High savings. Low spending. We’ve established that is the key to financial independence. Over the past few months we’ve discussed a number of passive investments ideal for growing wealth, primarily through index and exchange traded funds. 

These are super vehicles, but even when the average long-term investment return is 7 percent, there are plenty of years when returns are significantly more modest or even negative. 

That volatility makes equities a poor fit for money you’ll need in a year or two — to say nothing of the trading frictions and capital gains exposure that come with
selling to access funds. 

Medium term investment factors

The factors to
weigh for medium-term money:

• Accessibility: The cost and effort of retrieving funds is a top priority. Equities require a sale, potentially a fee, and a
  capital gains event (which could impact taxes). 
• Stability: Risk is the factor that determines returns. Generally, the higher the risk, the higher the return. A crypto currency might return 1000 percent, but it will more likely go to zero. Just ask anyone who bought at the top of the market in February 2018. At the opposite end of the spectrum, you could bury your money in a lock box in an isolated corner of Antarctica. Excluding the polar bear attacks and judgmental penguins, the risks of monetary loss minimal. But the returns will be zero. Finding an investment with minimal risk means modest returns. That’s the trade-off.
• Investment return: Risk mitigation doesn’t mean abandoning return. It just means the realistic range is narrower.  

Investment priorities will dictate the ranking of these factors. One of the most accessible and stable investments is a savings account. If you need to get the money out quickly it is easy to withdraw. 

As mentioned previously, Mr. FIRE Power is currently saving for a down payment on a second house.  The best investment vehicle for that year of saving (we’re in month six, if anyone is curious) is a savings account. 

Most Americans don’t shop around for a better savings rate. The proof is in the rates the big banks get away with. According to the FDIC, the national average savings rate as of April 2026 is 0.38 percent. That has crept up from the near-zero rates of the late 2010s, but it’s still dramatically below what’s available with minimal effort. After a year, $10,000 in an average account earns you $38. 

You probably rely on one or two banks to issue credit cards and offer loans. Whatever extra cash is lying around is stored in that same bank’s savings account. Recognizing that most Americans will favor the convenience of a one-stop banking solution to multiple accounts, the big banks are able to offer these low interest rates. 

You can do better. 

The online-only bank

The great news for the consumer is relatively new online-only banks offer savings account options with significantly higher returns than the big banks. These banks offer a competitive interest rate because physical infrastructure is limited, all correspondence is digital (no mailings), and much of the customer service interaction is online. All that saves cost. Those savings are passed on the to consumer in the form of higher annual percentage yields (APY, or interest).

The trade-offs are familiar: limited or no ATM access, and in some cases restrictions on transfer activity. For money sitting in place to grow, that’s typically a non-issue.

A note on the broader environment: rates today are very different than they were when this post was first written. After the Fed’s tightening cycle in 2022–2023 and three cuts in 2025, the federal funds target now sits at 3.50–3.75 percent. The Fed
has held steady through the first three meetings of 2026. As a result, top
high-yield savings rates have hovered in the 4 to 5 percent range, but they’re
trending modestly downward. Rates are variable — what’s listed here is current
as of mid-May 2026 and could move quickly if the Fed cuts again.

Lets take a look at some of the top contenders today.

Highest interest savings accounts

Varo Money High-Yield Savings: up to 5.00% APY

Varo currently sits at the top of the broad market for headline APY, offering 5.00% on
balances up to $5,000 (with a lower rate above that). No monthly fees and no minimum deposit. The catch is the balance cap — this is really an account for the first few thousand dollars of an emergency fund, not a place to park serious cash. Pair it with one of the accounts below if you need to scale up.

Pibank Savings: 4.40% APY

Pibank earns one of the highest rates on the market with no balance cap, no minimum deposit, and no monthly fees. The single best option for savers who want one straightforward account at one of the highest available rates.

LendingClub LevelUp Savings: 4.00% APY (with $250/month deposit)

LendingClub’s LevelUp account offers a top-tier APY conditioned on depositing at least $250 per month — a soft commitment device for savers building toward a goal. If a deposit is skipped, the rate steps down to a still-competitive APY. No monthly
fee, no minimum balance.

SoFi Checking and Savings: up to 4.00% APY (with direct deposit)

SoFi pairs checking and high-yield savings in one account. To earn the headline 3.30% standard APY on savings (with promotional boosts that can push it up to 4.00%), you need to either set up direct deposit or meet the $5,000-in-31-days deposit threshold. Without those qualifications, the rate drops to 1.00%. There are
also direct deposit cash bonuses available. A good fit if you’re willing to
consolidate banking, less attractive if you want a standalone savings account.

Vio Bank Cornerstone Money Market Savings: 4.03% APY

Vio earns the full advertised rate on the entire balance — no tiers, no caps, no monthly fees. The account name says “money market” but functions effectively as a
high-yield savings account. A clean, no-strings option from an online-only
division of MidFirst Bank.

Marcus by Goldman Sachs Online Savings: 3.50% APY

Marcus appeared on the original 2019 version of this list at 2.25%. It’s now at 3.50% —competitive but no longer at the top of the market. No monthly fees, no minimum
balance. Marcus remains a strong choice for savers who value a long track
record and a recognizable brand over chasing the absolute highest rate. No
checks, no ATM access. (I’ve personally held a Marcus account since 2019 and
it’s continued to work as advertised.) 

Barclays Tiered Savings: 3.65% APY

Barclays remains on the list, at 3.65% APY today versus 2.20% in 2019.
No minimum balance to open, no monthly fees. Same caveat as before, the balance
must remain above about 50 cents for interest to post.

Conclusion

With the wealth of online options available there is no excuse for making less than 2 percent interest on your savings account today. Open an account today to get your money working for you.