Regardless of whether interest rates are increasing or decreasing, savers should not expect traditional banks and credit unions to offer high-yield annual percentage yields (APY) on conventional savings accounts. Fortunately, for those who want to earn a little more without taking on the risk of an investment, online savings provide more bang for your saved buck.
If saving money is on your radar as a priority for the new year, check out our picks for the best online savings options for your money in April 2025.
How Online Savings Accounts Offer the Best Yields
Online personal savings accounts are simple in how they work and what they offer. Most traditional banks and credit unions have brick-and-mortar locations that require a great deal of overhead each month. This means they are less inclined to pay higher interest rates on savings deposits as those financial institutions have major overhead expenses.
Online banks and some digital credit unions offer high-yield savings that boost your earning potential on idle cash. One of the main reasons they are able to do this is because of the lower overhead costs. Instead of earning pennies each month, you could be raking in interest on your savings with the help of an Internet-based savings account.
5 Best Online Savings Accounts with High Interest Rates
We looked at the top-rated online savings accounts to evaluate how much they offer in interest, account minimums, fees, and other advantages and downsides. Below are our top savings account picks based on these factors.
1. CIT Bank – Platinum Savings Account (4.10% APY) – Up to $300 Bonus*
The Platinum Savings account offered by CIT Bank allows savers to earn a hefty 4.10% APY on balances of $5,000 or more. That’s 10X the national average, according to CIT Bank. It’s FDIC-insured and comes with no account opening or monthly service fees. However, you will need an initial deposit of at least $100 to open an account. You can open a personal, custodial, or trust account, but it isn’t the best account for balances below $5,000 as those savers will earn a measly 0.25% APY.
*Use promo code PS2025 to get up to $300 (transfer a one-time deposit of $25,000 -$49,999.99 for a bonus of $225 or $50,000+ for a bonus of $300). Additional conditions apply. Click the above link for details.
2. Upgrade – Premier Savings Account (4.02% APY)
The high-yield online savings account offered through Upgrade allows savers to earn 4.02% APY on $1,000 or more. That’s several times the national average. However, the annual percentage yield for the Premier Savings account is variable and may change at any time. There are no account fees, overdraft fees, or transfer fees, and no minimum balance to open your account.
You will only earn the APY on days when the closing balance of your Premier Savings account is or exceeds $1,000. On days when the account closing balance drops below $1,000, the APY will be 0%. Upgrade is a financial technology company, not a bank. Premier Savings accounts are provided by Cross River Bank, Member FDIC.
3. UFB Direct – High Yield Savings Account (4.01% APY)
UFB Direct is a division of Axos Bank, a company that has been offering technology-based financial services to consumers and businesses for more than 20 years. Currently, UFB Direct offers one of the highest savings rates in the country and no balance tier requirements to earn the top annual percentage yield. You can earn even more interest by bundling with their high-earning potential checking account.
The UFB High Yield Savings account with a 4.01% APY doesn’t require a minimum initial deposit, there’s no monthly minimum balance requirement, and no other maintenance fees. Free complimentary ATM cards are available, and you’ll have access to a suite of digital money management tools through the website and APP.
4. Synchrony – High-Yield Savings Account (4.00% APY)
Synchrony is a financial institution offering online savings options that generate a higher yield than conventional banks and credit unions. With an online savings account from Synchrony, customers earn 4.00% APY without an account minimum, and they do not pay monthly maintenance fees.
Like similar options, Synchrony also offers mobile check deposits, direct deposits, and transfers to and from external bank accounts. The bank also has a partnership with certain ATMs for accepting deposits throughout the United States at no extra cost to customers.
5. CIT Bank – Savings Connect Account (4.00% APY)
The online Savings Connect account offered through CIT Bank allows customers to earn a generous 4.00% APY on their saved money with no balance tiers. That’s 9X the national average, according to CIT Bank. It comes with no account opening or monthly service fees, but you will need an initial deposit of at least $100 to open an account. Ample tools are also available through the bank’s website to help savers learn more about their money.
6. Ally Bank – Online Savings Account (3.60% APY)
One of the most well-known, fully digital banks is Ally, offering a variety of products and services to its customers. Ally’s online savings account is a simple solution for those who want to earn more on their savings balances. The account has no minimum requirement and no monthly maintenance fee, and the current interest rate is 3.60% APY.
One of the unique features of Ally online savings is that customers have no limit on how many accounts they can have, and each account can be given a nickname. This makes it easy to create targeted savings for financial goals, like a down payment for a home, wedding savings, or a travel fund. The bank also offers 24/7 customer service, mobile check deposits, and links to external accounts to make transferring to and from a breeze.
Final Thoughts on Top Online High-Yield Savings Accounts
Opening a high-yield savings account this year can help you make the most of your money by investing it in a safe and proven solution that will allow you to make reasonable gains on your money for years to come.
If you’re thinking about opening a savings account for your child or grandchild, be sure to check out our guide to opening a savings account for grandkids.