Best High-Yield Savings Accounts for June 2023 | Bankrate (2024)

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• Best high-yield savings accounts
• How to choose a high-yield savings account
• What to know about high-yield savings accounts
• Pros and cons of high-yield savings accounts
• How to open a high-yield savings account
• Alternatives to high-yield savings accounts
• High-yield savings account FAQs
• Research methodology

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Best online high-yield savings accounts for June 2023

Note: Annual percentage yields (APYs) shown are as of May 31, 2023. Bankrate's editorial team updates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.

What to know about high-yield savings accounts

What is a high-yield savings account?

High-yield savings accounts typically pay a much higher APY than traditional savings accounts, providing savers the ability to earn more on their money while still enjoying the security of a federally insured account. Traditional savings accounts are commonly offered at brick-and-mortar banks and larger banks. These accounts may yield close to nothing, often around 0.01 percent APY. High-yield savings accounts can earn hundreds of times more these days.

Most high-yield savings accounts have a variable APY, which means the yield is subject to change. Consumers looking for a guaranteed yield should consider a certificate of deposit (CD), and a no-penalty CD might be a good option for those who prefer both a fixed APY and access to their money without incurring a penalty.

How do high-yield savings accounts work?

High-yield savings accounts help you earn a higher yield than a typical savings account. The national average savings account APY is 0.25 percent. But that’s just the average. There are savings accounts earning even lower yields than that — some of which are offered by the large brick-and-mortar banks.

Once you put money in a high-yield savings account, it starts to earn interest. Then the interest, which is typically credited on a monthly or quarterly basis, begins to earn interest. That’s referred to as compound interest, and it’s how your money starts to really grow over time.

What to look for in a high-yield savings account

Below are a few important things to consider when searching for a high-yield savings account. When choosing which account is right for you, also take a look at Bankrate’s expert reviews of popular banks, many of which offer high-interest savings accounts.

Annual percentage yield (APY)

One of the most important considerations when choosing a high-yield savings account is the APY.

APY incorporates the effect of compounding. Simply stated, compound interest is the interest you earn on interest. You’ll earn interest on your initial deposit as well as on the interest that accumulates over time.

When it comes to APYs, higher is usually better, but it’s important to weigh the APY against any requirements to earn the yield, such as maintaining a minimum balance.

You can use Bankrate’s compound interest calculator to calculate your potential earnings on any savings account.

Minimum deposit required

Minimum deposit amount requirements vary by bank, with some banks requiring $0 to open an account while others require $10,000 or more. Decide how much you’re willing and able to deposit when comparing high-yield savings products. If you’re trying to hit a particular goal, consider how much you’re willing to save and over what period of time.

Accounts requiring a higher minimum deposit might not offer the best yields, so it pays to check such deposit requirements at all institutions you’re considering before opening an account. Online banks, for example, often require no minimum opening deposit and no minimum balance, and many don’t charge any monthly maintenance fees either.

Minimum balance required

Not only do some high-yield savings accounts require a minimum opening deposit, but they may also require a set minimum balance in order to earn the APY offered or to avoid fees.

What’s important to consider when weighing the minimum balance requirements of various high-interest savings accounts is how often you’ll need to withdraw funds and whether you’ll be able to maintain the required balance to earn the APY.

Monthly maintenance fees

The main fee to look out for when shopping around for a savings account is a monthly service fee. Some banks charge this fee if you go below a certain balance — or average daily balance — during a statement cycle.

How often do savings rates change?

Pros and cons of online high-yield savings accounts

Savings accounts are a good place to set aside funds for many financial goals. Here are the pros and cons of online high-yield savings accounts, so you can make sure one is right for you.

How to open a high-yield savings account

Whether it’s building an emergency fund or saving for a vacation or another big expense, a high-interest savings account can help you reach your goals. Plus, opening a high-yield savings account is relatively simple. Here’s how:

1. Shop around. High-yield savings accounts can be offered by online banks, traditional banks that operate branches, and credit unions. Online banks typically offer the highest rates because they don’t have the overhead associated with maintaining branches — so they may pass along the savings to customers, in the form of higher rates. Along with APY, compare the fees and services to find the right fit for your finances.
2. Fill out an application. Once you’ve chosen a high-interest savings account, you’ll need to fill out an application, whether online or in person. The bank or credit union will ask for personal information that often includes your driver’s license number, Social Security number, mailing address and date of birth. When applying online, you might need to scan a copy of a government-issued photo ID.
3. Fund your account. After the application is approved, it’s time to fund the account. This can be done online by linking a checking account to the new savings account and transferring funds. Depending on the bank, the new savings account can also be funded with cash, through a wire transfer or by mailing a check. Many banks also permit mobile deposits.

Be sure to deposit enough money to meet the account’s minimum deposit requirement. Otherwise you may be assessed a maintenance fee or earn a lower-than-expected interest rate until the minimum is met.

What to do if you are unable to open a high-yield savings account

If you’re unsuccessful in opening a new account, you can ask the bank why this happened. Depending on the answer, you might want to go to ChexSystems’ website and request a report to see whether your banking history is the reason you were denied the account.

ChexSystems is a national specialty consumer reporting agency that keeps track of some of your banking history. Things that can appear on a ChexSystems report include your check-cashing history, any suspected fraudulent activity and a list of closed accounts.

Alternatives to high-yield savings accounts

High-yield savings account vs. traditional savings account

High-yield savings accounts and traditional savings accounts share certain similarities, yet there are some key differences. High-yield accounts are frequently available online, while some traditional savings accounts — which include both passbook and statement savings accounts — might be restricted to opening and managing at a bank branch.

As the name suggests, high-yield savings accounts typically earn much higher rates than traditional savings accounts, and they may require a larger opening deposit and have minimum monthly balance requirements. Both accounts are subject to monthly fees, depending on the institution, but many banks offer high-yield and traditional savings accounts that charge no fees.

High-yield savings account vs. certificate of deposit (CD)

A high-yield savings account is a liquid account that’s meant for money you might need to withdraw at any time. Besides the flexibility of making withdrawals on demand (though they might be limited per statement cycle), you’re also able to add money to this account anytime.

Unlike savings accounts, CDs lock in your money for a set term, and if you withdraw your money before the term expires, you’ll usually incur an early-withdrawal penalty. What’s more, you typically can’t add money to a regular CD during its term.

High-yield savings account vs. money market account

Generally, a high-yield savings account doesn’t permit account holders to write checks against the account, while many money market accounts provide check-writing privileges.

Otherwise, money market and high-yield savings accounts are similar and typically available at FDIC-insured banks. Savings accounts are slightly more common than money market accounts, but many banks offer both.

High-yield savings account vs. checking account

A high-yield savings account is likely to pay a better yield than a checking account. Savings accounts might limit the number of withdrawals or transfers you can make per statement cycle.

Checking accounts are more for transactional purposes, such as paying bills or making debit card purchases. Checking accounts usually don’t have monthly transaction limits.

High-yield savings account FAQs

Research methodology

Bankrate’s editorial team regularly updates rates on this page about every two weeks. We mainly look for the highest APYs and break ties using the minimum balance to open a CD. Bankrate’s editorial team has reviewed nearly all of the banks and credit unions that they track. These institutions were selected because they offer competitive APYs, are larger (based on the amount of deposits or assets), frequently appear in internet searches or other possible factors. These banks and credit unions typically offer accounts that are available nationwide. All of these banks are insured by the Federal Deposit Insurance Corp. (FDIC) and all of the credit unions are National Credit Union Administration (NCUA) credit unions, insured by the National Credit Union Share Insurance Fund (NCUSIF).

Bankrate's experience on financial advice and reporting

Bankrate has more than four decades of experience in financial publishing, so you know you’re getting information you can trust. Bankrate was born in 1976 as “Bank Rate Monitor,” a print publisher for the banking industry and has been online since 1996. Hundreds of top publications rely on Bankrate. Outlets such as The Wall Street Journal, USA Today, The New York Times, CNBC and Bloomberg depend on Bankrate as the trusted source of financial rates and information.

Banks we monitor

These financial institutions are featured in our high yield savings account rate research: Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank 5 Connect, Bank of America, Bank of the West, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO Harris Bank, BrioDirect, Bread Financial (formerly Comenity Direct), Capital One Bank, Chase Bank, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank (Rhode Island), Credit One Bank, Comerica Bank, Customers Bank, Delta Community Credit Union, Discover Bank, Emigrant Direct, Fifth Third Bank, First Citizens Bank, First Internet Bank, First Technology Federal Credit Union, FNBO Direct, Golden 1 Credit Union, HSBC, Huntington National Bank, Investors Bank, Investors eAccess, KeyBank, LendingClub Bank, Limelight Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Morgan Stanley Private Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, PenFed Credit Union, PNC Bank, Popular Direct, PurePoint Financial, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, State Employees' Credit Union, Suncoast Credit Union, Synchrony Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank (California), U.S. Bank, USAA Bank, Vio Bank, VyStar Credit Union, Wells Fargo and Zions Bank.