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Best High-Yield Savings Accounts Rates for the 3rd Quarter of 2023

Our Comprehensive Guide to Top High-Interest Savings Account Rates

When it comes to high-yield savings account rates, BluPeak Credit Union leads the way with an impressive 5.33% APY. This nationally available institution offers a rate that’s over 12 times higher than the FDIC’s national savings account average of 0.43% APY. And the good news doesn’t stop there – our comprehensive rankings showcase 15 or more top rates that you can explore below.

Our data is derived from extensive daily rate research conducted on approximately 100 banks and credit unions offering high-yield savings accounts nationwide. Even the 10th-best rate on our list boasts an attractive 5.20% APY.

Scroll down to discover featured savings accounts from our trusted partners, followed by a detailed ranking of the nation’s best savings account rates.”

Best High-Yield Savings Account Rates Top Rates for High-Yield Savings Accounts

BluPeak Credit Union, Preferred Savings Account* – 5.33% APY

  • Minimum deposit requirement: $25
  • Minimum ongoing balance: None
  • Monthly fee: None with $200 ongoing balance; otherwise, $5
  • ATM card: Yes
  • Mobile check deposit: Yes
  • Checking accounts available: Yes
  • CDs available: Yes
  • Membership: Based out of San Diego, anyone nationwide can join BluPeak by making a $25 donation to KPBS.

 

TotalDirectBank, Money Market Account – 5.26% APY

  • Minimum opening deposit: $25,000
  • Minimum balance requirement: $2,500 to earn stated APY
  • Monthly fee: None
  • ATM card: No
  • Mobile check deposit: Yes
  • Checking accounts available: No
  • CDs available: Yes

Note: Total Direct Bank extends its services to customers across the United States, with the exception of residents in Florida.

Note: While this account bears the label ‘money market,’ it does not provide check-writing privileges and functions more akin to a savings account.

Milli* – 5.25% APY

  • Minimum opening deposit: Any amount
  • Minimum balance requirement: Any amount
  • Monthly fee: None
  • ATM card: Yes
  • Mobile check deposit: No
  • Checking accounts available: No
  • CDs available: No

*This savings account is accessible only via a mobile app.

Newtek Bank, Personal High Yield Savings – 5.25% APY

  • Minimum opening deposit: $0
  • Minimum balance requirement: Any amount
  • Monthly fee: None
  • ATM card: No
  • Mobile check deposit: No
  • Checking accounts available: No
  • CDs available: Yes

UFB Direct, Priority Savings Account – 5.25% APY

  • Minimum opening deposit: None
  • Minimum balance requirement: None
  • Monthly fee: None
  • ATM card: Yes
  • Mobile check deposit: Yes
  • Checking accounts available: No
  • CDs available: No

Valley Direct, High-Yield Savings Account – 5.25% APY

  • Minimum opening deposit: $1
  • Minimum balance requirement: Any amount
  • Monthly fee: None
  • ATM card: No
  • Mobile check deposit: Yes
  • Checking accounts available: No
  • CDs available: Yes

Evergreen Bank Group, High-Yield Online Savings – 5.25% APY

  • Minimum opening deposit: $100
  • Minimum balance requirement: Any amount
  • Monthly fee: None
  • ATM card: Yes
  • Mobile check deposit: Yes
  • Checking accounts available: Yes
  • CDs available: Yes

Vio Bank, Cornerstone Money Market Savings Account – 5.25% APY

  • Minimum opening deposit: $100
  • Minimum balance requirement: None
  • Monthly fee: None
  • ATM card: No
  • Mobile check deposit: Yes
  • Checking accounts available: No
  • CDs available: Yes

Note: While this account bears the label ‘money market,’ it does not provide check-writing privileges and functions more akin to a savings account.

Popular Direct, Select Savings – 5.20% APY

  • Minimum opening deposit: $100
  • Minimum balance requirement: None
  • Monthly fee: None
  • ATM card: No
  • Mobile check deposit: Yes
  • Checking accounts available: No
  • CDs available: Yes

CFG Bank, High Yield Money Market Account – 5.20% APY

  • Minimum opening deposit: $1,000
  • Minimum balance requirement: $1,000 to earn stated APY
  • Monthly fee: None with $1,000 ongoing balance; otherwise, $10/month
  • ATM card: No
  • Mobile check deposit: Yes
  • Checking accounts available: Yes
  • CDs available: Yes

Note:  While this account bears the label ‘money market,’ it does not provide check-writing privileges and functions more akin to a savings account.

FNBO Direct, Online Savings Account – 5.15% APY

  • Minimum opening deposit: $1
  • Minimum balance requirement: Any amount
  • Monthly fee: None
  • ATM card: Yes
  • Mobile check deposit: Yes
  • Checking accounts available: Yes
  • CDs available: No

Western State Bank, Online Money Market Account – 5.15% APY

  • Minimum opening deposit: $5,000
  • Minimum balance requirement: None
  • Monthly fee: None
  • ATM card: No
  • Mobile check deposit: No
  • Checking accounts available: Yes
  • CDs available: No

Note:  While this account bears the label ‘money market,’ it does not provide check-writing privileges and functions more akin to a savings account.

Bank5 Connect, Jumbo Savings – 5.10% APY

  • Minimum deposit requirement: $25,000
  • Minimum ongoing balance: $25,000 to earn interest
  • Monthly fee: None
  • ATM card: No
  • Mobile check deposit: Yes
  • Checking accounts available: Yes
  • CDs available: Yes

Primis Bank, Savings Account – 5.07% APY

  • Minimum deposit requirement: $1
  • Minimum ongoing balance: None
  • Monthly fee: None
  • ATM card: Yes
  • Mobile check deposit: Yes
  • Checking accounts available: Yes
  • CDs available: Yes

Upgrade, Premier Savings – 5.07% APY

  • Minimum deposit requirement: Any amount
  • Minimum ongoing balance: $1,000 to earn the stated APY
  • Monthly fee: None
  • ATM card: No
  • Mobile check deposit: No
  • Checking accounts available: Yes
  • CDs available: No

Pros and Cons of High-Yield Savings Accounts

  • Offers a superior APY compared to conventional savings accounts
  • Allows you to withdraw or deposit funds at your convenience
  • Provides exceptional safety with minimal risk
  • Ideal for building an emergency fund or saving for significant goals
  • In times of increasing rates, your APY has the potential to increase as well
  • Securing a high yield might entail establishing an account with a new financial institution
  • Certain accounts may impose a monthly limit of six withdrawals
  • Convenient accessibility may encourage occasional withdrawals, impacting your savings
  • Accounts may come with potential fees or minimum balance prerequisites
  • During periods of declining rates, your APY has the potential to decrease

Is an Online High-Yield Savings Account Right for You?

Unlock the Benefits of High-Yield Savings Accounts for Your Surplus Savings

If you find yourself with surplus savings in your bank account, a high-yield savings account is an excellent option to maximize your earnings. By stashing away the extra funds from your checking account into an online high-yield savings account, you can capitalize on higher interest rates.

These accounts are particularly suitable for individuals who are at ease with online banking. Transferring funds to and from a high-yield savings account is typically a seamless online or mobile app process, making it convenient for those who prefer digital banking solutions.

Options Beyond High-Yield Savings Accounts

While high-yield savings accounts are a popular choice for storing your money, there are several other account types to consider when it comes to managing your funds until you require them.

High-Yield Savings Account vs. Checking Account

While it’s undeniably convenient to store surplus funds in your checking account, this choice comes with two significant drawbacks. Firstly, funds within your everyday checking account are incredibly accessible, making it challenging to designate them as savings and resist spending them. Secondly, checking accounts typically yield little to no interest, and even when they do, the rates are minimal. In contrast, a high-yield savings account not only allows you to earn interest on your funds but provides the potential for significantly higher earnings.

High-Yield Savings Account vs. Traditional Savings Account

While it’s certainly convenient to keep extra funds in your checking account, there are two notable downsides to this approach. Firstly, funds in your everyday checking account are highly accessible, making it difficult to categorize them as savings and resist spending. Secondly, checking accounts usually offer minimal to no interest, and even when they do, the rates are typically very low. In contrast, a high-yield savings account not only enables you to earn interest on your funds but also offers the potential for substantially higher returns.

Conventional banks and credit unions usually provide standard savings accounts, while high-yield accounts are frequently available through online banks. However, it’s essential to note that these distinctions are general guidelines and not rigid rules.

High-Yield Savings Account vs. Money Market Account
A money market account functions similarly to a savings account but with the added benefit of check-writing capabilities. Historically, money market accounts demanded substantial balances in exchange for higher interest rates compared to savings accounts. However, the landscape has evolved in recent years, with both savings and money market accounts now offering a range of minimum balance requirements, including options with no minimums. Furthermore, high-yield savings accounts often deliver more competitive interest rates compared to money market accounts.

High-Yield Savings Account vs. Certificate of Deposit (CD)
If you have savings that you can set aside for a specified duration without needing immediate access, you might consider a certificate of deposit (CD) to potentially earn a higher interest rate. CDs involve committing your funds to remain deposited for a predetermined period, with penalties for early withdrawals before the CD’s maturity date. However, in return, your interest rate remains fixed and guaranteed, regardless of any rate reductions by the Federal Reserve.

High-Yield Savings Account vs. I Bonds
I Series savings bonds, commonly referred to as I bonds, are offered by the U.S. Treasury, and their interest rate is tied to current inflation rates. While I bonds can potentially provide appealing rates, their returns can be unpredictable due to semi-annual interest rate adjustments every May and November. I bonds offer various advantages, including tax flexibility. However, they come with a requirement of locking your funds entirely for the initial 12 months without exceptions. Similar to savings, money market, or CD accounts, I bonds also feature the benefit of compound interest.

High-Yield Savings Account vs. Treasuries

A smart way to grow your cash reserves is by lending your funds to the U.S. government. You can achieve this by acquiring T-bills, Treasury notes with a maturity of one year or less. Treasuries are renowned for being among the safest investment options globally, although their interest rates may not consistently outperform the top high-yield bank accounts.

High-Yield Savings Account vs. Bond Funds

While conducting in-depth research on individual corporate or municipal bond offerings can be challenging, an alternative approach is to invest in a bond exchange-traded fund (ETF) that comprises a diversified portfolio of bonds. Bond ETFs offer the advantage of liquidity, allowing you to buy and sell them readily. However, it’s crucial to note that bond returns within ETFs are not guaranteed, and potential losses in value may impact your initial investment.

High-Yield Savings Account vs. Money Market Fund or Cash Reserve Account
If you hold a brokerage account, you have the option to allocate a portion of your cash into a money market fund or a cash reserve account. However, it’s essential to conduct thorough research on the yields offered by these options, as many may provide significantly lower returns compared to high-yield savings accounts. Additionally, it’s convenient to establish a link between your brokerage account and a high-yield savings account for seamless fund transfers.

Selecting the Right High-Yield Savings Account

Comparing High-Yield Savings Accounts to Money Market Funds and Cash Reserve Accounts

If you have a brokerage account, consider allocating some of your cash to a money market fund or a cash reserve account. However, it’s essential to conduct thorough research on their yields, as many of these options may offer significantly lower returns compared to a high-yield savings account. Additionally, you can easily establish a link between a high-yield savings account and your brokerage account to facilitate seamless fund transfers.

Selecting the Right High-Yield Savings Account

When you’ve made the decision to open a new high-yield savings account, it’s essential to conduct thorough research to ensure it aligns with your financial goals. Starting your search with a focus on finding a competitive Annual Percentage Yield (APY) is a smart move, as it can significantly impact your earnings.

However, beyond the interest rate, consider whether the account imposes a minimum balance requirement, and if so, ensure it’s a balance you can comfortably maintain. Additionally, check if there’s a minimum balance needed to qualify for the top APY.

Review the account’s terms and conditions, including any restrictions on monthly withdrawals and the possibility of monthly maintenance fees. Lastly, confirm that the bank is FDIC-insured (or an NCUA member if it’s a credit union) to guarantee federal protection for your funds in case of a bank or credit union failure.

Steps to Establishing a High-Yield Savings Account

Once you’ve compared high-yield savings account options and made your selection, the next step is to initiate the account opening process online. During this process, the bank or credit union will request various personal details, including your social security number, as your interest earnings are subject to IRS reporting. The account opening procedure will also incorporate security protocols to verify your identity.

You’ll also be presented with several choices for funding your account. The most common method is through an ACH transfer from another bank, with detailed instructions provided for setup. Alternatively, certain institutions offer options like making your initial deposit with a debit or credit card or sending in a paper check.

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