Online savings accounts are high-yield accounts that tend to offer higher annual percentage yield (APY) on your balance than savings accounts offered by traditional banks. Online banks can get you the most competitive savings rates because without bricks and mortar, they save on overhead costs, extending the savings to help you increase your savings!
According to financial sources in November 2022, the highest rate available from an online savings account is 3.85% APY. This is almost 20 times higher than the Federal Deposit Insurance Corporation (FDIC) national deposit rate of .21% and .02% higher than the October 2022 published rate cap for savings accounts. So which online banking sources can offer you a great rate? Here’s a list of 9 online banks with great savings account interest rates.
9 Online Banks with Great Savings Account Interest Rates
UFB Direct – Don’t let UFB Direct’s balance tiers deter you. Right now, no matter your balance, you can earn 3.83% APY on your savings account balance with UFB Direct. This means from zero to $100,000 plus in deposits, your savings account will gain interest.
Bask Bank – Bask Bank is an online-only savings bank. A division of Texas Capital Bank and established in 1999, Bask Bank is experienced, offering 3.60% APY on savings accounts with zero monthly account fees.
PNC – With a PNC high-yield savings account, you can earn 3.50% on your balance. Their digital banking tools allow you to seamlessly transfer money into your savings account from your PNC or other banking institution accounts, making it easier to increase your interest-earning potential. There are no minimums or monthly service charges with PNC savings accounts.
Lending Club – Like most other online banks, Lending Club requires no monthly service fees. They do, however, require a $100 deposit to open your savings account, but after that, you’ll earn 3.25% on your balance.
Citi – Citi® AccelerateSavings is a checkless, online savings account. With Citi® Accelerate, customers can earn a high-interest rate (available in select markets only) with no account balance minimum and no limit on interest earned. While they emphasize that the rate is variable, accounts are currently being offered at 3.10% APY.
Marcus by Goldman Sachs – At 3.00% APY, you can boost your savings with a no-fee, no minimum deposit, high-yield Marcus Savings Account. With same-day transfers of $100,000 or less and a 24-hour customer care line, you’ll have full access to your online account and funds as needed.
Capital One – With a Capital One 360 Performance Savings Account, you’ll get 3.00% APY and have the ability to create multiple “Performance Savings Accounts” for each of your financial goals. Accounts require no minimum balance or monthly fees, and you can set up funds to be deposited automatically to make saving even easier.
Discover – Discover’s online savings accounts offer 3.00% APY and other benefits that could help you as you explore the world of savings. In addition to not charging you monthly fees, Discover won’t charge you for checks, withdrawals, insufficient funds, or closing your account.
SoFi – Like the other online banks listed above, SoFi’s APY comes in at more than 14 times the national average, but in addition to 3.00% APY on your balance, SoFi offers new checking and savings account holders up to $250 when signing up for direct deposit. That’s immediate money in the bank that can be transferred to your interest-earning account using SoFi’s online banking app.
You really can’t go wrong with any of these high-interest-yielding online savings options. It is important to note most of their interest rates are variable, so you’ll need to reach out to your preferred bank to confirm their current APY and criteria to achieve it. All in all, while there are some nuances among the bank offerings, these institutions all stand ready to make saving affordable, offering you no minimum deposits to get started and no monthly service fees after that. Whether you’ve got $0 or $100,000, now is a great time to start saving and earning interest on your money.
Byline: M. Kelani
Bio: M. Kelani is a wife, mom, nature lover, online shopper, and professional writer who is passionate about the power of the written word to help make the world a more beautiful place. Her published works focus on equity issues, international development, and global economic improvement.