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Best High Yield Savings Accounts of February 2023

Refreshed Review Updated Jan. 27, 2023
Kailey Hagen
By: Kailey Hagen

Our Banking Expert

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page.

A savings account helps you grow your wealth safely while keeping your money close at hand. You can open one with most banks and credit unions, but the best online savings accounts are available through online banks. Here's a look at our picks for the top savings accounts, as well as some guidance on what to look for when choosing a savings account. These banks have some great APYs (Annual Percentage Yield) and are good options to explore.

Rates as of Jan. 24, 2023
Award Icon 2023 Award Winner
Member FDIC.
Rating image, 4.75 out of 5 stars.
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
4.75/5
APY
4.21%
Min. To Earn APY
$0
  • FDIC insured
  • Potentially high APY
  • ATM card included
  • No monthly maintenance fee
  • No debit card functionality

An overall great online savings account with a high APY, no monthly maintenance fees, and a solid mobile banking app.

Member FDIC.
Rating image, 5.00 out of 5 stars.
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
5.00/5
APY
4.00%
Min. To Earn APY
$0
  • No monthly fees
  • Strong APY
  • ATM card available
  • Unlimited external transfers (up to a daily limit of $5,000-$250,000, depending on deposit size and account duration)
  • Minimum deposit required

A standout online savings account that features a very competitive APY and no monthly fees, though a $100 opening deposit is required.

Marcus by Goldman Sachs Online Savings Account

Goldman Sachs Bank USA. Member FDIC. Sponsored Listing
Rating image, 5.00 out of 5 stars.
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
5.00/5
APY
3.30%
Min. To Earn APY
$0
  • Competitive APY
  • No maintenance fees
  • No minimum balance requirements
  • No ATM card access

The Marcus by Goldman Sachs Online Savings Account has proven that it's a competitive online savings account with a competitive annual percentage yield (APY), low fees, and no minimum balance requirements.

Member FDIC.
Rating image, 5.00 out of 5 stars.
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
5.00/5
APY
3.30%
Min. To Earn APY
$1
  • Competitive APY
  • No maintenance fees
  • FDIC-insured
  • No branch access, online only

The American Express Personal Savings account is garnering a lot of positive attention because of its low fees and high APY. It also allows customers to make up to nine withdrawals or transfers from their savings account every month without paying a fee, which is more than what most of its competitors offer.

Member FDIC.
Rating image, 4.50 out of 5 stars.
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
4.50/5
APY
3.40%
Min. To Earn APY
$0
  • Competitive APY
  • No maintenance fees
  • No minimum deposit or balance requirements
  • No ATM access

The Barclays Online Savings account packs in the essentials we covet, including a high APY, no monthly maintenance fees, and no minimum balance to open an account.

Member FDIC.
Rating image, 5.00 out of 5 stars.
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
5.00/5
APY
3.30%
Min. To Earn APY
$0
  • Competitive APY
  • No fees
  • Great customer service
  • No branch access

The Discover Online Savings account is a top choice for customers looking for a quality online savings account with a high APY. Discover takes the no-fee approach to the next level with none of the monthly fees or hidden fees that you might see with other banks. Discover offers a top-rated mobile app that lets customers stay connected to their savings from almost anywhere.

CIT Savings Connect

Member FDIC.
Rating image, 4.00 out of 5 stars.
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
4.00/5
APY
4.05%
Min. To Earn APY
$100
  • Easy online banking
  • Debit card access
  • No fees
  • FDIC insured for at least $250K
  • No branch access
  • Requires $100 minimum to open

A strong APY and no fees make this account stand out. The inclusion of no ATM fees and a great digital experience are the cherries on top that simplify saving and earning.

First Foundation Bank Online Savings

Member FDIC.
Rating image, 4.50 out of 5 stars.
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
4.50/5
APY
4.00%
Min. To Earn APY
$1,000
  • No monthly fees on online savings or personal checking accounts
  • Competitive APY on online savings account
  • ATM fee reimbursements
  • Only one online account option
  • Online savings requires a $1,000 initial deposit
  • CDs require a $2,500 minimum deposit
  • Branches in only three states

This account offers a competitive APY and surprisingly easy access to your funds, making it a top choice for anyone who can afford the $1,000 minimum deposit.

Member FDIC.
Rating image, 4.25 out of 5 stars.
Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
4.25/5
APY
3.50%
Min. To Earn APY
$100
  • High APY
  • No maintenance fees
  • Includes a debit card
  • Minimum balance requirement
  • No local branches, online only

A standout online savings account with one of the best APY's we've seen. The savings account also includes a debit card, which is a nice add-on for an account that already outshines many.

What is a savings account?

A savings account is a type of bank account for money you don’t plan to spend immediately. You can open one of these with any bank or credit union, and you can usually deposit as much as you’d like to the account. You deposit money in-person, or through direct deposit, electronic transfer, check, or some other method.

With a savings account, your bank pays you interest on your money -- usually every month. How much interest you earn is determined by the account's annual percentage yield (APY). You'll earn more interest with an account that has a high APY.

Most savings accounts don't offer check-writing capabilities or a debit card -- so you have to transfer the funds to a checking account or withdraw cash in order to spend money. Often, banks limit the number of free withdrawals you can make in a month.

What does the bank do with my money?

Banks use your savings to fund loans for their customers. Borrowers then pay interest on the loan, and your bank sends some of that interest to your savings account.

A larger balance or a higher savings account interest rate results in more interest. It's always good to compare savings account interest rates before opening an account. The best savings account interest rates can add a nice bump in your funds without much effort on your part.

Pros and cons of savings accounts

There are advantages and disadvantages that come along with savings accounts. Before deciding if a savings account suits your needs, it's important to consider both.

Pros of savings accounts

  • Earning interest
  • Saving as much as you like
  • Paying bills with automatic bill pay
  • Knowing your money is insured with the FDIC

Cons of savings accounts

  • Monthly maintenance fees (sometimes)
  • No ATM card or checks (usually)
  • Only six free withdrawals per month
  • Fees for extra withdrawals after your first six withdrawals at some banks

Types of savings accounts

Here’s a look at the common types of savings accounts you’ll run into.

  • Traditional savings account: These accounts are usually easy to open and easy to access. But APYs tend to be pretty low, and most of these accounts carry maintenance fees if your balance falls below a certain amount.
  • High-yield savings account: These are similar to traditional savings accounts, but they offer much higher APYs and most don’t have monthly maintenance fees.
  • Money market account:Money market accounts offer the APYs of a savings account with the easier access of a checking account. However, these accounts usually have higher minimum balance requirements than typical savings accounts.
  • Certificate of deposit (CD) account: Certificates of deposit (CDs) usually offer some higher APYs than any of the savings accounts discussed above. If you're looking for the best APY on a savings account, CDs are definitely worth considering. But you have to agree not to withdraw your funds for the full CD term (which could be months or years).
  • Specialty savings account:A specialty savings account is a savings account that's geared at a certain group of people or goals. Examples include kids' savings accounts, health saving accounts, and education savings accounts.

As you compare savings accounts, think about what you'll use the account for. Do you want to be able to withdraw your money at any time to cover unexpected expenses? Are you saving up for a major goal over several years, and could use every dollar of interest you can earn? Answering these questions will help you compare savings accounts and decide which is best for your needs.

Online vs. traditional banks

Savings accounts at online banks are slightly different from savings accounts at traditional banks. Here are some of the key differences between savings accounts at online and brick-and-mortar banks:

Service Brick-and-mortar banks Online banks
Interest rates Generally low Generally high
Hours of operation Fixed to the bank's schedule Flexible to your schedule
ATM networks Extensive ATM networks Coverage varies
Customer service In-person service in addition to call centers Call centers often extended or 24/7 hours
Account access Branch withdrawals, transfers, and ATMs Transfers and ATMs
FDIC insured Yes Usually

The best online savings accounts offer both convenience and high interest rates. If you don't want to open a savings account online, don't worry -- you can get a high interest savings account at a brick-and-mortar bank too. You might just need to look around a little more, since high interest savings accounts are more rare at brick-and-mortar institutions.

If you're not sure where to start looking for an online savings account, check our list above to find out which banks we believe offer the best online savings accounts.

What should I look for in a savings account?

The best high-yield savings accounts, both online and traditional, will meet the following criteria:

  • FDIC insurance: Most banks offer FDIC insurance. It's unlikely you'll ever use it, but it's risky not to have it. If your bank fails and your funds aren't insured, you lose your money.
  • High APY: APYs fluctuate from bank to bank and over time, so there's no solid definition of a high APY. You don't need the highest rate on the market, but you should choose one that's close to the highest around. This will earn you more interest.
  • Low fees: Fees can eat into your profits and possibly cost you more than you're earning in interest. Check your bank's fee schedule to learn about any costs associated with the account, and avoid a monthly maintenance fee if you can. Also, check to see if there's a minimum balance requirement on the account.
  • Accessibility: Make sure you're comfortable with the ways you can deposit money into your savings account and withdraw it when necessary. You likely also want a bank with an online portal and mobile banking so you can manage your funds remotely. The best bank to open a savings account at is one you're comfortable interacting with on a regular basis, whether that's online, in-person, over the phone, or at an ATM.

When you're looking for a high-interest savings account, the account's APY isn't the only factor to consider. Keep the items listed above in mind when you compare savings accounts to avoid any unpleasant surprises.

Some bank accounts also offer bonuses. If you're looking for a high-yield savings account with a bonus, check out our list of Best Bank Bonuses to see our top picks.

TIP

Learn more about savings account interest rates

Is a high-yield savings account worth it? What is a good interest rate, anyway? And how do you compare savings account rates?

If you're asking these questions, you're not alone. Here are some FAQs we've answered about savings account interest rates:

How to open a savings account online or in person

To open a savings account, visit a branch (if your chosen bank has them), or fill out an online application form. You will need to provide some personal information, including:

  • Your address
  • Your Social Security number
  • A government-issued ID, like a driver's license or a passport

If you are opening a joint savings account, both parties will need to provide this information.

Your bank may also require a minimum deposit to open the account. This may be different from the ongoing minimum balance required to avoid monthly maintenance fees. If you're transferring the funds from another bank account, you'll need to know its routing and account number.

This process should be similar whether you open a savings account online or at a brick-and-mortar bank.

Savings account terminology

Here are a few key terms to know before you open a savings account. These are important terms for online savings accounts, traditional savings accounts, and high-yield savings accounts.

APY: This stands for "annual percentage yield." People often use this term interchangeably with interest rate, but the two aren't the same. APY takes into account the actual interest rate as well as how often that interest compounds. A higher APY means more interest for you.

When we say "compare savings account rates," we mean "compare APYs."

Monthly maintenance fee: This is a fee your bank charges to maintain your savings account. Some banks, especially online banks, don't charge this fee, and others will waive it if you meet certain requirements.

Liquidity: Liquidity refers to how easy it is to turn your money into cash. Highly liquid accounts make this simple, while low-liquidity accounts make it a lot more challenging to get cash when you need it.

FAQs

  • Savings accounts earn interest over time on money you don't plan to spend immediately. How much interest you earn depends on the balance in your savings account and the interest rate. In exchange for this interest, you agree to limit your monthly withdrawals from your savings account.

  • Yes. Savings account funds are FDIC insured up to $250,000 per person per bank, so there's no risk of losing money if your bank goes under. The risk of losing money with a savings account is pretty slim. It could be possible if you incur a lot of fees, your identity is stolen, or a hacker gains access to your bank account.

    As long as you are aware of the fees your bank charges (and ways to avoid them) and you protect your personal and account information, your savings account should only make you money.

  • The best savings accounts have:

    • High APY: The top savings accounts should include a high APY in range with our picks.
    • No monthly maintenance fee: Most of the best savings accounts won't charge a monthly maintenance fee.
    • FDIC insurance: Whether you're putting money aside to build an emergency fund or wanting to earn more interest, security is important.
  • A high-yield savings account is a savings account that offers a much higher APY than average. The national average savings account APY is currently 0.06%, but some high-yield savings accounts offer APYs that are eight times that rate (sometimes even more). This means your savings can grow more quickly.

  • In most banks, $1,000 won't earn much interest, even if you leave it alone for a whole year. For example:

    • If the interest rate is 0.01%, you'll earn about $0.10
    • If the interest rate is 0.05%, you'll earn about $0.50

    Now compare those numbers with a high-yield savings account:

    • If the interest rate is 0.60%, you'll earn about $6.02

    That $6 may not seem like a lot of money, but when it comes to savings, it's a huge difference compared with $0.10. That's because of the magic of compound interest. If you leave your $1,000 in the bank for 30 years at 0.60%, you'll earn $197.16. But if you're only getting 0.01%, your earnings drop to $3. Yes, $3 after 30 years! It's not nothing, but it's awfully close.

    Now imagine how these numbers will compare if you add a few hundred dollars to your balance each year.

    Savings rates can -- and do -- go up and down. Rates are always up to the bank's discretion, and there's no guarantee your bank will raise rates when others do. Changing banks is easy, though, so keep your eye on top savings accounts and consider moving your money if your bank isn't keeping up.

  • These types of accounts often earn more than traditional savings accounts:

    • High-yield savings account
    • Certificate of deposit account
    • Money market account

    Even among these types of accounts, you will find a wide range of interest rates offered. Generally, the highest interest rates are found at credit unions and online-only banks.

    Some banks and credit unions offer tiered interest rates. For example, you might earn a relatively high rate on your first $1,000, and then a smaller rate on the amount above that. Or your bank might pay a modest rate on the first $25,000 and a higher rate on the amount above that. Beginner savers will definitely do better with the first type of account. Once you start building your savings, you can use an online savings calculator to figure out where you'll earn more.

  • Yes, a savings account (especially a high-yield savings account) is a great place for your emergency savings. Here's why:

    Your emergency fund should be easily accessible to you. Keep your emergency savings in an account that allows you to transfer or withdraw money quickly. A certificate of deposit account is not recommended because no one can predict when financial emergencies are going to happen, and you might have to pay a penalty if you withdraw money from a CD before the maturity date.

    Your emergency fund should be protected from losses. It's generally not advisable to put your emergency fund in the stock market or other account that could experience fluctuations, because you wouldn't want the value to be in a dip when you have a financial emergency.

    Your emergency fund should grow. This is why you shouldn't keep your money under the mattress, even if you feel that it would be safe from theft. A high-yield savings account allows you to maximize your earnings. Stashing cash -- or leaving your money in a traditional savings account -- means you forego the opportunity to earn as much as possible in interest.

Our Banking Expert