The Best Cash Accounts Yielding Over 3%
- Monkey Budget Editorial Team
- Jan 11
- 2 min read
Updated: 3 days ago
For years, traditional checking accounts paid next to nothing. Even today, many big banks still offer yields close to zero — while quietly lending your money out at much higher rates. Newer banking models have flipped that equation, passing more of the yield back to customers.
Fintech platforms and cash-management accounts aren’t burdened by physical branch networks or legacy systems. Lower overhead and smarter use of short-term Treasuries allow them to offer meaningfully higher yields — often north of 3% — while keeping money liquid and accessible. In fact, many cash accounts averaged 4–5% APY during 2024 and 2025.
The Ideal Cash Setup
A simple strategy many savers use is separating spending money from earning money:
Keep about 20% of your cash in a traditional checking account for monthly expenses
Park the remaining 80% in a high-yield cash account
Earning ~3.3% on that 80% is orders of magnitude better than letting it sit idle in a standard checking account. And thanks to modern banking technology, transfers between accounts are typically fast, free, and frictionless.
Below are three strong cash-account options currently offering yields above 3% APY:
4.00% APY promo for 6 months
Zero fees or minimum balance
Up to $300 direct deposit bonus
Up to $3 million in FDIC insurance
3.90% APY promo for 3 months
Zero fees or minimum balance
Up to $8 million in FDIC insurance
2 ATM fee reimbursements per month
Cost: $5/month subscription fee
No minimum balance
Up to $2.5 million in FDIC insurance
Honorable mentions: Betterment, Ally Bank, and Marcus by Goldman Sachs also offer competitive cash and savings options with solid yields, strong digital experiences, and FDIC insurance.
Why These Accounts Beat Traditional Banks
Traditional checking accounts often pay 0.01%–0.10% APY, if anything at all. In contrast, earning 3%+ on cash means your money finally works for you — without locking it up or taking market risk.
A Quick Word of Caution
Rates change with Federal Reserve policy, and promotional boosts come and go. While these cash accounts consistently outperform traditional checking and savings accounts from a yield perspective, intro APYs expire, base rates adjust, and terms evolve. Always review current disclosures and do your own due diligence before opening an account.
Bottom Line
High-yield cash accounts are one of the simplest upgrades you can make to your financial setup. With no minimums, easy transfers, and yields that actually matter, newer banking models make it harder than ever to justify leaving cash stuck in low-earning accounts.
