Upgrade’s savings account options offer high APYs with no fees, but there are balance thresholds and direct deposit prerequisites to get the best rates
Upgrade Savings Rates (February 2024)
Written by:
Myriam Robinson-Puche
Myriam Robinson-Puche
Edited by:
Jared Macarin
Jared Macarin
Updated:
Apr 30, 2024
Key Takeaways
- Upgrade’s Premier Savings account has one of the highest annual percentage yields (APYs) for balances of at least $1,000, at 5.21%.
- Other savings options from Upgrade are its Performance Savings and Everyday Savings. They can only be opened in conjunction with a checking account.
- Upgrade could be good for those who prefer online banking and either have savings of at least $1,000 or are also looking for a new checking account.
Upgrade is a financial technology company that partners with a bank to issue a variety of consumer banking products. Its first products were loans and credit cards, but Upgrade soon expanded into checking and savings accounts backed by its partner, Cross River Bank. This gives Upgrade customers FDIC insurance to at least the legal limit of $250,000 per depositor.
Along with that protection, Upgrade’s three savings accounts also offer a high APY, competitive with high-yield savings accounts from other financial companies.
Below, we at the MarketWatch Guides team will break down all three so you can make an informed financial decision on whether this online-only financial institution will fit your banking needs.
Upgrade Savings Interest Rates
The annual percentage yield of a savings account can help depositors earn a decent return on their savings. This is helpful to not only encourage larger balances but also to protect them from losing value due to inflation.
Upgrade’s savings account APYs are variable, meaning they could either increase or decrease at any point of an account’s duration.
As is the case with other high-yield savings accounts (HYSA), Upgrade’s interest rates are closely related to broader economic interest rate trends. For instance, the Federal Reserve, i.e. the United States’ central bank, sets its federal funds rate to influence inflation and economic growth. As a result, many banks, credit unions and fintech companies will raise or lower their interest rates in tandem.
Your APY on an Upgrade savings account also varies based on your balance, direct deposits and other accounts you have with Upgrade.
| Account Name | APY* | Minimum Opening Deposit |
| Premier Savings | 5.21% on balances of $1,000 or more, otherwise 0% | None |
| Performance Savings | 1.50% with a Rewards Checking Plus account, 5.07% with Reward Checking Plus and $1,000 of monthly direct deposits | None |
| Everyday Savings | 5.21% with Rewards Checking account | None |
Upgrade Savings Rates vs. Competitors
Upgrade’s savings interest rates are higher than some of its competitors, however, some Upgrade savings accounts have prerequisites to get the best APY. Other high-yield savings accounts, like those issued by Ally, American Express, Discover and UFB Direct, don’t attach any strings to their top interest rates.
Upgrade’s Performance and Everyday Savings accounts must be opened with a checking account. If the checking account is closed, the savings account will be closed, as well. This can be a benefit or a drawback, depending on if the customer is looking for comprehensive banking beyond just a savings account. SoFi’s high-yield savings account operates in a similar manner, since it has a companion checking account that can’t be closed without also closing the savings account.
| Bank | APY* | Minimum Opening Deposit |
| Ally | 4.20% | $0 |
| American Express | 4.25% | $0 |
| CIT Bank | Platinum Savings: 5.05% on balances of at least $5,000, otherwise 0.25% Savings Connect: 4.65% Savings Builder: tiered, up to 1% | $100 $100 $100 |
| Discover | 4.25% | $0 |
| SoFi | 4.60% with direct deposit or monthly contributions of $5,000; otherwise 1.20% | $0 |
| UFB Direct | 5.25% | $0 |
| Upgrade | Premier Savings: 5.21% on deposits of at least $1,000; otherwise 0% Performance Savings: 1.5% or 5.21% with $1,000 of monthly direct deposits Everyday Savings: 3.50% | $0 $0 |
Upgrade Savings Account Terms
There are no transfer limits between Upgrade accounts owned by the same person. All Upgrade savings accounts have the following external transaction limits:
- A count limit of between two and seven transfer transactions from external accounts to your Premier Savings within a seven-day period, as determined when the account is opened.
- A dollar transfer limit of between $2,000 and $15,000 either to or from external accounts within a seven-day period, assigned at account opening.
- Daily transfer limit of $100,000 both to and from external accounts.
Accrued interest is deposited on the first of the month as calculated from the previous month. For example, interest that is earned in January would be deposited on Feb. 1.
Upgrade’s Premier Savings is the company’s sole standalone savings account. It currently has a competitive APY – so long as the account has a daily balance of $1,000 or more.
On days that the account drops below that threshold, it won’t earn any interest. This makes Premier Savings appropriate for savers that already have at least that much money, but a poor fit for people who are not as far along their savings-building journey.
While there’s a $1,000 balance requirement to earn its top APY, Premier Savings doesn’t have a minimum balance requirement to keep the account open. There aren’t account opening, monthly or account maintenance fees either.
Existing Upgrade customers who have a Rewards Checking account can’t open a Premier Savings account. Additionally, Premier Savings accounts can only be individually owned and not jointly.
Upgrade Performance Savings earns its top APY as long as the account holder has $1,000 of monthly direct deposits. Note: This account has to be opened with an Upgrade Rewards Checking Plus account.
Customers can close their Performance Savings without giving up their Rewards Checking Plus account. However, if the Rewards Checking Plus account is closed, the Performance Savings account will be closed with it.
Performance Savings accounts have no minimum balance requirements. There are no account maintenance fees or monthly service fees. However, as with other Upgrade savings accounts, Performance Savings accounts can’t have joint owners.
The Rewards Checking Plus accounts do offer other perks to make them an attractive option, like no account maintenance fees, no overdraft fees, cash back on debit card purchases and ATM fee reimbursements. Unlike Upgrade’s Premier Savings account, Performance Savings earns interest even if it has a balance below $1,000, albeit at a lower rate.
The Everyday Savings account earns a solid APY and can only be opened in conjunction with an existing Rewards Checking account. If the Rewards Checking account is closed, the Everyday Savings account will be closed, too. However, you can close your Everyday Savings account and still keep your Rewards Checking account open.
There are no account fees for an Everyday Savings account at Upgrade. What’s more, there’s no minimum balance requirement.
Everyday Savings accounts are only available for single account owners and can’t be owned jointly. Customers can only have one Everyday Savings account at a time.
How To Open an Upgrade Savings Account
To get started, you’ll need to be at least 18 years old and either a US citizen or permanent resident. You’ll also have to provide the following information to Upgrade:
- Social Security number
- ID, such as a driver’s license
- Mailing address
- Date of birth
- Phone number
The Premier Savings account can be opened on its own (so long as the applicant doesn’t already have a Rewards Checking account). Upgrade’s Performance Savings and Everyday Savings accounts can only be opened alongside a Rewards Checking Plus or Rewards Checking account, respectively.
Upgrade savings accounts can be opened completely online on Upgrade.com, though you can call its helpline at (833)-760-5062 (open weekdays 5 a.m. to 6 p.m. and weekends 6 a.m. to 5 p.m., Pacific Time) if you need assistance as you fill out the application. It can be tricky to find Upgrade’s Rewards Checking (the companion account to the Everyday Savings account) through its website navigation. The Rewards Checking landing page can be found here, but note that the Everyday Savings account is only available for current Rewards Checking account owners.
The Bottom Line: Why Choose Upgrade Savings?
For savers who prefer online banking, Upgrade is a solid option. It offers competitive APYs on its Premier, Performance and Everyday Savings accounts. These accounts have no monthly fees and no minimum opening deposit or minimum balance requirements. The accounts can also be managed on Upgrade’s mobile app.
However, an Upgrade Premier Savings account needs to have at least a $1,000 balance to earn interest. On top of that, the Performance and Everyday Savings can’t be opened without an Upgrade checking account.
Still, it’s important to consider multiple perspectives, including your own. Upgrade’s banking products may be the perfect fit for you. But while many savings accounts can look great on paper, they can fall flat if you don’t center your specific savings goals within your decision-making process.
Use our savings calculator to see how much you can earn with a savings account from Upgrade.
FAQ: Upgrade Savings Rate
It’s unlikely that you’ll be able to find a 7% guaranteed rate of return from any banking service like a savings account or even a certificate of deposit (CD). While the S&P 500 has a historical average annual return of above 10%, an investor could earn much less – or experience losses – in any given year.
Upgrade’s Premier Savings bank account has one of the most attractive APYs amongst its competitors. However, it only applies to balances of at least $1,000; if the account balance is under $1,000, it won’t earn any interest.
Upgrade is a fintech company and not a bank, but its checking and savings accounts are provided by its partner, Cross River Bank, which is a member FDIC. Deposits with Cross River Bank are FDIC insured, making Upgrade’s Premier Savings a safe choice for consumers.
Upgrade was founded in 2017 by Renaud Laplanche, who previously helped start LendingClub but later resigned once an internal investigation found he improperly sold loans to an investor.
*Rates accurate as of 4/30/2024
**Data accurate at time of publication
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have questions about this page, please reach out to our editors at editors@marketwatchguides.com.
