High-yield savings accounts are a low-risk, low-effort way to reward your saving.
The Federal Reserve’s December interest rate hike moved the target federal funds rate range to 4.25% – 4.50%. As a result, rates on your savings account could grow even higher in the new year. Now is a great time to make sure you’re earning a competitive rate using the best savings account for your goals.
With high-yield savings accounts right now, you can make around 3.50% APY (annual percentage yield, which is the expected rate of interest earned over a year) on average. Some high-yield savings accounts earn closer to 4.00% APY or even more.
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 over the course of a year. That same $1,000 will earn $35 in a high-yield account with a 3.50% 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 February 2023
- 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
- Multiple Account Options
- No Monthly Fees
- Great Interest Rates
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
- 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
- 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 3.30% 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
- No minimum balance requirements
- Good communication
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
- Competitive rates
- No fees
- No minimum balance requirements
- Multiple communication and support options
- 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 3.30% APY with the American Express online savings account, with no minimum deposit requirements and no monthly fees.
Barclays Bank
- No Minimum Deposit
- Good Interest Rates
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
- Competitive interest rates
- Online and mobile banking
- No fees or minimum balance requirements
- Website designed with accessibility in mind
- 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 3.40% 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
- Competitive Interest Rates
- $1,000 CD Minimum Deposit
- No Maintenance Fees
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
- Good interest rates
- Alternative savings account that earns American Airlines AAdvantage miles
- No monthly maintenance fees
- $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 4.03% 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
- High Interest Rates
- No Monthly Fees
- Minimum Deposit Required
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
- High APYs on CDs and savings accounts
- Personal loan and credit card offerings available
- No monthly maintenance or ACH transfer fees
- 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
- Online and In-Person
- Interest Checking
- No Monthly Fees
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
- Competitive interest rates
- Good customer service feedback
- Online and in-person banking options
- 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 3.30% APY on any balance. There’s no monthly maintenance fees, no minimum to open, and no minimum balance requirements.
CIT Bank
- Competitive Rates
- Account Options
- Minimum Deposits
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
- Competitive interest rates
- Get reimbursed up to $30 per month for ATM fees
- No monthly fees
- Variety of deposit account types
- $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 3.85% 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
- Several account types
- $2,500 minimum for CD and MMA
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
- Full suite of banking products
- No current monthly savings transaction limit
- Cash back checking account
- 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 3.30% APY. There’s no minimum deposit to open the account, no minimum account balance, and no monthly fees.
Dollar Savings Direct
- Great interest rates
- No mobile app
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
- No monthly fees
- High interest rates
- No minimum balance for savings
- Straightforward online banking
- 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
- No minimum deposit
- Interest checking account
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
- No minimum balance requirements
- No monthly fees
- Interest-earning checking
- 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
- Competitive Rates
- Minimum Deposit Required
- ATM Fee Reimbursement
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
- 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
- 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 3.60% 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
- Competitive Interest Rates
- $2,500 Minimum CD Deposit
- No Monthly Fees
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
- Competitive interest rates
- Mobile banking option
- No monthly maintenance fees
- 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 3.50% 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
- Competitive Rates
- Different CD Types
- Unlimited and Same-Day Transfers
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
- 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
- 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 3.30%. There are no fees and no minimum deposit to open your account.
Prime Alliance Bank
- Many account options
- No monthly fees
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
- No monthly fees
- Many accounts for full-service banking
- Competitive interest rates
- $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 3.65% APY, with no monthly fees and no minimum balance or deposit requirements.
Salem Five Direct
- High minimum for CDs
- Competitive rates
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
- High interest rates
- ATM fee reimbursement
- No monthly fees
- $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 a huge 4.10% 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
- Great Interest Rates
- Several CD Types
- No Monthly Fees
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
- 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
- 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 3.75% 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
- Minimums required
- Multiple account options
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
- Multiple account options
- No minimum deposit for savings account
- No monthly fees for savings or CDs
- 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

- No monthly transfer limits
- Great savings rate
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
- Great interest rates
- No transfer limits
- No minimum deposit for savings
- 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 Best Savings
UFB Direct‘s high yield savings account earns 4.11% APY. There’s no minimum deposit or balance requirement, and no monthly fees.
Varo Bank
- Highly rated among users
- Boosted APY applies to first $5,000
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
- No minimum balance or monthly fees
- Helpful banking and savings tools
- Highly rated service
- 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 3.00% 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 COVID-19 pandemic in 2020. However, the Federal Reserve this year began raising the federal funds rate (which many bank account APYs are based on) at a rapid pace. Today, interest rates are still increasing across the board.
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 around 3.43%, though exact rates vary across banks. In comparison, brick-and-mortar banks tend to have traditional savings accounts with rates as low as 0.01%. The national average savings account rate according to the FDIC is currently 0.24%.
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 be 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, 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 accounts:
- 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:
- Emergency fund
- Down payment on a home
- Wedding expenses
- Vacation expenses
- Moving expenses
- College tuition
- Buying a car
High-Yield Savings Account FAQs
What is a good savings rate?
Many of the top high-yield savings accounts today offer more than 3.00% APY, though some are closer to 4.00% right now. The average among high-yield accounts we track is about 3.37% APY, which is a solid rate to aim for.
What is the highest yielding savings account right now?
UFB Direct offers the highest savings interest rate we can find right now. For no monthly fees or minimum deposits, you’ll earn a 4.11% APY.
Is a high-yield savings account worth it?
A high-yield savings account is one of the best foundations you can have for your financial plan. You can contribute toward your emergency fund or other savings while earning a great interest rate on your balance. Plus, these accounts are safe and easy to access when you need.
Further Reading
We have covered savings accounts at length. We like to think we’re experts. Read on for more of our savings account coverage:
- Best Savings Account Rates
- The Highest-Earning Savings Account Right Now
- Savings Account Predictions for 2023
- Savings Rates Are Sky High Right Now. 5 Examples of What That Means for Your Money
- Emergency Fund Guide
- Where 8 Money Experts Keep Their Emergency Funds, and Why
- If You Still Have a Traditional Savings Account, It Might Be Time to Upgrade