Compound interest has been called the “eighth wonder of the world” for a reason. It rewards not just what you save but what your savings earn. Whether you’re building an emergency fund, saving for a big purchase, or investing long-term, choosing the right account with strong compound interest can accelerate your financial goals.
These are the best compound interest accounts based on annual percentage yield (APY), compounding frequency, account types, and accessibility for all income levels. From high-yield savings to cash management and certificates of deposit (CDs), here are the top picks for both short- and long-term savers.
How We Chose the Best Compound Interest Accounts
Our recommendations follow a methodology adapted for interest-earning accounts. We considered:
- Compounding frequency such as daily, monthly, annually
- Interest rates and APY
- Account flexibility like withdrawal limits, penalties
- Account types that offer savings, CDs, money markets, and investment hybrids
- Platform usability for mobile access, dashboard, and auto-transfer options
- Federal Deposit Insurance Corporation (FDIC)
- Minimum deposit requirements
Best Compound Interest Accounts
Whether you’re saving for retirement, building an emergency fund, or just trying to make your cash work harder, these compound interest accounts stand out for their high yields, low fees, and smart growth features.
SoFi Checking & Savings — Best for Checking and Savings Account in One
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Best For:
Best for Variety of Banking Services
securely through SoFi Savings’s website
SoFi offers a unique hybrid account that combines the benefits of high-yield savings with everyday checking features, all in one place. With up to 3.80% APY on savings and 0.50% on checking, SoFi is ideal for users who want to grow their money without separating it into multiple accounts.
Daily compounding, no fees, and FDIC insurance up to $3 million via partner banks make it one of the most flexible and rewarding choices for modern banking.
Key Features:
- Up to 3.80% APY (with direct deposit as of June 2025)
- Daily compounding interest
- No monthly fees or overdraft fees
- Automated savings features with savings vaults
- FDIC insurance via partner banks (up to $3 million total coverage)
Marcus by Goldman Sachs — Best for Dedicated Savings Goals
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Best For:
Excellent Credit Score
With no checking access, debit card, or mobile deposit features, Amex’s high-yield savings account stays laser-focused on saving. That makes it ideal for setting aside money for specific goals like a future trip or major purchase, without the risk of accidentally spending it. Backed by Amex’s trusted reputation and solid APY, it’s a simple, secure home for long-term cash.
Key Features:
- 3.65% APY (variable as of June 2025)
- Daily compounding, monthly payout
- No minimum deposit or fees
- FDIC insured up to $250,000
- Clean web and mobile dashboard
American Express® High Yield Savings — Best for AMEX Cardholders
The Amex High Yield Savings Account is ideal for Amex cardholders or loyalists who want to keep savings within a trusted ecosystem. It offers 3.60% APY with daily compounding, backed by Amex’s reputation for strong customer service. While it lacks checking features and mobile check deposit, it’s a dependable option for designated savings goals and long-term financial planning.
Key Features:
- 3.60% APY (as of June 2025)
- Daily compounding, monthly crediting
- No monthly fees or minimum balance
- 24/7 support and user-friendly interface
- FDIC insured up to $250,000
Ally Bank — Best All-Around Account for Compound Growth & Budgeting Tools
Ally’s Online Savings Account is built for savers who like to stay organized. With buckets for budgeting, boosters for automatic savings, and daily compounding at 3.50% APY, it’s a great full-package solution.
There are no monthly fees, and users can automate transfers, set goals, and access real-time charts of how their money grows.
Key Features:
- 3.50% APY (as of June 2025)
- Daily compounding, monthly payout
- Built-in tools for goals and auto-saving
- No monthly maintenance fees
- 24/7 customer support and strong mobile app
- FDIC insured up to $250,000
Wealthfront Cash Account — Best for High Yield and Investment Integration
Wealthfront’s Cash Account stands out by combining the flexibility of a checking account with the return of a savings product. It offers 4.00% APY, with daily compounding and no fees, plus integration with Wealthfront’s robo-advisory platform.
It’s perfect for users who want high-yield interest plus the ability to invest seamlessly when the time is right.
Key Features:
- 4.00% APY (as of June 2025)
- Daily compounding, no fees
- Free withdrawals, bill pay, and debit card
- FDIC insured up to $8 million via partner banks
- Instant transfers to Wealthfront investment accounts
CDs — Best for Long-Term, Fixed-Rate Compounding
If you want guaranteed returns and won’t need your money for a while, CDs offer some of the highest fixed APYs today.
Unlike savings accounts, CDs compound interest at regular intervals (monthly or daily), but they require you to lock in your money for a set term (like 12 or 24 months). They’re ideal for risk-averse investors seeking stability.
Top CD Options to Consider:
- Capital One 360 CD – 4.00% APY, 12-month term
- Discover Bank CD – 4.00% APY, 12-month term
- Bread Financial CD – 4.00% APY, 12-month term
Drawbacks:
- Early withdrawal penalties apply
- No ongoing deposit contributions
- Best for static savings goals (not dynamic portfolios)
Why Compounding Frequency & APY Matter
Compound interest isn’t just a savings feature, it’s an engine for long-term growth. The more frequently your interest is compounded, the more often your balance earns money on top of money. Daily compounding gives your deposits a micro-boost every 24 hours, which can add up significantly over time.
By contrast, monthly or quarterly compounding leaves more time between growth cycles, slowing down the overall acceleration of your returns. This is especially important for savers focused on maximizing passive earnings from HYSAs, CDs, or money market funds.
Consider a basic example: If you deposit $10,000 into an account with a 4.5% annual APY compounded monthly, your balance will grow respectably over five years. But if that same account compounds daily instead, you could end up with an extra $20 to $40 by the end of the same period even without touching the balance.
That might sound negligible, but that small delta gets dramatically larger as your deposit grows or your time horizon lengthens. Add regular contributions into the mix, and you’re unlocking compounding on both your principal and your recurring deposits, creating a true flywheel for wealth-building.
In higher-balance accounts or long-term savings strategies like Roth IRAs or college funds, even small differences in compounding frequency and APY can create hundreds or even thousands in added earnings. When evaluating compound interest accounts, don’t just look at the stated APY, dig into how often the interest is calculated and added.
Pair that with factors like low fees, flexible deposit terms, and FDIC insurance, and you’ll be on track to make the most of your money without taking on unnecessary risk.
Choose the Right Fit for Your Savings Goals
Whether you’re saving $1,000 or $100,000, choosing a high-yield, compound-interest account matters. For short-term flexibility, SoFi and Ally deliver seamless access and smart tools. For pure yield, Wealthfront, Amex and Marcus offer compelling returns.
Always check the latest APYs, compounding policies, and any fees that might reduce your earnings. And remember, FDIC insurance and platform trustworthiness are just as important as raw yield.
Frequently Asked Questions
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Compound interest is the interest you earn on both your principal and the interest that accumulates over time. The more frequently it’s compounded, the faster your savings can grow.
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Daily compounding is ideal, especially for high-yield savings. It gives your balance more chances to grow, versus monthly or annual compounding.
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Look for accounts with high APY, daily compounding, and no fees. Match the account type like high-yield savings or CDs to your savings goals and timeline.
