This Bank Has the Highest Savings Rate Right Now -- But There's a Catch

Savings account rates have been hot since early 2022. Now, as banks respond to the Federal Reserve's first rate cut in four years, savings rates are on their way down. But you can still find high-yield savings accounts with annual percentage yields over 5%. And right now LendingClub has the highest interest rate we've seen. 

LendingClub's LevelUp Savings account offers over 5% APY on your savings -- as long as you can afford the monthly deposit requirements.

What's the highest savings account interest rate right now?

Lending Club's LevelUp Savings account offers the highest savings rate available right now, at 5.30% annual percentage yield, or APY. However, to qualify, you must deposit at least $250 per month, and failing to do so will trigger a lower APY of 4.80%. 

We like that there isn't a minimum balance or deposit required to open this account, and there's no monthly maintenance fee. You get the LevelUp rate for the first two months your account is open. After that, your account is evaluated each month. You need to make cumulative deposits of at least $250 to earn the highest rate going forward.    

If you don't want the pressure of depositing $250 monthly to maintain 5.30% APY, you can still earn a high interest rate with a bank that doesn't have minimum deposit requirements:

APYs as of Oct. 11, 2024, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded monthly. 

How much can you earn in one year with LendingClub's savings account?

Say you open up a LevelUp Savings account at LendingClub and initially deposit $250. Your balance after one year will be $3,337.50 (with monthly deposits of $250). Remember, if you don't deposit $250, your account will automatically earn a lower rate of 4.80% APY. If you opt to earn the lower yield, your account balance after one year will be $262.27. 

Keep in mind that savings accounts earn a variable interest rate, so the APY can change at any time. And rates are likely to continue falling as experts predict two more Fed rate cuts before the end of the year. 

💰 Pro tip: You'll earn more if you set your savings on autopilot. Set up automatic recurring transfers from your checking account on a weekly, monthly or quarterly basis that works for your finances. All you have to do is find a figure that works well for you and let compound interest do the rest.

How much can you earn in one year with other top savings accounts if you deposit $250?

Here's how much you'll earn with the top high-yield savings accounts listed above, assuming you deposit $250 and don't contribute additional deposits throughout the year. We've also included earnings if you deposit $250 and then contribute an extra $250 a month.

APYs as of Oct. 11, 2024, based on the banks we track at CNET. Earnings are based on APYs and assume interest is compounded monthly. 

What to consider when choosing a high-yield savings account

High-yield savings accounts usually have higher APYs than traditional savings accounts, some of which offer as little as 0.01% APY. However, there are other factors you should consider when choosing the right account for your financial goals, including mandatory minimum deposits, transaction fees, accessibility and more. Here's what you should look out for:

• Minimum deposit requirements: Some high-yield savings accounts require a minimum initial deposit to open an account, but that's not always the case. Plenty of the top high-yield savings accounts we track at CNET have a $0 minimum deposit requirement. But some require amounts anywhere from $25 to $500. 
• Minimum balance requirements: Some high-yield savings accounts require that you meet a minimum balance requirement based on a daily, monthly or average basis. Dropping below a certain threshold could incur fees, so make sure you can meet the requirement should there be one. 
• Fees: Look out for accounts that charge fees for monthly maintenance, withdrawals or paper statements. Unnecessary fees can eat into your interest earnings, especially when plenty of banks don't have any.
• ATM access: Not every bank offers cash deposits and withdrawals. If you regularly deposit or withdraw cash, look for banks that use an ATM network or offer reimbursement for out-of-network ATM fees. 
• Branch access: Some of the best high-yield savings accounts are at online banks that don't have physical branches. If in-person banking is important to you, look for a bank with physical branches. 
• Withdrawal limits: Some banks charge an excessive withdrawal fee if you make more than six withdrawals per statement cycle. Consider how many monthly withdrawals you'll need to make before committing to an account with a strict withdrawal policy. 
• Federal deposit insurance: Look for high-yield savings accounts at banks insured by the Federal Deposit Insurance Corporation or credit unions insured by the National Credit Union Administration. Accounts at these institutions are protected for up to $250,000 per person, per account. 
• Customer service: Read online customer service reviews and consider customer satisfaction ratings to get a sense of what it will be like to work with the bank.

More savings advice:

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