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Right now, the U.S. national average interest rate on savings account balances is nowhere near enough to keep pace with inflation. The good news is you can do better with high-yield savings accounts.
We’ve reviewed the best high-yield savings accounts on the market, exploring their rates, fees, and account perks.
Best High-Yield Savings Accounts & Rates for December 2023
We evaluated dozens of online banks, traditional banks, and credit unions to find the best high-yield savings accounts available right now.
All of these accounts yield multiple times the national savings account average. They can help build your emergency savings fund faster and fight back against inflation.
All are FDIC-insured up to the current limit of $250,000 per account.
- American Express® High Yield Savings Account
- UFB High Yield Savings Account
- Discover Bank Online Savings
- Barclays Online Savings
- Bask Bank Interest Savings Account
- CIT Bank Platinum Savings
- Popular Direct Select Savings Account
- Milli Mobile Savings Account
- Bread High-Yield Savings
- Marcus Online Savings Account
- LendingClub Bank High-Yield Savings
1. American Express® High Yield Savings Account
- Savings Yield: 4.30% Annual Percentage Yield (APY) (As of October 10, 2023)
- Minimum Balance to Open: $0
- Monthly Fee: $0
- Our Rating: 4.3 / 5
American Express® High Yield Savings Account (Member FDIC) has an above-average savings yield (currently 4.30%) and several high-yield CDs, but it really shines for its ease of use and 24/7 customer service.
American Express® High Yield Savings is the best high-yield savings account option for people seeking account help anytime, anywhere.
It offers 24/7 live customer support by phone and a robust self-help portal with answers to common questions that come up in a typical online banking relationship.
In addition to the savings account, Amex has several high-yield CDs. It’s also one of the few online-only banks without a fee for paper statements.
Read MoneyCrashers Expert Take: American Express National Bank Review 2023
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any savings product issuer.
2. UFB High-Yield Savings Account
- Savings Yield: 5.25% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Our Rating: 3.8/5
UFB’s high-yield savings account earns a competitive 5.25% APY on all account balances, with no strings attached.
A division of Axos Bank, UFB Direct offers some of the best savings rates in the country.
UFB High Yield Savings has no minimum balance requirements or minimum deposit, and you don’t have to pay monthly maintenance fees.
Unique from some of its competitors, UFB’s savings account comes with ATM access and a free ATM card.
If you’re looking to diversify and want an account with check-writing privileges, the online bank also offers a competitive high-yield money market account.
Read MoneyCrashers Expert Take: UFB Review 2023
3. Discover Bank Online Savings
- Savings Yield: 4.35% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Our Rating: 4.3/5
Discover Bank’s Online Savings Account earns 4.35% APY on all balances. It also has one of the best new account promotions of any U.S. savings account — up to $200 with qualifying deposits.
Discover Bank’s Online Savings Account has an above-average yield (currently 4.35% APY) and no monthly maintenance fee or minimum balance requirement.
The account doesn’t charge for excessive withdrawals, expedited official bank check deliveries, stop payment orders, or insufficient funds.
But what really stands out about this account is the opportunity to earn up to $200 when you open a new account.
- Earn $150 as a welcome bonus after you open your first Discover savings account by December 14, 2023, and deposit at least $15,000 within 30 days of your account open date, OR
- Earn $200 as a welcome bonus after you open your first Discover savings account by December 14, 2023, and deposit at least $25,000 within 30 days of your account open date.
- This offer is available nationwide. See the advertiser website for complete details.
Read MoneyCrashers Expert Take: Discover Bank Review 2023
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 MC923 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 December 14, 2023, 11:59 PM ET. Offer may be modified or withdrawn without notice.
4. Barclays Online Savings
- Savings Yield: 4.35% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Our Rating: 4.4/5
Barclays Online Savings yields 4.35% APY, which is at least five times the national average for savings accounts. It has several high-yield certificates of deposit (CDs) as well.
Barclays Online Savings is a no-frills savings account that requires no minimum balance to open or earn APY.
Barclays has a nice lineup of high-yield CDs as well. Terms range from 12 months to 60 months.
Other notable features include a seamless online transfer system, easy direct deposit setup for part or all of your paycheck, and savings and CD calculators to help you budget and save more efficiently.
Read MoneyCrashers Expert Take: Barclays Bank Review 2023
5. Bask Bank Interest Savings Account
- Savings Yield: 5.00% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Our Rating: 4.3/5
With a current APY of 5.00% and no maintenance fees or account minimums, Bask Bank’s Interest Savings Account is a rewarding pick.
Bask offers a range of interest-bearing and rewards checking, savings, and CD accounts.
It’s backed by Texas Capital Bank, Member FDIC, providing $250,000 of insurance per account type and depositor.
There are no account minimums to meet and no monthly maintenance fees. You can make six transfers per statement cycle up to $150,000 and connect two outside bank accounts.
Read MoneyCrashers Expert Take: Bask Bank Review 2023
6. CIT Bank Platinum Savings
- Savings Yield: Up to 5.05% APY
- Minimum Balance: $100
- Monthly Fee: $0
- Our Rating: 4.4/5
Platinum Savings offers the highest yield of any CIT Bank savings account. If you keep $5,000 or more in the account, you’ll earn 5.05% APY on your entire balance.
CIT Bank’s Platinum Savings account is the best high-yield savings account on this list for folks with larger balances.
You need a balance of at least $5,000 to earn the headline yield of 5.05% APY on the entire balance. Otherwise, you earn 0.25% APY.
If you can’t quite clear the $5,000 threshold, CIT Bank has other high-yield savings accounts plus several high-yield CDs and a money market account.
Read MoneyCrashers Expert Take: CIT Bank Review 2023
7. Popular Direct Select Savings Account
- Savings Yield: 5.00% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Our Rating: 4.0
Popular Direct offers one of the most competitive yields on the market, awarding 5.20% APY on all account balances.
Popular Direct is the online subsidiary of Popular Bank, which has been in business for more than a century.
The Select Savings Account offers solid interest rates without a monthly fee or minimum balance, though it does require an initial deposit of $100.
Popular Direct keeps its fees to a minimum, but it’s worth noting that there’s a $10 penalty for overdrafting your account by more than $50. You’ll also be liable for a $25 early closure fee if you decide to close your account within 180 days of opening it.
8. Milli Mobile Savings Account
- Savings Yield: 5.25% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Our Rating: 4.0
Milli is hard to beat if you’re looking to earn the highest APY with the fewest requirements on a user-friendly banking app.
Milli is an intuitive personal finance app that streamlines your money management with simple savings and spending accounts.
You can use jars to save money for different goals and automate savings deposits.
The account has no monthly fee, balance requirements, or minimum opening deposit, and it offers one of the highest yields currently available.
As long as you’re comfortable banking exclusively from your phone or tablet (there’s no desktop version), Milli could be worth your while, with far higher rates than brick-and-mortar banks.
9. Bread High-Yield Savings
- Savings Yield: 5.00% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Our Rating: 4.0
Once you make an initial deposit of $100, you can earn an impressive 5.00% APY on all account balances with Bread’s high-yield savings account.
Bread, formerly Comenity Direct, is a subsidiary of Comenity Capital Bank. The popular online bank specializes in high-yield savings accounts and CDs.
While you have to make a $100 opening deposit, there aren’t any ongoing deposit requirements.
The account provides free incoming wire transfers and ACH transfers, with a $25 fee for outgoing wire transfers.
10. Marcus Online Savings Account
- Savings Yield: 4.40% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Our Rating: 4.3/5
Marcus Online Savings yields 4.40% APY on all balances with no fees, minimums, or other requirements to earn interest.
Marcus by Goldman Sachs Online Savings earns a competitive yield on all balances (currently 4.15% APY) and complements a growing lineup of other high-yield Marcus deposit accounts, including traditional and no-penalty CDs.
Marcus also has an unusually large allowance for same-day transfers: up to $100,000.
Just schedule If you schedule your transfer by 12 p.m. Eastern on a business day, and the recipient should have the funds in hand by 5 p.m. Eastern the same day.
Read MoneyCrashers Expert Take: Marcus Online Savings Account Review 2023
11. LendingClub Bank High-Yield Savings
- Savings Yield: 4.50% APY
- Minimum Balance: $0
- Monthly Fee: $0
- Our Rating: 4.1/5
While it’s most popular for its loans, LendingClub also offers a formidable high-yield savings account with a solid APY and a complimentary ATM card.
LendingClub offers an impressive lineup of financial products for individuals and businesses, in addition to its lending products.
Its high-interest savings account offers 4.50% APY on all account tiers. Once you fund your account with at least $100, you’ll start earning the full APY with no ongoing balance requirements.
Account holders also have widespread access to ATMs, with free withdrawals from the SUM and MoneyPass networks. And unlike a lot of savings accounts, it comes with a free ATM card.
Read MoneyCrashers Expert Take: LendingClub Bank Review 2023
What Is a High-Yield Savings Account?
A high-yield savings account offers a higher interest rate compared to traditional savings accounts.
These accounts are typically offered by online banks or credit unions, and they provide an opportunity for individuals to grow their savings more quickly.
The competitive rates are the main feature that sets high-yield savings accounts apart from regular savings accounts.
With a high-yield savings account, you can earn more money on your savings over time, allowing your funds to grow at a faster rate. This can be especially beneficial if you’re looking to save for a specific financial goal, such as a down payment on a house or an emergency fund.
However, it’s important to note that high-yield savings accounts may have limitations compared to traditional savings accounts, like minimum balance requirements or withdrawal limits.
It’s important to research and compare different high-yield savings account options to find the one that best suits your needs and financial goals. If you do that, a high-yield savings account can be a useful tool to help you save more effectively and achieve your financial objectives.
Pros and Cons of High-Yield Savings Accounts
Before you open an account, take a look at the benefits and drawbacks of a HYSA.
Pros
- Higher interest rates: High-yield savings accounts offer higher interest rates than traditional savings accounts, so your money grows faster.
- Safety: These accounts are typically backed by FDIC-insured banks, which means your deposits are protected.
- Easy access: They also provide quick and easy access to your funds. That means you can withdraw money whenever you need it without penalties or restrictions.
- Low minimum balance: Many high-yield savings accounts have low minimum balance requirements, making them accessible to a wide range of savers. You don’t need a large sum of money to open an account and start earning interest.
- Compounded interest: The interest earned in a high-yield savings account is often compounded, which means you earn interest on your initial deposit and the accumulated interest.
Cons
- Lower liquidity: High-yield savings accounts offer easy access to your funds, but some accounts may have a maximum number of withdrawals per month or fees for excessive withdrawals.
- Inflation risk: While interest rates on high-yield savings accounts are higher than regular savings accounts, they may not keep pace with inflation. Over time, the purchasing power of your savings may decrease.
- Opportunity cost: HYSAs are a safe option, but they may not provide the highest possible returns. If you’re comfortable taking on more risk, other investment options like stocks or real estate could potentially offer higher long-term gains.
- Limited services: High-yield savings accounts may offer fewer services than full-service banking accounts. These accounts may not have features like check-writing abilities or ATM cards, limiting the ways you can access your money.
Alternatives to High-Yield Savings Accounts
HYSAs aren’t the only way for savers to accelerate their financial goals. As you compare account options, see if your bank offers some of the following account types:
- Certificate of Deposit (CD): A CD is a fixed-term deposit offered by banks and credit unions. It typically offers a higher interest rate than a regular savings account, but you cannot withdraw the funds until the maturity date.
- Money Market Account (MMA): A money market account is similar to a savings account but typically offers a higher APY. MMAs often have limited check-writing capabilities and require a higher minimum balance.
- Government bonds: Investing in government bonds, such as Treasury bonds, can provide a steady and predictable return. These bonds are considered low-risk investments and are backed by the government.
- Corporate bonds: Corporate bonds are debt securities issued by corporations. They generally offer higher interest rates than government bonds but come with a higher level of risk.
How to Choose a High-Yield Savings Account
When you’re choosing a high-yield savings account, there are several key factors to consider.
To help you make the most informed decision, here’s a detailed list of what to look for:
- Interest: Look for an account with high-interest rates. By choosing the account with the highest rates, you’ll be able to grow your account faster. Rates change, so it’s important to check before opening an account.
- APY: Annual Percentage Yield (APY) tells you how much compound interest you’ll earn in a year. Choose an account with a high APY for maximum returns. The best high-yield savings account rates are significantly higher than traditional rates.
- Minimum deposit requirements: Some accounts require a minimum deposit amount to earn the advertised interest rate. Make sure it aligns with your savings goals and you can comfortably maintain it.
- Fees: Check for monthly service fees, transaction fees, and ATM fees. Avoid accounts with excessive fees as they can eat into your savings.
- Accessibility: Consider how easily you can access your funds. Online banking and mobile apps make it convenient to manage your savings, and some accounts may offer ATM cards or checks.
- FDIC insurance: Ensure the savings account is backed by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Association (NCUA). This protection guarantees your deposits up to $250,000 per depositor, per insured bank or credit union.
- Customer service: Look for a bank with good customer service. Read reviews and ask for recommendations to choose a bank that has a positive relationship with its customers.
- Account features: Some accounts come with additional perks and features like automatic transfers, goal-setting tools, or budgeting apps. Think about which ones matter most to you.
- Bank reputation: Research the reputation and stability of the bank offering the account. Look for established financial institutions that have a track record of reliability.
- Account accessibility: If you prefer in-person banking, consider whether the bank has physical branches or ATM networks in your area. You should also compare features in the mobile banking app and online.
By keeping these factors in mind, you can find a high-yield savings account that suits your needs and helps you grow your savings efficiently.
How to Open a High-Yield Savings Account
- Do your research: Start by researching different financial institutions that offer high-yield savings accounts. Look for reputable banks and credit unions with high savings account interest rates.
- Check account requirements: Look for any minimum balance requirements or monthly fees associated with the savings account. Choose an account that aligns with your financial goals and doesn’t impose unnecessary charges.
- Gather necessary documents: Prepare the necessary identification documents such as a valid ID, social security number, and proof of address. These documents are typically required when opening an account.
- Apply online: Follow the steps on the bank’s website to open your account. It should only take a few minutes to apply.
- Fund your account: Decide on the initial deposit amount required by the bank and transfer the funds from your existing bank account. This can usually be done through a wire transfer, ACH transfer, or by mailing a check.
- Review the account terms: Carefully read and understand the terms and conditions of your high-yield savings account. Pay attention to any withdrawal limits, penalties, or expiration dates.
Methodology
Here’s how we select the Best High-Yield Savings Accounts.
Our editorial team evaluates high-yield savings accounts on several key metrics that can make or break your experience as an account holder.
For each metric, we select the account that surpasses all other competitors — giving you the confidence you need to choose the product that works best for you.
- High yield (High APY): “What’s the interest rate?” is probably the first question you ask yourself when evaluating a savings account. A higher interest rate, or yield, means your money grows faster. When inflation runs hot, yield is your best defense against falling buying power.
- Low fees: Account fees are your enemy. The best high-yield savings accounts charge no monthly maintenance or minimum balance fees or have a way to get out of them. They should have low or no overdraft fees and no fees for person-to-person transfers.
- Account opening bonus: We also distinguish banks that offer bonuses when you open a new account. See our list of the best new bank account promotions for our top picks right now.
- Other Account Types Available: Some banks and financial technology apps offer savings accounts only, or checking and savings accounts only. That’s fine, but all else being equal, we prefer those that have a wider range of account types, including checking accounts, money market accounts, and CDs.
- Savings automation: We also prioritize banks that let you automate your savings, with features like round-ups or the ability to set aside a portion of your paycheck.
- Mobile Experience: Your bank’s mobile app should do everything its desktop banking portal does. We factor in features like the app’s ability to accept mobile check deposits, execute (free) P2P funds transfers, pay your bills, manage your savings plan, and more. And it should look good on a small screen.
Frequently Asked Questions
How Do High-Yield Savings Accounts Calculate Interest, & What Is Compounding?
Your savings account’s yield is a function of its interest rate and compounding frequency.
Compounding frequency describes how often your account adds the interest it’s earned to the original (principal) balance. The higher the compounding frequency, the longer each extra bit of interest has to earn interest on itself.
For example, imagine two seemingly identical savings accounts. Both earn 0.50% interest. The only difference: Account A compounds annually and Account B compounds daily.
You seed both accounts with $10,000 and make no further deposits. The interest rate remains level at 0.50%. By Year 10, how much bigger is Account B’s balance?
| Account A | Account B | |
| Year 1 | $10,050.00 | $10,050.12 |
| Year 2 | $10,100.25 | $10,100.50 |
| Year 5 | $10,252.51 | $10,253.15 |
| Year 10 | $10,511.40 | $10,512.71 |
A whopping $1.31, that’s how much. After accounting for inflation, the difference is even smaller.
Can You Lose Funds Held in a High-Yield Savings Account?
Federal deposit insurance (FDIC coverage) protects savings balances held with member FDIC institutions up to at least $250,000. That protection kicks in if the member bank fails.
Always ensure your bank is FDIC-insured. Otherwise, there’s no guarantee you’ll get your money back if it closes its doors.
FDIC insurance doesn’t cover everything that can go wrong at your bank. It might not reimburse you if your account is hacked and drained without your consent or if you fall victim to a financial scam.
Do Banks Still Charge Excess Withdrawal Fees for High-Yield Savings Accounts?
Some banks continue to charge excess withdrawal fees. But a growing number of financial institutions now choose to waive them.
That’s because of a long-overdue change to a Federal Reserve bylaw known as Regulation D (Reg D). For years, Reg D limited withdrawals or payments from savings and money market accounts to six per statement period.
In April 2020, the Federal Reserve announced that deposit institutions were no longer bound by the strict monthly withdrawal limit.
How Safe Are High-Yield Savings Accounts?
FDIC-insured high-yield savings accounts are completely safe, insuring your funds for up to $250,000, with some banks offering even higher levels of protection.
The best high-yield savings accounts also take extensive measures to protect your private information
Final Word
Choosing a high-yield savings account can feel overwhelming, so take a step back before you make your pick and consider which factors matter most to you.
Often, the decision process begins and ends with yield. If that’s the case for you, choose the highest-yielding savings account you can find.
Try not to overthink it. Opening a savings account isn’t something to be done lightly, but it’s also not as big a deal as buying a car or house. You can always open another one if you decide your first choice wasn’t the right one.
Editorial Disclosure: This content is not provided or commissioned by the bank advertiser. Opinions expressed here are the MoneyCrashers Expert’s alone, not those of the bank advertiser, and have not been reviewed, approved, or otherwise endorsed by the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.
