CD Rates Summary November 19, 2019
Federal Reserve, the Economy and CD Rate Forecast - Nov 19, 2019
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Banking 101: Understanding the Different Types of Savings AccountsBest High-Yield Savings Accounts - Summary for May 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 0.213% 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:
- The best high-yield savings accounts
- The best high-yield business savings accounts
- The best high-yield health savings accounts
- The best high-yield installment savings accounts
- The best high-yield children's savings accounts
We'll also answer the following questions:
- What is a high-yield savings account?
- What is the difference between an online savings account and a high-yield savings account?
*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 May 10, 2018.
| Institution | Rates | Minimum to open | Account name |
|---|---|---|---|
| Popular Direct | 2.00% | $5,000 | Popular Direct Plus Savings Account |
| Salem Five Direct | 1.85% (up to $1m), 0.05% ($1m+) | $100 | eOne Savings |
| Incredible Bank | 1.82% ($25k+), 1.21% ($2.5-$25k) | $2,500 | Incredible Savings |
| DollarSavingsDirect | 1.80% | $0 | Dollar Savings Account |
| Bank 7 | 1.80% | $100 | High Rate Online Savings |
| PurePoint Financial | 1.75% ($10k+), 0.25% (up to $10k) | $10,000 | Online Savings |
| MutualOne Bank | 1.71% | $0 | Online Savings |
| Live Oak Bank | 1.70% (up to $5m) | $0 | Savings Account |
| ableBanking | 1.70% | $250 | Money Market Savings |
| Synchrony Bank | 1.65% | $0 | High Yield Savings |
| Goldwater Bank | 1.65% | $0 | Savings Plus Personal |
| Colorado Federal Savings Bank | 1.65% | $50,000 | Premier Savings |
| SFGI Direct | 1.61% | $500 | SFGI Direct Savings Account |
| Goldman Sachs Bank USA | 1.60% | $0 | Online Savings |
| Amalgamated Bank | 1.60% | $0 | Give-Bank Savings Account (Online Only) |
| FNBO Direct | 1.60% | $1 | Online Savings |
| American Express Bank, FSB. | 1.55% | $0 | High Yield Savings Account |
| Sallie Mae Bank | 1.55% | $0 | High-Yield Savings |
| CIT Bank | 1.55% | $100 | Premier High Yield Savings |
| Community Bank of Pleasant Hill | 1.52% | $0 | Premier Money Management Account |
| Community Bank of Raymore | 1.52% | $0 | Premier Money Management Account |
| Heritage Bank | 1.51% ($230k+), 1.31% ($100k-$230k), 0.10% (Up to $100k) | $1,000 | Jumbo Deposit Account |
| Barclays | 1.50% | $0 | Online Savings Account |
| Ally Bank | 1.50% | $0 | Online Savings Account |
| Discover Bank | 1.50% | $0 | Online Savings |
| Alliant Credit Union | 1.50% ($100+) | $5 | High-Rate Savings |
| E*TRADE Bank | 1.50% | $100 | Premium Savings Account |
| Communitywide Federal Credit Union | 1.50% | $500 | High Rate - Quarterly |
| Radius Bank | 1.50% ($2.5k+), 0.05% ($10-$2.5k) | $10 | Radius High-Yield Savings |
| 1.50% (1m+), 1.30% ($500k-$1m), 1.19% ($250k-$500k), 0.99% ($100k-$250k), 0.80% ($50k-$100k), 0.05% (up to $50k) | $1 | High Yield Savings | |
| McGraw Hill Federal Credit Union | 1.45% | $100 | S3 Prime Savings |
| SmartyPig | 1.40% (up to $250k) | $0 | SmartyPig Savings |
| Bank of Internet USA | 1.30% | $0 | Smart Savings Account |
| BankPurely | 1.30% | $1 | SavingPurely |
| Nationwide Bank | 1.30% | $25 | Savings Account |
| Utah First Federal Credit Union | 1.30% | $50 | Dedicated Savings |
| UFB Direct | 1.30% ($25k+), 0.20% (up to $25k) | $100 | UFB Premium Savings |
| Amboy Direct | 1.26% ($3k-$100k), 0.40% ($300-$3k) | $100 | Personal eSavings Account |
| Quorum Federal Credit Union | 1.25% | $0 | HighQ Savings |
| Hanscom Federal Credit Union | 1.25% ($25k+) | $1 | Higher-Yield Savings |
| Citibank | 1.25% ($25k), 0.10% (Up to $25k) | $0 | Citibank Account Package - Promotional |
| North American Savings Bank | 1.16% ($15k-$1.5m), 0.10% ($1.5m+) | $15k | Super Saver Account |
| Northpointe Bank | 1.12% | $0 | Ultimate Savings |
| Wings Financial Credit Union | 1.11% ($50k+), 1.00% ($10k-$50k), 0.10% (Up to $10k) | $0 | High Yield Savings |
| Digital Federal Credit Union | 1.06% ($25k+) | $0 | DCU Ltd Savings |
| Capital One | 1.00% | $0 | 360 Savings Account |
| iGObanking | 1.00% | $1 | iGOsavings |
| MySavingsDirect | 1.00% | $1 | MySavings Account |
| Service Credit Union | 1.00% ($2.5k+), 0.95% (Up to $2.5k) | $0 | STAR Shares |
| Lake Michigan Credit Union | 1.00% ($100k+), 0.25% ($100-$100k+) | $100 | Max Savings |
The best high-yield business savings account rates
| Institution | Rates | Minimum to open | Account name |
|---|---|---|---|
| Goldwater Bank | 1.65% | $0 | Savings Plus Business |
| Community Bank of Pleasant Hill | 1.52% | $0 | Business Premier Money Management Account |
| Community Bank of Raymore | 1.52% | $0 | Business Premier Money Management Account |
| First Internet Bank | 1.41% ($250k+), 1.16% (up to $250k) | $100 | Business Regular Savings |
| BofI Federal Bank | 1.06% | $25k | Business Premium Savings Account |
| Digital Federal Credit Union (DCU) | 1.06% | $25k | Business Premium Savings Account |
| Live Oak Bank | 1.05% | $0 | Business Savings |
The best high-yield health savings account rates
| Institution | Rates | Minimum to open | Account name |
|---|---|---|---|
| Connexus Credit Union | 2.00% ($15k+), 1.50% ($5k-$15k), 1.00% ($500-$5k), 0.50% ($100-$500) | $0 | Health Savings Account |
| Evansville Teachers Federal Credit Union | 1.86% ($500+) | $0 | Health Savings Account (HSA) |
| Interior Federal Credit Union | 1.61% ($25k+), 1.36% ($15k-$25k), 1.11% ($5k-$15k), 0.86% ($2k-$5k), 0.61% (up to $2k) | $0 | Health Savings Account |
| nbkc bank | 1.01% (up to $1m), 0.50% ($1m+) | $0 | Health Savings Account |
| First Technology Federal Credit Union | 1.00% | $0 | HSA Checking |
| The Adirondack Trust Company | 1.00% | $1 | Health Savings Account |
| Lake Michigan Credit Union | 1.00% ($5k+), 0.50% (up to $5k) | $0 | Health Savings Account (HSA) |
| Elements Financial | 1.00% ($10k+), 0.50% ($2.5k-$10k), 0.25% ($100-$2.5k) | $100 | Health Savings Account (HSA) |
The best high-yield installment savings account rates
| Institution | Rates | Minimum to open | Account name |
|---|---|---|---|
| Associated Credit Union | 4.00% ($10-$500), 0.25% ($500.01+) | $10 | Safari Savings Club |
| Service Credit Union | 3.00% (up to $3,000), 0.25% ($3,000.01+) | $0 | Christmas/Holiday Club |
| Community Choice Credit Union (MI) | 3.00% (up to $500), 0.50% ($500.01-$4,999.99), 0.05% ($5,000+) | $0 | Holiday Savings Account |
| Blue Federal Credit Union | 1.25% ($25-$5,000), 0.10% ($5,000.01+) | $25 | Christmas Club Savings |
| Capital Educators Federal Credit Union | 1.00% (Up to $2,499.99), 0.10% ($2,500+) | $0 | Christmas Club Savings |
| Garden Savings Federal Credit Union | 1.00% | $0 | Kids Club Account |
| Lake Michigan Credit Union | 1.00% (Up to $1k), 0.25% (up to $5k) | $0 | Kids Club Savings |
| Marine Federal Credit Union | 1.00% (up to $25k), 0.05% ($25k+) | $5 | Deployment Club Share |
The best high-yield children's savings account rates
| Institution | Rates | Minimum to open | Account name |
|---|---|---|---|
| Boeing Employees Credit Union (BECU) | 6.17% (up to $500), 0.10% ($500.01+) | $0 | Early Saver Savings |
| Associated Credit Union | 4.00% ($10-$500), 0.25% ($500.01+) | $10 | Safari Savings Club |
| MainStreet Bank | 4.00% (Up to $999.99), 0.25% ($1,000+) | $0 | Junior Airsavings |
| USALLIANCE Financial | 3.05% (Up to $500), 0.02% ($500.01+) | $0 | MyLife Kids Savings |
| Community Choice Credit Union (MI) | 3.00% (up to $500), 0.05% ($500.01+) | $0 | Captain Choice |
| Bethpage Federal Credit Union | 3.00% (up to $1,000), 0.35% ($1,000.01+) | $0 | Youth Savings Account |
| Northwest Federal Credit Union | 2.27% (up to $1,500), 0.25% ($1,500.01+) | $0 | Youth Club Share Savings |
| Apple Federal Credit Union | 2.00% (up to $1,499.99), 0.10% ($1,500+) | $0 | eXtras Student Savings |
| Bellco Credit Union | 2.00% (up to $500), 0.50% ($500.01+) | $0 | Youth Savings Account |
| GTE Financial | 1.99% (up to $500), 0.10% ($500.01+) | $0 | Early Saver Account |
| Northpointe Bank | 1.50% (up to $1k), 1.11% ($1k+) | $0 | Kid's Savings |
| Alliant Credit Union | 1.50% ($100+) | $5 (provided compliments of Alliant) | Kids Savings Account |
| Partner Colorado Credit Union | 1.10% ($25-$499.99), 0.10% ($500+) | $25 | EZ Savings Account |
| Lake Michigan Credit Union | 1.00% (Up to $1,000.99), 0.25% ($1,001+) | $0 | Kids Club Savings |
| Capital One | 1.00% | $0 | Kids Savings Account |
| Garden Savings Federal Credit Union | 1.00% | $0 | Kids 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 0.210%, 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.
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?