Intro: Guide to Finding the Highest Interest Rates for Savings Accounts


Many people have large amounts of their wealth tied up in savings accounts. It can be reassuring to have money on hand in an account that is readily available for whatever emergency may pop up.

Unfortunately, most traditional brick-and-mortar banks pay only a pittance of interest for savings accounts. Finding the highest savings interest rates is one way to get more out of your savings account. 

While no savings account is going to compare to a retirement fund or other more aggressive investments, in terms of annual percentage rates, there are a number of options out there that will allow you to benefit from the highest savings account interest rates available.

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This brief article will look at the benefits of finding the highest interest rates on savings accounts for your individual wealth management. Furthermore, we will compare potential earnings from a traditional savings account to that of a high yield account.

An overview will be given on the average interest rates offered by traditional brick-and-mortar banks compared to the highest online savings rates provided specifically by online banks.

In order to answer the question, “What is the savings account with the highest interest rate?” we will then compare the top six banks with the highest interest rates on savings accounts today.

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Why It Is Important to Search for a Savings Account with the Highest Interest Rate

According to gobankingrates.com, “As of April 2016, the national average savings account interest rate is only 0.06 percent for all balances, according to the FDIC — the same as it was before the fed funds rate increase at the end of 2015.” 

Even if you have hundreds of thousands of dollars tied up in your savings account, at 0.06 percent, you likely won’t even be able to take your family out to a nice dinner with your yearly earnings from interest. In comparison, the highest savings rates for traditional Investor Retirement Accounts (IRA) can be up to 7% per year. 

Making your money work for you is one of the cornerstones of smart financial planning. At the same time, however, many people feel that their lives are too unstable to tie up large amounts of their wealth in long-term investments that offer good returns but can’t be accessed until later on in life. Therefore, finding the highest interest rates on savings accounts is a good way to have the best of both worlds. 

Even if you do find the highest savings account rates, you probably still won’t be able to fund your retirement without a separate IRA, 401(k) or other investment that offers a more competitive interest rate. Nonetheless, putting your accessible wealth into one of the highest interest rate savings accounts available is an important strategy to create some extra income. 



If you plan on taking a family vacation once a year, the interest saved from a high-interest savings account can offset a good chunk of your vacation expenses. Furthermore, many financially savvy people with the highest savings account rates use the extra income to fund other riskier and potentially profitable investments in the short term.

Even if you only have a small amount of wealth tied up in a savings account, finding a bank that offer the highest savings account interest rates may help to offset some of the various fees and charges that come with a checking account that you have with the same bank. 

Checking accounts are filled with literally dozens of charges and hidden fees, from transaction fees to penalizing overdraft fees. By finding a bank that offers one of the highest interest rate savings accounts, you may be able to at least break even from all of the fees that your bank is charging. 

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Comparison Between Banks Offering the Highest Savings Account Interest Rates and Regular Banks

As we mentioned above, most banks offer a modest 0.06% on a typical savings account.  Of the banks we will review below, it is possible to find online banks that offer up to 1.05% for the highest online savings rates. While that may not seem like much, there is actually a huge difference between these two interest rates, and searching for the bank with the highest interest rate on a savings account can mean a lot of extra cash for you. 

Below, we offer a comparison of how the highest savings account rates compare to more traditional savings accounts, and how the highest interest rate for savings can add to your cash flow depending on different amounts that you have invested in your savings account. 



Comparison of Yearly Savings for a Normal Bank, a Bank with the Highest Interest Rate on a Savings Account, and the Highest Online Savings Rates

Normal bank interest rate of 0.06%

Highest interest rate savings account of 0.5%

Highest online savings rate of 1.05%

$1,000 in savings

$0.60

$5.00

$10.50

$5,000 in savings

$3.00

$25.00

$52.50

$10,000 in savings

$6.00

$50.00

$105.00

$50,000 in savings

$30.00

$250.00

$525.00

$100,000 in savings

$60.00

$500.00

$1,050.00

Related: Best Money Market Rates | Money Market Accounts with High Rates



Top Six Banks with Highest Interest Rates on Savings Accounts

Since online banks generally have much lower overhead costs, the highest interest rates on savings are generally found at exclusively online banks. These banks don’t have to pay for the purchase and upkeep of brick-and-mortar branches, and since they usually have less employees, they are able to offer the highest interest rates on savings accounts. 

It is possible to find savings accounts that offer some of the highest savings interest rates, but you will have to search around a bit. Various local and regional banks will offer some of the highest interest rates for savings if you sign up for a checking account and set up a direct deposit account with your employer. The six banks that we have reviewed below offer the highest interest rates on savings accounts that we could find on the web. 

  • Highest Savings Rates at Ally Bank

Ally Bank offers one of the highest interest rates for savings, with a 1% annual percentage rate. Furthermore, what sets it apart from its competitors is that there is no minimum balance requirement to receive this interest rate. Other banks that have the highest interest rates on savings accounts only offer you the highest savings rates if you have a minimum of $10,000 to $20,000 in savings.

In addition, Ally Bank has no monthly maintenance fees and offers quality customer service around the clock. 



  • Highest Savings Rates at Synchrony Bank

Synchrony Bank offers the best APY of any of the banks that we have reviewed. At 1.05%, you can make quality money from the interest on your savings account.  Although there is no minimum required to open account, you do have to maintain a minimum of $30 in the account to avoid a $5 monthly maintenance fee. 

Another perk of this online bank that offers the highest savings account interest rates is that once you’ve held an account with Synchrony for a certain length of time, you can apply for the Perks rewards program which offers reimbursements for ATM fees, travel discounts, and other freebies. 

  • Highest Savings Rates at Discover Bank

Discover Bank offers a competitive 0.95% annual percentage rate, but you will need to have a minimum of $500 dollars to open an account. Many people do prefer the trusted name of Discover Bank and appreciate that it also offers some of the highest interest rates on savings among the big name banks. 

The mobile app is another perk of this highest interest rate savings account as it allows you to perform mobile check deposit as well as electronic deposit. If you want access to the thousands of Discover ATM machines around the country, then you can apply for Discover’s Money Market Account. While this account will lower you interest rate to 0.80%, it is easily one of the highest interest rates for savings options that provides easy access to money accounts. 

  • Highest Savings Rates at Barclays

Of the big name banks, Barclays Bank offers one of the highest savings account rates. This British bank offers 1% APY on its online savings account. Furthermore, if you are looking to make even more money off interest, it offers possibly the best perk system out there. 

If you deposit $1,000 dollars every month for six months, you can apply for the Dream account and earn an additional 2.5% interest. If you don’t make any withdrawals for another six months, you can make another 2.5% interest. This bank easily offers the highest savings interest rates for those who have the funds to invest.



  • Highest Savings Rates at iGObanking

IGObanking is a lesser known bank that also offers one of the highest interest rates for savings accounts. Its 1% APY is comparable to some of the other banks with the highest interest rates on savings accounts.

Furthermore, this account requires no minimum balance and comes with no fees or monthly maintenance costs. According to Bestcompany.com, “many of the standard mobile banking features are offered by iGo, such as mobile deposit, balance inquiries and free bill pay.”

  • Highest Savings Rates at My Savings Direct

My Savings Direct is an online division of Emigrant Bank that is based in New York City.  It is currently offering a 0.85% annual percentage yield interest rate, though the rates do fluctuate. You can sign up for this highest interest rate savings account online and link your current checking account directly to the My Savings Direct account. 

If you are looking for higher interest rates, My Savings Direct also offers certificates of deposit (CDs) at 30, 60, and 120-month terms, where you can earn between 1.30% and 1.65%. There is a minimum deposit of $1,000 dollars required. 

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Furthermore, this savings account with the highest interest rate offers quality customer service at all times, and you won’t have to worry about paying hidden fees or charges as there is no monthly maintenance fee involved. 

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How the Highest Savings Account Rates Can Help You Financially

One of the biggest problems associated with banks that offer the highest savings rates is that the interest rates tend to fluctuate often. You may be earning 1.05% APY one day and then have that rate cut to 0.90% the next month when the Fed changes its economic policies. 

Nonetheless, it is still preferable to find a bank that offers the highest savings rates so that you can benefit from the extra income that your savings generates for you. Besides offering the highest savings account rates, most online banks also offer a number of other perks and banking comforts that brick-and-mortar banks simply don’t have. 

For example, the 24/7 customer service that most online banks have allows you to have more control over your savings. The fact that you can receive the highest online savings rates and still maintain your checking accounts with your current bank makes signing up for the highest savings rates a no-brainer. 

You can continue to maintain the relationship with your hometown bank where you have your checking account while, at the same time, earn extra income from the highest online savings rates.

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