The Best High-Yield Savings Accounts for 2020
If you’re looking to save for something or grow your retirement savings while still retaining some liquidity, you may be interested in high-interest savings accounts. These lucrative financial options can deliver great annual returns, while still giving you access to your funds if needed.
It’s important, though, to make sure you don’t only look at the annual percentage yield (APY) and nothing else. You’ll want to consider things like fees, required account minimums, additional perks, and the bank or credit union’s reputation when making your final selection.
The 7 best high-interest savings accounts of 2020
- Discover, Member FDIC: Best with No Fees
- American Express: Best Customer Support
- Marcus: Best Savings Tools and Mobile App
- CIT Bank: High APYs
- Ally: Highest Customer Satisfaction
- Capital One 360: Best Account Variety
- Synchrony: Best Account Perks
|APY||Min. Deposit||Checking Account Available?|
|Discover, Member FDIC||1.15%||$0||Yes|
Discover, Member FDIC: Best with no fees
One of the best all-around high-interest savings accounts is Discover’s Online Savings Account. APY is 1.15% across the board regardless of your status with the company or the amount of money you have in your account. You can open an account with $0 and you’ll never get hit with any monthly fees or maintenance fees regardless of your balance. All in all, this is one of the best options.
American Express: Best customer support
You can get a steady boost to your retirement savings by opening a high-interest savings account with American Express. The company offers 1.30% APY regardless of your account size, which is great for those at the beginning of their savings journey. Interested applicants can open an account online or by phone at any time.
Marcus: Best savings tools and mobile app
A product of Goldman Sachs, Marcus offers 1.30% APY on its savings account option. With no account fees, no minimum deposit to open and top-notch security, the offering is right on par with the top performers in the industry.
One thing that does stand out about Marcus is its mobile banking app available for free to all customers. You’ll have full access to your funds and transaction options from anywhere you are with a smartphone. Furthermore, 128-bit encryption, SSL encryption, and multi-factor authentication will help keep your account and personal information safe.
CIT Bank: High APYs
You have two options for high-yield savings accounts at CIT bank — the CIT Bank Savings Builder account and the Premier High Yield Savings account. Choosing between the two depends on your financial picture and future plans. The Savings Builder offers a higher APY of 1.25% but does require either a minimum balance of $25,000 or at least one monthly deposit of $100 every month.
Ally: Highest customer satisfaction
If you’re looking for great APY rates regardless of your balance and a better way to visualize your savings, Ally might be a good fit. The company currently offers an APY of 1.25% for all balance tiers (how much money is in your account). Additionally, savers can set up their single account into buckets, allowing them to more easily visualize saving for multiple things.
Capital One 360: Best account variety
One of the strongest all-around products for savers is the Capital One 360 Performance Savings account. Savers get 1.30% APY on balances of any size, zero fees, and no account minimums to open or maintain your earning rate. Additionally, you’ll have access to a top-rated mobile app, creative digital savings tools, and quality customer service around the clock. If you’re not sure where to start on your savings journey, Capital One 360 could be a great starting point.
Synchrony: Best account perks
With an impressive APY of 1.30% on all accounts, Synchrony customers can effectively build retirement savings or save for anything they want. What’s unique about this account is that you will still get an ATM card like you would with a debit or checking account. You’ll still be limited to six transactions per month, like with any savings account, but you will have an easier way to access your savings funds if you need them unexpectedly.
What is a high-interest savings account?
Savings accounts are accounts held with banks designed for low transaction volumes and high earning potential. High-Interest savings accounts are savings account variants that focus on offering the best returns to customers who choose to put their money there. These accounts are similar to checking accounts except that you’re limited to only six deposits or withdrawals a month. As a response to the restrictive nature, you’ll usually earn a much higher annual percentage yield on the account.
How should I choose the right high-interest savings account?
Those searching for high-interest savings accounts are looking for one thing — high rates of return. While this should be the driving decision factor for you, you’ll want to consider other things like account minimums, required balances, additional perks, account accessibility, and the reputation of the bank. Ultimately, you’ll want an option you can leave your money with for an extended period of time to grow your savings.
The bottom line
Those who are looking to save for a big purchase or to grow their retirement savings have plenty of options when it comes to where they can put their money. One of the best options that does not lock your money away for a set period of time is a high-interest savings account. Start saving your money with FDIC-insured accounts like high-interest savings accounts that also give you access to your money while rewarding you with growth.