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Best high-yield savings accounts of October 2022

Compare our picks for online high-interest savings accounts to grow your money faster.

Best for Traditional Bank

Barclays Online Savings

  • No monthly fees
  • Competitive 2% APY with minimums requirements
  • No monthly transactions limits

APY

2.25%

Fee

$0 per month

Go to site
on Barclays's secure site

Best for cashback savings

Aspiration Spend & Save Account

  • Earn up to 10% cash back rewards
  • Up to 5% APY interest

APY

5.00%

3.00%

Fee

From $0 per month

Go to site
on Aspiration's secure site

Best for no minimum deposit

UFB Elite Savings

★★★★★

Finder rating 5 / 5

  • Earn a competitive rate of 3.01% APY no matter your balance
  • Open an account with as little as $0
  • Get an ATM card for easy access to your money

APY

3.01%

Fee

$0 per month

Go to site
on UFB Direct's secure site

Compare high-interest savings accounts and alternatives from our partners

Compare high-yield savings accounts based on fees, interest rates and minimum opening deposits. Check Compare under two or more accounts to see how they stack up against one another.

1 - 7 of 13
Name Product Annual Percentage Yield (APY) Fee Minimum deposit to open Interest compounding Offer
Aspiration Spend & Save Account
Finder Rating: 4.2 / 5: ★★★★★
Aspiration Spend & Save Account
Up to 5.00%
$0 per month or $7.99 per month for Aspiration Plus ($5.99 per month if you pay annually)
$10
Monthly
Deposits are fossil fuel-free. A spend and save combo account with unlimited cash back rewards and deposits insured by the FDIC.
Barclays Online Savings
Finder Rating: 4.6 / 5: ★★★★★
Barclays Online Savings
2.25%
$0
$0
Daily
Barclays Online Savings account offers key features that can help you save, including a high-interest rate, no monthly fees, and no minimum deposit.
Bread Savings™ High-Yield Savings
Finder Rating: 4.3 / 5: ★★★★★
Bread Savings™ High-Yield Savings
2.90%
$0
$100
Daily
Earn competitive interest rates with this high-yield savings account you can open in just minutes. Member FDIC.
CIT Savings Connect
Finder Rating: 5 / 5: ★★★★★
CIT Savings Connect
2.70%
$0
$100
Daily
Earn an impressive APY on your entire balance. This straightforward online savings account has no monthly service or account opening fees.
Varo
Finder Rating: 4.7 / 5: ★★★★★
Varo
Up to 5.00%
$0
$0
Daily
The Varo savings account is a no-fee account designed to offer benefits to help people save more money.
UFB Elite Savings
Finder Rating: 5 / 5: ★★★★★
UFB Elite Savings
3.01%
$0
$0
Daily
Earn a 3.01% APY with no minimum deposit or balance amount with this no-monthly-fee savings account.
Save Market Savings
Bonus
Save Market Savings
Up to 4.46%
0.35% annually (can be waived)
$1,000
Annually
Each time you successfully refer a friend, Save invests an extra $1,000 on both of your behalfs. After a year is up, Save keeps the $1,000 and gives you all the earned interest.
Each time you successfully refer a friend, Save invests an extra $1,000 on both of your behalfs. After a year is up, Save keeps the $1,000 and gives you all the earned interest.
A savings account that invests your interest in the stock market where it can earn an average 4.46% return.
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Compare up to 4 providers

This article was reviewed by Marguerita Cheng, a member of the Finder Editorial Review Board and award-winning advocate for ethical financial planning for over 20 years.

16 best high-yield savings accounts

The best high-yield savings account are found online because online banks don’t have to maintain expensive physical branches. By forgoing wages for tellers and branch managers, janitorial staff, utility bills and other expenses, banks can pass the savings on to you in the form of stronger interest rates.

UFB Elite Savings

Finder rating 5 / 5 ★★★★★

Go to site
on UFB Direct's secure site
Read review

CIT Savings Connect

Finder rating 5 / 5 ★★★★★

Go to site
on CIT Bank's secure site
Read review

Quontic Bank High Yield Savings

Finder rating 4.6 / 5 ★★★★★

Go to site
on Quontic Bank's secure site
Read review

Barclays Online Savings

Finder rating 4.6 / 5 ★★★★★

Go to site
on Barclays's secure site
Read review

Discover Online Savings Account

Finder rating 4.6 / 5 ★★★★★

Go to site
on Discover's secure site
Read review

American Express® High Yield Savings Account

Finder rating 4.6 / 5 ★★★★★

Go to site
on American Express's secure site
Read review

Bread Savings™ High-Yield Savings

Finder rating 4.3 / 5 ★★★★★

E-Trade Premium savings

Finder rating 5 / 5 ★★★★★

Bask Bank Savings

Finder rating 4.6 / 5 ★★★★★

BrioDirect High-Yield Savings

Finder rating 4.4 / 5 ★★★★★

LendingClub High-Yield Savings

Finder rating 3.8 / 5 ★★★★★

Prime Alliance Bank Personal Savings Account

Ally Bank Online Savings Account

Finder rating 4.4 / 5 ★★★★★

Sallie Mae High-Yield Savings

Finder rating 4.3 / 5 ★★★★★

Alliant High-Rate Savings

Finder rating 4.3 / 5 ★★★★★

Marcus by Goldman Sachs Online Savings

Finder rating 4.6 / 5 ★★★★★

How our experts choose the best high-interest savings accounts

Our banking experts routinely analyze more than 140 savings accounts on the market to narrow down the best savings accounts to build up a nest egg and accumulate interest. We weigh factors such as rates, fees and opening deposits. APYs are the top factor we consider when reviewing high-yield savings. We also factor in requirements to earn APY, ways to avoid monthly fees and availability. As part of availability, we consider whether there are any strict membership requirements to open the account.

What’s changed in 2022?

Savings account APYs have risen steadily over the past year and may well continue to rise as the Federal Reserve boosts rates. These boosts are most visible in online banking savings accounts, which tend to offer the highest rates. Several of these banks to join our list for 2022 include Bask Bank, Brio Direct, CIT Savings and E-Trade Savings, all offering strong APYs with few balance requirements. Several banks, including Axos, Vio, and Rising fell from our list as their APYs didn’t improve enough to keep up with the top performers.

High-yield alternatives

These accounts have strong yields as high as up to 5% APY, but they didn’t make our best list because they have limited availability or strict or unusual account requirements. That said, they may still be good options depending on your needs.

Aspiration Spend & Save Account

Finder rating 4.2 / 5 ★★★★★

Go to site
on Aspiration's secure site
Read review

Varo

Finder rating 4.7 / 5 ★★★★★

Go to site
on Varo's secure site
Read review

Chime Savings

Finder rating 4.6 / 5 ★★★★★

Go to site
on Chime's secure site
Read review

Wealthfront Cash Account

Finder rating 4.6 / 5 ★★★★★

TAB Bank High Yield Savings

Finder rating 3.9 / 5 ★★★★★

SoFi Checking and Savings

Finder rating 4.6 / 5 ★★★★★

How to pick a high-yield savings account

There are a few simple steps you can take to ensure you choose the best high-yield savings account for your needs:
  • Look for a high interest rate. Some banks pay as much as 5% interest, but only the first $1,000 of your money. Others may pay a flat rate on your total balance. Read the fine print so you know how much you can expect to earn.
  • Investigate potential fees. Read the account’s Fee Schedule to see if you’ll be charged fees for maintaining the account. Bonus tip: most online savings accounts don’t have a monthly fee.
  • Consider accessibility. There are usually several ways to access your savings, including mobile, online and phone banking. But some accounts even come with ATM cards. Decide how you plan to use your funds and choose an account that aligns with your needs.
  • Look for extra features. Interest rates fluctuate over time, so don’t go with a bank solely because it has highest rate. Instead, focus on one that has a high APY, but has other perks you’re looking for, such as ATM access, budgeting or savings tools.
  • Make sure the bank or credit union insures deposits. If you bank somewhere that isn’t insured, you could lose all your savings if it goes under. Instead, look for an FDIC-insured bank or an NCUA-insured credit union, both insure deposits up to $250,000.

How much money will I earn if I keep $1,000 in my account?

You could earn anywhere from $0.10 to $17.74 with an account balance of $1,000, depending on your savings account’s interest rate. Switching to a high-yield savings account can earn you more money with a higher interest rate and save you more money with lower fees. It’s a win-win.

The table below shows how much money you’d earn by switching from a savings account with a 0.01% interest rate to one with up to a 1% rate.

AccountAPYTotal earned
Wells Fargo Way2Save Savings0.01%$0.10
American Express® High Yield Savings Account2.00%$19.07
Alliant High-Rate Savings1.7%$12.13
TAB Bank High Yield Savings1.92%$7.57
Sally Mae SmartyPig0.70%$7.06
Communication Federal Credit Union Blue Savings1%$10.10

Online banks offer strong rates up to 5% APY

Generally speaking, you’ll find many of the strongest APYs on the market with online banks rather than banks with physical branches. Much of this has to do with the overhead costs of running physical branches compared to a presence that is online only.

With that said, the especially high APYs usually come with strict requirements. An Aspiration account for example offers up to 5% APY, but you’ll need to pay a monthly fee, become an Aspiration Plus member and direct deposit at least $1,000 to your account each month. You can compare more 5% accounts for additional information about these requirements.

How to open a high-yield savings account

You can open a high-yield savings account by applying for the account, filling out the requested information and funding the account much like you would with a checking account, CD, or similar account. Check out our full guide to opening a savings account for a step-by-step process.

3 tips to get the best interest rate

Don’t stop at the advertised interest rate when comparing savings accounts. Here are various points to consider that will help you make the most out of your interest rate:
  1. Introductory rates. Some savings accounts offer sign-up bonuses or introductory rates that are higher but last for a limited time. Check to see for how long that rate is in effect and if you need to meet any requirements to get it or maintain it. But compare this rate with the account’s standard rate. If the standard rate is much lower, you might find a higher standard rate on another account where you could be better off in the long term.
  2. Compound interest. Ideally, you want a high-interest savings account with interest that compounds daily and is paid into the account monthly. This allows your money to grow faster by being paid for interest that you have already earned.
  3. Terms. Check to see if the interest rate is applied to tiers or under certain conditions, such as maintaining a minimum balance or making a certain number of deposits.

Pros and cons of a high-interest savings account

If you’re considering a high-interest savings account, consider the following advantages and disadvantages:

Pros

  • Reach your goals faster. If you apply for a high-yield savings account that matches your savings style, you can get a head start on reaching your financial goals.
  • Competitive rates.You’ll typically find higher interest rates with online accounts because they don’t have physical branches that require high maintenance and upkeep costs. You get this savings in the form of higher rates and lower fees.
  • Minimal fees. The majority of high-interest savings accounts don’t charge fees for maintaining the account.
  • No risk. Savings accounts are considered one of the safest investments in the financial system, next to a certificate of deposit. Most banks are guaranteed by the FDIC, which means that eligible deposits are insured up to $250,000 a person, per bank.

Cons

  • Minimum balance requirements. Some high-yield savings accounts only pay interest if you maintain a certain balance. Know that amount and monitor your balance so that your money is always earning interest.
  • Interest rate changes. Savings accounts have variable interest rates, meaning your bank could lower APYs at any time. Contact your bank if you’re not sure why your account’s rate has changed.
  • Transfer time can take up to three business days. This delay could be an issue if you need money in an emergency. You’re also limited to six monthly withdrawals, due to federal law limitations.
  • No bank branches or debit cards. Many online savings accounts aren’t supported by physical bank branches or debit cards, which could be inconvenient if you rely on them.

Watch our short explainer video on pros and cons of online savings accounts:

Are online high-yield savings accounts worth it?

Online banks have lower overhead than traditional banks, so they’re able to pass on these savings to you in the form of higher interest rates and lower fees. Even though rates have dropped tremendously since the coronavirus pandemic, online savings accounts are worth it because their rates are still higher than the national average, which is currently around 0.05%.

What is a high-yield savings account?

A high-yield savings account — also referred to as a high-interest savings account — offers a competitive interest rate that’s typically 20 times higher than the national average. So if the national average is 0.05%, a high-yield savings account may offer rates around 1%. For comparison, interest rates for traditional savings accounts usually match the national average.

Examples of high-interest savings accounts include:

  • Online savings accounts. Lets you do all your banking online without having to visit a local branch. Most don’t have monthly fees, offering an inexpensive way to build your savings. Interest on your balance is typically calculated daily and deposited into your account monthly.
  • Savings accounts with bonuses or rewards. Some savings accounts offer signup bonuses such as cash rewards. While tempting, be sure that this account is good for you long term — asignup bonus usually isn’t enough to make up for a low interest rate.
  • Traditional high-interest savings accounts. Brick-and-mortar banks offer various savings account options. High-interest accounts usually come with conditions, such as a minimum opening amount or a minimum balance. If you meet all of the conditions, these accounts can be competitive, though check the fees.

How is interest taxed on my savings account?

Tax implications

Any interest earned on a high-yield account is taxable as income. This includes earnings on children’s accounts and CDs. However, you can claim deductions on expenses tied to earning the income. This can include account-keeping fees from the bank, management fees or financial consultations.

What’s the difference between an online high-yield savings and a traditional savings account?

Online savings and regular savings accounts have a few key differences you should keep in mind:

FeaturesOnline high-yield savings accountRegular savings account
Lower monthly fees
Higher interest rates
Larger ATM network
More branch locations
Longer customer service hours
Quicker access to your money
Better mobile banking experience
Insured deposits up to $250,000

Are high-yield savings accounts safe?

You can’t lose money in a high-yield savings account as long as they’re federally insured. If you get an account at a bank, it’ll be FDIC insured. If you open one with a credit union, it’ll be NCUA insured. Either way, this means you’ll get your money back, up to $250,000, if the financial institution goes bankrupt.

How can I withdraw and deposit money in an online savings account?

Most online savings accounts don’t accept cash deposits and don’t come with an ATM card, but there are still several ways to access your money:

Deposits

  • Direct deposit
  • Remote check deposit
  • Wire transfer
  • Transfer from an external account

Withdrawals

  • Outgoing wire transfer
  • Transfer to an external account

    Bottom line

    Opening a high-interest savings account can help you take advantage of getting the highest return on your money even when the market rates shift. They’re also a good option if you’re looking to earn more money without losing easy access to your savings in case of an emergency. To get the most out of your account, shop around for the terms and conditions that will save you the most.

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