Saving for a financial goal can feel like it takes forever when you’re saving at your local bank. Fortunately, you have other options to grow your money faster, including 3% high-yield savings accounts.
HYSAs pay higher interest rates than typical banks, allowing you to grow your money faster and reach your financial goals.
Today there are many options, but I’ve rounded up the best banks with 3% interest savings accounts or higher.
7 Banks Offering 3% High-Yield Savings Accounts
If you’re looking for a bank with a 3% high-yield savings account or higher, I’ve narrowed down some options for you.
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Current Rate: 4.35%
Discover pays five times the national rate and doesn’t require a minimum balance. In addition, they charge no fees and make it easy to manage your savings.
Discover proudly advertises that they don’t charge any fees for banking services or require a minimum monthly balance. Discover compounds interest daily and pays it monthly, allowing your savings to grow faster.
2. Bask Bank
Current Rate: 5.10% APY
Bask Bank offers several options if you’re looking for a high-interest savings account. Their flagship program, the Mileage Savings Account, pays American Airlines miles rather than interest. You can use the miles like you would on your AA mileage credit card.
Bask Bank’s traditional high-yield savings account pays interest and works like a standard savings account.
Bask Bank makes it easy to save money without paying fees, and you can earn high-interest or AA miles. However, they reserve the right to close your account if it remains unfunded for 15 days. This applies when you open the account and while you own it, so always make sure it has money in it, no matter how much or how little.
If you choose the Mileage Savings Account, you’ll earn miles on the fifth business day of each month. So, for example, funds in your account in January earn miles by the fifth business day in February.
A downside of both accounts, though, is that it doesn’t come with an ATM card for the accounts. This means you can’t access your funds at an ATM; all transactions must occur online.
3. CIT Bank
Current Rate: 4.65%
The CIT Platinum bank account has a low minimum opening deposit requirement and pays high APYs. You must meet a certain balance to earn the high-interest rates, though. They offer daily compounding, the most frequent compounding you can get, and all deposits are FDIC-insured.
CIT Bank advertises a high 4.65% APY, which is great but is only available on balances over $5,000. If you have a balance below $5,000, you will only earn 0.25% APY. That’s a big difference!
You must deposit at least $100 to open an account at CIT Bank. After that, you can easily make transfers and use the mobile check deposit service to deposit checks. You don’t have to worry about a minimum ongoing deposit requirement; however, to earn the highest APY, you’ll need at least $5,000 in the account.
4. Lending Club
Current Rate: 4.65% APY
Lending Club isn’t a bank you’d typically think of for a high-yield savings account, but in 2021, they acquired Radius Bank and now offer personal banking products. It takes little time to apply for an account and take advantage of the following.
Lending Club offers FDIC-insured savings account with a high APY and no monthly service fees. You don’t have to meet a specific balance to waive the fees; they don’t charge any.
Unlike many banks on this list, Lending Club offers a free ATM card to make depositing and withdrawing cash easy.
You can make free internal and external transfers and manage your account online 24/7.
5. Marcus by Goldman Sachs
Current Rate: 4.40%
Marcus by Goldman Sachs offers a user-friendly, high-yield savings account with no fees and some great features, including a no-fee personal loan to qualified candidates.
Marcus by Goldman Sachs doesn’t require a minimum balance or charge fees. Everyone earns the same APY, and they make accessing your funds simple, even without an ATM card.
The mobile banking app lets you set up recurring deposits and track your savings goals. Then, if you need access to your funds, you can request the withdrawal online or over the phone via a mailed check, free wire, or electronic transfer. The same options are true for deposits.
6. Capital One
Current Rate: 4.30%
The Capital One 360 Performance Savings account pays a high yield with no fees or minimum balance requirements. In addition, they offer many services to make savings easy while keeping it low-cost to use their banking products.
Capital One proudly advertises its no-fee savings account with no worries. You don’t need a minimum balance; you can even set up an automatic savings plan to keep your savings growing.
Capital One has a mobile app allowing you to make mobile check deposits and manage your savings from anywhere. Opening an account and earning interest on your savings takes only five minutes.
7. UFB Direct
Current Rate: 5.25%
UFB Direct pays some of the highest APYs on our list. In addition, they have two account options for online high-yield savings, including traditional savings and a money market account.
UFB Direct offers ATM access which is unusual for online banks, so it’s a great feature, in addition to its high APY, and their current 5.25% APY is on your entire balance.
You don’t need a minimum deposit for the savings, but you need a $5,000 balance to waive the monthly fee on the money market account.
UFB doesn’t offer checking accounts, but they offer mobile deposits, making it easy to put money in your savings account.
Is 3% a Good Rate?
According to the FDIC, the national savings rate is 0.39%, so a 3% APY with an HYSA is great in comparison.
Fortunately, most online high-yield savings accounts pay 3% to 4% and sometimes more, depending on your balance and where you bank.
Remember to read the fine print, understand the bank’s APY, fees, and minimum deposit, and compare the features to other banks you are considering.
Pros and Cons of 3% Savings Accounts
High-yield savings accounts have many benefits, but there are some downsides to consider.
- Pays a much higher interest rate than standard banks allowing you to grow your money faster.
- Most online high-yield savings accounts compound interest daily.
- Many high-yield savings accounts don’t charge monthly service fees and don’t require minimum monthly balances.
- Most online banks offering HYSAs have a robust banking app making it easy to manage your money 24/7.
- You can usually set up automatic transfers or quickly transfer funds between accounts.
- Most high-yield savings accounts don’t have physical locations. To access your cash, you must electronically transfer funds or request a check by mail.
- High-yield interest rates can fluctuate, so there’s no guarantee you’ll always earn the high rates they pay today.
- Some accounts require high balances to earn the highest APY. If you don’t meet the balance requirement, you earn a much lower APY.
- You can only withdraw money up to six times a month. Any withdrawals exceeding that limit may incur a penalty or risk account closure.
Online high-yield savings accounts can help you increase your savings faster. Here are some common questions people ask.
Can My 3% Savings Rate Change on My Account?
Yes, your savings rate can change at any time. Your bank must alert you when the APY changes, and you are free to change banks, but there’s no guarantee that the rate will stay the same at any bank.
Are 3% Online HYSAs Secure?
Always ensure the online high-yield savings account you choose is FDIC-insured and uses bank-level security. This protects any information you share online, including your account or Social Security numbers.
Is Losing Money With a 3% High Yield Savings Account Possible?
Always use an FDIC-insured bank to ensure your money is safe. FDIC insurance protects depositors up to $250,000 per person. So if the bank goes out of business, your money is protected, and you’ll get it back.
Should You Open a 3% Interest Savings Account?
3% high-yield savings accounts are one of the best ways to grow your money quickly. Many accounts have no minimum balance requirement and don’t charge fees.
As long as you’re comfortable banking online and transferring funds electronically, you can earn even higher than 3% interest rates on your funds.