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Best High-Yield Savings Accounts - Summary for January 2018

Best High-Yield Savings Accounts - Summary for January 2018

One of the safest places to keep your cash is in a savings account insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA). These types of accounts are not totally without risk, however. While both organizations will guarantee your funds up to $250,000, if you’re not earning enough interest on those savings to keep pace with inflation, your money will lose buying power over time.

Inflation rates in past 10 years have fluttered between 0.80 and 2.40% per year, according to the Bureau of Labor Statistics. That’s well above the average savings account interest rate of 0.199% APY you’ll currently find, meaning that the money most Americans have in savings is steadily eroding in value.

That’s why we recommend you keep your savings in a high-yield savings account, which earns much higher interest rates than your average savings account. At worst, you’ll limit the damage caused by inflation over time, and at best you might even come out ahead in a low-inflation, high-interest-rate year.

To help you get ahead, we've rounded up a list of the following:

We'll also answer the following questions:

*Please note: we did not include any money market accounts on these lists. Although they are very similar, we've chosen to limit these lists to savings accounts only. However, we do have a more comprehensive list of liquid accounts that is updated bi-weekly.

The best high-yield savings account rates

To compare each of these accounts, we looked at banks and credit unions that have an interest rate above 1.00% APY and are available nationwide. Rates are current as of Jan. 9, 2018.

InstitutionRatesMinimum to openAccount name
Colorado Federal Savings Bank1.65%$50,000Premier Savings
DollarSavingsDirect1.60%$0Dollar Savings Account
CIT Bank1.55%$100Premier High Yield Savings
Incredible Bank1.55% ($25k+), 1.21% ($2.5-$25k)$2,500Incredible Savings
Live Oak Bank1.50% (up to $5m)$0Savings Account
Salem Five Direct1.50% (up to $1m), 0.05% ($1m+)$100eOne Savings
Synchrony Bank1.45%$0High Yield Savings
Heritage Bank1.41% ($230k+), 1.31% ($100k-$230k), 0.10% (Up to $100k)$1,000Jumbo Deposit Account
Goldman Sachs Bank USA1.40%$0Online Savings
Barclays1.40%$0Online Savings Account
FNBO Direct1.40%$1Online Savings
Popular Direct1.40%$5,000Popular Direct Plus Savings Account
PurePoint Financial1.40% ($10k+), 0.25% (up to $10k)$10,000Online Savings
SFGI Direct1.36%$500SFGI Direct Savings Account
American Express Bank, FSB.1.35%$0High Yield Savings Account
Discover Bank1.30%$0Online Savings
Alliant Credit Union1.30% ($100+)$5High-Rate Savings
Radius Bank1.30% ($2.5k+), 0.05% ($10-$2.5k)$10Radius High-Yield Savings
Nationwide Bank1.30%$25Savings Account
ableBanking1.30%$250Money Market Savings
UFB Direct1.30% ($25k+), 0.20% (up to $25k)$100UFB Premium Savings
CIBC USA1.30% (promo rate), 1.20% ($100k-$230k), 0.10% (up to $100k)$1,000CIBC Palladian Savings Account
Ally Bank1.25%$0Online Savings Account
Hanscom Federal Credit Union1.25% ($25k+)$1Higher-Yield Savings
SmartyPig1.20% ($10k-$250k), 1.15% (up to $10k)$0SmartyPig Savings
Flagstar Bank1.20% (1m+), 1.10% ($500k-$1m), 1.00% ($250k-$500k), 0.90% ($100k-$250k), 0.75% ($50k-$100k), 0.05% (up to $50k)$1High Yield Savings
North American Savings Bank1.16% ($15k-$1.5m), 0.10% ($1.5m+)$15kSuper Saver Account
Northpointe Bank1.12%$0Ultimate Savings
Quorum Federal Credit Union1.10%$0HighQ Savings
Bank of Internet USA1.05%$0Smart Savings Account
Community Bank of Pleasant Hill1.05%$0Premier Money Management Account
Community Bank of Raymore1.05%$0Premier Money Management Account
AlsoStar Bank of Commerce1.05%$50Savings Account
Capital One1.00%$0360 Savings Account
Sallie Mae Bank1.00%$0High-Yield Savings
MySavingsDirect1.00%$1MySavings Account
Colorado Federal Savings Bank1.00%$1High Yield Savings
Service Credit Union1.00% ($2.5k+), 0.95% (Up to $2.5k)$0STAR Shares
Amboy Direct1.00% ($3k-$100k), 0.30% ($300-$3k)$100Personal eSavings Account
Citibank1.00% ($25k), 0.10% (Up to $25k)$0Citibank Account Package - Promotional
Digital Federal Credit Union1.00% ($25k+)$0DCU Ltd Savings
Lake Michigan Credit Union1.00% ($100k+), 0.25% ($100-$100k+)$100Max Savings
Newtown Savings Bank1.00% ($100k+), 0.75% ($50k-$100k), 0.60% ($25k-$50k), 0.40% ($5k-$25k)$5,000NSBiSavings

The best high-yield business savings account rates

InstitutionRatesMinimum to openAccount name
Heritage Bank1.41% ($230k+), 1.31% ($100k-$300k), 0.10% (up to $100k)$1,000Business Jumbo Deposit Account
First Internet Bank of IN1.36% ($250k+), 1.11% (up to $250k)$100Business Regular Savings
Live Oak Bank1.05%$0Business Savings
Community Bank of Pleasant Hill1.05%$0Business Premier Money Management Account
Community Bank of Raymore1.05%$0Business Premier Money Management Account
BofI Federal Bank1.01%$25kBusiness Premium Savings Account
Digital Federal Credit Union (DCU)1.00%$25kBusiness Premium Savings Account

The best high-yield health savings account rates

InstitutionRatesMinimum to openAccount name
Connexus Credit Union2.00% ($15k+), 1.50% ($5k-$15k), 1.00% ($500-$5k), 0.50% ($100-$500)$0Health Savings Account
Interior Federal Credit Union1.61% ($25k+), 1.36% ($15k-$25k), 1.11% ($5k-$15k), 0.86% ($2k-$5k), 0.61% (up to $2k)$0Health Savings Account
NBKC Bank1.01% (up to $1m), 0.50% ($1m+)$0Health Savings Account
First Technology Federal Credit Union1.00%$0HSA Checking
The Adirondack Trust Company1.00%$1Health Savings Account
Lake Michigan Credit Union1.00% ($5k+), 0.50% (up to $5k)$0Health Savings Account (HSA)
Elements Financial1.00% ($10k+), 0.50% ($2.5k-$10k), 0.25% ($100-$2.5k)$100Health Savings Account (HSA)

The best high-yield installment savings account rates

InstitutionRatesMinimum to openAccount name
Garden Savings Federal Credit Union1.00%$0Kids Club Account
Marine Federal Credit Union1.00% (up to $25k), 0.05% ($25k+)$5Deployment Club Share

The best high-yield children's savings account rates

InstitutionRatesMinimum to openAccount name
Justice Federal Credit Union4.47% (first 12 months), 2.27% (12 months onwards)$500Grow With Me Account
Alliant Credit Union1.30% ($100+)$5 (provided compliments of Alliant)Kids Savings Account
Capital One1.00%$0Kids Savings Account
Garden Savings Federal Credit Union1.00%$0Kids Club Account

What is a high-yield savings account?

A high-yield savings account is just like any other savings account, but with one key difference: it should offer significantly higher rates than you’d find with other savings accounts. However, institutions may use the term as a marketing ploy. There is nothing stopping them from naming a low-rate account as a "high-yield" account. So, while the accounts listed above are well beyond the national average rate of 0.199%, there is nothing stopping an institution from naming a savings account with a 0.26% APY as having a "high-yield".

While there isn’t really a standard dividing line in what separates a high-yield savings account from your plain Jane savings account, we consider most accounts that offer above 1.00% APY to be high-yield. This assessment is based on today's interest rate environment.

Sometimes banks will offer these smokin’ hot rates, but have certain requirements to reach this high bar. For example, you might need to have a certain amount of money in your account or transfer over funds from a new bank to take advantage of the higher rates offered. That’s why we always recommend you read the fine print before you apply for these types of accounts so you know for sure that you’ll be able to get these great rates.

What is the difference between an online savings account and a high-yield savings account?

Most online savings accounts are also high-yield savings accounts, according to Clint Haynes, certified financial planner and founder of NextGen Wealth.

“I’m a huge proponent of the online high-yield savings accounts,” Haynes says. “They’re so simple to set up and you can link it right up to your other checking account that you have. Or, if you have an online checking account” with the same bank. you can “just link that directly as well.”

Many brick-and-mortar banks let you access your bank account both in-person and online. However, these aren’t true “online savings accounts.”

That’s because brick-and-mortar banks also pay for an expensive location and all of the staff and necessities to go along with it. True online-only savings accounts skip all that, which is why most of them are able to offer high-yield rates.

Related Pages: savings accounts, nationwide deals
the truth ranger
the truth ranger   |     |   Comment #1
the problem i have with this website and those like it is this:,,,,,when rates are your guiding light and simple star ratings are you peace of mind,,,,you are putting a lot of faith in the fdic ncua in the event of the big one around the corner,,,,,,,,,some smart guy on cnbc said in dec 2008,,,,,vett your bank for your cash like a stock issuer, i can't believe the stuff i read on these posts.,,,,,but when you have come into serious bucks for deposit without much higher education in the banking industry other than your ability to play gotcha with the fine print details of terms and conditions that make similar products slightly better in the event of.......well,,,,,nobody is paying me to be a consultant or writer, on a personal level i don't care what happens to you whales or junior whales,,,,but if some humble widow or orphan is saved from a mistake,,,,then my rants have not been in vain.
DCGuy   |     |   Comment #2
That is a part of life just as with taxes. What is the proper direction to manage your assets and liabilities? Can you trust anyone offering specific vehicles? You almost need to be someone who has the ability to know all of the "nooks and crannies" of a given subject. You can say that only people who deal a lot (and know a lot) with given companies should be allowed to do business with them. That would decrease the number of customers making for much smaller businesses.
Chickenfoots   |     |   Comment #3
Everything in this life entails some sort of risk. You have to decide what is an acceptable risk, and if the risks you take are worth the reward.

There is probably a higher probability of dying in a car accident driving to the bank than your bank and the FDIC going belly up and all of your money going down the drain. Should you stop driving because of the risk?
Bozo   |     |   Comment #4
Chickenfoots (re comment # 3), the largest risk to high-yield savings accounts is inflation and taxes. I have yet to find one with a real rate of return, after taxes and inflation.
Cervantes Umbrella
Cervantes Umbrella   |     |   Comment #7
What is the future rate of inflation?
sheila bair fan
sheila bair fan   |     |   Comment #12
COM 3,,,,,i would read everything sheila bair said the year before she VERY VERY QUIETLY LEFT HER JOB,,,,,she was very very outspoken about the sacred cow she managed. be afraid,,,be very afraid for they have learned NOTHING and don't care.
Pat   |     |   Comment #5
Well I give then a lot faith....I don't believe a single dollar under the FDIC limit has EVER been lost in it's history. That's a pretty good track record. ....you have to trust something sometime.....at least mostly trust.
MidAtlantic   |     |   Comment #8
Re #1  If you spent more time reading and less time ranting you would see that this site has substantial detail on many banks concerning their financial health. I agree that many people probably do not check that, but the information is available.
#9 - This comment has been removed for violating our comment policy.
#10 - This comment has been removed for violating our comment policy.
#15 - This comment has been removed for violating our comment policy.
deplorable 1
deplorable 1   |     |   Comment #17
@the truth ranger: I'll go for the highest rate every time and stay within the FDIC/NCUA limits. I never lost a penny yet have beat inflation by rate chasing. You are funny worrying about risk in bank accounts. You better not invest in the stock market or you will never sleep at night.
Cat Chance
Cat Chance   |     |   Comment #6
Barclays on-line Savings Account is also available for children and as you know it's currently 1.3%. My 5-year old has one
Tekka   |     |   Comment #11
Vanguard's Prime Money Market Fund is paying 1.31% as of today, Dec 19. Its rate has been rising daily. For years it paid far better than any bank. It may be a better option going forward than most of the online banks as the rate adjusts with the rise in treasuries.
Bozo   |     |   Comment #13
Tekka (re comment #11), VMMXX is one over-looked option. Thanks for reminding us.
DCGuy   |     |   Comment #16
VMSXX also cracked the 1% rate barrier this week.
luv cats
luv cats   |     |   Comment #14
6,,,,,and my cat has one also, she is foxy about money.