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.

In this article

    The 7 best high-interest savings accounts of 2020

     APYMin. DepositMonthly Fee
    Discover, Member FDIC0.50%$0$0
    American Express0.80%$0$0
    Marcus0.80%$0$0
    CIT Bank0.45% (Savings Builder)$100$0
    Ally0.80%$0$0
    Capital One0.65%$0$0
    Synchrony0.75%$0$0

    *Data accurate as of November 2020

    The best high-yield savings accounts of 2020

    Best customer suppor – Discover, Member FDIC

    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.

    APY
    0.50%
    Min. Deposit
    N/A
    J.D. Power Rating
    5/5
    SimpleScore
    4.4 / 5.0
    close
    SimpleScore Discover, Member FDIC 4.4
    Savings APY 3
    Savings Tools 4
    Customer Satisfaction 5
    Support 5
    Product Variety 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.

    Best for credit card customers – American Express® Savings

    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.

    APY
    0.60%
    Min. Deposit
    $0
    J.D. Power Rating
    N/A
    SimpleScore
    3.3 / 5.0
    close
    SimpleScore American Express® Savings 3.3
    Savings APY 3
    Tools 3
    Customer Satisfaction N/A
    Support 5
    Product Variety 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.

    Best for no fees – Marcus by Goldman Sachs

    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.

    APY
    N/A
    Min. Deposit
    $0
    J.D. Power Rating
    N/A
    SimpleScore
    3.5 / 5.0
    close
    SimpleScore Marcus by Goldman Sachs 3.5
    Savings APY 3
    Tools 4
    Customer Satisfaction N/A
    Support 5
    Product Variety 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.

    Best for mobile banking – CIT Bank

     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.

    Savings APY
    0.45%
    Min. Deposit
    $100
    J.D. Power Rating
    N/A
    SimpleScore
    4.5 / 5.0
    close
    SimpleScore CIT Bank 4.5
    Savings APY 3
    Tools 5
    Customer Satisfaction N/A
    Support 5
    Product Variety 5

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

    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.

    Best savings tools – Ally Bank

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

    APY
    N/A
    Min. Deposit
    $0
    J.D. Power Rating
    5/5
    SimpleScore
    4.6 / 5.0
    close
    SimpleScore Ally Bank 4.6
    Savings APY 3
    Tools 5
    Customer Satisfaction 5
    Support 5
    Product Variety 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.

    Best for in-person banking – Capital One

    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.

    APY
    N/A
    Min. Deposit
    $0
    J.D. Power Rating
    2/5
    SimpleScore
    4 / 5.0
    close
    SimpleScore Capital One 4
    Savings APY 3
    Tools 5
    Customer Satisfaction 2
    Support 5
    Product Variety 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.

    Best for ATM card – Synchrony

    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.

    APY
    N/A
    Min. Deposit
    $0
    J.D. Power Rating
    N/A
    SimpleScore
    4.5 / 5.0
    close
    SimpleScore Synchrony 4.5
    Savings APY 5
    Tools 4
    Customer Satisfaction N/A
    Support 5
    Product Variety 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.

    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

    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.

    Methodology

    SimpleScore

    The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.

    For every review, our editorial team:

    • Identifies five measurable aspects to compare across each brand
    • Determines the rating criteria for each aspect score
    • Averages the five aspect scores to produce a single SimpleScore

    Here’s a breakdown of the five aspect scores and their rating criteria for our review of the best savings accounts of 2020.

    Why do some brands have different SimpleScores on different pages?

    To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.

    However, it’s also possible for the same product from the same brand to have multiple SimpleScores. For instance, if we compare the savings account offered by Chase, it scores a 3.8 out of 5. However, when we compare the checking account offered by Chase with the checking account SimpleScore metrics, it scores a 4.4 out of 5. We change and tweak the methodologies for different categories based on industry standards to paint a complete picture of products and brands.

    Questions about our methodology?

    Email Hayley Armstrong at hayley@thesimpledollar.com.

    APY

    Savings accounts are meant to earn at least a little interest, which is why we reward brands with higher APYs on savings accounts.

    Savings Tools

    Brands that make it easier to save score higher SimpleScores. We considered tools such as savings buckets, automatic transfers and goal-tracking when comparing this metric.

    Customer satisfaction

    We leveraged J.D. Power’s 2020 U.S. Retail Banking Satisfaction Study and 2020 U.S. Direct Banking Satisfaction Study to rate each brand for customer satisfaction. The higher the satisfaction score, the higher the SimpleScore.

    Customer support

    The savings account providers that have the most channels of customer support score higher than providers that don’t. We considered e-chat, email, phone, mobile app support and social media as channels of support for this metric.

    Additional products

    When it comes to banking, it’s nice to have options. If you want a checking and savings account in one place, that’s great, but we also considered other financial products like MMAs, CDs, IRAs and more. Providers that have more additional products score higher.

    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
      Courtney Mihocik
      Finance Editor

      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.