Best High-Yield Savings Accounts of 2023

Best High-Yield Savings Accounts of 2023

If growing your savings is your key motive for opening an account, then a high-interest savings account is what you’re looking for.

We analyzed savings accounts from the top traditional banks, online banks, and credit unions to identify the ones that offer the highest and most consistent rates and low-fee savings accounts helping you grow your savings faster.

Best Savings Accounts for 2023

Savings Accounts Reviews & Details

The reality is:

The savings accounts in the highest tier are quite similar in that they provide market-leading savings rates. However, the slight differences may matter to you depending on your savings habits and preferences.

Read our editor's savings accounts reviews from the top financial institutions:

The Marcus by Goldman Sachs Online Savings account keeps it simple when it comes to saving.

Marcus by Goldman Sachs Online Savings

In addition to one of the top interest rates, the account comes with no monthly or transaction fees. So, you can just focus on growing your savings. The Marcus mobile banking app lets you keep tabs on your account from your smartphone.

Read the full editor's Marcus Online Savings account review.

American Express^® High Yield Savings Account

The American Express^® High Yield Savings Account is another popular option for a reliably competitive savings rate and the brand is noted for top-notch customer service.

The account has no monthly fees or minimum balance requirement.

The biggest downside may be the lack of mobile-app access, but that may be a good thing if you want to avoid the temptation to move or spend the money too easily.

Read the American Express^® High Yield Savings Account editor’s review.

CIT Bank Savings Connect

The CIT Bank Savings Connect account is a great savings option alone, but it’s even better paired with the CIT Bank eChecking account. 

The benefits of this combo include extremely convenient ATM access.

Both accounts do not have monthly maintenance fees.

Read the full editor's review on CIT Bank Savings Connect.

Ally Bank Savings Account

The Ally Bank Online Account helps savers stay focused on building their deposit balance with some very helpful tools to stay on track.

Notably, customers can create digital buckets within the account -- designated towards specific savings goals. You can also link a checking account and Ally will analyze your cash flow to transfer money to your savings automatically (without interrupting your recent financial patterns). 

Additionally, the account comes with no monthly fees.

Read the full editor's Ally Bank Savings Account review.

Capital One 360 Performance Savings Account

The account has no monthly maintenance fee or any other account service fees. (Transactions that would typically incur a fee -- such as an excess withdrawal -- may simply be simply denied.)

Capital One is a brick-and-mortar bank that also has one of the best mobile banking apps with great design, easy navigation, mobile check deposit, Zelle payments, and more.

Read the Capital One 360 Performance Savings account editor’s review.

Discover Online Savings

A high-interest rate is great, but not if you can’t count on it remaining at that level. That’s why we keep track of banks that offer the most consistent interest rates on savings accounts.

Discover Bank is hyper-focused on helping customers build savings and its savings account is designed for that common financial goal.

As one of the biggest online banks, it has kept savings rates competitive on a consistent basis -- so you don't have to keep switching banks in search of a high APY.

Moreover, the account comes with no monthly fee and the mobile banking apps allow you to access your account at any time from anywhere.

Read a full editor's Discover Bank Online Savings account review.

What to Know About High-Yield Savings Accounts

On the surface, savings accounts seem simple, but there are a number of factors that you need to pay attention to when picking a savings account:

Interest rates

The interest rate is one of the most important aspects of a savings account. It can be the difference between losing to inflation and keeping pace with it. It can also accelerate your progress towards long-term savings goals.

Compounding, or the ability to earn interest on interest, is what makes interest so powerful. Imagine you’re trying to save $15,000 for a down payment on a home.

If you’re earning no interest, it will take you 150 months, or 12.5 years to reach your goal. If you’re earning 5% interest, it will take you less ten years.

You’ll have contributed $12,000 and earned more than $3,000 in interest after 10 years. More than 20% of the money for your down payment will have come from interest.

Why high interest rates are important

Many online banks offer savings interest rates with higher APYs than national banks. Some credit unions may also offer higher rates on limited amounts if you meet balance and transaction requirements.

Savings Account Rates at the Top National Banks

Teaser rates

You might be willing to put up with the occasional fee if you have a big chunk of change in your savings account and that tasty interest rate makes it worth your while.

However, that interest rate you signed up for might not be the one you’re getting a year, six months, or even three months down the road. And then, your account choice might not look like as nearly a good of choice anymore.

This is commonly called a teaser rate or an introductory rate, and the difference between what you get going in and what it changes to can be drastic, with your interest payments at times being cut nearly in half.

To be sure, a lot of banks won’t be completely forthright about how much you’ll be charged for certain services. We read the fine print to ensure you’re getting the best and most consistent rates for your savings account.

Note: Not all banks will use teaser rates.

Fees and minimums

Fees and minimums are the other major aspect of savings accounts that you need to watch out for. The entire idea of a savings account is for it to be a safe place for your money.

You can hardly call a savings account "safe" if your bank will take the money from you with fees.

Maintenance fees

You may think that banks are happy to have your business, but the truth is many banks charge a fee for you to maintain an account with them. 

The fees can range anywhere from $6 to $8, which may not sound all that much per month, but can actually add up to a hefty sum on a yearly basis.

If you're keeping only a few hundred dollars on the account, the sum would definitely be much less than the savings yield you're getting.

Bank of America, for example, has an $8 monthly fee on its basic savings account. Chase has a $5 fee for its Chase Savings account.

Since the interest rate at both banks is so low, those fees can quickly outpace the interest you can earn.

There are usually ways to avoid fees on savings accounts. Bank of America will waive its savings account fee if you maintain a $500 minimum balance.

You can also avoid the fee if you have a checking account with Bank of America. Similarly, Chase will remove the fee with a minimum balance of $300, or a monthly repeating transfer of $25 from a Chase checking account.

Banks use fees to encourage their customers to act in specific ways.

Savings Account Minimum Balances to Avoid Monthly Fees

If you don’t hit the minimum balances, some institutions will charge you if you don’t have another account at the same bank, like a checking account. This can limit your options when it comes to diversifying your banking.

Mathieu Despard

Associate Professor of Social Work, University of North Carolina, Greensboro

Every American deserves an opportunity to build savings.

Banks should offer savings accounts for free -- no maintenance fee and no minimum monthly balances -- as a cost of doing business. These accounts should be linked to checking accounts that meet Bank On National Account Standards.

ATM fees

ATM fees may cost around $3 per withdrawal and they add up in a month if you don't watch your transactions.

If you use an ATM outside your bank's network, you could be slapped with fees both by your bank and the bank to which the ATM belongs.

Paper fees

Going green has perks that go way beyond the environmental benefits. Used or canceled checks are now saved as digital images and for many, this is fine.

However, when the time comes that you may need a copy of your check for tax purposes for instance, you'd have to pay for it.

The same holds true for bank statements and other paper documents.

The good news is, most banks only charge when you request a copy of an old check or statement.

If you request for your checks to be delivered with your paper statement on a monthly basis, you'll get both free of charge.

Closing account fees

If your bank fees get really bad and you want out after only a few months, don't expect them to make it easy for you.

For the brief period they have served you, and for closing an account, whether it's less than 90 or 180 days, you may need to pay a small fee.

Recurring transfers

The ability to set up recurring transfers is a very useful feature for a bank account to have.

Recurring transfers can be used to send money to an investment account, move it to a vacation account, or otherwise automate your financial life.

If you’re saving up for multiple financial goals at once, recurring transfers make it easy to do without having to spend hours entering transfer requests.

Setting up a recurring transfer should be a free feature at banks that offer it. Savings accounts are designed to make your financial life easier, and recurring transfers take that a step further.

Withdrawal limits

You have the best of intentions to build larger savings, but we all know reality creeps in when you’re not expecting it.

There may be times when you'll have to access those funds for urgent matters. It could be once a month or several times a month.

What you might not have read in the fine print is that too many withdrawals in a month can cost you. It is federal law for banks to limit withdrawals to a maximum of six per month for savings accounts.

Banks could charge an excess withdrawal fee for each withdrawal after reaching the limit. Read more about excess withdrawal fees and how does they compare across the top banks.

Some banks will start charging after three or four withdrawals per month. If these excess withdrawals become frequent, the bank could automatically convert your savings account to a checking account or close your account entirely.

Savings Withdrawal Fees at Top U.S. Banks

Overdraft protections

Overdraft fees are big business for banks. The banks, in turn, often offer a way for you to use your savings accounts to "protect" you from these fees. But the reality is they don't completely protect you and only lessen the burn.

The way overdraft protection works is by linking your savings account to your checking account, and will automatically transfer funds to cover should you accidentally overdraft your checking.

Sounds like a nice enough feature, and it makes sense. After all, you had the money -- just not in the right account. Anything to avoid that pricey $38 overdraft fee.

The problem is, this service often isn’t free. You’re being protected from overdraft, to be sure, but you’re still paying something for the service.

Overdraft transfer fees cost about one-third of your typical overdraft fee.

So while you are paying less than normal, you're still being charged -- making this one important feature. This is one feature to inquire about when evaluating your top savings account options.

Other Important Features

There are some other features we look for in savings accounts that can enhance an account:

Sub-accounts

Some banks let you separate your savings account into multiple pools of cash. You can then add a nickname like “vacation fund” or “down payment” to those sub-accounts. That makes it easy to track multiple goals at once.

Debit/ATM card access

Savings accounts might also offer debit cards or ATM cards so that you can withdraw your cash more easily. If yours does, be sure to keep track of what ATM network the bank is part of so that you can avoid fees.

Mobile banking

A high-quality mobile banking app can also make or break the savings account experience. Being able to transfer money or check your balance in a pinch is a useful tool. Once you get used to it, it’s difficult to not have those options.

Automatic savings programs

Other features, like Bank of America’s Keep the Change program, can help you save in other ways. Knowing all of the miscellaneous features a savings account offers can help you decide on the right account for you.

FDIC insurance

The FDIC insures every savings account in the United States for up to $250,000. Even if the bank that your savings account is at closes, you’ll get your money back (up to the covered amount).

The FDIC is backed by the full faith and credit of the U.S. government. That means you can don’t have to worry about the FDIC running out of money. Every dollar you put in a savings account is completely safe.

Why Do Online Savings Accounts Top Our Picks?

Online banks don’t have to charge fees to stay afloat due to their low overhead costs. By avoiding the need to rent buildings and hire tellers for physical locations, online banks can centralize their operations.

This greatly reduces the cost of running the bank. Online banks also understand that it can be difficult not to have a physical location to visit when you need to withdraw or deposit cash.

That’s why most online banks refund ATM fees (limits may apply).

Online banks are also able to offer high-interest rates because of their lower costs. As a bonus, online banks tend to have great mobile and online apps, since they’re the main interface customers will use.

Credit unions can also offer low fees and high-interest rates, but for a different reason than online banks.

Credit unions are, in fact, owned by the people who open accounts with them.

That means that they will always be run to try to maximize the benefit of account holders. However, credit unions have eligibility requirements that must be met before you can become a member.

Higher APYs

An online savings account can be a great way to stash away your cash and earn interest.

It’s certainly a better option than putting your extra money in a buried coffee can in the front yard or its bank equivalent, the interest-free checking account.

Many people do not realize that certain types of savings accounts can end up costing you money while earning a negligible interest rate.

The associated fees could more than cancel out the money that you’re going to earn. So, your balance could actually get smaller with each passing month. A coffee can isn’t looking too bad now.

When opening a savings account, there are several little tricks banks can use to keep you from noticing discrepancies.

This is a type of deposit account can be a virtually risk-free place to sock away cash until you figure out what else to do with it. But, you need to make sure you’re not going to get blindsided by hidden fees or other costs.

The Best Savings Accounts By State

Methodology

We reviewed more than 100 savings accounts from the top U.S. banks, credit unions, and financial services providers for this guide.

The Best Savings Accounts were selected based on the consistency of high-interest rates, fees, minimum balance requirements, account features, banking experience, and more.