Best High Yield Savings Accounts
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Make your money work harder for you in a high-yield savings account. Here are the top savings accounts to grow your money.
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Discover Online Savings - $200 Cash Bonus
To get your $150 or $200 Bonus: What to do: Apply for your first Discover Online Savings Account, online, in the Discover App or by phone. Enter Offer Code CY223 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted to account within 30 days of account open date. Maximum bonus eligibility is $200.
What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded, or affinity accounts provided by Discover. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of the account qualifying for the bonus. Bonus is interest and subject to reporting on Form 1099-INT. Offer ends 6/15/2023, 11:59 PM ET. Offer may be modified or withdrawn without notice. See advertiser website for full details.
If you're looking for a place to set aside extra money, a savings account is an obvious choice.
But not all savings accounts are created equal. Some savings accounts have pesky monthly fees and rock-bottom interest rates.
Enter high-yield savings accounts.
These typically have no maintenance fees and offer APYs that beat the national average of 0.24%.[1]
Rates across the board aren't as high as they were a few years ago. But high-yield savings accounts still offer some of the top rates available right now.
Featured Offers
Discover Online Savings - $200 Cash Bonus
To get your $150 or $200 Bonus: What to do: Apply for your first Discover Online Savings Account, online, in the Discover App or by phone. Enter Offer Code CY223 when applying. Deposit into your account a total of at least $15,000 to earn a $150 Bonus or deposit a total of at least $25,000 to earn a $200 Bonus. Deposit must be posted to account within 30 days of account open date. Maximum bonus eligibility is $200.
What to know: Offer not valid for existing or prior Discover savings customers or existing or prior customers with savings accounts that are co-branded, or affinity accounts provided by Discover. Eligibility is based on primary account owner. Account must be open when bonus is credited. Bonus will be credited to the account within 60 days of the account qualifying for the bonus. Bonus is interest and subject to reporting on Form 1099-INT. Offer ends 6/15/2023, 11:59 PM ET. Offer may be modified or withdrawn without notice. See advertiser website for full details.
CIT Bank Savings Connect - 4.20% APY
- Earn 12x the national average
- $100 minimum opening deposit
- No monthly maintenance fee
- Member FDIC
Learn more about the best high-yield savings accounts to keep your money safe. Plus find out what to consider when choosing the right savings account for you.
- CIT Bank for Active Savers
- Discover Bank for No Fees
- Axos High Yield Savings
- Ally for Customer Service
- Nationwide for Checking + Savings
- Varo for Best High Rate
- Synchrony with ATM Access
- Popular Direct for High Balances
- Marcus by Goldman Sachs for money management tools
Why Use a High-Yield Savings Account?
A high-yield savings account is perfect for short-term goals. You can grow your money, but still have access when you need it.
Here are some great uses for a high-yield savings account:
- Emergency fund
- House down payment
- Saving for a car
- Special events like a vacation or wedding
- Self-employment taxes
Online banks offer rates as much as 8x or more than traditional big banks. That can be a difference of hundreds—or even thousands—of dollars over the years.
As long as the bank is FDIC insured, your savings are safe. Even if the bank defaults, the government will pay back what is in your account (up to $250,000). High-yield savings accounts are a very secure place to grow your money.
Top High Yield Savings Accounts
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| APY | Minimum Deposit | |
|---|---|---|
| CIT Bank Savings Connect | 4.20% | $100 |
| Discover Bank | 3.60% | $0 |
| Ally Bank | 3.75% | $0 |
| Quontic Bank | 4.05% | $100 |
| Synchrony Bank | 4.00% | $0 |
| Marcus | 3.75% | $0 |
High Interest: CIT Bank
CIT Bank Savings Connect - 4.20% APY
- Minimum Deposit to Open: $100
- Monthly Fee: $0
- APY: 4.20%
Best Savings With No Fees: Discover
Discover offers more than just credit cards. They also have checking accounts, savings accounts, money market accounts, and CDs.
Online Savings Account - Earn 3.60% APY
- Minimum Deposit to Open: $0
- Monthly Fee: $0
- APY: 3.60%
Axos High Yield Savings
Axos is a popular online bank with checking, savings, business accounts, loans, and investing services. It's a good choice if you want to do all your banking under one roof.
The minimum to open is $250, but after that, there are no more balance requirements. You can also get a free ATM card.
High Yield Savings - Up to 0.61% APY
- Minimum Deposit to Open: $250
- Monthly Fee: $0
- APY:
- <$25K 0.61%
- $25K-$100K - 0.25%
- >$100K - 0.15%
Customer Favorite: Ally Bank
Good support is essential when you can't just walk into a bank for help. With a user-friendly interface and live customer service, Ally Bank gets very high satisfaction ratings.
It's a full-service online bank with a wide ATM network, free checking account, multiple CDs, and investment services.
Online Savings Account - 3.75% APY
- Minimum Deposit to Open: $0
- Monthly Fee: $0
- APY: 3.75%
Nationwide My Savings
It pays off to have your checking and savings in one place with Nationwide's My Savings. When you open a My Checking account with a monthly direct deposit of at least $1,000, you'll get an extra high savings APY.
But even if you don't want the checking account, its lower APY is still competitive.
My Savings
- Minimum Deposit to Open: $100
- Monthly Fee: $0
- APY: Relationship pricing 0.20% / 0.30% (direct deposit of $1K)
Best High Rate: Varo Savings Account
If you have less than $10,000, Varo offers one of the highest savings APYs currently in the nation. Here's how its tiered rate works:
You get the base rate of 3.00% APY on all balances. Opportunity to earn 5.00% APY if your daily savings balance does not exceed $5,000 AND you make at least 5 Varo debit card purchases per month AND receive at least $1,000 in direct deposits in either the Varo Bank Account or Savings Account.
Even though there are some hoops to jump through, the exceptionally high interest rate could be worth it.
Online Savings Account
- Minimum Deposit to Open: $0
- Monthly Fee: $0
- APY: 3.00% APY on entire balance, with chance to earn 5.00% APY (on up to $5,000) when you meet requirements
Best Savings With ATM Card: Synchrony
You typically don't want to touch your savings too much, but it's always good to have access if you need it. Synchrony's High-Yield Savings offers an ATM card. You can make up to 6 withdrawals per statement cycle instead of having to wait days for electronic transfers.
High Yield Savings - 4.00% APY
- Minimum Deposit to Open: $0
- Monthly Fee: $0
- APY: 4.00%
For High Balances: Popular Direct
Popular Direct's Plus Savings Account offers one of the highest rates. But the minimum opening deposit is a whopping $5,000. If you do that, plus keep a balance of at least $500 each month, you'll get one of the highest APYs available today.
High-Rise Savings Account
- Minimum Deposit to Open: $5,000
- Monthly Fee: $0
- APY: 4.40%
Money Management Tools: Marcus
Marcus is the online savings account from investment giant Goldman Sachs. It offers a very competitive rate with no minimum deposit and no services fees.
The app doesn't support mobile check deposits. Marcus doesn't have checking or an ATM network, either. But you will get smart money management tools to track your spending and savings progress.
Marcus Online Savings - Earn 3.75% APY
- Minimum Deposit to Open: $0
- Monthly Fee: $0
- APY: 3.75%
Non-Bank Savings Account: Betterment
Betterment, the popular robo-advisor, has expanded its services to include checking and savings. Its Cash Reserve account punches above its weight with:
- Unlimited withdrawals with no fees
- Faster transfers between your linked banking account within 1-2 business days
- FDIC insured up to $1,000,000
Anyone can sign up to be a Betterment customer and open this account without having to use their robo investing services.
Betterment Cash Reserve - Earn 4.20% APY**
- Minimum Deposit to Open: $10
- Monthly Fee: $0
- APY: 4.20%
Other Popular High-Yield Savings Accounts
These accounts also offer competitive rates to help you reach your savings goal faster:
Fitness Bank Savings Account
Fitness Bank is a lifestyle online bank that rewards you for keeping active. The app tracks your daily walking and running steps. The more steps you get in, the higher APY you earn.
There's a $100 opening deposit and a $10 monthly fee that's waived when you maintain a $100 minimum balance.[2] And yes, Fitness Bank is a legit FDIC insured bank. It's a division of Affinity Bank.
State Farm Money Market
State Farm doesn't just do insurance. They've partnered with U.S. Bank to offer a flexible money market account with a free ATM card and checks.
The minimum opening deposit is $1,000. You need to maintain a $500 daily balance or make 1 direct deposit per month to avoid a service fee.
Investors eAccess Money Market
This is a money market account, but with no ATM access or check writing. However, the interest rate is one of the highest offered on the market.
There's no monthly service fee, opening deposit, or minimum balance requirement, so it's great for slowly building your savings.
What to Look For in a High Yield Savings Account
- Minimum opening deposit
- Balance requirements
- Monthly service fee
- APY rate
- How often rates change
- How often a bank's offerings change
- Withdrawal options
- Account options
Required opening deposit
If you're just starting to build your savings, look for an account with no minimum deposit. You can slowly add to it without needing much money upfront.
Balance requirements
Some accounts have a minimum daily balance or monthly deposit requirements. You might not get the highest APY possible if you don't meet it.
Monthly service fee
Most of the banks on our list have no monthly service fee. But a couple do require a minimum daily balance to avoid a service fee.
APY rate
Look for the highest APY rate on the account with requirements you can satisfy. A higher APY will help you grow your money faster.
Imagine two banks with APYs of 2.20% and 2.40%. If you only have $1,000 to save, that's a difference of just cents over a year. But if you have $50,000, that's a difference of $100 every year.
How often rates change
The Federal Reserve Board meets every 3 to 6 months to consider interest rate changes, and banks will often adapt their rates accordingly.
But some banks only offer high APYs to attract new customers, then drop their rates within 6 months to a year. We avoided those banks.
How often a bank's offerings change
Financial institutions can change their features anytime, but we looked for banks with a reputation for top-notch services over the long haul.
Withdrawal options
Before April 24, 2020, federal law stated you couldn't make more than 6 withdrawals from your high-interest savings account per month. This includes transfers between accounts, online payments, and overdraft fees.
But the Federal Reserve changed that during the pandemic and now allows unlimited withdrawals.
Today, most banks still enforce the 6 withdrawals per month limit. Although Ally Bank will temporarily refund the $10 fee they charge, if you exceed this limit.
Cynthia Flannigan, CFP®, MainStreet Financial Planning
Account options
Aside from a high-interest rate, the best banks have other account options as well.
- Physical branches or online only? Some online savings accounts offer great rates, but you could never deposit or withdraw money from a physical branch.
- ATM locations? If you don't need access to an ATM, then you could find an account with higher rates. You can also look for a money market account to open up your options.
- Customer support? Banks like Ally have built a reputation for 24/7 customer service, which can be helpful if you run into problems.
- Easy-to-use app? If their app isn't convenient, this could make a bank worthless since you can't monitor your account.
- Checking? Some online banks only offer savings accounts, so you'll need to choose a full-service bank if you also want a checking account.
A money market account is similar to a savings account. But some offer flexible features like check writing or ATM access. Your funds are more fluid, though you're still limited to 6 withdrawals per month.
A CD requires you to deposit an amount of money for a fixed term. Sometimes, it may offer a higher interest rate for your commitment—more on CDs below.
Advantages of a High-Yield Savings Account
A high-yield savings account gives you a safe place to grow your money. Some of the benefits are:
Security
Your deposits are FDIC secured, which means that you're protected (up to $250,000) if the bank defaults.[3]
Guaranteed returns
Unlike investing in stocks or bonds, your savings have reliable returns and no risk. However, the APY can change according to the market—you'll always earn the current advertised rate.
Flexibility
You can transfer money in and out to access your savings when you need it. Federal regulation allows up to 6 withdrawals or transfers per statement cycle without penalty.[4]
Yes. The interest you earn is treated as income. You will have to report it on your tax return every year. You will be taxed on it at your ordinary income tax bracket.
What Experts Say
CreditDonkey assembled multiple industry experts to answer readers' most pressing questions:
- Why are people still using traditional banks?
- Are online banks safe?
- How do you stay calm during financial stress?
Here's what they said:
High-Yield Savings vs CDs
Unlike high-yield savings accounts, Certificates of Deposit (CDs) require that you tie up your money for a certain term. You can't withdraw your funds before the term ends or you'll face a penalty.
To reward you for tying up your funds, you'll get a guaranteed fixed rate that may be higher than a savings account. CDs tend to be better for those with long-term savings goals (1-10 years).
See our list of the top CD rates.
CD laddering is when you divide your deposits into multiple CDs with different rates and maturity dates. For example, your ladder might look like this:
- $1,000 in a 1-year CD at 2.30%
- $1,000 in a 3-year CD at 2.70%
- $1,000 in a 5-year CD at 2.90%
As each CD matures, you can withdraw the funds (plus interest) and re-invest them in a 5-year CD. This is a very smart strategy. This way, every year, you can withdraw money if you need it. And you can always get the best current interest rate.
Methodology
To come up with our list of the best savings accounts for high-interest rates, we not only paid attention to the annual percentage yield, but also looked at:
- Minimum deposits: Some banks only offer high-interest rates to accounts with larger balances. But on this list, you'll find options starting as low as $100.
- Fees: A high-interest rate won't help if you lose money in overdraft or monthly maintenance fees, so we looked for accounts with the lowest fee structures.
- User friendliness: It's important to have a bank that can integrate with your life, so you can easily deposit money and watch it grow.
- Miscellaneous features: You'll find banks offering a full range of features on this list.
Bottom Line
A high-yield savings account is one of the best vehicles for growing your money safely. With so many banks competing for your business, there's no reason to stick with a traditional bank's nearly non-existent rates.
Of course, there are some downsides. Online banks don't have physical branches for in-person support. If you need help for any reason, you'll have to contact customer service online or over the phone.
Still, for the higher rates, it's a great alternative to grow your money faster.
Additional Resources
References
- ^ FDIC. National Rates and Rate Caps as of November 21, 2022, Retrieved 11/26/2022
- ^ Fitness Bank. ^ FDIC. Deposit Insurance, Retrieved 1/21/2022
- ^ Federal Reserve Board. Regulation D Reserve Requirements, Retrieved 1/19/2022
- ^ Federal Reserve Board. "announces interim final rule to delete the six-per-month limit", Retrieved 1/19/2022
- ^ IRS. Topic No. 403 Interest Received, Retrieved 1/21/2022
Donna Tang is a content associate at CreditDonkey, a bank comparison and reviews website. Write to Donna Tang at donna.tang@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
Note: This website is made possible through financial relationships with some of the products and services mentioned on this site. We may receive compensation if you shop through links in our content. You do not have to use our links, but you help support CreditDonkey if you do.
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