The Best High-Yield Savings Accounts for 2020

If you have a regular savings account at a big bank, you’re probably not earning much interest on your money. The average savings account in America has an interest rate of just 0.06%. But you don’t have to settle for a measly annual percentage yield. There are plenty of online banks that offer high-yield savings accounts with interest rates of 1% or more — allowing you to grow your savings faster.

To help you earn more interest on your nest egg, it’s important to find the best high-yield savings accounts that have high interest rates and low minimum balance requirements so you can open an account and start saving today.

The 7 best high-interest savings accounts of 2020

APY Min. Deposit Monthly Fee
Discover, Member FDIC .60% $0 $0
American Express .80% $0 $0
Marcus .80% $0 $0
CIT Bank .55% $100 $0
Ally .80% $0 $0
Capital One .65% $0 $0
Synchrony .75% $0 $0

*Data accurate as of August 2020

The best high-yield savings accounts of 2020

Best customer support – Discover, Member FDIC

Discover, Member FDIC

You can’t go wrong with Discover’s high-interest savings account ⁠— it has no fees, no minimums and a highly rated mobile app with 24/7 customer support.

APY
.60%
J.D. Power
5/5
Additional Products
5+ accounts
SimpleScore
4.5 / 5.0
close
SimpleScore
Discover, Member FDIC
4.5
  • APY
    3
  • Savings Tools
    4
  • Customer Satisfaction
    5
  • Support
    5
  • Additional Accounts
    5
Discover's high-yield savings account has no fees or minimums, so you can open one today without a deposit. With the easy-to-use mobile app, you can view your free credit score, track your account activity, deposit checks and message customer service agents day or night. You can also set up recurring transfers to automate your savings and open multiple accounts to set aside money for different financial goals.

The main downside of this account is that it offers a slightly lower interest rate than other high-yield savings accounts available.

Full review

Our Two Cents — Although Discover doesn’t offer the highest interest rate, its savings account is still a solid option. It comes with perks like no fees or minimums, a highly rated mobile app and 24/7 customer support from U.S. agents.

Best for credit card customers – American Express

American Express

American Express offers a high interest rate of .80% but lacks some of the features you’d expect from an online bank, like a mobile app and live chat support.

APY
.80%
J.D. Power
Not Rated
Additional Products
CDs, credit cards
SimpleScore
3.25 / 5.0
close
SimpleScore
American Express
3.25
  • APY
    3
  • Savings Tools
    3
  • Customer Satisfaction
    N/A
  • Support
    4
  • Additional Accounts
    2
American Express is best known for its business and personal credit cards, but it also offers one of the best high-interest savings accounts on the market. It has a competitive interest rate of .80%, no monthly maintenance fees and no minimum deposit. To earn interest and keep your account open, however, you’ll have to keep at least $1 in it.

American Express also offers 24/7 customer support over the phone, which is a big perk. But the company doesn’t have a live chat option or a mobile banking app. You won’t be able to get an ATM card either, which can make it harder to access your money, especially considering American Express has no physical branches.

Full review

Our Two Cents — Want an account with a high interest rate and don’t mind missing out on some features like live chat support? Then this high-yield savings account from American Express could work for you.

Best for no fees – Marcus

Marcus

Marcus offers a high interest rate and doesn’t charge any monthly maintenance fees or withdrawal penalties, which will allow you to grow your savings faster.

APY
.80%
J.D. Power
Not Rated
Additional Products
CDs, loans
SimpleScore
3.5 / 5.0
close
SimpleScore
Marcus
3.5
  • APY
    3
  • Savings Tools
    4
  • Customer Satisfaction
    N/A
  • Support
    5
  • Additional Accounts
    2
Marcus has a high-yield savings account with a competitive interest rate of .80% and no fees, penalties or minimums. It also offers a mobile banking app so you can manage your money right from your smartphone. The app allows you to view your statements, set up recurring deposits and keep track of your financial goals. You can even link your Clarity Money app directly to your bank account to make budgeting easier.

Although this savings account has lots of useful features, there are a few downsides you should know about. Because Marcus is an online bank, it doesn’t have any physical branches. It doesn’t offer an ATM network, ATM cards or checking accounts either, so you can’t use Marcus for all of your banking needs.

Full review

Our Two Cents — Although Marcus isn’t a full-service bank, its high-yield savings account is still worth considering. It doesn’t have any fees or penalties and offers a high APY of .80% to help you build your savings.

Best for mobile banking – CIT Bank

CIT Bank

This high-yield savings account from CIT Bank offers features like mobile and text banking to make it easier to manage your money.

APY
.55%
J.D. Power
Not Rated
Additional Products
5+ products
SimpleScore
4.5 / 5.0
close
SimpleScore
CIT Bank
4.5
  • APY
    3
  • Savings Tools
    5
  • Customer Satisfaction
    N/A
  • Support
    5
  • Additional Accounts
    5
Although CIT Bank’s savings account offers a lower interest rate than the others on this list, it’s still a good option for digitally savvy savers who want access to features like mobile and text banking. With the mobile app, you’ll be able to deposit checks, transfer funds, check your transaction history and send funds to family and friends via Zelle, a digital payments network. The text banking feature also allows you to view your recent transactions and account balance by texting a command to CIT Bank’s number.

But if you don’t think you’ll take advantage of these mobile banking features, you may want to look into other high-interest savings accounts that offer better rates. CIT Bank also requires a deposit of $100, so if you don’t have any money saved, this account may not be the best option for you.

Full review

Our Two Cents — CIT Bank offers savings accounts with low fees and a wide variety of mobile banking features. But if your main priority is getting the highest rates, you may want to consider other options.

Best savings tools – Ally

Ally

Ally offers savings accounts with high interest rates and tools to help you manage your money and reach your financial goals.

APY
.80%
J.D. Power
5/5
Additional Products
5+ products
SimpleScore
4.6 / 5.0
close
SimpleScore
Ally
4.6
  • APY
    3
  • Savings Tools
    5
  • Customer Satisfaction
    5
  • Support
    5
  • Additional Accounts
    5
Ally offers a high-yield savings account with an APY of .80%. Its accounts also come with something called savings buckets, which are separate sections within your bank account where you can store money for specific goals. You’ll also get access to a tool called surprise savings, which uses artificial intelligence to identify extra money in your checking account and move it into savings so you can earn more interest. And if you have trouble using or understanding any of these tools, you can get help from Ally’s customer service at any time of day or night over the phone, via email or through an online chat function.

Although Ally is an online-only bank, it still offers a robust variety of additional products so it's a great place to call your financial home. In addition to savings and checking, Ally has investment accounts, home and auto loans, IRAs and CDs.

Full review

Our Two Cents — Ally is a great online bank with advanced budgeting tools that can help you save more money, without you even trying.

Best for in-person banking – Capital One

Capital One 360

Capital One 360 has a slightly lower interest rate than some of the other accounts on this list but offers perks like in-person banking that make up for it.

APY
.65%
J.D. Power
2/5
Additional Products
5+ products
SimpleScore
4 / 5.0
close
SimpleScore
Capital One 360
4
  • APY
    3
  • Savings Tools
    5
  • Customer Satisfaction
    2
  • Support
    5
  • Additional Accounts
    5
Capital One has branches and cafes throughout the country, which gives you the option to bank online or in person. You can go to a branch to open your account and withdraw money or do everything on your web browser or mobile app. No matter where you decide to bank, you’ll get the same great rates and fees. Capital One accounts have no monthly fees, no minimums and a decent interest rate of .65%. Additionally, Capital One savings tools include tracking progress, recurring transfers and the ability to check your credit score on the mobile app.
Full review

Our Two Cents — Capital One has a slightly lower interest rate than the other accounts on this list. But if you want access to in-person banking and a large network of ATMs, Capital One’s savings accounts may be a good option for you.

Best for ATM card – Synchrony

Synchrony

Synchrony doesn’t offer the highest interest rates, but has no monthly fees, no minimums and is the only bank on this list that provides ATM cards.

APY
.75%
J.D. Power
Not Rated
Additional Products
MMAs, CDs
SimpleScore
4 / 5.0
close
SimpleScore
Synchrony
4
  • APY
    3
  • Savings Tools
    4
  • Customer Satisfaction
    N/A
  • Support
    5
  • Additional Accounts
    4
Synchrony Bank only offers a .75% APY on its savings accounts, which is on of the lowest rates on this list. But it’s also the only bank that provides ATM cards to its customers. So if you want to be able to withdraw your money at local ATMs, this may be a good option.

Synchrony is part of the Accel network, which has thousands of ATMs that you can use for free. The company will also reimburse you for up to $5 worth of out-of-network ATM fees per statement cycle. In addition to ATM fee reimbursement, Synchrony offers a rewards program that can get you perks like free wire transfers depending on your balance and how many years you’ve been a customer. This is a unique feature that not many banks offer, so it’s a definite plus.

Full review

Our Two Cents — If you’re looking for a savings account with no minimums, no monthly fees and ATM access, Synchrony may be right for you. Just keep in mind it has the lowest APY of any of the accounts on this list, which is a big drawback.

What is a high-yield savings account?

High-yield savings accounts are just like regular savings accounts, except they earn a much higher interest rate. The average savings account only earns 0.06% interest, while many high-yield savings accounts offer interest rates above 1%.

High-yield savings accounts are FDIC-insured, so they don’t carry the same risks as investment accounts. And unlike CDs, they allow you to access your money at any time, so they’re a great place to store money you need easy access to, like an emergency fund.

The only downside of high-yield savings accounts is that FDIC regulations limit account holds to only six withdrawals or outgoing transfers each month. If you go over the limit, your account could be converted to a checking account or you may have to pay a fee.

[Related: Best Money-Saving Apps]

How should I choose the right high-yield savings account?

When you’re shopping around for a high-yield savings account, look for one that has an interest rate above 1% and no monthly maintenance fees. Also, avoid accounts with high withdrawal penalties or overdraft fees that could cut into the interest you’ve earned. Special features are also something to consider. Although perks like ATM cards and savings tools aren’t necessary, having them could make your banking experience more convenient and enjoyable.

Another factor to consider is whether you like to do your banking online or in person. If being able to visit a physical bank is important to you, prioritize companies like Capital One with branches throughout the country. If you’re happy to do your banking online, look for companies with a reputation of providing a great online banking experience like Ally.

Savings and dollar cost averaging explained

Too long, didn’t read?

High-yield savings accounts are a great place to store short-term savings you want to earn extra interest on but don’t want to risk losing in the stock market. The best high-yield savings accounts have high interest rates, low fees and no minimum balance requirements. They also have great customer service and features like online savings tools to help you manage your money and achieve your financial goals.

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Methodology

The SimpleScore is our proprietary scoring metric to compare products and services at The Simple Dollar in a transparent, evidence-based way. Our editorial team identifies five quantifiable aspects to compare for every brand, determines the rating criteria for each aspect score, then averages the five aspect scores to produce a single SimpleScore. For high-yield savings accounts, we compared APYs, available savings tools, customer satisfaction, customer support and additional accounts for every major lender. Our ratings are meant to be a directional tool to help you in the process of choosing a savings account. Be sure to continue your research and shop around for the best savings account that fits your specific needs.

Last updated July 22, 2020  – Updated SimpleScore data.

We welcome your feedback on this article and would love to hear about your experience with the savings accounts we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions.

Jessica Walrack
Jessica Walrack
Contributing Writer

Jessica Walrack is a personal finance writer at SuperMoney, Interest.com, The Simple Dollar, and PersonalLoans.org. She specializes in taking personal finance topics like loans, credit cards, and budgeting, and making them accessible and somewhat fun.

Reviewed by

  • Courtney Mihocik is an editor at The Simple Dollar who specializes in insurance, personal finance, and loans. Previously, she wrote and edited for Interest.com, PersonalLoans.org, Ballantyne Magazine, Thread Magazine, The Post, ACRN, The New Political, Columbus Alive and the Institute for International Journalism.