NextAdvisor Banking Savings Best High-Yield Savings Accounts of {{ month_year }}

Best High-Yield Savings Accounts of November 2022

November 23, 2022 | 10 Min Read

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High-yield savings accounts are a low-risk, low-effort way to reward your saving.

The Federal Reserve recently announced its sixth consecutive rate hike of 2022, increasing federal rates to a target 3.75%-4.00%. As rates keep going up, the amount you can earn on savings will get better, too. That means now is a great time to make sure you have the best savings account for your goals.

With high-yield savings accounts right now, you can make around 3.00% APY (annual percentage yield, which is the expected rate of interest earned over a year) on average. Some high-yield savings accounts even earn upwards of 3.50% APY.

These extra earnings can make a big difference in your savings balance over time.

For example, a traditional savings account that has an APY of 0.01% with $1,000 in it will earn 10 cents per month. That same $1,000 will earn $30 per month in a high-yield account with a 3.00% APY — a much higher rate of return.

Here’s everything you should know about high-yield savings accounts, along with the accounts we think are the best.

Best High-Yield Savings Accounts of November 2022

Ally Bank: Good for Overall Banking and Service
American Express National Bank: Good for Amex Cardholders
Barclays Bank: Good for No Fees and Minimums
Bask Bank: Good for Savings Accounts
Bread Savings: Good for Competitive Rates
Capital One: Good for Hybrid Banking
CIT Bank: Good for Larger Deposits
Discover Bank: Good for Multiple Accounts in One Place
DollarSavingsDirect: Good for Online Only
FNBO Direct: Good for Checking Option
Lending Club Bank: Good for Communication
Live Oak Bank: Good for Personal and Business Savings
Marcus by Goldman Sachs: Good for CD Types and Access
Prime Alliance Bank: Good for Full Service Banking
Salem Five Direct: Good for High Rates with Minimums
Synchrony Bank: Good for Multiple Account Options
TAB Bank: Good for Existing Savings Balance
UFB Direct: Good for High Rates
Varo Bank: Good for Boosting APY

Ally Bank

Good for Overall Banking and Service

Ally Bank Review

Good for Overall Banking and Service

Ally Bank Review

Multiple Account Options
No Monthly Fees
Great Interest Rates

Overview:

Ally Bank is one of our top-rated banks for its all-around great customer service, range of products, and competitive interest rates. It’s best for anyone looking for one online bank to handle all of their financial needs, from checking to savings and investing.

NextAdvisor’s Take

Pros

Competitive interest rates
Ally will automatically raise your rate if interest increases within 10 days of opening your CD
Unlimited withdrawals from AllPoint ATMs and up to $10 monthly reimbursement for other ATM charges
Full-service banking with a variety of deposit and lending products
Online tools for budgeting and saving

Cons

Minimum deposit and fees may apply for investing tools
Cannot make cash deposits
No credit card options
Fewer accessibility initiatives than some other banks

Additional Details

Savings buckets to separate savings for different goals
Savings boosters can help you regularly add to your savings balance
Traditional, no-penalty, bump-up, and IRA high-yield CDs
10-day rate guarantee for new CD accounts
No monthly maintenance fees
No minimum balance requirements
Access your accounts online or via Ally’s mobile banking app
Interest checking account available with debit card
Home and auto loan options, plus personal loans for medical costs and home improvement
Automated investment portfolio management
Ally Bank deposits are FDIC insured

Ally Bank Online Savings Account

Ally’s savings account currently offers 3.00% APY. You won’t pay any monthly fees and don’t need to meet any minimum balance requirements to open or maintain the account.

American Express National Bank

Good for Amex Cardholders

American Express National Bank Review

Good for Amex Cardholders

American Express National Bank Review

No minimum balance requirements
Good communication

Overview:

American Express offers some solid banking products, especially if you’re already an existing cardmember with the bank’s credit card division. It offers a high-yield savings account, CDs with varying terms, and an interest-earning checking account, though some banking features (like mobile app access) are reserved for customers who are also Amex cardholders.

NextAdvisor’s Take

Pros

Competitive rates
No fees
No minimum balance requirements
Multiple communication and support options

Cons

Some banking features only available to Amex credit cardholders
Checking accounts only for Amex cardholders
No cash deposits

Additional Details

No minimum balance requirements
Amex may enforce transaction limits with 30 days’ notice
Traditional CDs with terms from 1 to 5 years
Mobile app use limited to customers who also have an American Express credit card
Tax-advantaged IRA options for high-yield savings and CDs
Personal checking, personal loan, and business banking options in addition to savings
American Express National Bank deposits are FDIC-insured

American Express High Yield Savings

You can earn 3.00% APY with the American Express online savings account, with no minimum deposit requirements and no monthly fees.

Barclays Bank

Good for No Fees and Minimums

Barclays Bank Review

Good for No Fees and Minimums

Barclays Bank Review

No Minimum Deposit
Good Interest Rates

Overview:

Barclays Bank’s U.S. online banking division can be a great choice for earning competitive rates on savings accounts and CDs. No fees and no minimum balances boost this account’s standing, but if you’re looking for a robust app or multiple account types, consider comparing other options.

NextAdvisor’s Take

Pros

Competitive interest rates
Online and mobile banking
No fees or minimum balance requirements
Website designed with accessibility in mind

Cons

Bank accounts limited to savings and CDs
Some negative customer reviews
No email support

Additional Details

No monthly maintenance fees
No minimum deposit requirements for savings or CDs
No limit to savings account withdrawals or transfers
Only traditional CD type offered
Barclays also has loan and credit card options for U.S. customers
FAQ support page, savings assistant, and CD calculator tools available online
Barclays Bank deposits are FDIC-insured

Barclays Online Savings Account

Barclays currently offers 3.00% APY for online savings balances under $100,000. There are no monthly fees, and you only need to maintain a balance of $0.01 to earn interest.

Bask Bank

Good for Savings Accounts

Bask Bank Review

Good for Savings Accounts

Bask Bank Review

Competitive Interest Rates
$1,000 CD Minimum Deposit
No Maintenance Fees

Overview:

Bask Bank offers two types of savings accounts and a limited number of CD options. It charges no fees and has competitive interest rates, but there are some disadvantages to keep in mind, especially if you’re looking for many account types or no CD minimums.

NextAdvisor’s Take

Pros

Good interest rates
Alternative savings account that earns American Airlines AAdvantage miles
No monthly maintenance fees

Cons

$1,000 minimum deposit for CDs
Negative customer feedback about slow transfers
Only savings and CD account options

Additional Details

Online and mobile account access
Interest Savings Account earning cash APY and Mileage Savings Account earning AAdantage miles
4 CD term options
Minimum $1,000 opening deposit for CDs
Six transaction limit per month for savings accounts
$35 outgoing wire transfer fee
No ATM or debit card access
Bask Bank deposits are FDIC-insured

Bask Interest Savings Account

Bask offers one of the highest rates available right now on savings, at 3.60% APY. There’s no minimum to open the account, no minimum balance requirements, and no monthly fees. However, you must fund your account with some amount within 15 days of opening to keep it active.

Bread Savings

Good for Competitive Rates

Bread Savings Bank Review

Good for Competitive Rates

Bread Savings Bank Review

High Interest Rates
No Monthly Fees
Minimum Deposit Required

Overview:

Bread Savings is a good choice if you’re looking for great interest rates and straightforward online banking. It has a high-yield savings account, CDs, and you can also open a credit card or personal loan through Bread Financial. However, it doesn’t offer checking or money market accounts.

NextAdvisor’s Take

Pros

High APYs on CDs and savings accounts
Personal loan and credit card offerings available
No monthly maintenance or ACH transfer fees

Cons

No money market or checking accounts
$1,500 minimum deposit for CDs
Potentially very high loan APR

Additional Details

Online-only bank, formerly Comenity Direct
High-yield savings account requires a $100 minimum deposit
Several traditional CD terms, ranging from one to five years
Personal loans ranging between $1,500 and $35,000
Pay over time installment financing for eligible purchases
Several retail credit cards and an unlimited 2% cash back card
No ATM or debit card access
$25 outgoing wire transfer charge
Bread Savings deposits are FDIC insured

Bread Savings High Yield Savings Account

For a $100 minimum opening deposit, you can earn up to 3.50% APY with Bread’s high yield savings option. You’ll need to maintain the $100 in your account, but there are no monthly maintenance fees. However, if you ever need to request a paper statement, you will incur a $5 fee.

Capital One

Good for Hybrid Banking

Capital One Bank Review

Good for Hybrid Banking

Capital One Bank Review

Online and In-Person
Interest Checking
No Monthly Fees

Overview:

Capital One is a good bank if you’re looking for a one-stop-shop for deposits and lending. Capital One’s online banking division offers a suite of account options with competitive rates and features. It even offers an interest checking account — but you’ll find less variety of CD options than some other banks have.

NextAdvisor’s Take

Pros

Competitive interest rates
Good customer service feedback
Online and in-person banking options

Cons

Branches aren’t located everywhere nationwide
Other banks may have higher APYs
Lacks some of the different account types that other banks offer

Additional Details

Bank online via web or mobile app, or visit a Capital One location in-person
High-yield savings, money market account, traditional CD, and checking accounts
Two different bank accounts for kids: Kids Savings Account and MONEY Teen Checking
CD terms range from six months to five years
Auto loans, business banking, and robust credit card portfolio available
No ATM access for savings or CDs, but you can use an ATM for checking
Capital One deposit accounts are FDIC insured

Capital One 360 Performance Savings

Capital One’s online savings account offers 3.00% APY on any balance. There’s no monthly maintenance fees, no minimum to open, and no minimum balance requirements.

CIT Bank

Good for Larger Deposits

CIT Bank Review

Good for Larger Deposits

CIT Bank Review

Competitive Rates
Account Options
Minimum Deposits

Overview:

CIT Bank is a good fit if you want to earn a return on both savings and checking. The bank offers two types of high-yield savings accounts, checking accounts, a money market account, and several types of CDs with competitive rates. Unlike some banks, each CIT account does require a minimum deposit, which varies based on your account type.

NextAdvisor’s Take

Pros

Competitive interest rates
Get reimbursed up to $30 per month for ATM fees
No monthly fees
Variety of deposit account types

Cons

$100 minimum deposit for savings accounts
$1,000 – $100,000 deposit for CDs
Limited to 6 monthly transactions or withdrawals

Additional Details

Get up to $30 per month in ATM fees from other banks reimbursed
CD options include traditional, no-penalty and jumbo CDs
No incoming wire transfer fees
Checking account interest rate depends on minimum balance
Manage banking transactions and payments using the mobile app
Relationship benefits for mortgages: 0.1% off your mortgage interest rate when you deposit 10% of your loan amount in a CIT account
Offers mortgage home loans and homeowner assistance to prevent foreclosure
Two types of high-yield savings accounts
CIT deposits are FDIC insured

CIT Bank Savings Connect Account

The Savings Connect account from CIT Bank earns 3.25% APY right now. There are no maintenance fees to keep your account, but you will need at least a $100 deposit upon opening.

Discover Bank

Good for Multiple Accounts in One Place

Discover Bank Review

Good for Multiple Accounts in One Place

Discover Bank Review

Several account types
$2,500 minimum for CD and MMA

Overview:

Discover Bank offers competitive rates on a few different account types and flexibility in how you bank. Between high-yield savings, cash back checking, money market accounts with debit card access, and CDs, there are plenty of options for saving and earning a return on your cash.

NextAdvisor’s Take

Pros

Full suite of banking products
No current monthly savings transaction limit
Cash back checking account

Cons

No options for depositing cash for savings
$2,500 minimum for CDs and money market
May not have as high interest rates as some others

Additional Details

No monthly fees
No minimum balance for savings accounts
$2,500 minimum deposit for CD and money market account
Tax-advantaged IRA high-yield savings and CD options
Checking account with cash back debit card (not currently open for applications)
Money market account comes with debit card and ATM access
No current monthly transaction limits
Mobile check deposit
Discover Bank deposits are FDIC-insured

Discover Online Savings Account

The online savings option from Discover currently has an APY of 3.00% APY. There’s no minimum deposit to open the account, no minimum account balance, and no monthly fees.

Dollar Savings Direct

Good for Online Only

Dollar Savings Direct Bank Review

Good for Online Only

Dollar Savings Direct Bank Review

Great interest rates
No mobile app

Overview:

Dollar Savings Direct doesn’t have the bells and whistles of some other online banking options, but it has the interest rates to make up for it. You can choose between the online-only bank’s high-yield savings account or CD, both of which consistently offer among the highest rates of banks we track.

NextAdvisor’s Take

Pros

No monthly fees
High interest rates
No minimum balance for savings
Straightforward online banking

Cons

Few account options
Few options for transfers and withdrawals
No mobile app

Additional Details

No monthly fees
No minimum balance for savings
$1,000 minimum to open CD account
Online only bank, but no mobile app option
You can make an initial deposit via check, but must use your linked checking account for all other transfers
After 60 days you can link a second external checking account
Limit of six transfers and withdrawals per month
Dollar Savings Direct deposits are FDIC-insured

Dollar Savings Direct Dollar Savings Account

You’ll earn a very high 3.50% APY with a Dollar Savings high yield account. There are no fees and no minimums required to open or maintain your account.

FNBO Direct: Good for Checking Option

Good for Checking Option

FNBO Direct Bank Review

Good for Checking Option

FNBO Direct Bank Review

No minimum deposit
Interest checking account

Overview:

FNBO Direct is an online bank with high-yield savings and checking account options. You’ll earn interest on both account types, and there are no monthly fees or minimum balance requirements. This bank doesn’t offer the highest rate available, but it’s an easy-to-use online banking option.

NextAdvisor’s Take

Pros

No minimum balance requirements
No monthly fees
Interest-earning checking

Cons

Few account options
Potential fees for certain checking account activities
Other banks have higher interest rates

Additional Details

High-yield savings and interest checking account options
No minimum deposit for savings but you’ll need at least $1 to open your account
Debit card access with checking account (but only electronic checks)
Online and mobile banking
$20 checking overdraft fee may be applied a maximum of 4 times per day
Limit of six monthly transfers and withdrawals for savings account
Send and receive money using peer-to-peer service Popmoney
FNBO deposits are FDIC-insured

FNBO Direct Online Savings Account

FNBO Direct’s high yield savings account offers a 2.15% APY. You’ll need at least $1 minimum deposit to open the account, and maintain at least $0.01 in your account to earn interest. There are no monthly maintenance fees.

Lending Club Bank

Good for Communication

LendingClub Bank Review

Good for Communication

LendingClub Bank Review

Competitive Rates
Minimum Deposit Required
ATM Fee Reimbursement

Overview:

LendingClub is a solid choice for its high interest rates, top-notch customer service, and an robust mobile app. It offers a high-yield savings account and traditional CDs with competitive rates. LendingClub also has personal loans, life insurance, a rewards checking account, and refinancing for auto loans.

NextAdvisor’s Take

Pros

Optional debit card for savings account
High APYs
Link external bank accounts on the mobile app to track your money in one spot
Unlimited ATM fee reimbursements

Cons

Must meet certain requirements to earn cash back on checking account
Maintain at least $2,500 to earn any interest on checking account, and $100,000 to earn top APY
$100 minimum deposit required on savings accounts
$2,500 minimum deposit required for CDs

Additional Details

Paycheck deposits up to two days sooner when you set up direct deposit to your checking or savings account
Manage budget, spending habits, debt payoff, and net worth with LendingClub’s online portal and mobile app
Personal loans, auto loan refinancing, and healthcare payment plans
Only traditional CDs available
No money market account option or credit cards
Lending Club Bank deposits are FDIC insured

Lending Club Bank High Yield Savings Account

Lending Club Bank’s high yield savings currently offers a great 3.25% APY. To earn that, you will need a minimum $100 deposit when you open your account, but there are no minimum account balance requirements after that and no monthly fees.

Live Oak Bank

Good for Personal and Business Savings

Live Oak Bank Review

Good for Personal and Business Savings

Live Oak Bank Review

Competitive Interest Rates
$2,500 Minimum CD Deposit
No Monthly Fees

Overview:

Live Oak Bank is a no-frills online-only bank with competitive interest rates on its limited product suite of high-yield savings and traditional CDs for personal banking. It’s not as robust as some other banking options, and carries some account fees and minimums.

NextAdvisor’s Take

Pros

Competitive interest rates
Mobile banking option
No monthly maintenance fees

Cons

Minimum deposit for CDs
Only savings and CD options for personal banking
Fewer accessibility options than other banks
Fees for some activities, like wire transfers and over-limit transactions

Additional Details

Online account and mobile app access
CDs have a minimum opening deposit of $2,500
6 transaction limit per statement cycle for savings account ( per transaction after that)
Checking account, savings account, CD, and loan options for small business owners
No ATM or debit card access
No monthly maintenance fees
Live Oak Bank accounts are FDIC-insured

Live Oak Bank Savings Account

Live Oak Bank’s savings account has a 3.10% APY with no minimum required deposit to open. There are no monthly fees and no minimum balance requirement, but you will need at least $0.01 in your account to earn the APY.

Marcus by Goldman Sachs

Good for CD Types and Access

Bank Review

Good for CD Types and Access

Bank Review

Competitive Rates
Different CD Types
Unlimited and Same-Day Transfers

Overview:

Marcus by Goldman Sachs is a great online banking option for anyone looking for a great savings account, multiple CD types, reliable customer service, and an easy-to-use online site and mobile app. Marcus’ account options are somewhat limited, though: there are no money market accounts or checking accounts offered.

NextAdvisor’s Take

Pros

Same-day transfers of up to $100,000 for high-yield savings accounts
10-day CD rate guarantee
Very high APYs on deposits
Investment and loan offerings in addition to savings

Cons

No money market account or checking account
$500 minimum balance for CDs
Credit card options are limited to GM co-branded cards

Additional Details

Online-only bank; access your account via mobile app or online
After you open a CD and make a $500 deposit, you’re guaranteed the highest rate offered between the opening day and 10 days following
CD options include high-yield, no-penalty, and rate bump CDs
Marcus Invest robo-advisor investing tool for longer-term saving and investing goals
Home equity and debt consolidation loans available
Opt into fixed-rate installment loans with some retailers using Marcus Pay
Unlimited withdrawals and same-day transfers (under $100,000) for savings accounts
No ATM access
Marcus deposit accounts are FDIC insured

Marcus Online Savings Account

Marcus’ online savings account currently has an APY of 3.00%. There are no fees and no minimum deposit to open your account.

Prime Alliance Bank

Good for Full Service Banking

Prime Alliance Bank Review

Good for Full Service Banking

Prime Alliance Bank Review

Many account options
No monthly fees

Overview:

Prime Alliance has plenty of accounts to choose from (high-yield savings, money market, checking, and CDs) and earn interest on your balances. You’ll pay no monthly maintenance fees and no minimum balances (except for CDs, with a $500 minimum) and can do everything online or via mobile app.

NextAdvisor’s Take

Pros

No monthly fees
Many accounts for full-service banking
Competitive interest rates

Cons

$500 minimum deposit for CDs
Interest checking requires high balance for better interest rates
Limit of six transfers or withdrawals monthly

Additional Details

CD terms range from six to 60 months
$500 minimum deposit required for CDs, no minimum deposit for other accounts
Online and mobile banking
Overdraft fees with checking account
Nationwide ATM access for checking
Transfer/withdrawal limit of six per month, with $25 fee each time you go over
Business bank account options
Prime Alliance Bank deposits are FDIC-insured

Prime Alliance Bank Personal Savings

The personal savings high yield account from Prime Alliance earns a very high 3.25% APY, with no monthly fees and no minimum balance or deposit requirements.

Salem Five Direct

Good for High Rates with Minimum

Salem Five Direct Bank Review

Good for High Rates with Minimum

Salem Five Direct Bank Review

High minimum for CDs
Competitive rates

Overview:

Salem Five Direct is an online bank with competitive interest rates for high-yield savings and CDs. There’s also a checking account that earns cash back. While you will need a minimum deposit for checking and savings accounts (and a very high deposit for CDs), this bank can make a good option for boosting your balances, especially with savings.

NextAdvisor’s Take

Pros

High interest rates
ATM fee reimbursement
No monthly fees

Cons

$10,000 minimum deposit for CDs
Limited transfers and withdrawals from savings
Additional fees for certain account activities

Additional Details

No monthly fees
$10 minimum deposit required for savings and checking accounts
$10,000 minimum required to open a CD
12, 18, and 24 month CD terms
Limit of six transfers or withdrawals per month for savings accounts
Rewards checking: earn $0.05 per debit card purchase when you choose “credit” at checkout
Checking overdraft fees can be high, but your savings balance may be used as overdraft protection for checking
Salem Five Direct is a division of Salem Five Bank, but brick and mortar customers may not open savings or checking accounts with the online bank
Salem Five Direct deposits are FDIC-insured

Salem Five Direct eOne Savings

With Salem Five Direct’s savings account, you can earn 3.50% APY on balances up to $1 million. You’ll need at least a $10 deposit to open the account, but there is no other minimum balance requirement and no monthly fees.

Synchrony Bank

Good for Multiple Savings Options

Synchrony Bank Review

Good for Multiple Savings Options

Synchrony Bank Review

Great Interest Rates
Several CD Types
No Monthly Fees

Overview:

Synchrony is a great bank if you’re looking for simple savings options. It pays consistently competitive interest rates on a variety of account types that don’t require any minimum balance. Plus, Synchrony’s unique loyalty program offers a few extra benefits.

NextAdvisor’s Take

Pros

CD and money market accounts also have retirement tax-advantaged IRA options
Optional debit card available for MMA and high-yield savings accounts
Reimburses up to $5 per statement cycle for ATM fees
Rewards program for account holders

Cons

No checking account available
No branches for in-person banking
No loan offerings or investment accounts
Few credit card options (majority co-branded retail cards)

Additional Details

Access your account with the Synchrony mobile app or online
Debit card access to make point-of-sale purchases and ATM withdrawals from your high-yield savings account or MMA (up to daily limits)
Rewards program with benefits determined by account balance or length of account history
Combine multiple accounts to one debit card
Synchrony will reimburse up to $5 per statement cycle for domestic ATM fees
Unlimited reimbursements on domestic ATM fees with Synchrony’s Diamond status
Synchrony deposit accounts are FDIC insured

Synchrony Bank High Yield Savings

You’ll earn 3.25% APY with Synchrony Bank’s high yield savings, and there’s no minimum deposit or minimum balance requirement, as well as no fees.

TAB Bank

Good for an Existing Savings Balance

TAB Bank Review

Good for an Existing Savings Balance

TAB Bank Review

Minimums required
Multiple account options

Overview:

TAB Bank began as a financial solution for transportation industry workers, but today offers online banking for any saver looking for high-yield savings, money market accounts CDs, and checking accounts. There are no monthly fees, but look out for the minimum balances some accounts require.

NextAdvisor’s Take

Pros

Multiple account options
No minimum deposit for savings account
No monthly fees for savings or CDs

Cons

Transfer and withdrawal limits
$1,000 minimum deposit for CDs
$25 minimum deposit for money market accounts
Additional fees for checking

Additional Details

Limit of six transfers and withdrawals from savings or money market account monthly
CD terms range from six to 60 months
Money market account and checking account require $25 minimum deposit
Check writing ability but no debit card with money market account
CDs require $1,000 minimum deposit
Get same-day ACH transfers for savings account for a $1 fee
$8 monthly fee for checking account (can be waived with certain actions)
TAB Flow debit card earns fractional shares of stock on purchases
Highly rated mobile apps
TAB Bank deposits are FDIC-insured

TAB Bank High Yield Savings Account

With a TAB Bank high yield savings, you can earn a great 3.64% APY. There’s no minimum deposit to open and no monthly fees, though you’ll need to maintain a daily balance of at least $1 to earn interest.

UFB Direct

Good for High Rates

UFB Direct Bank Review

Good for High Rates

UFB Direct Bank Review

No monthly transfer limits
Great savings rate

Overview:

UFB Direct is a solid online bank with competitive APYs on both money market and high-yield savings accounts. But UFB Direct’s other account options are limited, with no checking accounts or CDs.

NextAdvisor’s Take

Pros

Great interest rates
No transfer limits
No minimum deposit for savings

Cons

Limited account options
$5,000 minimum balance to waive $10 monthly fee for money market account

Additional Details

Complimentary ATM card with high-yield savings account
Access to 91,000 ATMs
No minimum deposit required
No limits on number of transfers or withdrawals
Must maintain a $5,000 on money market account to avoid monthly fee
Mortgage loan options through Axos Bank
ATM cash withdrawal and point of sale limits vary
Highly rated mobile app
UFB Direct deposit accounts are FDIC-insured

UFB Savings

UFB Direct’s high yield savings account earns 3.83% APY. There’s no minimum deposit or balance requirement, and no monthly fees.

Varo Bank

Good for Boosting APY

Varo Bank Review

Good for Boosting APY

Varo Bank Review

Highly rated among users
Boosted APY applies to first $5,000

Overview:

Varo Bank is a digital bank with checking and savings accounts. These accounts work together; you must open a Varo bank account to open a high-yield savings. The bank offers competitive interest rates which you can boost with certain account activities.

NextAdvisor’s Take

Pros

No minimum balance or monthly fees
Helpful banking and savings tools
Highly rated service

Cons

Must meet additional requirements to get highest rate
Cannot open savings account without checking
Limited account types

Additional Details

Get higher savings rate by receiving more than $1,000 in monthly direct deposits and ending the month with positive balances in your banking and savings accounts
Boosted savings rate (if you meet requirements) applies to only the first $5,000
No transfer or withdrawal limit for savings accounts
ATM fees for non-Allpoint ATMs
Mobile check deposit
Secured credit card and small-loan line of credit options available
Highly rated mobile app
Varo Bank deposits are FDIC-insured

Varo Savings Account

Varo’s savings account has a tiered APY. There are no monthly fees and there’s no minimum to open your account. However, to earn the account’s 2.00% APY, you’ll need to maintain a balance of at least $4.95 in any 31-day month and $5.12 over 30-day months.

You can increase your APY to 5.00% by meeting certain conditions, including receiving direct deposits of at least $1,000 monthly, keeping no more than $5,000 in your account, and more.

What Is a High-Yield Savings Account?

A high-yield savings account is a savings account that offers a competitive APY, or interest rate. A high interest rate can yield tens or hundreds of dollars in earned interest, depending on how much money you have saved.

Interest rates are always changing, and were very low after the start of the pandemic in 2020. However, the Federal Reserve has begun raising the federal funds rate (which many bank account APYs are based on) and as a result, interest rates are increasing today.

So a great interest rate for a high-yield savings account is relative, and based on how it compares with other available options. At the moment, interest rates for high-yield savings accounts average above 2.50%, though exact rates vary across banks. In comparison, traditional brick-and-mortar banks tend to have savings accounts with rates as low as 0.01%. The national average savings account rate according to the FDIC is currently 0.21%.

Emergency funds are one of the most popular reasons people save. Most experts we talk to recommend building a fund of about six months’ expenses, even as you pay down debt. Given that emergency savings should be kept on reserve in an account with easy access, putting that money into a low-risk vehicle like a high-yield savings account is a smart move.

While the accounts we featured here are standouts, there are many good options available. As long as it has a competitive APY, is FDIC-insured, and doesn’t charge any monthly fees, you’ll be better off than you would leaving your savings in a conventional account with a low APY.

How We Chose the Best High-Yield Savings Accounts

Our top high yield savings accounts are based on criteria we also use to determine the accounts on our list of best savings account rates, and are updated regularly alongside that page.

To get a comprehensive overview of the online bank landscape, we analyze more than 30 of the most commonly reviewed and searched-for high-yield savings accounts, as well as the top 25 commercial U.S. banks. We then evaluate them based on factors including APY, minimum opening deposit, minimum balance requirement, customer service options and availability, and what other accounts each bank offers.

None of the banks we recommend charge any monthly service or maintenance fees. Because so many reputable banks offer good APYs on free accounts, we think people should take a hard pass on any banks that do charge a monthly maintenance fee to keep a savings account.

For the greatest amount of accessibility, we also excluded accounts that require more than $100 as a minimum deposit. Many of the accounts on our list require much less or nothing at all as an opening deposit.

In addition, all of the contenders and final picks are insured by the Federal Deposit Insurance Corporation (FDIC), which protects your money up to $250,000 in the event a bank goes out of business.

While all the accounts we chose offer competitive interest rates compared to traditional savings accounts, we didn’t set any hard criteria for APY. This is because interest rates are constantly in flux and can change based on market conditions.

Pro Tip

Find a bank that charges $0 in monthly maintenance fees. You shouldn’t have to pay to use your bank account.

The Case For an Online Bank

Online bank accounts have considerable perks, and typically offer among the highest APYs.

Compared to national bank chains with a network of physical locations, online-only banks have far less overhead. This helps explain why they offer more competitive interest rates, and typically charge fewer and lower fees. Many of them also forgo common fees (such as monthly maintenance fees) or offer other benefits (such as early direct deposit), in line with their role as banking industry disruptors.

Are High-Yield Savings Accounts Safe?

Yes. High-yield savings accounts are offered by FDIC-insured banks and NCUA-insured credit unions. This backing by the federal government means that if the bank were to shutter, you would be able to recover up to $250,000. Avoid any banks or credit unions that aren’t federally insured.

What to Consider When Choosing a High-Yield Savings Account

There are many factors to consider when reviewing the marketplace of savings account:

Annual Percentage Yield (APY): This is the interest rate at which you’ll earn money in one year, in exchange for keeping your funds in the savings account. The higher, the better.
Fees: Many banks require monthly maintenance fees in order to keep the account open. We recommend going with a bank or credit union that doesn’t charge this fee.
Minimum deposit required: Oftentimes, to open a savings account, you’ll need to provide an initial deposit to the bank, though many online banks allow you to open an account with $0. Keep the minimum deposit in mind if you’re low on cash.
Minimum balance required: Many banks require a certain amount of money to be in the savings account at all times. If you don’t maintain the minimum balance, you could incur fees or lose your APY for the months you don’t meet the threshold.
Withdrawal options: You’ll want a bank that has ATMs or partners with ATM companies, so you’re able to withdraw cash on the go.

Best Uses for a High-Yield Savings Account

High-yield savings accounts are all-purpose, allowing you to save for both short-term and long-term goals. They offer competitive interest rates while also keeping your funds liquid in case of an emergency. Here are some ideas for how you can use your high-yield savings account:

High-Yield Savings Account FAQs

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