Best High-Yield Savings Accounts Paying 5%+ APY in 2026

Why your savings rate matters more than ever

If you're still earning 0.01% on cash at a megabank, you're losing roughly $500 a year on every $10,000 compared to what online banks are currently paying. With the federal funds rate still hovering near a multi-decade high, online banks are aggressively competing for deposits — and that's good news for savers who are willing to switch. The largest national banks have not meaningfully raised their advertised savings yields in years because they don't have to: most customers won't move. That inertia is exactly what an online challenger bank prices into its marketing budget.

Top picks paying 5%+ APY

These accounts are all FDIC-insured up to $250,000, charge no monthly maintenance fees, and require no minimum balance to earn the top rate:

• Varo Bank Savings — 5.00% APY on balances up to $5,000, then 3.00%. No fees, mobile-first.
• Newtek Bank Personal HYSA — 5.05% APY, no minimum, no monthly fee.
• Bask Bank Interest Savings — 5.10% APY, owned by Texas Capital Bank.
• My Banking Direct High Yield Savings — 5.15% APY for new customers, $500 to open.
• EverBank Performance Savings — 4.95% APY, no minimum after opening.
• CIT Bank Platinum Savings — 5.05% APY on balances above $5,000.
• UFB Direct Secure Savings — 5.25% APY, no monthly fee, free ATM card.

How to choose between them

Look at three things, in this order:

1. Is the APY a teaser or ongoing? Some banks advertise a high intro rate that drops after 6 months. Read the rate-sheet footnote, not the homepage.
2. What are the withdrawal limits? Federal Reg D is gone, but most banks still cap free outbound transfers at 6 per month.
3. How fast does external ACH settle? Slow 3-day transfers are a pain when you need cash. Ally and SoFi tend to be fastest; brand-new fintechs are often slowest.

What about FDIC coverage above $250,000?

If you have more than the insurance limit, split deposits across multiple unaffiliated banks, or use a sweep program like IntraFi (formerly CDARS/ICS) that spreads your balance across dozens of FDIC-insured banks while you still deal with one statement. Joint accounts get $250,000 per co-owner, doubling coverage at a single bank.

Don't fall for "relationship rate" gotchas

Some big banks dangle a higher savings APY only if you also hold a checking account, a mortgage, or hit a monthly debit-card spend. The fine print is rarely worth it. A clean, no-strings 5% account from an online bank almost always beats a tiered "premier" account at a brand-name bank after you factor in the maintenance fees you'll inevitably trigger.

How to actually make the switch

Open the new account online (most take under 10 minutes). Link your old checking via ACH. Move the savings balance, then redirect your automated transfers. Keep the old account open with $50 for 60 days while you confirm no recurring debits got missed.

Tax considerations on savings interest

Every dollar of HYSA interest is taxed as ordinary income at your marginal federal rate, plus state. On a $40,000 balance at 5%, that's $2,000 of interest — at a 22% federal bracket that's $440 in federal tax alone. If you live in a high-tax state, consider a Treasury money market fund (Vanguard VUSXX, Fidelity FDLXX) inside a brokerage account. The yield is nearly identical, and the interest is exempt from state and local tax because Treasuries are state-tax-exempt by federal law. For a California or New York retiree, that exemption alone can be worth 30–40 basis points.

Bottom line

If your savings is sitting at a 0.01% account, moving even a portion to a 5% APY account is one of the highest-return, lowest-effort financial moves you can make this year. On a $30,000 emergency fund, that's roughly $1,500 in extra annual interest for an afternoon of paperwork.