10 best high-yield savings account rates of January 2024 (up to 6.17% APY)

Indeed, following a year of rising interest rates, all of the 10 top-earning savings accounts promise depositors at least 5.30% annual percentage yield, or APY, in January. That said, many of these top-earning savings accounts come with some big catches (like only earning top dollar on a small amount), and many large brick-and-mortar institutions are still delivering less than 1% APY going into the new year.

Here’s why savings rates are so high in some spots, what rates might do in 2024 and how to find the best top-earning accounts. 

Why are many savings accounts paying so much now?

This has a lot to do with the Federal Reserve’s bid to curb inflation. “Savings account yields climbed in 2023 as the Federal Reserve continued their campaign of rate increases, raising rates four times during the year,” says Bankrate Chief Financial Analyst Greg McBride, adding, however, that “the Fed has been on hold since July and 2024.”

For context, the central bank began steadily raising its benchmark funds rate in early 2022 in an attempt to slow climbing inflation following the height of the COVID-19 pandemic. After multiple consumer stimulus bailouts in its wake, prices across the board surged to a 41-year high of more than 9% that July. Although inflation today is still above the central bank’s target 2% rate, prices have cooled significantly to 3.1% in November, according to the Bureau of Labor Statistics. 

A broad look at the savings landscape shows just how much deposit rates have climbed over the past year. After more than a year of steady rate hikes, the average savings account grew to 0.46% APY as of Dec. 18, according to the latest data from Federal Deposit Insurance Corp. (FDIC). This time last year, the industry average was just 0.30% APY, data show.

What might happen to savings account rates in 2024?

While a lower inflation rate may represent a pivot to rate cuts from the central bank in the year ahead, McBride says savings accounts are likely to continue to deliver a high rate of return to depositors. “We’ll see savings account yields come down a bit, but if you’re in a high-yield savings account, you will still be earning well in excess of inflation,” McBride says.

How to find the best rates on a savings account

As in 2023, your best bet for higher rates in 2024 may be with online banks, pros say. “Much as you can often find better pricing when shopping online, the same is true for bank accounts,” Zimmerman explains, adding that “by eliminating the costs associated with physical branches, online banks can afford to pay.”  (See some of the best savings account rates you can get now here.)

Since many large brick-and-mortar banks are not as desperate for additional deposits as their often smaller, online-only counterparts, Zimmerman says these mammoth institutions likewise have little incentive to offer competitive rates. “By contrast, online banks have a growing appetite for deposits and are willing and able to pay higher rates,” Zimmerman explains. 

That said, David Kline, a certified financial planner and private wealth advisor at Integrated Partners, notes that “there isn’t a one-size-fits-all solution,” and that “overall, we look to find the highest rate possible that works best for the client.”

When seeking that high rate, McBride says there are a few constants that everyone should consider. “The top-yielding, nationally available savings accounts are currently yielding 5% or more, are federally insured, and many of which can be had with minimum deposits of $100 or less,” he says. “Use that as your measuring stick for whether you’re in a competitive savings account, and if not, switch to one that is.”

10 of the best-paying high-yield savings accounts of January 2024

Here are the 10 best deposit rates for high-yield savings accounts in January 2024. All of these accounts are protected by either the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA), unless otherwise noted. It’s critical to read all of the fine print before opening an account to learn about any potential restrictions or hurdles.

Boeing Employees’ Credit Union: 6.17% APY

Though paying a generous 6.17% APY for a Member Advantage Savings account, this offer comes with a pretty sizable catch: it only applies to the first $500. Balances above that relatively low threshold earn a much lower rate of 0.50% APY. Another major restriction here is that members of this credit union must either live, work, worship or go to school in Washington state or other select counties in Oregon and Idaho. 

Digital Federal Credit Union: 6.17% APY

For a slightly higher maximum balance, DCU is also paying 6.17% APY, however this rate applies to the first $1,000 balance. You’ll also have to make a minimum deposit of $500 to get started. Any deposits that exceed the $1,000 maximum earn just 0.15% APY. You’ll also need to meet the membership requirements to join, which is only extended to those who live in select counties of Massachusetts or in a participating condominium community in New Hampshire. Members may also work for a select employer group or belong to a local participating organization.

Andrews Federal Credit Union: 5.75% APY

While this is among the best rates for a savings account this month, only account balances from $0.01 to $1,000 are eligible for the 5.75% APY. Those above that level, meanwhile, accrue interest at just 0.05% APY. Only those who work for one of a dozen eligible employer groups based in either Maryland, Washington D.C., Virginia or New Jersey need apply, as per the credit union’s membership requirements. However, if you are not employed by one of the listed groups here, Andrews FCU states that you can also qualify through the American Consumer Council.

Milli Bank: 5.50% APY

There are no fees, membership requirements or deposit minimums here. Just open an account on the Milli app, available on the Apple App Store or Google Play, and you stand to earn a highly competitive 5.50% APY. 

BrioDirect: 5.35% APY

Deposit at least $4,000 and maintain a $25 balance at this high-yield savings account at BrioDirect, an online brand of Stamford, Connecticut-based Webster Bank, and you’re eligible for this 5.35% APY. 

North American Savings Bank: 5.35% APY

With a minimum deposit of $25,000, the savings account at NASB delivers a highly competitive 5.35% APY. If you don’t live near one of the 10 brick-and-mortar locations in the Kansas City metro area, this account is still accessible online. 

My Banking Direct: 5.35% APY

Bring at least $500 at this online service of Flagstar Bank N.A. and you’re eligible for opening a high-yield savings account and start earning a high 5.35% APY. There are no monthly fees and all balances greater than $1 earn the promoted interest rate after the initial $500 deposit.

Customers Bank: 5.32% APY

This savings account is one of the least restrictive options for a high-yield savings account on the market today. That’s because you’ll only need $1 to start earning a high 5.30% APY. There’s also no balance restrictions and no monthly maintenance fees, so feel free to add as much cash you want to this account and still earn an industry-leading savings rate.

RBMAX: 5.32% APY

The rate at this RBMAX Savings Account comes in at a high 5.32% APY. This relatively strings-free option requires depositors to make a $1 minimum opening deposit.

Ivy Bank: 5.30% APY

Make the minimum $2,500 opening deposit and earn a high 5.30% APY on balances all the way up to $1 million with this high-yield savings account. Balances that do not meet that minimum threshold earn just 0.05% APY. Transfers and withdrawals here are limited to six per calendar year.