High-yield savings accounts can help you earn extra money toward your savings goals. And to make things even better, rates are the highest they’ve been in more than a decade.
“You’re always going to want to have a high-yield savings account accessible because it’s going to bring you more money and higher interest rates than a checking account and even higher interest rates than what your bank is providing you for a savings [account],” said Rita-Soledad Fernández Paulino, who goes by “Soledad,” a personal finance coach and founder of Wealth Para Todos.
Unlike traditional savings accounts offered at brick-and-mortar banks, right now the best high-yield savings accounts offer annual percentage rates between 4.50% and 5%, more than 10 times the Federal Deposit Insurance Corporation’s national savings average of 0.42% APY. Depositing money into this low-risk bank account can help you earn extra money toward your savings goals.
Whether savings rates are climbing or falling, a high-yield savings account can offer you easy access to money earmarked for your emergency fund, sinking fund or other short-term savings goals.
Since the best high-yield savings account rates can be found at online banks, it’s important to know how to deposit and withdraw money from your account, and how your interest rate can fluctuate over time. Here’s what you need to know about HYSAs, the banks offering the best rates right now and how three experts recommend using this savings vehicle.
Compare the best high-yield savings accounts
Bank | APY | Minimum deposit |
Newtek Bank | 5.25% | $0 |
UFB Direct | 5.25% | $0 |
TAB Bank | 5.02% | $0 |
Laurel Road | 5.00% | $0 |
My Banking Direct | 5.00% | $500 |
Bask Bank | 5.00% | $0 |
Bread Savings | 5.05% | $100 |
BMO Alto | 4.75% | $0 |
Citizens Access | 4.50% | $0.01 |
Synchrony Bank | 4.50% | $0 |
Quontic Bank | 4.50% | $100 |
Varo | 3.00% to 5.00% | $0 |
Below is our latest list of top-yielding high-yield savings accounts to help you park your savings in the right spot while rates go up. The estimated earnings displayed in the table below assume a consistent annual percentage yield for one year.
We’ll keep this list updated regularly. Read on to determine which high-yield savings account is best for you.
- APY
- 5.25%
- Min. deposit to open
- $0
Newtek Bank is the online-only arm of Newtek One. The 5.15% APY applies to all balance levels, but you’ll be limited to six withdrawals per statement cycle. This account doesn’t offer an ATM card. Cash access is available through linked accounts. You can open as many personal banking accounts as needed, all of which can be managed through an online banking account or mobile app. If you don’t want to manage your account online, or find yourself needing to make more than six withdrawals a month, it’s best to consider other options.
![UFB Direct](/personal-finance/assets/uploads/resize/1fb4adc6f301221100a4b67bb1dcb0d0c6c6294d/m1/2023/03/ufbdirect-logo.webp?width=400&auto=webp)
- APY
- 5.25%
- Min. deposit to open
- $0
UFB Direct’s savings rate — 5.06% APY — ranks at the top of the accounts we reviewed for this week.
That APY applies to all balances, and there’s no minimum deposit or balance requirements. Unlike other high-yield savings accounts, UFB Direct’s savings account comes with a free ATM card. The account has a limit of six withdrawals a month, but that doesn’t apply to ATM cards. You’ll have mobile banking, which comes with mobile deposit and transfers.
UFB Direct is an online bank that also offers its own base savings and checking accounts, but you won’t earn as high of a yield with these accounts. However, you still can earn a competitive rate with UFB Direct’s Preferred Money Market account.
![TAB Bank](/personal-finance/assets/uploads/resize/0e9a64ee99cef2773ee22fca54fe271fbc262964/m1/2023/03/tabbank-logo-square.webp?width=400&auto=webp)
- APY
- 5.02%
- Min. deposit to open
- $0
We like that TAB Bank’s high-yield savings account is pretty straightforward. No monthly maintenance fees, no minimum deposit or balance requirements, and an APY of 5.02% put TAB Bank squarely on the list of best high-yield savings accounts.
TAB Bank is an online-only bank that offers, checking, savings, money market and CD accounts. TAB Bank lets you earn cash-back rewards on your purchases with its checking account option and special bank accounts are available for truckers. We also like that TAB has extended customer service hours, including Saturdays, by calling 800-355-3063.
![Laurel Road](/personal-finance/assets/uploads/resize/9c258abaa00dbb8327a773dddbfb5077362b0de1/m1/2023/05/laurelroad.png?width=400&auto=webp)
- APY
- 5.00%
- Min. deposit to open
- $0
Laurel Road’s savings account doesn’t require a minimum deposit or balance to earn its competitive 5.00% APY. Laurel Road is the digital arm of KeyBank, but it doesn’t accept cash deposits. For that, you’ll need to transfer funds and manage your account online.
Laurel Road began as a student loan originator in 2013. As of 2019, it was acquired by KeyBank and now offers checking, savings and loan products primarily geared toward healthcare and business professionals nationwide. Its digital platform merges technology with banking services to offer a high-yield rate that applies to the entire balance, one that’s FDIC-insured for up to $250,000.
![My Banking Direct](/personal-finance/assets/uploads/resize/31b6d86df94dd6a0d40375c024e75b79723335a2/m1/2023/03/My-Banking-Direct-1.jpg?width=400&auto=webp)
- APY
- 5.00%
- Min. deposit to open
- $500
My Banking Direct recently adjusted its high-yield savings account rate, boosting it to a hefty 5.00% APY, with no maintenance fees, no minimum balance requirements and interest provided on all balances above $1. My Banking Direct is a subsidiary of New York Community Bank. It doesn’t advertise information about wire transfer fees on its website or in its official account disclosures.
![Bask Bank](/personal-finance/assets/uploads/resize/38491b8d30c6b825db92c64f28472c66a8ccf880/m1/2023/03/bask-bank-logo-square.webp?width=400&auto=webp)
- APY
- 5.00%
- Min. deposit to open
- $0
Bask Bank is an online-only bank that offers two savings products — a mileage account that gives American Airlines AAdvantage miles for your savings, and an interest savings account that currently offers one of the highest APYs on our list.
Even better, there are no monthly fees, no minimum balance requirements and no minimum initial deposit at Bask Bank, though it reserves the right to close your account if it sits unfunded for 15 business days. Bask Bank allows six withdrawals from your account per month, but does not provide any check requests. Outgoing wire transfers cost $35.
![Bread Savings](/personal-finance/assets/uploads/resize/2170041096179bde3d4161f220eb791bda3ddb29/m1/2023/03/download-2.png?width=400&auto=webp)
- APY
- 5.05%
- Min. deposit to open
- $100
Formerly Comenity Direct, Bread Financial offers two savings options — certificates of deposit and a high-yield savings account. The high-yield savings account offers a 4.90% APY, but requires a minimum deposit of $100 to get that high rate.
There are no monthly maintenance fees and you’ll have unlimited free deposits via mobile check, ACH transfer and wire transfer.
![BMO Harris](/personal-finance/assets/uploads/resize/9efd9a55250ea41bc453c94346689627dee09cb6/m1/2023/05/bmo.png?width=400&auto=webp)
- APY
- 4.75%
- Min. deposit to open
- $0
BMO Alto is the online-only arm of BMO Financial Group, the parent organization to BMO Harris Bank and Bank of the West. BMO Alto only offers two deposit accounts: the BMO Alto Online Savings and the BMO Alto Certificate of Deposit. In addition to earning a competitive APY, its savings account was added to this best list because there are no monthly fees, minimum deposits required to open or minimum balances to maintain. The unlimited number of transfers and withdrawals permitted is an added benefit.
This account is best paired with other bank accounts because it doesn’t provide a debit card or offer ATM access. Money in this account can only be accessed or deposited through externally linked bank accounts.
- APY
- 4.50%
- Min. deposit to open
- $0
Citizens Access is an online banking option that passes savings to customers with a strong 4.50% APY and no hidden fees. Like many other savings accounts, you can make direct deposits and recurring transfers. However, you won’t be able to deposit cash.
Citizens Access is the digital banking arm of Citizens Bank, a traditional bank that’s now officially Citizens Financial Group. However, Citizens Access operates only online. And it mostly provides home loans, student loan refinancing and a high-yield savings account. No checking or money market accounts are available.
- APY
- 4.50%
- Min. deposit to open
- $0
Synchrony Bank is one of the best online banks we feature at CNET. We like that it offers competitive APYs and has extended customer service hours. Its high-yield savings provide a competitive APY of 4.50% with no monthly fees or minimum balance requirements.
While there’s no option of a complementary checking account at Synchrony, savings accounts at Synchrony have debit cards that can withdraw money from ATMs. Synchrony doesn’t charge for non-network ATMs and gives $5 back per month for other banks’ ATM fees. However, no cash deposits are accepted.
Other savings options are available, including money market accounts, CDs and a few retirement options.
- APY
- 4.50%
- Min. deposit to open
- $100
Quontic Bank is keeping pace with competitors by adjusting its savings account rate to 4.25% APY — the rate applied to all balances. Quontic has no monthly maintenance fees or minimum balance requirements, though it requires $100 to open a high-yield savings account.
Quontic compounds interest daily and pays it out monthly. It charges $25 for a domestic wire transfer out and $35 for an international wire transfer. All ACH transfers and incoming wire deposits are free.
![Varo Bank](/personal-finance/assets/uploads/resize/945698a5eb86b605dc5323216999575292b67500/m1/2023/03/varo-bank-logo-square.webp?width=400&auto=webp)
- APY
- 3.00%-5.00%
- Min. deposit to open
- $0
There’s always a wild card — Varo provides the only notable banking innovation on our list, with a tiered savings rate that encourages low balances. Varo will give you 5.00% APY back if your daily balance never goes over $5,000 during an entire monthly billing cycle. If it gets above $5,000, you’ll get 3.00% APY on the entire balance for that month.
To qualify for any interest at all, you’ll need to have $1,000 in direct deposits every month and end each month with a positive balance in both your Varo Bank and Savings account. While Varo presents a tempting APY for those with lower balances, once your account balance exceeds $5,000, you’ll drop down to the lower APY.
Aside from its high-yield savings account, Varo is an online bank that has a checking account with a few sweet perks. You can earn cash back and get your paycheck two days sooner. Keep in mind that no physical branches are available to manage your account.
What is a high-yield savings account?
A high-yield savings account is a type of savings account that often offers interest rates at least 10 times higher than the national average. Most high-yield savings accounts are offered at online-only banks. Since online banks don’t have the overhead costs of maintaining physical branches, they’re often able to pass some of these cost savings down to customers in the form of lower fees and better APYs on savings, certificates of deposit and money market accounts. A high-yield savings account lets you earn a little extra interest on the money you’re saving each month. And with rates hovering around — and even over — 5% APY right now, it might be worth moving your savings to a high-yielding account.
High interest rates are making saving products a topic of everyday conversation, said Shang Saavedra, founder and CEO of Save My Cents. Saavedra’s followers have recently been asking her more questions about how high-yield savings accounts work. “The rates are so attractive that some people see it as an investment product,” Saavedra added.
It’s true, a high-yield savings account can be considered an investment product for short-term goals. And these accounts also offer quick access to withdraw and deposit money.
While many high-yield savings accounts offer high APYs on your full balance, some banks cap the amount of money that can earn this rate. For instance, Digital Federal Credit Union offers an impressive 6.17% APY on its high-yield savings account — but only on balances up to $1,000. Any balances over that receive a paltry APY of 0.15%. And, in some cases, banks might require you to deposit a higher minimum amount in order to be eligible for the higher APY.
What experts are saying about high-yield savings accounts
We spoke with three financial experts to help explain the best way to use high-yield savings accounts, what to look out for and offer additional tips and guidance in the current rate environment.
To start, you should know that interest rates for savings accounts are measured based on annual percentage yield or APY, which is how much money you’ll earn, including compound interest, on your savings in a year. And you’ll usually find the best rates at online-only banks.
“To leverage the high-yield savings account rates we’re seeing, you’ll need to look at an online-only bank. Many of these banks do not necessarily advertise widely or are banks that you have heard of, so it will feel a little unfamiliar at first,” said Saavedra. “It’s best to read reviews, ask questions and make sure you feel comfortable with how you can access your money before opening an account. And to protect your funds, make sure the bank offers FDIC or [National Credit Union Administration] insurance in case of a bank failure.”
Currently, some of the best high-yield savings accounts offer APYs as high as 5.00%, with a few like TAB Bank or UFB Direct offering just over 5.00% APY.
Compare this to some traditional savings accounts, which offer APYs as low as 0.01% and you can see the real value. For example, deposit $100 a month into a high-yield savings account for a year with a 4.25% APY and rates remain the same during this time, you’ll earn about $23 in interest. If rates go up as you make contributions, you’ll have a bigger return. Whereas, if you deposit the same amount in a traditional savings account with a 0.01% APY, you’ll only earn 5 cents. (Note: APYs for savings accounts do fluctuate, so you might not earn a steady rate for the entire year.)
Keep in mind that some banks have balance requirements to earn the highest interest rate, while others keep it straightforward.
“I prefer to work with a bank that gives me a straight-up interest rate that’s going to be the same for all my money,” said Soledad. For instance, a bank may only offer a 5.00% APY on up to $3,000, or if you deposit that amount when opening the account. “Always read the fine print.”
But don’t expect 5% high-yield savings rates to stick around long term. Savings APYs are variable and often move in lockstep with the federal funds rate. The Federal Reserve has raised rates 11 times since March 2023, to tamp down on staggering inflation. While that’s boosted savings rates, it’s also raised interest rates on consumer loan products, like credit cards, personal loans, home equity loans and home equity lines of credit. When borrowing rates are high, it makes financing more expensive and difficult for households and businesses, which plays a role in slowing economic growth.
“Right now we might be in an environment with really, really high interest rates. But by default, the Fed doesn’t like to stay there,” said Delyanne Barros, founder of The Money Coach.
Though the Fed just raised interest rates again in July, and there’s the potential for another rate hike this year, experts don’t expect savings rates to climb much higher. If you aren’t earning over 4% on your savings account, you should consider switching to a high-yield account to earn a better return while rates are high.
Read more: Types of Savings Accounts Compared
What a high-yield savings account is best for
A high-yield savings account is a great place to park money dedicated to short-term savings goals. Here are a few types of funds you might use a HYSA for:
- Emergency fund: Your emergency fund is money that provides an extra layer of security against unexpected expenses, and it should always be in a high-yield savings account, said Soledad. You’ll have access to the money when you need it and you can make regular contributions over time to be prepared for an unforeseen event, such as a job layoff or medical bill. You should keep your emergency fund separate from any other savings goals, and only pull funds from this account to cover essentials like housing costs, bills, medical care or an unexpected expense.
- Sinking fund: A sinking fund is a way to set aside savings for a short-term goal you have, such as holiday gifts or a concert. It’s money you save for a specific upcoming expense, said Soledad. You can open separate high-yield savings accounts or use a bank like Ally that offers savings buckets to help organize and separate savings goals within one account. You may set up automatic transfers or contribute occasionally to reach your goal. That way, when it’s time for your purchase, you’ll have the money you need without overspending or taking on debt.
- Money you may not have earmarked yet: If you’re unsure about goals you have for some funds, you may keep the money in a high-yield savings account to earn interest while you decide. When you’re ready, you can move the funds to the right account or goal — whether you choose to invest, start a new sinking fund or spend the money.
You shouldn’t use a HYSA as your primary retirement savings vehicle, but that doesn’t mean you shouldn’t park extra funds in a high-yield savings account as you approach retirement age.
“I’m planning to have two to three years of expenses saved [in a high-yield savings account] by the time I retire. Because if for some reason the market crashes the year that I retire, I don’t want to be pulling out of my investments that year,” said Barros. “That’s when a high-yield savings account or a regular savings account becomes something even more vital to your portfolio.”
The strategy can be helpful so you don’t have to sell your investment assets at reduced prices, echoes Soledad. “If you only have one or two years left before retiring, I suggest you balance between saving in products that provide a guaranteed rate of return,” she said. That can include high-yield savings accounts, CDs, bonds and investments you don’t plan to sell for at least three years.
When you shouldn’t use a high-yield savings account
You shouldn’t park your primary retirement fund or cash for long-term goals in a high-yield savings account. Although APYs are higher than they’ve been in years, they can’t compete with the compounding interest rates of the stock market. Your main retirement fund should be parked in a 401(k), IRA or other tax-advantaged growth account. However, you might consider a mix of CDs, index funds, exchange-traded funds, treasury bonds or money market funds to earn the best return for other longer-term goals.
What to look for when opening a high-yield savings account
Deposits and withdrawals
Since most high-yield savings are at online banks, make sure you understand the ways you can deposit and withdraw your money. Aside from direct deposit and transfers from other bank accounts, most banks with online access offer mobile check deposits, which lets you take a photo of your check to scan and deposit it into your account. Just watch out for mobile check deposit limits, said Soledad. Sometimes you can’t exceed a limit of $5,000, for example. If your check is larger than the limit, you can often deposit the money into your checking account, then transfer it.
Some high-yield savings accounts may offer cash deposits at ATMs — but many don’t. This can pose a challenge if you regularly receive money in cash. In this case, depositing into a separate bank account and transferring it to your savings account may work well, but will take more time.
Savings goals and features
Many high-yield savings accounts offer different ways to earmark money for different savings goals.
“I’m a big fan of Ally because I like their buckets feature,” said Soledad. Ally Bank lets you keep your money in one account, while clearly categorizing it for different savings goals. “Not all high-yield savings accounts have this bucket feature where you can categorize your money.” However, you could also open multiple savings accounts to keep your financial goals separate.
“The ability to categorize your savings so that you can set up sinking funds, I think, is very beneficial,” said Soledad. However, some banks will limit how many accounts you can link, she adds. For instance, you may have a checking account and several savings accounts to track your goals individually.
If you have multiple accounts, make sure your high-yield savings account is linked to the primary account that your paycheck or other income is deposited so you can easily transfer funds.
Withdrawals limits
While you might not need to withdraw from your high-yield savings account often, if emergency expenses pop up several times in a row, you might find yourself tapping into your savings multiple times in a given month.
“Look out for how many times you can pull money out a month for this account,” said Soledad.
Although Regulation D (PDF), which limited savings account transfers to six per month, was indefinitely suspended by the Federal Reserve, some banks still adhere to this limit. That means if you exceed this number of transfers, you may get charged an excessive transfer fee. The charge can vary by bank, but is usually $10 for each transaction that exceeds the limit.
Pros and cons of high-yield savings accounts
High-yield savings accounts are often recommended by experts as a low-risk way to save money, but there are some drawbacks to consider. Here are a few pros and cons to weigh.
Pros
-
Higher interest: Usually, high-yield savings accounts have higher APYs than traditional savings and checking accounts — which can yield a bigger return.
-
Flexibility: You can withdraw money when you need it; it’s not locked in for a set term like a certificate of deposit.
-
FDIC insured: As long as your high-yield savings account is at a bank that’s FDIC- or NCUA-insured, your money will be protected for up to $250,000 per person, per account.
-
Can help curb spending: Money that is out of sight is often out of mind. Keeping extra funds in a HYSA can help prevent you from spending on nonessentials.
Cons
-
Limited or no physical bank access: Usually, only online-only banks offer high-yield savings accounts, so you’ll need to be comfortable managing your account online.
-
Transfer time: It can take one to three business days to transfer money from your savings to an external bank account.
-
Withdrawal limits and fees: Some banks may limit your withdrawals to six per statement cycle before charging an excessive withdrawal fee.
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Variable interest rate: You won’t lock in a fixed savings rate like you can with a CD. Instead, your APY could change anytime.
How to open a high-yield savings account
You can typically open a high-yield savings account online in a matter of minutes. While the steps may vary by bank, here’s what you should do.
- Compare your options: Before opening an account, review different banks, features, rates and requirements to make sure you’re choosing the right fit for your financial situation.
- Apply: This process is often handled online, but can be done in person if your bank has physical branches. You’ll typically need to provide your Social Security number, physical address and contact information for your application. If you don’t have an SSN, some banks may allow you to open an account with an Individual Taxpayer Identification Number, or ITIN. Some banks may also require you to link your account and routing numbers from another account or financial institution to transfer your funds.
- Make a deposit: Depending on the bank, you’ll need your minimum deposit ready when opening the account. If not, you can transfer money when you’re ready. Most banks allow bank transfers, automated clearing house, or ACH, transfers and mobile check deposits.
FAQs
High-yield savings accounts are good for anyone saving for emergencies and short-term goals. Your HYSA is a good spot for an emergency fund and a short-term savings goal, such as car repairs or a vacation. It’s also a great place to put unexpected financial windfalls, such as a tax refund or an inheritance as you decide whether you want to save, invest or spend the money.
Depending on your long-term goals, you won’t earn a big return with this account, but the easy access to your funds makes it a good place for extra money you’ll want to have handy during retirement, too.
While each bank has a proprietary methodology for establishing APYs, many accounts are loosely connected to the federal funds rate — the interest rate at which banks lend to each other. Since the Fed has raised the federal funds rate 11 times since March 2022, APYs for deposit accounts such as savings accounts and CDs have also risen.
The Fed rate hikes generally trickle down to consumer deposit accounts, but it can take a while to see the effects. After the latest rate hikes, more banks continue to increase APYs on high-yield savings accounts. Rates are approaching 5.00% APY for many banks.
Despite the Fed rate increases, the major national banks such as Wells Fargo, Bank of America and Chase seem unwilling to budge so far and are still offering savings accounts with very low interest between 0.01% and 0.15%.
Right now, many online-only banks are still slightly raising savings APYs, and experts predict rates will continue to slightly increase as the Fed keeps interest rates high.
Our approach
CNET reviews high-yield savings accounts based on the latest information posted on bank, credit union and neobank websites. We evaluated APYs, minimum deposits, monthly maintenance fees, minimum balances and other terms and conditions for saving accounts from more than 50 organizations. We selected the savings accounts with the highest APYs and the best terms for banking consumers.
The banks, credit unions and neobanks we reviewed include: Affirm Savings, Alliant Credit Union, Ally, America First Credit Union, American Express High Yield Savings Account, Axos High Yield Savings, Bank of America Advantage Savings, Bank of the West, Bank5 Connect, Barclays, Bask Bank, Bread Savings, BrioDirect High-Yield Savings, Capital One 360 Checking, Charles Schwab, Chase Premier Savings, Chime, Citibank, Citizens Online Savings Account, Colorado Federal Savings Bank, Consumers Credit Union, Discover, First Internet Bank of Indiana, LendingClub, Live Oak Bank, M&T Bank, Marcus, My Banking Direct, Nationwide My Savings, Navy Federal Credit Union, NBKC, OneUnited Bank, PenFed CU, PNC, Popular Direct Select Savings, PurePoint Financial, Quontic Bank, Rising Bank, Salem Five Direct, Sally Mae Smarty Pig, Santander Bank, Synchrony, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, USAA Bank, Varo, Vio and Wells Fargo.
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