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A savings account is a good place to keep money safe and liquid, but it’s not a great place to earn money, right? Not necessarily. Some banks and credit unions offer savings accounts with respectable interest rates that rival the rates earned with CDs—but without the restrictions.
We review more than 150 banks and credit unions every weekday to find the best savings rates and deals. These high-interest savings accounts are available to customers nationwide, and your funds are federally insured up to $250,000 per depositor per institution. We start by finding the highest rates, and we favor accounts with low minimum deposit requirements and friendly fee structures.
We also include money market accounts if they function like savings accounts. That means if an account pays a high yield and doesn’t allow you to write checks, it’s in the mix.
We evaluate savings accounts that are widely available throughout the U.S. to identify the best high-interest savings accounts. For this round-up, we primarily look at the annual percentage yield (APY) offered, but to help you compare options, we also consider factors like how quickly interest compounds, how easily you can make deposits, and customer service availability.
Best High-Yield Savings Accounts
| Bank or Credit Union | APY | Requirements |
|---|---|---|
| UFB Direct | 4.55% | $0 to open and earn stated APY |
| CFG Bank | 4.45% | $1,000 to open and earn stated APY |
| BankPurely | 4.45% | $25,000 to open and $0 to earn stated APY |
| iGObanking | 4.45% | $25,000 to open and earn stated APY |
| TotalDirectBank | 4.44% | $2,500 to open and earn stated APY |
| Popular Direct | 4.40% | $5,000 to open and $0 to earn stated APY |
| My Banking Direct | 4.38% | $500 to open and $0 to earn stated APY |
| MySavingsDirect | 4.35% | $0 to open and earn stated APY |
| Primis Bank | 4.35% | $1 to open and $0 to earn stated APY |
| FitnessBank | 4.35% | $100 to open and earn stated APY |
| Vio Bank | 4.30% | $100 to open and $0 to earn stated APY |
We partnered with the following banks to bring you the savings account offers in the table below. Under that, you'll find additional details on our editors' picks for the best high-interest savings accounts and rates as of Mar. 3, 2023. All of the banks and credit unions listed are insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA).
CFG High Yield Money Market Account
CFG Bank, founded in 1927, pays its best APY in the Online CFG High Yield Money Market Account. The website is not as functional or informative as some of the largest online banks, but if you prioritize high rates over the user experience, CFG might deliver what you need. The account requires $1,000 to open and avoid a monthly fee, but you must maintain a minimum daily balance of at least $25,000. Interest compounds daily and is credited monthly.
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Competitive CD rates complement the savings account
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Website has limited information and features
UFB Direct High Yield Savings
UFB Direct is a subsidiary of Axos Bank, itself an online-only institution. UFB Direct offers savings account and money market accounts. If you’re looking to borrow, the bank offers mortgages through its parent. There’s no minimum to open this account. Interest is compounded daily and credited monthly.
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Mobile account tools including check deposit
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Money market account for payments
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Limited banking services
BankPurely
BankPurely is an online division of Flushing Bank, headquartered in Uniondale, New York. The bank offers all standard banking products, including CDs and checking, savings, and money market accounts through its online and mobile banking portals.
The bank promises to plant a tree for every account that is opened.
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Plants a tree for every account opened
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No minimum to open
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High balance required to earn interest
iGObanking
iGObanking is the online wing of Flushing Bank, an FDIC-insured commercial bank with branches throughout New York. It offers checking, savings, and money markets, as well as CDs in terms of six months, or longer term lengths that require a higher minimum balance but reward customers with both interest and a free gift from a catalog.
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Online and mobile banking
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Mobile check deposits
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High opening deposit
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High minimum balance required to earn interest
TotalDirectBank
TotalDirectBank is a division of City National Bank of Florida, which was founded more than 70 years ago. TotalDirectBank keeps the product lineup simple, with money market accounts and CDs with terms of up to five years. Anyone in the U.S. (except those in Florida, Puerto Rico, American Samoa, Guam, Northern Mariana Islands, and U.S. Virgin Islands) can open a money market or CD account.
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Good interest rates
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No maintenance fees
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No physical locations
Popular Direct Ultimate Savings
Popular Direct is a subsidiary of Popular, Inc., a full-service U.S. bank also located in Puerto Rico and the Caribbean. It’s backed by 122 years of history. Popular Direct is primarily an online institution focused on savings and CD accounts only. You’ll need to deposit a minimum of $5,000 to open the savings account. Interest compounds daily and is credited to your account monthly.
My Banking Direct High Yield Savings Account
My Banking Direct is an online product offering from New York Community Bank, an institution founded in 1859. The bank holds $59.5 billion in assets, offers a considerable slate of banking products, and often wins awards for its customer service. To open an account, simply fill out an online application and deposit $500.
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No monthly fees
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Mobile account tools, including check deposit
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Wide range of products offered
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No in-person branches.
MySavingsDirect
MySavingsDirect is an online banking division of Emigrant Bank, which was founded in 1850 and grew to become the largest savings bank in the nation by the 1920s. Today, the bank offers CDs alongside a savings account with no minimum deposit, minimum ongoing balance, or monthly fees. Interest is compounded daily and credited monthly.
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No minimums or fees
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Ability to automatically link the savings account with a designated checking account
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Limited banking services—CDs are the only other offering
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Ability to earn more interest at other banks
Primis Bank
Primis Bank is a digital financial services company available to the general public. It seeks to streamline banking in order to offer its customers competitive rates. Panacea Financial offers all standard banking products, including checking and savings accounts and personal loans.
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Customer service available 24/7
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Online and mobile banking options
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Its bare-bones banking experience may be less attractive to some customers.
FitnessBank Fitness Savings
FitnessBank is an online division of Newton Federal Bank that rewards you based on your fitness activity. You’ll earn the max APY if you log an average of at least 12,500 steps daily with your Fitbit, Apple Health, Garmin, or Google Fit fitness tracker. Lower rates are available with lower activity levels, and you must open the FitnessBank app at least monthly to log your steps. The account requires a minimum of $100 to open, and you must maintain at least that much as an average daily balance to avoid a $10 monthly maintenance charge. Interest compounds daily and is credited monthly.
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Decent interest even if you don't hit 12,500 steps daily
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Seniors can earn the top APY with fewer steps
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Mobile app doesn’t include deposit feature
Vio Bank Cornerstone Money Market Savings
Vio Bank is yet another online-only division that offers a small menu of CDs and high-yield savings and money market accounts, and is a part of a larger firm. In this case its parent is MidFirst Bank, based out of Oklahoma City, Oklahoma, and it’s nothing to sneeze at. MidFirst Bank has almost $23 billion in assets, which lends a note of credibility and sustainability to this bank over smaller institutions. But remember, your money is insured by the FDIC (or NCUA, for credit unions) up to $250,000 whether you bank here or with the small credit union down the street.
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Customer service by phone seven days per week
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No monthly fees, regardless of balance
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No checking accounts available
Frequently Asked Questions
What Is a High-Interest Savings Account?
A high-interest savings account, also known as a high-yield savings account, helps you grow your money while keeping it accessible. Savings accounts often pay interest on your deposits, but interest rates vary from bank to bank. What makes high-interest accounts unique is a relatively high rate on your balance: Top rates on these accounts are often 20 or more times the national average savings rate, multiplying your earnings.
As you earn interest on your savings, you can leave the money in your account and allow the funds to compound . Put another way, you earn interest on the interest payments you received in previous months. The higher your rate, the faster your money grows.
What Should You Look for in a High-Yield Savings Account?
The interest rate is the feature that most people pay attention to when shopping for a high-yield savings account. Compare banks and pick a competitive rate, but don’t ignore other critical features.
- Low fees are crucial : If you’re paying monthly maintenance fees, you might wipe out any earnings in your account (or even see your account balance fall each month).
- Verify that your money will be safe : Banks should be FDIC-insured, and the safest credit unions provide NCUSIF coverage.
- Select a bank that will be convenient to work with . Evaluate how you’ll use the account, and find a bank that fits your needs. For example, if you want to deposit checks frequently, make sure the bank offers mobile deposit . If you withdraw cash regularly, choose a bank with a convenient ATM network or ATM rebates.
Why Do Savings Account Rates Change?
The interest rate on your savings account changes over time. In some cases, the rate remains the same over extended periods. But when rates in the broad economy change, banks typically move in sync with those changes. If the Fed cuts rates, there’s a good chance that your savings account rates will remain stagnant or fall. When rates rise, banks tend to increase rates, but not necessarily as quickly as you’d like.
Why Are Some Bank Interest Rates Higher Than Others?
How much interest you earn can vary quite a bit, but interest rates tend to be lower at big brick-and-mortar banks and higher at online banks.
Banks raise rates when they want to gather money. If they need to get deposits in the door, a high rate on savings accounts attracts customers. If, on the other hand, they don’t need cash, they can keep rates lower.
Banks have different approaches to earning money. Some take deposits and lend them out, while others take a more varied approach (earning revenue and fees from other services like credit cards and ancillary business).
Organizational structure is also important. Some banks have shareholders demanding that the bank grow (and/or share income with the shareholders), and those demands may make it harder to pay high rates to depositors. However, some banks are able to keep only what they need to pay the bills and share the rest of the revenue (from loans, ATM fees, etc.) with account holders. Small banks and credit unions are most likely to fit the latter model.
Is Savings Account Interest Taxable?
Interest you earn in your savings account is generally taxable as income. Your bank typically reports your earnings on Form 1099-INT, and you should provide that information to your tax preparer or include it with your tax filings.
With individual accounts, joint accounts, and other taxable accounts, you’ll pay tax on the interest you receive as income for the year. But if your account is part of a retirement account like an IRA, you may be able to postpone or avoid taxation on that interest.
CDs enable you to lock in a rate that doesn’t change, but there are pros and cons of using CDs.
Keep an eye out for a 1099-INT in the mail during tax season. You may also be able to download the form through your online banking portal. Banks are not required to provide a 1099-INT unless you earn at least $10 during the year. However, interest income below $10 is still taxable and you must report all interest income to the IRS even if you didn't receive a 1099-INT.
