Introduction: Best High-Yield Savings Accounts for 2024
Are you looking to grow your savings with minimal effort in 2024? High-yield savings accounts are an excellent option for earning passive income with competitive annual percentage yields (APYs). In this guide, we’ll explore the best high-yield savings accounts that offer APYs of 4% or higher, helping you maximize your returns. Whether you’re looking for no-fee accounts, sign-up bonuses, or easy access to funds, we’ve compiled the top options for you. Read on to discover the best ways to make your money work for you this year.
Why You Need a High-Yield Savings Account
I also have a spreadsheet that you guys can go to, which basically shows you all the numbers and compares these three accounts. If you’re wondering why you need a high-yield savings account, here is why: Free passive income with literally zero work from you.
Maximize Your Earnings with High APY
If your money is sitting in a Chase account, Bank of America account, or Wells Fargo account, you should move it to one of these accounts. Every bank on this list offers at least 4% to 5% APY as we’re filming this article.
How APY Translates to Passive Income
For every $100 you put into the account, you’ll get about $4 to $5 per year in free money. This is likely hundreds of times higher than your current bank, and you’re probably not making any money from the money sitting in your account.
Top High-Yield Savings Accounts of 2024
Let’s get started with my list of the best high-yield savings accounts. I encourage you to click on the links down below because these offers are always changing.
Constantly Changing Offers and Rates
All the numbers could be a little bit different depending on when you are watching this article. This will give you the most up-to-date rate for each bank that we talk about.
SoFi Savings Account Overview
The first bank we’re talking about, and one that I absolutely love, is the SoFi Savings Account. They pay up to 4.60% APY right now. FDIC insurance up to $2 million, which is way higher than most banks.
SoFi Savings Account Signup Bonus and FDIC Coverage
If you sign up right now, you can get up to $300 just for opening up your account and setting up a direct deposit.
SoFi Savings Account No-Fee Benefits
Like most high-yield savings accounts, the SoFi Savings Account has:
- No account fees.
- No overdraft fees.
- No monthly fees.
In terms of the interest rate, SoFi is definitely competitive.
Why APY Isn’t the Only Factor in Choosing an Account
I’ll do a section at the end of this article where I talk about:
- Some of the most frequently asked questions regarding savings accounts.
- Why choosing based on the interest rate alone isn’t the most important factor.
Importance of Direct Deposit for Maximum APY
To get the 4.60% APY with SoFi, you need to set up direct deposit. Otherwise, the interest you’ll get is only 0.5% APY.
Recommendations for Maximizing APY with Direct Deposit
I highly recommend setting up your direct deposit to actually start making that passive income.
Additional Benefits of SoFi Savings Account
If you don’t have a lot of money to put into the account, that’s okay:
- There’s no fees for having a low balance.
- SoFi gives you access to 55,000+ fee-free ATMs on the Allpoint network.
Get Early Pay Cheque and ATM Access with SoFi
There’s a cool feature with this account where you can get up to two-day early pay cheque by setting up your direct deposit with SoFi.
Overdraft Coverage Features with SoFi Savings Account
Overdraft coverage is available up to $50 with no fees, as long as you have a direct deposit of at least $1,000 per month.
SoFi All-in-One Banking App
SoFi offers a great all-in-one app, perfect if you prefer using a single app for all your banking needs.
Why SoFi Offers $2 Million FDIC Coverage
The reason for the $2 million FDIC coverage: SoFi works with a network of different banks, spreading your money across multiple banks for added security.
SoFi Cash Bonus Offer Explained
Let’s discuss the $300 bonus that you can qualify for:
- You need to receive at least one qualifying direct deposit by a certain date.
- This offer is valid until the end of the year (though it may be extended).
SoFi Cash Bonus Structure
- For a direct deposit between $1,000 and $5,000, you get a $50 bonus.
- For a direct deposit of $5,000 or more, you get the full $300 bonus.
If you have at least $5,000 to deposit, you can get $300 free, which is a fantastic offer.
SoFi High-Yield Savings Account Overview
SoFi is a very popular high-yield savings account. I personally have an account and use it for a significant portion of my own money.
- The $300 bonus is a limited-time offer, so I recommend taking advantage of it soon.
- Combined with the 4.6% APY, it’s an excellent deal.
Amex Savings Account Features and Benefits
The next high-yield savings account is the Amex Savings Account (American Express):
- The current APY is 4.25%, though this may vary.
- To get this rate, you only need to deposit at least $1.
Why Choose the Amex Savings Account
Reasons to like this account:
- No minimum balance requirement.
- No monthly fees.
- Amex offers 24/7 customer service with a fast response time.
Amex Mobile Banking App Usability
Amex also has a great mobile banking app, ideal for those who prefer mobile banking.
Key Differences Between Amex and SoFi Savings Accounts
- Amex’s rate is simpler to get: no need for direct deposit to get the 4.25% APY, unlike SoFi’s 4.6% rate.
- You get 4.25% APY without needing to set up direct deposit.
Cons of the Amex High-Yield Savings Account
Some drawbacks of the Amex account:
- No overdraft protection (though this might not matter to most viewers).
- No cash deposits since there’s no linked checking account.
- No branch access.
Why SoFi May Be a Better Option for Some
Despite the slightly lower APY, there’s no need for direct deposit with Amex. However, the lack of a cash bonus for opening an account makes SoFi a better choice for most viewers if you can qualify for the $300 bonus.
Barclays High-Yield Savings Account Overview
A 4.25% APY is much better than traditional banks like Chase, Wells Fargo, or Bank of America. You’ll earn about $4 per $100 per year. Overall, it’s a solid account with a well-known reputation and a solid APY.
Barclays High-Yield Savings Account Details
Current APY: 4.35%.
No Minimum Balance: No minimum balance required to earn this APY.
Comparison: Similar in many ways to the Amex Savings Account.
Limitations of Barclays High-Yield Savings Account
Barclays is a well-known bank, but there are a few limitations:
- ATM Access: No access to ATMs.
- Investment Products: Limited investment products (e.g., not many options for certificates of deposit).
Barclays vs. Amex: Which is Better?
If you’re interested in CDs, Amex might be a better option. Barclays doesn’t have any monthly service fees, so that’s one less worry.
Online Banking Experience with Barclays
Like other accounts in this article, Barclays is an online savings account:
- Physical Branches: No physical branches, except one in Delaware, which likely won’t matter for most.
- Personal Experience: I haven’t personally used this account, but I’ve researched it extensively.
Reviews of Barclays High-Yield Savings Account
Overall, reviews are great:
The difference between Barclays and other high-yield savings accounts isn’t drastic. Each has its pros and cons, but none are game-changing.
Comparing Barclays with SoFi
Key Differences:
SoFi requires direct deposit to get the high APY and offers up to a $300 bonus. Barclays and Amex don’t have bonuses like SoFi.
Conclusion: Why a High-Yield Savings Account is Essential for 2024
Opening a high-yield savings account in 2024 is a smart move for anyone looking to earn passive income while keeping their money safe. With APYs over 4%, these accounts can help protect your savings from inflation and grow your wealth effortlessly. Whether you opt for SoFi’s 4.6% APY and $300 bonus, Amex’s ease of access, or Barclays’ reliable rates, each option offers unique benefits. Start maximizing your savings today by choosing the best high-yield savings account for your financial goals, and enjoy the benefits of higher returns with zero effort.
1. Frequently Asked Questions (FAQs)
Should I Choose the Highest APY?
Not necessarily. Some banks might offer slightly higher APYs but have fluctuating rates. You don’t want a bank that constantly changes rates.
Is the APY Difference Significant?
The difference between these accounts’ APYs is small: usually within 0.5%. On $5,000 invested, this difference is around $25 per year.
What’s More Important than APY?
Key factors beyond APY include:
- Features
- App Quality
- Speed of Money Access
- Reputation
- FDIC Insurance
Anything over 4% from a reputable bank is a solid choice.
Is My Money Accessible?
Yes, money is very accessible in these accounts: It’s similar to using a checking account in terms of access speed.
Can I Withdraw Cash?
While you can’t withdraw cash from these accounts since they’re online, the benefit is: Online banks have less overhead, allowing them to offer higher APYs.
When Should I Open a High-Yield Savings Account?
The best time to sign up for a high-yield savings account is as soon as possible. If you’re not using cash often and have money not invested or allocated elsewhere, it’s smart to put it into a high-yield savings account.
The Importance of Good Financial Habits
Even if you don’t have much to deposit, it’s important to build good financial habits. Leaving money in a regular checking or savings account isn’t ideal. Start developing the habit of using high-yield savings accounts, so when you accumulate more wealth, you’ll already have a place for it without extra steps.
Why a High-Yield Savings Account is Essential
I secretly judge people who don’t have a high-yield savings account:
- It’s one of the simplest ways to grow your money passively.
- If you’re holding significant amounts in a regular checking or savings account, you’re losing out on easy gains.
At least a 4% APY helps minimize the effects of inflation, allowing your money to retain its value over time.
Closing Thoughts on High-Yield Savings Accounts
I’m a big fan of high-yield savings accounts:
I’ve used them for years, and they’ve been beneficial. Hopefully, this article was helpful for you.
How to Stay Updated on Personal Finance Tips
Thank you for reading:
I aim to help you live a more financially successful life. Thanks again, and I’ll see you in the next article.
2. Frequently Asked Questions (FAQs)
1. What are the best high-yield savings accounts in 2024 with APYs above 4%?
Answer:
In 2024, some of the best high-yield savings accounts include:
- SoFi Savings Account: Offers up to 4.6% APY with a $300 bonus on qualifying direct deposits.
- Amex Savings Account: Provides a 4.25% APY with no direct deposit requirement.
- Barclays Savings Account: Features a 4.35% APY with no minimum balance.
These accounts help maximize returns with minimal effort and are far better than traditional banks like Chase or Wells Fargo, which offer negligible interest rates.
2. How can setting up direct deposit maximize the APY on savings accounts?
Answer:
In accounts like SoFi, setting up a direct deposit unlocks the full 4.6% APY. Without direct deposit, the APY drops to just 0.5%. This incentivizes users to funnel their income directly into the savings account to get the best interest rate. Additionally, SoFi offers an early paycheck feature where users can access their salaries up to two days earlier.
3. What makes SoFi’s savings account a better option with its $300 bonus offer?
Answer:
SoFi stands out due to its $300 bonus offer for new customers who make a direct deposit of $5,000 or more. Even if the deposit is between $1,000 and $5,000, users can still receive a $50 bonus. The account also offers no fees, FDIC coverage up to $2 million, and access to 55,000+ fee-free ATMs, making it highly competitive.
4. What factors should I consider beyond APY when choosing a savings account?
Answer:
While APY is important, users should also look for:
- Account Fees: Ensure the account has no monthly or overdraft fees.
- Ease of Access: Check how quickly you can access funds.
- FDIC Insurance: Verify that your savings are protected.
- Mobile App Quality: Look for smooth and functional banking apps.
Banks like Amex offer 24/7 customer service, while SoFi provides an all-in-one banking app with more robust features than competitors.
5. How do SoFi, Amex, and Barclays savings accounts compare in terms of benefits and limitations?
Answer:
- SoFi: Offers 4.6% APY with a bonus, but requires a direct deposit.
- Amex: Provides 4.25% APY with no deposit requirement but lacks overdraft protection.
- Barclays: Features 4.35% APY but has no ATM access or cash deposit options.
Each account has unique advantages, but SoFi offers the most comprehensive package if users can meet the deposit conditions.
6. Why is it essential to switch from traditional banks to high-yield savings accounts?
Answer:
Traditional banks like Chase and Wells Fargo offer near-zero interest rates, meaning your money doesn’t grow. High-yield savings accounts, with APYs over 4%, allow you to combat inflation and earn passive income effortlessly. For every $100 you save, you can earn $4 to $5 annually, which is hundreds of times more than what traditional banks offer. This makes it a smart financial move to switch and start earning immediately.