A high yield savings account, or HYSA, could be an excellent place to keep your money, as it can offer great returns for practically no risk.
This type of savings account is ideal, whether you’re saving up for an emergency fund or a down payment on your mortgage.
Understanding what a high yield savings account is and which financial institutions offer the best ones is important when choosing the best account for you –we all have different financial goals and requirements.
Different banks offer different features, so in reality, there is no one best account for everyone.
In this article, we will be looking at some of the highest-interest savings accounts available today, along with some of the best features to help you make the right decision for you.
Best High Yield Savings Accounts for June 2023
Here are the top 14 best high yield savings accounts:
- UFB Direct: Premier Savings Account
- Discover: Online Savings Account
- First Mid Bank & Trust: High Yield Savings Account
- Ally: Online Savings Account
- Varo: Savings Account
- Alliant Credit Union: High-Rate Savings
- Marcus: Online Savings Account
- Sallie Mae: SmartyPig Savings
- CIT Bank: Savings Connect
- Fitness Bank: Savings Account
- Popular Direct: High Rise Savings Savings
- Capital One: 360 Performance Savings
- Synchrony: High Yield Savings
- American Express: Savings Account
1. UFB Direct: Premier Savings Account
Current Rate: 4.81%
UFB Direct is a growing division of Axos Bank, but they specialize in just two products: mortgages and savings accounts.
This hyperfocus combined with the low overhead that comes with being an online-only bank means that they’re able to offer rates that are consistently at the top.
And these high rates aren’t just promotional deals available for the first few thousand in your account. Instead, their current 4.81% APY is on your entire balance.
Plus, in our experience, UFB Direct has been consistently increasing their APY as the fed hikes their rate, so we expect that to continue to increase in 2023.
The account comes with no maintenance fee or balance requirements.
One thing to keep in mind, however, is that their online tech and mobile app isn’t as polished as some of their bigger competitors, so if you plan to interact with your account often, the experience may frustrate you. If you’re looking for a place to park some short-term cash that’s FDIC-insured and offers consistently high rates, however, then UFB Direct is a great choice.
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2. Discover: Online Savings Account
Current Rate: 3.90%
Discover Bank’s Online Savings Account offers high interest rates on all balance tiers.
There are no monthly maintenance fees, no insufficient funds fees and no requirements for maintaining a minimum balance.
Setting up the account is easy and can be done completely online using the link below. Should you have questions, the bank also offers 24/7 telephone support.
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3. First Mid Bank & Trust: High Yield Savings Account
Current Rate: 4.90%
First Mid has partnered with SaveBetter to offer a high-yield savings account nationwide. If you’re looking to earn close to 5.00% APY with no strings attached, this account should be on your list.
It has a $1 minimum opening deposit, and all account balances earn the full APY. At this time, there’s also no transaction limit for the account.
Funds placed in the account are FDIC-insured up to $250,000 and you can open an account anywhere in the country.
You can also enroll in high-yield CD and penalty-free CD accounts from First Mid and easily manage all of your deposit accounts directly on the SaveBetter platform.
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4. Ally: Online Savings Account
Current Rate: 3.85%
Ally Bank’s Online Savings Account offers high interest rates on all balance tiers.
There are no monthly maintenance fees applicable for this account and no requirements for maintaining a minimum balance, making this account very accessible regardless of your budget.
The account also includes several different features that can help you save money. One such feature is Buckets.
This can help you organize your savings according to your financial goals, while recurring transfers can help you make sure that you can save consistently. Other savings boosters include Round-Ups and Surprise Savings – both of which can be set up straight from the account at no extra charge.
Setting up the account is easy. The bank also offers 24/7 telephone support, which can prove to be very useful should you have any questions or concerns at any point.
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5. Varo: Savings Account
Current Rate: up to 5.00%
The Varo Savings Account overall has a solid 3.00% APY, but if you meet two requirements this APY will increase to up to 5.00% for balances up to $5,000, making it one of the best high yield savings account rates.
To get the up to 5.00% APY you need to:
- Have at least $1,000 per month direct deposited into your account, and
- End the month with a positive balance in your Varo Bank Account and Savings Account.
Additional balances above $5,000 will earn 3.00% APY.
The account can be opened online through the bank’s website or by downloading their smartphone app.
If you also have a Varo bank account, you can use their automatic savings tools to grow your savings without too much effort. From saving a percentage of your pay to using round-ups, Varo makes it easy to save money.
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6. Alliant Credit Union: High-Rate Savings
Current Rate: 3.10%
Alliant Credit Union’s High-Rate Savings account is an NCUA insured high yield savings account with very competitive interest rates.
To earn interest, you will need to maintain an average daily balance of $100 or more. The good thing about Alliant’s rate is that there are no ceilings. This means that you’ll get to enjoy the interest rate, regardless of how much money you accumulate.
There are no maintenance fees to pay as long as you choose the eStatements option. This shouldn’t be a big issue as the credit union offers mobile banking and online banking, making it even more convenient to manage your money.
The account also has a minimum balance of $5.00 that needs to be met for the account to stay open.
To make things better, Alliant tops our list of the best credit unions, so you can’t go wrong with this choice.
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7. Marcus: Online Savings Account
Current Rate: 4.15%
Marcus’ Online Savings Account is consistently known to offer some of the best APYs for high-yield accounts.
There are no account fees and no minimum deposit requirements making this account very accessible. You can link other bank accounts to send and receive money. Incoming and outgoing transfers of up to $100,000 will be completed on the same day if done by 12 pm ET.
The account is FDIC-insured and can be opened online from the convenience of your home. Just like every other account, you’ll need to provide personal information such as your name, address, and SSN (Social Security Number) to complete the process.
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8. Sallie Mae: SmartyPig Savings
Current Rate: 3.75%
While SmartyPig might sound unconventional as far as banks go, it’s actually run by Sallie Mae – one of the largest private student loan lenders, and is FDIC insured.
Their highest yield is applicable on balances of up to $10,000, with anything above this earning a slightly lower APY.
There are no maintenance fees, and you can even open multiple saving accounts to cater to different financial goals.
Their website also offers tips and tricks to help you improve your financial standing, thanks to Professor Pig and their regular blog posts.
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9. CIT Bank: Savings Connect
Current Rate: 4.60%
CIT Bank’s Savings Connect account offers high-yield interest without all the tiers of their Savings Builder account.
There are no maintenance fees and no fees to open the account; however, you’ll need to a minimum opening deposit of $100 to setup the account.
The account is FDIC insured, and interest is compounded daily to ensure that you earn the maximum amount of interest possible. The account includes access to the CIT Bank mobile app, which allows you to remotely deposit checks and make transfers from your phone.
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10. Fitness Bank: Savings Account
Current Rate: up to 4.25%
Fitness Bank’s high yield savings account has a tiered APY rate as well. To get higher rates, instead of saving more money, you’ll just need to be more active.
Their app tracks your activities, including walking, running, biking, and swimming. The more steps you clock in, the higher the APY rate you’ll earn. Clock in 12,500 steps or more, and you’ll earn their top tier APY.
Fitness Bank is part of Affinity Bank. Their accounts are FDIC-insured. You can open the account online through the bank’s website. There is a $100 minimum deposit amount to open the account.
The account also has a maintenance fee of $10 per month, but this will be waived if you keep an average daily balance of $100.
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11. Popular Direct: High Rise Savings
Current Rate: 4.16%
Popular Direct’s High Rise Savings offers a competitive high yield APY on all balances and is FDIC-insured up to $250,000.
The minimum deposit amount to open this high yield savings is pretty steep at $5,000, and there is an early account closing fee of $25 should you opt to close the account within 180 days of opening.
Interest is compounded daily and paid out monthly. Withdrawals are limited to 6 per statement cycle; a $5.00 fee is assessed for each thereafter.
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12. Capital One: 360 Performance Savings
Current Rate: 3.90%
Capital One’s 360 Performance Savings account offers a high yield APY on any balance you have in the account.
There are no monthly fees and no minimum balance requirements, so you can save as much as you can without having to settle for a lower rate or a higher fee. The account doesn’t have a minimum opening balance and can be opened online, at one of the bank’s branches, or at a Capital One Cafe.
The account is insured by the FDIC and includes a mobile banking app that can let you do your banking on the go. You can use the app to track your progress, transfer funds, and deposit checks, among other things. You can make up to 6 withdrawals per month from your 360 Performance Savings Account.
You can add as many as ten different people as PoD (Payable on Death) beneficiaries with no access granted while you’re still alive. The only exception worth noting here is that no beneficiaries can be added if the account is set up as a trust account.
Learn More:
- Read our full Capital One 360 Performance Savings review
- Read our full Capital One review
- Learn more at Capital One’s website
13. Synchrony: Savings Account
Current Rate: 4.15%
Synchrony’s high yield Savings offers a high yield on on all balances.
The account comes with an optional ATM card, which lets you withdraw money from an ATM. Synchrony will also refund up to $5.00 per statement cycle for any fees incurred when making withdrawals.
The account can be accessed via Synchrony’s mobile app, installed on phoned and tablets regardless of whether they’re Android or iOS. The app supports mobile check deposit, fingerprint, or face recognition access and even integrates with Siri and Google Assistant.
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14. American Express: Savings Account
Current Rate: 4.00%
American Express’s High Yield Savings account offers top-tier interest rates with no minimum balance requirements and no monthly fees.
Withdrawals are limited to 9 per statement cycle, which runs a full month. The interest is compounded daily and paid out to your account every month, maximizing what you can earn on your account balance.
The bank offers 24/7 customer support, and the account is FDIC insured up to $250,000. You can opt for online statements or have them delivered by mail. Other features, such as automatic deposits, make it easy to keep your savings plan on track when using this account.
You can use the savings calculator available on the bank’s website to see how much money you can earn. The calculator even lets you include the optional initial deposit, how long you plan to save for, as well as any monthly and weekly contributions you might make to the account. This can help you plan your finances well in advance to achieve the results you’re after.
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What Is A High Yield Savings Account?
High yield savings accounts are savings accounts that earn interest rates that are higher than those offered on a traditional savings account.
Generally speaking, anything around a 0.30% APY rate or higher is considered a high yield.
One other notable feature of a high yield savings account is that the APY rate tends to be applicable for higher balance amounts.
As both brick and mortar and online banks continue to up their game to remain competitive, many banks offer a high APY rate, even on their checking accounts.
In this case, the APY rate tends to be applicable on balances up to a certain amount. In comparison, high-yield saving accounts tend to offer the highest rates on all balances, but it can’t hurt to have a high-yield checking account as well.
How to get the most out of your high yield savings account
High yield Savings accounts offer a relatively high-interest rate on your balance. The more money you save, the more money that interest rate is going to earn you.
One of the best features of APY is compounding interest – the interest you earn will earn you more interest as long as it remains in your account.
Setting up a recurring direct deposit and avoiding unnecessary withdrawals can help you maximize the return you can make with such accounts.
Good budgeting and planning go a long way in helping you make sure that the money you save stays saved and continues to grow.
Regulation D
Regulation D is a regulation by the Federal Reserve Board. It essentially limited savings withdrawals to 6 a month. While this regulation was removed back in April of 2020, some banks have kept the limits it imposed.
It is worth noting that while some banks have kept the six withdrawal limit, others have extended it while several others have removed it altogether.
While the withdrawal limit may seem like a big restriction, a bit of planning can help you stay within limits. This is why budgeting is so very important.
By having such limits in place, you can limit the number of times you dip into your savings. If you find yourself having to access the account too many times, consider opening a checking account.
What Are APY Interest Rates?
APY, which stands for Annual Percentage Yield, is the rate of return that you can expect to make in 1 year. This means that with an APY rate of 0.50%, as a depositor, you’ll earn 0.50% of your investment as interest.
APY also uses what is called compounded interest. When compounded interest is used, you don’t make money at the end of the year. Rather, the interest is worked out constantly throughout the year, and the interest earned up to that point added to your account.
Next time interest is worked out, it will take the entire balance of your account, meaning the money you deposited and the interest earned, so you’ll earn even more money. Of course, the money has to be left in the account for this to work.
What is the industry average?
Many banks quote their APY rate against the industry average, where they will state that the rate they offer is so many times more than the industry average.
Here, banks quote research done by entities such as the FDIC or other private firms about what rates other financial institutions offer. This is why you might come across an APY rate of 0.45% as being 9x the national average and an APY of 0.50% as being 4x the national average.
While big numbers tend to sound impressive, it can be more fruitful to compare the actual rates offered by different banks and credit unions. It’s also important to keep in mind what kind of fees the bank charges and any minimum balance requirements.
Keep in mind that an APY of 0.50% will make $5.01 in a year if you deposit $1,000. This can easily be wiped out with a maintenance fee of $10 per month, so consider everything that the bank is offering.
Learn More:
- What Banks Offer 3% Savings Accounts?
- Best 5% Interest Savings Accounts
- Do Banks Offer 6% Interest Savings Accounts?
- Do Banks Offer 7% Interest Savings Accounts?
Best High-Yield Savings Rates For June 01, 2023
| Product | APY | Min Deposit |
|---|---|---|
| Western Alliance Bank High Yield Savings Account |
5.05% APY | $0 |
| Varo Bank Savings Account |
up to 5.00% APY | $0 |
| First Mid Bank & Trust High Yield Savings Account |
4.90% APY | $0 |
| Mission Valley Bank High Yield Savings Account |
4.86% APY | $0 |
| CIT Bank Platinum Savings |
up to 4.85% APY | $100 |
| UFB Direct UFB Premier Savings |
4.81% APY | $0 |
| Upgrade Premier Savings |
4.81% APY | $0 |
| Bask Bank Bask Interest Savings |
4.75% APY | $0 |
| Bread Financial High-Yield Savings |
4.65% APY | $100 |
| CIT Bank Savings Connect |
4.60% APY | $100 |
How Safe Are High Yield Savings Accounts?
Generally speaking, high yield Savings accounts are very safe. To ensure that you’re covered, you’ll need to verify a couple of things.
The first thing that you’ll need to make sure is that the account is insured by the FDIC (Federal Deposit Insurance Corporation) if it’s a bank or the NCUA (National Credit Union Administration) if it’s a credit union.
This insurance protects you against the possibility of losing your money should the financial institution that holds your account go under.
Online banks usually work with traditional banks through which the insurance is offered. This information is always disclosed on the website. In most cases, accounts are insured up to a maximum of $250,000. This means that any amount over and above this threshold is not insured, so be mindful of that.
You’ll also need to make sure that any mobile banking app or online banking website is secure. Most banks will explain what kind of security they implement. On the other hand, making sure that the website is secure is as easy as looking for the padlock icon next to the website’s address in your URL bar.
Frequently Asked Questions
How does a high yield savings account differ from a cd?
For high-interest savings accounts, unlike many other deposit accounts such as CDs (Certificates of Deposit), your money remains accessible and can be withdrawn at any time – while growing at the same time.
What is a high yield savings account?
High yield savings accounts are savings accounts with higher APY rates than what banks usually offer on a savings account. Generally speaking, savings accounts with an APY of 0.30% or higher are considered high yield.
Can you lose money in a high-yield savings account?
It is next to impossible to lose money in a high-yield account. This is for a few reasons. First, the money is not invested, which means the value of your initial deposit will not go down. Accounts are also insured by the FDIC, usually up to $250,000. This means that should something happen to the financial institution you have the account with, you can get your money back up to the insured amount.
How much interest will I get on $1000 a year in a savings account?
This will largely depend on the effective interest rate applied to your savings and how it is applied. Most banks compound the interest daily and pay it out to the account monthly. Even so, it’s always good to verify that this is actually the case.
This means that if you were to deposit $1,000 in an account with an APY of 0.50% that’s compounded daily, you’d make about $5.00 in a year.
Are high yield savings accounts worth it?
High yield savings accounts offer one of the best ratios between risk and return. While the return might not be as high as you could potentially make by investing the money in the stock or forex market, the risk is also much lower.
The return rate is also higher than you would make on a normal savings account without any extra risk. This makes this type of account ideal to save money, from growing your emergency fund to saving for a down payment on a mortgage.
Learn More:
- Are High Yield Savings Accounts Worth It? (Pros & Cons)
- Best Savings Account Bonus Offers & Promotions
Which High Yield Savings Account is Best for You?
So, to sum up – a high yield savings account offers much more bang for your buck than your average savings account.
It can help you grow your savings much faster than traditional savings account with less risk than investing in speculative markets such as stocks and foreign exchange. But with many banks and credit unions offering very competitive rates, choosing the right bank for you can be hard work.
While great rates are important, remember there are other things to think about. Account features such as accessibility and service fees can ultimately eat into your savings – so make sure that the bank and account you choose are aligned with your savings goals.
Other features such as account debit cards and credit facilities, the ability to make wire transfers, and how overdrafts are handled are also important and can greatly impact your savings experience.
Always look for accounts that are FDIC or NCUA insured. While it might not be an everyday occurrence for a bank or credit union to go under, it is not unheard of either.
Verify the maximum amount covered by the insurance as this can change from one bank to another. Remember that anything over and above the insured amount is ultimately at risk and might be better off invested elsewhere.
Remember that even a high yield APY rate probably won’t earn you enough money to quit your job. The important thing is to use your new account wisely.
Savers would do well to leave the money in their savings account to continue to grow and accumulate interest over time. The highest savings account rates will not earn you enough money unless there is money to earn interest.
