposit amount before maturity without paying a penalty. Since CDs are less liquid than a standard savings account, they’re good for setting aside money you won’t need to access in the near term. Typically, we recommend using CDs for long-term goals, like accumulating a down payment for a home.

How the Fed impacts online savings rates

The interest rates offered by banks are tied to the federal funds rate, which is set by the Federal Reserve’s Federal Open Market Committee (FOMC). This includes the deposit account rates that grow your money in savings and other deposit accounts. When the federal funds rate rises, you might see that reflected in the deposit interest rates at most banks.

As the Fed hiked rates over recent years, online banks were far quicker to raise their rates in turn than traditional banks. Just look at the average APY offered by big banks — 0.26% vs. 1.52% on average for online banks as of December 2018.

We’ve enjoyed successive Fed rate hikes for the last few years, but the trend is waning. As we continue into 2019, the odds of a rate hike this year have reached zero. The Fed did nothing at its January meeting, and didn’t raise rates at the March meeting either.

The bleak federal funds rate outlook doesn’t necessarily mean that banks will start slashing their own deposit account rates. Online banks are extremely competitive and need to remain so if they want to maintain their edge.

In the January Goldman Sachs earnings call, Goldman Sachs Executive Vice President and CFO Stephen M. Scherr noted it has no plans to walk back on rates for its online savings account Marcus, aiming to keep its rank among the top savings rates in the country.

We heard much of the same from fellow online bank Ally Bank, whose CFO Jennifer LaClair said during its January earnings call that it’s still important to take the “competitive landscape” into account.

Still, other earnings calls indicated that banks are in as much of a holding pattern as consumers are. When asked about the bank’s deposit rate outlook in the event of a Fed rate slowdown, Bank of America CFO Paul Donofrio noted, “At some point, the broader retail rates will rise. We just don’t know when. So, I think we’re just going to have to wait and see.”

As for what that all means to you, chances are that if you keep your deposits with an online bank, you’ll still get the most competitive rates regardless of a Fed pause or rate decrease. You might see an overall decrease in online savings rates (moreso in the competitive rate-chasing CD space), but they’ll still outperform most brick-and-mortar rates any day.

The bottom line

So what’s a saver to do? At the end of the day, you want the account that makes the most sense for you. Choose the one that lets you save and manage your money in the best ways possible. The most efficient way to consistently grow your money is to open an online savings account. These accounts will offer the best interest rates compared to brick-and-mortar banks, no matter where the federal funds rate goes this year — plus, they’re easily accessible in case of emergency. If you don’t need immediate access to your money and you have some extra cash lying around, open a high-yield CD as a more long-term savings alternative.

promo-savings-wide

You can learn more about how our site is financed here.

Continue reading The Best High-Yield Online Savings Accounts in November 2019

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

LaTisha Styles
LaTisha Styles |

LaTisha Styles is a writer at MagnifyMoney. You can email LaTisha at [email protected]

Lauren Perez
Lauren Perez |

Lauren Perez is a writer at MagnifyMoney. You can email Lauren here

Advertiser Disclosure

Best of

The Best 3-Month CD Rates

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

If you have some extra cash looking for a quick return, a 3-month certificate of deposit (CD) could be the handy savings tool you’ve been looking for. CDs with a 3-month term are typically the shortest CD offerings available. Because they’re such brief investments, 3-month CDs also tend to earn at pretty low interest rates. In fact, the average return on a 3-month CD in November is only 0.49% APY.

However, low 3-month CD rates are far from being an inescapable destiny. In order to compete for customers, some banks end up offering really great rates on short-term CDs. This competition can be a big advantage if you know where to look. And we know where to look: Read on to see the best CD rates for 3-month terms.

We ranked the following products by highest APY available nationwide, using data from DepositAccounts.com, another LendingTree-owned company. We also took minimum deposit requirements into consideration to ensure wider availability for customers. Finally, we checked each account’s early withdrawal penalty, as 3-month CD penalties can take a larger chunk of your earnings out than other terms.

The best 3-month CD rates

Institution

APY

Minimum deposit amount

Virtual Bank1.90%$10,000
Spectrum Credit Union1.85%$500
Third Federal Savings and Loan1.75%$500
Hanscom Federal Credit Union1.45%$250
Advancial1.70%$25,000
My Banking Direct1.65%$2,500
Bethpage Federal Credit Union1.60%$50
USALLIANCE Financial1.60%$500
CD Bank1.60%$10,000
TIAA Bank1.50%$5,000

Virtual Bank — 1.90% APY, $10,000 minimum deposit

To snag the highest 3-month CD rate, you’ll need at least $10,000 as an opening deposit for a Virtual Bank 3-Month eCD. The penalty for making an early withdrawal from a 3-Month eCDis 100% of the interest earned on the amount withdrawn, negating any earnings you may have received.

Virtual Bank is a digital division of IBERIABANK, which was founded in New Iberia, La. way back in 1887.

Learn more Secured

on Virtual Bank’s secure website

Member FDIC

Spectrum Credit Union — 1.85% APY, $500 minimum deposit

To open a Spectrum Credit Union 3-month Share Certificate, you’ll need at least $500 to deposit. After that, all balances can earn at the given rate. Making an early withdrawal from the 3-month Share Certificate will charge a penalty of three months’ worth of dividends.

Spectrum Credit Union was founded in 1973 originally as Bechtel Employees Federal Credit Union. It is a division of Chevron Federal Credit Union (CFCU), a California-based credit union that was established in 1935. Spectrum membership is available to a variety of customers including employees of select companies, residents of select San Francisco and Maryland neighborhoods. You can also become eligible for Spectrum Credit Union membership by joining one of its partner nonprofit associations.

Learn more Secured

on Spectrum Credit Union’s secure website

NCUA Insured

Third Federal Savings and Loan — 1.75% APY, $500 minimum deposit

Third Federal Savings and Loan offers a great deal on its 3-Month Special CD. You can start growing your money at a competitive rate, comparable to many longer-term CDs, for a minimum deposit of only $500. Just be careful of making an early withdrawal from the account, as you’ll lose one month’s worth of interest.

Third Federal Savings and Loan Association first opened in Cleveland in 1938, where it is still based today.

LEARN MORE Secured

on Third Federal Savings And Loan (OH)’s secure website

Member FDIC

Hanscom Federal Credit Union — 1.45% APY, $250 minimum deposit

Snag not only a competitive rate, but a little CD flexibility, too, with Hanscom Federal Credit Union’s 3-month EasyStart Certificate. You may also choose to open it as a 6- or 12-month CD. The EasyStart Certificate requires only $250 to open and allows additional deposits of at least $10 throughout the term. Dividends are compounded and paid monthly. The early withdrawal penalty will equal 90 days dividends on the amount withdrawn subject to penalty.

Around since 1953, Hanscom FCU membership is reserved for members of select community organizations, immediate family members of current members, employees, volunteers and retirees of select companies, employees and retirees of the Federal Government in Massachusetts and active duty/retired military.

LEARN MORE Secured

on Hanscom Federal Credit Union’s secure website

NCUA Insured

Advancial — 1.70% APY, $25,000 minimum deposit

While a regular Advancial Savings Certificate requires $1,000 to open, you’ll need at least $25,000 to snag this competitive rate as a junior jumbo certificate. Advancial will allow you to use your certificate as collateral to secure a loan. The early withdrawal penalty from a 3-month Savings Certificate will equal 90 days worth of interest earned on the amount withdrawn.

Advancial was founded in 1937 and is based in Dallas. Advancial membership eligibility is open to employees and members of one of Advancial’s Select Employer Groups or Associations, an immediate family or household member of a qualified individual or individuals who live, work, worship or attend school select Louisiana parishes.

LEARN MORE Secured

on Advancial’s secure website

NCUA Insured

My Banking Direct — 1.65% APY, $2,500 minimum deposit

My Banking Direct offers only two CDs, one of which is the 3 Months CD. You’ll need at least $2,500 to open and earn interest at its 1.65% APY. Interest is calculated on a simple interest basis and credited to your account quarterly. The penalty for withdrawing any of the principal before maturity will equal 30 days’ simple interest on the amount withdrawn.

My Banking Direct is a service of New York Community Bank, which was founded in 1859. In addition to online, you can access your My Banking Direct accounts through the NYCB mobile app.

LEARN MORE Secured

on My Banking Direct’s secure website

Member FDIC

Bethpage Federal Credit Union — 1.60% APY, $50 minimum deposit

With competitive rates on all its Certificates, the Bethpage Federal Credit Union 3-Month Certificate is no exception. It’s the last rate on our list in the 2% range. Plus, you only need $50 to open an account, so it’s easier to get started. The penalty for an early withdrawal from this account is 90 days’ worth of dividends on the principal amount withdrawn.

Bethpage FCU first opened in 1941 to serve Grumman employees. Based in Bethpage, N.Y., the credit union also offers customers access to thousands more branches and ATMs throughout the country through the CO-OP Network. Bethpage FCU opens membership up to anyone; you just need to open a Bethpage savings account and fund it with $5 to become a member.

LEARN MORE Secured

on Bethpage Federal Credit Union’s secure website

NCUA Insured

USALLIANCE Financial — 1.60% APY, $500 minimum deposit

USALLIANCE Financial’s 3-Month Certificate Account requires at least $500 to open for you to start earning at its solid interest rate. For such a short term, the penalty for an early withdrawal is pretty high, charging 180 days’ dividends on the amount withdrawn.

USALLIANCE Financial was founded in 1966 by IBM employees. No longer limited to IBM, USALLIANCE Financial membership is open to select companies and their employees, neighborhoods and locations, places of worship, schools and organizations.

LEARN MORE Secured

on USALLIANCE Financial’s secure website

NCUA Insured

CD Bank — 1.60% APY, $10,000 minimum deposit

As is the case with all its accounts, CD Bank also offers a pretty competitive rate on its 3-Month CD. You’ll need at least $10,000 to open and start earning interest, which is credited semi-annually. Making a withdrawal from this CD before maturity will cost you three months’ worth of interest on the amount withdrawn.

CD Bank offers only CD accounts. It is an online division of Dallas-based TBK Bank, which is a subsidiary of Triumph Bancorp, Inc.

LEARN MORE Secured

on CD Bank’s secure website

Member FDIC

TIAA Bank — 1.50% APY, $5,000 minimum deposit

If you have at least $5,000 to set aside, you can benefit from TIAA Bank’s high-rate 3-month Yield Pledge CD. The penalty for an early withdrawal from this account equals 22 days of simple interest.

TIAA was founded in 1918 and is headquartered in Jacksonville, Fla. It operates entirely online, however.

LEARN MORE Secured

on TIAA Bank’s secure website

Member FDIC

Short-term CDs vs. long-term CDs: Which are better investments?

Both short-term and long-term CDs are great investment tools, although they serve different purposes depending on your savings goals. Long-term CDs are better for saving for goals years in the future. They also help you lock in high rates for years to come to protect against a rate-dropping climate.

Short-term CDs, on the other hand, are better when you have some extra cash you need to stash away for a bit. You can take advantage of high rates, but there is the inherent risk that in three or six months, that rate may have gone down. On the flip side, a short-lived term allows you to take advantage of rising rates more quickly.

A CD alternative that would still allow you some flexibility in catching rising rates would be to open no-penalty CDs instead. Like their name suggests, no-penalty CDs allow you to avoid the typical early withdrawal penalty associated with CDs. That way, when you start to see higher available CD rates, you can close up one CD and deposit those funds in a new, higher rate account without losing money.

Because short-term CDs expire so quickly, it might make sense to open a more liquid savings product instead. “A reasonable alternative is to just keep that money in a savings or money market account for three or six months,” suggests Ken Tumin, founder of DepositAccounts.com, a LendingTree-owned company. “In fact, the savings account rates at many internet banks are actually quite a bit higher than their 3- and 6-month CD rates.”

However, there is always the chance of your variable savings account rate decreasing without notice. So if you can open one of the best 3-month CDs above, the returns could be worth locking away your money for a few months.

Starting off a mini CD ladder with a 3-month CD

Many CD ladder guides suggest building a ladder starting with a 1-year CD. That technique results in CDs that mature every year. But you can also just as easily kick off a CD ladder with 3-month CDs. That would allow for more frequent maturity dates. For example, you could start a ladder with 3-month, 6-month, 9-month and 12-month CDs. When the 3-month, 6-month and 9-month CDs mature, you would renew each one into a 12-month CD. The steady state of the ladder would then be just 12-month CDs that mature every three months.

You can also create a ladder with longer-term CDs that still mature every three months. In this case, it’s a little more complicated when starting the CD ladder. In sticking with the example above, you could also open a 24-month and 36-month CD at the outset. After several rollovers into various terms over the next few years, the ladder’s steady state would have a 36-month CD maturing every 3 months. This could be an ideal way to take advantage of high rates now while also leaving some room for higher rates in the future. It also offers opportunities for you to receive a payout every three months.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lauren Perez
Lauren Perez |

Lauren Perez is a writer at MagnifyMoney. You can email Lauren here

Advertiser Disclosure

Best of

Best Savings Account Bonus Offers

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

There’s no shortage of checking account bonus offers, with everyone from small local banks to the big household names offering hundreds of dollars to new customers. Banks know it’s hard to get you to leave your old bank, especially when you’re comfortable with the accounts you have. But what better way to entice you than with a big cash bonus?

You’ll find these bonus offers attached to more checking accounts than savings accounts. After all, checking accounts are a crucial part to banking, as they allow you to easily access your money for purchases and transfers.

That’s not to say there aren’t any opportunities to earn money with a new savings account. We’ve found six of the best savings account bonus offers as of the date of publishing. It’s easy to go straight for the highest amount, but pay attention to the bank and the account you’re getting ready to open. Make sure it’s a bank you actually want to do business with.

Further, double check that you’ll be happy with the new account for months to come. It can take months to meet the offer requirements and even longer to actually receive the bonus. If there’s a monthly fee on the account, you could be stuck paying that unnecessary fee, especially if you can’t meet the balance requirements to waive it. You may not even be happy with the interest rate on the account, which might make the savings account bonus offer not entirely worth it.

The best savings account bonus offers in 2019

Methodology

To find the best savings account bonus offers, we looked for the highest bonus amounts offered. Below, you’ll find the six biggest bonus offers on savings accounts being offered. Offers are current as of this publication date and we will update the article periodically to show the freshest ranking.

Chase — $2,000 bonus with $250,000 minimum deposit

Offer ends 11/19/2019

Offer rules: Become a Chase Private Client customer and get a chance to earn this $2,000 bonus. You’ll need to transfer a total of $250,000 or more in qualifying new money or securities to a combination of eligible personal checking, savings and/or investment accounts within 45 days of opening and maintain the balance for at least 90 days. Eligible accounts excludes any You Invest, J.P. Morgan retirement accounts and CDs.

Who’s eligible: Only new Chase customers in 32 select states and Washington D.C. may qualify for this offer. You can visit your nearest CPC branch or email an upgrade code to yourself to redeem this offer.

Account details: Chase Private Client requires you to maintain an average daily balance of $250,000 or more between qualifying personal or business deposits and investments. Chase Private Client extends the perks and benefits you can receive on your Chase accounts, including banking, credit cards, loans and investments.

Chase Private Client does not charge monthly fees on Chase Private Client Checking or Chase Private Client Savings accounts. Private Client Savings Accounts earn a minimal 0.01% APY.

LEARN MORE Secured

on Chase Bank’s secure website

Member FDIC

Chase — $1,000 bonus with $75,000 minimum deposit

Offer ends 11/19/2019

Offer rules: Become a Sapphire Banking customer by transferring $75,000 or more in qualifying new money or securities to a combination of eligible personal checking, savings and/or investment accounts (excluding any J.P. Morgan retirement accounts and CDs). You must also maintain that balance for 90 days.

Who’s eligible: This offer is available only to customers in 32 select states and Washington D.C. You can open a Sapphire Banking account online and email yourself a code to redeem this offer.

Account details: Despite its premier placing, Chase Sapphire Checking earns only 0.01% APY. Linking a Chase Sapphire Checking account to a Chase Premier Savings account (and meeting other requirements), offers a small boost to your Premier Savings rates. It also unlocks higher rates for higher balances.

LEARN MORE Secured

on Chase Bank’s secure website

Member FDIC

Citi — $400 bonus with $15,000 minimum deposit

Offer ends 12/31/2019

Offer rules: You must be a new Citibank customer and open a Citibank Account Package, which includes a checking and savings account. Within 30 days of opening these accounts, you must deposit at least $15,000 in either of these two accounts with money new to Citibank, and maintain a minimum balance across both accounts of $15,000 for 60 days.

After meeting the above requirements, you’ll get $400 in bonus money deposited into your checking account (or savings account if you’ve closed the checking account). If you make at least two ACH deposits into the checking account portion of the Account Package within 60 days of opening the account, you’ll receive an additional $100.

Who’s eligible: You must be a new customer to Citibank and enroll in the bank’s “$400/$500 Checking and Savings Offer” either in person, over the phone, or online.

Account details: There’s a $25 monthly maintenance fee, which you can avoid be keeping a minimum of $10,00 deposited across both accounts (which you’ll want to do anyone in order to qualify for the bonus, which requires a minimum of $15,000). You may not want a checking account and are free to close it, but keep in mind in order to get the $100 bonus (to bring the total amount to $500) you need to make the ACH deposits into a checking account, not a savings account.

LEARN MORE Secured

on Citi’s secure website

Associated Bank — $400 bonus with $25,100 minimum deposit

Offer ends 6/30/2020

Offer rules: This offer requires you to open both an Associated Choice Checking account and an Associated Relationship Savings account. Open the checking account with at least $100 and make three payments through Associated Bank Online Bill Pay or at least one direct deposit of $300 or more within 45 days of account opening. You must open the savings account with at least $25,000. Together, you must maintain a $25,000 minimum combined balance in those accounts for 90 days to receive the reward, 120 days after account opening.

Email yourself a coupon code from the offer page and bring that coupon into a branch to redeem.

Who’s eligible: You must fund the new accounts with money not already held with the Bank. The offer is not available to Associated Bank employees and those who already have or have had a checking account or Associated Relationship Savings account at Associated Bank within the last six months.

Account details: A heavy-hitting account, the Associated Choice Checking account earns interest between 0.01% and 0.05% APY, depending on your balance (higher balances earn higher rates). It charges a high $25 monthly fee, which you can waive with at least $10,000 in combined deposit accounts or either an HSA or investment account.

The Associated Relationship Savings account earns between 0.10% and 1.35% APY, where higher balances earn more.

LEARN MORE Secured

on Associated Bank, NA’s secure website

Member FDIC

CIT Bank — up to $300 bonus with $50,000 minimum deposit

Offer ends 12/31/2019

Offer rules: Once you have a Savings Builder account enrolled in the promotion, you must make your qualifying opening deposit within 15 calendar days after opening (known by CIT Bank as the Funding Period). To earn a $150 bonus, your opening deposit must be at least $25,000 in new money (money not held at CIT Bank). To earn a $300 bonus, deposit at least $50,000 in new money. You must also maintain the minimum balance for 90 calendar days (known as the Review Period) after the end of the Funding Period.

Who’s eligible: Both new and existing CIT Bank customers nationwide are eligible to benefit from this bonus offer. New customers are those who did not have a valid CIT Bank User ID that was created before Oct. 4, 2019. New and existing customers who do not already have a Savings Builder account must open one with a valid Promo Code.

Account details: The CIT Bank Savings Builder offers a competitive 1.85% APY on balances $25,000 and over or on accounts with a monthly deposit of at least $100. The account requires at least $100 to open. There is no monthly fee on the Savings Builder account.

LEARN MORE Secured

on CIT Bank’s secure website

Member FDIC

Wells Fargo — $250 bonus with $15,000 minimum deposit

Offer ends 12/31/2019

Offer rules: Open a new eligible savings account with a $25 minimum opening deposit by December 31, 2019. Then within 10 days of opening, you must deposit at least $15,000 in new money, which is money not already held at Wells Fargo. You must maintain a $15,000 minimum daily balance in the account for 90 days from account opening as well, to earn the $250 bonus.

Who’s eligible: Only new Wells Fargo checking and savings customers from Dallas and Washington, D.C. are eligible to redeem this offer. You must also not have received a bonus for opening a Wells Fargo consumer checking or savings account within the past 12 months.

To receive the offer code, Complete the Open In Branch form online here to receive a bonus offer code that you can bring to a branch to open your new account.

Account details: Wells Fargo offers two savings accounts, the Way2Save® Savings and Platinum Savings accounts. Both require a $25 minimum deposit and both charge waivable monthly fees. The Platinum Savings account also earns interest.

LEARN MORE Secured

on Wells Fargo Bank’s secure website

Member FDIC

Discover — $200 bonus with $25,000 minimum deposit

Offer ends 12/02/2019

Offer rules:Discover customers can benefit from a $200 bonus by opening a Discover Online Savings account for the first time by December 2, 2019, which is the same date this offer ends. You’ll then need to deposit at least $25,000 into the account by December 16, 2019.

If you can’t meet that minimum amount, you can earn a $150 bonus instead by depositing at least $15,000 into the new account by December 16, 2019.

The bonus will be credited to your account by December 30, 2019.

Who’s eligible: You must be a new Discover savings customer to qualify for this savings account bonus offer. You must not have had a savings account that was co-branded or an affinity account provided by Discover either.

You can apply for the offer with the code “MM1119” either online or by phone.

Account details: Discover’s Online Savings Account earns at a competitive interest rate of 1.80% on all balances. There are no fees associated with this account. Keep in mind that the bonus is considered interest and will be reported on a 1099-INT form.

Advertiser Website for Full Details

Learn More Secured

on Discover Bank’s secure website

Member FDIC

Chase — $150/$350 bonus with $10,000 minimum deposit

Offer ends 1/21/2020

Offer rules: In another bonus offer from Chase, you can get $150 when you open a new Chase Savings account. You’ll need to deposit at least $10,000 in new money (not previously held with Chase or its affiliates) within 20 business days and maintain at least that minimum balance for 90 days.

Want to do more banking with Chase and open a Chase Total Checking account, too? Opening both a new checking and savings account can get you a $350 bonus, as long as you follow the above savings account rules and set up direct deposit on your new checking account.

Who’s eligible: You’re eligible for the Chase Savings account bonus offer if you are not already a Chase savings customer. You also cannot have had an account that was closed within 90 days or with a negative balance.

If you close this new savings account within six months after opening, Chase will deduct the bonus amount from the account at closing.

Account details: The Chase Savings account earns interest at a nominal rate of 0.01% APY, which isn’t ideal for savings growth. There is a $5 monthly fee on the account. You can waive the fee with one of the following, each statement period:

  • A daily balance of at least $300
  • At least one repeating automatic transfer of $25 or more from your personal Chase checking account or Chase Liquid® Card
  • An account owner who is younger than 18
  • Linking this account to a Chase Premier Plus Checking, Chase Sapphire Checking or Chase Private Client Checking account

You could also face a $5 fee for each excessive transaction you make over the six-transfer limit per statement cycle.

LEARN MORE Secured

on Chase Bank’s secure website

Associated Bank — $100 bonus with $10,000 minimum deposit

Offer ends 12/31/2019

Offer rules: Opening a new Associated Bank Money Market account can get you a $100 bonus. You’ll need to deposit at least $10,000 in new money (held outside Associated Bank) at opening and maintain at least that much in the account for 90 days to receive the bonus.

The bonus will be paid within 120 days of account opening if you meet the requirements. The account must be open at that time. You must also keep the account open for at least 12 months.

Who’s eligible: You can redeem this offer online or by taking a coupon sent via email to an Associated Bank branch. This offer is limited to one per household. Households who have or have had an Associated Bank Money Market account within the last six months do not qualify. You must be 18 years or older to apply for the bonus. If you close the new account within 12 months of opening, Associated Bank can deduct the bonus amount from your funds at closing.

Account details: The Associated Bank Money Market account is a true money market account, with the ability to write convenience checks and access Associated Bank and MoneyPass ATMs. It earns interest, too, between 0.03% and 0.05% APY. You can earn at higher rates by having a higher balance and a qualifying Associated checking account.

The money market account does charge a $16 fee, which you can waive by maintaining a $1,000 minimum balance.

LEARN MORE Secured

on Associated Bank, NA’s secure website

Member FDIC

How do these accounts compare to the best online savings accounts?

When looking for the best online savings accounts, you won’t find much overlap here. Bonus offers tend to come from brick-and-mortar banks, as incentives for you to place your deposits with them.

Online banks still win by and large. But don’t let these financial carrots mislead you into thinking they are the best on the market — many of the best accounts are being offered by online banks these days. Online accounts tend to have the highest interest rates and the lowest fees — what more could you want? That’s why you’ll find most sign-up bonuses being offered by brick-and-mortar banks.

Know the pros and cons. You should figure out whether it’s worth it for you to open a new account with a traditional bank just for a bonus offer. Don’t forget, you can’t open a new account for a bonus offer and close it immediately. Qualifying for and receiving the bonus takes months. You could even lose your bonus offer if you close the account too soon. Plus, a savings account bonus offer is a short-term boost in savings, rather than the ongoing growth of a high-yield account. It won’t help your savings situation if your new account charges a monthly fee that you can’t waive, either.

Factor in fees. If you do desperately want to snag a couple hundred dollars by opening a new account, make sure you won’t be paying a monthly fee for the months you have the account. That way, you won’t lose any of that bonus right off the bat. Again, double check the account’s closing terms to ensure you won’t lose the bonus at closing, either. It’s also important to be able to meet the account’s minimum balance requirements. It may not make sense for you to keep $10,000 in a low-earning account just to earn a $200 bonus, for example.

Do the math. Let’s say you do deposit and maintain $10,000 in a new savings account that has an interest rate of 0.01%, which is typical of brick-and-mortar savings accounts. After a year, you’ll have earned $1 in interest. Add that to your $200 bonus and you can add a whopping $201 to your savings. Now, if you were to forgo the bonus offer and deposit your $10,000 into a high-yield savings account with a 2.25% APY, you’ll earn just over $227 after a year (with monthly compounding) — a better savings boost than the savings account bonus offer.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lauren Perez
Lauren Perez |

Lauren Perez is a writer at MagnifyMoney. You can email Lauren here