Explore high-interest savings accounts earning up to 5.02% APY — a rate that's 14x higher than the national average.
With the Federal Reserve increasing rates over the course of a year and further increases poised to occur in 2023, you'll find savings accounts offering rates that are 10 times higher than the national average, which is currently at 0.35% APY. The highest APYs belong to online banks as they don’t have to maintain physical branches. By forgoing wages for tellers and branch managers, utility bills and other expenses, banks can pass the savings on to you in the form of stronger interest rates.
Compare high-interest savings accounts and alternatives from our partners
Narrow down high-yield savings accounts based on fees, interest rates and minimum opening deposits. Select Compare for up to four products to see how they stack up against one another and whether they offer a greater APY than the national average of 0.35% APY.
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15 best high-yield savings accounts
The best high-yield savings account offer APYs that are 10 times higher than the national average of 0.35% APY, easy requirements to earn the highest rate and no monthly fees.
The UFB Preferred Savings account is our pick for best overall high-yield savings account as it offers one of the strongest interest rate we’ve seen on the market at 5.02% APY. Although the account has tiers, customers currently earn the same rate regardless of the balance in the account. There are also no opening balance requirements and no monthly maintenance fees with this account and you’ll get a complimentary ATM card for easy cash withdrawals. Although this is an online bank, a lack of physical branches is what allows UFB to offer such a strong APY.
The CIT Savings Connect account balances a strong APY with minimal fees and you’ll pay nothing for incoming wire transfers. And while you can’t deposit or withdraw cash from your account, CIT Bank doesn’t impose a transaction limit, unlike traditional savings accounts that usually cap the number of monthly transactions to six.
Earn a solid 3.60% APY on your total account balance with no opening deposit or maintenance fees. But Barclays puts a five-day hold on all funds your deposit into your account. And since this account doesn’t handle cash, you’ll need to transfer money to and from an external account or via check. Fortunately, this account has no monthly transaction limits, so you can initiate withdrawals and transfers as often as you need.
The Discover Online Savings Account earns 3.60% APY, a rate much higher than the current national average, which is 0.35% APY. This account pairs well with the Discover Cashback Debit checking account because you can opt to have your cashback bonus automatically deposited into your account each month. But like most online bank accounts, your primary ways of accessing your money are through direct deposit, online transfers and mobile check deposits.
Grow your savings with a competitive 3.75% APY on your total balance on your American Express High Yield Savings Account. And with no monthly fees, your money can grow unhindered. But as with most online bank accounts, you won’t get an ATM card or checks.
The Quontic Bank High Yield Savings account offers an attractive 3.7% APY on any balance and comes with an ATM card upon request. But you’ll need to transfer at least $100 from an external bank account to get started. Keep in mind that this account limits your withdrawals and fees to six transactions per month and doesn’t support Zelle, Bill Pay or Quontic Ring, a wearable payment ring.
The Bask Interest Savings account lets you earn a whopping 4.25% APY on your entire account balance. There are no monthly maintenance fees and no minimum balance requirements. That means you’ll earn interest no matter how much you’ve deposited. Like most savings accounts it doesn’t come with an ATM card, and you’re limited to six outgoing transfers every month.
With a 3.3% APY, the Capital One 360 Performance Savings account is in line with several of the top savings accounts on the market. There are no monthly fees, and you can keep as much or as little money in your account. With its Automatic Savings Plan, you can put savings on autopilot by setting up automatic transfers from a linked checking account.
Bread Financial offers an impressive interest rate on its High-Yield Savings account. You earn 4% APY on balances up to $1 million in your savings account. While you can open multiple high-yield savings accounts, Bread imposes a $10 million total limit for each customer. While there are no monthly fees, you’ll need $100 to open an account. But it’s only FDIC insured up to $250,000. Also, new accounts may experience withdrawal delays for the first 30 days. There's also minima fees. The only ones you'll need to watch out for are: $5 fee for paper statements, a $15 fee for check requests and a $25 fee for outgoing wire transfers.
The E-Trade Premium Savings Account offers a 3.5% APY on deposits, making it one of the highest on the market. And while most bank accounts only insure funds up to $250,000, this account offers FDIC protection up to $500,000. But deposits and withdrawals are limited to transfers to and from another bank account.
Pros
Competitive 3.5% APY
Manage E-trade investments and savings from the same app
The BrioDirect High-Yield Savings account has one of the best interest rates around at 3.75% APY. And although there are no monthly service fees, you’ll need to fund the account with at least $500 to sign up. Like most savings accounts, you’re also limited to six withdrawals or transfers each statement cycle.
The LendingClub High-Yield Savings account goes beyond traditional banking by combining competitive interest rates with powerful personal financial management tools. You’ll earn 4% APY with no minimum balance requirement. Plus you get a free ATM card and access to an integrated financial dashboard that lets you manage your accounts, create budgets and analyze your spending habits. But you’ll need $100 to open your account.
The Ally Bank Online Savings account combines a higher-than-average interest rate with handy financial tools to organize and analyze your savings. Ally’s Buckets allow you to sort the money in your account like digital envelopes, while its Surprise Savings feature checks for any linked checking accounts to analyze your spending and transfer unused funds to your Ally savings account.
The Marcus Online Savings Account boasts an impressive 3.5% APY with no fees and no minimum deposit. But where it stands out is its same-day transfers of up to $100,000 to or from other banks. The maximum account balance is $1 million, and there is no ATM or bank branch access.Keep in mind that as most bank accounts funds are only FDIC insured up to $250,000.
The Synchrony High-Yield Savings account generally has a tiered interest rate depending on your account balance. But right now, all tiers earn a competitive 3.75% APY. That means you’ll earn an interest rate higher than the national average, no matter how much you have in your account. Plus, Synchrony gives you the option of an ATM card and doesn’t charge any monthly fees or impose a deposit minimum or minimum balance requirement.
Methodology: How we choose the best high-interest savings accounts
Finder’s 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 compare an account’s overall rate, fees, opening deposits and availability. We weigh these factors to determine the acounts that make the final cut:
APY must be at least 10x higher than the national average
$0 monthly fees
Minimum deposits of $100 or lower
Easy to open without needing to meet strict membership requirements
We review the accounts that meet these requirements against one another to make our final decision. Accounts that stand out among each other, with a strong APY and low requirements, are selected as the best accounts.
How should I 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. Compare savings accounts earning rates higher than the national average, which currently sits at 0.35%, according to the FDIC.
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 automated savings tools. A built-in savings tool can help you grow your deposit without a lot of additional work on your end. For example, some banks can round up your debit purchases to the nearest dollar and deposit the extra into your savings account.
Make sure the bank is insured. Look for an FDIC-insured bank or NCUA-insured credit union that will insure your money up to $250,000 if it goes bankrupt. If you have more money to put away, move some of your savings into another bank that will insure another $250,000.
How to best leverage your savings account
Here’s three ways to maximize the money you put in your account:
Deposit funds while the APY is high. Savings account APYs can fluctuate over time, so it pays to put as much money as you can afford into the account while the APY is high.
Compound interest. Ideally, you want a high-interest compounding 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’ve already earned.
Use automatic savings. Automate how much and how often you move over to your account. Whether it’s on a weekly or monthly basis, choose the frequency that best aligns with your budget.
Expert tip: The more you deposit, the more you'll earn.
While a low minimum opening deposit is a considering factor when opening a high-yield account, if you find one with a higher opening deposit, it shouldn't be a deal-breaker, if you can swing it. After all, the more you save, the more you'll get back in interest.
For example, if you deposit $1,000 into a savings account earning 4.21% APY, you could earn $42 back in interest after a year. But if you deposit $5,000, you'll earn $211 back in interest. And you'll earn and save even more if you make recurring deposits every month.
The strongest APYs on the market come from 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. Since online banks save on these overhead costs, they get to pass these savings to their customers in the form of higher rates and lower fees.
Are there any 5% accounts?
Yes. There are accounts earning rates as high as 5%, but they 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.
Savings rates change in response to interest rate changes enacted by the Federal Reserve. The Federal Reserve typically meets eight times a year, though they meet more often when economic events require it.
When the economy is doing well, interest rates tend to rise. In 2022 for example, the Federal Reserve raised the interest rate seven times. The opposite is true with a poorer economy, where interest rates will lower.
Although banks aren’t required to change their rates the moment the federal rate changes, in 2022 we saw online banks increase their rates once or twice a month.
How much money will I earn if I keep $10,000 in my account?
You could save hundreds depending on how much you keep in your account, the compounding rate, how strong the APY is and the length of time you leave your money untouched.
For comparison, here’s how much money you’d earn with a strong high-yield savings account like CIT Savings Connect compared to a traditional savings account with a weaker APY like Chase Savings. In this example, we assume you keep $10,000 in your account and rates are compounded on a monthly basis without adding additional funds each year.
Savings Account
APY
Initial deposit
Year 1
Year 3
Year 5
CIT Savings Connect
4.2%
$10,000
$10,412.16
$11,289.58
$12,240.43
Chase Savings
0.01%
$10,000
$10,001
$10,003
$10,005
How to open a high-yield savings account
Much like any other type of bank accout, you need to provide your full name, address and governmnt-issued IDopen 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.
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:
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.
Compound interest. Ideally, you want a high-interest compounding 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.
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
A strong rate and low fees far outweight any drawbacks you’d find with a savings account.
Benefits
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.
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 as most banks are guaranteed by the FDIC, which means that eligible deposits are insured up to $250,000 a person, per bank. This is in stark contrast to investment accounts, which offer no form of insurance.
What to watch out for
Minimum balance requirements. Some high-yield savings accounts have tiered interest rates, which only pay a certain 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.
Withdrawal limitations. Savings accounts typically don’t provide a debit card and you’re limited to six monthly withdrawals due to federal law limitations. If you need more access, look for an account like UFB Preferred Savings, which comes with an optional ATM card.
Watch our short explainer video on pros and cons of online savings accounts:
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 10x higher than the national average. So if the national average is 0.35% APY, a high-yield savings account offers rates around 3.5%. For comparison, interest rates for traditional savings accounts usually match the national average or are way below it.
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:
Features
Online high-yield savings account
Regular 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
Who are high-yield savings accounts best for?
High-interest accounts are best for anyone looking to build a nest egg or emergency fund. They tend to work best for those with a sizable deposit that you won’t need to withdraw from often. This is because savings accounts place a limit on the number of transactions you can make per month. Funds left in a high-yield savings account are best left untouched over time to maximize the high rate they offer.
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.
Alternatives
If you’re not sure a savings account is for you, here are four alternatives for saving and storing your money.
CDs. Unlike a high-yield savings account, a CD locks your money, making it untouchable for the agreed upon term length. In exchange, a CD’s interest rate is also locked, even when the national rate fluctuates. You can find the best CD rates as high as 4.50% APY.
Money market saving accounts. These accounts are similar to savings accounts, though they offer a few checking account features you won’t typically find on a savings account. For example, a money market account allows you to write checks and comes with an ATM card.
Interest-bearing checking accounts. A high-yield checking account offers a place to spend and save on unspent funds. You can find the best checking account rates as high as 4% APY.
Treasury bills. T-bills are a type of short-term loan to the government backed by the US Treasury Department. Most offer a term of one year or less, with longer terms offering higher rates.
Featured alternatives
These high-interest alternatives sport rates up to 13x higher than the national average.
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. If you’re looking for a more well-rounded account regardless of how high it’s rate is, check out the best savings accounts today.
Cassidy Horton is a freelance copywriter and journalist, specializing in personal finance. Her writing and analysis has been featured in Forbes Advisor, Money, The Balance, Money Under 30, Insure.com and other top digital publishers. She holds a BS in public relations and an MBA from Georgia Southern University.
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