Right now, banks are offering some of the highest interest rates in decades. It’s your time to cash in on these returns.

Western Alliance Bank^® High-Yield Savings Premier

Best For: High APY Interest Rates

Western Alliance Bank offers 5.01% APY^ⓘ on their High-Yield Savings Premier account.

This APY is substantially higher than what you’ll find at most brick-and-mortar banks and even most online banks.

In addition to this high APY, Western Alliance offers $0 account activity or maintenance fees and is insured by the FDIC for up to $250,000 per depositor.

The minimum deposit required to open an account is $500 & a minimum balance of $0.01 is required to earn the advertised APY.

U.S.-based customer service support is available from 9 a.m. to 5 p.m. EST Monday - Friday.

Western Alliance Bank was founded in 2003, has over $70 billion in assets and is consistently ranked among the top banks.

They were ranked #1 Top-Performing Large Bank with Assets $50 billion and Above in 2021, 2022, & 2023 by American Banker. They were ranked again by American Banker and Bank Director as a top U.S. bank in 2022 and 2023.

See Western Alliance Bank's Secure Site For More Details.

American Express^® High Yield Savings Account

Best For: Competitive APY From An Online Bank

American Express is best known for their suite of incredibly rewarding credit cards. They also offer a high yield savings account with a competitive Annual Percentage Yield (APY) of 4.10% as of October 14, 2024.

Your interest compounds daily and is deposited in your account monthly.

Other benefits of this account include $0 monthly fees, 24/7 Customer Service, FDIC insurance up to $250,000 per depositor and the fact it's backed by the service & reliability of American Express, it's a no brainer as to why so many people are signing up.

To top it off, you can easily check balance and transaction history, deposit funds, and more within the American Express^® App.

See American Express National Bank's Secure Site For More Details.

CIT Bank^® Platinum Savings Details

Best For: Customer Experience + High APY Interest Rates

CIT Bank ranked #1 in the nation for humanizing the customer experience in a recent survey conducted by American Banker of more than 5,000 consumers covering 50 financial institutions.

CIT Bank has been helping customers for over 100 years. Founded in 1908, CIT Bank is now part of First Citizens BancShares, Inc.

They currently offer 4.70% APY on their high yield savings account with no monthly fees. Minimum Balance for this APY is $5,000.

You can open a CIT Bank platinum savings account in as little as 5 minutes to complete the sign-up process.

Deposits are insured through the FDIC for up to $250,000 per depositor and interest compounds daily.

See CIT Bank's Secure Site For More Details.

Chase Bank Savings Account

Not Recommended. Shown For Comparison Purposes Only.

Chase Bank is one of the largest and most well known banks in the United States. Unfortunately, they offer a measley 0.01% APY on their savings account.

In fact, if you're not careful and perform enough qualifying activies, having a savings account with them can actually cost you money.

The average minimum balance to avoid a monthly service fee is $300. Monthly service fees can be up to $5 per month. They limit withdrawals to 6 per monthly statement period. If you go over this number, you'll be hit with an overage fee up to $15 per month.

Other miscellaneous fees may apply as well. Because of the bottom barrel APY and various fees, we don't recommend you opening a savings account with Chase Bank.

Discover^® High Yield Online Savings Account

Best For: Online Banking Experience + No Fees

Discover offers 4.10% APY with no monthly fees and $0 initial deposit.

Discover is one of the first online focused banks to offer no monthly fees and what they call "No. Fees. Period."

Whereas other banks may charge you a fee for certain services, Discover won't charge you a fee on any of the following items: monthly maintenance, official bank check, expedited delivery for official bank checks, deposited item returned, stop payment order, insufficient funds, or for closing your account.

If you're looking for a competitive APY with "No. Fees. Period." this account is for you.

See Discover's Secure Site For More Details.

Customers Bank High Yield Savings Account

Best For: High APY + No Monthly Fees

Customers Bank high yield savings account offers 4.51% APY exclusively through the Raisin Platform.

Using a single secure login, the Raisin Platform brings together 70+ federally insured banks & credit unions to help accomplish your savings goals.

In addition to this high APY, Customers Bank offers $0 monthly maintenance fees, unlimited withdrawals, and is insured by the FDIC for up to $250,000 per depositor.

These features plus the high APY make this account a rare offer.

Founded in 2009, Customers Bank is a super-community bank with over $22 billion in assets.

Ranked by total assets, Customers Bank is in the top 5% of all banks in America and is consistently ranked as one of the best banks in America by Forbes.

New bonus offer: Earn up to $2,000 in referral bonuses when you refer a friend who makes a qualifying deposit. See site for details.

See Raisin's Secure Site for Customers Bank For More Details.

Wells Fargo Savings Account

Not Recommended. Shown For Comparison Purposes Only.

Wells Fargo is also one of the largest banks in the United States and also offers a very low APY for their savings accounts.

They currently offer a sad 0.15% Way2Save Savings Account.

They require a minimum opening deposit of $25 and also force people to jump through hoops to avoid their monthly fees. You can avoid the fee with a $300 minimum daily balance, qualified transfers from a linked Wells Checking account and vice versa or if the primary account holder is 24 years old or under.

However, other fees may still apply. See terms for full details.

Because of the bottom barrel APY and various fees, we don't recommend you opening a savings account with Wells Fargo.

CIT Bank^® High Yield Savings Connect Account

Best For: High APY Interest Rates + Mobile App

CIT Bank has been helping customers for over 100 years. Founded in 1908, CIT Bank is now part of First Citizens BancShares, Inc.

They currently offer 4.35% APY on their high yield savings connect account with no monthly fees.

CIT Bank’s mobile app give you 24/7 access to your savings account. It also lets you deposit checks remotely & make transfers easily. The mobile app is available for both IOS & Andriod devices.

You can open a CIT Bank savings connect account with as little as $100 and it only takes about 5 minutes to complete the sign-up process.

Deposits are insured through the FDIC for up to $250,000 per depositor and interest compounds daily.

See CIT Bank's Secure Site For More Details.

Bank of America^® Savings Account

Not Recommended. Shown For Comparison Purposes Only.

Bank of America, another large bank that offers nearly nothing on their savings accounts.

They currently offer a regretful 0.01% APY on their Advantage Savings Account.

Bank of America will charge you a $8 monthly maintence fee unless one of the following conditions is met.

Minumum daily balance of $500, if you are a Bank of America Preferred Rewards client, if you link your Savings account to your Bank of America Advantage Relationship Banking® account, are under the age of 18 or if you're under the age of 25 and can qualify as a student.

Other miscellanerous fees may apply as well, such as $5 for statement copies. Because of the bottom barrel APY and various fees, we don't recommend you opening a savings account with Bank of America.

Idabel Nation Bank High Yield Money Market Account

Best For: Above Average Yield + Employee Focus

Idabel National Bank has been an independent community bank since 1921.

They currently offer an above average rate of 3.25% APY exclusively through the Raisin platform on their high yield money market account with no monthly fees and a minimum initial deposit of $1.00.

Deposits are insured through the FDIC for up to $250,000 per depositor and interest compounds daily.

Idabel National Bank wants to help savers nationwide and their local employees. Full-time staffers of the bank own a share of Idabel National Bank through their retirement plans.

See Idabel National Bank's Secure Site For More Details.

Liberty Bank High Yield Savings Account

Best For: High APY Interest Rates + Proven Track Record

Founded in 1889, Liberty Savings Bank is a family-owned community bank and has served its customers well for over 130 years.

Liberty Bank offers 4.50% APY on their high yield savings account with no monthly fees.

Deposits are insured by the FDIC for up to $250,000 per depositor and interest compounds daily.

You can open your account online quickly and with as little as $1.00.

Liberty Bank has a strong history of serving communities across America and supports Habitat for Humanity and its mission of building homes for people in need.

See Liberty Bank's Secure Site For More Details.

To recap our recommendations.

Best Savings Accounts According To CompareAccounts™

Western Alliance Bank^® High-Yield Savings Premier account: 5.01% APY^ⓘ

American Express^® High Yield Savings Account: 4.10% APY as of October 14, 2024

CIT Bank^® Platinum High Yield Savings Account: 4.70% APY

Discover^® Online Savings Account: 4.10% APY

Customers Bank High Yield Savings Account: 4.51% APY

CIT Bank^® High Yield Savings Connect Account: 4.35% APY

Idabel National Bank Money Market Account: 3.25% APY

Liberty Savings Bank™ High-Yield Savings Account: 4.50% APY

Customers Also Viewed: High-Yield Certificate of Deposit Accounts

What Determines Savings Account Interest Rates?

Savings account interest rates are typically determined by a variety of factors, including the supply and demand for funds in the financial system, the overall level of interest rates in the economy, and the policies of the financial institution that is offering the savings account. In general, savings account interest rates tend to be lower than rates on other types of financial products, such as loans, because they involve a lower level of risk for the lender. However, the specific interest rate that a financial institution offers on a savings account can vary based on a number of factors, such as the type of account, the balance of the account, and the length of time the funds are deposited.One other factor that can affect savings account interest rates is the level of competition among financial institutions. In a market with many banks and credit unions offering savings accounts, the institutions may need to offer higher interest rates in order to attract customers. On the other hand, in a market with fewer options for savings accounts, financial institutions may be able to offer lower interest rates and still attract depositors. Additionally, some financial institutions may offer higher interest rates on certain types of accounts, such as online-only accounts or accounts with higher minimum balance requirements, in order to differentiate their products and attract certain types of customers.

What is the Lowest Interest Rate Available?

The lowest interest rate on a savings account can vary depending on the financial institution and the specific terms of the account. Some financial institutions may offer very low interest rates on their savings accounts, like some of the banks above who only offer 0.01% APY.Although interest rate is one of the most important factors, other factors, such as fees, minimum balance requirements, and the convenience of the institution’s locations and services, may also be important to consider. It may be a good idea to shop around on compareaccounts.com and compare the terms and conditions of different savings accounts in order to find the one that best meets your needs.

What is the Federal Reserves Role in Setting Interest Rates?

The Federal Reserve, or the “Fed,” is the central bank of the United States and is responsible for implementing monetary policy in the country. One of the main tools the Fed uses to influence monetary policy is setting the target range for the federal funds rate, which is the interest rate at which banks lend money to each other overnight. The Fed uses this tool to help achieve its goals of maximum employment, stable prices, and moderate long-term interest rates.The Fed adjusts the federal funds rate by buying and selling securities, such as government bonds, in the open market. When the Fed wants to increase the federal funds rate, it will sell securities and take money out of circulation, which reduces the supply of funds available for lending and pushes up interest rates. Conversely, when the Fed wants to lower the federal funds rate, it will buy securities and add money to circulation, which increases the supply of funds available for lending and pushes down interest rates.The federal funds rate is a benchmark for many other interest rates in the economy, including the prime rate, which is the rate at which banks lend to their most creditworthy customers. As a result, changes in the federal funds rate can affect the interest rates that individuals and businesses pay on loans, as well as the returns they earn on investments such as savings accounts and certificates of deposit.One thing to note is that the Federal Reserve’s ability to influence interest rates is not unlimited. If the Fed tries to set the federal funds rate at a level that is significantly higher or lower than the level that the market would dictate based on supply and demand, it could lead to distortions in the financial system and disrupt the normal functioning of credit markets. Therefore, the Fed typically seeks to align its target for the federal funds rate with the “neutral” rate, which is the level of the federal funds rate that is consistent with sustainable economic growth and low and stable inflation over the long run.It is also worth noting that the Federal Reserve’s ability to set the federal funds rate is not the only factor that determines interest rates in the economy. Other factors, such as the level of risk associated with a particular type of loan or the level of competition among lenders, can also affect the interest rates that are offered to borrowers. Additionally, the Federal Reserve’s monetary policy decisions can be influenced by a variety of economic and financial conditions, both within the United States and around the world.