5 Savings Accounts That Will Earn You the Most Money in 2024

In 2024, choosing the right savings account is more critical than ever. With the array of options available, knowing which savings account will earn you the most money can significantly impact your financial growth. Traditional brick-and-mortar banks are steadily making way for more lucrative alternatives, like online-only and high-yield savings accounts, known for offering higher Annual Percentage Yield (APY).

Here are the top savings accounts that will make you the most money:

Olly / Pexels / Compared to traditional brick-and-mortar banks, only-only and high-yield savings accounts have higher Annual Percentage Yield. In other words, these savings accounts will make you the most money.

High-Yield Savings Accounts

High-yield savings accounts stand out as a premier choice for those looking to maximize their earnings. These accounts traditionally offer APYs much higher than their conventional counterparts. For example, where a standard savings account might offer an APY of 0.01%, high-yield savings accounts can offer rates as high as 2% or more, depending on the economic climate and Federal Reserve policies.

Apart from that, high-yield savings accounts are typically associated with banks that prioritize online operations, which reduces their overhead costs and allows them to pass those savings on to you in the form of higher interest rates. These accounts are ideal for savers who are comfortable managing their finances online.

Online-Only Savings Accounts

Next up: Online-only savings accounts are similar to high-yield accounts in that they often offer competitive interest rates that surpass those of traditional banks. Since these banks do not have the expenses associated with maintaining physical branches, they can offer better rates and lower fees. This setup makes them an attractive option for tech-savvy users who prioritize convenience and efficiency in their banking experience.

Freepik / Since online-only savings accounts offer higher APY, they are your best bet if you want to double your savings.

Plus, online-only banks often lead the charge in banking innovation. Thus, they have features like automatic savings tools, customized alerts for spending and saving, and seamless integration with budgeting apps.

Money Market Accounts (MMA)

These are a type of savings account that typically offers higher interest rates compared to basic savings accounts, with the added benefit of check-writing privileges and debit card access. MMAs often require higher minimum balances to earn the optimal APY, making them suitable for those who can maintain a significant sum in their account and want to benefit from higher returns.

However, the APY for MMAs varies based on the balance and the institution, but it is generally between high-yield savings accounts and traditional savings accounts. These accounts are particularly appealing to individuals who need a combination of liquidity and income, as they offer easy access to funds while still earning a respectable return.

Share Certificates

Share certificates, known in many circles as certificates of deposit (CDs), are timed deposits that offer a fixed interest rate over a specified period. They are traditionally offered by both banks and credit unions, with credit unions referring to them as share certificates.

Clay / Unsplash / Share Certificates AKA Certificate of Deposits (CDCs) offer more APY than traditional savings accounts.

Nevertheless, the benefit of investing in share certificates is the predictability of returns. They provide a safe investment avenue, especially in volatile economic times, as they guarantee a fixed return at the end of the term. However, it is crucial to consider that withdrawing money before the term ends can result in penalties, which could negate the interest earned.

Basic Savings Accounts

Finally, basic savings accounts are the most straightforward type of savings account, offered by virtually all financial institutions, from large banks to local credit unions. While they provide a safe place to store your money, they typically offer the lowest interest rates, which might not be ideal for those wondering which savings account will earn you the most money.

However, they do offer a high degree of liquidity, allowing easy access to funds. This means, basic savings accounts will make you more money if you understand the algorithms.