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The Best High-Yield Online Savings Accounts in August 2020

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There are no excuses for sticking with a low-rate savings account these days. High-yield savings accounts provide consumers with interest rates that are way above those offered by conventional banks. The best high-yield online savings accounts can easily earn you an APY of 0.80% or greater, while the average rate offered by a traditional brick-and-mortar bank remains at a paltry 0.06%.

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 high-yield 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.

Market update: Banks have dropped their savings rates considerably due to recent uncertainty caused by the COVID-19 outbreak. Despite interest rates declining overall, we are still seeing many of the pre-crisis top performers continuing to lead the pack in the overall best rates category.

Do you have a savings goal in mind? Tell us about it!

1. High Rate: American Express National Bank – 1.00% APY

High Yield Savings Account from American Express National Bank

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on American Express National Bank’s secure website

Partner Offer

Member FDIC

  • APY:1.00%
  • Minimum balance requirement: None
  • Monthly Fees: None
  • ATM Access: No
  • App Available: No
Overview: Our sponsored advertiser, American Express National Bank, offers a Personal Savings account, which earns a 1.00% variable Annual Percentage Yield (APY) as of 8/04/2020. 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.

2. High Rate: Capital One – 0.80% APY

  • APY:0.80%
  • Minimum balance requirement: None
  • Monthly Fees: None
  • ATM Access: No
  • App Available: Yes
Overview: A consistent rate leader for its deposit accounts, Capital One now offers its 360 Performance Savings. With a 0.80% 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.

3. Favorite Online Package: Ally Bank – 1.00% APY

Online Savings Account from Ally Bank

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on Ally Bank’s secure website

Member FDIC

  • APY:1.00%
  • Minimum balance requirement: None
  • Monthly Fees: None
  • ATM Access: No
  • App Available: Yes
Overview: Ally 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 1.00%. 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). 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.

4. High Rate: Marcus by Goldman Sachs – 0.80% APY

High-yield Online Savings Account from Marcus by Goldman Sachs

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on Marcus By Goldman Sachs’s secure website

Member FDIC

  • Annual Percentage Yield:0.80%
  • Minimum balance requirement: None
  • Monthly Fees: None
  • ATM Access: No
  • App Available: Yes
Overview: Our advertiser Marcus by Goldman Sachs, the consumer bank of Wall Street giant Goldman Sachs, offers a 0.80% Annual Percentage Yield 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 0.80% 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.

Marcus is accessible both online and via the Marcus mobile app, available only in the Apple App Store.

5. High Rate: Barclays Bank – 0.80% APY

Online Savings Account from Barclays

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on Barclays’s secure website

Member FDIC

  • APY:0.80%
  • Minimum balance requirement: None
  • Monthly Fees: None
  • ATM Access: No
  • App Available: Yes
Overview: Barclays 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 0.80% 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.

6. High Rate: Synchrony Bank – 0.75% APY

  • Annual Percentage Yield (APY):0.75%
  • Minimum balance requirement: None
  • Monthly Fees: None
  • ATM Access: Yes
  • App Available: Yes
Overview: Synchrony Bank pays a healthy 0.75% 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.

7. High Rate: Vio Bank – 1.04% APY

High Yield Online Savings Account from Vio Bank

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on Vio Bank’s secure website

Member FDIC

  • APY:1.04%
  • Minimum balance requirement: $100
  • Monthly Fees: None
  • ATM Access: No
  • App Available: Yes
Overview: Vio 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 1.04% 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.

8. High Rate: Live Oak Bank – 1.00% APY

High Yield Online Savings from Live Oak Bank

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on Live Oak Bank’s secure website

Member FDIC

  • APY:1.00%
  • Minimum balance requirement: None
  • Monthly Fees: None
  • ATM Access: No
  • App Available: Yes
Overview: Founded in 2008, Live Oak Bank offers a great spread of financial products, including its high-yield Online Savings account. The Online Savings account earns 1.00% APY on all balances. Plus, interest is compounded daily for faster savings. There’ s no minimum deposit requirement to open, either, nor a monthly fee to worry about.

In addition to online access, Live Oak Bank offers a mobile app.

9. High Rate: Citizens Access – 1.00% APY

Online Savings Account from Citizens Access

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on Citizens Access’s secure website

Member FDIC

  • APY:1.00%
  • Minimum balance requirement: $5,000
  • Monthly Fees: None
  • ATM Access: No
  • App Available: No
Overview: Citizens 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 1.00% 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.

10. High Rate: Discover – 0.95% APY

  • APY:0.95%
  • Minimum balance requirement: None
  • Monthly Fees: None
  • ATM Access: No
  • App Available: Yes
Overview: Although usually known for its credit cards, Discover has carved a space for itself in the deposits world with its competitive online accounts. The Online Savings Account earns its 0.95% APY on all balances. There is no minimum to open the account either. Interest is compounded daily and paid monthly.

The account is free to own. Plus, there are no fees for checks, returned deposited items, excessive withdrawal fees, stop payment orders or insufficient funds.

In addition to online access, Discover offers a mobile app for further convenience, which includes mobile deposit capabilities.

11. High Rate: BrioDirect – 0.90% APY

High-Yield Savings from BrioDirect

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on BrioDirect’s secure website

FDIC Insured

  • APY:0.90%
  • Minimum balance requirement: $25
  • Monthly Fees: None
  • ATM Access: No
  • App Available: Yes
Overview: BrioDirect 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 0.90% 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.

12. High Rate: Axos Bank – 0.90% APY

High Yield Savings from Axos Bank

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on Axos Bank’s secure website

Member FDIC

  • APY:0.90%
  • Minimum balance requirement: $250
  • Monthly Fees: None
  • ATM Access: ATM card available upon request
  • App Available: Yes
Overview: Axos Bank was founded in 2000, known then as Bank of Internet USA. Through a couple name changes, Axos Bank has remained one of the top online banks. It offers a full suite of deposit products, from various checking accounts to certificates of deposit.

This High Yield Savings account earns its industry-leading APY on all balances, although you need $250 to open the account. Interest is compounded daily. There is no monthly fee and you can receive a free ATM card upon request.

As a digital bank, Axos Bank is accessible online and on mobile. Its mobile app includes mobile deposit. Axos Bank also offers a step-by-step Switch Kit to help you switch from your current bank to Axos.

13. High Rate: First Foundation Bank – 1.20% APY

Online Savings Account - New Money Only from First Foundation Bank

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on First Foundation Bank’s secure website

Member FDIC

  • APY:1.20%
  • Minimum balance requirement: $1,000
  • Monthly Fees: None
  • ATM Access: ATM card available upon request
  • App Available: Yes
Overview: First 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 1.20%. 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. 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 $20,000 and the monthly limit is $100,000. 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.

14. High Rate: Nationwide by Axos Bank – 1.05% APY

My Savings from Nationwide by Axos Bank

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on Nationwide By Axos Bank’s secure website

FDIC Insured

  • APY:1.05%, contingent on having a My Checking account with a deposit of at least $1,000
  • Minimum balance requirement: $100
  • Monthly Fees: None
  • ATM Access: No
  • App Available: Yes
Overview: Through this partnership, Nationwide by Axos Bank is able to offer a full suite of financial accounts and services. Axos Bank, a digital bank founded in 2000, provides these services and the FDIC insurance on deposit accounts. Mobile access is available through the Axos Bank for Nationwide mobile app on both iPhone and Android devices.

My Savings is just one of Nationwide by Axos Bank’s savings accounts and requires at least $100 to open. Its competitive 1.05% APY applies to all balances, although you’ll need to have a My Checking account with a monthly direct deposit totaling at least $1,000 to that checking account to snag the competitive savings rate. If you don’t want the My Checking account, you can still earn a solid rate of 1.00% APY. The My Savings account does not charge a monthly service fee.

15. Unique Bank + Highest Overall Rate: Fitness Bank – 1.05% APY

Fitness Savings (12,500+ Steps) from FitnessBank

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on FitnessBank’s secure website

Member FDIC

  • APY:1.05%, contingent on taking 12,500 steps
  • Minimum balance requirement: $100
  • Monthly Fees: $10
  • ATM Access: No
  • App Available: Yes
Overview: Fitness 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 1.05% 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 0.95% (which is still a great APY). You’ll earn 0.85% 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 0.75%. 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 1.05% 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.

16. High Rate: SFGI Direct – 1.01% APY

  • APY:1.01%
  • Minimum balance requirement: $500
  • Monthly Fees: None
  • ATM Access: No
  • App Available: No
Overview: SFGI 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 1.01% 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.

17. High Rate: Prime Alliance Bank – 1.01% APY

Personal Savings Account from Prime Alliance Bank

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on Prime Alliance Bank’s secure website

Member FDIC

  • APY:1.01%
  • Minimum balance requirement: None
  • Monthly Fees: None
  • ATM Access: No
  • App Available: Yes
Overview: Prime 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.

The bank’s Personal Savings account doesn’t require a minimum amount to open the account, and all balances earn the high APY of 1.01%. This account doesn’t have a monthly service fee. You’re able to maintain the account online or through the bank’s mobile app.

18. High Rate: Comenity Direct – 1.00% APY

High-Yield Savings Account from Comenity Direct

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on Comenity Direct’s secure website

Member FDIC

  • APY:1.00%
  • Minimum balance requirement: None
  • Monthly Fees: None
  • ATM Access: No
  • App Available: Yes
Overview: Comenity 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 1.00% 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.

19. High Rate: ConnectOne Bank – 1.00% APY

OneConnection Savings - Online from ConnectOne Bank

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on ConnectOne Bank’s secure website

Member FDIC

  • APY:1.00%
  • Minimum balance requirement: $2,500 min to earn
  • Monthly Fees: None
  • ATM Access: No
  • App Available: Yes
Overview: With locations in New Jersey and New York, ConnectOne Bank’s best savings offering lives online. The free OneConnection Savings account requires at least $2,500 to open. It earns its competitive 1.00% APY on balances from $2,500 to $250,000.99. Balances above that earn a 0.30% APY instead.

Deposits into this online account can be made through the Remote Check Deposit feature on the bank’s mobile app, online funds transfers, direct deposit and checks or cash at a location. Withdrawals can be made by online funds transfers or by requesting a check to be sent to you.

20. For Small Balance Savers: Digital Federal Credit Union – 6.17% APY

  • APY:6.17%
  • Minimum balance requirement: Deposits up to $1,000 earn APY
  • Monthly Fees: None
  • ATM Access: No
  • App Available: Yes
Overview: 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.

MagnifyMoney’s Best Savings Accounts for August 2020

To recap, here are our top picks of the Best Savings Accounts for August 2020.

The Best Savings Accounts in August 2020 Overall

Institution

APY

Bank Review

American Express National Bank Personal Savings


1.00% APY

American Express Review

Capital One 360 Performance Savings

0.80% APY

Capital One 360 Review

Ally Bank Online Savings Account

1.00% APY

Ally Bank Review

Marcus by Goldman Sachs High Yield Online Savings

0.80% APY

Marcus by Goldman Sachs Review

Barclays Bank Online Savings Account

0.80% APY

Barclays Bank Review

Synchrony Bank High-Yield Savings Account

0.75% APY

Synchrony Bank Review

To find the best savings accounts, we look for the banks that consistently offer competitive savings rates. This list is updated weekly to stay on top of the best savings account choices for you.

The Best Online Savings Accounts in August 2020

Institution

APY

Bank Review

Vio Bank High Yield Online Savings Account

1.04% APY




Vio Bank Review

Live Oak Bank Savings Account

1.00% APY

Live Oak Bank Review

Citizens Access Online Savings Account

1.00% APY

Citizens Access Review

Discover Online Savings Account

0.95% APY

Discover Review

BrioDirect High-Yield Savings Account

0.90% APY

BrioDirect Review

Axos Bank High Yield Savings Account

0.90% APY

Axos Bank Review

Nowadays, the best savings accounts are often found online. New online savings accounts from online banks or even established banks looking to get in on the high-yield action blow traditional savings account rates out of the water. This list is updated weekly to reflect the latest and greatest online savings accounts with consistency over the past two years.

The Best High-Yield Savings Accounts and Rates in August 2020

Institution

APY

Bank Review

First Foundation Bank Online Savings Account

1.20% APY

First Foundation Bank Review

Nationwide by Axos Bank My Savings

1.05% APY

Nationwide by Axos Bank Review

Fitness Bank Savings

1.05% APY

Fitness Bank Review

SFGI Direct Savings Account

1.01% APY

SFGI Direct Review

Prime Alliance Bank Personal Savings Account

1.01% APY

Prime Alliance Bank Review

Comenity Direct High Yield Savings Account

1.00% APY

Comenity Direct Review

ConnectOne Bank OneConnection Savings

1.00% APY

ConnectOne Bank Review

In today’s fluctuating-rate climate, the best high-yield savings accounts can change from day to day. We stay on top of them for you and list the highest earning savings accounts from this month below.

Why trust us?

At MagnifyMoney, it is our mission to inform our readers about the best financial opportunities out there. Our insights have been cited by top financial publications including Marketwatch, CNBC and the Wall Street Journal.

Our dedicated team of financial experts spends dozens of hours grading online savings accounts according to their interest rates, fee schedules, extra features, minimum balance requirements and accessibility, adjusting our rankings as banks and their offerings change on a weekly basis.

We distilled our picks from a list that included hundreds of banks, credit unions and online institutions nationwide.

Our methodology for picking the best high-yield savings accounts

To find the best high-yield online savings accounts, MagnifyMoney looks at over 6,000 financial institutions each week, from small community banks and credit unions to traditional brick-and-mortar banks to new online banks.

  1. Savings account rates: We heavily weighted the APYs offered by each bank in terms of both magnitude and consistency. Higher savings rates were prioritized over lower rates. Due to the variable rates on savings accounts, we also gave additional consideration to banks that were known to maintain competitive rates over longer periods of time.
  2. Minimum deposit and balance requirements: To ensure accessibility to all customers, we focused on banks that welcome deposits of all sizes, where the ideal banks in this category have minimum balance and deposit requirements of $0.
  3. Bank account fees: Unnecessary fees can eat into your long-term savings in a major way. Banks that offered low or no fees were given priority in this category over banks that are known to charge account maintenance fees, service charges and other surcharges.
  4. Customer service: We considered overall customer satisfaction and bank reputation when weighing each bank performance in this category. While each customer’s experience varies, we looked at relative feedback each bank received at the national level based on data sourced from consumer advocates like the Consumer Financial Protection Bureau (CFPB) and the Better Business Bureau. Banks that failed to meet minimum standards of performance were excluded.

What should I know about high-yield savings accounts?

It’s easy to take your savings account for granted, setting up automatic deposits and forgetting about it. But there’s a lot more to high-yield savings accounts that you should know.

For one, you can find consistently more competitive rates at online banks than with your typical big bank. Online banks are also more fee-friendly — although there are still some legal limitations you should be aware of to avoid extra fees.

What is a high-yield savings account?

A high-yield savings account, also known as a high-interest savings account, is a savings account that earns interest at a higher rate than a traditional savings account. The average savings account interest rate tends to hover around 0.20% APY, but big brick-and-mortar banks often offer interest rates more like 0.01% APY.

High-yield savings accounts raise the bar and offer upwards of 1% to 2% APY — sometimes even 3% APY in good rate conditions. High-interest savings accounts are also more likely to come with added benefits like little to no fees, especially when offered by an online bank.

How much interest will I earn with a high-yield savings account?

When you open a high-yield savings account, you’re almost guaranteed to earn more in interest than with a traditional savings account.

For example, let’s say you have $5,000 to deposit into a savings account. If you choose a high-interest savings account with a 2.30% APY, for example, you’ll earn $116 and some change in a year, provided you don’t make any additional contributions to the account in that time (which would boost your savings even more).

If you deposit your $5,000 into an average savings account at 0.20% APY for a year, you’ll earn just $10 in interest. It’s a pretty big difference in earnings, and all it takes is a simple account switch.

Even in a low-rate environment, where a high-yield savings account might be earning 1.30%, for example, you’ll still make about $65 in interest, which is still well over the $10 average earnings from a traditional savings account.

Does the APY for high-yield savings accounts change?

Savings accounts are variable-rate accounts, so their rates are subject to change — and they will over the course of an account’s lifetime. This is in contrast to fixed-rate savings vehicles, like CDs, which have set rates for predetermined periods of time.

There is no universal answer for how often interest rates change on high-yield savings accounts, since each institution has its own policies and decisions. However, you can often expect an institution to change its savings account rates about once a month at least. This change typically happens at the beginning of the month.

High-interest savings accounts are also more likely to see changes in their APYs than traditional low-rate savings accounts, because high-interest accounts have more room to change. Traditional savings account rates can only go so low, especially since many of them are already bottomed out at 0.01% APY.

How to choose the best high-yield savings account

  • Start by finding the highest APY
  • Check whether the institution is consistent with its high rates
  • Look for a no-fee account
  • Confirm any account balance minimums

When you’re looking for the best high-yield savings account, it’s tempting to go straight for the highest APY you can find. That account will certainly offer the highest yield at the moment, but there’s also more to it than that. Unless you’re okay with the possibility of switching accounts periodically to chase the highest rates, it may help to find an account offered by an institution that consistently offers some of the most competitive savings account rates. We’ve started our roundup above with those accounts, offered by consistent industry-leaders over the past two years.

But high yields may mean nothing if you lose your earnings to fees, so the best high-interest savings accounts out there are also the ones with little to no fees. Look for accounts with no monthly service fees, no overdraft fees and/or no excessive transaction fees. This will help you keep your savings intact.

You’ll also want to choose a high-yield savings account that works within your existing finances. Some accounts may impose minimum deposit or balance requirements to open and keep the account. We think the best high-interest accounts are the ones that require low or $0 minimums, which makes the account much more accessible to savers. But, if you have a high balance and find a savings account that offers a higher rate for high balances, then you can go for that account if it better fits your needs.

How do I open a high-yield savings account?

In most cases, opening a high yield savings account is as easy as clicking a button on the institution’s website and completing a short application form. You will likely be approved for the account right away.

A savings account application will likely require your name, home address, email address and Social Security Number. If the account requires a minimum deposit at opening, you’ll also likely have to link an external account at this time. Otherwise, you may make your initial deposit after opening, often within a 30- or 60-day window.

If you have a rocky banking history, like previous negative balances or circumstances where the institution closed your account, your application for a high-interest account may be denied. You can check out your recorded banking history with ChexSystems, a reporting system that many banks use. If there are any errors or points of contention, you may be able to dispute an item in your ChexSystems report.

What should I use a high-yield savings account for?

You can use a high-yield savings account for a variety of reasons and savings goals. You can use it as your emergency fund, where you stash your cash for a rainy day, for example. Perhaps you want to use a high-interest savings account to boost your savings toward your next vacation or your kid’s college education.

Luckily, many institutions allow you to have several savings accounts at a time, meaning you can save toward separate goals simultaneously without ever getting your wires crossed.

Should I get an online savings account?

An online savings account is your best bet for obtaining the highest interest rate available. Online banks lack the costs associated with maintaining brick-and-mortar branches, and they generally pass the savings onto you in the form of better interest payouts. And like we’ve said, if your money is going to sit in an account, you might as well make it worth your while by growing it at a competitive rate.

Online savings accounts generally feature superior accessibility. Online banks are laser-focused on offering the best possible and most user-friendly app experiences. There’s often 24/7 customer service, and they tend to provide very good ATM access. When shopping for the best savings account to suit your needs, make sure you include a good mix of online banks offering high yields, brick-and-mortar banks and credit unions in your search.

What impacts savings rates?

Institutions typically alter their rates in response to changes in market interest rates, which are in turn driven by the federal funds rate set by the Federal Reserve. The federal funds rate influences the rates banks lend money to each other. When the Fed increases the federal funds rate, financial institutions respond by increasing the interest rates they offer on deposit accounts. When the federal funds rate falls, interest rates decrease.

If you’re not keen on tracking the federal funds rate, changes to the APY on your savings account may come as a surprise. Luckily, 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. Online savings accounts outperform most brick-and-mortar rates any day.

What are the best banks for high-yield online savings accounts?

Here’s a summary of our top picks:

  • 0.80% APY – Marcus by Goldman Sachs
  • 0.75% APY – Synchrony Bank
  • 1.00% APY – American Express National Bank
  • 0.80% APY – Capital One
  • 1.00% APY – Ally Bank
  • 0.80% APY – Barclays Bank
  • 1.04% APY – Vio Bank
  • 0.90% APY – Axos Bank
  • 1.00% APY – Live Oak Bank
  • 1.00% APY – Citizens Access
  • 0.95% APY – Discover
  • 0.90% APY – BrioDirect
  • 1.20% APY – First Foundation Bank
  • 1.05% APY – Nationwide by Axos Bank
  • 1.05% APY – Fitness Bank
  • 1.01% APY – SFGI Direct
  • 1.01% APY – Prime Alliance Bank
  • 1.00% APY – Comenity Direct
  • 1.00% APY – ConnectOne Bank
  • 6.17% APY – Digital Federal Credit Union

Savings Account FAQs

There is nothing inherently unsafe about a high-yield savings account. As long as you make sure you’re depositing your money into an FDIC-insured bank or NCUA-insured credit union, your money will be insured up to legal amounts in case your institution fails.

You may also want to double check an institution’s security measures before signing up for an account. Check whether their website and information is protected by encryption and firewalls. Reputable institutions will also include anti-virus and anti-fraud measures. Other protections include biometric logins (fingerprints or face match), two-factor verification and security questions.

There is often not much difference between high-interest savings accounts and money market accounts. A money market account is a type of savings account that also tends to have higher rates than traditional savings accounts.

Some money market accounts set themselves apart by offering a debit or ATM card and/or check-writing capabilities. These accounts offer further accessibility to your money. However, money market accounts still fall under the six-limit “convenient” transaction requirement, like regular savings accounts.

High-yield savings accounts are taxed like regular savings accounts. However, your earnings from a high-interest savings account are more likely to be taxed, as you are more likely to be earning more in that account than a traditional low-rate account.

Savings account earnings are taxed if you make $10 or more. Regardless of your earnings, your institution should send you and the IRS a copy of Form 1099-INT, which details the interest you’ve earned in a year. Even if you don’t receive that form, the IRS will, and they will expect you to report your interest income on your tax return.

If you earn $1,500 or more in interest income in a year, you will also need to detail those sources of income on Schedule B of Form 1040.

Thanks to the Federal Reserve’s Regulation D, you can withdraw up to six times per statement cycle from a high-yield savings account, like any other savings account. This includes pre-authorized and automatic withdrawals and transfers, and transfers made by debit card, check or other similar ways.You can get around this limit by performing “less convenient” withdrawals, like those made in person at the bank or ATM. Exceptions to the rule also include withdrawals and transfers requested by mail and those initiated over the phone if you receive the withdrawal as a mailed check.

Online banks don’t incur the costs of maintaining brick-and-mortar branches. These costs include rent, building maintenance, staff salaries and the cost of keeping physical cash safe. Without these expenses weighing them down, online banks reap big savings — savings they then pass on to their customers in the form of high interest rates.

June savings index: Slight drop following May surge

Just under 40% of consumers added money to their savings account in June, a four percentage-point decrease from May but still higher than March and April levels. More concerning, however, is the fact that the number of Americans who said they’re saving for emergencies dropped from 35% in May to just 21% in June.

Every month, MagnifyMoney surveys more than 1,000 consumers to find out whether or not they added money to their savings account and what they’re currently saving for. The results comprise our monthly savings index, which first began in October 2019.

38% of consumers increased savings in June

  • The percentage of consumers who increased their savings dropped to 38% in June from 42% in May. Last month’s rise was due in part to economic impact payments hitting many Americans’ bank accounts, and it’s still promising that nearly 4 in 10 consumers continued adding to savings this month, too.

Number of Americans saving for emergencies declined

  • While the reduction in the number of consumers who added to savings was minimal month-over-month, the decline in those saving for emergencies was much more pronounced. In June, 21% of Americans said they were saving money for emergencies. That number was 35% in May and 33% in April. Although the decrease could mean most consumers now have sufficient funds for emergencies, that’s unlikely. For one, a May MagnifyMoney survey found more than a quarter of Americans do not even have $1,000 saved.Still, emergencies are among the top things consumers are saving for, in addition to general savings, vacations, retirement and new cars.

Generational differences

  • Some age groups are saving more than others, namely millennials and Gen Xers. Among all generations, they had the highest percentage of respondents indicate they added money to savings in June, at 40% and 41%, respectively. Gen Z was a bit lower at 34%, while baby boomers (32%) and members of the silent generation (12%) were least likely to save. On the other hand, consumers aged 55 and older were more likely than younger age groups to say they didn’t add or remove money from savings.

Different age groups also vary in the things they’re saving up for. There are the top things Americans are saving up for broken out by generation:

  • Gen Z: college (22%), general savings (22%), new car (18%)
  • Millennials: general savings (27%), emergencies (22%), vacation (20%)
  • Gen Xgeneral savings (24%), emergencies (22%), retirement (18%)
  • Baby boomers: general savings (27%), retirement (25%), emergencies (24%)
  • Gen Z: general savings (41%), retirement (18%), emergencies (18%)

Major savings gender gap remains

  • Each month, a major savings gender gap appears, and June is no different. Just 31% of women added money to savings this month, compared to 45% of men.Even more troubling, more than a quarter of women don’t have any money saved at all, while just 16% of men said the same.Women traditionally are paid less than men, and recent data from the Bureau of Labor Statistics shows women are experiencing more pandemic-related job losses than men.

Workers whose jobs were impacted by the pandemic turn to savings fund to cover expenses

  • Consumers experiencing income loss due to the coronavirus pandemic are tapping into their savings accounts at a much higher rate than those whose job was not impacted. Nearly a third (30%) of Americans who were either laid off/furloughed or saw a reduction in salary/hours took money out of savings in June, versus just 11% of consumers who did not have any changes in wages.Interestingly, there was not much of a difference in terms of who added money to savings.As the additional weekly unemployment stipends are slated to run out next month, we may see even more consumers deplete their savings to make ends meet.

Why some aren’t saving

We also asked those who weren’t able to save money in June about the circumstances that kept them from doing so. Here’s what they said (some chose multiple reasons):

  • Have too many expenses this month (36%)
  • Don’t make enough money to save (35%)
  • Already have enough money in savings (17%)
  • Other (12%)
  • Job loss due to the coronavirus (11%)

It’s worth noting that every dollar added to savings makes a difference. Even adding just $5 per week adds up over time, especially if you’re able to open a high-yield savings account offering a competitive interest rate.

Survey Methodology

MagnifyMoney commissioned Qualtrics to conduct an online survey of 1,020 Americans, with the sample base proportioned to represent the overall population. The survey was fielded June 12-15, 2020.

We defined generations as the following ages in 2020:

  • Gen Z are ages 18 to 23
  • Millennials are ages 24 to 39
  • Gen X are ages 40 to 54
  • Baby boomers are ages 55 to 74
  • Silent Generation are ages 75 and older

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The Best Airline Credit Cards — August 2020

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners. This site may be compensated through a credit card partnership.

Written By

best airline credit cards
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For those who travel regularly, the chance to earn more loyalty miles with an airline rewards credit card can be tempting. Airline cards offering a generous sign-up bonus and more miles per dollar spent on certain purchases can add miles to your account, resulting in free flights or seat upgrades. And if you choose the right card, you can also get sweet travel perks, such as priority boarding and free checked luggage.

Most airline credit cards reward frequent flyers for their loyalty, along with enticing others who might not yet favor any particular airline. Below are our picks for the best credit cards for the top six U.S. airlines.

In this guide, we’ll cover:

Best credit card for United Airlines

United ClubSM Card from Chase Bank

United ClubSM Card from Chase Bank

The information related to United ClubSM Card from Chase Bank has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

United ClubSM Card from Chase Bank

Regular Purchase APR
18.24% to 25.24% Variable
Annual fee
$450
Rewards Rate
Earn rewards faster with 1.5 miles per $1 spent on purchases.

What we like about it:

  • Earn 50,000 bonus miles after you spend $3,000 on purchases in the first 3 months from account opening. But don’t get too excited about this offer if you’ve nabbed a bonus from this card before — this offer is not available to either current cardmembers of this credit card, or previous cardmembers of this credit card who received a new cardmember bonus for this credit card within the last 24 months.
  • The United ClubSM Card from Chase Bank is the only one that gives you a full membership into the United ClubSM. This means you can visit any United lounge at the airport regardless of what airline you are flying, and some Star Alliance® lounges when you fly on those airlines.
  • Earn rewards faster with 1.5 miles per $1 spent on purchases.
  • You also get great perks when flying aboard United, including Premier Access® travel services and free first and second checked bags — that can easily shave a couple hundred bucks off your cost of flying.

Who is the card best for?

If United is your primary airline and you plan to take more than one international trip every year, the United MileagePlus® Club Card is your best bet. Getting United ClubSM membership from the card is $100 cheaper than buying membership without top tier status. And getting two checked bags on United and some lounge benefits when flying Star Alliance airlines can add up to good long-term value.

Best credit cards for American Airlines

CitiBusiness®/ AAdvantage® Platinum Select® World Mastercard®

CitiBusiness®/ AAdvantage® Platinum Select® World Mastercard®

The information related to CitiBusiness®/ AAdvantage® Platinum Select® World Mastercard® has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

CitiBusiness®/ AAdvantage® Platinum Select® World Mastercard®

Regular Purchase APR
15.99% - 24.99% (Variable)
Annual fee
$99, waived for first 12 months
Rewards Rate
Earn 2 AAdvantage® miles per $1 spent on eligible American Airlines purchases. Earn 2 AAdvantage® miles per $1 spent on purchases at telecommunications merchants, cable and satellite providers, car rental merchants and at gas stations

What we like about it:

  • Earn 70,000 American Airlines AAdvantage® bonus miles after spending $4,000 in purchases within the first 4 months of account opening.
  • In addition to offering a first checked bag free on domestic American Airlines® itineraries and preferred boarding on American Airlines® flights, this is the only American Airlines co-branded offer from Citi that offers bonus points on everyday spending.
  • Earn 2 AAdvantage® miles per $1 spent on eligible American Airlines purchases. Earn 2 AAdvantage® miles per $1 spent on purchases at telecommunications merchants, cable and satellite providers, car rental merchants and at gas stations. Terms apply.

Who the card is best for?

If you have a small business and American is your primary airline, this card could earn you the most AAdvantage® miles over time. Earning 2 AAdvantage® miles on telecommunications, car rental merchants, and gas stations are among the most generous categories for airline cards, granting many opportunities to earn bonus miles at the places you spend money weekly.

AAdvantage® Aviator® Red World Elite Mastercard®

AAdvantage® Aviator® Red World Elite Mastercard® from Barclays

The information related to AAdvantage® Aviator® Red World Elite Mastercard® from Barclays has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

AAdvantage® Aviator® Red World Elite Mastercard® from Barclays

Regular Purchase APR
17.49% - 26.49% Variable
Annual fee
$99
Rewards Rate
Earn 2X AAdvantage® miles on eligible American Airlines purchases, 1X AAdvantage® miles on all other purchases.

What we like about it:

  • Earn 60,000 bonus miles after making your first purchase in the first 90 days and paying the annual fee.
  • A free checked bag free for the primary cardholder and up to four companions on domestic flights operated by American Airlines.
  • Preferred boarding for the primary cardholder and up to four companions on the reservation for all American Airlines-operated flights.
  • Receive a 25% statement credit on in-flight food and beverages when using the card.

Who the card is best for?

If you are loyal to American Airlines, the AAdvantage® Aviator® Red World Elite Mastercard® is a good fit. With the bonus miles, free checked luggage and the in-flight discount, using this as your primary credit card could yield good value over time if you fly American Airlines regularly.

Best credit cards for Alaska Airlines

Alaska Airlines Visa® Credit Card

What we like about it:

  • $100 statement credit, 40,000 bonus miles and Alaska's Famous Companion Fare™ from $121 ($99 fare plus taxes and fees from just $22) after you make $2,000 or more in purchases within the first 90 days of opening your account.
  • Earn unlimited 3 miles for every $1 spent on eligible Alaska Airlines purchases and unlimited 1 mile for every $1 spent on all other purchases.
  • Every account anniversary date, earn Alaska’s Famous Companion Fare™. Buy one ticket and get a second one for just taxes and fees ($99 base fare plus applicable taxes and fees from $22 depending on your flight itinerary) after you make $1,000 or more in purchases within the first 90 days of your account opening.
  • Alaska Airlines® Mileage Plan™ miles are among the most flexible available since they can be used on more than a dozen different airlines.

Who the card is best for?

Even if you don’t live in a city served by Alaska Airlines, this card is good for flexible rewards across carriers. Use your Alaska Airlines Mileage Plan awards to more than 900 destinations around the world on Alaska Airlines and 17 global carriers including American Airlines, British Airways, Emirates, Japan Airlines, Qantas and Singapore Airlines. This card’s combination of a lower annual fee and award availability across multiple airlines makes it a good option for those who might not have considered Alaska Airlines previously.

Best credit card for JetBlue

JetBlue Card

JetBlue Card from Barclays

The information related to JetBlue Card from Barclays has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

JetBlue Card from Barclays

Regular Purchase APR
17.49%, 21.49% or 26.49% Variable
Annual fee
$0
Rewards Rate
3X points on JetBlue purchases, 2X points at restaurants & grocery stores, 1X points on all other purchases.

What we like about it:

  • Earn 10,000 bonus points after spending $1,000 on purchases in the first 90 days.
  • 3X points on JetBlue purchases, 2X points at restaurants & grocery stores, 1X points on all other purchases.
  • 50% discount on in-flight cocktail and food purchases.
  • Earn 3 TrueBlue points per dollar spent at Amazon.com when you shop onboard your JetBlue flight using Fly-Fi® and the card.
  • Pool points together as a family, which means all miles earned by your household can go toward JetBlue award flights faster.

Who the card is best for

If you travel regularly on JetBlue, this card, with its $0 annual fee is a good option because it helps you earn real miles towards discounted travel. If you are just entering the world of airline miles and live near a JetBlue airport, the JetBlue Card is a great beginner option. With a $0 annual fee and 2X points at restaurants and grocery stores, this card can help you earn real miles towards discounted travel. This card is also great for those who use JetBlue as a secondary airline. Because there is a $0 annual fee, you won’t have to worry about justifying rewards by holding this card.

Best credit card for Delta

Delta SkyMiles® Gold American Express Card

Delta SkyMiles® Gold American Express Card

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Delta SkyMiles® Gold American Express Card

Annual fee
$0 introductory annual fee for the first year, then $99.
Rewards Rate
Earn 2X Miles on Delta purchases, at restaurants worldwide and at U.S. supermarkets and 1X Mile on all other eligible purchases.
Regular Purchase APR
15.74%-24.74% Variable

What we like about it:

  • Earn 35,000 bonus miles after you spend $1,000 in purchases on your new Card in your first 3 months.
  • This card also offers a generous checked luggage fee waiver for cardholders: The fee waiver is available to those traveling on the same reservation as the primary card member, with a maximum of nine waivers per reservation.
  • Earn 2X Miles on Delta purchases, at restaurants worldwide and at U.S. supermarkets and 1X Mile on all other eligible purchases.
  • The card also offers priority boarding for cardholders.
  • Terms apply.

Who the card is best for?

If you fly Delta regularly with a family or business colleagues, this is the best card you can hold that balances the annual fee with good benefits. The checked luggage fee waiver covers more companions on the same itinerary than any other card, while the priority boarding allows you to get access to overhead bin space before other flyers. Plus, you can try out the card without a large financial commitment, since there’s a $0 introductory annual fee for the first year, then $99.

But if Delta is the only airline you fly, you may consider getting a credit card with a higher annual fee that offers more benefits and opportunities to earn Medallion Qualifying Miles.

To see rates & fees for the Delta SkyMiles® Gold American Express Card, please click here.

Best credit card for Southwest Airlines

Southwest Rapid Rewards® Priority Credit Card

Southwest Rapid Rewards® Priority Credit Card

The information related to Southwest Rapid Rewards® Priority Credit Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Southwest Rapid Rewards® Priority Credit Card

Regular Purchase APR
15.99% - 22.99% Variable
Annual fee
$149
Rewards Rate
2 points per $1 spent on Southwest® purchases and Rapid Rewards® hotel and car rental partner purchases. 1 point per $1 spent on all other purchases.
Credit required
excellent-credit

What we like about it:

  • Earn 40,000 points after you spend $1,000 on purchases in the first 3 months your account is open.
  • 2 points per $1 spent on Southwest® purchases and Rapid Rewards® hotel and car rental partner purchases. 1 point per $1 spent on all other purchases.
  • The chance to earn 1,500 tier qualifying points that help you earn A-List elite status every time you spend $10,000 on the card.
  • Annual $75 statement credit
  • 7,500 bonus points every card anniversary
  • 20% statement credit when you use the card for in-flight drinks, messaging, movies and Wi-Fi.
  • Four passes for upgraded boarding every year.

Who the card is best for

For loyal Southwest Airlines customers who want a co-branded airline credit card that comes with the best perks, the Southwest Rapid Rewards® Priority Credit Card, unveiled in July 2018, is a popular one to consider. You’ve got to love a card that helps you earn elite status. While anyone flying on this airline gets two free checked bags, this card gives you four priority boarding passes a year, along with an in-flight credit every time you use the card to pay for drinks and Wi-Fi.

There’s also the chance to earn Southwest’s popular Companion Pass. Once you fly 100 qualifying one-way flights or earn 125,000 qualifying points in a calendar year, you can bring a companion — for free — on every one of your flights for the following full calendar year, plus the remainder of the year in which you earned the pass.

Best credit union airline card

Visa® Platinum Rewards Credit Card from American Airlines CU

Visa® Platinum Rewards Credit Card from American Airlines CU

Visa® Platinum Rewards Credit Card from American Airlines CU

Regular Purchase APR
10.75% - 16.49% Variable
Annual fee
$0
Rewards Rate
Earn one Connection Point for every dollar spent on signature based purchases!

What we like about it:

  • Earn one Connection Point for every dollar spent on signature based purchases!
  • Redeem the card’s Connection Points for gift cards, travel on any airline, hotels, rental cars, cruises and brand–name merchandise.
  • If you also have an American Airlines Credit Union Visa debit card, you’ll also earn Connection Points when making purchases on it.
  • There are no foreign transaction fees.

Who the card is best for:

You must be a professional in the air transportation industry or related to someone who is in order to become a member of the AACU. That includes those who work for the Transportation Security Administration, the FAA, cargo carriers, air courier services, airport baggage handling, commercial airport janitorial, aircraft cleaning, maintenance, servicing, and repair services, airport runway maintenance services and on-board airline food services.

Once approved, you’re eligible to apply for the card. If you’re looking for a card where you can use your points for multiple airlines instead of just one single airline, this card could be great for you. However, you can earn better rewards if you opt for an airline credit card tied to a single airline, such as American, as those typically offer better rewards and more travel-related perks.

Learn More

To find the best airline credit cards, we looked at several different features. First, we looked at which cards had specific airline partnerships, not just perks for specific airlines. From there, we narrowed down our picks to focus on non-premium cards, so this article could be more accessible. Finally, we looked for which cards had the best rewards programs, balancing it against annual fees and the APRs on balances.

As a secondary measure, we looked at all the other perks that come with a card, including free checked bags, no foreign transaction fees, and rental car and trip insurances. These benefits can help to offset the annual fee, or provide you even more value than a more stripped-down card.

Although earning airline miles sounds great for free travel, there are situations that can prevent you from flying. With all credit cards, you should watch out for these downsides:

  • Points devaluation: Miles aren’t a good long-term investment, because their value is constantly subject to change. If you aren’t planning to use your miles regularly, you could be better served with a cash-back credit card.
  • Hidden fees: Even when using credit card miles, hidden fees for redeeming miles, cancelling trips, or transferring miles to other people can cut your overall value quickly. Be sure to understand all the fees you may face before you decide if a card is right for you.
  • Blackout dates and reward restrictions: Airlines often place restrictions on the number of seats available on flights, while some dates are completely closed off for awards and companion passes. Unless you can use your airline miles on the dates you want, an airline credit card may not be your best option.
  • Partner carrier rules: Although you can book flights with miles on partner airlines, their prices are often higher and come with more restrictions on dates and routes. Before you commit to one airline program, be sure you understand how to use miles for partner flights — both the number required and special rules for using them.

Extra perks are all well and good, and airline credit cards can be rewarding for many frequent flyers, but they aren’t the best choice for everyone.

If you are thinking about applying, ask these four questions first:

  1. Am I loyal to one airline?
    If you primarily fly one airline and want to maximize your miles towards free flights, an airline credit card could make sense. If not, consider a card that earns bank points or cash back instead.
  2. Do I want miles specifically for flying?
    If your goal is to fly more often for a lower price, airline credit cards can help you achieve that plan by earning miles for your everyday spending. Most miles can’t be used for anything outside flying, however, so it’s important to carefully consider how many miles you need for a flight.
  3. Are frequent flyer perks right for me?
    Most credit cards offer a number of airport bonuses, including priority boarding, checked luggage fee waivers and lounge passes. If you find value in checking luggage for free or stopping at a lounge for a beverage, then an airline credit card is the right choice for your spending.
  4. Will I get the value of the credit card annual fee in return every year?
    Many airline credit cards come with annual fees. If your airline rewards (from perks and free flights) add up to more than the annual fee, then you’re getting a good value from your credit cards.

MagnifyMoney has plenty of options to help you find the right credit card for you. If you want to compare airline credit cards on your own, consider the following:

  • Point values: Not all miles are equal in value. It’s important to understand how many miles you need to take a flight, and if an airline credit card will help you get there.
  • Foreign transaction fees: While most airline credit cards offer no foreign transaction fees, many charge fees of 3%. If you plan on traveling abroad, a card with no foreign transaction fees is a must.
  • Free checked bags: Although most cards come with one free checked bag for cardholders, high-end cards may allow two free checked luggage pieces. Additionally, the number of available pieces varies between cards and airlines, with some offering up to nine people on the same itinerary.
  • Extra benefits: Annual free lounge passes and priority boarding are two of the luxuries offered to most airline credit card holders. In turn, these perks can help you justify the value of credit cards.
  • Point flexibility: Although you often can’t use miles for hotel rooms or rental cars, some programs allow more flexibility than others. If you want to use your miles for other rewards, be sure to understand how much those values would cost.

The information related to Alaska Airlines Visa® Credit Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

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.

Advertiser Disclosure

Best of

The Best Business Savings Account Rates in 2020

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

Written By

Reviewed By

Are you looking to start or grow a business? Opening a business savings account can offer federal protection for the funds you deposit (up to $250,000) and provide a source of liquidity should inevitable expenses arise. You can earn interest while setting aside money for capital improvement or income taxes. A commercial savings account can add credibility to your business, arm you with a business debit card and help your cash flow.

The best way to choose an account that fits your needs is to start by comparing the annual percentage yield (APY) offered by banks and credit unions. Then look for benefits that might make the account attractive based on your needs. Is there a monthly maintenance fee or a minimum deposit to open? Does the bank provide ample access to ATM and online account services?

Deciding which business savings account is best for your needs can be a difficult process, but hopefully this roundup of our picks for best savings accounts will help give you a head-start.

The best business savings account rates — July 2020

InstitutionAPYMinimum balance amount
First Internet Bank 0.81%None
Axos Bank1.06%$25,000
Capital One0.65%None
Live Oak Bank 0.80%None
Prime Alliance Bank0.60%$1
Presidential Bank (Maryland) 0.50%$5,000
Financial Resources Federal Credit Union0.40%$10,000
Premier America Credit Union0.30%$250
TAB Bank0.25%$25
Technology Credit Union0.20%$25

Source: Deposit Accounts, July 09, 2020

1. First Internet Bank, 0.81% APY, No minimum balance, ATM services

First Internet Bank offers an FDIC-insured savings option for businesses with a good 0.81% APY on any balance amount. You only need $100 to open the account. There is no minimum balance to deposit or maintain the account to earn the APY.

While it only costs $100 to open your business savings account and you must maintain an average daily balance of $4,000 to avoid a $5 monthly maintenance fee.

Unlimited deposits can be made each month and six transfers or withdrawals are allowed without charge. Keep in mind that the FDIC only insures up to $250,000. So, if you deposit more than $250,000 into the business savings account, the excess deposit amount will not be insured by the FDIC.

The First IB ATM cards are offered to sole proprietors only. There is no charge for ATM transactions or electronic statements. Founded in 1999 by the First Internet Bancorp, First IB offers remote banking in all 50 states.

Fine print: Only six preauthorized, automatic, PC, or telephonic transfers are allowed each month. This restriction is common among most of these institutions, however, First Internet Bank will charge you $5 per item if you go beyond the allotted six.

Restrictions on joining: none.

SEE DETAILS Secured

on First Internet Bank’s secure website

Member FDIC

2. Axos Bank: 1.06% APY, $25,000 minimum balance, ATM access

Axos Bank, formerly known as BofI Federal Bank offers one of the top APY rates in our nationwide survey of business savings accounts. The bank’s Business Premium Savings Account with a high-yield 1.06% APY can be opened with a $25,000 minimum deposit.

There is no monthly maintenance fee for the account and no average daily balance requirement.

Axos Bank also makes it easy to access your funds when you need it. Customers have ATM access to their accounts along with free online banking. However, ATM withdrawal limits are $1,010 per day and there’s a daily purchase limit of $5,000. BofI is an FDIC-insured bank based in San Diego and publicly traded online. Other products include Business Interest Checking and Business Money Market accounts.

SEE DETAILS Secured

on Axos Bank’s secure website

Member FDIC

3. Capital One, 0.65% APY, No minimum balance

Capital One is currently offering a business savings account with a 0.65% APY for new account customers. This account doesn’t have a minimum balance requirement and doesn’t come with any monthly fees.

While this account doesn’t come with ATM access, Capital One makes it easy to transfer funds to either another one of their accounts or a linked account of your choosing. You can easily set this up through their online banking platform or mobile app. Their mobile app also allows you to deposit checks. Keep in mind, however, that you’ll be limited to depositing $5,000 per month into the business savings account. You’ll also be limited to making six withdrawals per month due to Federal regulations.

Restrictions on joining: none.

SEE DETAILS Secured

on Capital One’s secure website

Member FDIC

4. Dedicated to Businesses: Live Oak Bank, 0.80% APY, No minimum balance

Live Oak Bank awards a 0.80% APY on its business savings account, which is eight times the national average. There is no minimum opening balance or deposit required to open a business savings account.

The business savings account is open to deposits of up to $5 million and is free of monthly maintenance fees. You may make up to 6 withdrawals from your Live Oak Bank Savings account per statement cycle, including pre authorized, automatic and telephone transfers. After that there’s a $10 fee per withdrawal. Live Oak Bank, established in 2008, holds assets of $2.12 billion.

The bank is in Wilmington, N.C., and is a member of the FDIC. Learn more about business savings at Live Oak Bank.

Small Print: The bank may verify credit and employment history at its discretion, meaning you may receive a pull against your credit report.

Restrictions on joining: none.

SEE DETAILS Secured

on Live Oak Bank’s secure website

Member FDIC

5. Prime Alliance Bank, 0.60% APY, $1 minimum balance

Prime Alliance Bank is currently offering a competitive APY of 0.60% for balances starting at just $1 for its Business Savings Account. If you have more cash to stash, though, you’ll be rewarded with an even higher APY. Balances between $100,000 and $199,999 earn an APY of 0.80% while balances of $200,000 or more earn an APY of 1.01%.

The Business Savings Account does not require any minimum balances, and it does not have any monthly maintenance fees. Additionally, Prime Alliance offers unlimited deposits and up to six transfers or withdrawals per month.

Restrictions on joining: none.

SEE DETAILS Secured

on Prime Alliance Bank’s secure website

Member FDIC

6. Presidential Bank (Maryland), up to 0.50% APY, $5,000 to open, ATM services

Presidential Bank’s Commercial Premier Savings account offers 0.50% APY for balances up to $35,000, making it a decent — if not extraordinary — bet for business owners.

Business customers are not required to maintain a minimum balance on the account in order to receive all ATM privileges. So long as you use one of their ATMs you won’t incur fees, but there is a $0.75 ATM fee for non-network ATMs. Free online banking, mobile banking and ATM card come with the account.

Established in 1985, Presidential Online Bank was one of the first lenders to offer online banking. Located in Bethesda, Md., it currently lists assets in excess of $550 million.

Restrictions on joining: none.

LEARN MORE Secured

on Presidential Bank’s secure website

7. Financial Resources Federal Credit Union, 0.40%APY, $10,000 to earn APY

Financial Resources Federal Credit Union offers a premium tiered rate account, dubbed its Business Purple Savings account. The sweet spot of this account applies to balances between $10,000 and $49,999, which rewards you with an APY of 0.40%. The rates for all of the tiers are as follows:

  • $0 – $499: 0.05%
  • $500 – $9,999: 0.35%
  • $10,000 – $49,999: 0.40%
  • $50,000 – $99,999: 0.50%
  • $100,000 and more: 1.00%

This account requires a Financial Resources Membership Savings account in the name of your business, with a minimum balance of $10.

Restrictions on joining: To join, you must also join the American Consumer Council or meet other eligibility requirements.

SEE DETAILS Secured

on Financial Resources Federal Credit Union’s secure website

NCUA Insured

8. Premier America Credit Union, 0.30% APY, $250 to open

Premier America Credit Union is currently offering an attractive rate of 0.30% on its Business Savings account. There is a required minimum deposit of $250 associated with this account. There are no minimum or maximum limits listed.

Premier America Credit Union has physical branches in California and Texas, but offers its products and services nationwide online.

Restrictions on joining: To join, you must also join the Thousand Oaks Alliance for the Arts or meet other eligibility requirements.

SEE DETAILS Secured

on Premier America Credit Union’s secure website

NCUA Insured

9. TAB Bank, 0.25% APY, $25 minimum to open

TAB Bank’s Business Savings account is currently featuring a decent APY of 0.25% with a low minimum deposit of just $25, and a low $1 minimum daily balance required to earn the APY. There is no maximum limit listed for its Business Savings account.

TAB Bank is based in Ogden, Utah, but offers its services and products to consumers nationwide online.

Restrictions to joining: None.

SEE DETAILS Secured

on TAB Bank’s secure website

Member FDIC

10. Technology Credit Union, 0.20% APY, $25 minimum to open

Technology Credit Union is currently offering an attractive APY of 0.20% on balances in its Business Savings account. There is a minimum balance requirement of just $25, which is also the minimum amount you’ll need to earn the APY. There are no monthly service fees.

To become a member of Technology Credit Union, you will need to open a Membership Savings Account with a minimum balance of just $25, which acts as your “share” in the credit union.

Restrictions on joining: Open a Membership Savings Account

SEE DETAILS Secured

on Technology Credit Union’s secure website

NCUA Insured

Learn more about business savings accounts

How we ranked the best business savings accounts

To come up with this list, we first used data from DepositAccounts.com, which tracks rates on a range of deposit accounts across thousands of banks in the U.S. Note: DepositAccounts is also owned by MagnifyMoney’s parent company LendingTree.com.

We eliminated any institutions that were given a health rating below a B by DepositAccounts. We also weeded out any credit unions that have very restrictive membership requirements. From there, we chose the top 10 business savings accounts with the highest APY. And lastly, all the banks on our list offer FDIC or NCUA insurance.

Business savings accounts vs personal savings accounts

Business and regular savings accounts may offer many of the same features ,such as 24/7 online banking, free electronic reporting, debit cards, fund transfers and ATM machines.

The trade-off in choosing a business account is that you’ll get services focused on business planning and spending in exchange for a less-desirable APY.

When you compare the interest earned on a business savings account with the best rates offered on savings accounts, it may not look like opening a business account is a wise strategy. The top business savings account APY right now is 1.40%. The top APY among personal savings accounts is 0.75% with no minimum deposit and ATM access. You can weigh the services, charges and minimum account fees between the top business and top personal savings accounts to decide which is best for you.

There are other benefits to offset any differences in earnings, particularly if your business is incorporated. It’s considered sound business practice to separate your personal saving and checking accounts from your business saving and checking accounts. A business account can help you manage cash flow, accounting, recordkeeping and working capital. At income tax time, separate accounts can help you differentiate business from personal expenses.

Paired with a business checking account, your business savings account can add professional branding, since all payments and correspondence with clients will bear your business name.

Or you can create savings in your business account to pay quarterly income taxes or purchase equipment.

Finally, business savings accounts are secure when you open accounts with banks and credit unions that are insured up to $250,000 per account by the FDIC or the NCUA.

North Shore Bank of Brookfield, Wis., says that a business savings account can boost your credit ratings and make it easier to obtain a business loan, since the lender can see you have an account dedicated to your company.

Choosing the right business savings account

When evaluating a financial institution for your business, there’s more than just finding a good APY.

Many of the banks on our Top 10 list look great on the APY front but carry fees that can eat into any of the returns you might make. Particularly, watch out for fees for ATM or bank withdrawals, monthly service fees and ATM fees.

The Small Business Administration (SBA) has identified the key factors to consider when searching for the right bank or credit union. These include:

  • Customer service reputation
  • Access to branches or no-surcharge ATMs
  • Benchmarks to have fees waived
  • Automatic FDIC insurance

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.