My Savings Account Doesn't Have the Highest APY. Here's Why That's OK
KEY POINTS
- As of this writing, our favorite savings accounts offer APYs as high as 5.31%.
- There's more to consider when deciding on a bank than the absolute highest-possible yield.
- I get significantly less than the highest yield in the industry, and I'm extremely happy with my banking choice.
Between the rising-rate environment of the past few years and the increasing choices in online banking, high-yield savings accounts offer some of their best interest rates in a generation. In fact, I'm in my 40s, and I currently have a better savings account interest rate than I did at any time since opening my first account in the mid-1990s.
While there are some excellent high-yield savings accounts available right now, it's important to keep in mind that yield isn't everything. In fact, my savings account pays about 0.80 percentage points less than the highest-yielding account on our best savings account list, and I couldn't be happier with it.
Reasons I'm fine with a slightly lower APY from my savings
To be perfectly clear, savings account interest rates can and do change over time. But as of this writing, the highest-APY savings account on our list has a 5.31% yield. Meanwhile, I choose to use the SoFi Checking and Savings account instead, and I currently earn up to 4.00%² APY on my savings balance.
On SoFi's Secure Website.
Member FDIC.
SoFi Checking and Savings
On SoFi's Secure Website.
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- Competitive APY on both Savings and Checking
- No account fees³
- Welcome bonus up to $300 (direct deposit required)¹
- Early access to direct deposits⁶
- Tools to help you track savings goals
- Unlimited number of external transfers (up to daily transaction limits)
- ATM access⁵
- FDIC insured (up to $2M with opt-in to SoFi Insured Deposit Program)⁴
- Combo account only; no stand-alone savings or checking
- Maximum Savings APY requires direct deposit
- Overdraft protection⁷ requires monthly direct deposit minimum
- No branch access; online only
For those who plan to set up direct deposit with their new account, we think SoFi Checking and Savings (Member FDIC) is hard to beat. Not only does this savings account offer a strong APY, but the linked checking account earns an above-average rate, too -- which is a rare perk. Plus, there's the opportunity for a bonus of up to $300¹ and a long list of extra account features. Frankly, it's the kind of combo that could make it worthwhile to switch banking relationships.
You can earn the maximum APY either by making direct deposits into checking or savings, or by depositing $5,000 or more every 30 days. Learn more.
SoFi disclosure:
¹ New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC.
SoFi members with Direct Deposit can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.00% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 12/3/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
² SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits. Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
³ We do not charge any account, service or maintenance fees for SoFi Checking and Savings. We do charge a transaction fee to process each outgoing wire transfer. SoFi does not charge a fee for incoming wire transfers, however the sending bank may charge a fee. Our fee policy is subject to change at any time. See the SoFi Checking & Savings Fee Sheet for details at sofi.com/legal/banking-fees/.
⁴ SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional
FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at SoFi.com/banking/fdic/terms
See list of participating banks at SoFi.com/banking/fdic/receivingbanks
⁵ We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
⁶ Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
⁷ Overdraft Coverage is limited to $50 on debit card purchases only and is an account benefit available to customers with direct deposits of $1,000 or more during the current 30-day Evaluation Period as determined by SoFi Bank, N.A. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the“30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Members with a prior history of non-repayment of negative balances are ineligible for Overdraft Coverage.
However, there are a few good reasons why I'm fine with a somewhat lower (but still highly competitive) interest rate. This isn't an exhaustive list of things I like about SoFi®'s savings product, but it represents some of my biggest deciding factors.
All-in-one financial app
As a personal preference, I like to keep the bulk of my financial accounts at the same institution. Not only is the SoFi Checking and Savings account designed to handle all of my everyday money needs, but through SoFi®'s app, I can (and do) have brokerage accounts, including a retirement account. I can apply for a mortgage or loan, get insurance quotes, and much more.
Great ATM access to money
Because it's a checking and savings account combination product, I get better ATM access to my money than most savings accounts offer. There are more than 55,000 ATMs in the Allpoint network that I can use for free.
Great customer service
If I have questions or problems with my account, SoFi® has customer service representatives available by phone seven days a week, including evening hours. The chat support feature is excellent, and you can even get support through X (formerly Twitter).
Easy to deposit money
With some of the highest-yielding online savings accounts, there is one way to deposit money -- by transferring from a linked checking account. With SoFi®'s app, I can certainly transfer money from another account, but I can also move money from my brokerage account or use a mobile check deposit.
One key point to keep in mind is that there are some excellent online banks that rival the features and services of the large branch-based banks, but with much higher yields. On the other hand, some of the accounts with the top savings rates are significantly less convenient in a few big ways.
The bottom line
I realize this discussion has been rather SoFi®-specific, but this same concept applies no matter where you ultimately choose to establish a banking relationship. There are several excellent choices on our top savings account list, and the highest-yielding option might not be the best for you.
The main takeaway is that yield isn't everything. Unless you're simply trying to maximize your savings APY, there's a lot more to consider before deciding on the best high-yield savings account for you.
Our Research Expert
Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina, and has been writing about personal finance since 2011.
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