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- High-yield savings accounts have hit a new record high rate: 5.50% APY.
- The highest rate is offered by banking app Milli.
- Other online institutions have high-yield savings accounts paying over 5% APY, too.
High-yield savings accounts are now paying up to 5.50% APY.
Milli, a division of First National Bank of Omaha, is offering 5.50% APY on its Savings Account. There is no minimum balance requirement to earn interest. You just need to download the Milli app.
Milli is a mobile-only platform with a Spending and Savings Account. The Spending Account comes with a debit card and is primarily for managing your expenses. This account doesn't pay interest, though.
Meanwhile, the Savings Account pays a high rate and has a savings tool called Jars. Jars help you save and track up to five specific financial goals, and you'll earn 5.50% for the balance in each Jar.
Milli Spending and Savings Accounts are provided by First National Bank of Omaha, an FDIC-insured institution. Up to $250,000 for an individual account.
Other financial institutions offering over 5% APY
Savings interest rates have gone up over the last few years as a result of decisions made by the Federal Reserve. The Federal Reserve has raised interest rates several times in 2022 and 2023 to combat inflation.
The average savings account pays 0.46% APY, according to the FDIC. However, many online banks pay significantly more than this. While Milli pays the highest savings rate right now, other banks aren't far behind:
- Customers Bank, powered by Raisin: 5.30% APY
- UFB Direct Secure Savings Account: 5.25% APY
If you're looking for a savings account from a popular online bank, you can still find savings rates that are well above the national average. Here are some institutions that offer competitive rates:
- CIT Bank Platinum Savings: 5.05% APY (with $5,000 minimum balance)
- Betterment Savings Account: 4.75% APY — new users can earn 5.50% (variable) APY for the first three months with a qualifying deposit
Note that there is, in fact, a higher rate available than the 5.50% APY offered by Milli: Digital Federal Credit Union is offering 6.17% APY on $1,000 and 0.15% APY on the remaining balance. However, terms are restrictive. You must become a member of the credit union to open this account, and membership is limited. You also only earn the 6.17% APY on your first $1,000, unlike Milli or similar banks that will pay the high rate on your entire balance.
When choosing a high-yield savings account, you'll want to pay attention to more than the interest rate. Minimum balance requirements, monthly service fees, and accessibility to the account may also impact your decision. Furthermore, make sure that your account is federally insured by the FDIC or NCUA. These federal agencies protect up $250,000 per depositor for bank accounts.