10 best online banks with high-yield savings accounts

Here are the 10 best online banks with high-yield savings accounts.

In today’s financial environment, letting your savings sit in a traditional, brick-and-mortar bank account is like leaving money on the table.

Online banks have revolutionized the savings landscape, offering high-yield savings accounts with interest rates that can be 10 to 25 times higher than the national average.

At ShockTrail, we’re dedicated to helping you make smarter financial choices. This guide highlights the best online banks that will make your money work harder for you, effortlessly.

Why an Online High-Yield Savings Account is a Financial Non-Negotiable

Online banks have a significant advantage over traditional banks: lower overhead. Without the massive expense of maintaining physical branches, they can pass those savings on to their customers in the form of much higher interest rates, or Annual Percentage Yield (APY). A high-yield savings account (HYSA) is the perfect, FDIC-insured home for your emergency fund, down payment savings, or any short-to-medium-term financial goal. It allows your money to grow significantly faster, compounding over time, all while remaining safe and accessible.

Real-World Scenarios: Putting Your Savings to Work

Scenario 1: The First-Time Saver Building an Emergency Fund

• The Saver: Alex, a recent graduate who wants to build a six-month emergency fund.
• The Goal: To save $15,000 in a safe, accessible account that also earns meaningful interest.
• The Solution: Alex opens a high-yield savings account with Ally Bank. He is drawn to their competitive APY, no monthly fees, and user-friendly mobile app that allows him to create different “buckets” for his savings goals. He sets up an automatic, recurring transfer from his traditional checking account every payday. He watches his emergency fund grow not only from his contributions but also from the substantial monthly interest payments, reaching his goal much faster than he would have at his old bank.

Scenario 2: The Family Saving for a Big Vacation

• The Savers: The Garcia family, who are planning a trip to Disney World in two years.
• The Goal: To save $8,000 for the trip and keep it separate from their regular spending money to avoid temptation.
• The Solution: The Garcias choose Marcus by Goldman Sachs®. They are attracted by the bank’s strong reputation and consistently high APY. They open an account, nickname it “Disney Fund,” and set up monthly transfers. The interest they earn over two years adds over $700 to their fund—enough to cover their food for several days of the trip, a benefit they would have completely missed out on in a traditional savings account.

Scenario 3: The Savvy Investor Parking Cash

• The Saver: Sarah, an experienced investor who just sold some stocks.
• The Goal: To keep her cash safe and liquid while earning a high return, waiting for the right moment to reinvest in the market.
• The Solution: Sarah moves the funds into a CIT Bank Savings Connect account. She knows that while it’s not an investment, the high APY offered by CIT Bank provides one of the best risk-free returns available for her cash. She can access her money whenever a new investment opportunity arises, but in the meantime, her cash is actively earning a competitive yield instead of sitting idle. You can compare current rates on top financial sites like Bankrate.

Comparative Breakdown of Top High-Yield Savings Accounts

The 10 Best Online Banks for High-Yield Savings in 2025

1. Ally Bank: The undisputed king of online banking, Ally combines a consistently high APY with an award-winning mobile app, 24/7 customer service, and useful savings tools.
2. Marcus by Goldman Sachs®: Offers a simple, no-fuss high-yield savings account with one of the most competitive and stable interest rates on the market.
3. CIT Bank: A division of First Citizens Bank, CIT often appears at the very top of the APY leaderboards, making it a top choice for those who want to maximize their interest earnings.
4. Capital One 360: A great choice for customers who want an all-in-one bank. You can seamlessly manage your high-yield savings, checking, and credit cards all under one excellent app.
5. Discover Bank: While famous for its credit cards, Discover also offers a fantastic online savings account with a competitive APY and is consistently ranked at the top for customer satisfaction by J.D. Power.
6. Sallie Mae (SmartyPig Account): Known for student loans, Sallie Mae offers a unique, goal-oriented savings account with a very high APY, perfect for people saving for specific targets.
7. Varo Bank: A modern, all-mobile bank that offers a tiered APY structure. If you meet certain requirements (like direct deposit), you can unlock one of the highest savings rates available anywhere.
8. SoFi: A financial super-app that offers a competitive “Savings & Checking” combo account. Qualifying for the highest APY is easy with direct deposit.
9. American Express® National Bank: A trusted name offering a simple, secure high-yield savings account with a competitive APY and a reputation for excellent customer service.
10. Barclays: A global banking giant that offers a straightforward online savings account in the US with no minimum balance and a consistently competitive interest rate.

Frequently Asked Questions (FAQ)

Is my money safe in an online bank?

Yes. As long as the bank is FDIC-insured, your money is protected by the full faith and credit of the U.S. government, up to $250,000 per depositor, per institution. All banks listed here are FDIC-insured.

How do online banks offer such high interest rates?

They have significantly lower overhead costs because they don’t operate physical branches. They pass these savings directly to customers through higher APYs and lower fees.

What is APY (Annual Percentage Yield)?

APY is the real rate of return you will earn on your savings in one year, because it includes the effect of compound interest. A higher APY means your money grows faster.

Are there any fees or minimum balances?

The best high-yield savings accounts, including all the ones listed here, have no monthly maintenance fees and no minimum balance requirements to earn the advertised APY.

How do I deposit and withdraw money from an online bank?

You typically fund your account with an electronic transfer from an existing checking account. You can withdraw money the same way. Many online banks also offer access to a large, fee-free ATM network.

Can a high-yield savings account lose money?

No. Unlike an investment account, a savings account cannot lose its principal value. It is a deposit account, not an investment.

How often do the interest rates change?

The APY on high-yield savings accounts is variable, meaning it can change over time. The rates are influenced by the federal funds rate set by the Federal Reserve. At ShockTrail, we recommend checking rates periodically, but top banks tend to stay competitive with each other.

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