Which Savings Account Will Earn You The Most Money? [2024]

Interest rates have been rising quickly. This means it’s time for consumers like you to take full advantage. 

Although, despite the high-rate climate, the average savings account still has an interest rate of just 0.46%.

Trust me – you can do better than that.

Of course, there’s an important question that we still need to answer: Which savings account will earn you the most money? 

There are plenty of savings accounts out there, and they all have their strengths and weaknesses. Below, I’ll walk you through some of the most lucrative options.  

Which Savings Account Will Earn You The Most Money?

You can use money for lots of things: Buying a house, eating a delicious meal, traveling the world. 

But you can also use money for another purpose: To make more money! In fact, that’s one of the best ways to improve your financial well-being.

I’ll help you decide which savings account will earn you the most money. Read on – because your financial future is about to shine a whole lot brighter!

Certificates of Deposit (CD)

Best for: Depositing money you don’t need access to

Certificates of deposit, often called “CDs,” allow you to earn more in interest by temporarily giving up access to your funds.

Here’s how it works:

1. You deposit your money in a CD with a specific term length. CDs typically last anywhere from 3 months to 5 years.
2. For the duration of the term, you can’t access your money without paying a penalty. So, the idea is to leave the money untouched. 
3. The money you deposit will earn interest. Oftentimes (but not always), a CD with a longer term will have a higher annual percentage yield (APY).
4. When the term is up, you can collect the money you deposited – along with the interest you’ve earned.

Here’s an example: 

CIT Bank offers an 18-month CD that has a 4.60% APY (rate valid at the time of publication). 

Let’s say you deposit $1,000 into this CD. If you leave it alone for 18 months, you’ll end up collecting $1,069.79 – not a bad return for a totally safe investment. 

And the investment is totally safe. If you use an FDIC-insured bank (like CIT Bank) or an NCUA-insured credit union, your CD deposits are protected up to $250,000.

CD interest rates are often pretty high, and they can be even higher if you deposit lots of money in a “jumbo CD.” Check out this list of the best jumbo CD rates.

Pros	Cons
Interest rates are usually high – especially for longer terms and jumbo deposits.	There’s a penalty for withdrawing funds before the term is up.
Deposits are federally insured up to $250,000 (with most banks and credit unions).	Some CDs have a high minimum deposit amount.
The interest rates are fixed (so your returns are guaranteed).

High-Yield Savings Account

Best for: Maximizing earnings

Which savings account will earn you the most money? It’s probably the one that’s literally called a “high-yield” savings account. Because in the world of finance, the “yield” is how much money an investment earns.

High yields? Sign me up!

A high-yield savings account isn’t some complicated invention. It’s just a traditional savings account with an especially high-interest rate. 

While you can find them at all sorts of financial institutions, they’re commonly provided by online banks and credit unions. Why? Because these online institutions have less “overhead” (or operating expenses), which allows them to be more generous with their clients.

Now, don’t worry. There’s nothing inherently sketchy about an “online bank.” Lots of these businesses are FDIC-insured.

These days, some high-yield savings accounts are offering a 5% APY or higher. Take, for example, the Platinum Savings account from CIT Bank. It offers 5.05% APY for anyone who deposits $5,000 or more (rate valid at the time of this publication). So, if you can afford to deposit that much money, you could be in for some significant earnings!

To see exactly which savings account will earn you the most money, read this list of 5% interest savings accounts.

You might also hear about a high-yield savings account with a 7% interest rate. And while it does exist, you should be careful – because the strict restrictions make it impossible to earn significant amounts.

Check out this explanation of the 7% interest savings account to learn more.  

Pros	Cons
You’ll earn a lot in interest.	With online banks, you can’t visit a physical branch.
Online accounts are often convenient to manage.	It might be impossible to make cash deposits, so you’ll have to transfer funds digitally.
You can usually avoid monthly fees.

Money Market Account

Best for: Maintaining access to your funds

Money market accounts are a lot like traditional savings accounts, but they often have higher interest rates. That’s what makes them a great option for anyone wondering which savings account will earn you the most money.

And don’t be scared of the term “money market.” 

I know it can sound like the bank is going to risk your money in some volatile marketplace. But in reality, most money market accounts are FDIC-insured, so the first $250,000 you deposit will be completely safe.

Unlike a CD, a money market account will typically give you regular access to your funds – usually with some minor restrictions. While many accounts have balance requirements, you can probably find one that works for the deposit size you have in mind,

For example, let’s look at the money market account from Quontic Bank. 

This Quontic Bank account offers 5.00% APY (rate valid at the time of this publication), so you’ll be earning some serious interest. The minimum opening deposit is $100, which is pretty manageable. You can also withdraw or transfer funds six times per statement cycle. So, you can’t use it like a checking account, taking out money whenever you want, but you will maintain steady access to your money. 

This combination of high yields and constant access is what makes money market accounts so appealing. 

Pros	Cons
Interest rates are often higher than with traditional savings accounts.	Some accounts have monthly fees.
You can regularly access your money.	There are often minimum balance requirements.
The first $250,000 is usually FDIC-insured.

Cash Management Account 

Best for: Versatility 

When it comes to bank accounts, a cash management account is sort of a “jack of all trades.” These accounts are often offered by online investment platforms, and they’re worth considering as you research which savings account will earn you the most money.

Common features of a cash management account include:

• The ability to earn interest 
• Check-writing capabilities 
• A debit card that can be used at ATMs
• Digital money transfers

Not every cash management account includes all of these features, but most give you some sort of flexibility. 

For example, the Vanguard Cash Plus account doesn’t offer a debit card or checks, but it does allow you to connect your account to payment services like PayPal or Venmo. It also offers interest, with the APY rising as high as 4.50% (rate valid at the time of this publication). 

Read this Vanguard Cash Plus account review to learn more. 

Pros	Cons
Easy access to your money.	Most accounts are fully digital, so you can’t visit a physical branch.
Interest rates are often high.	Some accounts have monthly fees.
You can sometimes connect your funds to popular digital payment services.

Fixed Annuities

Best for: Long-term investments and retirement income

A fixed annuity is a little different from the other accounts on this list, but it’s still important to consider as you ask that all-important question: Which savings account will earn you the most money?

Here’s what makes fixed annuities unique:

• They’re offered by insurance companies, not banks or credit unions.
• You “buy them” rather than deposit money into them.
• The process is meant to take many years.

So here’s how a fixed annuity works. First, you’ll buy the annuity – either by paying a single lump sum or by making multiple payments over time. Then, the account accrues interest during the “accumulation phase.” 

When you decide you want to start collecting your money, the “payout phase” begins. During this stage, the insurance company sends you the money you’ve paid and the interest you’ve earned, but not usually all at once. Instead, you’ll receive regular payments that can last for a predetermined number of years or even the rest of your life.

As an example, let’s look at the “Pacific Expedition 2” fixed annuity from the Pacific Life Insurance Company. If you buy an annuity for $100,000, you’ll earn 3% interest compounded annually. This would give you $180,611 (before tax) in 20 years. 

Those are some serious returns – enough to improve your financial health and even help fund your retirement.

Pros	Cons
Interest rates are often higher than traditional savings accounts.	There are often maintenance fees.
The products are designed for long-term financial growth.	You could be charged for early withdrawals.
The returns are guaranteed.

Traditional Savings Account

Best for: Convenience

Which savings account will earn you the most money? It’s probably not a traditional savings account.

But the traditional model still has its advantages, especially if you want to enjoy a more “old-school” banking experience.

Let’s say you already have a checking account (and a personal relationship) with a local bank. If you open a savings account there, you can easily transfer money from one account to the other. You can also meet with an actual agent in person whenever you have questions or concerns.

That makes a traditional savings account a legitimate option, especially for anyone who prefers a handshake and a smile to an online portal. 

Pros	Cons
You can likely open an account at your local bank.	Interest rates are often significantly lower.
Transferring funds should be convenient.	You won’t take full advantage of the high-interest-rate environment.
You can often get in-person customer service.

Commonly Asked Questions About Which Savings Account Will Earn You The Most Money

Which Savings Account Will Earn You The Most Money Daily or Monthly? 

A high-yield savings account is the best way to earn money quickly while still having access to your funds every day. Some high-yield savings accounts have an APY (annual percentage yield) of over 5.00%. Read more about 5% interest savings account options.

To learn which budgeting app could best help you manage your finances and boost your savings, check out these comparisons of Rocket Money vs the competition:

• Rocket Money vs YNAB
• Rocket Money vs Simplifi
• Rocket Money vs Copilot

Then use a net worth tracker to see how your new financial strategies are paying off. 

Where Can I Get 7% on My Money?

Landmark Credit Union offers 7.50% APY (rate valid at the time of this publication) with its Premium Checking account, but the restrictions severely limit how much you can actually earn. If you’re wondering which savings account will earn you the most money, look for other accounts that offer around 5.00% APY. Learn more about both options here: 7% interest savings account and 5% interest savings account.

How Do I Get The Highest Return on My Savings?

If you want to maximize your returns without taking on any risk, consider a certificate of deposit (CD). The first $250,000 will be FDIC-insured, and you’ll probably get a higher interest rate than you would from a traditional savings account. 

What Account Grows Money The Fastest?

As far as risk-free accounts are concerned, a high-yield savings account is the fastest way to grow your money. Some accounts offer 5.00% APY. And unlike with CDs and fixed annuities, you should maintain fee-free access to your funds. Read more about 5% interest savings account options.

You can also make money fast with these banks with immediate sign-up bonus and with the Chime referral bonus.

What Accounts Have The Highest Returns?

Among risk-free investments, certificates of deposit (CDs) often have the highest returns. Just be prepared to leave your money untouched for the CD’s entire “term” because you’ll probably face a penalty if you withdraw funds ahead of schedule.

What is The Best Account to Put Money in to Make Money?

For most people, a high-yield savings account is the best option because it’s totally risk-free, interest rates can be high, and you don’t lose access to your money. But if you’re able to leave funds untouched for over 6 months, you could earn even more from a CD.