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The Best High-Yield Online Savings Accounts in January 2021

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.

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Online savings accounts are the future of savings, with high yields, little to no fees and convenient 24/7 access. Our top savings account picks yield an average interest rate of 0.60% APY, far higher than the national average of 0.05% APY (according to the FDIC). Choosing one of our accounts could multiply your yearly interest earnings by up to 16 times the national average, which is significantly higher than what you can expect at most local bank branches.

Our team of experts evaluated over 100 banks and credit unions to find the best high yield online savings account. We cross-referenced each of the key traits that customers look for in a high-yield savings account, including APY, minimum balance requirements and monthly fees. We considered accounts from industry leaders that have a proven track record of offering competitive savings rates based on pricing data from over the past five-plus years.

This list is refreshed every week to ensure it always features the best online savings accounts and we’re constantly adding new ones to our database as they become available. If you don’t find what you’re looking for today, make sure you check back regularly to see a new selection.

MagnifyMoney has been covering deposits, investing and personal finance for almost a decade. Our team collectively has over 50 years of experience covering and researching financial topics. Our ranks include former analysts from major banking institutions, financial news reporters who have been featured on major networks like Forbes, CNN and MarketWatch and economists and thought leaders from major media outlets like LendingTree and

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

1. High Rate: Synchrony Bank – 0.60% APY

  • Annual Percentage Yield (APY):0.60%
  • Minimum balance requirement: None
  • Monthly Fees: None
  • ATM Access: Yes
  • App Available: Yes
Overview: Synchrony Bank pays a healthy 0.60% 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.

2. High Rate: American Express National Bank – 0.50% APY

High Yield Savings Account from American Express National Bank


on American Express National Bank’s secure website

Partner Offer

Member FDIC

  • APY:0.50%
  • 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 0.50% variable Annual Percentage Yield (APY) as of 1/20/2021. 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.

3. High Rate: Marcus by Goldman Sachs – 0.50% APY

High-yield Online Savings Account from Marcus by Goldman Sachs


on Marcus By Goldman Sachs’s secure website

Member FDIC

  • Annual Percentage Yield:0.50%
  • 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 0.50% 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 0.50% 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.

4. Favorite Online Package: Ally Bank – 0.50% APY

Online Savings Account from Ally Bank


on Ally Bank’s secure website

Member FDIC

  • APY:0.50%
  • 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 0.50%.

Although Ally has dropped its rate significantly, along with its competitors, 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.

5. High Rate: Barclays Bank – 0.40% APY

Online Savings Account from Barclays


on Barclays’s secure website

Member FDIC

  • APY:0.40%
  • 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 0.40% 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: Capital One – 0.40% APY

  • APY:0.40%
  • 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 0.40% 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.

7. High Rate: SmartyPig – 0.80% APY

  • APY:0.80%
  • Minimum balance requirement: $0
  • Monthly Fees: None
  • ATM Access: No
  • App Available: Yes
Overview: SmartyPig is a division of Sallie Mae Bank, which provides the FDIC insurance for SmartyPig accounts. SmartyPig is accessible online and in its mobile app, which is available in both the Apple App Store and Google Play Store.

The SmartyPig savings account works with all balances. However, SmartyPig rewards lower balances with higher rates. Balances from $0.01 to $2,500 earn 0.80% APY; balances from $2,500.01 to $10,000 earn 0.80% APY; balances from $10,000.01 to $50,000 earn 0.55% APY; and balances over $50,000 earn 0.55% APY.

There is no monthly fee to worry about. The account allows you to create and save towards specific savings Goals, which is handy if you need to differentiate where your money is going. You can even set a target date to reach each goal to help you stay motivated and on track.

8. Unique Bank + High Rate: Fitness Bank – 0.70% APY

Fitness Savings (12,500+ Steps) from FitnessBank


on FitnessBank’s secure website

Member FDIC

  • APY:0.70%, 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 0.70% 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 0.60% (which is still a great APY). You’ll earn 0.50% 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 0.40%. Finally, if you take anywhere between 0 to 4,999 steps on average per day, you’ll only earn 0.25%.

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 0.70% 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. In addition to the Step Tracker app, Fitness Bank has a mobile banking app to manage your account.

9. High Rate: Nationwide by Axos Bank – 0.70% APY

My Savings from Nationwide by Axos Bank


on Nationwide By Axos Bank’s secure website

FDIC Insured

  • APY:0.70%, 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 0.70% 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 0.40% APY. The My Savings account does not charge a monthly service fee.

15. High Rate: SFGI Direct – 0.67% APY, $500 to open

  • APY:0.67%
  • Minimum balance requirement: $1
  • Monthly Fees: None
  • ATM Access: No
  • App Available: No
Overview: SFGI Direct currently offers a good rate of 0.67% 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.

SFGI Direct is Summit Community Bank’s online division 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. While SFGI Direct offers a good rate on the online savings account, its online experience is lacking; its website feels dated and they don’t appear to have a mobile banking app.

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:

  • 0.60% APY – Synchrony Bank
  • 0.50% APY – American Express National Bank
  • 0.50% APY – Marcus by Goldman Sachs
  • 0.50% APY – Ally Bank
  • 0.40% APY – Barclays Bank
  • 0.40% APY – Capital One
  • 0.80% APY – SmartyPig
  • 0.70% APY – Fitness Bank
  • 0.70% APY – Nationwide by Axos Bank
  • 0.67% APY – SFGI Direct

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.

74% of Americans don’t know online-only banks generally offer better savings rates

A new survey by MagnifyMoney has found that Americans largely misunderstand online savings accounts and the financial opportunities they offer.

Key findings

  • 74% of Americans don’t know online-only banks typically offer higher interest rates than traditional brick-and-mortar banks.

    • Additionally, 16% believe online-only banks charge more fees than traditional brick-and-mortar banks, which is generally false. To see our picks for the best high-yield online savings accounts, scroll up.
    • Another 11% believe money deposited in an online bank isn’t insured, which is most often untrue. All the online banks listed above — and more — are FDIC insured. Even many fintechs and neobanks offer FDIC insurance on their cash management accounts, via partner banks.
  • Just over 143.3 million consumers are likely missing out on higher interest rates for their savings by not banking with online-only financial institutions. Of those without an account, complacency is the primary reason, as 55% are satisfied with their brick-and-mortar bank.
    • Less than half of Americans (44%) have an account with an online-only bank. Their main reasons for the switch are better interest rates (30%), fewer fees (28%) and recommendation by a financial advisor (27%).
  • Who’s most likely to have an online-only savings account? Generation Xers (61%), those earning $75,000 or more a year (58%), college graduates (57%) and men (57%).
  • More than 44% of respondents fear online banking puts them at risk for data breaches, while 40% are concerned hackers will have an easier time accessing their data. Still, of those without an online bank, just 19% said it was because they don’t trust the bank with their money.


MagnifyMoney commissioned Qualtrics to conduct an online survey of 1,029 Americans, with the sample base proportioned to represent the overall population. The survey was fielded on Aug. 25, 2020.

For the purposes of our survey, generations are defined as the following ages in 2020:

  • Generation Z: 18 to 23
  • Millennial: 24 to 39
  • Generation X: 40 to 54
  • Baby boomer: 55 to 74
  • Silent generation: 75 and older

While Gen Z and the silent generation were surveyed — and their answers were factored into the overall percentage totals among all respondents — they were omitted from generational comparisons, due to the low sample size among both groups.


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Top 10 Jumbo Money Market Accounts

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

Jumbo money market accounts

What is a jumbo money market account?

When you’re saving money, you want to make sure you’re stashing it in the right place. Ideally, that will be in an account with a high rate of return. While savings accounts tend to offer a higher return than checking accounts, money market accounts — which are FDIC-insured up to $250,000, unlike money market funds — may yield an even higher rate of return.

That’s if you know where to find the best rates.

The money market accounts that offer the highest returns are known as jumbo money market accounts. In the past, these high-yielding accounts could have minimum initial deposits as much as $100,000, but today, you can get these higher rates with a much lower initial investment and sometimes there’s no minimum at all. For this round-up, we included accounts that required a minimum deposit of $25,000 and up.

In this roundup, we’ll explore the top rates.

UFB Direct, 0.20% APY, $25,000 Minimum Deposit to earn APY

UFB Premium Money Market - New Money from UFB DirectWhile you only need a minimum deposit of $5,000 to open an account with UFB Direct, you’ll need to have a minimum balance of $25,000 to earn the 0.20% APY. If you balance is less than $25,000, you’ll end up earning an APY of 0.10%.

This account does come with a $10 monthly fee, but if you have an average daily balance of $5,000 or more in the account, UFB Direct will waive the fee. Checks and a Visa® Debit Card are available upon request. There is also a mobile banking app that will allow you to conveniently manage your account on-the-go. All deposits held with UFB Direct are FDIC-insured.

UFB Direct is an online bank and a division of Axos Bank The overall company has acquired over $9 billion in assets.


on UFB Direct’s secure website

Member FDIC

Customers Bank, 0.75% APY, $25,000 minimum deposit

Ascent Money Market - Online Only (New Money) from Customers Bank Customers Bank’s Ascent Money Market Savings Account is currently offering an impressive rate of 0.75% APY, launching it to the top of our list. In order to earn the high APY, though, there is a minimum deposit required of $25,000, and it’s worth noting that balances below $25,000 do not earn interest. This rate is only available for new money, and is only available for online accounts.

The Ascent Money Market account has no minimum balance fee, but withdrawals and transfers are limited to six per monthly statement cycle. Interest for this account is compounded and posted to your account monthly. Customers Bank is a Pennsylvania-based bank with locations also in New York and New Jersey.


on Customers Bank’s secure website

Member FDIC

Gold Coast Bank, 0.75%c APY, $50,000 minimum to earn APY

Money Market Account from Gold Coast Bank Located in Chicago, Gold Coast Bank is currently offering a standout rate of 0.75% on money market account balances of at least $50,000. There is a minimum opening deposit of $5,000 required for this account, and balances below $50,000 will earn a lower APY.


on Gold Coast Bank’s secure website

Member FDIC

CFG Bank 0.68% APY, $25,000 minimum to earn APY

CFG High Yield Money Market - New Money from CFG BankMaryland-based bank CFG Bank is currently offering the highest APY on a jumbo money market account. The Online CFG High Yield Money Market account comes with a 0.68% APY.

This account requires a $1,000 minimum deposit to open. However, you’ll need a minimum daily balance of at least $25,000 to earn the 0.68% APY, and only new funds are eligible


on CFG Bank’s secure website

FDIC Insured

Veridian Credit Union, 0.65% APY, $100,000 minimum to earn APY

Premier Money Market from Veridian Credit Union Veridian Credit Union’s tiered money market account is currently featuring a robust rate of 0.65% on funds between $100,000 and $249,999. If you have at least $250,000 to deposit, you could score an even higher rate of 0.80% APY.

Membership to Veridian Credit Union is open to anyone who opens a Member Equity Savings Account for $5.


on Veridian Credit Union’s secure website

NCUA Insured

Federal Savings Bank, 0.60%, $100,000 minimum to earn APY

Money Market from The Federal Savings Bank Federal Savings Bank boasts a noteworthy APY of 0.60% on balances of $100,000 or greater for its money market account. A minimum deposit of $1,000 is required to open this account, and balances below $100,000 will earn a lower APY. Interest for this account is compounded and credited on a monthly basis.

Headquartered in Chicago, Federal Savings Bank offers its products to consumers nationwide, online.


on The Federal Savings Bank’s secure website

Member FDIC

Premier America Credit Union, 0.60% APY, $100,000 minimum to earn APY

Money Market Savings from Premier America Credit UnionPremier America Credit Union boasts a competitive, tiered-rate money market account, rewarding depositors with big balances. All of the rates for its tiered money market are as follows:

  • $2,500-$24,999: 0.40%
  • $25,000-$49,999: 0.50%
  • $50,000-$99,999: 0.50%
  • $100,000-$249,999: 0.60%
  • $250,000-$499,999: 0.65%
  • $500,000+: 0.70%

Membership to Premier America Credit Union is open to anyone who also joins the Thousand Oaks Alliance for the Arts.


on Premier America Credit Union’s secure website

NCUA Insured

State Department FCU, 0.60% APY, $100,000 minimum to earn APY

Premiere Money Management Shares from State Department Federal Credit Union State Department FCU is currently offering a generous APY of 0.60% on its Premier Money Market account for balances of at least $100,000. A balance of $2,000 is required to earn any dividends for this account.

Membership to State Department FCU is open to anyone who also joins the American Consumer Council.


on State Department Federal Credit Union’s secure website

NCUA Insured

Ideal Credit Union, 0.55% APY, $100,000 minimum to earn APY

High Yield Money Market from Ideal Credit Union Ideal Credit Union’s tiered High Yield Money Market account currently boasts an impressive0.55% APY on balances between $100,000 and $24,999.99. There is a minimum of $25,000 required to open this account, and while lower balances earn lower APYs, if you have a balance over $250,000 you’ll earn a higher APY of 0.70%.

Located in Minnesota, Ideal Credit Union opens its membership to anyone who makes a one-time donation of $5 to the John D. Miller Foundation.


on Ideal Credit Union’s secure website

NCUA Insured

iGObanking, 0.50%, $25,000 minimum to earn APY

iGOmoneymarket - New Money Only from iGObanking Online bank iGObanking is currently offering a competitive rate of 0.50% on funds of at least $25,000 in its iGOmoneymarket account. This account allows you to make up to six transfers per month, and allows you to set up automatic monthly transfers from your checking account. There are no monthly maintenance fees associated with this account.


on IGObanking’s secure website

Member FDIC

How these jumbo money market accounts’ rates compare with regular money market rates

Jumbo money market accounts are typically called jumbo because they require a significant deposit to earn the top rate. You may have noticed that many of these accounts do not necessarily have the label “jumbo” attached to them. This is because with the advent of online banking, more and more financial institutions are passing along the savings they incur from not having to maintain brick-and-mortar locations on to their customers via higher returns on products like money market accounts.

For that reason, you’ll notice that many of the highest-yielding accounts on this list can also be found on our Best Money Market Rates & Accounts lineup.

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The Best 6-Month CD Rates in January 2021

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.

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Short-term certificate of deposit (CD) accounts offer investors a safe opportunity to squirrel away money for a future expense. If you’re looking for a brief solution for storing your cash and want to earn more interest than a typical savings account will offer, a 6 month CD can make a lot of sense. (It’s also a good place to start if you’re building a CD ladder.)

Using information from, database of offerings at more than 17,100 banks and credit unions, we found the five banks and five credit unions with the top 6-month CD rates. If there was a tie, we chose the institution with the smaller minimum deposit requirement. The national average APY on 6-month CDs (among banks and credit unions) is 0.28%, according to the database. These options outperform that average by a long shot. (You may also want to view our picks for the overall best CD rates.)

Banks with the best 6-month CD rates

As of January 2021
All rates expressed in annual percentage yield (APY) unless otherwise stated.

1. Continental Bank — 0.60% APY, $1 minimum deposit

6 Month High Yield CD from Continental Bank To open this Continental Bank 6-month CD, you’ll need to go through SaveBetter, which manages the bank’s online products (as it does for a selection of other banks as well). Unlike most CDs, you need just $1 to open. Interest compounds daily and is paid monthly.

The CD will not renew automatically at maturity. You can make one withdrawal seven days after opening, but you will lose 90 days’ simple interest on the principal at the rate in effect.

Continental Bank, founded in Salt Lake City in 2003, is primarily a bank for small and medium-sized businesses. It offers consumer rates to anyone through the SaveBetter platform, with which you will need to open an account to take advantage of these rates.

2. Quontic Bank — 0.60% APY, $500 minimum deposit

6 Month CD from Quontic Bank With at least $500, you can fund your high-rate 6-month CD by transferring money from another Quontic Bank account or an account at another bank, or by making an ACH transfer or mailing a check. Interest is compounded daily and credited to your account each month.

Quontic Bank must approve any request to withdraw funds before maturity. If approved, Quontic will close your CD and assess a penalty equal to the interest for the full length of the 6-month term.

Quontic is a digital bank with headquarters in New York and one physical branch, located in Astoria, N.Y.

3. iGObanking — 0.55% APY, $1,000 minimum deposit

6 Month iGOCD from iGObanking Open an iGOcd® for as little as $1,000 to earn this high APY. Once the CD matures, you can pick your new term and add additional funds if you want. You can also opt to transfer your interest at maturity into any iGObanking account. If you withdraw funds before then, you’ll give up 3 months’ simple interest on the amount withdrawn as a penalty.

iGObanking is an online division of FDIC-insured Flushing Bank. iGObanking offers a range of products and accounts that you can open online.


on IGObanking’s secure website

Member FDIC

4. DollarSavingsDirect — 0.55% APY, $1,000 minimum deposit

6 Month CD from DollarSavingsDirect DollarSavingsDirect offers a select few CDs, including its high-yield 6-month CD which requires $1,000 to open. Interest is compounded daily and credited monthly. It’s best to avoid an early withdrawal, as you’ll lose 90 days’ interest whether earned or not.

DollarSavingsDirect is an online banking division of Emigrant Bank, which was founded in 1850.


on DollarSavingsDirect’s secure website

Member FDIC

5. TAB Bank — 0.40% APY, $1,000 minimum deposit

6 Month CD from TAB Bank TAB Bank requires a minimum deposit of $1,000 to open this 6-month CD. Interest is compounded daily, but watch out for early withdrawal, as you’ll lose 90 days’ worth on the amount withdrawn.

The bank was founded in 1998 in Utah. TAB, which is rooted in the trucking industry, stands for Transportation Alliance Bank.


on TAB Bank’s secure website

Member FDIC

Credit unions with the best 6-month CD rates

1. Veridian Credit Union — 0.75% APY, $1,000 minimum deposit

7 Month CD Special from Veridian Credit Union You’ll need at least $1,000 to open a Veridian Credit Union 7-month CD special and start earning interest at this rate. Veridian assesses a penalty of three months’ interest on early withdrawals.

Veridian Credit Union got its start in 1934, founded by John Deere employees. Veridian membership is open to residents and employees of businesses within the credit union’s field of membership, family or household members of eligible individuals, Iowans with disabilities as defined by the Americans with Disabilities Act of 1990 and registered users of the payment platform Dwolla.


on Veridian Credit Union’s secure website

NCUA Insured

2. CommunityWide Federal Credit Union — 0.75% APY, $1,000 minimum deposit

6 Month Share Certificate from Communitywide Federal Credit UnionWith at least $1,000, you can open a high-yield 6-month CW certificate account online. The early withdrawal penalty from this account is equal to the amount withdrawn multiplied by the remaining days left in the term.

Founded as a credit union to provide quality financial services to individuals in South Bend, Ind., CommunityWide Federal Credit Union has grown to offer its services to various communities within Indiana as well as online.

Anyone can become a CommunityWide member by donating to a list of organizations, including the YMCA. If you’re a member of the Michiana Goodwill Boosters or Marine Corps. League of St. Joseph Valley, you’re also eligible to become a member.


on Communitywide Federal Credit Union’s secure website

NCUA Insured

3. Lafayette Federal Credit Union — 0.70% APY, $500 minimum deposit

7 Month Fixed CD from Lafayette Federal Credit Union Lafayette Federal Credit Union offers a handful of certificates, including its 7-month fixed rate certificate, which requires $500 to open. Interest is compounded and paid quarterly. An early withdrawal from this account will trigger a penalty equal to 360 days’ worth of dividends.

Lafayette Federal Credit Union was chartered in 1935 and is headquartered in Rockville, Md. Members can access its branches in Maryland, Virginia and Washington, D.C., and CO-OP Shared Branches nationwide. LFCU membership is open to those who live or work in its serviced areas; work at partner agencies or companies; or are an immediate family member of a current member. You can also join if you are an existing member or become a member of the Home Ownership Financial Literacy Council.


on Lafayette Federal Credit Union’s secure website

NCUA Insured

4. La Capitol Federal Credit Union — 0.70% APY, $2,500 minimum deposit

6 Month Share Certificate from La Capitol Federal Credit Union This 6-month share certificate from La Capitol Federal Credit Union (La Cap for short) requires a minimum of $2,500 to open. Dividends earned are compounded monthly on this certificate. La Cap may impose a penalty of 90 days’ interest on the amount withdrawn if you take your money out before maturity.

There are many ways to qualify for La Capitol Federal Credit Union membership. It serves folks who live, work, worship or go to school in Baton Rouge or certain parishes in Louisiana, but you can also join by becoming a member of the Louisiana Association for Financial Achievement (ACHIEVE). The membership fee for ACHIEVE is $20 for the first year and $5 per year thereafter.


on La Capitol Federal Credit Union’s secure website

NCUA Insured

5. Evansville Teachers Federal Credit Union — 0.65% APY, $1,000 minimum deposit

6 Month CD from Evansville Teachers Federal Credit Union The 6-month certificate requires a low minimum of $1,000. Opening this account can help you lock in this solid rate that’s even higher than the credit union’s 8-month certificate.

Evansville Teachers Federal Credit Union was started in the 1930s by a handful of teachers from Evansville, Ind. Today, you don’t have to be an Evansville teacher — or a teacher at all, for that matter — to become a member. You can join Evansville if you’re an employee or retiree within their field of membership, as can family members and immediate household members. If you don’t qualify through these methods, you also can join by making a one-time $5 donation to the Mater Dei Friends & Alumni Association.

Pros and cons of using 6 month CDs


  • The CD rates offered by banks and credit unions are generally higher than those on savings accounts.
  • The rates are fixed and guaranteed for the length of their term.
  • The discipline of keeping the funds in the CD means the money will be available upon maturity. (Note: Most banks offer a seven-day grace period to reinvest or withdraw the investment, after which the funds will roll over into a new CD. However, you are not guaranteed the same rate.)


  • Six-month CD rates are lower than those offered on longer CD investment terms.
  • To tap into the CD funds — even for emergencies — consumers must accept a loss through penalties, which can include a percentage of the funds, a percentage of the earned interest, or a combination of both. A typical penalty on a short-term CD is between 30 and 90 days’ worth of interest earnings.
  • If you’re not confident you can do without access to the funds for six months, you may be better off putting your money in a traditional savings account, which is likely to earn less interest than a CD.
  • Since CD rollovers may reset at a different percentage rate, consumers must speak with the bank before the grace period ends to ensure they are getting the best deal.

Using a 6 month CD for laddering

A CD ladder comprises small-amount CDs with varying terms and respective interest rates that contribute to a long-term investment strategy. After the 6 month CD matures, investors can withdraw the funds for a predetermined expense. Or, they can reinvest the money into a longer-term CD with a better rate. By staggering the maturity dates on short-term CDs, consumers have access to their cash on a regular, predictable basis.

Where can you open a CD account?

Consumers can open 6 month CD accounts (or longer) from banks and credit unions. Bank and credit union CD rates are based on Federal Reserve rates, and there may be strategic times to pursue these short-term instruments following a rate increase.