10 Best High-Yield Savings Accounts [October 2021]

Disclaimer: This post may contain affiliate links. Please read my disclosure for more information.

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Looking for the best high-yield savings accounts in October 2021? Then, you’ve come to the right place.

Within this post:

  • Find alternative savings accounts
  • Learn about emergency savings funds
  • Compare the 10 best high-yield savings accounts

Let’s get started!

Best Online High-Yield Savings Account

MMW Rating
4.8/5

Best Savings Account for Cryptocurrency

MMW Rating
4/5

Best High-Yield Savings Account Rates

Institution APY
SmartyPig by Sallie Mae
0.70%
Affirm
0.65%
Axos Bank
0.61%
Ivy Bank
0.61%
Prime Alliance Bank
0.60%
Monifi
0.60%
LendingClub
0.60%
ConnectOne Bank
0.60%
CFG Bank
0.59%
Comenity Direct
0.55%
BrioDirect
0.55%

High-Yield Savings Account Rates Updated on: 10/5/2021

Why Choose a High-Yield Savings Account Over a Regular Bank Savings Account?


A high-yield savings account such as Axos Bank typically has a higher APY rate than a regular savings account. 

The national average APY for a regular bank account is 0.06% APY versus the average APY for a high-yield savings account, which can vary from 1.3% to 1.51%.

What is a High-Yield Savings Account?


Other than that favorable feature, everything about a high-yield savings account is EXACTLY the same as a regular bank savings account.

It’s a no-brainer and should not cost you any money (if there are fees, you’re looking at the wrong high yielding online savings account institution).

Remember to look for the following defining features when applying for a high yield savings account:

Feature Description
APY
  • Your interest rate on your deposit.
  • Although the highest interest rate is always the goal - beware that some banks use their high-interest rates to lure you in and then pay higher bank fees.
  • Always look at the big picture.
Bank Fee
  • Read the fine print.
  • Bank fees include account opening fees, transaction fees or account maintenance fees.
  • There are high-yield savings accounts out there with no bank fees. 
Minimum Deposit Requirements
  • How much do you need to open your account?
  • Read the fine print.
  • Sometimes smaller deposits may lead to lower interest rates, increased bank fees, etc.
  • Ideally, your savings account will not have minimum deposit requirements.

What’s the Best High-Yield Savings Account for 2021?


Arguably, I have seen many reference Axos Bank as one of the top – if not the top – savings accounts for 2021.

How Much Interest Will I Earn With a $1,000 Deposit?

 

Let’s take a look at these parameters:

  • Deposit: $1,000
  • Interest rate: 1.51%

Then, you should expect to earn:

  • Amount earned: $15.10
  • Time Period: 12 months

Compare that $15 with the mere 60 cents you would earn from a regular bank savings account yielding only 0.06%. 

All you have to do is switch to an online high-yield savings account. It’s that simple.
the millennial money woman blog post "emergency savings fund growth chart"

When Should I Use a High-Yield Savings Account?


In short: Always.
Especially when you use the high-yield savings account as your emergency savings fund.

Why?
An emergency savings fund is designed to be used in the case of an emergency – so your cash will [presumably] sit in the account for a while.

"Why not have your cash earn some interest while it's waiting to be withdrawn for an unexpected expense?"

Ideally, the money you set aside in an emergency savings fund should be:

  • Cash
  • Readily accessibly
  • Only used in the case of an emergency

"A high-yield savings account is the perfect alibi."

This account will add more money to your pockets if you literally deposit your emergency savings funds and just let them grow.

Your money will be working for you – and at a higher return.

What is an Emergency Savings Fund?


You only use an emergency savings fund in the case of an 
emergency (and no, buying a new car or new outfit does not count as an emergency).

Do you have a savings account? What is your rate?

Related: Creating a Budget [7-Step Guide]
Related: Budgeting Rules of Thumb
Related: How to Stop Overspending
Related: How to Manage Money

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Fiona Smith
Fiona Smith
The Millennial Money Woman was founded by Fiona Smith. She holds her Master of Science Degree in Personal Financial Planning and has co-founded a local non-profit community teaching financial literacy to young professionals.

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