If you are stashing your cash in a regular saving account, you’re missing out on extra money.

The average savings account pays an interest rate of 0.07%, the Federal Deposit Insurance Corporation (FDIC) calculated. This is very low compared to what you could be receiving from a high yield savings account.

Some of the Best High Yield Savings Accounts:

The good news is that online banks are offering a lot of great high yield savings accounts that anybody can access. Here are some of the best high yield savings accounts on the market today:

  • American Express Personal Savings from American Express National Bank this account comes with a 1.55% Annual Percentage Yield (APY). No minimum deposit is required, and funds transfers can be made 24-hours a day, seven days a week. Users can link up to three outside bank accounts. Disadvantages are that no ATM card or checks are available.
  • The CIT Bank Money Market Account This account pays a 1.75% APY, and it has a minimum opening deposit of just $100. Direct deposits and withdrawals are available on a 24-hour a day, seven days a week basis through the Mobile App.
  • Marcus by Goldman Sachs This artificial-intelligence powered solution offers a 1.6% APY with a $1 minimum deposit. The number of withdrawals is limited to six, but no transaction fees are charged. To add icing to the cake, Marcus is part of Goldman Sachs; one of the largest, and most influential investment banks on Wall Street.
  • The Sallie Mae Money Market Account The best thing about this account is that holders can write checks from the account. It also pays a 1.65% APY, and there is no minimum balance or monthly fees. This account is offered by the student loan organization Sallie Mae.
  • SalemFive Direct eOnline Savings- This account pays one of the highest annual percentage yields around, 1.85%. No minimum balance is required but you will have to make a $100 deposit to open it. Like several other high-yield savings accounts it comes with no monthly fees. The drawback is that no checks and ATM card are available.
  • Dollar Savings Direct This account offers a 1.8% APY with no minimum balance requirement and no monthly fees. It can be linked to your checking account for easy withdrawals if you wish.
  • Virtual Bank eMoney Market This account offers a 1.77% guaranteed APY for the first year. There is a minimum deposit of $100, but it pays interest on balances as low as 1¢. There is a $5 monthly fee if balances fall below $100. Free online and mobile banking and free mobile deposits are available.
  • Barclays Savings Online Savings AccountThis account offers a 1.5% APY and requires no minimum balance to open. There are no monthly fees, and transfer fees to other banks. This account is offered by the US branch of the historic British bank Barclays.
  • Synchrony High Yield Savings Account Synchrony offers a 1.65% APY with no minimum balance or deposit requirements. There are no monthly fees. A big advantage to Synchrony is that it offers ATM withdrawals from the savings account. Users will get an ATM card so it should be possible to make withdrawals or payments at some retailers as well. Synchrony does not appear to reimburse ATM fees. To get checking you will have to open a Synchrony Money Market Account.
  • Ally Bank Online Savings Account The best features here are 1.5% APY and no maintenance fees. There appears to be no minimum balance requirements, but you will be limited to just six transactions in a statement cycle (usually one month). Checks can be deposited remotely with Ally’s app. Best of all, the transfers to and from other banks are free.
  • Discover Bank Online Savings Account The best features are a 1.5%, no minimum opening deposit, no monthly fees, and no minimum balance requirements. Online transfers to external bank accounts are free. No checks or ATM withdrawals are offered.
  • Alliant Bank High-Rate Savings– Alliant offers an APY of 1.5% for those who maintain a balance over $100; and 1.49% for those with a balance under $100. There is a $5 minimum opening deposit, but Alliant will pay that. No monthly fee is charged if you use online banking. Deposits and withdrawals from thousands of ATMs are available but Alliant says nothing about the fees.

What You Need to Know about High-Yield Savings Accounts

The main thing to remember about “high-yield” savings accounts is that the high-yield is still fairly low.  Usually, as interest rates rise, so will your savings rate. We have been experiencing a period of suppressed rates in the United States. However, the Federal Reserve has been working to increase rates steadily.

Most of the banks offering online savings accounts can offer competitive rates because they don’t have as many costs to operate, which leads to more savings for you.

Also, all of the accounts listed above are insured by the Federal Deposit Insurance Corporation (FDIC). That means your money up to $250,000, is safe.

You can use a savings account as an emergency reserve; or emergency fund. That is money you can access if you needed to for things such as a job loss, car breakdown, etc. The idea is to be able to access money in a savings account if you need to, but not easily. This helps you keep your funds out of mind.

If the savings account comes with an ATM card or a checkbook, keep those items in the drawer, and only take them out in emergencies. The key to a good savings account is continuing to save and let the interest compound over time.

Something to remember is that you no longer have to keep your savings and checking accounts in the same bank. Utilize free money transfers to allow yourself to save your money in a separate banking entity from where your checking account is.

How Much Money Should You Keep in Your Savings Account?

The best amount of money to keep in your savings is the amount that makes you feel comfortable. You know your spending habits, expenses, and level of risk tolerance better than anybody else.

However, a good rule of thumb is to save up 6 months of living expenses in case of an emergency.

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