Let’s be frank — most savings accounts don’t exactly scream “money-making machine.” Some barely whisper it, actually. But what if your hard-earned cash could finally start pulling its weight? Finding the right type of savings account that earns a higher interest rate than a standard savings account might just be your ticket to actual growth — without breaking a sweat.
Ready to uncover the secrets of top high-yield savings accounts, and learn which savings account could earn you the most money? Let’s go.
Need a better savings account? MoneyLion offers a convenient marketplace to compare high-yield savings accounts from our trusted partners that could help grow your money.
1. Understand the different types of savings accounts
Not all savings accounts are created equal. Understanding the differences can be the key to finding the one that actually works for you. Once you’ve nailed down the type of account that fits your needs, you can focus on hunting for the best rates to maximize your returns. Here’s a quick rundown of your options.
Traditional savings accounts
Traditional savings accounts are the easiest to access since your money isn’t tied up for a specific period. Most banks let you withdraw funds whenever you need them — though you might get hit with fees if you go over the monthly withdrawal limit.
The downside? The interest rate is usually underwhelming (and that’s an understatement), averaging around 0.43% APY. In short, these accounts are great for convenience but not so much for growing your money.
Recommended: Which Savings Account Will Earn You the Least Money?
High-yield savings accounts
A high-yield savings account, also known as a high-interest account, is like a traditional savings account but with a much-needed glow-up. You can still access your money whenever you need it, but here’s the kicker: the interest rates can be up to 12 times higher than the national average. That’s right — your money finally starts pulling its weight.
However, there’s a twist. High-yield accounts usually come with variable interest rates, meaning what you earn this month might look different next month (sometimes better, sometimes not). And while these accounts are a win for higher returns, some may require a bigger initial deposit to get started. It’s a trade-off, but one that could seriously pay off. See the top high-yield savings accounts here.
Money market accounts
Money market accounts are a step up from traditional savings accounts, offering higher yields and added flexibility. They let you invest in short-term bonds and other cash equivalents while still giving you access to your funds when needed.
These accounts often come with perks like check-writing privileges and debit card access, making them versatile for those who want more than just a basic savings account. However, they do come with variable interest rates, so your earnings can fluctuate. If you’re looking for a solid mix of higher returns and easy access, money markets are worth exploring.
Certificate of deposit (CDs)
Certificates of deposit (CDs) are a great option for savers who can afford to lock up their funds for a set period, ranging from six months to a few years. In exchange, you get some of the highest fixed interest rates available.
The trade-off? Early withdrawals typically come with penalties, so these accounts work best for money you don’t need immediate access to. With CDs, you’ll know exactly how much you’ll earn by the end of the term, making them a reliable choice for predictable growth.
Other types of savings accounts
Besides the accounts listed above, sometimes a specialized account is the way to go. Consider these options:
- Health Savings Accounts (HSAs): Designed for people with high-deductible health plans, HSAs let you save pre-tax money for medical expenses.
- Educational Savings Accounts (ESAs) or 529 Plans: Perfect for saving toward education costs, these accounts offer tax advantages to help you reach your goals faster.
2. Research and compare interest rates
Not all savings accounts are created equal, especially when it comes to interest rates. High-yield savings accounts and CDs often lead the pack, while traditional accounts tend to fall behind. Take the time to compare rates across banks and financial apps to find the best fit for your needs.
Keep in mind that terms and conditions, like penalties for early withdrawals or minimum deposit requirements, can vary. It’s always a good idea to read the fine print before committing.
3. Assess fees, minimum deposit, and maintaining balance requirements
Nobody likes hidden fees, and they can add up quickly if you’re not careful. Look for accounts with low or no fees, reasonable minimum deposits, and manageable balance requirements. Avoiding these extra costs will help ensure your savings grow as much as possible.
4. Consider convenience and accessibility
A good savings account should work for you, not against you. Online banks and apps often offer user-friendly tools, like goal-specific sub-accounts or automatic savings features, that make managing your money easier. No-penalty CDs and faster application processes are also worth considering if accessibility is a priority.
5. Look for benefits and additional features
The best savings accounts go beyond just holding your money. Look for features like automatic transfers, budgeting tools, or personalized savings goals. These extras can make it easier to stay on track and maximize your savings.
6. Research the bank or financial institution
Make sure your chosen bank or financial institution is trustworthy and reputable. Look for Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA) insurance to ensure your deposits are protected up to $250,000. Online banks often provide higher interest rates and fewer fees, making them an excellent alternative to traditional banks.
Choosing the best savings account for you
Ultimately, the best savings account depends on your financial goals:
- Need flexibility and accessibility? A high-yield savings account or money market account might be the way to go.
- Looking for predictable returns? A CD with a fixed interest rate could be your best bet.
- Saving for something specific? Consider specialized options like HSAs or 529 Plans.
Once you know what you’re looking for, use tools like MoneyLion’s marketplace to compare accounts and find the one that fits your needs.
Tips for maximizing savings
Choosing the right account is just the beginning. To truly grow your savings and set yourself up for financial success, consider these strategies:
1. Automate savings deposits
Consistency is key when it comes to building savings. Set up automatic transfers from your checking account to your savings account on a weekly or monthly basis. You can also allocate a percentage of your paycheck to go directly into your savings account. This “set it and forget it” approach ensures you’re always contributing without relying on willpower. Bonus tip: Pair automated deposits with a high-yield savings account for even better growth.
2. Track spending with the convenience of one app
An out-of-sight, out-of-mind approach has its limits. You may spend more money than necessary if you don’t keep track of your expenses. Several budgeting apps make it easy to track your spending across several categories. Many banks and financial apps have built-in budgeting features that give you a snapshot of your spending. Tracking something makes improvements more predictable and likely.
With the MoneyLion app, you can link your accounts and see your finances in one convenient place for better financial management.
The ability to link a bank account to your MoneyLion app depends on the institution. Some banks have connectivity or network issues that prevent account links from taking place.
3. Find ways to eliminate spending
Take a hard look at your monthly bills. Are you paying for subscriptions you don’t use or services you can live without? Cancel them. Small, recurring expenses can snowball over time. Redirect that money into your savings account instead. (Pro tip: Apps like Truebill or Rocket Money can help identify sneaky charges and simplify cancellations.) Additionally, consider renegotiating bills for services like cable or insurance to save even more.
4. Take advantage of employee 401(k) match
If your employer offers a 401(k) match, it’s essentially free money — don’t leave it on the table. Check your company’s matching policy and contribute enough to maximize this benefit. Even if retirement feels far away, employer-matched contributions are one of the easiest ways to grow your savings quickly. If you’re unsure where to start, consult your HR department or a financial advisor.
5. Create passive income streams
Want to supercharge your savings? Tap into passive income streams. Options like rental properties, dividend-paying stocks, or creating digital products (like eBooks or courses) can provide steady cash flow without requiring constant effort. If real estate or investing feels overwhelming, start small with platforms like Etsy for selling digital items or apps like Acorns for automated investing. Or try your hand at a new side hustle. Whatever you choose, funnel these extra earnings directly into your savings account.
Make your savings work smarter, not harder
Saving money isn’t just about stashing cash — it’s about making smart choices that help your money grow and work for you. Whether you’re aiming for flexibility with a high-yield savings account, predictability with a CD, or tax benefits with a specialty account, the key is finding the right fit for your financial goals.
But don’t stop there. Pair the right account with strategies like automating deposits, tracking spending, and exploring passive income to supercharge your savings. Every dollar saved today brings you one step closer to financial freedom tomorrow.
Ready to take the next step? Use MoneyLion to compare top high-yield savings accounts and start maximizing your money now.
FAQs
What are 2 key features you should look for when opening a savings account?
High interest rates and low fees are critical for maximizing your savings. A competitive APY helps your money grow faster, while low fees ensure you keep more of your hard-earned cash.
Which bank gives 6% interest on a savings account?
While rare, some online banks and credit unions offer 5% interest savings accounts, and some even can have promotional rates close to 6%. Know that these rates can fluctuate based on the prevailing interest rate set by the Federal Reserve. Always check the fine print and ensure the rate applies to your balance size and isn’t temporary.
What 3 variables determine how much interest a person could earn from a savings account?
The interest rate, account balance, and how long the money remains in the account are the main factors. Higher rates and larger balances left untouched for longer periods lead to greater earnings.
Should I go for a government-backed savings account like a Treasury bond?
Treasury bonds can be a safe option for those looking for guaranteed returns, but they usually require longer lock-up periods. Compare them with high-yield accounts to decide which aligns better with your savings goals.
Are there any risks associated with choosing a savings account with a higher interest rate?
Higher interest rates can sometimes come with stricter requirements, such as higher minimum balances or deposit amounts. Always review the account terms to ensure you can meet the conditions without incurring penalties.
Can I switch savings accounts if I find a better option for earning money?
Yes, switching accounts is often a smart move if you find better rates or features elsewhere. Just check for transfer fees or requirements to avoid unpleasant surprises during the switch.
