Best High-Yield Savings Accounts (Earn Up to 4.35% APY)
Saving money in a traditional bank account no longer makes sense when inflation continues to eat away at purchasing power. With the national average savings rate sitting around 0.39%, many Americans are leaving thousands of dollars on the table every year. That’s where high-yield savings accounts (HYSAs) come in.
As of January 2026, the best high-yield savings accounts are offering APYs as high as 4.35%, allowing your cash to grow significantly faster—without taking on market risk. In this guide, we’ll break down the top high-yield savings accounts, explain how they work, and help you choose the best option for your financial goals.
Key Takeaways (Quick Answers)
- High-yield savings accounts earn up to 10x more than the national average.
- The top APY in January 2026 is 4.35%.
- Most accounts have no monthly fees and low or no minimum deposits.
- Funds are FDIC or NCUA insured up to $250,000 per depositor.
- Rates are variable and can change with Federal Reserve decisions.
What Is a High-Yield Savings Account?
A high-yield savings account is a federally insured savings account that offers a much higher interest rate than traditional savings accounts. These accounts are commonly provided by online banks or financial institutions with fewer overhead costs, allowing them to pass higher returns to customers.
Unlike investments, HYSAs:
- Do not expose your money to market risk
- Allow flexible withdrawals
- Are ideal for emergency funds, short-term savings, and cash reserves
Highest-Paying High-Yield Savings Accounts
1. Newtek Bank Savings — 4.35% APY
Best for: Highest APY with no minimum deposit
Newtek Bank currently offers the highest available APY among accounts with no minimum balance requirement. This makes it an excellent choice for savers who want top returns without locking in large deposits.
Why it stands out:
- No minimum balance
- Competitive, consistent APY
- FDIC insured
2. Openbank High Yield Savings — 4.20% APY
Best for: Standalone savings account
Openbank provides a clean, no-frills savings experience with strong returns. A $500 minimum balance is required to earn the advertised APY, but there are no monthly fees.
Ideal for: Savers who want a dedicated savings account without distractions.
3. Axos Bank Savings — 4.31% APY
Best for: No minimum deposit + strong digital banking
Axos Bank combines a high APY with a user-friendly digital experience. It’s a solid option for those who prefer managing money entirely online.
4. CIT Bank Platinum Savings — 3.75% APY
Best for: High-balance savers
CIT’s Platinum Savings account rewards customers who maintain balances of $5,000 or more. Below that threshold, the APY drops significantly.
Good fit if: You consistently keep higher balances in savings.
5. Barclays Tiered Savings — Up to 4.00% APY
Best for: Online savings tools
Barclays offers tiered interest rates and helpful goal-tracking tools. However, it does not provide a checking account, which may be a drawback for some users.
6. SoFi Checking and Savings — Up to 4.00% APY
Best for: All-in-one banking
SoFi combines checking and savings into one account and offers APY boosts if you meet specific requirements like direct deposit.
Bonus perks:
- Cash bonuses
- APY boosts
- No monthly fees
7. EverBank Performance Savings — 3.90% APY
Best for: Multiple banking products under one roof
EverBank is ideal for customers who want savings, CDs, money market accounts, and interest-earning checking—all in one place.
8. Capital One 360 Performance Savings — 3.40% APY
Best for: In-person customer support
Unlike many online banks, Capital One provides physical branch access while still offering a competitive APY and zero fees.
How Much Can You Earn With a High-Yield Savings Account?
Let’s say you deposit $10,000 into a savings account:
- At 0.40% APY → Earns about $40 per year
- At 4.00% APY → Earns $400+ per year
That’s a 10x difference—with no added risk.
Are High-Yield Savings Accounts Safe?
Yes. High-yield savings accounts are among the safest places to keep your money.
- Bank accounts are insured by the FDIC
- Credit union accounts are insured by the NCUA
- Coverage extends up to $250,000 per depositor, per institution
Even if a bank fails, your money remains protected.
How to Choose the Best High-Yield Savings Account
When comparing options, look beyond just the APY. Consider:
- Monthly fees (ideally $0)
- Minimum balance requirements
- Ease of access and transfers
- Mobile app quality
- Customer support availability
A slightly lower APY with better usability may be the smarter long-term choice.
High-Yield Savings vs Other Options
HYSA vs Traditional Savings
Traditional savings accounts often earn 0.01%–0.10% APY, making them ineffective for growth.
HYSA vs Money Market Account
Money market accounts may offer debit cards or checks but sometimes require higher minimum balances.
HYSA vs Certificates of Deposit (CDs)
CDs can offer fixed rates but lock your money for a set term. HYSAs offer flexibility.
Do You Pay Taxes on Savings Interest?
Yes. Interest earned in a savings account is considered taxable income. If you earn more than $10 in interest, your bank may issue a 1099-INT form.
Final Thoughts: Are High-Yield Savings Accounts Worth It?
Absolutely.
With interest rates still elevated and uncertainty in financial markets, high-yield savings accounts remain one of the best low-risk ways to grow your money in 2026. Whether you’re building an emergency fund, saving for a major purchase, or simply parking extra cash, choosing the right HYSA can make a meaningful difference over time.
Pro tip: Review rates every few months. Banks adjust APYs frequently, and switching accounts is easier than ever.
