Traditional savings accounts are not the ideal environment to help your money grow over time. According to the FDIC, the national average interest rate for savings accounts is just 0.35% as of February 21, 2023.

By comparison, high-yield savings accounts offer customers the chance to grow their savings at a considerably faster rate. Right now, the best high-yield savings accounts offer rates ranging from 3.70% to 5.02%.

Top High-Yield Savings Account Rates

  • UFB Direct Preferred Savings Account: 5.02% APY
  • CIT Bank Savings Connect Account: 4.20% APY
  • Citizens Access Online Savings Account: 4.25% APY
  • SoFi Checking and Savings: 1.20% - 4.00% APY
  • Synchrony High-Yield Savings Account: 4.00% APY
  • Quontic Bank High Yield Savings Account: 3.70% APY

To help you decide which high-yield savings account is best for your needs, take a closer look at each of our top picks:

UFB Direct Preferred Savings Account

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at UFB

  • Our Rating 5/5 How our ratings work Read the review
  • APY5.02% More Info

    UFB Direct breaks balances into five tiers, but, currently, there is only one interest rate.
  • Minimum
    Deposit Required    N/A
  • Intro Bonus N/A

The UFB Preferred Savings Account has one of the highest interest rates we’ve seen for a high-yield savings account at up to 5.02% APY. Plus, there are no monthly fees and no minimum balance to open.

Overview

With one of the strongest high-yield savings interest rates on the market, as well as no monthly fees or minimum opening deposit, UFB Direct’s Preferred Savings Account is an extremely attractive package.

Pros

  • Strong interest rate
  • No maintenance fees or minimum monthly balances
  • Free complimentary ATM card
  • Mobile app and SMS banking

Cons

  • No signup bonus
  • No associated checking account
  • Interest rate: Up to 5.02% APY
  • Compounding period: Daily
  • Fees: No monthly fees or minimum balance requirements
  • ATM access: Yes
  • Can you bank in person? Not really. While there is one branch in San Diego, California, UFB Direct is primarily an online bank.
  • Can you bank online? Yes

Why we like it: UFB Direct’s Preferred Savings Account offers one of the most competitive interest rates, even among high-yield savings accounts. The APY for this account is up to a whopping 5.02%. Plus, it offers all of the resources expected from online banks, included mobile tools, as well as some you wouldn’t expect, like a free ATM card.

About UFB Direct: A division of Axos Bank, UFB Direct is known for having some of the strongest rates in the business. Established in 2000, this FDIC-insured bank is headquartered in San Diego, California.

CIT Bank Savings Connect Account

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Member FDIC.

  • Our Rating 4.5/5 How our ratings work Read the review
  • APY4.20% More Info

    Annual Percentage Yield is accurate as of March 15, 2023. Interest rates for the Savings Connect account are variable and subject to change at any time without notice.

  • Minimum
    Deposit Required    $100
  • Intro Bonus N/A

CIT Bank’s Savings Connect account is one of our top picks for high-yield savings accounts. Featuring a competitive flat APY on all balances, it can go head-to-head with most of the top savings accounts available. What’s more, you don’t have to do anything special to earn this high interest rate; many similar accounts (including some offered by CIT) only offer their highest interest rates to customers who complete certain requirements.

Overview

With extremely competitive interest rates and a host of convenient features, the CIT Bank Savings Connect account can go head-to-head with nearly any other savings account in the U.S.

Pros

  • Competitive APY
  • No monthly service fee
  • Free electronic bank transfers to checking accounts (even if it isn’t a CIT checking account)

Cons

  • No fee-free ATM network
  • Minimum opening deposit required
  • Interest rate: 4.20% APY
  • Compounding period: Daily
  • Fees: No monthly services fees or minimum balance requirements (but $100 to open)
  • ATM access: Reimburse up to $30 in ATM fees per month
  • Can you bank in person? No, CIT does not have brick-and-mortar banks
  • Can you bank online? Yes

Why we like it: CIT provides some of the best APYs in the business, and currently, its Savings Connect account features its best offer. With virtually no fees and an easy to navigate application process, it’s easy to recommend this FDIC-insured savings account.

While you might also want to consider a CIT Savings Builder Account or CIT Money Market Account, if high APY is your main concern, Savings Connect is going to be your best bet.

About CIT Bank:

CIT is an online bank that specializes in online savings accounts, CDs and money market accounts. While it can be easily mistaken, CIT is not related to Citibank. CIT stands for Commercial Investment Trust, and was founded in 1908.

Citizens Access Online Savings Account

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at Citizens Access

If you plan to park your money for some time, the Citizens Access Online Savings Account is a good bet. This account features an incredible APY, and currently all balances earn the highest rate available. You only need to deposit $0.01 to open an account and earn the APY, and this account doesn’t have other fees associated with it.

Overview

Featuring an impressive APY on all balances, the Citizens Access Online Savings Account is one of our favorite high-yield savings options. This account only requires a deposit of $0.01 to open an account, and it doesn’t feature any monthly service fees. While it lacks a corresponding checking account, it’s a great place to store your funds if you don’t plan on touching them for a while, as you’ll enjoy one of the most competitive interest rates on the market.

Pros

  • Strong interest rate
  • No monthly service fee

Cons

  • No associated checking account
  • Interest rate: 4.25% APY
  • Compounding period: Daily
  • Fees: No monthly service fees; minimum opening balance requirement of $0.01
  • ATM access: None
  • Can you bank in person? No
  • Can you bank online? Yes, and through the mobile app. You’ll need to connect a checking account, use the app to deposit, or you will need to mail in a check to open the account. To get your money out, move it back to your external banking account via transfer.

Why we like it: If you plan to park your money for some time, Citizens Access is a good bet. On the other hand, if you’re looking for an associated checking account from the same institution, it may not be the right choice.

About Citizens Bank:

Citizens Bank is the 13th largest bank in the U.S., and Citizens Access is its online arm, which currently only offers two options for online banking: a savings account and a CD.

Citizens Access is FDIC insured and has been in business (online) since 2018. Citizens Bank has been around since 1828.

SoFi Checking and Savings

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at SoFi

  • Our Rating 5/5 How our ratings work Read the review
  • APY1.20% – 4.00% More Info

    Customers earn 4.00% APY on savings balances when they set up recurring monthly direct deposit of their paycheck or benefits provider via ACH deposit. Checking balances earn 1.20% APY.

  • Minimum
    Deposit Required    N/A
  • Intro Bonus $50-$250Expires December 31, 2023 More Info

    New customers can earn a $250 bonus for opening a new SoFi Checking and Savings account and receiving a total of $5,000+ in qualifying direct deposits within the specified evaluation period; receive $1,000 – $4,999 in qualifying direct deposits to earn a $50 bonus.

SoFi Checking and Savings boasts an impressive 4.00% APY on savings balances for customers who set up direct deposit (with no minimum deposit requirement). This account also offers 1.20% APY on checking balances. There are no monthly maintenance fees, and new customers can even earn a generous signup bonus worth up to $250. If you don’t care about physical bank locations, this is a great option.

Overview

SoFi Checking and Savings features remarkably strong interest rates for customers who receive recurring monthly direct deposit. This account also doesn’t have any maintenance fees, overdraft fees or non-sufficient funds fees. To top it off, new customers can earn a signup bonus worth up to $250.

Pros

  • Accounts with monthly direct deposit earn interest
  • No minimum opening balance or minimum monthly balance
  • No maintenance fees, non-sufficient fund fees or overdraft fees
  • Access to Allpoint’s worldwide ATM network
  • Get paid up to two days early

Cons

  • No physical branch locations
  • Interest rate: 1.20% - 4.00% APY
  • Compounding period: Monthly
  • Fees: None
  • ATM access: Access to 55,000 ATMs worldwide through the Allpoint Network
  • Can you bank in person? No, SoFi is an online-only bank
  • Can you bank online? Yes

Why we like it: So long as you’re not the type of person who needs to bank in person or who handles lots of cash transactions, you’ll likely find a lot to love about the SoFi Checking and Savings Account. Its APY is extremely competitive, and the company is known to regularly offer sign-up bonuses to new customers.

About SoFi: Although the company has been around for years, SoFi officially received approval for a national bank charter in 2022.

While the finance company already offered customers many services associated with traditional online banks, this move allowed SoFi to begin offering a straightforward checking and savings account with a remarkably healthy APY.

Synchrony High-Yield Savings Account

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Synchrony offers an above-average interest rate on its High-Yield Savings Account. And with no minimum balance or opening deposit requirements, its easier to hold this account than many similar options. We also appreciate the inclusion of an ATM card for easy funds access.

Overview

With the Synchrony High-Yield Savings Account, you’ll earn a healthy APY on your deposits. While it’s not the highest interest rate you can find right now, Synchrony doesn’t require any minimum opening balance, which makes it more accessible than some similar accounts. Synchrony also makes it easy to access your funds on the go. Account holders receive an ATM card for this savings account. Plus, you can access your money via ATM, online or phone.

Pros

  • ATM fee reimbursements
  • No minimum opening balance
  • No monthly service fee

Cons

  • No corresponding checking account
  • No physical branch locations
  • Interest rate: 4.00% APY
  • Compounding period: Daily
  • Fees: None
  • ATM access: Yes. Synchrony says that it doesn’t charge fees for ATM usage and will refund up to $5 per ATM fee that other banks charge. It uses the Accel Network of ATMs.
  • Can you bank in person? No, Synchrony is an online-only bank
  • Can you bank online? Yes

Why we like it: Synchrony makes it easy to access your funds on the go. For starters, accountholders receive an ATM card for this savings account, but remember, like all savings accounts, you can only have six transactions within a statement cycle. You can access your money via ATM, online or via phone. Synchrony also offers customers what they call “Perks” for keeping money in the account.

About Synchrony:

Synchrony is an online bank that offers online savings accounts, CDs, money markets and IRAs. Synchrony Financial also offers retail credit cards for companies like Walmart, JCPenney and Lowe’s. It used to be a part of GE and was spun off as a separate entity.

Synchrony is FDIC insured and has been in business for the last 90 years (under GE). All rates are subject to change at any time.

What Is a High-Yield Savings Account?

A high-yield savings account is a type of savings account that offers a much higher interest rate than a traditional savings account, resulting in a higher APY.

Typically, high-yield savings accounts are available through online banks, instead of financial institutions with brick-and-mortar locations. With less overhead than conventional banks, online banks usually offer extra perks to customers, like lower fees and higher interest rates on checking and savings accounts.

How Do High-Yield Savings Accounts Work?

In most ways, high-yield savings accounts function identically to traditional savings accounts. The main difference is that high-yield savings accounts tend to offer much higher interest rates, which helps your savings grow faster. The national deposit rate is usually around 0.30%, but you can find high-yield savings accounts that offer upward of 4.00% APY and higher.

The federal government repealed Regulation D in 2020, which limited the number of withdrawals and select bank transactions on savings accounts to six per monthly statement cycle. However, some banks have stuck with the six-transaction per statement limit as a matter of course. Usually, those banks charge a penalty fee if you exceed the monthly transaction limit.

How to Choose the Best High-Yield Savings Account

When looking for a new high-yield savings account, make sure it has the following key characteristics:

  • Interest rate: A strong interest rate can be the deciding factor when choosing which high-yield savings account to open. A higher interest rate will help grow your savings more quickly, which can be incredibly valuable.
  • Fees: The best high-yield savings accounts should either be fee-free or have achievable ways to regularly waive monthly fees. Fees can reduce your overall earnings, so they are nearly as important to consider as interest rate.
  • Access and liquidity: Ideally, you’ll want to be able to easily access your funds and make withdrawals without paying excessive fees. In lieu of physical locations, many online banks provide customers with access to fee-free ATMs.
  • Loss protection: The savings account you’re considering should be insured by the Federal Deposit Insurance Corp (FDIC), as this will protect you against loss in the event that the financial institution fails. It’s also important to consider the FDIC’s deposit insurance limit, which is currently $250,000 per depositor, per FDIC-insured bank.

Like any financial decision, you need to be sure that the account you choose is right for you.

How to Open a High-Yield Savings Account

Most banks allow you to open a high-yield savings account online. Usually, you’ll need to provide personal information, like your full name, address, phone number and Social Security number or driver’s license number, to verify your identity. You will also need bank account information for whatever source you’re using to fund your new account.

After your application has been approved, you’ll need to fund your account with enough money to meet its minimum deposit requirement. Depending on the bank, you may be able to do this by linking it to another bank account, depositing cash, mailing a check or via a wire transfer.

Are High-Yield Savings Accounts Safe?

Like traditional savings accounts, reliable high-yield savings accounts are FDIC insured up to $250,000 per depositor. High-yield savings accounts through credit unions will also be insured up to $250,000 per depositor, but are backed by the National Credit Union Administration (NCUA). You can verify that your account is safe through the FDIC BankFind tool.

High-Interest Savings Accounts vs. Money Market Accounts: What’s the Difference?

High-yield savings accounts and money market accounts are two types of savings products offered by financial institutions. In both cases, you’ll likely earn a higher interest rate than you would by keeping your money in a traditional savings account.  

Money market accounts typically offer some checking account features, such as a debit card and check-writing privileges. While not totally unheard of, high-yield savings accounts don’t usually include either of these features.

Methodology

Slickdeals Money’s editorial team reviews our list of the top high-yield savings accounts on a weekly basis. When choosing which accounts to feature, we consider factors such as APY, cost of holding an account (minimum deposit and balance requirements, fees) bonus offers and features (ATM access, customer service experience, user experience).

Our list of the best high-yield savings accounts is compiled by monitoring over 40 online banks, brick-and-mortar banks and credit unions, including:

Allient Credit Union, Ally Bank, American Express National Bank, Axos Bank, Bank of America, Bank of the West, Barclays, Bluevine, BMO Harris, Capital One, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens Bank, Discover Bank, Fifth Thirds Bank, FirstBank, First Tech Federal Credit Union, FNBO Direct, HSBC Bank, Huntington Bank, Keybank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Nationwide (by Axos), nbkc bank, PNC Bank, Radius Bank, Quontic Bank, Regions Bank, SoFi, Stanford Federal Credit Union, Synchrony Bank, TD Bank, UFB Direct and U.S. Bank.

Learn more about how our rating process works.

FAQs

While savings accounts have existed for quite some time, some people aren’t as familiar with online high-yield savings accounts. Here are some of the more common queries related to high-yield savings accounts:

  • Arguably the most important factor when considering high-yield savings accounts is the annual percentage yield (APY). A higher APY will maximize your deposits so you can reach savings goals. Some banks offered tiered interest rates based on your account balance, with the best rates reserved for higher balances.

    However, even if you get the best available APY on your high-yield savings account, that’s not the only factor to consider. Beyond interest rates, you should also look at what types of fees (if any) the bank charges, minimum deposit requirements, minimum balance requirements and withdrawal options. Always check the full account details before applying for a new high-yield savings account.

  • Most commonly, savings accounts will have some sort of monthly maintenance or service fee. Many banks charge a maintenance fee that helps cover bank operating costs. Maintenance fees are more common with traditional banks, but some online banks charge them too. However, some banks offer a way (or ways) to waive monthly fees, usually by meeting account deposit or balance requirements.

  • Until 2020, high-yield savings accounts were subject to Federal Reserve Board Regulation D, which limited savings accounts to six withdrawals or transfers per statement period. Transactions that fell under this regulation included:

    – Electronic funds transfers (EFTs)
    – Automated clearing house (ACH) transfers
    – Wire transfers
    – Third-party checks
    – Debit card transactions
    – Overdraft transfers

    While Regulation D was suspended at the start of the COVID-19 pandemic, some banks have continued to elect to enforce six-transaction limits on savings accounts, so make sure to read your terms and conditions clearly when looking at a new account. Some banks charge a fee or pursue other actions (up to account closure) if you repeatedly go over transactions limit during the statement period.

  • Every bank and financial institution is different, which means “high-yield” is a relative term that can encompass a wide range of APYs. However, the best high-yield savings accounts typically offer an APY that’s at least 12 times higher than national average.

    The other main factor to consider when calculating potential earnings is your typical account balance.

    Even if you open an account that offers 3.00% APY compounded daily, if you just place $1,000 into the account and make no further deposits, you’ll only earn about $30 in the first year the account is open. In contrast to this, someone who deposits $10,000 into that account will earn $300 in interest during the same 12-month period.

  • Yes. Like most deposit accounts, high-yield savings accounts feature variable interest rates that change over time. Rate changes for high-yield savings accounts typically mirror the federal funds rate set by the Federal Reserve. As the federal funds rate rises and falls, so do rates on high-yield savings accounts and other deposit accounts.

  • Online banks can often afford to offer higher interest rates because they don’t incur the same overhead costs as traditional banks. With no bank branches and typically fewer employees, online banks can pass savings along to their customers with fewer fees and higher rates on deposit accounts.

    However, keep in mind that can also mean online banks offer fewer customer service options than some large banks. You can’t just walk into a location and get help; you’ll need to stick with your digital bank’s set customer service hours and handle things over phone or messenger.

  • Many online banks use the latest encryption technology, as well as other other security measures, to ensure your funds and personal information are protected at all times when you are banking.