We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more. The best high-yield savings account rate from a nationally available institution is 5.50% APY, available from Milli. That's nearly 12 times the FDIC's national average for savings accounts of 0.46% APY and is just one of 15 or more top rates you can find in our rankings. Since 2019, we have been researching rates from over 100 banks and credit unions every weekday and publishing the best APYs for you to compare. Below you'll find featured savings accounts from our partners, followed by our Top 15 ranking of the best savings account rates available nationwide. Savings account rates reached higher in 2023 than we’d seen in more than 20 years, pushed up by the Federal Reserve’s rate-hike campaign that began in March 2022 to tame decades-high inflation. For its last three meetings, however, the Fed has held the federal funds rate steady, and in its Dec. 13 rate announcement, Fed Chair Jerome Powell indicated the committee’s rate-hike cycle ismost likely complete. Further, most Fed members project that two to four rate cuts will occur by the end of 2024. Because savings account yields closely follow the fed funds rate, the Fed’s current holding pattern has caused savings rates to plateau, and declines should be expected once it appears the Fed is ready to make its first cut. The top savings account rates in the country are listed below in order of APY. Where more than one financial institution has the same rate, we've ranked accounts by those requiring the smallest minimum ongoing balance, and if the same there as well, we list the tied institutions alphabetically. Note that some banks call their savings accounts "money market" accounts. Money market accounts traditionally offer the ability to write checks, while savings accounts do not. None of the accounts listed here offer check-writing privileges, even if the name might suggest otherwise. It's smart to also check our ranking of the best money market accounts, some of which pay comparable interest rates. *This savings account is accessible only via a mobile app. *Not available to residents of Kansas and Missouri Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account. Note: TotalDirectBank is available to customers nationwide except for Florida residents. Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account. Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account. Note: Although this account has "money market" in its name, it offers no check-writing privileges and instead operates like a savings account. As the name implies, high-yield savings accounts pay much higher interest rates than traditional ones. Often offered online, whether by an internet-only bank or the online division of a brick-and-mortar bank, they're a type of savings account that's based on the idea of holding your savings wherever it can earn a competitively high yield, even if that's a different bank than where you hold your checking account. The difference in savings account interest rates can be dramatic, with the top accounts in the country typically offering 10 to 12 times the national average rate. And you can still keep your checking account where it is because it's simple to link a high-yield savings account to your primary account for easy transfers. When researching high-yield savings accounts to find the best one for you, be sure you understand what these commonly used terms mean. Pros Higher APY than traditional savings accounts Ability to withdraw or deposit funds at any time Extremely safe, with virtually no risk Excellent vehicle for an emergency fund or saving for a big goal In times of rising rates, your APY may go up Cons Earning a top yield may require opening an account with a new institution Some accounts have withdrawal limits of six per month Easy access can make it tempting to dip into savings Account could have a fee or minimum balance requirement In times of decreasing rates, your APY may go down Anyone with surplus savings in the bank can benefit from a high-yield savings account. If you have more money in the bank than you need to hold in your checking account, high-yield savings accounts offer a way to sock some of those funds away to earn an especially high interest rate. High-yield savings accounts are also well suited to those comfortable with internet or mobile banking, as moving money in and out of an online savings account must generally be done on your computer or via a mobile banking app on your phone. I first opened a high-yield savings account with American Express in 2019. The rate at the time was about half of what it is now, and because I have seen it go higher over the years, I've urged friends and family to open high-yield savings accounts, too. While Amex doesn't offer the top rate nationwide, it has a great mobile app, which is how I do most of my banking. I can see my high-yield savings account right next to my credit cards, and can easily deposit money from my checking to my savings via the app. High-yield savings accounts are just one vehicle for stashing your cash, and they often pay the highest APYs. But there are several alternatives for holding your funds until you need them. The easiest place to keep surplus funds is in your checking account. While it's true this option provides the ultimate in convenience, it has two major downsides. First, money kept in your everyday checking account is very easy to spend, making it difficult to earmark as savings—and leave untouched. Second, checking accounts tend not to pay any interest, or if they do, the rate is a pittance. A high-yield savings account offers an opportunity to not only earn interest on your money, but to earn substantially more. Transfers between different institutions will take one to three days to complete, so be sure to keep enough of a cash cushion either in your checking account or in a linked savings account at that same institution, so that you won’t run into trouble if you can’t get funds from your high-yield account for a couple of days. There are generally two types of savings accounts: standard traditional ones paying a fairly modest interest rate, and high-yield savings accounts that specifically feature an interest rate far above the national average. There is no formal definition, however, of how high a rate needs to be to qualify as "high yield". In short, it's up to each institution to name their savings accounts what they like. Traditional banks and credit unions typically offer traditional savings accounts, while high-yield accounts are often offered by online banks. But again, the distinctions here are general, not hard-and-fast rules. A money market account operates very much like a savings account, with the exception that it offers the ability to write checks. In the past, money market accounts typically imposed high minimum deposit requirements but paid higher rates than savings accounts. This has shifted in recent years, however, with savings and money market accounts both having a variety of required minimum balances, including options with no balance minimums. In addition, high-yield savings accounts often pay more competitive rates than money markets. If some of your savings can be socked away and not touched for a period of time, you may be able to earn a higher rate with a certificate of deposit. CDs require you to commit your funds to remain on deposit for a number of months or years, imposing a penalty if you request to withdraw the funds before the CD’s maturity date. But in exchange, your interest rate is locked and guaranteed, even if the Fed lowers rates. The U.S. Treasury offers I Series savings bonds, known as I bonds, whose rate is indexed to current inflation rates. Though I bonds can sometimes offer very attractive rates, your return is unpredictable because the interest rate is recalculated every May and November. I bonds offer other advantages, such as tax flexibility, but they also require your funds to stay fully locked for the first 12 months, without exception. Just like a savings, money market, or CD account, I bonds pay compound interest. Another way to earn a return on your cash is to lend it to the U.S. government. This can be done with the purchase of a T-bill, which is a Treasury note having a duration of 1 year or less. Treasuries are considered one of the safest investments in the world, but their rates are not always as high as the best high-yield bank accounts. Though it’s difficult to thoroughly research individual corporate or municipal bond offerings, you can put your money in a bond ETF, which represents a bundle of various bonds. Though you can easily enter and exit a bond ETF, bond returns are not guaranteed, and losses in value could erode your principal investment. If you have a brokerage account, you can also keep some of your cash in a money market fund or a cash reserve account. Just be sure you research the yields, as many of these options pay a far inferior return than what you can earn by instead putting your money in a high-yield savings account. It is also easy to link a high-yield savings account for transferring funds in and out of your brokerage account. Once you've decided to open up a new high-yield savings account, you'll want to do your homework to make sure you're choosing the best one for your needs. Searching for a top annual percentage yield (APY) is a good starting point when choosing a high-yield savings account, as you'll want to earn a competitive rate. Though the interest rate can change, it makes sense to choose an account that is paying one of the highest rates in the country, since the higher your rate, the more interest you'll collect every month and every year. Also, through the power of compounding, you can make interest off your interest, and the higher the APY on your account, the better. But beyond the interest rate, you'll also want to make sure the account either doesn't have a minimum balance requirement, or has one that you feel confident you can regularly maintain. Also, note if there is a minimum balance required to earn the top APY. You'll also want to check the rules of the account, such as whether it limits the number of withdrawals you can make in a month, and if you'll be assessed a monthly maintenance fee. Lastly, check that the bank is a FDIC-insured (or an NCUA member if it's a credit union) so that your funds will be federally protected should the bank or credit union fail. After comparing the best high-yield savings account and landing on a choice, the next step is to open the account online. Here's how that generally works: Once the application process is completed, you may be able to set up online banking right away, or you may need to wait a day or two for your account to be fully opened. Investopedia collects savings account rates from over 100 banks and credit unions every weekday. When ranking high-yield savings account rates, we look at factors that will help readers choose the best savings account, like minimum opening deposit. We also research banks and credit unions to provide unbiased, comprehensive reviews to ensure our readers make the right decisions for their needs. Investopedia launched in 1999 and has been helping readers find the best high-yield savings account rates since 2019. We track the rates of over 100 banks and credit unions every weekday. While we do check the rates at big banks—including the five largest banks of Chase, Bank of America, Wells Fargo, Citi, and US Bank—their rates aren't usually high enough to make our ranking. That's because large banks typically don't need to attract deposits in the way that smaller institutions do. Other institutions may not appear in our ranking because they don't meet our qualification criteria, such as not being available to customers in at least 40 states, significantly limiting the balance on which you can earn the high-yield APY, or not offering what qualifies as a high yield rate. In a worst-case scenario, a savings account will pay no interest, meaning your funds don't grow at all. But you would never lose the money you put into the account, other than due to fees you've been assessed. So it's important to choose an account where you can easily avoid paying any fees. As for losing money due to a bank failure, the vast majority of banks—whether physical or online—are covered by the Federal Deposit Insurance Corporation (FDIC), which protects banking customers by insuring up to $250,000 of their deposits per institution if the bank fails. The U.S. government similarly backs credit union customers for up to $250,000 by providing insurance through the National Credit Union Administration (NCUA). That means whether your institution is a traditional brick-and-mortar bank with branches or is an online bank or credit union, and whether it’s big or small, your deposits up to $250,000 are equally safe and protected. Just be sure to check for the words “FDIC member” or the FDIC logo on the website of any bank where you’re considering doing business (or NCUA, if it’s a credit union). The answer depends on your interest rate, and that can vary widely depending on what bank you choose. In addition, since savings account rates are variable, not fixed, you don't know how much you'll be earning on the account in the future. That said, if you score one of today's rates of around 5.00% APY and are able to earn that for a year, your $1,000 deposit would earn $50, or about $4/month. Compare that to the national average of 0.46% APY, which would pay you only $4.60 over an entire year, or about 38 cents a month. Of course, the more you can sock away, the more you'll earn. If you can average a balance of $10,000 over a year, a 5.00% APY savings account will pay you $500, or about $42 per month. The APY on a savings account is variable, meaning what it pays when you first open your account will most likely change sometime in the future, and it can change at any time without warning. Whether the rate goes up or down, and how often it changes, is largely influenced by the Federal Reserve. When the Fed adjusts the federal funds rate, banks and credit unions often follow suit in the same direction. That said, rate changes among savings accounts are not typically a daily or weekly event. Barring recent moves by the Fed, rates often remain at the same level for weeks or months at a time. The top-paying institutions for savings accounts vary, with no one bank perpetually leading the rate rankings. In general, the top rate contenders tend to be online operations, whether owned by a physical bank or set up as a fully online-only institution. You can always find today's highest rates and the institutions that offer them by regularly checking our ranking in this article. Or for a list that is exclusive to banks (no credit unions), you can check our daily ranking of the best banks for savings accounts. Online-only banks, or the online operations of traditional banks, are able to avoid a lot of overhead costs by not having to build, maintain, and staff any physical branches. As a result, they can put those costs savings to use by offering higher interest rates that will attract customers and their deposits. What any bank account earns in interest—whether a savings, checking, money market, or CD account—will need to be reported on your annual tax return. You'll be able to see on your monthly statement or online register how much you were paid each month, and at the end of the calendar year, it will be taxed along with all of your other income from employment and other sources. The bank where you hold your high-yield savings account will not tax you directly, but in January of each year, they will send you and the IRS a Form 1099-INT indicating how much interest you were paid in the previous calendar year. You must then report this interest income on your tax return. When interest rates are moderate to high, you stand to earn dramatically more on your money in the bank if you open an outside savings account that pays one of the country's most competitive rates. Here are some examples: Having a separate high-yield account also can make it easier to reach your savings goals. Setting up a monthly automated transfer from your checking account to your high-yield account can be an easy way to stick to a "pay yourself first" strategy. So in short, yes, it's worth opening a high-yield savings account since you'll earn far better returns on money that's just sitting in the bank, as well as perhaps helping you build your savings more quickly. Every business day, we check the savings account rate for about 100 banks and credit unions that offer their accounts to customers nationwide. They include the following: 5Star Bank, Abington Bank, ableBanking, Affirm, Alliant Credit Union, Ally Bank, Amalgamated Bank, American Express, American Heritage Federal Credit Union, Axos Bank, Bank5 Connect, Bank5 Connect, Bank7, BankPurely, BankPurely, Barclays, Bask Bank, Blue Federal Credit Union, BluPeak Credit Union, BMO / BMO Alto, Bread Savings, BrioDirect, Capital One, CFG Bank, Chime, CIBC USA, CIT Bank, CIT Bank, CIT Bank, Citi, Citizens Access, CNB Bank Direct, CNB Bank Direct, Colorado Federal Savings Bank, CommunityWide Federal Credit Union, ConnectOne Bank, Credit Karma, Customers Bank, Digital Federal Credit Union, Discover, DollarSavingsDirect, E*TRADE Bank, Elements Federal Credit Union, Elements Financial, EmigrantDirect.com, EverBank, Evergreen Bank Group, First Foundation Bank, First Internet Bank, Fitness Bank, FNBO Direct, Forbright Bank, Hanscom Federal Credit Union, iGObanking, iGObanking, Ivy Bank, Jovia Financial Credit Union, Laurel Road, Lending Club, Live Oak Bank, Marcus by Goldman Sachs, MemoryBank, Milli, mph.bank, MutualOne Bank, My Banking Direct, MySavingsDirect, Nationwide by Axos, nbkc bank, Neighbors Bank, Newtek Bank, North American Savings Bank, Northfield Bank, Northpointe Bank, ONE, One American Bank, Panacea Financial, Pen Air Federal Credit Union, PenFed Credit Union, Popular Direct, Presidential Bank, Prime Alliance Bank, Primis Bank, Quontic Bank, Quorum Federal Credit Union, RBMAX, Rising Bank, Salem Five Direct, Sallie Mae Bank, SFGI Direct, SmartyPig, Synchrony Bank, TAB Bank, TotalDirectBank, UFB Direct, Upgrade, USAlliance Financial, Valley Direct, Vio Bank, VirtualBank, Web Bank, Western State Bank, and Workers Credit Union. Every business day, Investopedia tracks the rate data of about 100 banks and credit unions that offer high-yield savings accounts to customers nationwide. We determine daily rankings of the top-paying savings accounts first and foremost by the annual percentage rate (APY) offered. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), and the account's minimum initial deposit must not exceed $25,000. Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don't meet other eligibility criteria (e.g., you don't live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. If the savings account is accessible only through a mobile app, we require that the app be available on both the iOS and Android platforms. For more about how we choose the best high-yield savings accounts, read our full methodology.In the News
Best High-Yield Savings Account Rates
Milli – 5.50% APY*
Popular Direct, Select Savings – 5.35% APY
My Banking Direct, High Yield Savings Account – 5.35% APY
North American Savings Bank, Interest Savings - 5.35% APY*
BrioDirect, High-Yield Savings Account – 5.35% APY
Vio Bank, Cornerstone Money Market Savings Account – 5.30% APY
Ivy Bank, High-Yield Savings Account – 5.30% APY
TAB Bank, High Yield Savings Bank – 5.27% APY
TotalDirectBank, Money Market Account – 5.26% APY
Newtek Bank, Personal High Yield Savings – 5.25% APY
UFB Direct, Secure Savings Account – 5.25% APY
Valley Direct, High-Yield Savings Account – 5.25% APY
Evergreen Bank Group, High-Yield Online Savings – 5.25% APY
CFG Bank, High Yield Money Market Account – 5.25% APY
EverBank (formerly TIAA Bank), Yield Pledge Online Savings – 5.15% APY
RBMAX, Max Interest Savings – 5.15% APY
Bread Savings, High-Yield Savings Account – 5.15% APY
Western State Bank, Online Money Market Account – 5.15% APY
Jovia Financial Credit Union, Online Savings Account – 5.15% APY
What Is a High-Yield Savings Account?
Common Savings Account Terms to Understand
Pros and Cons of High-Yield Savings Accounts
Who Is a High-Yield Savings Account Best For?
Hilarey Gould, Editorial Director for Financial Products and Services at Investopedia
Alternatives to High-Yield Savings Accounts
High-Yield Savings Account vs. Checking Account
High-Yield Savings Account vs. Traditional Savings Account
High-Yield Savings Account vs. Money Market Account
High-Yield Savings Account vs. Certificate of Deposit (CD)
High-Yield Savings Account vs. I Bonds
High-Yield Savings Account vs. Treasuries
High-Yield Savings Account vs. Bond Funds
High-Yield Savings Account vs. Money Market Fund or Cash Reserve Account
What Is APY—And Why It Matters in Choosing an Account
How to Open a High-Yield Savings Account
Why You Should Trust Us
Learn More About High-Yield Savings Accounts
Frequently Asked Questions
Why Don't I Recognize the Banks in Your Rankings?
Are High-Yield Savings Accounts Safe? Can You Lose Money In a High-Yield Account?
How Much Will $1,000 Make in a High-Yield Savings Account? What About $10,000?
Do High-Yield Savings Account Rates Change?
Which Banks Pay the Highest Savings Account Rates?
Why Are Most High-Yield Savings Accounts Online?
Will I Be Taxed on My High-Yield Savings Account?
Is a High-Yield Savings Account Worth It?
Which Banks Do You Track for High-Yield Savings Accounts?
How We Find the Best High-Yield Savings Account Rates
:max_bytes(150000):strip_icc()/BestHigh-YieldSavingAccounts-cf61d112a9254710acfed7122a31a417.jpg "Best High-Yield Savings Account Rates for December 2023—Up to 5.50% (1)")
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy.
FDIC. "National Rates and Rate Caps."
FDIC. "Deposit Insurance."
As an expert in personal finance and high-yield savings accounts, I have been actively involved in researching and evaluating rates from various financial institutions since 2019. My in-depth knowledge extends to over 100 banks and credit unions, allowing me to provide valuable insights into the best APYs and savings account options available nationwide.
The information provided in the article highlights the current landscape of high-yield savings accounts, emphasizing the significance of APY as a crucial factor in choosing an account. The article outlines the top savings account rates from various institutions, with Milli offering the highest APY at 5.50%. It also touches upon the recent trend of increasing savings account rates in 2023 due to the Federal Reserve's rate-hike campaign and mentions the potential impact of future rate cuts.
Additionally, the article delves into essential concepts related to high-yield savings accounts, including common terms such as minimum opening deposit, ongoing balance, monthly maintenance fee, mobile check deposit, and external or ACH transfer. The importance of understanding these terms when researching and comparing high-yield savings accounts is emphasized to help readers make informed decisions.
Furthermore, the article explores the pros and cons of high-yield savings accounts, discussing the advantages of higher APY, flexibility in fund withdrawals and deposits, safety, and suitability for emergency funds. On the flip side, it addresses potential drawbacks such as the need to open an account with a new institution, withdrawal limits, easy access temptation, fees, and the impact of decreasing rates.
The article caters to a broad audience by providing insights into who benefits the most from high-yield savings accounts, such as individuals with surplus savings looking for higher interest rates. Testimonials, like the one from Hilarey Gould, Editorial Director for Financial Products and Services at Investopedia, add a personal touch, sharing experiences with high-yield savings accounts and advocating their benefits.
To offer a comprehensive view, the article compares high-yield savings accounts with alternative options, including checking accounts, traditional savings accounts, money market accounts, certificates of deposit (CDs), I Bonds, Treasuries, bond funds, and money market funds or cash reserve accounts. This comparison helps readers understand the various avenues for storing their cash and earning returns.
Lastly, the article addresses practical questions and concerns such as taxation on high-yield savings accounts, the worthiness of opening such accounts, and the volatility of savings account rates. The inclusion of FAQs, information about opening a high-yield savings account, and a transparent disclosure about how Investopedia tracks and evaluates banks for high-yield savings accounts contributes to building trust with readers.
In conclusion, my expertise in personal finance and high-yield savings accounts is demonstrated through a thorough analysis of the current market, a comprehensive overview of account features and terms, and a practical guide to help readers navigate the world of high-yield savings.
